Author: Randall Brody, Enrolled Agent | Licensed by the U.S. Department of the Treasury | Last Reviewed: July 2026
Key Takeaways
- US citizens and green card holders who own or control a foreign business must file IRS information returns — regardless of where they live or whether the business made money.
- The required form depends on how the entity is classified and how much of it you own: Form 5471, 8865, 8858, 5472, or 926.
- Owning a controlled foreign corporation can also trigger GILTI (Form 8992) and Subpart F income, which are taxed currently even if nothing is distributed to you.
- Foreign mutual funds and pooled investments are usually PFICs, reported on Form 8621, with a QEF election often changing the outcome.
- These are information returns with steep penalties that apply even when no tax is owed — and non-filing can hold the statute of limitations open on your entire return.
- Tax Samaritan’s enrolled agents determine which forms apply, prepare them, and represent you before the IRS if prior years are missing.
What Is Foreign Business Reporting?
Foreign business reporting is the set of IRS information returns you must file when you own or control a business entity outside the United States. Tax Samaritan prepares these filings for US citizens and green card holders living abroad — Form 5471, Form 8865, Form 8858, Form 8621, Form 8992, Form 926, and Form 5472 — along with the Subpart F and controlled foreign corporation analysis that determines what you owe.
Two things surprise most expat business owners. First, these obligations are triggered by ownership and control, not by profit: a dormant foreign company with no income can still require a filing. Second, they are information returns, which means the penalty for not filing is assessed even when you owe no tax at all. That combination is why foreign business reporting produces some of the most expensive surprises in expat taxation — and why it is worth getting right from the first year.
Who Needs Foreign Business Reporting?
If you are unsure whether your entity triggers a filing, that determination is itself part of the engagement — misclassifying the entity is the most common root cause of a missed form.
Which Foreign Business Forms Do You Need to File?
The correct form depends on how your entity is classified for US tax purposes and the size of your ownership stake. The summary below covers every filing Tax Samaritan handles; each links to our detailed guide on that form.
|
Form |
Applies When |
Detailed Guide |
|---|---|---|
|
Form 5471 |
You own or control a foreign corporation |
|
|
Form 8865 |
You hold an interest in a foreign partnership |
|
|
Form 8858 |
You own a foreign disregarded entity or foreign branch |
|
|
Form 8621 |
You hold a PFIC — typically a foreign mutual fund or pooled investment |
|
|
Form 8992 |
Your controlled foreign corporation generates GILTI |
|
|
Form 926 |
You transferred property to a foreign corporation |
|
|
Form 5472 |
A foreign person owns 25% or more of your US corporation or US-based LLC |
|
|
Subpart F / CFC |
Your foreign corporation earns certain passive or related-party income |
Form 5471 — Foreign Corporations
If you are an officer, director, or shareholder of a foreign corporation, Form 5471 is usually the central filing. Which schedules you complete depends on your filer category, and the form is required whether or not the company distributed anything to you. Our Form 5471 guide walks through the categories in detail.
Form 8865 — Foreign Partnerships
Interests in a foreign partnership are reported on Form 8865. Many expats hold these through joint ventures or local operating businesses without realizing the entity is a partnership for US purposes.
Form 8858 — Foreign Disregarded Entities and Branches
A foreign single-member LLC or equivalent local entity is often treated as disregarded for US tax purposes and reported on Form 8858. This is one of the most commonly missed filings among expat consultants and solo business owners.
Form 8621 — PFICs and the QEF Election
Foreign mutual funds, ETFs, and many pooled investment products are passive foreign investment companies. PFIC reporting on Form 8621 carries its own punitive default tax regime, and a QEF election made in time can substantially change the outcome. See our PFIC guide and our QEF election guide.
Form 8992 — GILTI
GILTI applies to income earned through a controlled foreign corporation and reaches ordinary small business owners abroad, not just multinationals. It is calculated on Form 8992, and available elections and credits can reduce or eliminate the liability when claimed correctly.
Form 926 — Transfers of Property to a Foreign Corporation
Contributing cash or property to your foreign corporation — including at formation or during a capital injection — can trigger Form 926 reporting for the year of the transfer.
Form 5472 — Foreign-Owned US Entities
Form 5472 runs the other direction: it applies when a foreign person owns 25% or more of a US corporation or a US-based LLC. Expats who keep a US entity after moving abroad, or who bring in a non-US partner, frequently fall into this requirement.
Subpart F Income and Controlled Foreign Corporations
If your foreign corporation is a CFC, certain categories of income are taxed to you currently, even when nothing is distributed. Determining CFC status and identifying Subpart F income is the analysis that drives the rest of the reporting — see our Subpart F and CFC guide.
Penalties for Not Filing Foreign Business Forms
These are information returns, and the penalty regime reflects it. Failing to file a required form such as Form 5471 or Form 8865 triggers a penalty per form, per year, that can increase if the failure continues after the IRS issues notice — and it applies whether or not you owed any tax. Missing forms can also keep the statute of limitations open on your entire tax return, leaving years exposed that would otherwise have closed.
The practical takeaway: an unfiled information return is a larger risk than an unpaid balance. Relief is frequently available — through reasonable cause, the delinquent international information return procedures, or the streamlined filing compliance procedures — but it depends on approaching the IRS correctly and before the IRS approaches you.
How Tax Samaritan Handles Foreign Business Reporting
- Entity review and classification. We determine how each foreign entity is treated for US tax purposes and which category of filer you are.
- Filing requirement mapping. We identify every form triggered for the year — 5471, 8865, 8858, 8621, 8992, 926, or 5472 — plus any Subpart F or GILTI analysis.
- Preparation and integration. We prepare the return information and integrate it with your Form 1040, foreign tax credits, and FBAR/FATCA reporting so the filings are consistent.
- Prior-year catch-up where needed. If forms were missed, we determine the appropriate compliance path and prepare the submission.
- Ongoing planning. We flag elections and structural decisions that can reduce next year’s U.S. tax exposure and provide proactive guidance through our expat tax planning services before the year closes.
Frequently Asked Questions
Get Your Foreign Business Filings Handled Correctly
Randall Brody is an Enrolled Agent licensed by the U.S. Department of the Treasury. Tax Samaritan prepares foreign entity filings for Americans in more than 193 countries — and handles prior-year catch-up when forms have been missed.
Start with a free consultation. Tell us about your foreign business and we’ll tell you exactly which forms apply.
Learn who Tax Samaritan works with.
What Our Expat Clients Are Saying
Ravi C
indiana, usa
As a recent immigrant with foreign assets and a foreign business, I needed specialized tax expertise. Randall and the Tax Samaritan team were knowledgeable, professional, and prepared my taxes accurately and on time. They took away much of the stress and worry, and I was very satisfied with their service.
Evan L
aurland, norway
As a US expat and foreign business owner, I needed a CPA who understood complex expat tax requirements. Randall Brody was the perfect choice. He is knowledgeable, patient, and easy to work with, always taking the time to explain things clearly. His expertise has made tax preparation far less stressful, and I continue to use his services.
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