USA Tax Update (August 2026): De Minimis Ruling Upheld & New Importer of Record Rules for International Sellers

by Ariful | Aug 16, 2026 | US Updates

TITLE: Understanding the Recent U.S. Customs Changes for International Sellers

The U.S. Court of International Trade has upheld the suspension of the duty-free de minimis exemption. At the same time, a new federal customs enforcement order is changing how international businesses can act as importers of record.

This matters if you sell through Amazon, Shopify, TikTok Shop, eBay, Etsy, or your own website and send goods into the United States. It also matters if your business uses U.S. fulfilment centres, third-party logistics providers, or marketplace inventory programmes.

This update explains what changed, what remains subject to implementation, and the practical steps you should take now.

The August ruling keeps the $800 de minimis suspension in place

On 13 August 2026, the U.S. Court of International Trade issued Axle of Dearborn, Inc. v. Department of Commerce, listed as Slip Opinion 26-94 in the court’s 2026 slip-opinions index.

The court upheld the suspension of the U.S. de minimis exemption. This means international sellers cannot assume that shipments valued at $800 or less will enter the United States duty-free.

The ruling supports the government’s position that suspending the exemption does not create a new tariff. Instead, it removes a special duty-free treatment that previously applied to qualifying low-value imports.

The outcome is important for sellers shipping from the UK, Europe, Canada, Australia, and Asia into major U.S. entry points such as:

• Los Angeles and Long Beach.
• New York and Newark.
• Chicago.
• Miami.
• Dallas–Fort Worth.
• Atlanta and other air cargo hubs.

The old “under $800 means no customs duty” assumption is no longer a reliable compliance process.

CBP now requires a proper entry route for low-value commercial shipments

The CBP interim final rule published in the Federal Register confirms that merchandise valued at $800 or less arriving through non-postal modes must use formal or informal entry procedures.

The CBP e-commerce FAQ confirms that the suspension applies to merchandise from all countries and across all transport modes, subject to specific exceptions.

For most commercial shipments, you should now expect to provide:

• A designated importer of record.
• An accurate description of every product.
• The applicable 10-digit HTSUS classification.
• The correct country of origin.
• The customs value.
• Quantity and weight where required.
• Bond information where applicable.
• Duty, tax, fee, and other charge calculations.

For non-postal shipments valued at $2,500 or less, informal entry may generally be available, subject to eligibility. Formal entry is generally required above $2,500 or for certain goods, including goods subject to quotas or anti-dumping and countervailing duties.

However, the new importer of record framework discussed below may restrict foreign businesses from using informal entry. You should not rely on an informal-entry process without confirming that your importer structure, broker, carrier, and goods remain eligible.

New importer of record requirements put international sellers under greater scrutiny

On 3 June 2026, the White House issued Executive Order 14411, Strengthening Customs Enforcement.

The order directs the Department of Homeland Security and U.S. Customs and Border Protection to revise importer eligibility rules, guidance, and policies. Many details require further CBP implementation, but the direction is clear.

The order requires CBP to develop a framework involving:

• Minimum levels of tangible domestic assets, bonding, or both.
• An importer of record designation for formal and informal entries.
• Expanded ownership and beneficial ownership information.
• Anticipated import volumes.
• Year of business formation.
• Business affiliations.
• Domestic asset disclosures.
• Good-standing requirements.
• Risk-based importer tiers.
• Enhanced and recurring vetting.

Foreign importers may lose access to informal entry

The order directs CBP to prohibit a foreign importer of record from filing informal entries under the relevant customs rules.

It also directs CBP to apply additional conditions to foreign IORs using formal entry, including:

• Restrictions on using continuous bonds unless CBP is satisfied that revenue and compliance are protected.
• CTPAT validation where the foreign IOR is eligible.
• Use of a CTPAT-validated and licensed customs broker where required.

These changes are particularly relevant to overseas sellers that have been acting as their own importer of record without a substantial U.S. operating presence.

Do not assume that forming a U.S. LLC automatically makes your structure a U.S. IOR. Executive Order 14411 refers to factors including U.S. organisation, location, principal place of business, physical business activity, beneficial ownership, and sufficient tangible U.S. assets.

CBP must provide further guidance. Until then, treat your importer structure as an active compliance risk rather than a completed process.

Build a SKU-level customs data file before your next shipment

Start with a clean customs data master. This will reduce clearance delays and prevent repeated classification errors across Amazon, Shopify, and other sales channels.

