If you own a U.S. business and have foreign income, assets, or bank accounts, you have additional reporting requirements beyond your standard business tax return.

CRITICAL COMPLIANCE OBLIGATIONS

FBAR (FinCEN Form 114) – If you have foreign financial accounts totaling over $10,000 at any point during the year, you must file an FBAR. This includes bank accounts, investment accounts, and retirement accounts held abroad. Failure to file carries penalties up to $100,000+ per violation.

FATCA (Form 8938) – If you have specified foreign financial assets exceeding certain thresholds (typically $200,000+), you must file Form 8938 with your tax return. This reports foreign stocks, bonds, mutual funds, and other investments.

Foreign Earned Income Exclusion (Form 2555) – If you work abroad and meet physical presence tests, you may exclude up to $132,900 of foreign earned income from U.S. taxation. If both spouses qualify separately, each may claim their own exclusion, allowing a combined maximum of $265,800 on separate Form 2555 filings.

Foreign Tax Credit (Form 1118) – If you paid taxes to another country on your business income, you may claim a credit to avoid double taxation.

CFC & NCTI Rules – If you own a foreign corporation or have certain foreign investments, you may have controlled foreign corporation (CFC) or NCTI (Net CFC Test Income) reporting requirements, which are expansion from GILTI (Global Intangible Low-Taxed Income) since the OBBBA became law.

Transfer Pricing – If your U.S. business conducts transactions with foreign affiliates, you must document arm’s-length pricing to comply with IRS regulations.

These requirements are complex and penalties for non-compliance are severe. International business owners should work with a tax advisor experienced in cross-border taxation to ensure full compliance.

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