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Category 1b filer is an unrelated Section 958(a) U.S. shareholder. A Category 1b filer is an unrelated person who would not control (more than 50% vote or value) the SFC or be controlled by the same person which controls the SFC. Category 1c filer is a related constructive U.S. shareholder.
We strongly advise you to complete and file Forms 5471 and 1040 together, even if you hire a preparer to do it for you. Most tax preparers will recommend this rather than relying on the client to report that additional information to the IRS separately.
Form 5471. This is the Return of US Persons With Respect to Certain Foreign Corporations and is used by officers, directors or shareholders to report their interest in foreign corporations. We charge $620 USD to complete this form for active foreign companies and we charge $250 USD for Dormant foreign companies.
The IRS estimates that it takes approximately 38 hours on average to prepare Form 5471 (aside from the record keeping time and the time required to learn about the relevant law and instructions). The learning time could be much longer for someone who is not familiar with the pertinent sections of the tax law.
A $10,000 penalty is imposed for each annual accounting period of each foreign corporation for failure to furnish the required information within the time prescribed.
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Foreign forms e-filing requirements (5471, 5472 ) for corporate and consolidated e-filing. It is mandated that all international forms and the schedules associated with them: Be included in the electronic file in XML format.
At this time, we only support the creation and electronic filing of five copies of Form 5471. If the return requires more than five copies of the form, the only option is to manually complete the additional copies and attach them to the return. In this case, you must paper file the return.

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