Thanks for your content Jason! Without ITINs and only having the EIN is it posible to do the e-file on the form 1065 with the FOREIGNUS placeholder you said? Will you do it electronically if we do it with you next year?
I would appreciate if you can clarify a doubt. The address of the LLC on the form is Bermuda, I thought they should write the address of the registered agent in the US. They must surely have a registered agent in Wyoming. I think I have been wrong when writing the address on the 1065 form of the registered agent in the US in order for the IRS to communicate and send their correspondence, in fact I have received letters and notifications at that address. And at the same time I have sent the 1065 form to the address indicated for those who are within the US and not to the address indicated for those who have their main office outside the US. It seems that I have been wrong, I would like to please if you can answer this question. Your videos have been extremely helpful.
Good afternoon, sir. I wanted to ask you something regarding this video, we have an LLC, and everything similar to the example is produced and managed outside the U.S., the owners are not residents, there is no nexus with the U.S. So, I wanted to know if in this case we should also fill out the K1 forms. Thank you very much for taking the time to answer this question. Thank you very much and God bless you, you do a very good job.
Hi Moises - as we outlined in the video, K1s should be completed for each partner of the LLC, regardless of whether the entity or partners are subject to taxes in the U.S.
Fantastic video Jason. So, let's say one of the non-resident partners in your example did want to file a US return (perhaps because they had some US source income.. etc.) how then on that partners1040NR return would the K-1 income be reported? Include and then zero out in other deductions? Would the K-1 income simply just not be reported? Would you add any footnote indicating as such?
Hey Jason, thank you for this wonderful video. I have 2 questions: 1. What if the Non-USTOB partnership is a member of an LLC that does fall into that criteria? For example, the LLC has real estate, but the owner is an LLC without real estate (the Non-USTOB partnership)? 2. Did you get to do that updated 2021 and onward updated form version? Thank you!!
Hello Jason. Thanks for your great video. We are three foreign citizens, members of a DELAWARE/LLC with EIN. We started the company on May 2021 and our LLC is not enganged in USTOB and ECI. We would like to know if we have to fill in with the form 1065 the new schedules K-2, K-3 and if there are any instructions. Thanks in advance!
Thanks for watching! Yes, you would definitely need to complete the relevant sections of Schedule K-2 and K-3. Particularly the sections regarding foreign source earnings and non-ECI. The K-2 and K-3 schedules aren't available yet for e-filing purposes until March 20, 2022 (according to the IRS), so if you need to file for 2021, I recommend extending the return. That is what I am doing for all of my clients in this position.
This video tutorial was filmed using the 2020 version of the Form 1065. The forms do change slightly each year, so always use the version of the form that corresponds to the tax year for the partnership.
@@JasonDKnott Got it! They changed the whole foreign section. Now schedule k-2 and k-3 are used instead. Thanks again for the video and for the prompt response.
Thank you for your video it was really helpful! So for this specific case you are commenting in the video (No USTOB, no CCI) what forms do we need to fill for 2023? Just 1065 and k-1? Anything else?. We don’t need to have any ITIN we are ok with just stating “FOREIGNUS”?. Is this still on track?. And the last one if we want to do it electronically for this specific case how can we do it?! In this case do we need the itin? Thank you!!!!!
Thank you Jason for the informative video. I am a Canadian. I have a couple of questions. 1. I bought a US stock in 2014 and sold it for a loss in 2016 under my non-taxable account. I received this Schedule K-1 (form 1065) under Foreignus (no TIN#) each year. On the form, it only has an interest income of about $100 and a net loss. Nothing else. Do I need to file Form 1065 with the U.S? 2. Starting in 2018, I do have to file the 1040NR for rental income. Or do I need to file the Schedule K-1 interest income under Schedule NEC? 3. Is there a penalty for not filing Form 1065? Your advice is greatly appreciated. Thank you in advance.
Hello Jason, Thank you for your valuable support. I have a question, I have a Client who is a LLC two member, both non resident aliens, live in Ecuador, the LLC have no US Source Income, but the thing is, They do not have a ITIN, how can I file a 1065 without a valid SS or ITIN?
