Hello
Guest

Sponsored Links


Topic: Director of LTD Company - US returns filed on year end or US calendar year??  (Read 268 times)

0 Members and 1 Guest are viewing this topic.

  • *
  • Posts: 33

  • Liked: 1
  • Joined: Jan 2015
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!!


  • *
  • Posts: 77

  • Liked: 2
  • Joined: Jan 2009
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.


  • *
  • Posts: 33

  • Liked: 1
  • Joined: Jan 2015
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?


Sponsored Links





 

coloured_drab