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Form 5471 (Schedule O) is used by taxpayers with certain specified foreign corporations. This accessible version of the form allows taxpayers to provide additional information about their 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 (
Any U.S. citizen, resident, trust, partnership, corporation, or estate that owns at least 10% of a foreign corporation must file Form 5471. (For the sake of simplicity, well refer to all of the above as a U.S. person throughout this article.) This form is filed alongside your annual tax return.
Who must file Schedule O? Non-profit organizations that file Form 990 or Form 990-EZ are generally required to complete Schedule O under specific circumstances. These include: Providing narrative explanations for specific questions on Form 990 or Form 990-EZ.
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.

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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.
Since its introduction in 1962, Form 5471, Information Return of U.S. Persons with Respect to Certain Foreign Corporations, has had a reputation as one of the most notoriously difficult U.S. tax forms to prepare.
Schedule O (Form 5471), Organization or Reorganization of Foreign Corporation, and Acquisitions and Dispositions of its Stock. Foreign corporations that file Form 5471 use this schedule to report the organization or reorganization of a foreign corporation and the acquisition or disposition of its stock.

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