U.S. persons with respect to foreign disregarded entities
A U.S. person that directly, indirectly or constructively owns a foreign disregarded entity (FDE) must file this form. An FDE is an entity that is not created or organized in the United States and that is disregarded as an entity separate from its owner for U.S. tax purposes. For example, a single member Unlimited Liability Company in Canada owned by a U.S. person would trigger filing this form.
Form 8865: Return of U.S. persons with respect to certain foreign partnerships
This form must be filed by a U.S. person who owned more than a 50% interest in a foreign partnership during the year or owned at least a 10% interest if the partnership was controlled by U.S. persons owning a 10% or greater interest. A U.S. person also has a filing requirement if he or she contributed property in exchange for a partnership interest if that person directly, indirectly or constructively owns at least a 10% interest, or the value of the property contributed exceeds $100,000.
Form 5471: Information return of U.S. persons with respect to certain foreign corporations
This form is filed by any U.S. person who is more than a 10% direct or indirect shareholder in a foreign corporation or any U.S. shareholder in a controlled foreign corporation (CFC), which broadly is a foreign corporation, more than 50% of which is owned by U.S. persons. A U.S. citizen or resident who is an officer or director of a foreign corporation may also have a filing requirement if a U.S. person acquired stock in a foreign corporation. So, for example, if you or your business owns a corporation in Canada, then you will want to file this form otherwise the penalty for not filing can be as high as $50,000.
Form 926: Filing requirement for U.S. transferors of property to a foreign corporation
Any U.S. person who transfers property to a foreign corporation and owns more than 10% of the stock, or any amount of stock if cash transferred is more than $100,000, must file this form with his or her U.S. tax return. This form would apply, for example, if a U.S. person simply was to contribute cash in exchange for stock to form a wholly owned foreign corporation.
Form 3520-A/3520: Annual information return of foreign trust with a U.S. owner
A foreign trust with a U.S. owner, which can sometimes include foreign pension plans, Registered Education Savings Plans (RESPs) and depending on how you might interpret the IRS Regulations, Tax Free Savings Accounts (TFSAs), must file this form independently with the IRS by March 15 following the year to which it relates. Additionally, if a distribution or other payment is received from the trust, Form 3520 may be required (and should be filed with the taxpayer’s tax return). Failure to file these forms subjects the U.S. owner to an initial penalty equal to the greater of $10,000 or 5% of the gross value of the trust assets considered owned by the U.S. person at the close of the tax year. Canadian and U.S. investment, Passive Foreign Investment Company, Canadian Tax-Free Savings Accounts
A U.S. person that directly, indirectly or constructively owns a foreign disregarded entity (FDE) must file this form. An FDE is an entity that is not created or organized in the United States and that is disregarded as an entity separate from its owner for U.S. tax purposes. For example, a single member Unlimited Liability Company in Canada owned by a U.S. person would trigger filing this form.
Form 8865: Return of U.S. persons with respect to certain foreign partnerships
This form must be filed by a U.S. person who owned more than a 50% interest in a foreign partnership during the year or owned at least a 10% interest if the partnership was controlled by U.S. persons owning a 10% or greater interest. A U.S. person also has a filing requirement if he or she contributed property in exchange for a partnership interest if that person directly, indirectly or constructively owns at least a 10% interest, or the value of the property contributed exceeds $100,000.
Form 5471: Information return of U.S. persons with respect to certain foreign corporations
This form is filed by any U.S. person who is more than a 10% direct or indirect shareholder in a foreign corporation or any U.S. shareholder in a controlled foreign corporation (CFC), which broadly is a foreign corporation, more than 50% of which is owned by U.S. persons. A U.S. citizen or resident who is an officer or director of a foreign corporation may also have a filing requirement if a U.S. person acquired stock in a foreign corporation. So, for example, if you or your business owns a corporation in Canada, then you will want to file this form otherwise the penalty for not filing can be as high as $50,000.
Form 926: Filing requirement for U.S. transferors of property to a foreign corporation
Any U.S. person who transfers property to a foreign corporation and owns more than 10% of the stock, or any amount of stock if cash transferred is more than $100,000, must file this form with his or her U.S. tax return. This form would apply, for example, if a U.S. person simply was to contribute cash in exchange for stock to form a wholly owned foreign corporation.
Form 3520-A/3520: Annual information return of foreign trust with a U.S. owner
A foreign trust with a U.S. owner, which can sometimes include foreign pension plans, Registered Education Savings Plans (RESPs) and depending on how you might interpret the IRS Regulations, Tax Free Savings Accounts (TFSAs), must file this form independently with the IRS by March 15 following the year to which it relates. Additionally, if a distribution or other payment is received from the trust, Form 3520 may be required (and should be filed with the taxpayer’s tax return). Failure to file these forms subjects the U.S. owner to an initial penalty equal to the greater of $10,000 or 5% of the gross value of the trust assets considered owned by the U.S. person at the close of the tax year. Canadian and U.S. investment, Passive Foreign Investment Company, Canadian Tax-Free Savings Accounts