Instructions for IRS Form 5471 "Information Return of U.S. Persons With Respect to Certain Foreign Corporations"

This document contains official instructions for IRS Form 5471, Information Return of U.S. Persons With Respect to Certain Foreign Corporations - a tax form released and collected by the Internal Revenue Service (IRS), a subdivision of the U.S. Department of the Treasury. An up-to-date fillable IRS Form 5471 Schedule O is available for download through this link.

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Instructions for Form 5471
Department of the Treasury
Internal Revenue Service
(Rev. January 2021)
(Use with the December 2020 revision of Form 5471 and separate Schedules E, H,
J, P, Q, and R; the December 2019 revision of separate Schedule I-1; the December
2018 revision of Schedule M; and the December 2012 revision of separate Schedule
O.)
Information Return of U.S. Persons
With Respect to Certain Foreign Corporations
Proc. 2019-40 provides relief for certain
for future use” and the related entry space
Section references are to the Internal Revenue
Code unless otherwise noted.
types of category 5 filers. These
has been shaded.
instructions clarify that this relief is
Contents
Page
On page 6 of Form 5471, Schedule I,
extended to similarly situated category 1
line 5 has been deleted and replaced with
Future Developments . . . . . . . . . . . .
1
filers. See
Certain Category 1 and
new lines 5a through 5e in order to assist
What’s New . . . . . . . . . . . . . . . . . .
1
Category 5 Filers
for details.
certain U.S. shareholders in computing
General Instructions . . . . . . . . . . . . .
3
On page 1 of Form 5471, lines F and G
certain dividends, inclusions, and special
Purpose of Form . . . . . . . . . . . . . . .
3
are new. The checkbox on new line F
deductions requested on Schedule C of
Who Must File . . . . . . . . . . . . . . . .
3
must be checked if Form 5471 has been
their income tax return. New line 5a
When and Where To File . . . . . . . . .
3
completed using alternative information
requests section 245A eligible dividends.
Categories of Filers . . . . . . . . . . . . .
3
under Rev. Proc. 2019-40. See the
See the specific instructions for
Exceptions From Filing . . . . . . . . . . .
5
specific instructions for
Item F
for details. If
Schedule I,
Line
5a, for details. New
Additional Filing Requirements . . . . . .
6
the box on line F is checked, a code is
line 5b requests extraordinary disposition
required on line G to identify the type of
amounts. See the specific instructions for
Penalties . . . . . . . . . . . . . . . . . . . .
6
alternative information. See the specific
Schedule I,
Line
5b, for details. New
Other Reporting Requirements . . . . . .
7
instructions for
Item G
for details. As a
line 5c requests extraordinary reduction
Specific Instructions . . . . . . . . . . . . .
8
result of the insertion of new lines F and G,
amounts. See the specific instructions for
Schedule B . . . . . . . . . . . . . . . . .
10
formerly line F, has been re-designated as
Schedule I,
Line
5c, for details. New
Schedule C . . . . . . . . . . . . . . . . .
10
line H.
line 5d requests section 245A(e)
Schedule F . . . . . . . . . . . . . . . . .
11
dividends. See the specific instructions for
On page 1 of Form 5471, Item 1h now
Schedule G . . . . . . . . . . . . . . . . .
11
Schedule I,
Line
5d, for details. New
requests a three-letter functional currency
Schedule I . . . . . . . . . . . . . . . . . .
15
line 5e requests dividends not reported on
code. See the specific instructions for
Item
Instructions for Separate
line 5a, 5b, 5c, or 5d. See the specific
1h, later, for details.
Schedules . . . . . . . . . . . . . . .
23
instructions for Schedule I,
Line
5e, for
On page 5 of Form 5471, two new
Schedule E . . . . . . . . . . . . . . . . .
23
details.
questions have been added to
Schedule E-1 . . . . . . . . . . . . . . . .
27
On page 6 of Form 5471, the two
Schedule G. New Question 22a asks if
Schedule H . . . . . . . . . . . . . . . . .
29
bulleted items at the end of Schedule I of
any extraordinary reduction with respect to
Schedule I-1
. . . . . . . . . . . . . . . .
29
the prior revision of Form 5471 (questions
a controlling section 245A shareholder
Schedule J
. . . . . . . . . . . . . . . . .
31
pertaining to blocked income of the foreign
occurred during the tax year. See the
Schedule M . . . . . . . . . . . . . . . . .