There is no requirement for a nonresident partner to have a U.S. TIN. The TIN would be required if the nonresident partner needed to file a U.S. tax return to report their allocation of ECI and pay U.S. taxes. Form 1040-NR for an individual, or Form 1120-F for a foreign corporation. K-1s prepared for nonresident partners with no TIN can use FOREIGNUS as a placeholder.
It depends upon what type of interest income is received by the partnership. Most U.S. source interest income can qualify for the portfolio interest exemption, which means it can be paid to nonresidents without subjected to withholding taxes. If the U.S. source interest cannot qualify for the portfolio interest exemption, then it would be subject to withholding taxes by the partnership.
Please, I have question about the LLC address, in the form 1065: I do not know if it is correct to type the address of the Registered Agent (USA) or the Foreign Country (Does the IRS consider that address to be the office location in the US?, I never thought of that until now that I saw the example) And "Net short-term capital gain (loss) " (Schedule K form 1065), I understand that is not a ECI. but I need to confirm. Thanks for sharing your knowledge
The address listed on page 1 of the Form 1065 does not have to be the registered agent address or the physical address of the business. It should be the best address for the business to receive mail, because that is the address the IRS will use to send any correspondence. Many companies (both US and non-US) use a U.S. based mail forwarding address just for this purpose, because sometimes it is very difficult to receive U.S. mail in overseas locations.
Hello, thank you for your great video. We have a non-US partnership LLC (two member), but we couldn't find where to fill out the form 1065. Shall we print it out and mail it or send it as an e-mail? Can you help with this? I would really appreciate it if you could tell me specifically where to fill it out and send it.
Thanks for watching! You can download the forms from the IRS website. However, I highly recommend electronically filing the returns, which means you'll need to purchase tax return preparation software (such as TurboTax) or hire a tax professional to prepare and e-file the return. Paper filed returns are notorious for inaccuracies and they take significantly longer to process.
hello, in 2022 I created an LLC with 2 partners, but one partner left. We send an amendment to the State (NM) and sign an act for the abandonment of the partner. but the IRS asks me for the 1065. Wouldn't it be possible to deliver the 5472 and the 1120? we are foreigners and all business has been done outside of the US. thank you
Jason, what happens if I created my LLC multi member where I (non resident) own 99% and my friend just 1% (I know it's not usual, it was a favor lol but he is resident) June 2022. The LLC has not started doing business, no sales nothing just expenses like Google Workspace, monthly bank fees, cell phone bills, I plan to start selling soon in the coming months, how do I proceed with this 1065 Form and specially the K1's if I'm not a resident and the other member ir?
Sir, should Non US Residents Mail the forms or file them online using a tax software? If online, which tax filing software do you prefer? Please reply.
We always recommend electronically filing the forms with e-file eligible tax software. E-filing the tax return is more accurate and it provides the user an e-file confirmation from the IRS.
Jason, big question: I have a partnership LLC, created in 2021, however, during 2021 to 2022, i didn't make any money and forgot to fill the form 1065, later on for 2022 to 2023 I made less than 10k and now I need to fill the 1065. Big question is: What I can do with the last year that I failed to fill? And this one? i just fill up the form and thats it? Many thanks for the help
Excellent video In 2023 the form 1065 have had a important modification
Jason, thank you a lot for all your info.
Glad it was helpful!
Thanks Jason your videos are very helpful.
I am a US Tax Preparer, I want to work for you.
Thank you for your videos! Do you plan to make a video about the new K2 and K3 forms?
Thanks for your content Jason! Without ITINs and only having the EIN is it posible to do the e-file on the form 1065 with the FOREIGNUS placeholder you said? Will you do it electronically if we do it with you next year?
Yes, the IRS will accept an e-filed return with "FOREIGNUS" as the taxpayer ID on the K-1s for the foreign persons with no US TIN.
I would appreciate if you can clarify a doubt. The address of the LLC on the form is Bermuda, I thought they should write the address of the registered agent in the US. They must surely have a registered agent in Wyoming.
