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.
Where do I actually claim the FIRPTA money back, and why does the refund take so long?
The buyer withheld a big chunk under FIRPTA on my US sale and I have the stamped statement. As a foreign individual, where on my return do I claim that as a credit? And I keep hearing refunds can take...
Does being a non-resident foreign owner change whether my LLC has to foreign-qualify?
I'm not a US citizen or resident — I live abroad and own a US LLC. I keep wondering whether my being a foreign person changes the foreign-qualification analysis. Does the state look at where I, the ow...
What is a CBP Focused Assessment audit and what does it look at?
I heard CBP can audit importers with something called a 'Focused Assessment.' My FBA import volume is growing and I want to know what triggers one and what they actually examine. Is it like an IRS aud...
What are the penalties for a late or wrong Form 1042-S, and am I off the hook if the foreign payee pays the tax themselves?
I think I may have missed withholding on a payment to a foreign payee last year. The payee told me they already reported the income and paid US tax on their own return, so I assumed that clears me. Ho...
I sell on both Amazon FBA and my own Shopify store — what's the hidden tax trap?
My foreign-owned US LLC sells the same products both through Amazon FBA and through my own Shopify website. Amazon collects sales tax on the marketplace orders, so I assumed I was mostly covered. A fr...
After I mail a Streamlined package, does the IRS confirm it accepted my submission?
I'm about to send my Streamlined package. Will I get a letter back saying I'm in the clear? How long does it take, and can they still audit me afterward?
Can I use First-Time Abatement on my Form 5472 penalty? My CPA says no but I see the FTA program on irs.gov.
I got a $25,000 Form 5472 penalty for one late tax year. My filing history is otherwise clean — no prior penalties. My CPA says First-Time Abatement doesn't apply to Form 5472, but the FTA page on irs...
Form 8938 for my foreign-owned LLC — when is the LLC a 'specified domestic entity' and what are the penalties?
My foreign owner uses a Wyoming LLC to hold a brokerage account in Switzerland. We've been filing the LLC's Form 5472 and the owner's FBAR. Someone said the LLC itself might also have a Form 8938 obli...
What are the current 2025 FBAR penalty ceilings — and does the 50% rule still apply?
I see different FBAR penalty numbers in different sources. Some say $10,000 non-willful and $100,000 willful — but those look like the original 1970 statutory caps. What are the current 2025/2026 infl...
PRN 711 vs PRN 625 on my Form 5472 penalty notice — why does the code matter?
I received a CP215 notice with a Penalty Reference Number 711. My CPA mentioned PRN 625 might apply too. What's the difference between PRN 711 and PRN 625 on Form 5472 penalties, and does the code aff...
Boyd v. United States — was the Ninth Circuit's 2021 ruling the precedent that led to Bittner?
I read that Boyd was the pre-Bittner case that held the same per-report rule. My case is in California (Ninth Circuit). Does Boyd give me any additional argument beyond what Bittner already provides?
What did the 11th Circuit do to the CTA in December 2025, and what bills are pending?
I heard the 11th Circuit ruled on the CTA in December 2025 — does that mean BOI reporting is coming back? Also are there any active bills in Congress that could change things either way?
I'm exempt from BOI now but want to be ready if it returns — what records should I keep?
My Delaware LLC is exempt under the March 2025 IFR but I'd hate to scramble if the rule gets reversed. What's a minimal set of records I should keep on hand so I can file within 30 days if BOI reporti...
If BOI reporting comes back for US-formed LLCs, what are the actual penalties?
I'm currently exempt under the March 2025 IFR but I want to plan for the possibility it gets reversed. What does the underlying statute say about BOI penalties — civil and criminal — and is there any ...
I'm a US citizen and 30% owner of a UK company that registered in California. Do I report my BOI?
My UK Ltd company foreign-qualified in California for some business activities. I'm a US citizen and own 30% of the UK company. The UK company is a foreign reporting company under FinCEN. Do I persona...
