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Do I have to fill in form 5471 at all? A Wieser 03-11-2008
Posted by A Wieser on March 11, 2008, 1:54 pm
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 I still can't figure out for the life of me whether I have to fill in 5471
or not, and which sections.

The instructions are titled:
"Information Return of U.S. Persons
With Respect to Certain Foreign Corporations"

Certain Foreign Corporations implies that it's not necessary for the
majority of Foreign Corporations.

Which subset of Foreign Corporations is it necessary for?

Tony

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Posted by Alan on March 11, 2008, 2:26 pm
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 A Wieser wrote:
> I still can't figure out for the life of me whether I have to fill in
> 5471 or not, and which sections.
>
> The instructions are titled:
> "Information Return of U.S. Persons
> With Respect to Certain Foreign Corporations"
>
> Certain Foreign Corporations implies that it's not necessary for the
> majority of Foreign Corporations.
>
> Which subset of Foreign Corporations is it necessary for?
>
> Tony
>
Who Has To File is defined in the instructions (too long to print
here). Typically, it's someone who owns 10% of a foreign corp. or
adds 10% ownership or adds enough to get to 10% ownership or
someone who controls a foreign corp.
http://www.irs.gov/pub/irs-pdf/i5471.pdf

--
<< ------------------------------------------------------- >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2007) - All rights reserved. >>
<< ------------------------------------------------------- >>

Posted by A Wieser on March 11, 2008, 3:28 pm
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>A Wieser wrote:
>> I still can't figure out for the life of me whether I have to fill in
>> 5471 or not, and which sections.
>>
>> The instructions are titled:
>> "Information Return of U.S. Persons
>> With Respect to Certain Foreign Corporations"
>>
>> Certain Foreign Corporations implies that it's not necessary for the
>> majority of Foreign Corporations.
>>
>> Which subset of Foreign Corporations is it necessary for?
>>
>> Tony
>>
> Who Has To File is defined in the instructions (too long to print here).
> Typically, it's someone who owns 10% of a foreign corp. or adds 10%
> ownership or adds enough to get to 10% ownership or someone who controls a
> foreign corp.
> http://www.irs.gov/pub/irs-pdf/i5471.pdf
>
> --

So if I own 10% or more as a us citizen in a foreign corporation, I have to
file, as a category 3 filer right? If so, which of the 5 bullet points is
it that deem me to have to file? I was reading the first point as having to
file in the year you first acquire the stock, not every year you hold the
stock.

Perhaps I don't understand the legal term acquire.

Tony


Tony

--
<< ------------------------------------------------------- >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2007) - All rights reserved. >>
<< ------------------------------------------------------- >>

Posted by Alan on March 11, 2008, 4:45 pm
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A Wieser wrote:
> [snip]
>
> So if I own 10% or more as a us citizen in a foreign corporation, I have
> to file, as a category 3 filer right? If so, which of the 5 bullet
> points is it that deem me to have to file? I was reading the first
> point as having to file in the year you first acquire the stock, not
> every year you hold the stock.
>
> Perhaps I don't understand the legal term acquire.
>
> Tony
Acquire means you become the owner by any means (purchase, gift,
inherit, etc.).

You file for the year you acquire enough stock to meet the 10%
interest.
You file for any year you acquire 10% of the stock (this
disregards what you already own).
You file for the year in which your disposal of stock drops you
below the 10% interest.
If you are a non-US person, you file for the year in which you
become a US person and meet the 10% ownership requirement.
You file in any year in which you own stock in certain foreign
captive insurance companies. (Sec. 953(c) US shareholder)

--
<< ------------------------------------------------------- >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2007) - All rights reserved. >>
<< ------------------------------------------------------- >>

Posted by jmail7 on March 12, 2008, 9:24 am
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> You file for the year you acquire enough stock to meet the 10%
> interest.
> You file for any year you acquire 10% of the stock (this
> disregards what you already own).
> You file for the year in which your disposal of stock drops you
> below the 10% interest.
> If you are a non-US person, you file for the year in which you
> become a US person and meet the 10% ownership requirement.
> You file in any year in which you own stock in certain foreign
> captive insurance companies. (Sec. 953(c) US shareholder)

I agree with what Alan has said. Also, if the foreign corporation is
controlled by U.S. persons (i.e., it is a controlled foreign
corporation), then you would need to file every year that you at least
10%.

--
<< ------------------------------------------------------- >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2007) - All rights reserved. >>
<< ------------------------------------------------------- >>

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