US-Thai Treaty of Amity: What IRS reporting requirements apply?

Thanks for clearing that up! I totally misunderstood the structure. So it's actually a Thai company with special privileges, not a US company. If I'm the sole owner of this Thai company under the Treaty of Amity, would I definitely need to file Form 5471 every year? And are there any other forms I should be aware of?

Yes, if you're the sole owner or majority owner of a Thai company under the Treaty of Amity, you would need to file Form 5471 annually. This is a comprehensive information return about the foreign corporation's operations. You may also need to file FBAR (FinCEN Form 114) if you have signature authority over foreign financial accounts exceeding $10,000 at any point during the year. Form 8938 (Statement of Specified Foreign Financial Assets) may also be required depending on the value of your foreign assets. Additionally, be aware of potential GILTI tax (Global Intangible Low-Taxed Income) which can apply to certain income from foreign corporations owned by US persons.

That sounds interesting. Can this taxr.ai thing help if I already filed incorrectly for the past 2 years? I have a similar setup in Thailand but just reported my income without all these foreign forms. Getting worried I might be in trouble.

How does it handle the bank account reporting part? My Thai business has multiple accounts and I'm never sure if I should be reporting them on FBAR as business accounts or personal accounts since I'm the sole owner.

It can definitely help with previous filing issues. The document analysis feature actually flagged potential compliance gaps from prior years in my case and explained the streamlined filing procedures for catching up on past foreign reporting without major penalties. For bank account reporting, it clearly distinguishes which accounts need to be reported on FBAR vs. Form 8938, and explains how to report business accounts where you have signature authority. It correctly identified that as sole owner, I needed to report my business accounts on both forms, but with different categorization depending on the form. The tool provides specific guidance for Thailand banking relationships.

How does this actually work? I've been trying to call the IRS international department for weeks with no luck. Do they just connect you to the same regular IRS line or do they somehow get you to someone who specifically understands international business issues?

Sounds like a scam. How could they possibly get you through to the IRS faster than anyone else? The IRS doesn't have a "priority line" that some random company can access. I've dealt with Treaty of Amity issues for years and there's no magic solution to talk to the IRS.

They don't connect you to a different line - they use a system that navigates the phone tree and waits on hold for you. When an actual agent picks up, you get a call connecting you directly to that agent. It's the same IRS number everyone calls, but their system just handles the waiting part. They don't guarantee you'll get an international specialist specifically, but in my experience, once I got through to a regular agent, I was able to ask for a transfer to someone familiar with international business issues, and they transferred me to someone who knew about the Treaty of Amity specifically.

Do you know if having a Thai company under the Treaty affects your ability to take the Foreign Earned Income Exclusion? I live in Thailand full time but heard somewhere that if you own your own company it complicates claiming FEIE.

Owning a foreign company doesn't directly disqualify you from claiming the Foreign Earned Income Exclusion (FEIE), but it does add complexity. The key is making sure your salary from the company is "reasonable compensation" for the work you're doing - the IRS can challenge salary amounts that appear manipulated to maximize FEIE benefits. The bigger issue is that any income beyond your salary might be subject to different rules like Subpart F or GILTI provisions, which can't be offset with the FEIE. This is especially true if your Treaty of Amity company has significant passive income or provides services primarily to US clients. I recommend working with a tax professional who has specific experience with both the Treaty of Amity and US expatriate taxation.

I sold my Treaty of Amity business last year. It's treated as selling foreign stock for US tax purposes. You'll have capital gains based on your basis in the company vs sale price. The buyer doesn't inherit your tax reporting history - they start fresh with their own filing requirements. Make sure you do a final Form 5471 indicating the ownership change. The trickier part was the Thai side - you need to work with the US Commercial Service at the Embassy to transfer the Amity certification, which has its own fee structure and documentation requirements.

Thanks for sharing your experience! So it's basically treated like selling stock of a foreign corporation on the US side. Did you face any issues with the IRS questioning the valuation of the business for determining the capital gain?

Great summary of the key points! Regarding business types, the IRS reporting requirements are generally the same regardless of whether you're doing consulting, e-commerce, or other activities - if you own a foreign corporation, you'll need Form 5471, and the FBAR/8938 requirements depend on account values, not business type. However, the TYPE of income your business generates can make a big difference for tax purposes. Consulting income is typically considered active business income, while certain e-commerce models (especially dropshipping or digital products) might be classified as passive income under Subpart F rules, potentially making it immediately taxable in the US. For specialized help, I'd recommend looking for CPAs or EAs who specifically mention "international tax" and "controlled foreign corporations" on their websites. The American Chamber of Commerce in Thailand sometimes has referrals for US tax professionals familiar with Treaty of Amity structures. You want someone who understands both the US CFC rules AND the specific nuances of how the Treaty of Amity interacts with standard international tax provisions.