Author Topic: Director of LTD Company - US returns filed on year end or US calendar year??  (Read 194 times)

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Offline londonbos

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Directors of who own 100% of a Foreign Corporation - do you file US returns based on your **foreign company's year end dates** OR the US calendar year (Dec-Jan)? Here's my scenario - I own a Limited company in the UK and my previous US accountant has filed all my previous years accounts based on my UK company's tax year but my new accountant says she *thinks* this may be incorrect and that I have to report on the US calendar year Jan-Dec. She said there *may* be an exception b/c I own 100% of the company but she's not sure.

Does anyone with experience of this know of such an exception?

If the second accountant is correct, this would be a HUGE mistake on the part of my previous accountant which will cost me dearly - it means I will have to pay my UK accountant to do my company accounts for the last 5 years from Jan-Dec.

I hope she's wrong!!

Offline discly

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Under Sec. 898 (https://www.law.cornell.edu/uscode/text/26/898), you would generally be required to prepare the Form 5471 on a calendar year basis.  There is an exception in proposed regulations, but it is unclear if you can rely on proposed regulations.  I would not worry about prior years.  I would just start doing it on a calendar year basis for 2017 and future years.

Offline londonbos

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Under Sec. 898 (https://www.law.cornell.edu/uscode/text/26/898), you would generally be required to prepare the Form 5471 on a calendar year basis.  There is an exception in proposed regulations, but it is unclear if you can rely on proposed regulations.  I would not worry about prior years.  I would just start doing it on a calendar year basis for 2017 and future years.

Thank you so much for this. I guess it's worth looking into the proposed regulations more. However, the accountant has said I would need to file an amemdment for the prior years since the reporting dates are incorrect. I would expect I can't just ignore that the wrong dates were reported can I?