Quick answer: If you missed delinquent international information returns such as Forms 5471, 3520, 3520-A, 8865, or 8938, you can usually file them late with a reasonable cause statement. If you also failed to report foreign income, a different program is generally the better fit.

The penalties start at $10,000 per form, so the order and wording of your filing matter. Call (415) 968-1780 for a paid, privileged consultation.

Many taxpayers learn about international information returns only after they have missed several years of them. The forms report foreign companies, trusts, gifts, and assets, and the penalties for missing them can exceed any tax that was ever owed.

This guide explains how to fix delinquent international information returns, when the IRS’s delinquent submission procedures apply, and how to build the reasonable cause case that keeps penalties off.

What counts as an international information return

These forms report foreign holdings and transactions rather than income. The most common are:

• Form 5471 for interests in certain foreign corporations.
• Form 3520 for foreign gifts, inheritances, and transactions with foreign trusts.
• Form 3520-A for foreign trusts with a U.S. owner.
• Form 8865 for interests in certain foreign partnerships.
• Form 5472 for certain foreign-owned U.S. companies.
• Form 8938 for specified foreign financial assets above the reporting thresholds.
• Form 926 for certain transfers of property to foreign corporations.

The FBAR is filed with FinCEN, not the IRS, and follows its own rules. See our guide to FBAR filing requirements.

Why delinquent international information returns are so costly

Most of these penalties apply even when no tax is due. For example:

• Forms 5471, 8865, and 8938: generally $10,000 per form per year, plus continuation penalties of up to $50,000 if the failure continues after IRS notice.
• Form 3520: for unreported foreign gifts or inheritances, up to 25% of the amount received; for trust transactions, the greater of $10,000 or 35% of the amount involved.
• Form 3520-A: the greater of $10,000 or 5% of the trust assets treated as owned by the U.S. person.

Missing an information return can also keep the statute of limitations open for the entire tax return. That means the IRS may be able to audit far older years than usual.

The Delinquent International Information Return Submission Procedures

The IRS’s Delinquent International Information Return Submission Procedures (DIIRSP) are the standard path for late information returns. As of this writing, the IRS still lists them as available.

They generally fit if all of the following are true:

• You are not under IRS civil examination or criminal investigation.
• The IRS has not already contacted you about the missing returns.
• Your problem is limited to the missing forms, not unreported income or unpaid tax.
• You have reasonable cause for the late filing.

In practice, you file each missing form with a reasonable cause statement. Forms 3520 and 3520-A are filed as their instructions direct; most other forms are attached to an amended return for the year they belong to.

No automatic penalty relief

Before a 2020 update, many practitioners treated these procedures as a near-guarantee of no penalty. That is no longer the case.

The IRS reviews the reasonable cause statement and can assess penalties if it disagrees. Some penalties, especially on late Forms 3520, are often assessed automatically when the form is processed and must then be contested.

The IRS also ended its separate Delinquent FBAR Submission Procedures in July 2026. Late FBARs are now generally filed with a reasonable cause explanation as well. See our Delinquent FBAR Procedures page.

Writing a reasonable cause statement that holds up

Reasonable cause means you exercised ordinary business care and prudence and still failed to file. Not knowing about the form can be part of the story, but on its own it is rarely enough.

A strong statement usually covers:

1. The facts: what the foreign asset or entity is and how you came to hold it.
2. Why the form was missed: for example, reliance on a preparer who was told about the foreign interest.
3. When and how you found out, and how quickly you acted.
4. What you have done to come into compliance, including every missing year.
5. Why the facts do not suggest concealment, such as reported income or open accounts.

Each form and year generally needs its own statement, signed under penalty of perjury. Inconsistent or boilerplate statements tend to fail.

When a different program fits better

The delinquent procedures are for paperwork problems only. If foreign income also went unreported, other paths apply:

• Streamlined Filing Compliance Procedures for non-willful taxpayers with unreported foreign income. See streamlined filing compliance procedures.
• IRS Voluntary Disclosure Practice where conduct may have been willful. See streamlined vs. voluntary disclosure.

Choosing the wrong path can cost more than it saves. Filing late forms alone while unreported income remains can draw attention without fixing the larger problem.

What if the IRS has already assessed a penalty?

A penalty notice is not the end of the process. Common responses include:

• A reasonable cause request or written protest explaining why the penalty should be removed.
• An appeal to the IRS Independent Office of Appeals.
• Procedural defenses, such as whether the IRS obtained required supervisory approval.

Whether the IRS can assess certain information return penalties directly, rather than suing to collect them, has been litigated. The D.C. Circuit sided with the IRS in 2024, but the question has been handled differently elsewhere, so your circuit can matter.

Foreign gifts and inheritances

Late reporting of a foreign gift or inheritance on Form 3520 is one of the most common situations we see. We cover it in detail in Form 3520 penalty: missed reporting a foreign gift or inheritance.

Talk to a tax attorney about delinquent international information returns

Our Delinquent Foreign Information Procedures practice prepares late filings, reasonable cause statements, and penalty challenges. For the full range of offshore issues, see our offshore and international tax attorney page.

Frequently asked questions

What are delinquent international information returns?

They are required foreign reporting forms, such as Forms 5471, 3520, 3520-A, 8865, 5472, 8938, and 926, that were not filed on time. They report foreign holdings and transactions rather than income, and penalties can apply even when no tax is owed.

Are the Delinquent International Information Return Submission Procedures still available?

As of this writing, the IRS still lists them as available. They generally apply only if you are not under examination or investigation, have not been contacted about the missing forms, and have no unreported income to correct.

Will I owe a penalty if I file late with a reasonable cause statement?

Not necessarily, but relief is not automatic. The IRS reviews each statement, and some penalties, especially for Form 3520, are often assessed when the form is processed and must then be challenged.

What is the penalty for a late Form 5471?

Generally $10,000 per form per year, with continuation penalties of up to $50,000 more if the failure continues after IRS notice. A missing Form 5471 can also keep the statute of limitations open for the related tax return.

What if I also have unreported foreign income?

Then the delinquent submission procedures are usually the wrong path. The Streamlined Filing Compliance Procedures or the IRS Voluntary Disclosure Practice generally fit better, depending on whether your conduct was non-willful.

Can a reasonable cause statement be used against me?

It is signed under penalty of perjury and becomes part of your IRS file. That is why the facts should be reviewed with an attorney, under privilege, before it is submitted.

About the author

Alex Kugelman is the founder and managing attorney of Kugelman Law and a former judicial law clerk at the U.S. Tax Court. He has nearly two decades of federal tax controversy experience and is admitted in California and before the U.S. Supreme Court, the U.S. Tax Court, and the U.S. District Courts for the Northern and Eastern Districts of California.

Alex was quoted in the Financial Times and the New York Post in July 2026 on California’s proposed billionaire tax and the state’s residency audits of departed wealthy residents. For offshore examinations, he works alongside Otto Bosch, a former IRS Revenue Agent in the LB&I Division, which handles international examinations.

This article is attorney advertising and general information, not legal advice. Offshore compliance is fact-specific, and IRS procedures and penalty rules can change. Contacting Kugelman Law does not create an attorney-client relationship.