EA Part 1 Section 5-6 Questions With Complete Solutions
can set up from Jan 1st to October 1
SIMPLE IRA
employer and employee can contribute
defined contribution qualified retirement plan
contributions are not optional
defined benefit plan
Form 8606
Used to report nondeductible IRA contributions.
1099-R box 7
checked to specify IRA distribution
to find taxable social security
1/2 of Social security + all income + tax exempt income
can rollover inherited IRA to own IRA
only spousal beneficiary
IRA cannot invest in
S-corp stock, collectibles life insurance contacts
If covered by employer retirement plan
all IRA contribution is non-deductible
Form 114 (FBAR)
,Reports foreign bank and financial accounts
Form 8938
Statement of Specified Foreign Financial Assets.
May have to file if you have any financial interest in or signature
authority over a financial account located in a foreign country.
Form 3520
A tax form for a U.S. person to report certain transactions with
foreign trusts, ownership of foreign trusts, and receipts of certain
large gifts or bequests from certain foreign persons.
Form 3520
Annual Return to Report Transactions with Foreign Trusts and
Receipt of Certain Foreign Gifts.
Form 5471
Information return for U.S. persons with foreign corporations.
Form 8865
Return of U.S. Persons With Respect to Certain Foreign
Partnerships
Does not file to IRS, files with Financial Crimes Enforcement
Network (FinCEN)
Form 114 (FBAR)
Must file FBAR
at least 1 financial account outside U.S., value of all foreign
accounts exceed$10,000 at some point in year
, must report greatest value during year
FBAR
FBAR Due Date
April 15 following year $10,000 threshold was met
automatic extension to October 15
Both do not need to file FBAR
they file Form 114a
Nonwillful failure to file penalty FBAR
$16,117 per FBAR report or 50% of unreported account balance
max
willful failure to file penalty FBAR
$161,166 or 50% of unreported account balance max per year up
to 6 years, whichever higher
criminal penalty for willful failure to file FBAR
up to $250,000 and 5 years of prison
criminal willfully file false FBAR
up to $10,000 and 5 years prison
Gifts or Bequests
Form 3520
If received large gift/bequest from foreign persons
must file form 3520
can set up from Jan 1st to October 1
SIMPLE IRA
employer and employee can contribute
defined contribution qualified retirement plan
contributions are not optional
defined benefit plan
Form 8606
Used to report nondeductible IRA contributions.
1099-R box 7
checked to specify IRA distribution
to find taxable social security
1/2 of Social security + all income + tax exempt income
can rollover inherited IRA to own IRA
only spousal beneficiary
IRA cannot invest in
S-corp stock, collectibles life insurance contacts
If covered by employer retirement plan
all IRA contribution is non-deductible
Form 114 (FBAR)
,Reports foreign bank and financial accounts
Form 8938
Statement of Specified Foreign Financial Assets.
May have to file if you have any financial interest in or signature
authority over a financial account located in a foreign country.
Form 3520
A tax form for a U.S. person to report certain transactions with
foreign trusts, ownership of foreign trusts, and receipts of certain
large gifts or bequests from certain foreign persons.
Form 3520
Annual Return to Report Transactions with Foreign Trusts and
Receipt of Certain Foreign Gifts.
Form 5471
Information return for U.S. persons with foreign corporations.
Form 8865
Return of U.S. Persons With Respect to Certain Foreign
Partnerships
Does not file to IRS, files with Financial Crimes Enforcement
Network (FinCEN)
Form 114 (FBAR)
Must file FBAR
at least 1 financial account outside U.S., value of all foreign
accounts exceed$10,000 at some point in year
, must report greatest value during year
FBAR
FBAR Due Date
April 15 following year $10,000 threshold was met
automatic extension to October 15
Both do not need to file FBAR
they file Form 114a
Nonwillful failure to file penalty FBAR
$16,117 per FBAR report or 50% of unreported account balance
max
willful failure to file penalty FBAR
$161,166 or 50% of unreported account balance max per year up
to 6 years, whichever higher
criminal penalty for willful failure to file FBAR
up to $250,000 and 5 years of prison
criminal willfully file false FBAR
up to $10,000 and 5 years prison
Gifts or Bequests
Form 3520
If received large gift/bequest from foreign persons
must file form 3520
