04/12/2025
Please ensure we do not miss filing extensions for clients with the following foreign reporting requirements or special filing circumstances. These cases often have separate extension rules or forms, and missing deadlines can trigger significant penalties (up to $25000).
Outbound Transaction:
🔹 U.S. Individuals with ≥50% Ownership (or ≥10% in some cases) in Foreign Corporations
File Form 5471 (Controlled Foreign Corporation or CFC rules).
Triggered under Subpart F and GILTI provisions.
Extension: file Form 4868 – extension for personal return will take care and no separate extension is required.
🔹 U.S. Corporation / Partnership with ≥50% Ownership (or ≥10% in some cases) in Foreign Corporations
File Form 5471 (Controlled Foreign Corporation or CFC rules).
Triggered under Subpart F and GILTI provisions.
Extension: file Form 7004 – extension for entity return will take care and no separate extension is required.
Inbound Transaction:
🔹 U.S. (Multi-Member) LLC with Foreign Partner (Individual or Entity)
File Form 1065, plus Forms 8804, 8805, and 8813 for withholding obligations (FDAP income).
Extension: File separate Form 7004 for the Form 1065 and Forms 8804/8805.
🔹 Single-Member LLC (Disregarded Entity) with Foreign “Individual” Owner
Must file Form 5472 attached to pro forma Form 1120 (even if no income).
The foreign owner must also file Form 1040-NR if they have U.S.-source income.
Extension: File separate Form 7004 for the Form 1120 and Form 4868 for 1040-NR if needed.
🔹 Single-Member LLC with Foreign “Entity” Owner
File Form 5472 attached to pro forma Form 1120.
Also file Form 1120-F if the foreign entity has U.S. ECI (effectively connected income).
Extension: File separate Form 7004 for both 1120 and 1120-F may be required depending on activity.
🔹 U.S. Corporation with >25% Foreign Partner (Individual or Entity)
File Form 1120, plus Form 5472.
Extension: Single Form 7004 for Form 1120 & Form 5472.
đź“… Due Date to File Extension (Form 7004) for 1065 or 8804/8805:
March 15 (for calendar-year partnerships)
Or the 15th day of the 3rd month after the end of the partnership’s tax year
đź“… Due Date to File Extension Form 7004 for 1120 or Form 4868 for 1040:
April 15 (for calendar-year corporation)
Or the 15th day of the 4th month after the end of the corporation’s tax year
Recommendation:
We highly recommend that you create a separate spreadsheet for all entities / persons with inbound to outbound holdings and revisit it before deadline (Extension / filing) along with above email to make sure every client is compliant.
Feel free to call if you have any questions.
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