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If that foreign corporation operates in the US - and the shareholder provides services to that corporation - the compensation for services is generally reported as wages.
However based on specific circumstances - such services may be classified as provided by a self-employed contractor - and in this case - that would be self-employment income.
Distributions from the corporation that are NOT a compensation for services but made to shareholders out of corporate earnings are classified as dividends and reported as such on shareholder's US tax return.
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