33
corporation) have been designated as
specific instructions for Schedule G,
new lines 7a and 7b. The questions and
Schedule O . . . . . . . . . . . . . . . . .
33
Question
22a, for details. New Question
related attachment requirement remain
Schedule P . . . . . . . . . . . . . . . . .
34
22b asks, if the answer to Question 22a is
unchanged from the previous revision of
Schedule Q . . . . . . . . . . . . . . . . .
35
"Yes," was an election made to close the
the form.
Schedule R . . . . . . . . . . . . . . . . .
38
tax year such that no amount is treated as
an extraordinary reduction amount or
On page 6 of Form 5471, Schedule I,
Future Developments
tiered extraordinary reduction amount.
lines 8a through 8c are new. New line 8a
See the specific instructions for
asks if the U.S. shareholder had an
For the latest information about
Schedule G,
Question
22b, for details.
extraordinary disposition account with
developments related to Form 5471, its
respect to the foreign corporation at any
schedules, and its instructions, such as
On page 6 of Form 5471, Schedule I,
time during the tax year. See the specific
legislation enacted after they were
lines
1c
and
1d
are new. New line 1c
instructions for Schedule I,
Line
8a, for
published, go to IRS.gov/Form5471.
requests subpart F income from tiered
details. New line 8b requests the U.S.
extraordinary disposition amounts not
What’s New
shareholder’s extraordinary disposition
eligible for subpart F exception under
account balance at the beginning and end
section 954(c)(6). See the specific
of the CFC year. Line 8b also requests an
Changes to Form 5471. On page 1 of
instructions for Schedule I,
Line
1c, for
attachment detailing any changes from the
Form 5471, item B (category of filer), the
details. New line 1d requests subpart F
beginning and ending balances. See the
checkbox for category 1 has been deleted
income from tiered extraordinary reduction
specific instructions for Schedule I,
and replaced with checkboxes for new
amounts not eligible for subpart F
Line
8b, for details. New line 8c requests
categories 1a, 1b, and 1c. Also, the
exception under section 954(c)(6). See
the CFC’s aggregate extraordinary
checkbox for category 5 has been deleted
the specific instructions for Schedule I,
disposition account balance with respect
and replaced with checkboxes for new
Line
1d, for details.
to all U.S. shareholders at the beginning
categories 5a, 5b, and 5c. These changes
On page 6 of Form 5471, Schedule I,
and end of the CFC year. Line 8c also
are being made because section 8 of Rev.
line 3 has been designated as “Reserved
Jan 27, 2021
Cat. No. 49959G
Instructions for Form 5471
Department of the Treasury
Internal Revenue Service
(Rev. January 2021)
(Use with the December 2020 revision of Form 5471 and separate Schedules E, H,
J, P, Q, and R; the December 2019 revision of separate Schedule I-1; the December
2018 revision of Schedule M; and the December 2012 revision of separate Schedule
O.)
Information Return of U.S. Persons
With Respect to Certain Foreign Corporations
Proc. 2019-40 provides relief for certain
for future use” and the related entry space
Section references are to the Internal Revenue
Code unless otherwise noted.
types of category 5 filers. These
has been shaded.
instructions clarify that this relief is
Contents
Page
On page 6 of Form 5471, Schedule I,
extended to similarly situated category 1
line 5 has been deleted and replaced with
Future Developments . . . . . . . . . . . .
1
filers. See
Certain Category 1 and
new lines 5a through 5e in order to assist
What’s New . . . . . . . . . . . . . . . . . .
1
Category 5 Filers
for details.
certain U.S. shareholders in computing
General Instructions . . . . . . . . . . . . .
3
On page 1 of Form 5471, lines F and G
certain dividends, inclusions, and special
Purpose of Form . . . . . . . . . . . . . . .
3
are new. The checkbox on new line F
deductions requested on Schedule C of
Who Must File . . . . . . . . . . . . . . . .
3
must be checked if Form 5471 has been
their income tax return. New line 5a
When and Where To File . . . . . . . . .
3
completed using alternative information
requests section 245A eligible dividends.
Categories of Filers . . . . . . . . . . . . .
3
under Rev. Proc. 2019-40. See the
See the specific instructions for
Exceptions From Filing . . . . . . . . . . .
5
specific instructions for
Item F
for details. If
Schedule I,
Line
5a, for details. New
Additional Filing Requirements . . . . . .
