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What if my foreign parent paid US expenses directly?

Bookkeeping & accounting basics

Those payments still belong in your US books, recorded as expenses with a corresponding intercompany balance or capital contribution.

Leaving them out understates your costs and creates a transfer pricing problem. They are also reportable transactions for Form 5472 purposes.

We handle this for founders running US companies.

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Check your EIN confirmation letter (CP 575) first. If that is gone, look at a previously filed tax return, a business bank account application, or any 1099 you have issued. Your bank or your payroll provider will also have it on file.

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