FILING REQUIREMENTS
US persons abroad are required each year to file a tax return and report worldwide income. This requirement is imposed regardless of the person's circumstances. Commonly labeled 'citizen-based' taxation, many foreign countries only require tax filings based on residency rather than on citizenship. The following forms may also be required filings.
What defines a US person?
A US citizen
A US resident
A domestic corporation
A domestic partnership
An estate or trust that is not foreign.
But note that a US resident can be a Green Card holder who has not lived in the United States for some period of time.
Foreign Banking
- Account Report (Form 114). Any US person (US citizen, US corporation, US partnership, US estate or US resident with signature authority or financial interest in one or more foreign financial accounts the aggregate value of which exceeds $10,000 in a calendar is obliged to file this report by 30 June.
- Statement of Specified Foreign Financial Assets (Form 8938). Depending on filing status, the report calls for disclosing Specified Foreign Financial Assets.
Foreign Corporations.
- Information Return of US Persons With Respect to Certain Foreign Corporation (Form 5471). Any US person with ownership interest in a foreign corporation is required annually or periodically to file this onerous information return.
- Transfers to Foreign Corporations (Form 926). Transfers of tangible or intangible property by a US person to a foreign corporation.
– US Income Tax Return of a Foreign Corporation (Form 1120F). Foreign corporations engaged in a trade or business in the United States are obliged to file this difficult return.
- Information Return of a 25% Foreign-Owned US Corporation or a Foreign Corporation Engaged in a US Trade or Business (Form 5472). The reporting corporation must file this return if it had a reportable transaction with a foreign or domestic related party.
Foreign Disregarded Entity.
– Information Return of US Persons With Respect to Foreign Disregarded Entities (Form 8858). US persons that are tax owners of a Foreign Disregarded Entity must file this complex return.
Foreign Partnerships.
– Return of US Persons With Respect to Certain Foreign Partnerships (Form 8865). US persons are obliged to file this detailed form based on predetermined criteria.
Passive Foreign Investment Company.
Information Return by a Shareholder (Form 8621). US person that is a direct or indirect shareholder files according to certain criteria.
Foreign Trusts.
– Annual Return to Report Transactions with Foreign Trusts (Form 3520). The grantor or beneficiary of a foreign trust must file this form under certain prescribed circumstances.
– Annual Information Return of Foreign Trust (Form 3520A). US owners of foreign trust must disclose details about the foreign trust, US beneficiaries, and any US person owing a portion of the trust.
Other Foreign Filings.
- Treaty-Based Return Position Disclosure (Form 8833). Any filer who takes a treaty-based return position.
- Initial and Annual Expatriation Statement (Form 8854). Reporting provisions that apply to US citizens who have relinquished their citizenship and long-term residents who have terminated their residency.
What defines a US person?
A US citizen
A US resident
A domestic corporation
A domestic partnership
An estate or trust that is not foreign.
But note that a US resident can be a Green Card holder who has not lived in the United States for some period of time.
Foreign Banking
- Account Report (Form 114). Any US person (US citizen, US corporation, US partnership, US estate or US resident with signature authority or financial interest in one or more foreign financial accounts the aggregate value of which exceeds $10,000 in a calendar is obliged to file this report by 30 June.
- Statement of Specified Foreign Financial Assets (Form 8938). Depending on filing status, the report calls for disclosing Specified Foreign Financial Assets.
Foreign Corporations.
- Information Return of US Persons With Respect to Certain Foreign Corporation (Form 5471). Any US person with ownership interest in a foreign corporation is required annually or periodically to file this onerous information return.
- Transfers to Foreign Corporations (Form 926). Transfers of tangible or intangible property by a US person to a foreign corporation.
– US Income Tax Return of a Foreign Corporation (Form 1120F). Foreign corporations engaged in a trade or business in the United States are obliged to file this difficult return.
- Information Return of a 25% Foreign-Owned US Corporation or a Foreign Corporation Engaged in a US Trade or Business (Form 5472). The reporting corporation must file this return if it had a reportable transaction with a foreign or domestic related party.
Foreign Disregarded Entity.
– Information Return of US Persons With Respect to Foreign Disregarded Entities (Form 8858). US persons that are tax owners of a Foreign Disregarded Entity must file this complex return.
Foreign Partnerships.
– Return of US Persons With Respect to Certain Foreign Partnerships (Form 8865). US persons are obliged to file this detailed form based on predetermined criteria.
Passive Foreign Investment Company.
Information Return by a Shareholder (Form 8621). US person that is a direct or indirect shareholder files according to certain criteria.
Foreign Trusts.
– Annual Return to Report Transactions with Foreign Trusts (Form 3520). The grantor or beneficiary of a foreign trust must file this form under certain prescribed circumstances.
– Annual Information Return of Foreign Trust (Form 3520A). US owners of foreign trust must disclose details about the foreign trust, US beneficiaries, and any US person owing a portion of the trust.
Other Foreign Filings.
- Treaty-Based Return Position Disclosure (Form 8833). Any filer who takes a treaty-based return position.
- Initial and Annual Expatriation Statement (Form 8854). Reporting provisions that apply to US citizens who have relinquished their citizenship and long-term residents who have terminated their residency.