S. 5173 — Fairness in Foreign Filing Act

This section expands penalties treated as taxes under section 6671 to all penalties provided by title 26, except those for which civil or criminal actions serve as the collection method. It requires written notice at least 60 days (120 days for taxpayers outside the United States) before assessing covered penalties under sections 6038(b)(1), 6038A(d)(1), 6038B(c), 6038C(c), 6038D(d)(1), 6039F(c)(1)(B), or 6677, and grants taxpayers a right to review by the IRS Independent Office of Appeals with suspension of assessment and collection during the review period. It preserves taxpayer rights to refund litigation.

This section repeals due date requirements for certain information returns relating to foreign trusts. The repeal applies to returns for taxable years beginning after December 31, 2026.