Completing FATCA form, UK Ltd co contractor

[WordIsBond]

FBAR....I prefer to call it FUBAR

It's just possible you aren't the only one.

If you're a US citizen and a director of a foreign controlled corporation, you're basically in a world of hurt, and you need expert help (esp. w/ 5471 but, as you allude to, it's simpler for disregarded entities where the business and owner are treated as the same entity). Don't bother trying to talk to the IRS about any of this, you'll need a cross-border tax specialist.

Yes, but the UK tax savings may make it worth it even so. Certainly that's the case for me. And there are specialists, google David Treitel, for instance.

You don't have to be a US citizen, if you married one it can create a world of hassle for you anyway.

The correct procedure is this: 1) are you a US person? [if yes, go to 2, if no, go to 3]; 2) sorry, we can't be bothered to give you an account; 3) no FATCA needed.

Yep.

[seanraaron]

Have you tried not being american?

My kid is triple national so I'd rather not be in a separate queue. And then there's the xenophobia in Europe rearing its head again which makes me feel like keeping a "get-out" passport handy. If they change the law there so there's no more dual nationalities then I'll hand in my library card.

[seanraaron]

If you have kids, you may be doing it wrong.

Unless your income is pretty high, you are much better off, instead of the foreign income exclusion, claiming the foreign tax credit. Then, you are eligible to claim the refundable child tax credit. If you are going to have the hassle of filing all these forms, you might as well get paid a little bit for it, and $1000 per child per year is worth a little hassle.

You definitely need to look into whether or not you have to file FBAR.

The double taxation thing isn't bad, really. If you file 8832, then your corporation tax here counts towards the foreign tax credit, as does any personal income tax (think dividend tax). As a result, you probably won't pay any US tax. It's just a hassle.

My kid doesn't live with me full-time so not relevant. I don't have enough savings for the FBAR nonsense, but I probably will at some point, FFS. Might be time to think about handing in that passport after all!

[richy]

I filled in as "Passive non financial entity" then just my details, and the fact I'm not US citizen or US resident.