If you'd read the FATCA agreements and the TIEA agreements between the US and your country you'd realize that in fact everything about your "anonymous" LLC is being reported automatically to the country you indicated on the IRS form 5472 as a place of where the business is conducted and as a country under which the LLC will file its tax return ... If you "by mistake" put there a country where you didn't in fact declare it, according to the agreements, that country can report back to the IRS that it knows no such company, in return the IRS will slap you with a $25000 fine for incorrect filling of the 5472 and will demand you to clarify the situation. Once the real country where you ran the business is identified, you'll have to deal with their tax authorities too.
Not a nice situation.
You have only 3 choices:
1) Find a country that has no tax information exchange agreement with the US - hard
2) Hope that your tax authorities are lenient and don't and won't enforce it - risky
3) Declare it and tax it as local company - pointless
Last edited: Jan 4, 2022
Not a nice situation.
You have only 3 choices:
1) Find a country that has no tax information exchange agreement with the US - hard
2) Hope that your tax authorities are lenient and don't and won't enforce it - risky
3) Declare it and tax it as local company - pointless
Last edited: Jan 4, 2022
