Published On Jul 9, 2020
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What is Form 5471
Form 5471: When a U.S. Taxpayer has a foreign corporation, they may have an IRS reporting requirement. The reporting is not determined by whether any income was generated, or if the business turned a profit.
There are five (5) categories of filers who may be required to file a Form 5471.
The technical name for the form is the Information Return of U.S. Persons With Respect To Certain Foreign Corporations. Unlike other reporting forms such as the FBAR and the Form 8938, the Form 5471 is very comprehensive.
It requires a firm understanding of tax and accounting principles such as assets, liabilities, income, and equity, as well as Subpart F and other more complicated international tax components.The IRS strictly enforces reporting compliance and routinely issues penalties for non-compliance.