Is an informational return from US persons as it relates to certain foreign corporations. Those certain foreign corporations are called controlled foreign corporations, which means if more than 50% of the foreign entity is owned by US persons, the IRS wants to know information on that corporation. It doesn't mean that you're gonna have to pay taxes to the US. It doesn't necessarily mean. There are scenarios in which you may, it's simply an informational return. The IRS wants to know what your activity is with that foreign corporation because they don't have jurisdiction over it, and a foreign corporation can be a very effective tax planning tool. So the IRS wants to have that information on hand to make sure that they can do their own homework to see if you're abusing that structure. The type of information they're looking for, for the most part, is very basic. What you have to do is understand that there are different categories of filers. You're going to have to provide certain information if you're more than a 50% owner. You're gonna have to provide a little bit more detail if you're entering into transactions with that foreign corporation. You're not gonna have to provide as much detail if you're just an officer of that corporation or some other direct type of director. But the bottom line is the IRS wants to know about this foreign corporation. What do they want to know? They want to know ownership details, who the shareholders are, if they are US persons, they want their names and Social Security numbers. They want to know as much information as they can on the foreign jurisdiction, meaning the foreign tax ID, the type of entity it is, where it was registered, when it was incorporated or created. This...
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Video instructions and help with filling out and completing Form 1120 Schedule M 3 Abroad