For each SKU, record:

1. Product description in plain, specific language.
2. Material or composition.
3. Intended use.
4. Country where the product was manufactured.
5. Country where materials were sourced, where relevant.
6. 10-digit HTSUS classification.
7. Customs value and valuation method.
8. Product weight and quantity.
9. Manufacturer or supplier details.
10. Applicable agency requirements, such as FDA, CPSC, EPA, or USDA rules.

Avoid descriptions such as “gift,” “sample,” “accessory,” or “online order” when they do not accurately explain the goods. CBP has specifically raised concerns about vague descriptions, undervaluation, and misclassification in the low-value e-commerce environment.

Keep supporting documents for your classifications and valuations. Your customs broker may file the entry, but the importer of record remains responsible for the accuracy of the information and the duties owed.

Confirm who is legally acting as the importer of record

Your carrier, fulfilment provider, and marketplace may handle shipping operations. That does not necessarily mean they are your importer of record.

Ask your logistics partners these questions:

• Which entity is named as the importer of record?
• Whose EIN or CBP importer number is used?
• Is the importer registered with CBP?
• Who provides the customs bond?
• Who pays duties, taxes, and fees?
• Who receives post-entry duty bills?
• Who responds to CBP information requests?
• Who retains entry records?
• Does the arrangement remain valid for shipments below $800?
• Does it work for goods sent by post as well as courier or air freight?

The CBP administrative rulings and guidance published in the Federal Register provide additional context. Reviewing these documents will help you understand how the new rules apply to your specific shipping model and what documentation you need to maintain for each entry filed on your behalf.

USA Tax Update: New IRS Business Tax Account Enhancements for International Sellers (August 2026)

by Ariful | Aug 15, 2026 | US Updates

TITLE: IRS Business Tax Account August 2026 Update: What International Sellers Need to Do Now

The IRS has expanded its Business Tax Account (BTA) features for eligible business taxpayers. The August 2026 improvements make it easier to access IRS notices, manage payments, verify business information, and monitor federal compliance online.

These changes do not replace existing filing obligations. International sellers must still assess whether they need to file Form 1120-F, Form 5472, a pro forma Form 1120, or other U.S. returns.

This guide explains what has changed and the practical steps you should take now.

Understand what the August 2026 IRS update changes

The latest BTA enhancements are mainly operational. They improve how you manage your IRS account, but they do not remove your responsibility to file accurate returns on time.

Eligible businesses may now be able to:

• View and download a broader range of digital IRS notices.
• Review recent payments, including returned or refused payments.
• Schedule certain payments up to one year in advance.
• Manage eligible payment plans.
• Store more than one bank account for payment processing.
• Submit certain Offer in Compromise payments online.
• Request a tax compliance check.
• View business details, including the name and address held by the IRS.
• Grant account access to eligible employees.
• Download selected tax transcripts and EIN verification documents.

The IRS has also expanded access to certain notices, including notices relating to EIN verification, filing extensions, refunds, and federal tax deposit discrepancies.

Check your BTA regularly. Digital notices may contain deadlines for responding, paying, or submitting further documents. Missing an online notice can create the same compliance problem as missing a paper notice.

Review the IRS Business Tax Account update for the latest eligibility and access information.

Set up your Business Tax Account access correctly

International sellers often operate through several entities. You may have a UK Limited Company, a U.S. LLC, a U.S. corporation, or a foreign corporation selling into the U.S. Each entity may have separate tax and account responsibilities.

Use this checklist:

1. Identify every U.S.-connected entity.
   Include U.S. LLCs, corporations, branches, and entities used for marketplace, warehouse, fulfilment, or payment activities. This prevents one entity from being overlooked.

2. Confirm the responsible party and authorised users.
   Make sure the correct business official can access the IRS account. Add internal finance staff or compliance providers only where appropriate. This improves continuity when responsibilities change.

3. Verify the legal name, address, and EIN.
   Incorrect IRS records can delay filings, payments, and financial account verification. Download available EIN documentation and retain it with your company records.

4. Add payment controls.
   Review bank accounts saved in the BTA and confirm that payment instructions match the correct legal entity. This reduces the risk of paying the wrong account or missing a federal tax deposit.

5. Create a notice review routine.
   Assign a named person to check the account at least weekly during filing and payment periods. Save every notice and record the action required.

