You’re feeling anxious, maybe even a little panicked — because you know you missed something important. Whether it’s an unfiled FBAR, late FATCA Form 8938 disclosure, or another foreign asset information reporting requirement. An IRS audit concerns you and the penalties you are facing are real. You didn’t mean to get it wrong, but now you’re stuck with a mess— and you need someone who knows exactly how to guide you through.

Hughes Noff Tax Law, LLC, trusted international tax attorneys, is built for moments like this. We understand how overwhelming it feels to face mounting or potential penalties, missed deadlines, and complex IRS reporting requirements — especially when you never intended to do anything wrong. Regardless of whether or not you acted willfully or non-willfully, you still deserve a clear, strategic path forward. With over 25 years of combined experience and dual credentials as attorneys and CPAs, we focus exclusively on tax law and have helped clients worldwide resolve high-stakes issues like unfiled FBARs, FATCA violations, and foreign disclosure penalties. But what truly sets us apart is how we serve. We approach every client with empathy and provide the advocacy, direction, and resolution they deserve. Read our client reviews, and if you’re ready for real answers, call 410-694-7758 or contact us today.

On our initial call, we’ll give you a clear understanding of what’s at stake, the worst- to best-case scenarios, and how we can move forward from wherever you find yourself legally. We can help reduce your fear and stress, and give you real answers.

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The International Tax Issues We Handle for Our Clients

At Hughes Noff Tax Law, we represent individuals who are already facing potential legal or financial consequences for missed international tax filings. Our clients aren’t seeking routine compliance — they need legal help to correct past mistakes and reduce exposure. We assist individuals in situations such as:

You missed a required international tax filing, such as FBAR or FATCA Form 8938), Forms 3520, 3520-A, 5471, 5472, 8858, 8865 (and more), and need to correct the non-compliance with the IRS.
You failed to file altogether and are now facing penalties, warning letters, or enforcement action.
You filed one of the above information reports late and received notification of penalties and need help appealing or requesting an abatement.

If either of these applies to you, it’s not too late — but your next step matters. We can help you assess your risk, understand your options, and begin moving toward resolution.

Are You Out of Compliance With Your Foreign Information Reporting Obligations?

Problems generally do not go away on their own — and waiting may reduce the voluntary options to correct the non-compliance. If you missed a required tax return filing, or recently discovered you should have reported foreign accounts or assets, you are already out of compliance. The IRS takes these obligations seriously, and penalties can be significant.

We work with individuals who are now facing consequences because:

You missed a filing obligation, such as FBAR, FATCA, or another foreign information reporting requirement (such as Forms 3520, 3520-A, 5471, 5472, 8858, 8865).
You did failed to report income from foreign assets and now need help with coming into proper compliance, while limiting the damage.

What happens next depends on various factors, including why the mistake occurred — and whether the IRS sees your FBAR non-compliance conduct as willful or non-willful. That distinction will shape the legal path forward.

Understanding the Difference Between Non-Willful and Willful Violations

As it relates to FBAR violations, the IRS has two categories of violations — and the one you fall under has a major impact on how your case is handled. It’s not just about what you did or did not do, but why and how the non-compliance happened. Understanding the difference between non-willful and willful conduct is critical in determining your exposure and the legal options available.

Non-willful violations may occur when you didn’t file or report foreign financial accounts due to negligence, inadvertance, or a good faith misunderstanding of the law. These cases can often be resolved through specific IRS procedures designed for non-willful conduct, with reduced or no penalties.
Willful violations may involve a knowing or reckless disregard for the law. The definition has also been expanded in some circumstances to include “willful blindness”. The willfulness determination can often be complex for various reasons, including answering the Schedule B foreign account questions incorrectly, while signing the associated income tax return under penalties of perjury. These violations are treated far more seriously and can lead to substantial financial penalties and, in some cases, criminal liability.

Accurately determining which category applies to your situation is essential — and it’s not always straightforward. At Hughes Noff Tax Law, we help clients understand and evaluate their position and pursue the right strategy to protect their rights and resolve the non-compliance.

