Foreign Corporate Profit

[Corduroy Frog]

Snurdface is shareholder in British Drilling Partners, LTD. This is a British Limited Partnership. The partnership has all manner of types of income - operations, capital gains, interest, etc.

As far as I know, British Drilling Partners, LTD is not beholden to file US tax returns, such as a 1065, K-1s, etc.

Notwithstanding, should Snurdface show his share of income under the various types of income even without a K-1??

[erchess]

My Two Cents

A lot of the reporting issue depends on how he acquired the interest in the Partnership. If it is a publicly traded partnership on any US exchange, then they are required to file with IRS.

Regardless of what they file, I believe that he needs to report and pay taxes on this income as if they had given him a proper K-1. I suppose he could also get by with just sticking the net income on line 21 but that might overtax him.

[joanmcq]

And then there is the requirement to file the 8865, 8868, and/or 8898 depending on his percentage of the ownership, value of the shares.

And the penalties if the income isn't reported...

[Snaggletooth]

How Long?

Joan, how long have these requirements been around?

I knew one of them has been added effective in 2011, not sure of the rest.

Thanks.