Should I complete an 8832 for IRS?

Forms for UK Limited company with US client

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Hi

I hope someone can help. 

I mainly volunteer however I do provide minimal services to a US client from the UK (no staff or offices in the US).  When I first worked for the US client I completed a W-8BEN-E form.  However since then I have been chased by the IRS to complete a 1120F.  The first time I received the request I wrote to them say

"I was a UK Limited compnay and had no staff or offices in the US and I thought, under the UK/USA Double Tax Agreement, that my company had no US tax obligation in the US.  I have provided my US based client with a completed W-8BEN-E."

I heard nothing until I was reminded that I needed to complete a 1120F.  This time I called the IRS International department and was told I probably just need to complete an 8832 "check box election".

Please would you let me know if this is correct and how I should complete the 8832 as it really isnt clear and I can find limited details online?

My company isn't VAT registered.

Replies (2)

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By Accountant A
27th May 2019 11:53

If the "minimal services to a US client" don't generate sufficient income to pay for the professional advice that you need, probably best to stop.

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By Matrix
27th May 2019 12:10

If you don’t have a US trade or business then I don’t see why either form would be applicable. You have completed the W-8BEN to reduce the withholding to nil so I don’t see why there would be any other US obligations. However I am not a US tax expert and the US tax system is complex so hopefully someone with direct knowledge will be along to confirm.

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