IRS Form 1040-NR
The federal individual income tax return for non-resident aliens with US-source income.
Definition
Form 1040-NR is filed by non-resident aliens to report US-source income. The form is used by foreign individuals with US-source effectively-connected income (ECI) or US-source FDAP income above thresholds. Most non-resident-owned single-member Delaware LLC owners do not have personal Form 1040-NR filing obligations because the LLC handles its own federal information returns.
Context
Form 1040-NR requires an SSN or ITIN. Most non-resident LLC owners without personal US-source income do not file Form 1040-NR and do not need ITINs.
Example
A non-resident Delaware LLC owner whose only US activity is the LLC files Form 5472 + pro forma Form 1120 at the LLC level. The owner does not personally file Form 1040-NR because they have no personal US-source income.
Common pitfalls
- Confusion about whether ITIN/Form 1040-NR is needed; usually not.
- If you have US rental real estate or US-source consulting income paid to you personally, Form 1040-NR may be required.