The BTA is a useful compliance tool. It is not a substitute for bookkeeping, transaction reconciliation, or return preparation.

Check whether Form 1120-F applies to your foreign corporation

Form 1120-F is the U.S. Income Tax Return of a Foreign Corporation. A foreign corporation may need to file when it conducts a U.S. trade or business, has effectively connected income, or has certain U.S.-source income that is not fully covered by withholding.

The IRS identifies several situations that may create a filing requirement, including:

• Operating a U.S. branch.
• Conducting regular and continuous profit-seeking activities in the United States.
• Having employees or agents performing business activities in the United States.
• Holding an interest in a U.S. partnership conducting a trade or business.
• Receiving certain U.S.-source income.
• Receiving forms such as Form 1042-S or Form 8805 in circumstances that require a return.

Selling to U.S. customers alone does not automatically answer the question. Your structure, inventory arrangements, contracts, personnel, agents, fulfilment model, and income flows all matter.

Being an importer of record also does not automatically determine your federal income tax filing position. However, importer-of-record responsibilities can provide important evidence about how goods enter the United States and which entity is responsible for customs activity.

If you are one of the us importers of record managing stock, customs entries, and fulfilment, maintain clear records showing:

• Which entity owns the goods.
• Who pays import duties and customs charges.
• Where inventory is stored.
• Who contracts with warehouses and fulfilment providers.
• Which entity records U.S. sales.
• How funds move between related companies.

The IRS Form 1120-F filing responsibilities page explains the main filing circumstances and deadlines.

Record the correct Form 1120-F deadline

Your Form 1120-F deadline depends on whether the foreign corporation has a U.S. office or place of business.

• With a U.S. office or place of business: generally due on the 15th day of the fourth month after the end of the tax year.
• Without a U.S. office or place of business: generally due on the 15th day of the sixth month after the end of the tax year.

For a calendar-year corporation, that commonly means April 15 or June 15, depending on the facts.

You can generally request an extension by filing Form 7004 before the original deadline. An extension gives more time to file. It does not automatically extend the time to pay tax.

A foreign corporation that is uncertain whether it has a U.S. trade or business may also consider whether a protective return is appropriate. This can help preserve the ability to claim deductions and credits if the IRS later determines that a U.S. filing obligation existed.

Treat Form 5472 as a separate compliance priority

Form 5472 is an information return. It reports transactions between a reporting corporation and foreign or domestic related parties.

A reporting corporation can include:

• A U.S. corporation that is at least 25% foreign-owned.
• A foreign corporation engaged in a U.S. trade or business.
• A foreign-owned U.S. disregarded entity, such as a single-member LLC owned by a non-U.S. person.

Common reportable transactions include:

• Capital contributions.
• Owner distributions.
• Intercompany loans.
• Interest payments.
• Inventory purchases and sales.
• Management fees.
• Commissions.
• Reimbursements.
• Rent and insurance payments.
• Transfers of property

IRS Form 5472 and Remittance Tax Updates: What International Sellers Need to Know in 2026

by Ariful | Aug 14, 2026 | US Updates

TITLE: Form 5472 vs the 1% Remittance Tax: A 2026 Guide for Foreign-Owned U.S. LLCs

International sellers using a U.S. LLC face two important compliance topics in 2026: Form 5472 reporting and the new 1% remittance transfer tax.

These rules are separate. Form 5472 is an information return. The remittance tax is an excise tax on certain transfers funded with physical instruments. Understanding the difference will help you avoid costly filing errors and keep your U.S. operations organised.

This guide explains the latest IRS position as of August 2026, including Form 5472 penalties, filing mechanics, enforcement risks, and what the remittance tax means for cross-border ecommerce businesses.

Start with the key distinction: Form 5472 is not a 1% tax

Form 5472 does not charge a percentage on international transfers.

It requires certain foreign-owned U.S. corporations and foreign-owned U.S. disregarded entities to report transactions with related parties. A single-member U.S. LLC owned by a non-U.S. person may fall into this category.

The 1% remittance transfer tax is a separate measure introduced under the One, Big, Beautiful Bill. It generally applies from 1 January 2026 when a remittance transfer from the United States is funded using:

• Cash.
• A money order.
• A cashier’s check.
• Another similar physical instrument.

The IRS announcement on the remittance transfer tax confirms that remittance providers generally collect the tax and report it through Form 720.