I think I have been wrong when writing the address on the 1065 form of the registered agent in the US in order for the IRS to communicate and send their correspondence, in fact I have received letters and notifications at that address. And at the same time I have sent the 1065 form to the address indicated for those who are within the US and not to the address indicated for those who have their main office outside the US. It seems that I have been wrong, I would like to please if you can answer this question.
Your videos have been extremely helpful.
Very Good
Thanks!
Good afternoon, sir.
I wanted to ask you something regarding this video, we have an LLC, and everything similar to the example is produced and managed outside the U.S., the owners are not residents, there is no nexus with the U.S. So, I wanted to know if in this case we should also fill out the K1 forms.
Thank you very much for taking the time to answer this question.
Thank you very much and God bless you, you do a very good job.
Hi Moises - as we outlined in the video, K1s should be completed for each partner of the LLC, regardless of whether the entity or partners are subject to taxes in the U.S.
Thanks!
Thank you for the support!
Fantastic video Jason. So, let's say one of the non-resident partners in your example did want to file a US return (perhaps because they had some US source income.. etc.) how then on that partners1040NR return would the K-1 income be reported? Include and then zero out in other deductions? Would the K-1 income simply just not be reported? Would you add any footnote indicating as such?
What is better for a non US resident person, a Dingle Member LLc or a multi member LLC? … advantages, disadvantages?
Hello Jason, great videos. Thank you for taking the time to prepare this valuable information. Where can I contact you to help me to review my taxes?
Thanks for watching! Yes, we would be happy to assist with your taxes. You can contact us at: info@knottpllc.com
Hey Jason, thank you for this wonderful video. I have 2 questions:
1. What if the Non-USTOB partnership is a member of an LLC that does fall into that criteria? For example, the LLC has real estate, but the owner is an LLC without real estate (the Non-USTOB partnership)?
2. Did you get to do that updated 2021 and onward updated form version?
Thank you!!
What should you fill out for K-1 SSN if the foreign partner does not have and will not be getting an ITIN?
In cases where the partner does not have a valid U.S. tax ID (SSN, ITIN, or EIN), you can enter FOREIGNUS for their tax ID number.
Hello Jason. Thanks for your great video. We are three foreign citizens, members of a DELAWARE/LLC with EIN. We started the company on May 2021 and our LLC is not enganged in USTOB and ECI. We would like to know if we have to fill in with the form 1065 the new schedules K-2, K-3 and if there are any instructions. Thanks in advance!
Thanks for watching! Yes, you would definitely need to complete the relevant sections of Schedule K-2 and K-3. Particularly the sections regarding foreign source earnings and non-ECI. The K-2 and K-3 schedules aren't available yet for e-filing purposes until March 20, 2022 (according to the IRS), so if you need to file for 2021, I recommend extending the return. That is what I am doing for all of my clients in this position.
@@JasonDKnott thank you very much for your prompt answer!
Thanks for the video. Did you use a 2021 1065? The format looks different.
This video tutorial was filmed using the 2020 version of the Form 1065. The forms do change slightly each year, so always use the version of the form that corresponds to the tax year for the partnership.
@@JasonDKnott Got it! They changed the whole foreign section. Now schedule k-2 and k-3 are used instead. Thanks again for the video and for the prompt response.
Thank you for your video it was really helpful! So for this specific case you are commenting in the video (No USTOB, no CCI) what forms do we need to fill for 2023? Just 1065 and k-1? Anything else?. We don’t need to have any ITIN we are ok with just stating “FOREIGNUS”?. Is this still on track?. And the last one if we want to do it electronically for this specific case how can we do it?! In this case do we need the itin? Thank you!!!!!
Thank you Jason for the informative video. I am a Canadian. I have a couple of questions.
1. I bought a US stock in 2014 and sold it for a loss in 2016 under my non-taxable account. I received this Schedule K-1 (form 1065) under Foreignus (no TIN#) each year. On the form, it only has an interest income of about $100 and a net loss. Nothing else. Do I need to file Form 1065 with the U.S?
2. Starting in 2018, I do have to file the 1040NR for rental income. Or do I need to file the Schedule K-1 interest income under Schedule NEC?
