Form 5471 (Information Return of U.S. Persons With Respect to Certain Foreign Corporations) is a complex IRS form that must be filed by certain U.S. persons who have an interest in or authority over a foreign corporation. The filing requirements are detailed in the instructions for Form 5471, but generally, the following categories of filers are required to submit Form 5471:
There are generally five categories of US citizens who are required to file Form 5471:
1. A US citizen who owns (directly, indirectly, or constructively) 10% or more of the stock of a “section 965 specified foreign corporation” (SFC). An SFC is a “controlled foreign corporation” (CFC) (as described below) or any foreign corporation with respect to which one or more domestic corporations own (directly, indirectly, or constructively) 10% or more of the stock of an SFC;
2. A US citizen who is an officer or director of a foreign corporation in which a “Category 2/Category 3 US person” has acquired 10% or more of the stock or an additional 10% or more of the stock. A “Category 2/Category 3 US person” is a US citizen or resident, a domestic partnership, a domestic corporation, and an estate or trust that is not a foreign estate or trust;
3. A US citizen who (a) acquires stock in a foreign corporation and thereby owns 10% or more of the stock of such corporation, (b) is treated as a “United States shareholder” with respect to a foreign corporation under Internal Revenue Code Section 953(c), (c) becomes a “Category 2/Category 3 US person” while meeting the requirement of owning 10% or more of the stock of a foreign corporation, or (d) disposes of sufficient stock in a foreign corporation to own less than 10% of the stock of such corporation;
4. A US citizen who owns more than 50% of the stock of a foreign corporation; and
5. A US citizen who owns any stock of a CFC. A CFC is a foreign corporation with US shareholders that own (directly, indirectly, or constructively) more than 50% of the stock of such a corporation.
Learn more about Form 5471 here: US Citizen with a Foreign Business: Tax Reporting Requirements