International Tax Penalties

Failing to comply with international tax reporting requirements can lead to significant penalties imposed by the IRS. These penalties vary depending on the specific form and the nature of the non-compliance. Below is an overview of potential penalties associated with common international tax forms:

FBAR Penalties (FinCEN Form 114)

U.S. persons with foreign financial accounts exceeding an aggregate value of $10,000 at any time during the calendar year are required to file an FBAR.

Non-Willful Violation: Up to $10,000 per violation. However, no penalty may be imposed if the violation was due to reasonable cause and the account holder reported all income from the account. Learn more about FBAR penalties
Willful Violation: The greater of $100,000 or 50% of the account balance at the time of the violation. Criminal penalties may also apply. Details on FBAR penalties

Note – the penalties above are further indexed for inflation. The figures provided are the non-inflation adjusted penalties.

FATCA Penalties (Form 8938)

U.S. taxpayers with specified foreign financial assets over certain thresholds must file Form 8938.

Failure to File: $10,000 initial penalty.
Continued Failure: Additional $10,000 for each 30-day period of non-filing after IRS notification, up to a maximum of $50,000.
Understatement Penalty: 40% penalty on any understatement of tax attributable to non-disclosed assets. FATCA information for individuals

Form 3520 Penalties (Annual Return To Report Transactions With Foreign Trusts and Receipt of Certain Foreign Gifts)

Failure to Report Transfers to a Foreign Trust: Penalty of the greater of $10,000 or 35% of the gross value of the property transferred. Instructions for Form 3520
Failure to Report Distributions from a Foreign Trust: Penalty of the greater of $10,000 or 35% of the gross value of the distributions received. Instructions for Form 3520
Failure to Report Receipt of Certain Foreign Gifts: Penalty of 5% of the gift for each month the failure continues, up to a maximum of 25% of the gift. Gifts from foreign person

Form 5471 Penalties (Information Return of U.S. Persons With Respect to Certain Foreign Corporations)

Failure to File: $10,000 per year for each foreign corporation.
Continued Failure: Additional $10,000 for each 30-day period of non-filing after IRS notification, up to a maximum of $50,000. Instructions for Form 5471

Form 5472 Penalties (Information Return of a 25% Foreign-Owned U.S. Corporation)

Failure to File or Maintain Records: $25,000 per violation.
Continued Failure: Additional $25,000 for each 30-day period of non-filing after IRS notification, with no maximum penalty. Instructions for Form 5472

Form 926 Penalties (Return by a U.S. Transferor of Property to a Foreign Corporation)

Failure to File: 10% of the fair market value of the property transferred, up to a maximum of $100,000 unless the failure was due to intentional disregard, in which case the penalty may exceed $100,000. Form 926 Filing Requirement

How Can an International Tax Attorney Help

International tax issues with the IRS generally don’t resolve themselves — and making an uninformed decision out of fear could make your situation worse. At this stage, the focus is about protecting yourself from potential penalties, long-term financial damage, and, in some cases, criminal exposure. The objective is to bring closure to a very stressful circumstance, with the least amount of harm possible.

An experienced international tax attorney can help by:

Evaluating the facts of your case to determine the nature and extent of the foreign information reporting compliance failures
Advising you on the most appropriate resolution path, including whether you qualify for streamlined filing proceduresor the voluntary disclosure practice
Preparing and submitting the required legal and financial documents with accuracy and strategic care
Communicating directly with the IRS on your behalf, reducing your emotional burden
Pursuing every opportunity to minimize penalties, and resolve your case efficiently

At Hughes Noff Tax Law, this is our exclusive focus. With over 25 years of combined experience as both attorneys and CPAs, we’ve helped individuals in high-risk, high-penalty situations move toward far more favorable outcomes. If you’re ready to take the next step, contact us today or call 410-694-7758 to schedule a confidential consultation.

Available Remediation Procedures for Offshore Non-Compliance

There are several IRS programs and procedures designed to help taxpayers correct past foreign reporting violations. Each option has its own eligibility criteria, and the right choice depends on your specific situation — including the nature of the mistake, your intent, and whether the IRS has already contacted you, among other considerations.

Streamlined Filing Compliance Procedures (SFCP)

A general IRS program for eligible taxpayers with non-willful violations. Requires certification under penalty of perjury and full compliance moving forward. The following two procedures are subset of the SFCP.

