For people living abroad, those who once worked in the United States, or anyone with foreign assets or companies, the IRS requires certain “international information forms.”
These are not tax forms but reporting forms, and many people don’t even know they exist.

Because the forms are complicated and unfamiliar, many taxpayers skip them accidentally.
You might think:

• “I didn’t know I had to file this!”

• “I found out years later that I should’ve filed a form…”

For people in this situation, the IRS created the
Delinquent International Information Returns Submission Procedures (DIIRSP).

This blog explains DIIRSP in simple, everyday language so people with no tax background can understand it easily.

1. What Is DIIRSP? (A Simple Explanation)

DIIRSP stands for Delinquent International Information Returns Submission Procedures.

In plain terms, it means:

“A way to file certain international forms late, without penalties, if the delay wasn’t intentional.”

These international information forms include documents required when you:

• Own shares in a foreign corporation

• Receive money or gifts from foreign individuals

• Have foreign assets such as bank accounts or investments

• Are involved with a foreign trust

• Own part of a foreign partnership

The most common forms affected are:

Important International Information Forms (with brief explanations)

1. Form 5471 — Reporting Foreign Corporations

Required if you are a U.S. person who owns or has control over a foreign corporation.
Contents include:

• Basic corporate information

• Balance sheets

• Income statements

• Shareholder information

• Transactions between you and the foreign corporation

Penalty for not filing Form 5471:

• $10,000 per form, per year

• If still not filed after IRS notice:

  • $10,000 per 30 days (maximum additional $50,000)

2. Form 5472 — Foreign-Owned Corporations / Foreign Transactions

Required when a corporation (including an LLC) has 25% or more foreign ownership, or a U.S. entity has certain transactions with a foreign related party.

Contents include:

• List of related foreign owners

• Details of any money exchanged with foreign parties

• Transactions such as loans, services, or purchases

Penalty for not filing Form 5472:

• $25,000 per form, per year

• Additional $25,000 if not corrected after IRS notice

3. Form 3520 / 3520-A — Foreign Gifts & Foreign Trusts

Form 3520 reports:

• Foreign gifts over certain thresholds

• Foreign inheritances

• Transfers to foreign trusts

Form 3520-A reports:

• Income and operations of a foreign trust

• Beneficiary information

Penalties:

• For foreign gifts: 5% of the gift per month, up to 25%

• For foreign trusts: Penalties can start at $10,000 and go much higher depending on the situation

4. Form 8938 — Foreign Financial Accounts & Assets

Reports:

• Foreign bank accounts

• Foreign stocks

• Foreign partnerships

• Foreign pensions

• Cryptocurrency (in some cases)

Penalty for not filing Form 8938:

• $10,000, increasing up to $50,000 with continued failure

2. Why Use DIIRSP? (Main Benefit)

The biggest advantage of DIIRSP is simple:

You may avoid the large penalties normally charged for late forms.

Since these forms carry heavy penalties—sometimes $10,000 to $25,000 per form per year (it varies) —the financial impact can be huge.
Under DIIRSP, you can file the forms late without penalties, as long as:

• Your failure was non-willful, AND

• You don’t owe additional tax from the missed reporting

DIIRSP is specifically for cases where:

You forgot or did not know the forms were required.

3. Who Can Use DIIRSP? (Eligibility)

Not everyone can use this procedure.
You can use DIIRSP if:

✔ You are NOT currently under IRS audit

If the IRS is already reviewing your case, DIIRSP cannot be used.

✔ The failure was non-willful

Meaning:

• You didn’t know about the requirement

• You misunderstood the rules

• You forgot unintentionally

  This non-willful concept does not equal to your reason that you did not know the rules. The tax concept today is wider and more objective. 

✔ Filing the forms will NOT change your tax calculation

DIIRSP is only for informational forms, not when your tax return itself was wrong.

If taxes were underpaid, another program is used, such as the Streamlined Filing Compliance Procedures.

4. What Is the DIIRSP Filing Process?

The process is generally straightforward:

Step 1: Prepare all missing forms

This may include multiple years of Form 5471, 5472, 3520, 8938, etc.

Step 2: Write a “Reasonable Cause” Statement

This is a letter explaining:

• Why you filed late

• How you discovered the requirement

• What you did to correct it

The IRS does not require fancy legal wording—just an honest explanation.

Step 3: Submit everything to the IRS

Once submitted, the IRS reviews it.
If they accept it, no penalties will be assessed.

5. When Should You Use DIIRSP?

DIIRSP is helpful for people who:

• Recently learned about Form 5471 or 8938

• Own foreign corporations without realizing reporting was required

• Received foreign gifts or inheritances

• Have foreign bank accounts

• Expatriates or immigrants to the U.S.

• People married to U.S. citizens

• Anyone with international financial connections

Many ordinary individuals qualify because the rules are extremely complex and easy to miss.

6. Summary: DIIRSP Helps When You File Late by Mistake

International reporting forms can be confusing and overwhelming.
Even experienced accountants sometimes misunderstand the rules.

The DIIRSP program helps people who:

• Filed late by accident

• Didn’t know they needed to report something

• Want to fix the issue before the IRS contacts them

It is one of the most important compliance programs for anyone with international ties. Please consult with a professional firm like CHI Border. 

Disclaimer

This blog is for general informational purposes only and does not provide legal, tax, or financial advice.
Every individual’s situation is unique, and tax outcomes vary.
For proper guidance, consult a qualified U.S. tax professional familiar with international taxation (such as a CPA or tax attorney).
This information should not be used as a substitute for personalized professional advice.