What is form 5471-2025

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Any US person that owns directly, indirectly, or constructively 10% or more of the voting power or the value of the shares of a foreign corporation is a shareholder for the purpose of Form 5471.
Should a US corporation with net operating losses still be concerned? FormDescriptionPrice Form 5471 Base price $600 Additional Schedule I and Schedule P for reporting on behalf of another U.S. Shareholder: combined $150 Sec 965 Transition tax $500 GILTI tax reduction analysis (Sec 962 more) $65011 more rows
Form 5471 is a complex form that keeps tabs on which US citizens and residents own a foreign corporation. Depending on how much the company is owned by US shareholders, it can either be an informational form or result in potential GILTI taxation.
Certain U.S. citizens and U.S. residents who are officers, directors, or shareholders in certain foreign corporations (including specified foreign corporations (SFC) in IRC 965) are responsible for filing Form 5471, Information Return of U.S. Persons With Respect to Certain Foreign Corporations.
If a taxpayer fails to timely file Form 5471, the IRS may assert a $10,000 penalty for each failure for each applicable annual accounting period, plus an additional $10,000 for each month the failure continues, beginning 90 days after the taxpayer is notified of the delinquency, up to a maximum of $60,000 per return (
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One example that would trigger an obligation to file a Form 5471 is if a corporation has had more than a 10 percent change in ownership. However, there are categories which apply to officers of a corporation as well so you may want to look further to determine whether your particular circumstances require you to file.
Lets take a look at a few common ways a taxpayer may be able to minimize Form 5471 Filing: Dormant Corporation. When a foreign corporation is dormant, then there are much more limited requirements for filing and reporting. Multiple Filers, Same Information. Certain Constructive Owners.

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