Understanding your CP277 notice

U.S. individuals and resident aliens file Form 1040, U.S. Individual Income Tax Return, and report all of the entity’s income and expenses on Schedules C, E or F.

Nonresident aliens file Form 1040-NR, U.S. Nonresident Alien Income Tax Return, and report all of the entity’s income and expenses on Schedules C, E or F.

U.S. direct owners of foreign disregarded entities file Form 8858, Information Return of U.S. Persons With Respect to Foreign Disregarded Entities (FDEs) and Foreign Branches (FBs) with their returns.

Certain U.S. indirect owners of foreign disregarded entities, including through a controlled foreign corporation, a controlled foreign partnership, or another foreign disregarded entity may need to file Form 8858 with their returns.

Domestic corporations generally file Form 1120, U.S. Corporation Income Tax Return.

Foreign corporations that are engaged in a U.S. trade or business or have U.S. source income that is not fully paid by withholding of tax at source generally file Form 1120-F, U.S. Income Tax Return of a Foreign Corporation.

Foreign corporations engaged in trade or business within the United States must file Form 5472, Information Return of a 25% Foreign-Owned U.S. Corporation or a Foreign Corporation Engaged in a U.S. Trade or Business (Under Sections 6038A and 6038C of the Internal Revenue Code).

The U.S. owners (and in certain cases, U.S. officers and directors) of foreign corporations may need to file Form 5471, Information Return of U.S. Persons With Respect to Certain Foreign Corporations or Form 8621, Information Return by a Shareholder of a Passive Foreign Investment Company or Qualified Electing Fund with their returns.

Certain U.S. corporations that are at least 25% owned by a foreign person (and foreign owned U.S. disregarded entities that are treated as U.S. corporations for this purpose) may need to file Form 5472, Information Return of a 25% Foreign-Owned U.S. Corporation or a Foreign Corporation Engaged in a U.S. Trade or Business (Under Sections 6038A and 6038C of the Internal Revenue Code) with their returns.

Domestic partnerships generally must file Form 1065, U.S. Return of Partnership Income.

Foreign partnerships that have gross income that is (or is treated as) effectively connected with the conduct of a trade or business within the United States (ECI) or have gross income (including gains) derived from sources within the United States (U.S.-source income) generally need to file Form 1065.

The U.S. partners of foreign partnerships may need to file Form 8865, Return of U.S. Persons With Respect to Certain Foreign Partnerships with their returns.