Real Tax Questions, Expert Answers
Get answers to your foreign-owned LLC tax questions from ForeignLLCTax. Every answer includes IRS source citations and step-by-step guidance.
How do I map my monthly bookkeeping to Form 5472 — which transactions go on Part IV vs Part V?
I want my bookkeeping to flow cleanly into Form 5472 instead of scrambling at filing time. For a foreign-owned disregarded LLC, which related-party transactions go in Part IV (the monetary lines) and ...
Did the IRS really stop charging Form 3520 penalties in late 2024? Is it safe to file late now?
I owe a couple of late Form 3520 filings — one for a foreign gift, one for a trust year. My feed keeps surfacing posts saying the IRS ended automatic 3520 penalties at the end of 2024 and that late fi...
How do I register for sales tax with no US address or EIN — can I use Streamlined Sales Tax?
I've crossed the threshold in a few states and need to register for sales tax, but my LLC has no US mailing address and I don't have an EIN or SSN. Is there a way to register across multiple states at...
Foreign-corp branch vs US C-corp — which second-level tax is worse?
I'm deciding how to structure my US operations: run them directly through my foreign corporation as a branch, or set up a US C-corporation owned by my foreign parent. I understand the first level of t...
What treaty rate applies to my YouTube royalties? I'm in the UK — what about Canada, Germany, Australia, Korea, India?
I understand my YouTube US-viewer earnings are royalties that can be withheld. I'm in the UK and want to know my copyright-royalty treaty rate, and I'm comparing notes with creator friends in Canada, ...
If the IRS assesses an FBAR penalty, do I fight it in Tax Court — and is it separate from Form 8938?
Two things I can't figure out about cleaning up old foreign accounts. First, if the IRS hits me with an FBAR penalty, is that a Tax Court case like an income-tax dispute? Second, I've also heard about...
Can First-Time Abatement remove the accuracy penalty on my CP2000?
My CP2000 added a 20% accuracy penalty on top of the extra tax. I've never had a penalty before, so can I just ask for First-Time Abatement to get it removed? If not, what's the right way to fight the...
I have a large seller note — what are the section 453A interest charge and pledge rule?
I sold a US business and I'm carrying a big seller note. Someone mentioned a section 453A 'interest charge' and a 'pledge rule' if I borrow against the note. When do those kick in, and what happens if...
My LLC is taxed as a partnership and paid foreign tax — who claims the FTC, me or the LLC?
I'm one of two members in a US LLC taxed as a partnership. The LLC earned some foreign income and paid foreign tax, reported on Schedule K-3. Does the partnership claim the foreign tax credit, or do I...
My property is in a disregarded single-member LLC — who is the 'transferor' for FIRPTA, the LLC or me?
I hold a US rental in a single-member LLC that's disregarded for tax. When I sell or exchange it, who counts as the transferor for FIRPTA purposes — the LLC, or me the foreign owner? It matters for th...
If I own US real estate directly and die, does FIRPTA become an estate-tax problem too?
I'm a non-US person holding US rental property in my own name (well, in a disregarded LLC). I get that selling triggers FIRPTA. But what happens if I die still owning it? Is there a separate US tax at...
If the IRS adjusts my related-party pricing, how big are the section 6662 transfer pricing penalties — 20% or 40%?
I want to understand the downside before it happens. If the IRS decides my intercompany prices were off and makes a section 482 adjustment, what penalty am I looking at? I see both 20% and 40% mention...
How is Form 1042 different from section 1446 partnership withholding and from the Form 5472 baseline?
I'm getting these tangled. My foreign-owned LLC already deals with Form 5472, and I've read about section 1446 withholding for partnerships. Now there's Form 1042 and 1042-S on top. Are these all the ...
Did the IRS accept my Form 8832? I got a notice and I'm working from a Spanish 'Formulario 8832'
I filed to change my LLC's classification and received an IRS notice, but I'm not sure if it means accepted or rejected. I prepared everything from a Spanish 'Formulario 8832' I found online. Is there...
Is Illinois really different on FBA inventory used only for marketplace orders?
Someone told me Illinois treats FBA inventory differently from most states — that inventory used only to fill Amazon marketplace orders does not create physical nexus there, unlike California or Penns...
