Form 5471: Information Return of U.S. Persons With Respect to Certain Foreign Corporations

Form 5471 is used by certain U.S. persons to report information about their ownership, control, or transactions involving certain foreign corporations.

Found what you need? Contact us today.

Introduction

Form 5471 is a federal information return used by certain U.S. persons who have an ownership interest in, control over, or certain transactions with a foreign corporation. The form provides information about the foreign corporation and its relationship with the U.S. person.

Form 5471 can involve detailed information about a foreign corporation’s income, assets, ownership, transactions, and distributions. The specific filing requirements depend on the taxpayer’s relationship with the foreign corporation and the type of activity involved.

What Is Form 5471?

Form 5471 is an information return used by certain U.S. persons to report information about certain foreign corporations. It is generally filed with the taxpayer’s federal income tax return when required.

Form 5471 may include information such as:

Foreign corporation identification information
U.S. shareholder information
Ownership information
Changes in ownership
Foreign corporation income
Foreign corporation assets and liabilities
Distributions and dividends
Transactions between the foreign corporation and related persons
Earnings and profits
Other financial and tax information

Different categories of filers may have different Form 5471 filing requirements.

Who Uses Form 5471?

Form 5471 may be required for certain U.S. citizens, resident aliens, domestic corporations, partnerships, estates, trusts, and other U.S. persons who meet applicable ownership, control, or transaction requirements involving a foreign corporation.

Form 5471 may be relevant to:

U.S. shareholders of certain foreign corporations
U.S. persons who control certain foreign corporations
Certain officers or directors of foreign corporations
U.S. persons who acquire or dispose of certain foreign corporation stock
U.S. persons involved in certain transactions with foreign corporations
Certain U.S. persons with interests in controlled foreign corporations

Not every U.S. person with a foreign corporation connection is required to file Form 5471. The filing requirements depend on the person’s category of filer and the circumstances involving the foreign corporation.

What Information Is Needed?

The information needed to complete Form 5471 generally includes information about the U.S. person, the foreign corporation, ownership interests, financial activity, income, assets, liabilities, distributions, and transactions. The specific information required depends on the category of filer and the schedules that apply.

You may need:

Your name and taxpayer identification information
Foreign corporation name and identifying information
Foreign corporation address
Country where the foreign corporation was organized
Type of foreign corporation
Stock ownership information
Information about changes in ownership
Foreign corporation income information
Foreign corporation asset and liability information
Dividend and distribution information
Related-party transaction information
Earnings and profits information
Supporting corporate and financial records

Keep records supporting the information reported on Form 5471.

How to Fill Out/Complete Form 5471

Form 5471 contains multiple schedules that are used to report different types of information about a foreign corporation. The schedules that need to be completed depend on the taxpayer’s filing category and the circumstances involving the foreign corporation.

Complete the applicable schedules using the foreign corporation’s corporate, financial, ownership, and tax records. Not every schedule will apply to every Form 5471 filer.

Schedule A

Schedule A generally provides information about the foreign corporation’s stock. This can include information about the classes of stock, number of shares, and other ownership details.

Provide the applicable stock information using the foreign corporation’s records and make sure the information agrees with the ownership information reported elsewhere on the form.

Schedule B

Schedule B generally provides information about the shareholders of the foreign corporation and certain changes in ownership. Information may include the names, addresses, and ownership interests of applicable shareholders.

Report the requested shareholder and ownership information accurately and maintain records supporting ownership changes and stock transactions.

Schedule C

Schedule C generally reports the income statement of the foreign corporation. It may include information about income, expenses, gains, losses, and other financial activity.

Use the foreign corporation’s financial records to complete the applicable income statement information and make sure the amounts are supported by the corporation’s records.

Schedule D

Schedule D generally reports changes in the foreign corporation’s earnings and profits. The schedule may include information about distributions, earnings, and other adjustments.

Complete the applicable information using the foreign corporation’s accounting and tax records. Review the calculations for consistency with other applicable schedules.

Schedule E

Schedule E generally reports information about taxes paid or accrued by the foreign corporation. This can include foreign income taxes and other applicable taxes.

Use available foreign tax records and supporting documentation when completing this schedule. Make sure the reported amounts agree with the corporation’s records.

Schedule F

Schedule F generally reports the balance sheet of the foreign corporation. It may include information about assets, liabilities, and other financial balances.

Complete the applicable balance sheet information using the foreign corporation’s financial records and supporting documentation.

Schedule G

Schedule G generally provides additional information about the foreign corporation and its activities. The questions may address ownership, transactions, elections, reorganizations, or other matters relevant to the foreign corporation.

Answer the applicable questions based on the foreign corporation’s records and the taxpayer’s circumstances. Provide additional information when required.

Schedule H

Schedule H generally reports current earnings and profits information for the foreign corporation. The schedule can be used to provide information needed to determine applicable earnings and profits.

