Here is a three-minute educational video for my book, International Taxation in America for the Entrepreneur. You can get the first three chapters free by clicking on the right side of this blog.
Form 5471 must be filed by a U.S. person that owns ten percent or more of the stock of a foreign corporation. Schedule O reports that acquisition of the shares of stock.
I have the instructions in big print on the left side of the video and the form on the right side. You can pause the video at any time and zoom in on the instructions.
Page three of the instruction has a nasty surprise. Another nasty surprise is that Form 926 is also required. This form reports assets (including money) transferred to a foreign corporation as capital. It gets worse. This Form 926 can also apply to some loans. Of course, a big IRS penalty applies if you have not filed the form.
If you would like to brainstorm your tax planning or discuss how you can get the IRS penalties abated, then please call me, Brian Dooley CPA, at 949-939-3414 for a free one-hour consultation.