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Assistance With Foreign Company Tax Filing Requirements

US Global tax is proud to offer helpful services to assist US taxpayers with stakes in New Zealand and Australian companies and trusts. If you’re a small business owner or have simply invested in a family trust to safeguard your financial assets, you may need to file additional forms with your USA income tax form. Filing requirements for USA taxes could apply if your foreign company or trust has generated taxable income in the fiscal year or has any form of involvement with the USA apart from the owner.

Foreign company tax is a common cause of confusion among US taxpayers, who risk underreporting their assets or committing accidental filing errors that result in compliance penalties. Fortunately, filing requirements for foreign companies and trusts is a speciality of US Global Tax. Our knowledgeable staff boast years of experience dealing specifically with New Zealand and Australian trusts and their filing requirements for taxes in the USA.

Foreign companies such as SMES, partnerships, and large corporations often must complete and file Form 5471 with the IRS. Reporting the income of foreign business assets is strictly enforced, and the IRS can issue large penalties for noncompliance.

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Foreign Companies & Trusts

In order to understand your filing requirements, you must first be able to define the foreign company or trust you are filing for.

Foreign Corporations

Participating in a foreign corporation in New Zealand or Australia will require filing Form 5471 every year with your individual tax return. This applies if own a stock share of at least 10% in the corporation and claim a director or officer role. If the corporation is owned by a majority of US taxpayers, then you will need to file Form 5471 regardless of your percentage of ownership.

Foreign Limited Liability Companies

LLCs owned by US taxpayers can have distinct requirements when reporting taxable income, which is why many people turn to tax experts like those at US Global Tax for guidance. With the right filing procedures, LLCs can often by “disregarded” for federal income taxes, meaning that filing requirements can be managed entirely within the individual’s income tax return.

Foreign Partnerships

If you are a US citizen or resident that owns as little as 10% of a foreign partnership, you will need to learn more about Form 8865, which reports the income and filing status of the partnership. Speak to US Global Tax today to see if this applies to you.

Foreign Trusts

The US government applies a rather complex set of metrics when defining a foreign trust, which often leads to confusion among taxpayers. Let our tax specialists help you determine if your foreign interests qualify as a foreign trust, and which forms will need to be filed as a result.

More About Form 5471

A significant form for US taxpayers with stakes in foreign corporations, Form 5471 became much more important following the passage of FATCA (Foreign Account Tax Compliance Act) in 2010. The IRS leans heavily on Form 5471 in order to track the large income amounts generated by foreign corporations. Therefore, accurate, detailed reporting is essential and noncompliance pentalties can be severe. At US Global Tax, we appreciate the nuance of these forms and can help you make sense of them. Let us put our experience and expertise to work for you.

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Who needs a to file a US tax return?

  • National Association of Tax Professionals
  • IRS Enrolled Agent
  • National Associations of Enrolled Agents