6
the box on line F is checked, a code is
line 5b requests extraordinary disposition
required on line G to identify the type of
amounts. See the specific instructions for
Penalties . . . . . . . . . . . . . . . . . . . .
6
alternative information. See the specific
Schedule I,
Line
5b, for details. New
Other Reporting Requirements . . . . . .
7
instructions for
Item G
for details. As a
line 5c requests extraordinary reduction
Specific Instructions . . . . . . . . . . . . .
8
result of the insertion of new lines F and G,
amounts. See the specific instructions for
Schedule B . . . . . . . . . . . . . . . . .
10
formerly line F, has been re-designated as
Schedule I,
Line
5c, for details. New
Schedule C . . . . . . . . . . . . . . . . .
10
line H.
line 5d requests section 245A(e)
Schedule F . . . . . . . . . . . . . . . . .
11
dividends. See the specific instructions for
On page 1 of Form 5471, Item 1h now
Schedule G . . . . . . . . . . . . . . . . .
11
Schedule I,
Line
5d, for details. New
requests a three-letter functional currency
Schedule I . . . . . . . . . . . . . . . . . .
15
line 5e requests dividends not reported on
code. See the specific instructions for
Item
Instructions for Separate
line 5a, 5b, 5c, or 5d. See the specific
1h, later, for details.
Schedules . . . . . . . . . . . . . . .
23
instructions for Schedule I,
Line
5e, for
On page 5 of Form 5471, two new
Schedule E . . . . . . . . . . . . . . . . .
23
details.
questions have been added to
Schedule E-1 . . . . . . . . . . . . . . . .
27
On page 6 of Form 5471, the two
Schedule G. New Question 22a asks if
Schedule H . . . . . . . . . . . . . . . . .
29
bulleted items at the end of Schedule I of
any extraordinary reduction with respect to
Schedule I-1
. . . . . . . . . . . . . . . .
29
the prior revision of Form 5471 (questions
a controlling section 245A shareholder
Schedule J
. . . . . . . . . . . . . . . . .
31
pertaining to blocked income of the foreign
occurred during the tax year. See the
Schedule M . . . . . . . . . . . . . . . . .
33
corporation) have been designated as
specific instructions for Schedule G,
new lines 7a and 7b. The questions and
Schedule O . . . . . . . . . . . . . . . . .
33
Question
22a, for details. New Question
related attachment requirement remain
Schedule P . . . . . . . . . . . . . . . . .
34
22b asks, if the answer to Question 22a is
unchanged from the previous revision of
Schedule Q . . . . . . . . . . . . . . . . .
35
"Yes," was an election made to close the
the form.
Schedule R . . . . . . . . . . . . . . . . .
38
tax year such that no amount is treated as
an extraordinary reduction amount or
On page 6 of Form 5471, Schedule I,
Future Developments
tiered extraordinary reduction amount.
lines 8a through 8c are new. New line 8a
See the specific instructions for
asks if the U.S. shareholder had an
For the latest information about
Schedule G,
Question
22b, for details.
extraordinary disposition account with
developments related to Form 5471, its
respect to the foreign corporation at any
schedules, and its instructions, such as
On page 6 of Form 5471, Schedule I,
time during the tax year. See the specific
legislation enacted after they were
lines
1c
and
1d
are new. New line 1c
instructions for Schedule I,
Line
8a, for
published, go to IRS.gov/Form5471.
requests subpart F income from tiered
details. New line 8b requests the U.S.
extraordinary disposition amounts not
What’s New
shareholder’s extraordinary disposition
eligible for subpart F exception under
account balance at the beginning and end
section 954(c)(6). See the specific
of the CFC year. Line 8b also requests an
Changes to Form 5471. On page 1 of
instructions for Schedule I,
Line
1c, for
attachment detailing any changes from the
Form 5471, item B (category of filer), the
details. New line 1d requests subpart F
beginning and ending balances. See the
checkbox for category 1 has been deleted
income from tiered extraordinary reduction
specific instructions for Schedule I,
and replaced with checkboxes for new
amounts not eligible for subpart F
Line
8b, for details. New line 8c requests
categories 1a, 1b, and 1c. Also, the
exception under section 954(c)(6). See
the CFC’s aggregate extraordinary
checkbox for category 5 has been deleted
the specific instructions for Schedule I,
disposition account balance with respect
and replaced with checkboxes for new
Line
1d, for details.
