Is it necessary to file a 8858 for a rep office?


Four years in and I’m suddenly confused if I should have filed any additional forms to the US IRS for my TW rep office…

From the instructions:
Who should file?
…U.S. persons that are tax owners of FDEs (see definitions below), operate an FB…

Definitions (FDE)
An FDE is an entity that is not created or organized in the United States and that is disregarded as an entity separate from its owner for U.S. income tax purposes under Regulations sections 301.7701-2 and 301.7701-3.

OK fine, the confusing part is whether or not the Rep Office is an entity and to whom is it or is it not an entity.

Obviously the rep office is not a legal entity, but to the US IRS is it a separate tax entity than my LLC?

Can anyone let me know if they went through the pain of this form, or stuffed it all in the schedule C? or none of the above?


Paging @Bree

Your LLC is a domestic disregarded entity and your branch office is included in that. You do not have a FDE and are not required to file an 8858 UNLESS you are claiming a foreign tax credit for operations in Taiwan. Still the form is not a requirement, but makes the tax remittance disclosure easier. PM me if you have other questions. If you are partner/shareholder in other foreign businesses that do biz with your LLC, you may have different obligations.


After looking at this again it seems that the rep office IS required to file, but only as of my 2018 return (this year).

I believe @Bree pointed me in the right direction that the rep office is classified as a foreign branch (FB) and not an FDE as I originally worried about. However, as of this year FBs are now also required to send in the form.

So if I’m reading it right I’m saved regarding not filing 8858 in the past three years but I still do need to file this year…

and unless I’m reading it wrong there might be lots of rep office peeps on this site that need to file too.

Thanks Xingxing. I overlooked the 8858 being changed under the new code. So many things were, I should have known better. This poorly written legislation has been an eggregious burden to cross-border filers.
:sparkle:Tell your friends there is yet another disclosure form. Liberty my ass.

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