According to the IRS, U.S. Persons with property in a Fideicomiso have a Foreign Trust, and Foreign Trusts are required to File Form 3520 and Form 3520-A.  There is no tax calculated on theses forms.  The forms are only for disclosure purposes.  However, not properly filing Form 3520 has a penalty of up to 35% of the value of property transferred to or from the trust.  Not properly filing Form 3520-A has a penalty up to 5% of the value of your home! Good News! If you have not filed the required IRS Foreign Trust Forms, the IRS is providing amnesty.  You have an opportunity to become safe with the IRS regarding penalties and criminal investigation, if you file the required forms quickly. Recently, the IRS began targeting Unreported Offshore accounts and entities and issued an “Offshore Voluntary Disclosure Program” to increase compliance.  To enter this program, you must go through the IRS’s Criminal Investigation Department and your penalties may be limited to only 20% of the value of your foreign assets. However, the IRS issued FAQs regarding disclosure -- FAQ #42 is your Golden Ticket! This FAQ states that a taxpayer who did not file Form 3520, but reported and paid tax on all their taxable income should file the Forms by September 23, 2009 and the IRS will not impose a penalty for the failure to file the information returns. I can help those with a Fideicomiso be safe from the IRS.  To do this, I am focusing on the preparation of Forms 3520 and 3520-A, through September 23, 2009.  The IRS wants you to file forms for 6-years (2003 to 2008). For more information, please visit my blog at http://fideicomiso.wordpress.com as well as my website at www.dillingercpa.com.