When do you need to file Form 8858?

  • Non-US Self-Employment Income: If you earn self-employment income abroad, such as consulting or freelance income, you need to file Form 8858.
  • Rental Income from Non-US Properties: If you own rental property outside the US, like a property in Dubai, you must also file this form.

Are there penalties for late filing of Form 8858?

Yes, failing to file on time incurs a $10,000 penalty.

However, an extension for your US tax return also extends the Form 8858 deadline. The initial deadline is June 15, but can be extended to October 15, and further to December 15 if needed.

What should you do before filing Form 8858?

  • Stay Informed: Keep up with IRS updates, especially regarding Form 8858.
  • Seek Professional Advice: Consult a tax professional to ensure compliance and avoid penalties.
  • Plan Ahead: If you anticipate filing difficulties, proactively seek extensions to prevent penalties.

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