Who Must File

Unless one of the exceptions under exceptions from filing below applies or a special return is required ( see Special Returns for Certain Organizations , later), a foreign corporation must file Form 1120-F if, during the tax year, the corporation:

• Was engaged in a trade or business in the United States, whether or not it had U.S. source income from that trade or business, and whether or not income from such trade or business is exempt from U.S. tax under a tax treaty (see also Protective Return Filers, later);

• Had income, gains, or losses treated as if they were effectively connected with the conduct of a U.S. trade or business (see Section II, later);

• Was not engaged in a trade or business in the United States, but had income from any U.S. source, if its tax liability has not been fully satisfied by the withholding of tax at source under Chapter 3 of the Code; or

• Was, or had a branch that was, a qualified derivatives dealer (QDD).

As a taxpayer, the corporation has rights that the IRS must abide by in its dealings with the corporation. TAS can help the corporation if:

• A problem is causing financial difficulty for the business;

• The business is facing an immediate threat of adverse action; or

• The corporation has tried repeatedly to contact the IRS but no one has responded, or the IRS hasn’t responded by the date promised.

TAS has offices in every state, the District of Columbia, and Puerto Rico. Local advocates’ numbers are in their local directories and at TaxpayerAdvocate.IRS.gov . The corporation can also call TAS at 877-777-4778.

TAS also works to resolve large-scale or systemic problems that affect many taxpayers. If the corporation knows of one of these broad issues, please report it to TAS through the Systemic Advocacy Management System at IRS.gov/SAMS .

For more information, go to IRS.gov/Advocate .