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Do I have to file IRS Form 8858?

If you have self-employment earned outside the United States or rental income from property you own outside of the United States, you must report the income on Form 8858.

  • Non-US Self-Employment Income: If you’re a US person earning self-employment income outside the US, such as consulting or freelance income, you’re required to file Form 8858.
  • Rental Income from Non-US Properties: Owning a rental property outside the US also triggers the need for Form 8858. For instance, if you have rental income from a property in Dubai, you must file this form.

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Are there penalties if I don’t file Form 8858 on time?

Yes, there is a late filing penalty of $10,000 for not filing Form 8858 on time.

However, it’s important to note that if you have an extension for your US tax return, it also extends the due date for Form 8858. Typically, the initial deadline is June 15, but with an extension, you can file by October 15. A further extension to December 15 is also possible to avoid penalties.

What should I do before filing Form 8858?

  • Stay Informed: Keeping up with IRS changes can be challenging, but it’s essential to stay informed, especially about new forms like 8858, as well as any changes that they might be implementing.
  • Seek Professional Advice: Given the complexities and potential penalties, consulting with a tax professional is advisable to ensure compliance and avoid hefty fines.
  • Plan Ahead: If you anticipate difficulty in meeting the filing deadline, proactively seek extensions to prevent penalties.

Why partner with a specialist Expat accountant?

Living outside of the US can make your tax filing requirements complicated. To ensure you pay the minimum amount of taxes, it’s critical to work with an accountant who understands every aspect and avenue for reducing your tax liability. We have a dedicated team of tax accountants who work exclusively with US expats earning and investing in the UAE. Partnering with a specialist expat accountant can help you navigate complex tax regulations and optimize your tax situation.


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