Nonresident Tax Issues
The most frequently asked tax questions related to Nonresident Tax Issues
Seeking Advice on Form 5472 & Pro Forma 1120
Asked Saturday, June 20, 2026 by FinnUK citizen, non-US resident. I formed a Wyoming single-member LLC in Sept 2025 for freelance work and obtained an EIN. The LLC has no US employees, office, bank account, or US-sourced income. All freelance income was received personally rather than through the LLC. Given these circumstances, was I required to file Form 5472 and a Pro Forma 1120 for 2025? If so, what filing obligations do I have now, and what penalties might apply for not filing?
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Non-US owner of New Mexico LLC - filing requirements
Asked Sunday, June 14, 2026 by MykytaHello, I am a non-US resident and the sole owner of a New Mexico LLC. My LLC was formed on December 31, 2025. An EIN was obtained on May 5, 2026. No US tax forms, information returns, or other filings have been submitted yet. The company has been used for e-commerce activities. I would like to know: What federal tax filings are required for my LLC? Have any filing deadlines already been missed? Is there currently any risk of penalties? If penalties may apply, what is the best way to corre
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LLC election to corporate tax status
Asked Saturday, May 30, 2026 by TomasHello, I seek general U.S. tax guidance. Can a U.S. single-member LLC, currently treated as a disregarded entity and owned by a non-U.S. individual, elect to become tax-nontransparent for U.S. federal tax purposes, e.g. taxed as a C corporation? Under what conditions is this possible, what forms, timing and state steps apply, and what taxes/obligations follow: corporate tax, dividend withholding, treaty relief, transition issues and filings? Contact me via email. Thx.
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Taxes listed an earned in another state
Asked Friday, March 06, 2026 by AmandaI worked remote in de. My co. Listed me as working in n.c. for about a week (less than 2 k). I received tax documents for n.c and de (where I live and work). I was in n.c. for 3 days for an all hands meeting. Should I file in n.c.?
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Which State Do We Pay
Asked Friday, February 27, 2026 by ShelleyI have a business in one state and 1 employee who lives and does their job in another state (works remotely for us). Do we pay the state withholding and state unemployment to the state where we are located for that employee or do we pay the state where the employee lives and performs their work?
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Applying for ITIN
Asked Wednesday, January 21, 2026 by HaiderHello, I am reaching out to seek information about ITIN registration. We have an LLC registered in Wyoming and want to apply for ITIN. Can you please share the details about the process, timeline and costs associated with this. Thanks
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Gift taxation foreign person
Asked Thursday, December 18, 2025 by SandraNon-US citizen and non-US resident (nonresident alien) with a US bank account want to gift a total of up to $100,000 in cash this year to 2 children who are US citizens and US residents. The gifts will be wire transfers or checks from their US bank account. Questions: Is this gift subject to US gift tax for me (the donor)? Is the gift considered taxable income to my children (the recipients)? Is it up to 100k per year with no reporting filing 3520?
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Federal taxes
Asked Thursday, September 18, 2025 by SimoI opened a company in Wyoming last year Eternia Solutions LLC as a sole proprietorship (single-member LLC disregarded for tax purposes). I was told that there is no state tax in Wyoming, but I want to confirm how federal taxes work in my situation. I am not resident of USA. This year my company’s revenue will be about $32,855. I have withdraw ~$9,780 via ATM, and probably i will withdraw the rest. I heard that there are some federal taxes, even WY is tax free. I need clarification about this?
CPA Answer:
Hi Simo,
Hope you're doing well.
Whether federal tax applies depends on whether the income earned by your Wyoming LLC is treated as effectively connected income (ECI) with the United States. If the activity is considered ECI, federal tax would generally apply and a Form 1040-NR filing would be required. If it is not ECI, the U.S. may still have other reporting requirements depending on the nature of the income and where the services are performed, but federal income tax may not be triggered.
Let me know if you’d like a detailed review of your specific situation.
Regards,
Alfaisal
Rental income tax for foreign property buyer
Asked Saturday, September 14, 2024 by LauraHi, we are non US residents and considering buying an investment property in Florida. Would like to get some advice on the tax implications if we rent it out and annual tax preparation matters. Thank you.
CPA Answer:
Hi Laura-
This is not a simple question but I will give you the basics. However, I recommend that you get further advice beyond here. In general, if you have a rental property in the US, you will need to file as a non-resident. Florida does not have a state income tax but you would need to research whether they have any Franchise Taxes or Lodging Taxes that your property would be subject to. Hope this is helpful. Jackie
Jackie Compton