QUESTION: I am looking for a compliance guide for a US individual, who
is a non-resident citizen, reporting of foreign partnership income.
The person is a partner in a foreign partnership and performs services
entirely in the foreign country. Any article or guide that would
provide the basic reporting requirements, including foreign currency
translation requirements and required forms to report the income and
expenses, would be much appreciated. I need something to point us in
the right direction in order to sort through the code and regs.

REPLY: If the U.S. person is merely an investor, s/he should receive
a n information form "Schedule K" that is similar to the K-1 for a
U.S. partnership. But your question suggests that your client is
responsible for the disclosure and filing requirements.

One of the most comprehensive guides that I've located is called "U.S.
Tax Aspects of doing Business Abroad" by Michael L. Moore and Edmund
Outslay. It's published by the AICPA. It's about 800+ pages and is
available for $93.75. This guide does include an extensive discusion
of foreign currency translation rules.

It's not clear whether your client is simply a minority member of the
partnership or is responsible for preparing the Form 8865 for foreign
partnerships owned by U.S. persons. I'm not aware of any guides (yet)
that deal with the preparation of this form. However, the AICPA has
also recently published a guide to the preparation of the Form 5471
for U.S. owners of foreign corporations. There is no charge for
members of the tax division. If you are not a member, perhaps a CPA
who is can help you to get a copy. The foreign partnership return is
very similar to the foreign corporation return but it also embodies
most of the elements of the U.S. partnership return on form 1065.

Some additional resources that might be helpful include the following.

IRS Instructions to Form 8865
http://www.irs.gov/pub/irs-pdf/i8865.pdf

Summary Comments About Foreign Partnerships
http://www.offshorepress.com/vkjcpa/foreign-partners.htm

Offshore Tax Strategies: An Introduction to International Tax Law
http://www.offshorepress.com/offshoretax/index.htm

A Summary Guide to International Tax Forms
http://www.offshorepress.com/AICPA/ (Case sensitive)

A Collection of Articles About International Taxes
http://www.offshorepress.com/vkjcpa/articlesindex.htm

Vern Jacobs