How to Prepare IRS Form 5471 - Introduction & Identifying Information

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  • Опубліковано 10 лип 2024
  • This is the first video in a series which covers the preparation of IRS Form 5471 for the 2021 tax year. As a warning, the IRS Form 5471 is easily one of the most complex forms in the IRS' arsenal. There are lots of schedules and complicated rules, so if you are uncomfortable preparing these forms, we highly recommend you consult with tax professional.
    Each schedule has a separate video within the playlist titled "IRS Form 5471 - Beginner Series". A list of all of the videos with links is included in the description below.
    The IRS Form 5471 is filed by U.S. persons that have an interest in a Controlled Foreign Corporation (CFC). The sample Form 5471 covered in this playlist is for a U.S. person that is a majority shareholder (75%) of a Cayman Island's Corporation. The remaining 25% of the stock is owned by a non-U.S. shareholder.
    The CFC invests in various stocks, bonds & other investments, so the earnings of the CFC will constitute Subpart F income, specifically Foreign Personal Holding Company (FPHC) income under Section 954(c).
    The link to the complete playlist and each individual video is below.
    Playlist: • IRS Form 5471 - Beginn...
    Complete list of videos in the tutorial. We recommend watching in the order presented.
    1. Introduction & Page 1 of Form 5471: • How to Prepare IRS For...
    2. Schedule B: U.S. Shareholders: • Schedule B: US Shareho...
    3. Schedule C: Income Statement: • Schedule C: Income Sta...
    4. Schedule F: Balance Sheet: • Schedule F: Balance Sh...
    5. Schedule H: Current E&P: • Schedule H: Current E&...
    6. Schedule I & Worksheet A: Shareholder's Income from FC: • Schedule I: Summary of...
    7. Schedule G: Other Information: • Schedule G: Other Info...
    8. Schedule E: Income & Taxes Paid: • Schedule E: Income Tax...
    9. Schedule E-1: Taxes Related to Type of Income: • Schedule E-1: Taxes Pa...
    10. Schedule M: Related Party Transactions: • Schedule M: Transactio...
    11. Schedule I-1: GILTI: • Schedule I-1: Global I...
    12. Schedule J: E&P of Corporation: • Schedule J: Accumulate...
    13. Schedule P: Previously Tax E&P of US Shareholder: • Schedule P: Previously...
    14. Schedule Q: CFC Income by Groups: • Schedule Q: CFC Income...
    15. Schedule O: Organization & Stock Acquisition: • Schedule O Part 1 & 2:...
    16. Category 3 Indebtedness Statement: • Category 3: Indebtedne...
    17. Schedule R: Dividend Distributions: • Schedule R: Distributi...
    18. Where to Report Subpart F Inclusion: • Where to Report Subpar...
    For a larger database of tutorials, please visit our website and search for your question:
    knottlearning.com/
    DISCLAIMER: The information provided in this video may contain information about tax, financial, and legal topics. Such materials are for informational purposes only and may not reflect the most current developments. These informational materials are not intended and should not be taken as tax, financial, or legal advice. You should contact an advisor to discuss your specific facts and circumstances. Self-help services may not be permitted in all states or jurisdictions. The use of these materials does not create an attorney-client or confidential relationship. This video does not include information about every topic or issue related to these informational materials.
    #Form5471 #ControlledForeignCorporation #CFC #SubpartF

КОМЕНТАРІ • 47

  • @eddieyoon7859
    @eddieyoon7859 Рік тому +12

    This instructions are basically what I have been looking for for the past month. Your hard work on making such valuable contents is greatly appreciated.

    • @JasonDKnott
      @JasonDKnott  Рік тому +1

      You’re welcome. I’m glad to hear the videos are helpful!

  • @franksimpson5451
    @franksimpson5451 Рік тому +2

    Jason, you are a "Savior"!!! Your video's are awesome.. I just got hired by a CPA firm as a Staff Accountant. I have worked in the Public sector before years ago, but now I have to brush up on the basics. I accidentally stumbled upon your video. I have never seen such clean, clear, and precise instructions. Thank you so much.

    • @JasonDKnott
      @JasonDKnott  Рік тому

      Glad to help. Best of luck with your new position!

  • @safinacc.official
    @safinacc.official Рік тому +2

    I have searched for a long time and never found the answers. This video is AMAZING and extremely Helpful. Very grateful for your time. Thank you!

    • @JasonDKnott
      @JasonDKnott  Рік тому

      You're welcome. I'm happy to hear the videos are helpful.

  • @tristannguyen4295
    @tristannguyen4295 Рік тому +1

    Thanks Jason for your great videos. Your channel is one of the channels I am take a look at the first moment when trying to understand tax laws and forms. You understand well both legal and accounting sides so your explaining is clearly and precisely.

  • @pavelmoshkalov8789
    @pavelmoshkalov8789 Рік тому +3

    Jason - thank you for all your time and effort in making the videos on this topic - these are seriously some of the best instructions on the forms out there!

    • @JasonDKnott
      @JasonDKnott  Рік тому

      I'm glad they are helpful. Thanks for watching!

  • @jordanmcgregor5034
    @jordanmcgregor5034 Рік тому +1

    Thank you so much Jason for creating this video series. You saved me a considerable amount of time and expense by clearly explaining how to complete this overly-complex IRS form. Will certainly reach out to you/your firm if I require more specific advice in the future. Much appreciated!

  • @genggui
    @genggui Рік тому +1

    excited! Glad u r back!

  • @kevindurtanula
    @kevindurtanula 9 місяців тому

    Jason- This is a very helpful video - thank you very much!

