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MequonCPA
MequonCPA, Certified Public Accountant (CPA)
Category: Tax
Satisfied Customers: 2342
Experience:  CPA, Over 30 yrs experience w/individuals and small businesses. Masters in Tax.
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I have a U.S. LLC that is owned by a foreign trust. The trust

Customer Question

I have a U.S. LLC that is owned by a foreign trust. The trust is also owned by foreigners. What form of tax filing is necessary for the LLC?
thanks
Submitted: 7 years ago.
Category: Tax
Expert:  MequonCPA replied 7 years ago.

DearCustomer-

 

In addition to the Form 1065, if the LLC is profitable, the entity may need to file Forms 1042, 1042-S and 1042T.

 

I have provided a link to the IRS web site where you can review these forms and instructions.

 

http://www.irs.gov/app/picklist/list/formsInstructions.html?value=1042&criteria=formNumber

 

If there are transaction regarding real estate, Form 8288, 8288-A and 8288-B may be required.

 

Customer: replied 7 years ago.
How can a single member LLC file a 1065? Doesn't seem correct. The 1042 is only is there is a distribution which isn't my case.
Expert:  MequonCPA replied 7 years ago.

DearCustomer-

 

A single member LLC is considered to be a disregarded entity. In the case of a foreign trust, instead of filing a Form 1041, a Form 1040-NR is filed if the trust has US filing requirements. See item 4 on page 3 of the instructions under "Who Must File". (Link below)

 

Instructions: http://www.irs.gov/pub/irs-pdf/i1040nr.pdf

Form: http://www.irs.gov/pub/irs-pdf/f1040nr.pdf

 

Additionally, the 1042 series of forms may be required.

Customer: replied 7 years ago.
This is a foreign trust not under the jurisdication of the USA. Now what?
Expert:  MequonCPA replied 7 years ago.
Customer-

 

If the LLC income is US based, the trust will be required to file a 1040-NR. Additionally, payments may be required to cover tax/withholding on that income where the Form 1042 may need to be filed.