Complete the applicable calculations using the foreign corporation’s accounting and tax information and retain supporting records for the amounts reported.

Schedule I

Schedule I generally reports certain income or other information relating to the U.S. shareholder’s interest in the foreign corporation. The applicable information can depend on the foreign corporation and the U.S. shareholder’s circumstances.

Report the required amounts using the information from the foreign corporation and the taxpayer’s records. Make sure the information is consistent with the applicable schedules and tax return.

Schedule J

Schedule J generally reports accumulated earnings and profits information for the foreign corporation. The schedule may be used to track earnings and profits and related adjustments over time.

Complete the applicable information using the corporation’s historical and current records. Retain documentation supporting the amounts and adjustments reported.

Schedule M

Schedule M generally reports certain transactions between the foreign corporation and its shareholders or other related persons. Transactions may include amounts involving related parties, contributions, distributions, loans, or other applicable activities.

Review the corporation’s transaction records and identify the applicable transactions before completing the schedule. Make sure reported amounts agree with the corporation’s books and supporting documentation.

Additional Schedules and Information

Depending on the taxpayer’s filing category and the foreign corporation’s activities, additional schedules or information may be required. The applicable Form 5471 schedules can vary based on ownership, control, transactions, income, and other circumstances.

Review the completed form to make sure all schedules that apply to the taxpayer’s filing category have been completed and that required supporting information is included.

Final Review

Review Form 5471 after completing all applicable sections and schedules. Check the U.S. person information, foreign corporation information, ownership information, shareholder information, stock information, income, assets, liabilities, earnings and profits, foreign taxes, distributions, related-party transactions, applicable schedules, supporting records, and final information reported.

A final review can help identify reporting errors before the form is submitted. U.S. persons should retain Form 5471, foreign corporation records, ownership records, financial statements, accounting records, stock records, transaction records, tax documents, and other supporting records with their tax records.

Common Mistakes

Common Form 5471 mistakes can result from misunderstanding the filing category, incomplete ownership information, incorrect financial information, or failing to complete all applicable schedules. Because Form 5471 requirements can vary based on the taxpayer’s relationship with the foreign corporation, the correct filing category should be determined before preparing the form.

Some common issues include:

Failing to recognize that Form 5471 may apply
Using the wrong filing category
Reporting incorrect ownership information
Failing to report changes in ownership
Reporting incorrect foreign corporation income
Reporting incorrect assets or liabilities
Incorrectly reporting dividends or distributions
Failing to report applicable related-party transactions
Leaving applicable schedules incomplete
Using inconsistent information between Form 5471 and the tax return
Failing to maintain supporting corporate and financial records

Review the completed Form 5471 carefully and make sure the information agrees with the foreign corporation’s records and other applicable tax filings.

Related IRS Forms

Form 5471 may be associated with other federal tax forms depending on the taxpayer’s ownership interest, foreign corporation activities, income, transactions, and other circumstances. Additional forms may be required to report foreign financial interests, foreign assets, foreign partnerships, or other international activities.

Commonly related forms may include:

Form 1040, U.S. Individual Income Tax Return
Form 1120, U.S. Corporation Income Tax Return
Form 8858, Information Return of U.S. Persons With Respect to Foreign Disregarded Entities and Foreign Branches
Form 8865, Return of U.S. Persons With Respect to Certain Foreign Partnerships
Form 8938, Statement of Specified Foreign Financial Assets
Form 926, Return by a U.S. Transferor of Property to a Foreign Corporation
Other forms or schedules that may apply to foreign corporations or international tax matters

The forms required will depend on the taxpayer’s individual circumstances and the activities of the foreign corporation.

Where to File or Submit

Form 5471 is generally filed with the taxpayer’s federal income tax return when applicable. The form is generally attached to the applicable federal return rather than filed as a completely separate tax return.

The appropriate filing method can depend on the taxpayer, the type of federal return being filed, and the applicable filing requirements. Review the requirements applicable to the reporting period before submitting Form 5471.

Current IRS Form & Instructions

Use the Form 5471 and instructions that apply to the tax year being filed. Federal tax forms and instructions may be revised over time, so taxpayers should use the appropriate version for the applicable reporting period.

The general information on this page is intended to remain useful across multiple tax years. Specific filing categories, reporting requirements, definitions, calculations, schedules, and other details may change and should be reviewed for the applicable tax year.

Important Information / Disclaimer

This Form 5471 guide is provided for general informational purposes only and is not tax, legal, or accounting advice. Foreign corporation reporting requirements can be complex, and the filing requirements may depend on ownership, control, transactions, income, corporate structure, and other circumstances.

Taxpayers should review the requirements applicable to the tax year being reported and consider consulting a qualified tax professional when dealing with foreign corporations or other complex international tax matters. This page is intended as a general educational guide and should not be used as a substitute for reviewing the applicable tax forms, instructions, and tax rules.