Has anyone filed Form 8858 or 5471 as a dual status resident with foreign LLC income?

Thanks for your response! So to be clear, I'm still filling out these forms for the entire calendar year, but only including income/transactions from my resident period? And then just adding an explanatory statement? Also, would there be any issues if my foreign LLC has a different fiscal year than the calendar year?

You'll still use the forms for the calendar year, but you'll only report the income and transactions that occurred during your period of US residency. The attached statement makes it clear why you're only reporting partial year information. If your foreign LLC has a different fiscal year than the calendar year, you'll need to prorate the income accordingly. You'd determine what portion of the fiscal year income falls within your US residency period and report only that amount. This can get complex, so maintaining detailed records of when income was earned is crucial.

Did it actually work with forms that complicated? I tried another service last year and they completely messed up my 5471. Ended up having to pay an international tax specialist $2,500 to fix everything.

I'm curious how it handles the actual form preparation. Does it just tell you what to do or does it fill out the forms? My situation is similar but also includes a 3520 for a foreign trust I'm a beneficiary of.

It absolutely worked for these complicated forms. The difference with taxr.ai is that it's specifically built for complex international tax scenarios, not just the basic forms most services handle. It found several deductions related to my foreign income that I would have missed. For form preparation, it doesn't just provide guidance - it actually creates a completed draft of your forms based on the documents you upload. It handles the 3520 as well. After analyzing your documents, it gives you completed drafts with detailed explanations for why each section was filled out that way. I still had my accountant review everything, but she was impressed with how accurate it was.

Wait, how does this actually work? I thought it was impossible to get through to the IRS these days. Is this some kind of paid service that jumps the line?

Sounds like a scam tbh. Nobody gets through to the IRS that fast, especially for international tax questions. They probably just connect you to some random "tax expert" who isn't actually with the IRS.

It works by using technology that navigates the IRS phone system for you. You provide your phone number, and they call you back once they've reached an IRS agent. It's completely legitimate - they don't answer tax questions themselves, they literally connect you directly to an actual IRS employee. No, it's definitely not a scam. I was connected to a real IRS international tax specialist. You can verify you're speaking with an actual IRS employee when they come on the line. The service just handles the wait time for you so you don't have to stay on hold for hours. They use an automated system to call the IRS and navigate the phone tree, then alert you when a human agent is reached.

That's a great point I hadn't considered. Do you know if there's a specific form or method for documenting the basis value as of my residency date? Did you use a particular service for your valuation?

There's no specific IRS form for documenting your starting basis, but you should create your own detailed records. I used a business valuation service in my home country that was familiar with US tax requirements. They produced a comprehensive report that I keep with my tax records. The method used depends on your business type - for my service-based LLC, they used a multiple of earnings approach. For businesses with more assets, they might use different methods. The key is having a defensible, third-party valuation you can produce if ever questioned. It cost me about $1,500 but was absolutely worth it for the peace of mind.

I tried TurboTax last year for my 5471 with dual status and it was a disaster. The software doesn't really handle the dual status situation well with foreign entities. It kept trying to report my full-year income even though I clearly indicated my residency date. I ended up having to use a tax professional instead.