U.S. Tax Services For Expats

  The 5471 is often regarded as one of the most complicated U.S. tax forms. Form 5471 is often regarded as one of the most complicated U.S. tax forms. Used by US persons to report their ownership interest in a foreign corporation and calculate how much of foreign a corporation’s earnings would potentially end up as additional income on a U.S. taxpayer’s income tax return. However, even if a U.S. person owns shares in a foreign corporation, it does not necessarily mean that there will be a Form 5471 filing requirement in every tax year. A filing requirement exists if a U.S. person falls within at least one of five Form 5471 filing categories. Without going in details about each of the filing categories (they will be covered in subsequent posts), below is the list of the most common situations that give rise to Form 5471 filing requirement: a) Acquisition of more than 10% interest in a foreign corporation during the tax year. b) Acquisition of new interest during the tax year which, ...