U.S. Income Tax Compliance

Form 8865
• Penalties – Category 1 and 2
– Any person who fails to furnish all of the
information required within the time
prescribed will be subject to a reduction of
10% of the foreign taxes available for credit.
• If the failure continues 90 days or more after the
IRS has mailed a notice of the failure to the U.S.
person, an additional 5% reduction is made for
each 30-day period, or fraction thereof, during
which the failure continues after the 90 day period
has expired.