What is Form 5471?
IRS form for US shareholders of Controlled Foreign Corporations to report financial information and income inclusions.
Definition
Form 5471, Information Return of U.S. Persons With Respect to Certain Foreign Corporations, must be filed by US persons who are officers, directors, or 10%+ shareholders of certain foreign corporations. The form has multiple categories of filers and requires extensive financial reporting including balance sheets, income statements, and Subpart F/GILTI calculations. It is one of the most complex international tax forms.
Who Needs to Know This?
US persons who are 10% or greater shareholders, officers, or directors of certain foreign corporations, especially Controlled Foreign Corporations (CFCs).
Key Deadline
Filed with annual tax return
Potential Penalties
$10,000 penalty per form per year for failure to file, with additional $10,000 per month after IRS notice (up to $60,000); potential criminal penalties
Related Forms
Common Mistakes to Avoid
- 1Not filing when required due to constructive ownership rules
- 2Incorrectly determining the category of filer
- 3Missing Subpart F or GILTI income inclusions
- 4Not maintaining proper books and records for the foreign corporation
Related Terms
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