Filing requirement for a foreign LLC

Technical topics regarding tax preparation.
#1
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Hi there. My client married a woman from the Czech Republic and she is now a US tax resident. In her native country, she has an LLC. I have the 2022 LLC tax return in Czech, which shows only a minor loss. My question pertains to the 2022 tax reporting on the US return. I would like to confirm whether she needs to file Forms 5471 and 926. The IRS considers foreign LLCs as corporations, hence the requirements. If she wants to keep that LLC in her native country, I can file form 8832 and classify it as disregarded. Going forward she will be filing a regular schedule C.
Thank you. Just wanted to make sure I didn't miss anything.
 

#2
zl28  
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did you consider form 8858?
 

#3
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This is what I am trying to confirm. Based on what I researched, all foreign LLCs are treated as corporations. To opt into disregarded entity treatment, I would need to file form 8832 and then I will be allowed to file form 8858. This can happen only in 2023 since we are late for 2022
 

#4
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viewtopic.php?t=26342

That will get you started in your analysis. And, there are additional posts like it if you search for "per se corp" on this site. Might have to do a site search via google or duck duck go rather than using the yellow search box.
 

#5
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ManVsTax wrote:https://www.taxprotalk.com/forums/viewtopic.php?t=26342

That will get you started in your analysis. And, there are additional posts like it if you search for "per se corp" on this site. Might have to do a site search via google or duck duck go rather than using the yellow search box.


Thank you
 

#6
deniz  
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ManVsTax wrote:https://www.taxprotalk.com/forums/viewtopic.php?t=26342

That will get you started in your analysis. And, there are additional posts like it if you search for "per se corp" on this site. Might have to do a site search via google or duck duck go rather than using the yellow search box.


Good analysis, but I am unclear on this conclusion by dellpaul

"If you don’t make the election, gain was triggered on the contribution into the foreign corporation."

367(a) requires gain on contribution of appreciated US property to CFC. If UST contributes cash at basis to MexCo to build the hotel, then how does cash contribution trigger gain?
 


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