Filing the Return of U.S. Persons with Respect to Certain Foreign Partnerships can be a complex process.

The requirement applies to a “U.S. Person” as defined by the IRS who qualifies under one or more of the four category filers which can be as low as a 10% interest in the foreign partnership.

There is a $10,000 up to a $100,000 penalty (depending upon the category filed and other factors) that can be imposed for failure to file on time information required to be reported for each foreign partnership, for each annual accounting period for which the failure exists.