U.S. Tax Compliance for Non-Residents and Foreign Entities

You do not have to live in the United States to owe U.S. taxes. Tax Master Inc. specializes in cross-border non-resident compliance — we file correctly, claim every treaty benefit available, and prevent costly withholding mistakes.

Overview

Non-Resident U.S. Tax — We File Correctly

If you earn U.S. rental income, consulting fees, dividends, or business profit, the IRS may require you to file. The rules for non-residents differ substantially from those for U.S. citizens, and penalties for non-filing are severe.

Tax Master Inc. specializes in cross-border non-resident compliance — we file correctly, claim every treaty benefit available, and prevent costly withholding mistakes.

⚠ Non-Filing Penalty Warning

Failure to file Form 1040-NR can result in the IRS assessing tax on your gross U.S. income at 30% with no deductions allowed. If you have unreported income, filing now is almost always better than waiting for the IRS to assess.

30% Default FDAP Withholding on U.S. Income
183 Substantial Presence Test Days
$25K Penalty Per Form 5472 Not Filed
$0 Cost for Initial Consultation
Do You Need to File?

Who Needs to File a U.S. Non-Resident Tax Return

If any of the following apply to you, you likely have a U.S. filing obligation — even if no one has told you.

Foreign nationals who are not U.S. citizens or Green Card holders but have U.S.-source income

Individuals who fail the Substantial Presence Test (183-day rule) in the current or prior years

Canadian residents earning U.S. rental income, dividends, consulting fees, or wages

Foreign corporations with U.S.-source effectively connected income (ECI) or gross income

Dual-status aliens — part-year U.S. resident and part-year non-resident

Non-resident aliens with U.S. real estate — rental income or proceeds from sale

Foreign investors in U.S. partnerships or LLCs with U.S. operations

What We Handle

Non-Resident Filing Services

Individual and corporate non-resident compliance — from Form 1040-NR to Form 1120-F, ITIN applications, and treaty elections.

Non-Resident Individual Services

  • Form 1040-NR — U.S. Nonresident Alien Income Tax Return
  • Dual-status returns (Form 1040 with 1040-NR dual-status statement)
  • ITIN application (Form W-7) preparation; Certifying Acceptance Agent (CAA) services
  • First-Year Choice election for individuals who become residents mid-year
  • Departure return for departing aliens (Form 2063 / Form 1040-NR)
  • Withholding certificates for non-residents (Form 8288-B for real property sales)
  • Treaty exemption elections and Form 8833 treaty-based position disclosures
  • FDAP income analysis and 1042-S withholding reconciliation

Non-Resident Corporate Services

  • Form 1120-F — U.S. Income Tax Return of a Foreign Corporation
  • EIN application for foreign corporations
  • Protective 1120-F filings to preserve deduction rights
  • FDAP income analysis and ECI determination
  • Branch Profits Tax calculation, planning, and treaty reduction
  • Form 5472 — Information return for 25% foreign-owned U.S. corporations and LLCs
  • Form 8833 — Treaty-Based Return Position Disclosure
  • Section 871(m) analysis for dividend-equivalent payments
FAQ

Non-Resident Filing — Common Questions

Yes. Non-residents with U.S. rental income must file Form 1040-NR. You also have a choice: you can elect to treat the rental income as effectively connected income (ECI), which allows you to deduct expenses and pay tax on net income, rather than being subject to the default 30% withholding on gross rents. We advise on which election is better for your situation.
A dual-status return covers a tax year in which you were both a U.S. resident and a non-resident — typically the year you arrive in or depart from the United States. The return is more complex: you file Form 1040 as the primary return for the resident period, with a 1040-NR attached as a statement for the non-resident period. Different rules apply to each period.
Almost certainly yes. Foreign-owned single-member LLCs are required to file Form 5472 (even with zero revenue). If the LLC had any income, a Form 1040-NR or 1120-F may also be required. The Form 5472 penalty is $25,000 per form per year — one of the highest automatic penalties in the U.S. tax code.
An ITIN (Individual Taxpayer Identification Number) is a tax processing number issued by the IRS to individuals who are not eligible for a Social Security Number. Non-residents who need to file a U.S. tax return apply for an ITIN using Form W-7. Tax Master Inc. is a Certifying Acceptance Agent (CAA), meaning we can certify identity documents without requiring you to mail your original passport to the IRS.
FDAP stands for Fixed, Determinable, Annual, or Periodical income — dividends, interest, rents, royalties, and other passive income. FDAP income from U.S. sources is generally subject to 30% withholding at the source. The withholding rate may be reduced under a tax treaty (e.g., the U.S.–Canada Treaty reduces dividend withholding to 15% for individuals). We analyze your income, determine the applicable rate, and reconcile your 1042-S against what was actually withheld.
Get Started

Not Sure If You Need to File in the U.S.?

Book a free 20-minute consultation with Tax Master Inc. We will review your residency status, income sources, and U.S. filing obligations — and tell you exactly what needs to be done.

Book a Free Consultation