What's the Form 706-NA deadline, and what are the spouse and charity traps?
If a nonresident with US assets dies, how long does the executor have to file Form 706-NA, and can you get an extension? I also want to know about two things I've heard are traps: leaving US assets to...
If a payroll provider files my LLC's W-2s late or wrong, is the LLC off the hook?
I run a foreign-owned LLC from Nigeria with three US employees, and we pay a well-known payroll service to handle literally everything — deposits, the quarterly returns, and the year-end W-2s. My assu...
What do Form 3520 and 3520-A penalties actually look like in dollars? Trying to size my exposure
I'm reconstructing several years of foreign trust filings I didn't know I owed — I moved to the US three years ago with a family trust in the background. Before I talk to a professional I want to unde...
My US LLC has an account at a foreign crypto exchange — does it file an FBAR?
The LLC (US-registered, foreign-owned, disregarded) keeps an account at a crypto exchange based outside the United States. The account holds only crypto — no fiat balances right now, though we have oc...
Selling my property LLC with 20% down and four annual payments — buyer says all the FIRPTA tax is withheld NOW?
I'm a foreign seller. My disregarded LLC holds a US commercial property, and the buyer and I agreed on an installment deal: 20% at closing, the rest over four years. I expected tax (and withholding) t...
Can I keep my section 6038A records electronically, or do I need paper? Is a folder of PDFs enough?
I run everything paperless. My invoices, contracts, and bank records are all scanned into cloud folders, and my accounting is in software. Is electronic storage actually acceptable for section 6038A, ...
Stripe sent my LLC a 1099-K and YouTube sent a 1042-S — how do I reconcile two different forms?
My foreign-owned US LLC got a 1099-K from Stripe (for sponsor and membership payments routed through it) and separately a 1042-S from YouTube for US-viewer withholding. They show different numbers and...
Do I need to follow Section 263A UNICAP rules for my foreign-owned LLC selling on Amazon?
I'm a Singapore resident running a foreign-owned Wyoming LLC that sells supplements on Amazon FBA. My accountant brought up 'Section 263A UNICAP' and said it might require capitalizing freight, wareho...
How do foreign partners track outside basis in a U.S. LLC partnership — does LLC debt count?
I'm a foreign partner with a 30% interest in a multi-member U.S. LLC taxed as a partnership. The LLC took out a $500,000 nonrecourse bank loan to buy equipment. My CPA mentioned 'outside basis' affect...
On Form W-8BEN-E Part III, what's the difference between line 14a, 14b, and 15? My U.S. payor keeps rejecting my form.
I'm a UK-incorporated Ltd company providing software licensing services to a U.S. tech firm. They're withholding 30% on my royalty payments unless I get my W-8BEN-E approved. I checked 14a 'resident o...
What goes on Form 5472 Part V — and when do I actually have to fill it out?
I'm filing Form 5472 for my Wyoming LLC for the 2026 tax year. Parts IV (monetary) and VI (Items Affecting Foreign Owner) I sort of understand, but Part V is confusing — the heading says 'Reportable T...
I'm based in Dubai and own a Wyoming LLC — does UAE's 9% corporate tax apply to my U.S. LLC profits?
I moved to Dubai in 2023 and run a consulting business through a Wyoming single-member LLC. I just heard that UAE introduced 9% corporate tax effective 2023 and there's something about a 'substance te...
I'm a Taiwan resident with a U.S. LLC — does Taiwan tax me on undistributed LLC earnings under the new CFC rules?
I'm a Taiwanese tax resident running a U.S. software LLC (single-member, disregarded for U.S. tax). I just learned Taiwan rolled out CFC rules effective 2023 and I'm worried that even if I leave profi...
Can the IRS get my passport revoked if my Wyoming LLC owes back tax?
I'm a Mexican citizen with a Wyoming LLC. The LLC has unpaid Form 5472 penalties from 2023 and 2024 totaling around $50,000. I just renewed my Mexican passport and I'm planning to visit the U.S. for a...
What's the minimum interest rate I need to charge my Wyoming LLC on a 2026 owner loan?
I want to lend $80,000 from my personal account in Germany to my foreign-owned single-member Wyoming LLC for a 3-year term. I know there's some IRS minimum interest rate I have to charge or there's an...
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