Cross-Atlantic compliance

If you’re a non-US citizen owning or investing in US businesses, you’re required to file annual returns with the IRS. The rules can be confusing, and failure to comply carries serious consequences. With our guidance, you’ll stay compliant, avoid unnecessary double taxation, and protect your interests.

Your IRS obligations at a glance

We take the time to understand your story and answer your questions. But here’s a clear outline of the IRS’s key filing requirements – and the risks of non-compliance – when you’re invested in US companies.

Form 5472: Information Return of a 25% Foreign-Owned US Corporation

• Required if you directly or indirectly own 25% or more of a US corporation.
• Disclose ownership, transactions with related parties, and company financials.
• Due by the corporate tax return deadline (typically 15 April), with extensions available.
• Penalties: $25,000 for failure to file or provide complete information.

Form 1120-F: US Income Tax Return of a Foreign Corporation

• Required if the US corporation is considered effectively connected with a US trade or business.
• Reports income, deductions, and credits; calculates US tax liability.
• Due 15 April for corporations with a December year-end (extensions possible).
• Penalties: late filing and underpayment penalties may apply.

Form 1042/1042-S: Withholding on US Source Income of Foreign Persons

• Required if the company distributes US-source income to foreign owners (e.g., dividends, interest, royalties).
• The company must withhold the correct tax and report payments to the IRS.
• Penalties: failure to withhold or report can result in significant fines.

Precision you can trust

No matter how complex your business interests – in the US, the UK, or both – we’ll ensure your returns are accurate, efficient, and fully compliant. With step-by-step guidance, you stay in control with the minimum of fuss.