Tax

Have a tax question? Ask a tax Expert

Ask an Expert,
Get an Answer ASAP!

I'm ***** *****. I run a small business in the UK and we…

Customer Question
Hi, I'm ***** *****...

Hi, I'm ***** *****. I run a small business in the UK and we occasionally undertake legal support work for US organizations. We recently completed a W8-BEN-E form to be able to supply to clients when requested and obtained an EIN for the form by calling the number that's published in various places. We have now received the official confirmation letter for the EIN which is asking us to file form 1120F for the last four years. We don't have any business presence in the US other than the work we undertake on behalf of US clients and we do this from the UK. Does this seem right or has something gone awry with our process for getting the EIN? Never had to deal with US tax issues before so rather daunted!

Accountant's Assistant: Thanks. Can you give me any more details about your issue?

^^ :-)

Accountant's Assistant: OK got it. Last thing — JustAnswer charges a fee (generally around $32) to post your type of question to Tax Experts (you only pay if satisfied). There are a couple customers ahead of you. We can help you for less if you're not in a rush. Are you willing to wait a bit?

Yep, I'm heading to bed so happy to wait a few hours.

Submitted: 2 years ago.Category: Tax
Show More
Show Less
Ask Your Own Tax Question
Answered in 23 minutes by:
1/17/2016
Tax Professional: Lev, Tax Advisor replied 2 years ago
Lev
Lev, Tax Advisor
Category: Tax
Satisfied Customers: 32,859
Experience: Taxes, Immigration, Labor Relations
Verified

The issue that you might NOT need EIN in order to complete form W8-BEN-E.

However - generally if you have EIN as a foreign corporation the IRS might "think" you are doing business in the US or having income from US sources.

Ask Your Own Tax Question
Tax Professional: Lev, Tax Advisor replied 2 years ago

On the other hand - take a look - page 13 IRS publication 519 -

http://www.irs.gov/pub/irs-pdf/p519.pdf

- Table 2-1. Summary of Source Rules of Nonresident Aliens.As we see the factors in determination of the income source income
If your corporation is neither doing business in the US nor having income from US sources - filing is not required.

So you may simply reply to the IRS telling that your corporation is not required to file and actually did not file because - it is neither doing business in the US nor having income from US sources.

It is possible that some US payers reported to the IRS payments made to you... If so - we need to look into these issues separately.

Thus if you received any other reporting forms - let me know.

.
I appreciate if you take a moment to rate the answer.
Experts are ONLY credited when answers are rated positively.
If you still have any doubts, need clarification - please be sure to ask.
I am here to help you will all tax related issues.

Ask Your Own Tax Question
Was this answer helpful?
Ask Lev Your Own Question
Lev
Lev
Lev, Tax Advisor
Category: Tax
Satisfied Customers: 32,859
32,859 Satisfied Customers
Experience: Taxes, Immigration, Labor Relations

Lev 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

1,338 satisfied customers

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

Richard

Richard

Tax Attorney

4,495 satisfied customers

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

PhillipsEsq.

PhillipsEsq.

Attorney-at-Law

59 satisfied customers

B.A., M.B.A, J.D.

Robin D.

Robin D.

Senior Tax Advisor 4

15,272 satisfied customers

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

Megan C

Megan C

Certified Public Accountant (CPA)

8,655 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.