Streamlined Domestic Offshore Procedures (SDOP)

For certain U.S. residents who failed to report foreign assets due to non-willful conduct. Includes a 5% offshore penalty on the highest year-end account balance during the disclosure period. See our SDOP page for more details.

Streamlined Foreign Offshore Procedures (SFOP)

For certain non-U.S. residents with non-willful violations. Offers the same streamlined process without the 5% penalty, if eligibility is met. See our SFOP page for more details.

Delinquent FBAR Submission Procedures (DFSP)

If you failed to file FBARs but reported all related income and have reasonable cause, this option may allow for penalty-free resolution.

Delinquent International Information Return Submission Procedures (DIIRSP)

Covers late filings of forms such as 3520, 5471, or 8938. If there’s reasonable cause and no prior IRS contact, penalties may be avoided — though this option carries some risk and should be evaluated carefully.

IRS Voluntary Disclosure Procedures (VDP)

For taxpayers whose conduct may have been willful. Offers a formal route to resolve serious violations while avoiding criminal prosecution. It includes higher penalties and detailed disclosure requirements. Learn more about VDP here.

Quiet Disclosure

Filing amended returns outside of an official IRS program or procedure. This is generally not recommended — however this approach should be carefully evaluated.

How Do I Know Which Procedure I’m Eligible For

The right procedure depends on your specific facts and circumstances, including whether your conduct was willful or non-willful, whether the IRS has contacted you, and whether you’re committed to coming into full compliance. A qualified international tax attorney can help you make that determination confidently.

IMPORTANT: Choosing the right disclosure option isn’t something you should guess or select out of fear upon learning of the error — making the wrong decision can result in significant penalties and could close the door on available remediation options. Avoiding action altogether may result in penalties, enforcement action, or even criminal investigation.. Each procedure has specific eligibility rules, and evaluating the options strategically results in a better outcome.

At Hughes Noff Tax Law, we begin by helping you answer three critical questions:

What is the scope of your international information reporting non-compliance?
This is an important factor, as each information report carries it’s own consequences for failure to file. We’ll carefully evaluate your records to help make that legal determination.
What are the penalties you are facing for failure to file these IRS information reports?
The penalties for failure to comply with IRS foreign information reports can be daunting and overwhelm taxpayers who recently discover their non-compliance. Making sense of the potential penalties is a critical component and consideration as it relates to selecting a compliance procedure to remediate the compliance failures.
Which option to come into compliance fits your circumstances? Once we evaluate your facts and circumstances, and educate you regarding your compliance obligations and potential penalties, we will discuss the various options to come into compliance. Once the IRS reaches out, some procedures may no longer be available. Time matters — and fast, informed action is critical.

This is not a one-size-fits-all process — and trying to handle it alone can be risky and costly. We help clients around the world make smart, timely decisions backed by experience, strategy, and compassion. If you’re unsure where you stand, contact us or call 410-694-7758 to get answers and a plan you can trust.

The Value You’ll Get When You Call Us

We believe every client deserves clarity — not confusion. When you reach out to Hughes Noff Tax Law, our goal is simple: help you make an informed, confident decision. On your first call, we’ll walk you through:

What forms you should have filed — and whether you’re currently out of compliance
What your penalty exposure looks like — including best-case and worst-case scenarios
What remediation options are available — and whether your potential penalties can be reduced or avoided altogether

We provide experienced guidance and honest answers, so you can move forward with confidence and peace of mind.

Let’s Talk About Your Options

If you’re facing complex reporting issues, mounting potential or actual penalties, or enforcement action, an experienced international tax attorney can help you take control of the situation. You don’t have to carry the stress or uncertainty alone. We’re here to help you understand what’s at stake, what your options are, and how to move forward.

We approach every client with empathy and provide the advocacy, direction, service, and resolution they deserve. With over 25 years of experience resolving complex tax controversies, we understand the unique and sensitive nature of these matters. As both attorneys and CPAs, we understand the law and the numbers. Our clients appreciate the clarity and peace of mind we help restore — read their stories here.

Contact us today or call 410-694-7758 to schedule your consultation with an experienced international tax attorney. You deserve answers — and a way forward.

