Employee Plans Compliance Unit (EPCU) - Current Projects - International Project - Domestic Trusts - Frequently Asked Questions
These frequently asked questions and answers are provided for general information only and should not be cited as any type of legal authority. They are designed to provide the user with information responsive to general inquiries. Due to the uniqueness and complexities of Federal tax law, it is imperative to ensure a full understanding of the specific question presented, and to perform the requisite research to ensure a correct response is provided. More information on Federal taxation can be obtained directly on our website, www.irs.gov.
Foreign Entities That Maintain Domestic Trusts
- Why was this entity chosen for the compliance check?
- How should I respond if there if some foreign affiliation?
- How should I respond if there are no foreign affiliations?
- What should I do if we maintain a Simple IRA plan?
- Should I request that my EIN be changed if this entity does not have foreign affiliations?
Why was this entity chosen for the compliance check?
The Internal Revenue Service previously only issued EINS beginning with the number 98 to entities that had some type of foreign affiliations. We are determining if this practice was universally applied and if so, do these entities maintain a retirement plan for their US citizens, resident aliens and anyone else required to file a US tax return.
How should I respond if there if some foreign affiliation?
If you are a foreign entity that maintains a retirement plan(s) for your US employees you should complete the compliance check, answering each question directly or by composing a letter that addresses each of the issues.
If you are a separately incorporated US subsidiary of a foreign entity, you should respond by giving the name and location of the parent company as well as the names and types of retirement plans you maintain. If you filed the Form 5500 under a different EIN, you should also include the EIN and the reason for filing under that EIN.
If you are a US entity which has foreign affiliations, you should respond by stating that you are the parent company and listing the names and locations of your foreign subsidiaries and whether any US citizens are plan participants in the plans.
How should I respond if there are no foreign affiliations?
If you are a US entity without any foreign affiliations, you should respond by stating that you do not currently, nor have you ever, had any foreign affiliations. If you have previously had foreign affiliations, you should give the name of the entity, country of origin, date the change occurred and how the retirement plan was affected.
What should I do if we maintain a Simple IRA plan?
You should respond that the plan is a Simple IRA and indicate the location of the maintained accounts.
Should I request that my EIN be changed if this entity does not have foreign affiliations?
No, you do not need to request a different EIN. You should continue to use your assigned EIN.