Tax

Have a Tax Question? Ask a Tax Expert

Ask an Expert,
Get an Answer ASAP!

Tax
This answer was rated:

Have a us INDIVIDUAL who owns 50% of a foreign company. First

year he files as a...
Have a us INDIVIDUAL who owns 50% of a foreign company. First year he files as a category 2 and 3 filer. If nothing changes in subsequent years does he still have to file as a category 3 filer or can he just complete cat 2 sections?
Show More
Show Less
Ask Your Own Tax Question
Answered in 8 minutes by:
7/2/2013
Lane
Lane, JD, CFP, MBA, CRPS
Category: Tax
Satisfied Customers: 13,272
Experience: Law Degree, specialization in Tax Law and Corporate Law, CFP and MBA, Providing Financial & Tax advice since 1986
Verified

NPVAdvisor :

That is correct

NPVAdvisor :

Oly cat 2 is needed unless...

NPVAdvisor :

(only) ... nless...

NPVAdvisor :

acquires stock in a foreign corporation ...

NPVAdvisor :

acquires stock which, without regard to stock already owned on the date of acquisition, meets the 10% stock ownership requirement with respect to the foreign corporation .....

NPVAdvisor :

becomes a U.S. person while meeting the 10% stock ownership requirement with respect to the foreign corporation; or

NPVAdvisor :

disposes of sufficient stock in the foreign corporation to reduce his or her interest to less than the stock ownership requirement.

NPVAdvisor :

Otherwise, only insurance company stock ownership creates the need to re-file under 3

NPVAdvisor :

said differently, unless the company is an insurance company, something must change for cat 3 seciotn to be required

Lane
Lane, JD, CFP, MBA, CRPS
Category: Tax
Satisfied Customers: 13,272
Experience: Law Degree, specialization in Tax Law and Corporate Law, CFP and MBA, Providing Financial & Tax advice since 1986
Verified
Lane and 87 other Tax Specialists are ready to help you
Ask your own question now

Thanks for the rating

As a follow-up, here's the IRS guidance.

http://www.justanswer.com/tax/7umu6-us-individual-owns-50-foreign-company-first.html


P { margin-bottom: 0.08in; }A:link { }

If you'd like to work with ME again just say "For Lane only," at the beginning of your next question.


Thanks again,

Lane
Ask Your Own Tax Question
Ask Lane Your Own Question
Lane
Lane
Lane, JD, CFP, MBA, CRPS
Category: Tax
Satisfied Customers: 13,272
13,272 Satisfied Customers
Experience: Law Degree, specialization in Tax Law and Corporate Law, CFP and MBA, Providing Financial & Tax advice since 1986

Lane is online now

A new question is answered every 9 seconds

How JustAnswer works:

  • Ask an ExpertExperts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional AnswerVia email, text message, or notification as you wait on our site. Ask follow up questions if you need to.
  • 100% Satisfaction GuaranteeRate the answer you receive.

JustAnswer in the News:

Ask-a-doc Web sites: If you've got a quick question, you can try to get an answer from sites that say they have various specialists on hand to give quick answers... Justanswer.com.
JustAnswer.com...has seen a spike since October in legal questions from readers about layoffs, unemployment and severance.
Web sites like justanswer.com/legal
...leave nothing to chance.
Traffic on JustAnswer rose 14 percent...and had nearly 400,000 page views in 30 days...inquiries related to stress, high blood pressure, drinking and heart pain jumped 33 percent.
Tory Johnson, GMA Workplace Contributor, discusses work-from-home jobs, such as JustAnswer in which verified Experts answer people’s questions.
I will tell you that...the things you have to go through to be an Expert are quite rigorous.

What Customers are Saying:

I really was impressed with the prompt response. Your expert was not only a tax expert, but a people expert!!! Her genuine and caring attitude came across in her response...

T.G.WMatteson, IL

I WON!!! I just wanted you to know that your original answer gave me the courage and confidence to go into yesterday's audit ready to fight.

BonnieChesnee, SC

Great service. Answered my complex tax question in detail and provided a lot of additional useful information for my specific situation.

JohnMinneapolis, MN

Excellent information, very quick reply. The experts really take the time to address your questions, it is well worth the fee, for the peace of mind they can provide you with.

