IRS Form 5471 and US Persons Who Own Shares in Foreign Corporations

Do you own 10% or more of the shares in a foreign corporation?  Then you may be required to file IRS Form 5471 (“Information Return of U.S. Persons With Respect to Certain Foreign Corporations”).

IRS Form 5471

Form 5471 is a required informational return for certain categories of filers (there are four different categories of U.S. persons who are required to file this form), and is utilized to satisfy the reporting requirements of IRC Sections 6038 and 6046, and applicable regulations. Form 5471 applies to specified US citizens and residents who are shareholders, officers, or directors in certain foreign corporations.  In general, US taxpayers who own 10% or more of the total value or voting percentage of foreign corporations are required to file the form.

The form itself is very complex and requires reporting of significant amounts of corporate information in the accompanying schedules.  Moreover, this reporting usually must meet GAAP requirements.

Contact Sherayzen Law Office NOW for Legal and Accounting Help with Form 5471

This article is intended to give a brief look at some of the important issues surrounding Form 5471, and it should not be construed as legal or tax advice.  If you have further questions regarding the filing of Form 5471 as it pertains to your own tax and accounting circumstance, Sherayzen Law Office offers professional advice in all of your tax and international tax needs.  Call now at (612) 790-7024 to discuss your tax situation with an experienced international business tax lawyer.

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