I.R.C. § 6038 requires U.S. taxpayers to file Form 5471 (Information Return of U.S. Persons With Respect to Certain Foreign Corporations) with their tax returns. The reporting requirements of § 6038, as well as § 6046, require Form 5471 to be filed by certain U.S. persons who are officers, directors, or shareholders in certain foreign corporations.

A person required to file Form 5471 who fails to file the form, or files a late or incomplete form, subjects himself to steep monetary penalties. Also, the statute of limitations on assessment for the taxpayer’s entire return remains open until three years after the required information is submitted to the IRS.

This is a preview of A $10,000 Penalty May Await You If You Fail To File Form 5471 Or 5472. Read the full post (432 words, 1 image, estimated 1:44 mins reading time)

Some U.S. taxpayers may be required by I.R.C. § 6038 to file Form 5471 (Information Return of U.S. Persons With Respect to Certain Foreign Corporations) with their tax returns. To adhere to the reporting requirements of § 6038, as well as § 6046, Form 5471 is required to be filed by certain U.S. persons who are officers, directors, or shareholders in certain foreign corporations.

A person required to file Form 5471 who fails to file the form, or files a late or incomplete form, is not only subject to substantial monetary penalties, but the statute of limitations on assessment for the taxpayer’s entire return remains open until three years after the required information is submitted to the IRS.

This is a preview of About Form 5471. Read the full post (345 words, 1 image, estimated 1:23 mins reading time)