Get Form 5471(Schedule M)(Rev. January 1999). Transactions Between Controlled Foreign Corporation And

A Category 1 filer does not have to file Form 5471 if no U.S. shareholder (including the Category 1 filer) owns, within the meaning of section 958(a), stock in the section 965 SFC on the last day in the year of the foreign corporation in which it was a section 965 SFC and the SFC is a foreign-controlled section 965 SFC ...

Internal Revenue Service (IRS) Form 5471 is required by US Person Shareholders, Directors, and Officers of International/Foreign Corporations who have an ownership interest or control in the entity.

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.

Form 5471 Schedule M reports transactions with the US taxpayer and an extensive group of entities reflected in the different columns therein: Any other domestic corporation or partnership the US person might control. Any other foreign corporation or partnership that the US person might control.

The Internal Revenue Service (IRS) requires U.S. persons to provide information about foreign corporations using Form 5471, Information Return of U.S. Persons with Respect to Certain Foreign Corporations.

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.

To put it simply, any US citizen, corporation, partnership, trust, or estate who has at least 10% ownership of a foreign corporation, is generally required to file Form 5471 at least once, any many have to file Form 5471 every year.

(A U.S. shareholder is any U.S. person who owns or is deemed to own 10 percent or more of all classes of stock entitled to vote.) A U.S. taxpayer who is a shareholder in a CFC must file Form 5471.