Hi,
I've got myself in a bit of bother and am slightly worried. I am a Director of a small 2 person UK limited company since 2012 in software development and work as a contractor. I had a great idea last year to branch out and try audio book narration through acx.com which is Amazons one-stop-shop. They allow budding UK producers to bid for work and win it through their platform and be paid royalties by audible or paid a fixed amount by the book rights holder (which could be in the US\UK). A precursor to registering with ACX was to get an EIN number from the IRS, so I registered my Ltd Company now have one. I have never lived in the US or had any business dealings in the US since incorporation. My intention was to do the work, my Ltd company receive the money, and continue to pay UK based tax on the income. Through ACX.com I have also filled in the tax questionaire which auto files a W-8BEN-E form to avoid double taxation on royalty payments from both the US and UK regimes.
I have today received a letter from the IRS saying that based on the information received from me they require I file a Form 1120F and that I haven't filed tax returns as far back as 2012 when I was incorporated. They have also sent me an EFTPS letter to register for federal tax payments.
I was under the impression that as I filed UK corporation tax returns I would not need to file US tax returns? If that's the case how do I undo this mess? Have I registered myself with the IRS incorrectly?
If not, what would I need to file on a regular basis? and is it something I can do or do I need professional advice?
Regards
I've got myself in a bit of bother and am slightly worried. I am a Director of a small 2 person UK limited company since 2012 in software development and work as a contractor. I had a great idea last year to branch out and try audio book narration through acx.com which is Amazons one-stop-shop. They allow budding UK producers to bid for work and win it through their platform and be paid royalties by audible or paid a fixed amount by the book rights holder (which could be in the US\UK). A precursor to registering with ACX was to get an EIN number from the IRS, so I registered my Ltd Company now have one. I have never lived in the US or had any business dealings in the US since incorporation. My intention was to do the work, my Ltd company receive the money, and continue to pay UK based tax on the income. Through ACX.com I have also filled in the tax questionaire which auto files a W-8BEN-E form to avoid double taxation on royalty payments from both the US and UK regimes.
I have today received a letter from the IRS saying that based on the information received from me they require I file a Form 1120F and that I haven't filed tax returns as far back as 2012 when I was incorporated. They have also sent me an EFTPS letter to register for federal tax payments.
I was under the impression that as I filed UK corporation tax returns I would not need to file US tax returns? If that's the case how do I undo this mess? Have I registered myself with the IRS incorrectly?
If not, what would I need to file on a regular basis? and is it something I can do or do I need professional advice?
Regards
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