I have a foreign life insurance policy. I filed a Form 8621 for reporting a PFIC but I did not file form 720 for the tax year 2019. I pay an annual premium of $1300. When I filed form 8621 last year for PFIC, it went fine and smoothly without any issues. My CPA also paid all the necessary taxes associated with the premiums, which is 1% of the premiums
However I am now concerned what will be the penalties for not filing form 720? Can there be criminal penalties? Will I go to jail for this? Has there been situations where IRS has caught this and contacted tax filers?
Also, should I file it for the Year 2020? Won't IRS then catch my previous mistake? I was very confused about Form 720 since it requires you to file for an EIN? I am not a business owner. I am only a simple salaried professional who doesn't even earn 6 figures.
Can someone please advise on what should I do?
