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.
Foreign Tax Credit Introduction: How to Avoid Double Taxation (Ep. 21)
I'm trying to maximize my tax credits: Foreign Tax Credit Introduction: How to Avoid Double Taxation. How do I calculate and claim these credits correctly?
Does my state have additional AML requirements beyond the federal ones for my foreign-owned LLC?
My foreign-owned LLC is registered in New York. I know about the federal BSA/AML requirements from FinCEN. But someone mentioned that New York has its own AML rules that are even stricter than the fed...
General Business Credit Introduction: Form 3800 Overview (Ep. 24)
I'm trying to maximize my tax credits: General Business Credit Introduction: Form 3800 Overview. How do I calculate and claim these credits correctly?
What happens to my 401(k) and deferred compensation when I expatriate?
I have about $800,000 in my 401(k), $200,000 in a traditional IRA, and I'm owed about $300,000 in deferred compensation from my former employer. I'm surrendering my green card next year. My tax attorn...
Our adviser says foreign taxes in the section 951A basket do not carry over. Is that actually different from normal Form 1116 carryovers?
I am a U.S. shareholder in a foreign operating company, and this year our international package includes foreign taxes connected to section 951A category income. I am used to hearing that unused forei...
Our foreign partnership keeps local books in euros. Does Form 8865 Schedule L really need U.S.-GAAP-style balance sheets translated into dollars?
I am a U.S. Category 1 filer for a foreign partnership based in Spain. The partnership's accounting system is local, in euros, and the year-end books do not look like a U.S. tax balance sheet package....
My foreign taxes are under the simplified limit, but I also have an unused carryover. Can I skip Form 1116 this year?
I am a U.S. taxpayer in the UK and my current-year passive foreign taxes are low enough that I might qualify for the simplified credit without Form 1116. The wrinkle is that I still have an unused for...
If I had no gross income but still need to file as a nonresident, do I really send only Schedule OI and an exclusion list?
I am from Japan and had a year where my U.S.-connected activity created filing questions but no gross income after the relevant exclusions. My adviser said I may still need a Form 1040-NR filing, but ...
Our income was seasonal. If we use the annualized method, do we have to attach Form 2220 even if the IRS could compute the penalty?
I run a U.S. corporation that earns most of its revenue in the holiday season. The early quarters were weak and the fourth quarter was enormous, so the standard installment pattern does not reflect th...
Our transfer adviser keeps mentioning Schedules G and H on top of Schedule O. Is that because this may be section 721(c) property?
I am a U.S. person who transferred appreciated operating assets into a foreign partnership as part of an internal group restructuring. The transaction was planned as tax-deferred, but now our reportin...
Our C corporation received dividends from a foreign subsidiary. Does that just go on Schedule C like an ordinary domestic dividend?
I manage a U.S. holding company that owns an operating subsidiary in Europe. During 2025 the foreign subsidiary paid a dividend of about $480,000 to the U.S. company. We also have some domestic portfo...
I am traveling constantly and may be abroad near the deadline. Can a U.S. agent sign my Form 1040-NR for me?
I am a founder from Argentina who spent most of the year moving between countries. My Form 1040-NR will be ready on time, but there is a decent chance I will be in transit and unable to sign physicall...
My foreign tax changed only because of exchange rates, and the dollar difference is tiny. Can I avoid amending old U.S. returns?
I am a U.S. person in Japan and my Japanese tax liability did not really change in local currency, but when the final payment was translated into dollars the amount differed from what we accrued earli...
When paper-filing Form 1040-X for a 1040-NR amendment, do I really attach a whole corrected 1040-NR behind it?
I am a founder from Brazil and need to amend my 2024 Form 1040-NR because we found an omitted Form 1042-S and also need to revise the foreign tax credit. I was expecting Form 1040-X to be just a cover...
Our consulting corporation wants a fiscal year ending September 30. Are we blocked because the company is a personal service corporation?
