Other foreign-investment filing requirements are more widely known but can still trip up the unwary overseas investor. The Foreign Account Tax Compliance Act (FACTA), for example, has reporting requirements for ownership of foreign bank accounts. IRS Form 5471 is required for taxpayers who are directors, officers or more than 10% shareholders of certain foreign corporations, Aucamp added.
The BEA has quarterly reporting requirements for certain interests in foreign businesses including those whose assets or gross sales exceed $60 million, Aucamp said. “This reporting is required only if the taxpayer is contacted by BEA.”
“Every day, at least one U.S. person with business overseas will learn of some horrible U.S. government form they are in non-compliance with,” noted the blog “The IRS Medic.” “Compliance for the U.S. international investor just seems to be never-ending.”