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What is the form 1120-F?

FORM 1120 F - ITALIAN CPA FIRMS

The tax form 1120-F is the U.S. income tax return for foreign corporations. It is used to report the income, gains, losses, deductions, and credits of a foreign corporation.

Who must file?

Any corporation who

  • Was engaged in a trade or business in the US, regardless of whether it had income, or the income is tax exempt due to a tax treaty.

  • Had income, gains, or losses, treated as if they were connected to the conduct of a US trade or business.

  • Was not engaged in a trade or business in the US but had income from any U.S. source.

  • Was or had a branch that was a qualified derivatives dealer (QDD).

  • Is making a claim for a tax refund, claiming deductions or credits, and income treaty overruled any provision in the Internal Revenue Code.

Exemptions from Filing

  • It did not engage in a U.S. trade or business during the year.

  • Its only U.S. source income is exempt from U.S. taxation under section 881(c) or (d).

  • It is a beneficiary of an estate or trust engaged in a U.S. trade or business but would itself otherwise not need to file.

Filing deadline

For a foreign company with a physical presence in the US, the filing date is the 15th of March. A foreign company without physical presence in the US must file by the 15th of June. A six-month extension may be requested with form 7004, but interest must be paid on the taxes.

Additional forms that may be needed

Form 1094-C and 1095-C – Health coverage of Employees

Form 5472 – 25% or more foreign owned US Corporation

Form 8275 and 8275-R – Disclosure and Regulation disclosure.

Form 8300 – Report of cash payments over $10,000

Form 8302 – For electronic deposit of tax refund of $1 Million or more

Form 8832 – For the company to classify its entity for tax purposes

These forms are attached to form 1120F in accordance with IRS regulations if the company is required to file such forms.

Penalties

If you fail to file when required, you are liable for 5% penalty on unpaid tax per month, up to a maximum penalty of 25%.

Estimated time to complete: 70 or more hours (excluding additional forms).

Our offices are at your disposal for further information, contact us.

SourceS

IRS
HRBlock
Taxes for expats

Giulia Iacobelli