Fairness in Foreign Filing Act

Key Points

• This bill changes how the IRS collects fines from people who fail to report foreign bank accounts or gifts from overseas. Right now, the IRS can sometimes take this money without giving the person a chance to explain themselves first.
• If this bill passes, the IRS would be required to send a written notice at least 60 days before collecting a penalty. For Americans living in other countries, the IRS would have to give them 120 days of notice.
• The new rules would give taxpayers the right to an independent review of their case. The government would not be allowed to take any money until that review is completely finished.
• The IRS notice would have to clearly state the reason for the fine and which years it covers. This helps people understand exactly why they are being penalized so they can defend themselves.
• This plan is meant to protect people who make honest mistakes on complicated foreign tax forms. It ensures they get a fair warning and a chance to appeal before they are forced to pay large sums of money.

Impact Analysis

Govbase has not yet run an impact analysis on this legislation.