IRS Form 5471 Center

What is IRS Form 5471?

Form 5471 is a US tax information return that must be filed by certain categories of US persons to satisfy the reporting requirements of IRC Sections 6038 and 6046. The Form 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.  Furthermore, specific events, such as acquisition or disposition of stock of a foreign corporation, may also require the filing of the Form.

How complex is Form 5471?

Form 5471 is considered by international tax lawyers as extremely complex, involving various esoteric areas of US international tax law, including potentially Subpart F rules. This information return requires the taxpayers to disclose: extensive corporate information (balance sheet, income statement, E&P adjustments), certain related-party transactions, share ownership information (including any changes), Subpart F income, and other important information.   The size of the corporation does not relieve its US shareholders of the responsibility to report all of the required information (a special relief is granted to the US owners of a dormant foreign corporation).

Furthermore, the Form forces the filers to convert foreign corporate financial statements from a local standard to US GAAP and account for the required E&P adjustments. This can be a very complex process, which may dramatically affect the original foreign financial statements.

Are There Penalties for Form 5471 Non-Compliance?

Yes, failure to file Form 5471 and/or report the information on the Form accurately may result in significant IRS civil and, in exceptional cases, criminal penalties. Contact Sherayzen Law Office for more details as well as for professional help with the abatement of the already imposed IRS penalties.

What Should I Do If I Never Filed Forms 5471 Or Filed Incorrect Forms 5471 in the Past?

If you were subject to Form 5471 requirement, but never filed the required Form or filed an incorrect Form, you should immediately explore your voluntary disclosure options by contacting an international tax firm experienced in Form 5471 voluntary disclosure process.  Sherayzen Law Office is a leader in this field.

Who Can Help Me With My Prior Form 5471 Non-Compliance?

Sherayzen Law Office can help you correct your prior Form 5471 non-compliance, including preparation of all of the delinquent Forms and conducting the entire voluntary disclosure process (including penalty mitigation and reasonable cause disclosures). Oftentimes, the noncompliance with the Form may also be tied to noncompliance with other US international tax requirements (such as reporting of foreign income and filing of other information returns); Sherayzen Law Office can also help you resolve with all of these related issues.

Can Sherayzen Law Office Also Help Me With My Annual Form 5471 Compliance?

Yes, Sherayzen Law Office can help you with all aspects of your annual Form 5471 compliance. Our team consists of experienced international tax professionals who have prepared hundreds of Forms 5471 for clients around the world.

What is My Next Step?

You should contact Sherayzen Law Office as soon as possible to schedule your Confidential Consultation.  Time may be of extreme importance in cases like these.