Business Foreign Reporting Compliance
There are a variety of tax matters to address for U.S. businesses dealing overseas, and for non-U.S. businesses working in the United States. Our Firm specializes in these tax matters.
We assist U.S. - based multinational businesses and their owners with determining foreign tax credits, and current and future utilization of these credits. For U.S. businesses making payments overseas, withholding of certain amounts on those payments is often required. These withholding requirements can be burdensome. We help meet the requirements by assisting with the preparation and filing of Forms 1042. We also help businesses and their owners with understanding tax treaties between countries. For countries where there are tax treaties with the U.S., there are often reduce withholding rates on cross-border payments.
Foreign-based businesses with operations in the U.S. must report activities on Form 5472. We help businesses with the accounting and recordkeeping necessary to properly prepare this form.
U.S. citizens and U.S. permanent residents who are shareholders, directors and officers in non-U.S. (foreign) corporations, must report certain information regarding the business itself, and their holdings in, and transactions with, the business annually in their individual income tax returns. This reporting is typically made on Form 5471. The requirements within Form 5471 have become more comprehensive in recent years. Similarly, there are reporting requirements for U.S. citizens and U.S. permanent residents who are partners in foreign partnerships. Reporting interests in foreign partnership is made on Form 8865.