I contributed $150,000 cash to a foreign company I now own 20% of. Is Form 926 triggered even though it was just startup capitalization?
I am a U.S. founder and wired $150,000 into a newly formed foreign corporation as part of the initial capitalization. I now own 20% after the transfer. The deal felt like ordinary founder funding, not a tax event, so Form 926 was not on anyone's radar until much later. Now I am reading that cash alone can trigger the form under specific thresholds.
Before I amend anything, I want to know whether this is clearly in the filing lane or whether there is still room to treat it as nonreportable startup funding. If the form applies, I also want to know whether it rides with the return or gets filed on its own.
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