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Foreigners with non-U.S. Sourced Income


Are you a non-U.S. citizen who owns a company in the States deriving its income from abroad? We have good news for you! You are not required to report your non-U.S. sourced income to the IRS and file form Protected content .

While all U.S. business entities and individuals are required by law to file a tax return every year, some taxpayers need to provide less information than others. As we have discussed before, if you are a U.S. citizen living and working abroad, you still have to report your foreign earned income if it exceeds $10,000.

If you are a foreign national that lives and works in the U.S. you will also have to file a tax return and report all details about your income.

However, if you are a foreigner who has a corporation or a partnership in the U.S., which trades outside of the States, you do not need to report your income that comes from abroad. Bear in mind, though, that you are still required to file a tax return as a U.S. business entity and any income coming from trade within the United States, will have to be reported.

Click for our guide about: 10 tips for US tax payers with foreign income
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What income qualifies as non-U.S. sourced? Here are the guidelines:

An income that comes from a non-resident alien
A foreign corporation
A foreign trust
A foreign partnership
A foreign estate
A foreign government
An international organization.

If you want to stay on the safe side, you can still submit form Protected content voluntarily. In that case, the IRS recommends using the Exemption Code 03, Income is not from U.S. sources.

Do you need to speak with a tax professional regarding this year’s tax return? FAS CPA & Consultants are ready to assist you with all of your tax matters. You can call us or email at Protected content and request a free 30-minute consultation that will answer your most pressing tax questions.

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