OrvilleHesperia, California

Wonderful service, prompt, efficient, and accurate. Couldn't have asked for more. I cannot thank you enough for your help.

Mary C.Freshfield, Liverpool, UK

This expert is wonderful. They truly know what they are talking about, and they actually care about you. They really helped put my nerves at ease. Thank you so much!!!!

AlexLos Angeles, CA

Thank you for all your help. It is nice to know that this service is here for people like myself, who need answers fast and are not sure who to consult.

GPHesperia, CA

< Previous | Next >

Meet the Experts:

Wallstreet Esq.

Wallstreet Esq.

Tax Attorney

586 satisfied customers

10 years experience

Mark D

Mark D

Enrolled Agent

1,300 satisfied customers

MBA, EA, Specializing in Business and Individual Tax Returns and Issues

Richard

Richard

Tax Attorney

4,338 satisfied customers

29 years of experience as a tax, real estate, and business attorney.

Robin D.

Robin D.

Senior Tax Advisor 4

13,980 satisfied customers

15years with H & R Block. Divisional leader, Instructor

Megan C

Megan C

Certified Public Accountant (CPA)

8,651 satisfied customers

Licensed CPA, CFE, CMA, CGMA who teaches accounting courses at Master's Level

jgordosea

jgordosea

Enrolled Agent

2,885 satisfied customers

I've prepared all types of taxes since 1987.

