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Remote Seller in U.S.: Income Tax Nexus
Physical presence was previously the only consideration where income tax nexus is concerned. But this standard was largely replaced by an economic presence/factor presence nexus concept by many states. Just like the sales tax nexus, the income tax nexus better fits the expanding use of e-commerce. States using the economic presence/factor presence nexus standard can impose tax on qualified out-of-state companies, even if they do not have a physical presence in the state.
U.S. Tax Form 5472 Introduction
Form 5472, the full name is the Information Return of a 25% Foreign-Owned U.S. Corporation or a Foreign Corporation Engaged in a U.S. Trade and Business, is an information return (as opposed to a tax return). This article will briefly describe the types of reporting corporations, what the purpose of filing Form 5472 is;
U.S. Tax Form 1120-F Introduction
The 1120-F tax return, the full name is the U.S. Income Tax Return of a Foreign Corporation, is a U.S. income tax return. This article will briefly describe what the purpose of filing Form 1120-F is, who needs to file Form 1120-F; what information needs to be disclosed on Form 1120-F, Form 1120-F’s deadlines, and penalties situations.
U.S. Dividends Tax Issues of Foreign Shareholders
When a U.S. subsidiary pays dividends to its foreign company shareholders, it generally withholds 30% of the dividend income tax for the foreign company shareholders. The 30% tax on dividend income may be significantly lower when the foreign company 's shareholders’ country has a tax treaty provision with the U.S. In addition, foreign company shareholders are also required to report this dividend income to the IRS.
U.S. Corporations and Individuals Amended Tax Return Introduction
The IRS requires corporations and individuals to file annual tax returns with the correct information. When a corporation or individual discovers an error in a tax return filed, an amended tax return could be filed to correct the previous error information. This article will briefly describe under what circumstances corporations and individuals should consider amending their tax returns;
US Tax Return Form 1099 Guideline Note
The IRS 1099 Form is a collection of tax forms documenting different types of payments made by an individual or a business to individuals who are hired typically not in the capacity as employee. Payroll employees of a company will instead receive a W-2 form.
U.S. Corporations Accumulated Earnings Tax Introduction
The U.S. federal government levies an accumulated earnings tax on U.S. corporations when corporations’ accumulated earnings are deemed unreasonable and exceed normal levels. The tax policy encourages U.S. corporations to pay dividends to shareholders rather than retain corporations’ earnings.
U.S. Tax Form 5471 Issue
What is the purpose of the Form 5471?Who must file Form 5471?What information is required to be disclosed on Form 5471?Form 5471 is used by certain U.S. citizens and residents who are officers, directors, or shareholders in certain foreign corporations. The form and schedules are used to satisfy the reporting requirements of Sections 6038 and 6046, and the related regulations, as well as to report amounts related to Section 965.
American Opportunity Tax Credit Introduction
The American opportunity Tax Credit is a U.S. education tax credit. This tax credit can help eligible students pay for their education in higher education. The scope of higher education under this tax credit is the first four years of higher education after high school graduation. This article briefly describes the requirements for the tax credit, who needs to pay for qualified educational expenses, how to claim the tax credit, and how the tax credit is calculated.
U.S. IRS Penalty Letters Handling Introduction
When taxpayers fail to pay taxes owed or file tax returns on time, the IRS may impose penalties on them. In addition, when the tax returns fail to provide accurate information, the IRS may also impose penalties on taxpayers.When deciding to impose a penalty on the taxpayer, the IRS will mail a letter to the taxpayer to notify the penalty.