Your business does not report this 1% charge through Form 5472.

Check whether your foreign-owned U.S. LLC must file Form 5472

The IRS treats a domestic disregarded entity wholly owned by a foreign person as a separate corporation for limited information-reporting purposes under section 6038A.

This means a foreign-owned single-member LLC may need to file:

1. A pro forma Form 1120.
2. One or more Forms 5472 attached to that filing.

You may have a filing obligation when your LLC has reportable transactions with its foreign owner or another related party. Common examples include:

• Capital contributions from the foreign owner.
• Distributions to the foreign owner.
• Loans to or from the owner.
• Reimbursements between the owner and the LLC.
• Payments for services provided by a related foreign business.
• Payments for intellectual property, software, or other assets.
• Transactions connected with forming, acquiring, dissolving, or disposing of the LLC.
• Non-cash or less-than-full-consideration transactions.

Your marketplace sales to unrelated customers are not automatically Form 5472 transactions. However, the related-party activity supporting your U.S. structure may still create a reporting requirement.

The IRS Form 5472 instructions explain that a separate form is generally required for each related party with reportable transactions.

Prepare for strict processing and Form 5472 penalties

The IRS states that a penalty of $25,000 may apply for each failure to file a complete and correct Form 5472 by the due date.

The penalty may apply when you:

• Do not file Form 5472.
• File it late.
• File it in the wrong manner.
• Submit a substantially incomplete form.
• Fail to keep the required supporting records.

If the failure continues for more than 90 days after the IRS sends a notice, an additional $25,000 penalty may apply for each 30-day period, or part of a 30-day period, for each related party involved. The IRS states that there is no maximum penalty amount for these continuation penalties.

These are the main Form 5472 penalties to monitor in 2026:

• Initial failure: $25,000 per failure.
• Continuing failure: an additional $25,000 for each 30-day period after the 90-day notice period.
• Record-keeping failure: potentially subject to the same initial penalty framework.
• Interest: may continue to accrue on assessed penalties until paid.

The IRS does not describe Form 5472 enforcement as “automated” in its official instructions. However, the fixed-penalty structure and system-based processing mean that you should not rely on an informal grace period. A late or incomplete filing can create significant exposure even where the LLC has little or no taxable income.

Review the IRS international information reporting penalties page for the current penalty treatment and relief procedures.

File Form 5472 with the correct pro forma return

A foreign-owned U.S. disregarded entity generally cannot file Form 5472 by itself.

Instead, attach it to a pro forma Form 1120. The IRS instructions state that the pro forma Form 1120 requires limited information, including the entity’s name, address, and specific identifying items on the first page.

For a foreign-owned U.S. disregarded entity, the IRS currently requires paper or fax filing. The form cannot be filed electronically by the disregarded entity.

The IRS instructions identify the dedicated submission process:

• Write “Foreign-owned U.S. DE” across the top of the Form 1120.
• Attach the completed Form 5472 and any required schedules.
• Fax the filing at the IRS-prescribed number, or mail it to the dedicated Ogden, Utah address.
• Keep evidence of submission, including fax confirmation or tracked delivery records.

You may request additional time by filing Form 7004 by the original due date. An extension gives you more time to file. It does not remove the requirement or automatically correct incomplete information.

For a calendar-year entity, the usual filing deadline is generally in the fourth month after the end of the tax year. Confirm the exact deadline based on the owner’s U.S. tax year and the entity’s filing position.

Build a transaction record before the deadline

Do not wait until filing season to reconstruct your related-party activity.

Maintain a monthly or daily record of transactions involving:

• The U.S. LLC.
• The foreign owner.
• Any parent or sister company.
• Related foreign suppliers.
• Related service providers.
• Related payment accounts.
• Loans and capital accounts.

Your records should reconcile to the bookkeeping system and business bank statements. Keep invoices, agreements, payment references, exchange-rate calculations, loan records, distribution details, and capital contribution evidence.

This process is especially important for international ecommerce sellers. A U.S. LLC may receive marketplace settlements, pay fulfilment providers, purchase inventory, reimburse its owner, and transfer funds across several countries. Without a clear transaction trail, it becomes difficult to distinguish customer sales from related-party funding or distributions.

A structured tax compliance system for ecommerce marketplaces can help you connect payment data, accounting records, and filing requirements.

Understand the 1% remittance transfer tax

The 1% remittance transfer tax began applying to covered tra