Category: Articles
-
Foreign Disregarded Entity Explained: A Must-Read for Business Owners
Whether you live abroad or want to expand your business into international markets, forming a company overseas can be an exciting endeavor. However, it can also come with extra tax requirements and complications. For many owners, establishing a foreign disregarded entity can help streamline the tax filing process. Although, it’s important to understand the implications…
-
Understanding IRS Form 1120-W: Estimated Tax for Corporations
Form 1120-W, “Estimated Tax for Corporations,” is a document specified by the Internal Revenue Service (IRS) that corporations use to calculate and make quarterly estimated tax payments throughout the tax year. While this form is not filed with the IRS, it is important for the company’s records. Key Takeaways What is the purpose of Form 1120-W? The…
-
IRS Form 1120-S Instructions: A Complete Guide to the S-Corp Income Tax Return
IRS Form 1120-S, officially called the “U.S. Income Tax Return for S-Corporation,” may sound like a mouthful, but it is an essential income tax form for many S-corporation entrepreneurs. This form is used to report annual income, losses, deductions, credits, and other transactions. S-Corps, business entities elected to be treated differently for tax purposes, are…
-
Why Maintaining Your Income Statement is Important
The income statement is a crucial tool for investors and analysts to assess a company’s financial performance and guide their investment decisions, as it provides detailed information about profitability over a specific period. For companies, it highlights areas for cost reduction and profit maximization. However, if not carefully managed, the income statement can be complex…
-
Form 8992: Global Intangible Low-Taxed Income Explained
The Tax Cuts and Jobs Act (TCJA) of 2017 significantly altered U.S. tax requirements for shareholders of foreign corporations. As a result, U.S. persons doing business internationally may need to file extra tax forms, meet new reporting obligations, and navigate added complexity during tax prep. One of the new requirements introduced by the TCJA is…
-
Form 5471 Schedule I-1: Information for Global Intangible Low-Taxed Income
When completing Form 5471, you may also need to submit Schedule I-1 to report income the controlled foreign corporation earned from intangible assets. The regulations surrounding global intangible low-taxed income (GILTI) can be confusing, so make sure you understand the requirements of this unique tax form. Form 5471 Schedule I-1: Key Takeaways Who needs to file Schedule…
-
Form 5471 Filing Instructions: What Is It, Tax Tips, and Who Needs to File
The Tax Cuts and Jobs Act (TCJA), signed into law in December 2017, made significant changes to the tax laws governing foreign corporate shareholders. The law prompted the creation of two new IRS tax forms, Form 8992 and Form 8993, as well as the revision of Form 5471. In this article, we will go over…
-
The Dos and Don’ts of Issuing Shareholder Dividends
The only thing that gives me pleasure is to see my dividend coming in.” –John D. Rockefeller. Dividends are a form of reward distributed to shareholders in return for their investment in a company’s equity. Dividends are typically derived from a company’s net profits. Profits can be retained within the company for ongoing and future…
-
A Complete Guide to Form 5471 Schedule H: Current Earnings and Profits
If you are a US citizen who owns or invests in foreign corporations, you may need to file Form 5471 with the IRS to report your investments. As part of Form 5471, you may also need to submit Schedule H to provide information on the earnings and profits from your overseas business. This guide will…
-
Navigating IRS Form 990: Tax Exempt but Not Filing Exempt
Annual reports of their operations to the Internal Revenue Service (IRS) are required, even for non-profit organizations exempt from federal income tax. Some tax-exempt organizations must use Form 990, Return of Organization Exempt From Income Tax, for annual reporting. Nonprofit organizations in the United States use Form 990 to provide the IRS with thorough financial and…