R. Klein, EA

R. Klein, EA

Enrolled Agent

1,839 satisfied customers

Over 20 Years experience

< Previous | Next >

Related Tax Questions
If I have a US business and hire a foreign company (in
If I have a US business and hire a foreign company (in India) to do consultant work for me, what forms do I need? Would they need to have a W9 or US tax ID number?… read more
LEV
LEV
Retired
Bachelor's Degree
14,896 satisfied customers
I paid the irs about 99,000 in back taxes and interest in
I paid the irs about 99,000 in back taxes and interest in May,2017, can I apply to get the interest back since I refinanced my home and have no savings,im 74 years old and work . … read more
Dr. Fiona Chen
Dr. Fiona Chen
President
Ph.D.
513 satisfied customers
Taxmanrog: Must a foreign individual owned single-member LLC
Customer Must a foreign individual owned single-member LLC (formed several years ago before 2017) file Form 5472 under the new tax law effective 1/1/2017?… read more
taxmanrog
taxmanrog
Master\u0027s Degree
776 satisfied customers
In streamlined domestic offshore procedure, if the foreign
In streamlined domestic offshore procedure, if the foreign stock's year end value can be deducted due to the capital of the stock is loan from other? … read more
Mark Taylor
Mark Taylor
Certified Public Accountant
Masters
2,282 satisfied customers
I am a foreigner looking to invest in the us an potentially
I am a foreigner looking to invest in the us an potentially move to the us. most investment will be in real estate what is the structure that will minimize the taxes. If I moved to the us I will not n… read more
Mark Taylor
Mark Taylor
Certified Public Accountant
Masters
2,282 satisfied customers
I plan to declare some foreign interest and dividends
I plan to declare some foreign interest and dividends totaling about 3000 pounds in each of the last 3 years, on some of which i suffered withholding tax at source. I have not been submitting an annua… read more
taxmanrog
taxmanrog
Master\u0027s Degree
776 satisfied customers
My client is a foreign corp in Slovakia with no PE in the US
My client is a foreign corp in Slovakia with no PE in the US and does not want a US subsidiary but would like to hire 2 US persons - what is the best way to do that? … read more
Robin D.
Robin D.
Senior Tax Advisor 4
Vocational, Technical or Trade School
13,980 satisfied customers
On october 30th I mailed form dt individual to the IRS in
on october 30th I mailed form dt individual to the IRS in Connecticut Certified mail showed it had been delivered on Nov 2 I have heard nothing … read more
Lane
Lane
JD, CFP, MBA, CRPS
13,272 satisfied customers
Does a foreign insurance company qualify as PFIC? I (US
Does a foreign insurance company qualify as PFIC? I (US person) have shares of a foreign captive insurance company. As pretty much any insurance company, this company holds most of its assets in vario… read more
Lane
Lane
JD, CFP, MBA, CRPS
13,272 satisfied customers
A foreign individual is a member of a US LLC. Are there any
A foreign individual is a member of a US LLC. Are there any extra requirements for filing when it comes to the partnership return?… read more
Barbara
Barbara
Enrolled Agent, Paralegal
3,804 satisfied customers
Can my LLC with US and Foreign members be a shareholder in
Can my LLC with US and Foreign members be a shareholder in an S Corporation? The K-1 would go to the LLC.… read more
Robin D.
Robin D.
Senior Tax Advisor 4
Vocational, Technical or Trade School
13,980 satisfied customers
Foreign Entity doing business with US company may be subject
Hi Foreign Entity doing business with US company may be subject to 30% withholding tax by IRS. The foreign entity is registered in Monaco where there is no tax treaty with USA. How can I avoid or recl… read more
Robin D.
Robin D.
Senior Tax Advisor 4
Vocational, Technical or Trade School
13,980 satisfied customers
My wife is a foreign national who is a legal US resident
My wife is a foreign national who is a legal US resident (not US citizen). For medical school, her family gave her a no-interest loan valued at >$100,000 USD. We plan to pay them back in their curr… read more
abci168
abci168
Principal
27 satisfied customers
I (US person) own 50% in a foreign partnership (real estate
I (US person) own 50% in a foreign partnership (real estate partnership under civil law (GbR) in Germany), the other 50% are held by a none US person. - I have rental income from the foreign partnersh… read more
taxmanrog
taxmanrog
Master\u0027s Degree
776 satisfied customers
Client (US resident) with foreign salary and taxes paid in
Client (US resident) with foreign salary and taxes paid in foreign currency - Part II of 1116 form for some reason adds taxes paid only in US $ (line "o" through "r") - it does not take taxes paid in … read more
LEV
LEV
Retired
Bachelor's Degree
14,896 satisfied customers
US citizen owns foreign corporation. Under his VISA, he is
US citizen owns foreign corporation. Under his VISA, he is required to compensate himself a certain amount each year. His foreign corporation did not make enough money to meet the required level of co… read more
Robin D.
Robin D.
Senior Tax Advisor 4
Vocational, Technical or Trade School
13,980 satisfied customers
I am a US resident living in the US employed by a foreign
I am a US resident living in the US employed by a foreign employer that does not have a US entity. I am an employee, and mostly performed services abroad. My employer does not do US payroll withholdin… read more
Barbara
Barbara
Enrolled Agent, Paralegal
3,804 satisfied customers
A foreign individual working under OPT status for a hospital
A foreign individual working under OPT status for a hospital as an independent contractor. I understand the hospital does not withhold FICA and Medicare, but what about income tax? The individual is n… read more
Lane
Lane
JD, CFP, MBA, CRPS
13,272 satisfied customers
Disclaimer: Information in questions, answers, and other posts on this site ("Posts") comes from individual users, not JustAnswer; JustAnswer is not responsible for Posts. Posts are for general information, are not intended to substitute for informed professional advice (medical, legal, veterinary, financial, etc.), or to establish a professional-client relationship. The site and services are provided "as is" with no warranty or representations by JustAnswer regarding the qualifications of Experts. To see what credentials have been verified by a third-party service, please click on the "Verified" symbol in some Experts' profiles. JustAnswer is not intended or designed for EMERGENCY questions which should be directed immediately by telephone or in-person to qualified professionals.

Disclaimer: Information in questions, answers, and other posts on this site ("Posts") comes from individual users, not JustAnswer; JustAnswer is not responsible for Posts. Posts are for general information, are not intended to substitute for informed professional advice (medical, legal, veterinary, financial, etc.), or to establish a professional-client relationship. The site and services are provided "as is" with no warranty or representations by JustAnswer regarding the qualifications of Experts. To see what credentials have been verified by a third-party service, please click on the "Verified" symbol in some Experts' profiles. JustAnswer is not intended or designed for EMERGENCY questions which should be directed immediately by telephone or in-person to qualified professionals.

Show MoreShow Less

Ask Your Question

x