Information Return of U.S. Persons with Respect to Certain Foreign Corporations (Form 5471)
Information Return of U.S. Persons with Respect to Certain Foreign Corporations or Form 5471 is used by U.S. persons involved in foreign corporations to satisfy federal reporting requirements under Internal Revenue Code (IRC) sections 6038 and 6046.
These are also individuals that hold stock in a foreign corporation or that serve as officers or directors in a foreign corporation.
What are the 5 categories of persons required to file Form 5471?
Category 1: Shareholders of Specified Foreign Corporations (SFCs)- U.S. shareholders owning at least 10% of the total combined voting power of all classes of stock in a specified foreign corporation (SFC).
Category 2: Officers and Directors- U.S. citizens or residents who are officers or directors of foreign corporations in which a U.S. person has acquired at least: 1) 10% of the total value of the corporation’s stock, 2) 10% of the total combined voting power of all classes of stock with voting rights, or 3) an additional 10%, in value or voting power, of the outstanding stock of the foreign corporation.
Category 3: U.S. Persons holding 10% of Stock- These are individuals who hold at least 10% of the total value of the corporation’s stock or combined voting power of all classes of stock with voting rights.
Category 4: Controllers of a Foreign Corporation- U.S. persons who had control of a foreign corporation during the annual accounting period of the foreign corporation.
Category 5: Shareholders of Controlled Foreign Company (CFC)- These are individuals holding at least 10% of total combined voting power of all classes of the CFC’s stock or the total combined voting power or value of shares of all classes of the CFC’s stock.
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