Reporting Transfers From Us Taxpayers to Foreign Corporations – IRS Form 926

Driven by international trade and investment, and connected by family and technology, New York and New Jersey small businesses are expanding their businesses offshore. Entrepreneurs transfer property, cash, and other assets overseas or to foreign holding corporations to conduct everyday business transactions. Most tax professionals have taken continuing education courses on the Form 5471, Information Return of U.S. Persons With respect To Certain Foreign Corporations. However, the audits of entrepreneurs have revealed a filing requirement being overlooked - when a U.S. Person transfers property to a foreign corporation, he or she may need to file Form 926, Return by a U.S. Transferor of Property to a Foreign Corporation. This Article explains the basics of Form 926.