Hi,
I'm a Canadian and US citizen living in Canada and I incorporated a company in Canada a few years ago. My company has only Canadian source of income, never US income. It doesn't have an establishment in the US.
Recently, I received a letter from IRS asking me to file 1120 for my company for the year ended 2010. I've never filed US tax for my company. I file US personal tax every year though.
So, my question is, do I need to file a 1120 or 1120F for my company?
Thanks for any input!
Does my company need to file 1120 or 1120F
Moderator: Mark T Serbinski CA CPA
It sounds like you are a US citizen with an interest in a "foreign" corporation. That means the corporation may need to file 1120-F. Someone else will have to advise whether you actually need to file or not. Keep in mind that Canada and the US have different methods of accounting (GAAP).
US citizens with interests in foreign corporations may be required to file Forms 926 (transfer of property to corp.) and 5471 (reporting your interest in corp.) If you are the sole shareholder, I believe your corporation is a "Controlled Foreign Corporation."
You are likely required to report your signing authority over your company's bank accounts on your personal Form TD F 90-22.1 (FBAR).
US citizens with interests in foreign corporations may be required to file Forms 926 (transfer of property to corp.) and 5471 (reporting your interest in corp.) If you are the sole shareholder, I believe your corporation is a "Controlled Foreign Corporation."
You are likely required to report your signing authority over your company's bank accounts on your personal Form TD F 90-22.1 (FBAR).