5471
Taking care of your Expat tax requirements
If you are a US person; an expat living in the US involved with or owning a business entity, then you must file Form 5471. However, form 5471 does not apply to all US persons – only certain persons who are citizens and residents and play key roles of directors, officers and shareholders need to file 5471.
At Sri Reckon, our foreign compliance experts ensure that all your foreign compliance needs are taken care of with ease so you can focus on your core tasks.
Who needs to file Form 5471
The IRS mandates that certain US persons must file form 5471 and it has classified these persons under four main categories
Officer / Director
A US person who is an officer or director in a foreign entity where any US person owns 10% or more of the stock of the entity……
Stock Ownership
A person who becomes a US person while owing 10% or more of stock of a foreign corporation….
Company Control
A US person who had the control of a foreign corporation for a period of 30 days or more………
Shareholder
A US shareholder who owns stock in a foreign corporation controlled by a foreign entity for an uninterrupted period of 30 days at the least and who owned stock on the last day….
Types of entities for 5471
The following US persons and entities are liable to file form 5471:
- US Citizens
- US Residents
- US Partnerships
- US Corporations
Timelines to file 5471
March 15th
For all corporations and businesses
April 15th
For all individual taxpayers who reside in the US
June 15th
For all those who reside abroad
What happens when Form 5471 is not filed or delayed
It is important to note that both Form 5471 and Form 5472 must be filed on time. Both forms must be presented when filing of taxes.
Not Filed
In case Form 5471 is not filed or delayed, the fine can go up to $10,000
Delayed & Not filed
In case the individual/entity has not filed the Form 5471, 90 days after the ‘notice of failure’ sent by IRS, an additional $10,000 is fined for each 30-day period. The maximum fine is $50,000.
Why Choose Us?
Experience the Sri Reckon difference with our expert business tax filing services tailored to your needs.
- Customized assessment and filing of FATCA
- 10+ years of expertise in foreign compliance
- Our experts are up-to-date on new foreign compliance policies
- Assured data safety and confidentiality
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