Foreign entity returns
Completing Foreign Entity returns with ONESOURCE Income Tax involves the following tasks:
- Completing book-to-tax work in the Tax Accounting System (TAS).
- Allocating and apportioning income, expense, and asset adjusted tax balances to international baskets in the Sourcing Workpaper.
- Running look through calculations for intercompany transactions.
- Determining any current year subpart F or investment in U.S. property inclusions.
- Tracking historical E&P and tax pools and layers and adjustments.
- Determining current year Subpart F and Investment in U.S. Property inclusions.
- Calculating deemed paid credits on distributions for Form 1118.
- Completing the Form 8865 Schedule K-2 in U.S. Dollars by foreign country for foreign partnerships.
- Entering data to prepare Form 5471 for both Controlled Foreign Corporations and Non-controlled Foreign Corporations.
Inside the Binder
When you open a foreign entity binder, you will see three folders:
Tax Accounting System
- Use this area to import or manually enter current year balances and adjustments as well as produce book-to-tax reconciliation reports.Tax Return
– Use this area to complete the return and supplementary schedules with additional alphanumeric data for forms 5471, 8865, 8858, 8886, 8621 and to print tax forms.note
Other forms completed within a foreign entity binder will not be included in the e-file.
Foreign Entity
- Use this area to categorize income and expenses (and assets, if applicable) flowing from the Tax Accounting System to appropriate international baskets and to populate data needed for international computes.
