Foreign Entities

The Internal Revenue Service requires that affected American expatriates file certain Information Returns. The most common Returns are Forms 5471 relating to Foreign Corporations, 8865 to Foreign Partnerships, and TD F 90-22-1 to Foreign Financial Accounts. We have been preparing Form 5471 for clients since 1993 and Form 8865 since 2003.

Form 5471 - If you own more than 10% of the shares in a controlled foreign corporation, you are required to file this form annually. It must accompany your tax return. If your ownership of the total combined voting power of all classes of stock or total value of all shares exceeds 50%, you are deemed to have control over the corporation and will therefore have to include your share of subpart F income on your return. IRS will attribute ownership of shares to related parties. For instance, if you and a family member together own over 50%, then you will be considered to have control over the corporation. Failure to file this complex information return can incur a penalty of $10,000 per return. In some cases, criminal penalties may be sought. More on Foreign Corporation filing requirements ...

Form 8865 - Any US person who owns over 50% interest in a foreign partnership, acquires or disposes of 10% or more interest in the partnership, or owned a 10% or greater interest in a partnership must file this information return annually. The return must also accompany the filer's tax return. IRS can impose a $10,000 penalty for failure to provide the required information.

We prepare information returns for Foreign Corporations (Form 5471) and Foreign Partnerships (Form 8865). The process of assuring that these complex information returns are correctly prepared requires determining filing requirements (categories and schedules), Financial Statement compilation according to generally accepted accounting principles (GAAP) including analyzing or applying foreign investment accounts, currency conversions, shareholder loans, depreciation of assets, subpart F income, related party transactions, constructive ownership interests, and controlled foreign corporation or partnership rules. Foreign Partnership filing requirements ...

Form TD F 90-22.1 - The IRS wants to know about your investments or savings in foreign financial accounts. So annually, the Service requires that American expatriates file this Information Return for Foreign Financial Accounts. We can provide this vital service for you, assuring that the form is correctly filled in, and timely filed. A $25,000 penalty may be applied for failure to file this information return.

We also prepare the following international tax forms:

926 - Transfers to controlled foreign corporation
1118 - Foreign tax credit for corporations
1120-F - Tax return for foreign corporation doing business in United States
3520 - Transfers to foreign trust
3520A - Annual return of foreign trust
5471 - Information return of foreign corporation
5472 - Information return of foreign owned corporation
8621 - Information return for foreign passive investment company
8804 and 8805 - Foreign partners information statement
8832 - Entity classification election
8833 - Treaty based return position
8865 - Information return for foreign partnership