We're preparing the 2021 return for an individual tax client. He is a resident alien and we have prepared his returns since he came here in 2019.
During the course of our prep of this year's return, we learned that he has a corporation in Europe that he owns 100%. We are now obtaining the info to complete Form 5471 to send in with his 2021 return. Client has filed Forms 114 each year to report bank accounts.
I assume best practice will be to amend 2019 and 2020 returns to include 5471's. Btw, corporation was created in 2009.
For those who might have experience with this, what is best way to handle request for abatement of potentially significant late filing penalties for prior years?
Any insight is much appreciated.
Thanks much!
Paul Herman
Herman & Company CPA's, P.C.
13 Westfield Lane
White Plains, NY 10605
Phone (914) 400-0300, Ext 10