FinCEN's February 2026 CDD relief — does it help me open additional accounts?
I read that FinCEN gave banks relief in February 2026 from re-collecting beneficial-ownership data at every new account opening. I already have a Mercury account and want to open a Relay account in th...
Wise Business 40-currency native vs Mercury/Relay USD-only — which fits which use case?
My foreign-owned LLC collects payments from US, UK, and EU customers. I'm comparing Wise Business, Mercury, and Relay. Wise advertises 40+ currency balances; Mercury and Relay seem USD-centric. What's...
Grasshopper Bank for foreign-owned LLCs — is it really US-citizen-only?
Grasshopper Bank keeps appearing in 'best fintech for startups' lists and looks great on paper. I tried to apply for my Wyoming LLC and got declined with no clear reason. A friend says Grasshopper act...
Bank of America for nonresident business owners in 2026 — what's the actual status?
Different blogs say different things about Bank of America for foreign-owned LLCs. Some say they accept nonresidents at branches; others say they require US residency. I tried to read BofA's own pages...
Wells Fargo for foreign-owned LLCs — is it true every signer needs an SSN?
I have an EIN for my Wyoming LLC but no personal SSN. I read that Wells Fargo opens business accounts in branches, so I was planning to fly to the US. A relative said Wells requires an SSN from EVERY ...
How long do I have to keep my foreign-owned LLC's records — is there a fixed number of years?
I want to clean up old files but I'm afraid of throwing out something the IRS will want. Is there a set retention period for section 6038A records, like seven years? My situation is messy because some...
What is the 1031(f) related-party 2-year rule, and does it catch an exchange done through my intermediary?
I want to exchange into a replacement property owned by a company my brother controls — so a related party. Someone warned me about a '2-year rule' under 1031(f) that can blow up the deferral. How doe...
Can I use the installment method when I sell my interest in a US partnership/LLC?
I'm a foreign partner selling my interest in a US LLC taxed as a partnership, with the price paid over three years. Can I report on the installment method, and is there any withholding on the sale lik...
Can I use First-Time Abatement and reasonable cause together on the same late LLC filing?
My foreign-owned LLC filed its pro forma Form 1120 plus Form 5472 late for one year, and the IRS hit me with penalties. I have a clean history. Can I claim First-Time Abatement AND reasonable cause fo...
If I don't resolve my CP2000, when does the 90-day Tax Court deadline start?
I'm going back and forth with the IRS on a CP2000 and worried about deadlines. People keep mentioning a 90-day Tax Court window. Does that 90 days start from the CP2000 date? And does living abroad ch...
Can I just file a W-8ECI to skip the 30% withholding on my creator income?
Someone in a forum said that if I file Form W-8ECI instead of W-8BEN-E, platforms won't withhold the 30% at source. That sounds like an easy win. Can I treat W-8ECI as a switch to stop withholding on ...
Amazon and Etsy collect sales tax for me — why isn't Shopify doing the same for my store?
On Amazon and Etsy the platform charges and remits the sales tax automatically, so I assumed my Shopify store would too. But it looks like I'm responsible for sales tax on my own Shopify storefront. W...
A foreign company owned by my family sent me $25,000 as a gift — does the $100,000 threshold apply?
I'm now a US resident, and my family still runs our business abroad. This year the company itself — not my parents personally — transferred me $25,000, described in the paperwork as a gift for my relo...
My LLC earns staking rewards — when is that income, and does the US even get to tax it?
The LLC stakes ETH and a couple of proof-of-stake tokens, partly directly from our own wallet and partly through an exchange staking program. I understand there is now an IRS ruling on staking, but my...
FUTA with one employee: when does my LLC actually have to deposit anything?
Mexican founder, US LLC, one full-time employee in the States since March. I keep seeing federal unemployment tax described as 6 percent in one place and 0.6 percent in another, and my provider says w...
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