2023 K-1 Form 1065 Received LLC MEMBERS – FOREIGN PARTNERS – Do Not Ignore Form 8805
ITIN For Foreign Person with US Business LLC/LLP/S Corp
Individual with US Investment as Foreign Partner?
If you are a new partner or an investor in a USA-based entity and if you received a scheduled K-1 – Form 1065 with your share of profits reporting then you would need to file a US Nonresident Alien tax return.
Well, To file a US tax return it’s mandatory to have a valid US tax ID often referred to as ITIN or Individual Tax Identification Number.
Our key message to Foreign Partners is to watch out for Form 8805 on your scheduled K-1s PDFs received with your profits share reporting. Often from our experience, Federal tax withholding is done on your income distribution is at a flat 30% of the distribution and possibly you fall into to 10 % or 15%, or 20%, and if you do not apply for ITIN and file the tax return you will be missing out of you excess tax reclaim process.
Note: The tax return reclaim refund process can be done 3 years from the time the original tax return was due.
For more information on how to complete an ITIN application.
If you are a foreign person (i.e Non-US Citizen, nonresident outside of the USA and own a US LLC business as 100% owner or partner or LLC member in any capacity you would need an ITIN to file your USA tax return, claim tax treaty benefits, to complete Form W8BEN, to open an individual US Bank account.
Our team specializes in international expatriate U.S. personal tax return services. If you need assistance with ITIN Renewal/US 1040 filing for refund claim/FATCA Compliance work/FBAR FINCEN114 Filing, ITIN/ Form W7 Application/E.I.N./Form W8BENE or Certified Acceptance Agents [C.A.A.] services/1040NR U.S. tax filing for refund claim of excess 1042S / 8288A/ 8805/ W2/ 1099. We are happy to assist our clients in a timely, efficient, and cost-effective way.
