In the case of perpetual travelers with no current tax residence what is the best practice regarding the residential address to declare on US LLC compliance forms?
· Should the residential address (or at least the residence country) declared be consistent across FinCEN FBAR + BOI and IRS 5472+1120 forms? Are those cross-checked?
· Is it important to declare an address where we can receive mail? Would FinCEN/IRS contact the beneficial owner at their residential address or just at the LLC registered office address?
· Is it important to have a proof of address at hand for the declared period? Is a bank statement with an old address sufficient, or do we need a rental contract or utility bill?
· Should the residential address be in a country where we were previously tax residents or where we have residency rights (even if we do not meet tax residency criteria there), or can it be an address where we spend most time in the year even if we are not registered as residents and have no proof of address there?
·If the address declared is in our country of citizenship or in a country with domicile-based taxation criteria, could this create issues?
My understanding is that currently FinCEN does not initiate address checks and that information is not automatically reported to countries of residence (except in special cases like criminal investigations. FinCEN guidelines state that in the case of individuals with no permanent residential residence, “The residential address that is current at the time of filing should be reported to FinCEN. An updated report should be submitted within 30 calendar days if the address, or any other information previously reported, changes.” How do perpetual travelers navigate this compliance requirement in practice?
To clarify, the updated report needs to be submitted within 30 days from the initial report, right? (not if any changes had occurred during the year before the initial report is due?)
Thank you.
· Should the residential address (or at least the residence country) declared be consistent across FinCEN FBAR + BOI and IRS 5472+1120 forms? Are those cross-checked?
· Is it important to declare an address where we can receive mail? Would FinCEN/IRS contact the beneficial owner at their residential address or just at the LLC registered office address?
· Is it important to have a proof of address at hand for the declared period? Is a bank statement with an old address sufficient, or do we need a rental contract or utility bill?
· Should the residential address be in a country where we were previously tax residents or where we have residency rights (even if we do not meet tax residency criteria there), or can it be an address where we spend most time in the year even if we are not registered as residents and have no proof of address there?
·If the address declared is in our country of citizenship or in a country with domicile-based taxation criteria, could this create issues?
My understanding is that currently FinCEN does not initiate address checks and that information is not automatically reported to countries of residence (except in special cases like criminal investigations. FinCEN guidelines state that in the case of individuals with no permanent residential residence, “The residential address that is current at the time of filing should be reported to FinCEN. An updated report should be submitted within 30 calendar days if the address, or any other information previously reported, changes.” How do perpetual travelers navigate this compliance requirement in practice?
To clarify, the updated report needs to be submitted within 30 days from the initial report, right? (not if any changes had occurred during the year before the initial report is due?)
Thank you.
