The section 1059A trap: my customs value is lower than my tax COGS — is that a problem?
I import from my own foreign company. For customs I declared a fairly low value, but for my tax return I want to book a higher cost of goods sold including my real landed cost. A friend mentioned 'section 1059A' and that my tax inventory cost can't exceed my customs value. Is that real? Won't that hurt my COGS deduction?
Related Questions
I fund my factory's tooling and packaging — does that increase my customs value (assists)?
I buy private-label goods from my own foreign factory. I also pay for the molds, the custom packaging design, and some artwork the factory uses to make my product. On the customs entry we only declare...
Are import duties deductible right away, or do they go into inventory under section 263A?
I paid a lot of customs duties this year on inventory that's still mostly sitting in the Amazon warehouse unsold. Can I deduct all those duties now as an expense, or do they have to be capitalized int...
Are China Section 301 tariffs still in effect for my imports?
I keep reading conflicting things — that the 2025 China tariffs ended, but also that China tariffs are still alive. I import consumer goods made in China for FBA. Are the Section 301 China tariffs sti...
CBP says my importer record could not verify the EIN even though the IRS already issued it. What is usually missing?
I am in India and my LLC has an EIN from the IRS, but my customs broker says CBP could not verify the importer record cleanly. I sent state formation records and the SS-4 copy, but apparently that may...
My U.S. LLC imports inventory, but my broker handles everything. Do I still need to care about customs records personally?
I run a product business from Singapore through a Delaware LLC and we have started importing small container shipments into the U.S. for resale. A customs broker handles the entries, duties, and paper...
I under-declared my import value last year — what is a customs prior disclosure?
Reviewing my own records, I realized I under-declared the value on several entries last year (I forgot to include assists). I haven't heard anything from CBP. Should I just fix it quietly on future en...
Can my foreign-owned US LLC be the importer of record if I have no SSN?
I'm a non-resident and I formed a US LLC to sell private-label goods on Amazon FBA. The factory and my freight forwarder keep asking who the 'importer of record' is. I have no SSN. Can my LLC actually...
Do I need a customs broker, and if I use one am I still liable for mistakes?
Everyone tells me to hire a customs broker to handle my entries. Do I legally have to use one? And if the broker classifies my product wrong or undervalues it, is that on the broker or on me? I'd feel...
My first U.S. shipment is ready, but my broker keeps asking about importer setup and bond details. What do I actually need to confirm?
I live in the UAE and formed a Delaware LLC to import home goods into the United States. My customs broker is now asking me to confirm the importer of record details, identification number, and whethe...
My payroll service missed a deposit for our first U.S. employee. Is that really still my LLC's problem?
I live in Mexico and hired our first U.S. employee through a payroll provider because I wanted the setup to be handled professionally. Now the provider says one federal tax deposit was delayed, and my...
Have a similar question?
ForeignLLCTax members get expert answers with IRS citations. One CPA consultation costs $200+. Full access is $9.99/month.
Become a Member — $9.99/moDisclaimer: All content on ForeignLLCTax.com is created by a tax professional and is provided for general educational and informational purposes only. It does not constitute tax, legal, or accounting advice, and should not be relied upon as such. Every tax situation is different — for advice specific to your circumstances, please consult a licensed CPA, Enrolled Agent, or tax attorney. By using this website, purchasing a subscription, or accessing any tools or services, you acknowledge that no client-professional relationship is established between you and ForeignLLCTax.com or its operators. This website is not affiliated with the IRS.
