US Partners in non-US Partnerships

American partners in partnerships located outside the US must file US information returns regarding their partnership if Americans are collectively 10% or more partners in a non-US corporation.

If Americans own between 10% and 50% of a foreign partnership, you usually have to file Form 8865 in the year the partnership begins, the year it closes, and most years when partnership percentages change.

If Americans own more than 50%, you usually file Form 8865 every year.

Form 8865 converts financials statements from foreign currency and fiscal year to US dollar and calendar year, using US GAAP and IRS rules for allowable deductions. This means that the bottom line on your partnership may be very different for US tax purposes. For that reason, it’s best to take advice prior to starting your corporation.

We assist with all compliance related to foreign entities owned by Americans.

Why Choose British American Tax?

  • Prearranged calls to UK-based US tax specialists accepted as late as 11 p.m. GMT.
  • Managing Director Liz Zitzow, E.A. has more than fifteen years of experience waiving penalties for late filers.
  • Managing Director Liz Zitzow, E.A. has been filing Form 8865 since inception.
  • One hour of free tax planning per year for all clients.
  • Income tax planning inclusive of capital gains, primary residences, secondary homes, businesses, inheritance, gift, and trust tax planning.
  • Tax planning before the tax year end.
  • Tax planning before moving your business to another country.
  • Tax planning to reduce US tax on the divestment of your partnership interest.
  • Tax planning for LGBT and other alternative lifestyles.
  • Bespoke tax planning for micro and small businesses in multiple countries with partners in two or more countries.
  • Fixed fee or ceiling fee for individual and corporate taxation.
  • Accept payment in pounds, euros, or US dollars.
  • Accept Paypal, credit card, cash, cheque, wire, and BACS.
  • Work alongside your UK accountant to make the total tax between both countries as small as possible.
  • Provide referrals to lawyers and dual US/UK IFAs for all your needs.
  • US Enrolled Agents and CPAs.

If your current US tax accountant does at least seven of these, you’re doing well. If they are handling less than seven, we do all of them. Call us.