Federal Tax Return Of Income Forms

[stanvalchev]

Federal Tax Return of Income Forms

We are Non-US Resident aliens and we are living out of USA. Last year (Jan. 2008) we formed an Limited Liability Company (a Partnership with two individuals - shareholders) in West Palm Beach, Florida.da. Our Gross Incomes are no more than $5000 and we don't have any employees. We are doing web design, search engine optimization, graphic design services and etc. The largest percentage of our business activity are web design services. We are NOT selling our services in USA.

We have to file for (isn't it):

"U.S. Return of Partnership Income - Form 1065"

"U.S. Return of Partnership Income - Schedule K-1"

and another one "U.S. Return of Partnership Income - Schedule K-1"

May I fill and file those federal tax forms above on my own without any professional help?

How to send IRS those forms above and how to pay my taxes (if I have to pay any taxes)?

What's the tax rate for non-US citizens who're owners of US company?

What's the deadline to pay and file our tax report? - The tax year is: 01.Jan.2008 - 31.Dec.2008

Should I fill a "Gross receipts or sales" in the Form 1065, because I don't have any incomes from USA for the tax year?

Should I fill any "Deductions" in the Form 1065 - I have an expenses from USA companies?

What's the right code for our Principal Business Activity when we're using "U.S. Return of Partnership Income Form 1065"?

I'm talking about the items below from "Form 1065 - U.S. Return of Partnership Income":

For Example:

A Principal business activity:

Specialized Design

B Principal product or service:

Web Design

C Business code number:

541400

Instructions: "Once the Principal Business Activity is determined, enter the six-digit code from the list below on page 1, item C. Also enter a brief description of the business activity in item A and the principal product or service of the business in item B."

Is it should be a "code - 541519 - Other Computer Related Services" or "code - 541511 - Custom Computer Programming Services", "code - 541512 - Computer Systems Design Services"?

What should I pay at all?

*) I've already paid my partnership annual report - $138.

Thank you in advance!

Stan

[longball53098]

Stan, I think you should be consulting with a tax accountant to help you here. Here is the info I found on the ACS web page from the Embassy. This may help you. It's possible the Chiang Mai consulate has info also.

taxinfo1.pdf

[lanny]

Stan - you don't seem to understand the relationship between the individual partners and the partnership. I think you need professional help!

As a partnership, the business does not pay income tax. It is a so-called "passthrough entity" and each of the partners pay tax on their share of the partnership income. That's what the Schedule K-1 is for - to show each partner what his/her share is. The partners have to show this income on their own personal income tax returns (Form 1040 or 1040NR) and pay any applicable tax.

[stanvalchev]

Stan - you don't seem to understand the relationship between the individual partners and the partnership. I think you need professional help!

As a partnership, the business does not pay income tax. It is a so-called "passthrough entity" and each of the partners pay tax on their share of the partnership income. That's what the Schedule K-1 is for - to show each partner what his/her share is. The partners have to show this income on their own personal income tax returns (Form 1040 or 1040NR) and pay any applicable tax.

Hello Lanny,

Thank you for that good answer.

We are two partners (each with 50% share). Our Gross Incomes are no more than $5000 and we don't have any employees.

I think that I don't have to show Forms 1040NR and without Schedule E, because our wages are no more than $3500:

I found the information below on the IRS web page

Who Must File

File Form 1040NR if any of the following four conditions applies to you.

............

Exceptions.

You do not need to file Form 1040NR if:

1.

Your only U.S. trade or business was the performance of personal services, and

1.

Your wages were less than $3,500; and

2.

You have no other need to file a return to claim a refund of overwithheld taxes, to satisfy additional withholding at source, or to claim income exempt or partly exempt by treaty; or"

And the conclusion is:

1) "U.S. Return of Partnership Income - Form 1065"

2) "U.S. Return of Partnership Income - Schedule K-1"

3) and another one "U.S. Return of Partnership Income - Schedule K-1" for my partner

- to file that forms and send them via DHL and etc.

- to pay my taxes via IRS web site.

*) I hope that I can fill in that forms alone, without any professional help. and I hope this is allowed from the IRS.

What do you think about that?

Thank you in advance

Regards,

Stan

Edited April 3, 2009 by stanvalchev

[noahvail]

Stan - you don't seem to understand the relationship between the individual partners and the partnership. I think you need professional help!

As a partnership, the business does not pay income tax. It is a so-called "passthrough entity" and each of the partners pay tax on their share of the partnership income. That's what the Schedule K-1 is for - to show each partner what his/her share is. The partners have to show this income on their own personal income tax returns (Form 1040 or 1040NR) and pay any applicable tax.

Hello Lanny,

Thank you for that good answer.

We are two partners (each with 50% share). Our Gross Incomes are no more than $5000 and we don't have any employees.

I think that I don't have to show Forms 1040NR and without Schedule E, because our wages are no more than $3500:

I found the information below on the IRS web page

{snipped for space}

*) I hope that I can fill in that forms alone, without any professional help. and I hope this is allowed from the IRS.

What do you think about that?

Thank you in advance

Regards,

Stan

Stan, please listen to what other posters have told you: get a professional to assist you. *If* it is as simple as you state, there won't be much cost; but a pro will ask you the pertinent questions so that you will be in compliance. Once you receive a K-1, even for less than $3,500, it opens you up to the tax treaties between the US and Thailand, and it can be become a nightmare. It's worth the small cost for a pro - if the IRS determines there is a problem, who will you turn to then for advice? And if an IRS agent even sniffs fraud, he has the right to look at you and your partner's returns going back to D-Day or your birthday, whichever comes first The rule to remember is: Don't mess with Uncle.