USA Foreign Entity With US Income - Reporting Requirement

[ogcpafirm]

I've been researching this all day and can't seem to get a concrete answer. I have a client (UK LLP) that received a K-1 from US LP and a US LLC. This is the first year they have a filing requirement. What form does the client need to file in the US? I'm seeing evidence of Form 1120F but nothing concrete. Any direction would be much appreciated.

 

[David Bolenbaugh CPA]

A foreign (non-US) partnership may need to file Form 1065 if they have income effectively connected with a trade or business in the US. An 1120F would be filed by a foreign corporation. In addition, the US LP and LLC may need to file Form 8865 with their US filed income tax returns.

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