Form 5471 is an “Information Return of U.S. Persons with Respect to Certain Foreign Corporations.” In translation, it is a form that some taxpayers use to report the activities of their foreign organizations. Courtesy of its “informational” status, there is no actual tax liability associated with the filing. Instead, the IRS utilizes it to determine what companies they should audit under laws such as Subchapter F, per se. Although the shortened version only spreads over six pages, this form is known for its numerous schedules. Some of the most important examples include:
- Form 5471 Schedule J
- Form 5471 Schedule M
- Form 5471 Schedule O
- Form 5471 Schedule P
- Form 5471 Schedule H
Even though there are many others, these are the five schedules that people commonly overlook or struggle with. Failing to submit them, however, can lead to hefty penalties and make your entire return inaccurate or incomplete... [learn more]