Category: Articles

What is Form 5472, and Who Needs to File It? Form 5472 is an information return for 25% Foreign-Owned U.S. Corporations or Foreign Corporations engaged in a U.S. trade or business. Under sections 6038A and 6038C, Form 5472 is to be filed if there are reportable transactions between the reporting corporation and any foreign or domestic-related…

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It’s never an easy decision to close a company and abandon the dream you were building. Having to meet the final obligations to close cleanly and remove all potential liability is not a fun situation to be in. Tax Considerations When Dissolving a Corporation: Step 1: File All Delinquent Tax Returns The first thing to do when…

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When moving through the process of corporate dissolution or liquidation, you need to ensure all your bases are covered to avoid unwanted penalties. One of the most important bases for completing this task is filing IRS Formp 966. The following guide includes everything you need to know about for closing your company: Read on to learn about filing IRS…

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Introduction Did you know that the IRC Section 1202 exclusion for gain on qualified small business stock (QSBS) has been around for decades? The partial or total exclusion of gain is intended to encourage investors to invest in startups and small businesses despite the risks involved. If you meet all the requirements, QSBS can save…

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Before learning about how to navigate C-corp taxation, you must understand the definition of what a corporation is, and what exactly makes it a C-corp. What is a Corporation? A corporation is a legal business entity that is formed in accordance with state law by filing articles of incorporation with the secretary of state’s office in the…

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Certain U.S. persons use IRS Form 8858, Information Return of U.S. Persons With Respect to Foreign Disregarded Entities (FDEs) and Foreign Branches (FBs), to report ownership of a foreign disregarded entity and foreign branch while providing the IRS with financial information about the foreign companies. Each year, on the same day as the taxpayer’s annual income tax,…

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A well-structured chart of accounts is an indispensable tool for achieving financial clarity of a company’s financial condition and performance, which is crucial in making informed decisions that come with running a successful business. This simple guide aims to clarify the concept of the chart of accounts by exploring its importance, benefits, related tax implications,…

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Navigating the complex landscape of tax regulations and deadlines is crucial for small business owners to maintain compliance, avoid penalties, and optimize financial strategies. And determining all the complicated tax filing deadlines for 2024 for startups can feel like an impossible task! Whether your business operates as a sole proprietorship, partnership, Limited Liability Company (LLC),…

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To benefit from tax treaties between the United States and other foreign countries where you live or conduct business, fill out Form 8802, Application for United States Residency Certification. Claiming tax treaty benefits can significantly reduce your year-end tax bill. Some countries require proof of residency from the person requesting the benefits under these treaties.…

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Individuals who must file Form 5471 may also need to submit Schedule M. The IRS requires anyone who had a controlled foreign corporation during the tax year to report their transactions with the foreign entity.  Key Takeaways Who Has to File Schedule M? Form 5471 filers fall into five categories based on the taxpayer’s relationship…

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