3. Is there a penalty for not filing Form 1065?
Your advice is greatly appreciated. Thank you in advance.
Hello Jason, Thank you for your valuable support. I have a question, I have a Client who is a LLC two member, both non resident aliens, live in Ecuador, the LLC have no US Source Income, but the thing is, They do not have a ITIN, how can I file a 1065 without a valid SS or ITIN?
There is no requirement for a nonresident partner to have a U.S. TIN. The TIN would be required if the nonresident partner needed to file a U.S. tax return to report their allocation of ECI and pay U.S. taxes. Form 1040-NR for an individual, or Form 1120-F for a foreign corporation. K-1s prepared for nonresident partners with no TIN can use FOREIGNUS as a placeholder.
Great video. Since the LLC has $10 US-sourced interest, the LLC is required to withhold some of it on behalf of its foreign members, correct?
It depends upon what type of interest income is received by the partnership. Most U.S. source interest income can qualify for the portfolio interest exemption, which means it can be paid to nonresidents without subjected to withholding taxes. If the U.S. source interest cannot qualify for the portfolio interest exemption, then it would be subject to withholding taxes by the partnership.
@@JasonDKnott Thank you!
Please, I have question about the LLC address, in the form 1065: I do not know if it is correct to type the address of the Registered Agent (USA) or the Foreign Country (Does the IRS consider that address to be the office location in the US?, I never thought of that until now that I saw the example)
And "Net short-term capital gain (loss) " (Schedule K form 1065), I understand that is not a ECI. but I need to confirm.
Thanks for sharing your knowledge
Forget to mention , OWNED non resident alien for US tax purposes.
The address listed on page 1 of the Form 1065 does not have to be the registered agent address or the physical address of the business. It should be the best address for the business to receive mail, because that is the address the IRS will use to send any correspondence. Many companies (both US and non-US) use a U.S. based mail forwarding address just for this purpose, because sometimes it is very difficult to receive U.S. mail in overseas locations.
Hello, thank you for your great video. We have a non-US partnership LLC (two member), but we couldn't find where to fill out the form 1065. Shall we print it out and mail it or send it as an e-mail? Can you help with this? I would really appreciate it if you could tell me specifically where to fill it out and send it.
Thanks for watching! You can download the forms from the IRS website. However, I highly recommend electronically filing the returns, which means you'll need to purchase tax return preparation software (such as TurboTax) or hire a tax professional to prepare and e-file the return. Paper filed returns are notorious for inaccuracies and they take significantly longer to process.
hello, in 2022 I created an LLC with 2 partners, but one partner left. We send an amendment to the State (NM) and sign an act for the abandonment of the partner. but the IRS asks me for the 1065. Wouldn't it be possible to deliver the 5472 and the 1120? we are foreigners and all business has been done outside of the US. thank you
Jason, what happens if I created my LLC multi member where I (non resident) own 99% and my friend just 1% (I know it's not usual, it was a favor lol but he is resident) June 2022. The LLC has not started doing business, no sales nothing just expenses like Google Workspace, monthly bank fees, cell phone bills, I plan to start selling soon in the coming months, how do I proceed with this 1065 Form and specially the K1's if I'm not a resident and the other member ir?
Are these 1065 forms ever Audited?
Sir, should Non US Residents Mail the forms or file them online using a tax software? If online, which tax filing software do you prefer? Please reply.
We always recommend electronically filing the forms with e-file eligible tax software. E-filing the tax return is more accurate and it provides the user an e-file confirmation from the IRS.
Jason, big question: I have a partnership LLC, created in 2021, however, during 2021 to 2022, i didn't make any money and forgot to fill the form 1065, later on for 2022 to 2023 I made less than 10k and now I need to fill the 1065. Big question is: What I can do with the last year that I failed to fill? And this one? i just fill up the form and thats it? Many thanks for the help
There is a fine for late filing..$2,400 a yr for each partner
What's mean by domestic partnership?
Domestic means it was a partnership organized or created in the U.S. The definition is found in IRC Section 7701(a)(4)
@@JasonDKnott Thanks for your reply sir,