< Previous | Next >

Related Tax Questions
I want to ask a question about 2555 foreign income tax
Hello I want to ask a question about 2555 foreign income tax form.My situation is convenient for part III physical presence test.Should I fill anything for part II bona fide section or leave it empty?… read more
Carter McBride
Carter McBride
LLM
1,069 satisfied customers
I have foreign earned income that is being reported on one 7
Hello...I have foreign earned income that is being reported on one 7 within my tax return. I have been told by a mortgage lender that this income should be reported on line 21 and supported by Form 25… read more
Dr. Fiona Chen
Dr. Fiona Chen
President
Ph.D.
1,027 satisfied customers
Does a non-resident alien have to report interest income
Does a non-resident alien have to report interest income received from the IRS on a tax refund?… read more
Lev
Lev
Tax Advisor
32,859 satisfied customers
Capital gains tax on nonresident alien. A foreign trust owns
Capital gains tax on nonresident alien. A foreign trust owns 100% of shares of a US C corporation. C corporation is privately held (not publicly traded) and conducts business in the US. Then C corpora… read more
Lev
Lev
Tax Advisor
32,859 satisfied customers
Client had been a foreign student but then married a US
Client had been a foreign student but then married a US permanent resident but received a 1042-S. Because she is no longer a nonresident alien can we claim this income in another place on the 1040 and… read more
Lev
Lev
Tax Advisor
32,859 satisfied customers
Filing a NR Canadian income on a US Federal 1040. Which form
Filing a NR Canadian income on a US Federal 1040. Which form is used to report this foreign income? only Box 16 reports income with numeral code 46 in box 14 and in box 15 is CAD. … read more
Mike-USACPA
Mike-USACPA
9 satisfied customers
NR alien who was not in the US at all make 4k profit in a US
NR alien who was not in the US at all make 4k profit in a US partnership. It was self employed income, is she required to file a US tax return?… read more
Chad EA, CFP ®
Chad EA, CFP ®
IRS Enrolled Agent, CFP(R),
Master\u0027s Degree
2,232 satisfied customers
How to report foreign income on which Tax has been withheld
How to report foreign income on which Tax has been withheld in foreign country and tax return in the country is filed as per their rules. … read more
Robin D.
Robin D.
Senior Tax Advisor 4
Vocational, Technical or Trade School
15,272 satisfied customers
Does a nonresident alien student on a F-1 visa who was
Does a nonresident alien student on a F-1 visa who was issued a 1042-s with federal withholdings have to file a state tax return? They were attending school in NYC.… read more
Lev
Lev
Tax Advisor
32,859 satisfied customers
I have a question about 1099 form. I'm a nonresident alien
Hi Pearl, I have a question about 1099 form. I'm a nonresident alien and own a house and rent it to someone else. During this process I did not hire any agent or independent contractor, but I do have … read more
Marcia Mitrano
Marcia Mitrano
MBA
62 satisfied customers
Taxes Where doe do you report foreign source income from a
TaxesWhere doe do you report foreign source income from a 1099-div There are amounts in boxes 1a-6 that I already entered in Schedule B and the dividend income statement. I entered the Foreign tax pai… read more
Lev
Lev
Tax Advisor
32,859 satisfied customers
I know nonresident aliens cannot claim education credits,
I know nonresident aliens cannot claim education credits, however can I deduct MBA expenses as unreimbursed employee expense?… read more
Lev
Lev
Tax Advisor
32,859 satisfied customers
I am a us citizen and married a foreigner in a foreign
I am a us citizen and married a foreigner in a foreign country. How should I file taxes, married filing separate? … read more
Dr. Fiona Chen
Dr. Fiona Chen
President
Ph.D.
1,027 satisfied customers
Is there an estate tax for a non resident alien for money he
Is there an estate tax for a non resident alien for money he has in a US bank savings account when the descendant is also a non resident alien?… read more
Chad EA, CFP ®
Chad EA, CFP ®
IRS Enrolled Agent, CFP(R),
Master\u0027s Degree
2,232 satisfied customers
How do i handle foreign income? as far as reporting it,
how do i handle foreign income? as far as reporting it, paying estimated taxes, etc … read more
Robin D.
Robin D.
Senior Tax Advisor 4
Vocational, Technical or Trade School
15,272 satisfied customers
Are non resident aliens taxed at the same rates? Are there
Are non resident aliens taxed at the same rates? Are there certain credits/deductions NRAs cannot receive? I notice if I prepare a return both ways, the resident receives a larger refund.… read more
Chad EA, CFP ®
Chad EA, CFP ®
IRS Enrolled Agent, CFP(R),
Master\u0027s Degree
2,232 satisfied customers
What are the forms for reporting Rental Income to the IRS on
What are the forms for reporting Rental Income to the IRS on foreign properties - we collect each month? Is this filed separately from our personal returns?… read more
Chad EA, CFP ®
Chad EA, CFP ®
IRS Enrolled Agent, CFP(R),
Master\u0027s Degree
2,232 satisfied customers
I am currently a nonresident alien, but I anticipate that I
I am currently a nonresident alien, but I anticipate that I will be a resident alien for 2018, as I expect to be present in the US for the entire year. I am being asked my my employer to provide them … read more
Robin D.
Robin D.
Senior Tax Advisor 4
Vocational, Technical or Trade School
15,272 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