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Offshore Tax Forms – IRS

In keeping with our policy of full legal and tax compliance, offshorecorporation.com provides the following US IRS offshore tax forms for your convenience.

offshore tax forms

This list of IRS offshore tax forms is meant to provide helpful information and is for convenience only. It is for those who are involved with or are contemplating offshore banking, offshore company formation, offshore trust formation or offshore asset protection.

Offshore Tax Compliance

The law allows for the ownership and use of an offshore corporation, company, trust or offshore bank account. However, there are tax laws that require compliance and we fully recommend that you follow them. If you use these legal tools for asset protection or other benefits we urge you to also comply with the tax and other legal codes in the jurisdictions in which you are obligated. By and large, the US taxes its citizens and residents on their worldwide incomes. This is the case even if one has an offshore company or foreign bank account. It is also true even if one conducts the entire business overseas.

Some believe that taxes are not due until they bring the money back to the US. This is not the case in most instances. Since 1964, US people report profit generated in overseas companies they own or control. Moreover, this is so even if it is in a foreign account, whether or not the money is repatriated (i.e. brought back into the US). It is still the case even if you generated the profit in a foreign company, when owned or controlled by US people. This is referred to as a controlled foreign corporation (CFC).

Here is how it works. When a company is owned or controlled 50% or more by US people it is a CFC. When a US citizen or resident alien owns 10% or more of a CFC, they generally pay taxes on the corporate income as if they generated it in their own names.

Licensed Tax Advice

This is a simple explanation and there are some additional facets and some unique calculations, so seek licensed tax advice. There is no guarantee that the IRS offshore tax forms listed below are the only forms or the latest forms required. This is for informational purposes only and is not to be considered tax or legal advice. For tax advice, seek the advice of a knowledgeable, licensed accountant or attorney who specializes in offshore tax planning.

Most accountants are not familiar with tax code involving offshore corporations and offshore bank accounts. So it is important to seek the counsel of an experienced CPA who can work hand-in-hand with your accountant and who understands foreign legal tools and tax forms, offshore corporations and trust tax forms. Contact us for help finding CPAs who specialize in tax advice for US taxpayers with offshore interests.

List of Offshore Tax Forms

Form 3520 – Must be filed when you create or add to a foreign grantor trust. Reg. Section 16.3-1(d)(1) stipulates that the Form 3520 should be filed on or before the 90th day after either the creation of any foreign trust by a United States person or the transfer of any money or property to a foreign trust by a United States person. According to the instructions to Form 3520, it is due on the date of the filing of the taxpayer’s income tax return — including any extensions of time to file. So, it may be advisable to file on the earliest of the two dates.

Form 3520-A – Must be filed every year if you have created a foreign trust. Form 3520-A is due the 15th day of the third month after the end of the trust’s tax year. For a trust with a calendar year, the due date is March 15th. The trust can request an extension by submitting Form 2758 by the due date.

Form 5471 – May be required if you or your foreign trust have an interest in a foreign corporation. Form 5471 is due with the income tax return of the shareholder. For most individuals, that would be April 15th or the extended due date. For corporations with a calendar year-end, that is March 15th or the extended due date.

Form 8621 – Must be filed if you or your offshore trust or controlled foreign corporation have an interest in any offshore mutual fund or similar entity. Form 8621 is due with the income tax return of the shareholder. For most individuals, that would be April 15th or the extended due date. For corporations with a calendar year-end, that is March 15th or the extended due date.

Form 8865 – May be required if you or your foreign trust have an interest in a foreign partnership or LLC. Form 8865 is due with the income tax return of the shareholder. For most individuals, that would be April 15th or the extended due date. For corporations with a calendar year-end, that is March 15th or the extended due date.

Form 926 – To report transfers of property to a foreign corporation. This is filed with the applicable return such as the form 1040 for individuals or 1120 for corporations, etc. This is usually April 15th for individuals.

Form 8832 – Entity classification election. Often filed for a foreign LLC to elect disregarded entity status; thus, the tax responsibility flows through to the owner(s) so that there is no tax at the company level. To be filed within 75 days of the formation of the company or within 75 days of the beginning of the year in which the election is desired.

Form 8858 – Transactions Between Foreign Disregarded Entity of a Foreign Tax Owner and the Filer or Other Related Entities. This is filed with the applicable return such as the form 1040 for individuals or 1120 for corporations, including extensions. This is usually April 15th for individuals or March 15th for calendar year-end corporations.

FinCEN Form 114 – The Foreign Bank and Financial Accounts (FBAR) is no longer applicable and the TD F 90-22.1 has been replaced with an updated form, FinCEN Form 114 (FinCen). The form is due on the same filing schedule as 1040 form with the same due dates and extension dates. A US person or company with signature authority over or financial interest in one more more foreign bank/financial accounts that total over $10,000 US. This not technically a tax form but a U.S. Department of the Treasury form.

Form 2555 – Foreign Earned Income – For Use by U.S. citizens and resident aliens living abroad to exclude a certain amount of foreign earnings from taxes and/or to claim the housing exclusion. For most individuals, the due date April 15th or the extended due date.

Form 8938 – Statement of Specified Foreign Financial Assets – For those with in interest in specified foreign financial assets, including bank and brokerage accounts. As of this writing the threshold for those living in the United States is $50,000 on the last day of the tax year ($200,000 for qualified expatriates) or more than $75,000 at any time during the year ($300,000 for qualified expatriates). Double those amounts for married couples filing jointly. Qualified expatriates referred to here generally means US citizens who have lived abroad for at least 330 days of the 12 month tax year. For most individuals, the due date April 15th or the extended due date.

If you aware of any updates to the information herein or of any new offshore tax forms, please feel free to inform us by filling out the inquiry form on this page. If you need to form an offshore company, trust or bank account, please complete a consultation form above or call the number on this page.

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