Filing the Information Return of U.S. Persons with Respect to Certain Foreign Corporations can be a complex process.

The requirements apply to U.S. Citizens, U.S. Residents and the IRS defined “U.S. Persons” who hold as little as a 10% interest in the foreign corporation.

There are currently four applicable filer Categories. There are multiple schedules depending upon which category or categories apply to the taxpayer.

For certain category filers the foreign corporation’s Balance Sheet and Income Statement must be reported. The Balance Sheet must be translated to US dollars and the income statement must be stated in the functional (foreign) currency as well as in U.S. dollars.

There is a $10,000 failure to file on time for information required to be reported for each foreign corporation, for each annual accounting period for which the failure exists.