what is foreign disregarded entity
A foreign disregarded entity is treated as a foreign branch of a U.S. corporation for U.S. tax purposes. The IRS defines a foreign disregarded entity (DE) as an âentity that is not created or organized in the United States and that is disregarded as an entity separate from its owner for U.S. income tax purposes.â.ts DE or unincorporated branch; and. An affiliated U.S. corporationâs foreign branch or disregarded entity. All of the income of a foreign branch is included in the taxable income of its owner regardless of whether any of the income is actually distributed to the owner.