Common Questions About International Tax Attorneys and Foreign Reporting Issues

Below are some of the most frequently asked questions we hear from clients facing international tax issues. Whether you’ve missed a foreign filing requirement or are unsure of your reporting obligations, these answers can help clarify what’s at stake — and what steps may be available.

What is an FBAR and who must file it?

Any U.S. person with a financial interest in or signature authority over foreign financial accounts that exceed $10,000 in total at any point during the year must file an FBAR (FinCEN Form 114). This includes bank accounts, brokerage accounts, and certain types of foreign life insurance.

Is foreign life insurance considered a foreign account for FBAR reporting purposes?

Yes, in many cases, foreign life insurance policies with cash value — such as whole-life policies — may need to be reported on an FBAR. Each policy must be evaluated individually to determine whether it qualifies as a reportable financial account.

Can I be penalized for failure to file an FBAR?

Yes, the IRS may impose significant penalties for failure to file an FBAR, depending on whether the conduct was willful or non-willful. Non-willful violations can carry penalties up to $10,000 per violation, while willful violations may result in penalties equal to the greater of $100,000 or 50% of the account balance.

Can the IRS penalize me for late filing an IRS Form 3520 for foreign gifts or inheritance?

Yes, the IRS can assess a penalty of 5% per month, up to a maximum of 25% of the gift or inheritance. The penalty is calculated based on the value of the gift and can be financially devastating. You should speak with an international tax attorney before filing a late Form 3520.

What are my options if I failed to file a timely FBAR?

The IRS provides multiple procedures for addressing unfiled FBARs, each based on your specific facts and circumstances. Options include the Streamlined Domestic Offshore Procedure, Streamlined Foreign Offshore Procedure, Delinquent FBAR Submission Procedure, the IRS Voluntary Disclosure Practice, and other tailored solutions.

What are my options if I failed to file a Form 8938?

Form 8938 non-compliancemay be remediated using similar procedures depending on your circumstances. These include the Streamlined Filing Compliance Procedures, Delinquent International Information Return Submission Procedures, or in some cases, the Voluntary Disclosure Practice.

What are my options if I failed to file a Form 3520?

Late filing of Form 3520 may be resolved through the Delinquent International Information Return Submission Procedures or, depending on the facts, through a streamlined or voluntary disclosure route. Each carries different risks and benefits, and eligibility depends on your specific situation.

What are my options if I failed to file a Form 5471, 5472, or 3520-A?

The appropriate resolution method will vary based on your specific facts and circumstances. You may be eligible for Streamlined Filing Compliance Procedures, Delinquent Information Return Submission Procedures, or may require utilizing the Voluntary Disclosure Practice.

How do I know which resolution option is right for me?

The best option depends on whether your conduct was willful or non-willful, whether the IRS has already contacted you, and your specific facts and circumstances. A qualified international tax attorney can assess your risk and guide you toward the most strategic resolution.

Will the IRS treat my mistake as willful if I didn’t know the rules?

Not necessarily — but it depends on your specific facts and circumstances. Non-compliance can be interpreted as willful if you ignored warnings, failed to ask questions, or didn’t follow through after learning of the requirements.

Is it too late to fix this?

No — but waiting longer may only increase your risk. As long as coming forward is still considered voluntary, you may still qualify for reduced-penalty options or even avoid penalties altogether. The sooner you act, the more options you’ll have.

Do I need to file both an FBAR and Form 8938?

Yes, in many cases, both forms are required — even if they report overlapping accounts. The FBAR is filed with FinCEN, while Form 8938 is filed with your tax return. They have different filing thresholds. Failing to file either can trigger separate penalties.

Can I fix this myself without an international tax lawyer?

We would not recommend it. The wrong filing strategy may result in missed opportunities to come into compliance with limited, or no, penalties

What’s the difference between a CPA and an international tax attorney?

CPAs generally assist with tax return preparation and communications are generally not privileged. An attorney provides attorney-client privilege as we work through your facts and circumstances to determine the best course of action to remediate your non-compliance. At Hughes Noff Tax Law, we are both attorneys and CPAs, with deep experience in international tax controversies.

What if the IRS already contacted me?

If the IRS has already initiated contact, some options may no longer be available — but you still have rights. In this situation, legal representation can be critical and may help reduce penalties while protecting you from further exposure.