U.S. OWNERS OF FOREIGN ENTITIES
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U.S. OWNER OF FOREIGN DISREGARDED ENTITY

A U.S. persons (citizen, resident or domestic partnership, corporation, estate, trust) that are tax owners of Foreign Disregarded Entities (FDEs), or that own certain interest in foreign tax owners of FDEs are required to report FDEs income on their applicable tax returns.

Such U.S. persons are required to attach to the applicable tax return Form 8858, Information Return of U.S. Persons With Respect to Foreign Disregarded Entities (FDEs) and Foreign Branches (FBs). They also may be required to file Form 8938, Statement of Specified Foreign Financial Assets and FinCEN Form 114, a Report of Foreign Bank and Financial Accounts (FBAR).

Who must file Form 8858, Information Return of U.S. Persons With Respect to Foreign Disregarded Entities (FDEs) and Foreign Branches (FBs).

1. U.S. persons that are tax owners of FDEs or operate an FB at any time during the U.S. person's tax year or annual accounting period. 

2. U.S. persons that directly (or indirectly through a tier of FDEs or partnerships) are tax owners of FDEs or operates an FB. 

3. Certain U.S. persons that are required to file Form 5471 with respect to a CFC that is a tax owner of an FDE or operates an FB at any time during the CFC's annual accounting period. Category 4 filers of Form 5471.

4. Certain U.S. persons that are required to file Form 8865 with respect to a CFP that is a tax owner of an FDE or operates an FB at any time during the CFP's annual accounting period.

Who must file Form 8938, Statement of Specified Foreign Financial Assets

Specified individuals and specified domestic entities that have an interest in specified foreign financial assets and meet the reporting threshold. The Form 8938 filing requirement does not replace or otherwise affect a taxpayer’s obligation to file FinCEN Form 114 (Report of Foreign Bank and Financial Accounts). See details…

Who must file FinCEN Form 114, a Report of Foreign Bank and Financial Accounts (FBAR)

A United States person, including a citizen, resident, corporation, partnership, limited liability company, trust and estate, must file an FBAR to report  if such person has a financial interest in or signature or other authority over at least one financial account located outside the United States and the aggregate value of those foreign financial accounts exceeded $10,000 at any time during the calendar year reported. Unlike Form 8938, the FBAR (FinCEN Form 114) is not filed with the IRS. It must be filed directly with the office of Financial Crimes Enforcement Network (FinCEN), a bureau of the Department of the Treasury, separate from the IRS. See details…​