  • @genggui
    @genggui Рік тому +1

    I appreciate your content and it really helps me a lot!

    • @JasonDKnott
      @JasonDKnott  Рік тому

      Thank you so much! I'm happy to hear they are helpful.

  • @alexs3202
    @alexs3202 Рік тому +1

    Thank you so much for your detailed explanation!

  • @raquelx7807
    @raquelx7807 Рік тому +1

    Greetings, From Costa Rica. I am E. A I love how you explain, and the points you talked about are essential for the form, so from the bottom of my heart, thank you. I learn a lot! 👍

    • @JasonDKnott
      @JasonDKnott  Рік тому

      Thank you for watching. I'm glad the video was helpful.

  • @alexcolombu1025
    @alexcolombu1025 Рік тому +1

    Subcribed! This Jason guy is awesome.

  • @weiwang4495
    @weiwang4495 3 місяці тому

    This serials is great video, but honestly you should use a more typical company doing normal business, that will be much more helpful for beginners to know how to file for a common foreign business. Thank you again!

  • @vickent2475
    @vickent2475 6 місяців тому +1

    Thanks Jason!

  • @vijjukumar5302
    @vijjukumar5302 Рік тому +1

    thank you for the effort .

  • @ymzhang4637
    @ymzhang4637 Рік тому +1

    This is super helpful.

  • @tsu7968
    @tsu7968 Рік тому +1

    Thank you!

  • @JongYook
    @JongYook Рік тому +1

    감사합니다.

  • @julienetostes-kurz4114
    @julienetostes-kurz4114 Рік тому

    Hi Jason thank you SO MUCH for all your effort putting out these videos. I watch already almost them all. But l have a question. I live over seas for many years and l have a home base online shop. Do l need to file Form 5471 also?

  • @nadiamoneva1489
    @nadiamoneva1489 Рік тому

    Thanks for these helpful videos! Going to check them all out. Just selecting the correct category filer is confusing to me. If you already own 30% of CFC, are you a category 3 filer? Or you are category 3 only in the year of the acquisition of the 30%?

  • @davidsaenz9293
    @davidsaenz9293 Рік тому

    Great video. If you have two brother that each own 50% each of the foreign corporation are they considered to have control. Even though no one owns more than 50%

  • @seansylvester5135
    @seansylvester5135 5 місяців тому

    Hi Jason, great video. Question on the 5471, if the filer (taxpayer) owns 50% of a foreign corp and another US citizen owns 50% of the foreign corp, does the taxpayer need to list the other owners name, social and ownership percentage on the 5471 he (taxpayer) is filing?

  • @Bmwm3887
    @Bmwm3887 6 місяців тому

    I am reporting UK limited company based on fiscal year for an American individual who files corporation form 5471 in the US. My question is does US GAAP allows fiscal year for UK limited company who is reporting financial transactions in a US corporation form and does the financial statements needs to be converted to match US calander year or can the fiscal year numbers gets reported under US GAAP directly on Sch C and Sch F without any apportioning? If yes, is there a code under US GAAP you can direct me to please?

  • @Mrspaige81
    @Mrspaige81 2 місяці тому

    If a married filing joint own the foreign corp, Do i have to file 2 5471's or can I just file one and report both shareholders?

  • @janeli5422
    @janeli5422 Рік тому

    Hi Jason, If a foreign corporation is not engaged in a trade or business within the United States and with no income, do i still need to file 5471?

  • @elijahshockeyworld2016
    @elijahshockeyworld2016 Рік тому +1

    Hi Jason - great video - I'm a US citizen who is 50/50 in a foreign corp with a non US-person. So I believe that is NOT a CFC. However , i'm over 10% ownership. Does that mean I have to file a form 5471? Thanks.

  • @NikhilKumar-eg6su
    @NikhilKumar-eg6su Рік тому

    Hi Jason, Fake offshore company ltd's business activity is in to investments,then interest, dividends, and other incomes come into General category of income for the entity, how come these are subpart F income for the entity?

  • @mikemc1009
    @mikemc1009 Рік тому

    What's the fee to prepare a "simple" 5471 like you are demonstrating here? Ballpark?

  • @JongYook
    @JongYook Рік тому +1

    Could you make a tutorial for Form 3520 and 3520-A ?

    • @JasonDKnott
      @JasonDKnott  Рік тому

      Yes! We can certainly add some tutorials on foreign trust reporting.

  • @vansree
    @vansree Рік тому +1

    Quick question: What schedules of 5471 I have to fill ? If I fill only 5471 (without schedules), will that be ok? Please advice
    a) Funds exists in the bank and interest income from these. Used to cover the previous years company loss. Dormant company i.e., not active. No other income.
    b) Canadian company, 100% owned, Category 4 type filer based on your video.
    Thanks in Advance, Excellent presentation!

    • @JasonDKnott
      @JasonDKnott  Рік тому +1

      You should file the Form 5471 with all of the schedules required for the type of category of filer. Even if the schedule will show all zeroes, it is still required per the instructions. It is not uncommon for U.S. shareholders of a CFC to file a Form 5471 with many schedules that have zero values.

    • @vansree
      @vansree 8 місяців тому

      @@JasonDKnott Thank you for the reply! Sorry my bad, I was not clear.
      (a) My foreign company is a dormant company, generates less than 5000 dollar revenue/income/receipts...
      (b) Unfortunately Turbotax Individual do not support. I have to print and send the whole return. Is it ok, to do e-file individual tax return and send Form 5471 alone later to IRS?
      TIA