US Tax Return Filing for Companies

Examples

Example 1:Treaty Position Disclosure
An Irish company sells clothing to US customers. All operations are done from Ireland and there are no employees or office in the US. Under the terms of the tax treaty between Ireland and the US, since there is no PE, the income is not subject to US tax. However, as a foreign corporation, the company is required to disclose this treaty position by filing Form 8833 with the IRS. Taxback.com looks after the preparation and filing of an annual FORM 8833 for this company.

Example 2: Protective Return
There are situations where the IRS may determine that a PE exists even if the foreign corporation has neither employees nor a physical location in the US. We encountered a recent example of this with a UK company which had a virtual office with a US address and phone number. The IRS said that the virtual office constituted a PE in the US.

In this case, had the company filed a Protective Treaty Based Return, it would have been able to claim deductions and offset some of its US-sourced revenues. A Protective Treaty Based Return is essentially a blank Form 1120F that reserves the right of the foreign corporation to claim deductions in case the IRS determines that a PE existed at any given point in the past.