Foreign Business Tax Returns | H&R Block®

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Our expert tax advisors can help with foreign business structures like:

Sole proprietors

Limited Companies

Partnerships

Trusts

Frequently asked questions

The IRS requires that you report your income statement and balance sheet from your foreign business, much like you would in the U.S. While these reports are mostly informational in nature, there can be very steep penalties for not filing them timely.

While you still need to report the income you earn from your company (whether that’s wages, dividends, or partnership income), you still must also report the activities of the business itself if your ownership exceeds certain threshold percentages.

This depends on what type of business it is, but the most common form is Form 5471, which is used to report an interest in certain foreign corporations. Another common form is Form 8865 used to report interests in partnerships abroad.

This can be quite complex. There are many details to consider when determining if one of these forms must be filed. Your ownership percentage, who else you own the business with, and your relationship to them all play a role. It’s usually best to discuss this with your tax advisor to get a handle on your overall situation.

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