I own a consulting corporation with two cofounders, all of us active in the business, and almost all the company's income comes from advisory work. We are based partly in Canada and partly in the U.S....
I increased my stake in a foreign partnership from 9% to 11%. Does crossing 10% alone trigger Category 4 filing?
I am a U.S. person investing in a foreign venture partnership. My direct interest was about 9% and I bought a small additional piece that took me to roughly 11%. Nothing else changed operationally, an...
I only own the foreign partnership interest constructively through another U.S. person. Can I skip the full Form 8865 if that person files it?
I am treated as an indirect owner of a foreign partnership through a U.S. company in which I own shares, but I do not hold the partnership interest directly. The direct U.S. owner plans to file Form 8...
Our software pulled in a prior-year foreign tax credit carryover, but I do not see Schedule B attached. Is that a problem?
I am a U.S. citizen living in the UK, and this year's Form 1116 includes a carryover from a prior year where the passive basket was limited. The tax software reflected the amount on line 10, but when ...
Why do my Forms 8805 go behind the return while my 1042-S forms go on the front of Form 1040-NR?
I am from India and my Form 1040-NR this year includes partnership withholding on Form 8805 and also platform withholding on Forms 1042-S. The package is not huge, but the assembly instructions feel w...
Our C corporation had under $250,000 of receipts and assets. Can we really skip Schedule L and M-1, or is there another catch?
I run a small Delaware C corporation owned from Germany. We had about $172,000 of receipts and finished the year with around $141,000 of total assets. The return itself is otherwise straightforward an...
Tax Return vs Information Return: What's the Difference? (Ep. 10)
I'm new to U.S. taxes and need to understand: Tax Return vs Information Return: What's the Difference?. Can someone explain this in straightforward terms?
I had ECI but no U.S. wages at all. Is June 15 really the correct due date for my Form 1040-NR?
I am based in South Africa and my only U.S. tax issue is effectively connected business income from services. I had no W-2 wages, no payroll withholding, and no employee status with any U.S. company. ...
I own more than 10% of a foreign partnership, but another U.S. partner is clearly Category 1. Does that mean I am not a Category 2 filer after all?
I am a U.S. investor in a foreign partnership operating in Portugal. My direct interest is about 14%, while another U.S. investor appears to control more than 50% together with related U.S. persons. W...
How exactly does FIRPTA work when my single-member LLC sells property? Who withholds?
I own a single-member LLC in Delaware that holds a rental house in Arizona. I'm a non-resident alien from Australia. I've accepted an offer and we're heading to closing next month. The buyer's agent i...
I'm a U.S. person with a 60% interest in a foreign partnership. Do I need Form 8865?
I'm a U.S. citizen and I have a 60% interest in a partnership organized in Germany. The partnership operates a consulting business there. I've been reporting my share of income on my Form 1040 but was...
Why Tax Filing Requirements Matter: Every U.S. Taxpayer Should Know (Ep. 1)
I'm new to U.S. taxes and need to understand: Why Tax Filing Requirements Matter: Every U.S. Taxpayer Should Know. Can someone explain this in straightforward terms?
Common AMT Triggers: Accelerated Depreciation Explained (Ep. 18)
I'm worried about the Alternative Minimum Tax: Common AMT Triggers: Accelerated Depreciation Explained. How do I know if this affects me and what can I do about it?
I'm from Taiwan — how does my U.S. LLC get taxed?
I'm a Taiwanese citizen and tax resident in Taipei. I formed a Delaware LLC for my tech consulting business. I work from Taiwan for U.S. clients. Taiwan does not have a formal tax treaty with the U.S....
Head of Household Decision Tree (Ep. 78)
I need help with my filing status: Head of Household Decision Tree. What are the rules and how do I determine what applies to my situation?
Does holding U.S. real estate through an LLC protect me from FIRPTA? My attorney said it would.
I'm a Brazilian citizen looking to buy rental properties in Miami. My attorney in Brazil recommended I set up a Wyoming LLC to hold the properties, saying it would "protect" me from FIRPTA. But I've b...
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