How Much Does Form 1120-F Preparation Cost?

Form 1120-F, the US return of a foreign corporation, has no IRS filing fee. Few firms publish a price for preparing one: the only list price we found is Taxes for Expats at $1,100, plus $300 for a state return. We quote 1120-F work in writing after the Diagnostic, because a protective return and a full return for a Canadian company with a US office are different jobs. The expensive outcome is filing too late: a Canadian company that misses the 18-month window can lose its US deductions. Our other published prices are on what cross-border tax help costs.

What does it cost to file Form 1120-F yourself?

Nothing in fees. You file it with the IRS, on paper to Ogden or electronically, and the Form 1120-F instructions list no filing fee. A Canadian company with no gross income because of a treaty exemption completes only the identifying items at the top of page 1 plus a statement or Form 8833. A company with US business income completes the whole return.

The instructions don’t print a separate time estimate for this form; they say only that its burden is approved under the IRS’s business-return control number. The due date depends on whether the company has a US office: the 15th day of the 4th month after year-end if it does, the 15th day of the 6th month if it doesn’t, with Form 7004 for an extension.

Doing it yourself is realistic for the short treaty-exempt version if you’re comfortable with Form 8833. It’s a much harder call for a full return, because the deductions, the interest expense allocation on Schedule I, and the branch profits tax calculation all have their own rules.

What do firms charge to prepare Form 1120-F?

Very few firms publish a price for this return. The one list price we found is $1,100 for Form 1120-F at Taxes for Expats, checked October 18, 2026. We didn’t find a second published 1120-F price, so there’s no fair range to quote, and domestic Form 1120 survey averages aren’t the same work.

Line item	Published price	Source and scope
Form 1120-F, income tax return of a foreign corporation	$1,100	Taxes for Expats fee list
Non-personal state return, if the entity return requires state filing	$300	Taxes for Expats fee list
Form 8833, treaty-based return position disclosure	$150	Taxes for Expats fee list
Form W-8BEN-E	$300	Taxes for Expats fee list
Form 1120-F prepared by Blue Cloud	Quoted in writing after the Diagnostic	Corporate cross-border work has no published starting price

Read a single list price carefully. It tells you what one firm charges for its own scope. It doesn’t tell you whether bookkeeping, the Schedule H and I allocations, the branch profits tax, or a Form 5472 are included, so ask before comparing.

What makes a 1120-F more expensive?

The biggest swing is whether the company is filing a short treaty or protective return or a full return on effectively connected income. After that, the price follows the schedules: deductions allocated under Schedule H, interest expense under Schedule I, the branch profits tax under section 884, and any state returns.

• Protective or treaty-exempt return. The instructions tell a company with limited US activity, or one that decides it owes nothing because its income isn’t attributable to a US permanent establishment, to file a protective return anyway. That’s the cheapest version, and the Form 8833 guide covers when the disclosure is required.
• Full ECI return. Effectively connected income is taxed “at the same 21% tax rate that applies to domestic corporations,” per the instructions. Schedule H is required if any deductions are reported, and Schedule I whenever interest expense is allocable to ECI.
• Branch profits tax. Form 1120-F is where the branch profits tax under section 884 is calculated. The branch versus subsidiary guide explains why many Canadian companies end up with a US subsidiary instead.
• US-source income outside the business. Section I applies only where withholding on non-business US income was wrong or a refund of withholding is claimed.
• Form 5472. A foreign corporation engaged in a US trade or business is a reporting corporation under the Form 5472 instructions if it had reportable related-party transactions. One exception: a foreign corporation with no US permanent establishment under a treaty that timely files Form 8833.
• State returns. Where the entity has to file in a state as well, that return is priced separately; Taxes for Expats lists $300 for one.

What does Blue Cloud charge for Form 1120-F?

There’s no published number. Corporate cross-border files vary too much for a useful starting price, so we quote the 1120-F in writing after the Cross-Border Diagnostic. The quote says which version of the return the company needs, which schedules apply, and whether Form 5472 or a state return comes with it.

The Diagnostic also checks the question that decides the price, which is whether the company has a US trade or business and a permanent establishment at all. A Canadian company selling into the US from Canada, one with a US warehouse, and one holding US real estate land in different places. If you’ve just set up, the EIN guide for a Canadian company covers the number you’ll need to file.

What happens if a Canadian company doesn’t file 1120-F?

It can lose its deductions. Under Treasury Regulation 1.882-4, a foreign corporation gets its deductions and credits against effectively connected income only if the return is filed on time, which generally means within 18 months of the section 6072 due date, or sooner if the prior year’s return is also missing and the IRS mails a notice first. The IRS can waive that only where the company acted reasonably and in good faith.

The usual late-filing penalty applies too. The 1120-F instructions set it at 5% of the unpaid tax for each month or part of a month the return is late, up to 25%, and for a return required to be filed in 2026 that’s more than 60 days late, the minimum is the smaller of the tax due or $525. The base rule is in IRC 6651.

Two more penalties apply to disclosures. Failing to disclose a treaty-based return position on Form 8833 costs a C corporation $10,000 for each failure under IRC 6712. Failing to file a required Form 5472 costs $25,000, plus $25,000 for each 30-day period the failure continues more than 90 days after an IRS notice.

What should I do next?

Before you price anything, work out which return the company needs: none, a protective or treaty-exempt return, or a full return on effectively connected income. Write down where the company’s people, inventory and contracts are, because that’s what decides permanent establishment. Then get the first year filed inside the 18-month window.

• The foreign-owned US business guide covers ECI, branch profits tax and treaty benefits in more depth.
• The W-8BEN-E guide covers the form US customers ask a Canadian corporation for.

This guide is general information, not tax advice for your specific situation. Which points apply, and how, depends on your facts.