to all U.S. shareholders at the beginning
categories 5a, 5b, and 5c. These changes
On page 6 of Form 5471, Schedule I,
and end of the CFC year. Line 8c also
are being made because section 8 of Rev.
line 3 has been designated as “Reserved
Jan 27, 2021
Cat. No. 49959G
requests an attachment detailing any
Schedule E-1,
Line
17, for details. As a
made to Schedule M (Form 5471). Use
changes from the beginning and ending
result of the insertion of new lines 6, 15,
the December 2018 revision.
balances. See the specific instructions for
16, and 17, former line 14 has been
Changes to separate Schedule O
Schedule I,
Line
8c, for details.
re-designated as line 18.
(Form 5471). No changes have been
On page 6 of Form 5471, Schedule I,
Changes to separate Schedule H
made to Schedule O (Form 5471). Use the
line 9 is new. New line 9 requests the sum
(Form 5471). Schedule H is no longer
December 2012 revision.
of the hybrid deduction accounts with
completed separately for each applicable
Changes to separate Schedule P
respect to stock of the foreign corporation.
category of income. Schedule H is now
(Form 5471). At the top of page 1 of
See the specific instructions for
completed once, for all categories of
Schedule P, the identifying information
Schedule I,
Line
9, for details.
income. As a result of this change:
section has been updated to request the
Lines a and b at the top of the schedule
Changes to separate Schedule E
name and identifying number of the
(pertaining to identifying the category of
(Form 5471). Schedule E, Part I, has
person filing Form 5471.
income for which the schedule was being
been divided into Section 1 (Taxes Paid or
Schedule P, columns (a) through (k)
completed) have been deleted, and
Accrued Directly by Foreign Corporation)
now request information pertaining to the
Five lines have been inserted under
and new Section 2 (Taxes Deemed Paid
ten PTEP groups provided in Regulations
line 5c (current year earnings and profits).
(Section 960(b))).
section 1.960-3(c)(2). See the specific
Taxpayers are asked to enter the portion
In Schedule E, Part I, Section 1, new
instructions for those ten columns for
of the line 5c amount with respect to the
columns (g) and (h) have been inserted. In
details.
general category (new line 5c(i)), the
new column (g), taxpayers are instructed
passive category (new line 5c(ii)), and the
New separate Schedule Q. This new
to check the box if taxes are paid on U.S.
section 901(j) category (new lines 5c(iii)
schedule is used to report CFC income by
source income. See the specific
(A), 5c(iii)(B), and 5c(iii)(C)). These
CFC income groups. This information is
instructions for Schedule E, Part I, Section
amounts are carried over to Part I, line 3,
required by T.D. 9882, which finalized
1,
Column
(g), for details. In new column
column (a), of Schedule J (Form 5471),
Regulations sections 1.960-1 through
(h), taxpayers are instructed to enter a
which is completed separately for each
1.960-3. This information is also required
code for the local currency in which tax is
applicable category of income.
by Regulations section 1.951A-2(c)(1)(iii)
payable. See the specific instructions for
and proposed Regulations section
Changes to separate Schedule I-1
Schedule E, Part I, Section 1,
Column
(h),
1.861-20(d)(3)(i). On this new
(Form 5471). No changes have been
for details. As a result of these changes,
Schedule Q, the CFC income in each CFC
made to Schedule I-1 (Form 5471). Use
former columns (g) through (j) have been
income group of the CFC is reported to
the December 2019 revision.
re-designated as columns (i) through (l),
the U.S. shareholders of the CFC so that
and column references on lines 5 and 6
Changes to separate Schedule J
the U.S. shareholders can use it to
have been updated.
(Form 5471). With respect to line a at the
properly complete Form 1118 (to compute
Schedule E, Part I, Section 2 (Taxes
top of page 1 of Schedule J, there is a new
the high-tax exception, high-tax kickout,
Deemed Paid (Section 960(b)), is new.
code “TOTAL” that is required for
and section 960 deemed paid taxes). For
See the specific instructions for
Schedule J filers in certain circumstances.
additional information, see the specific
Schedule E, Part I,
Section
2, for details.
Form 5471 filers generally use the same
instructions for
Schedule
Q, later.
category of filer codes used on Form
Schedule E, Part III, column (g) (taxes
New separate Schedule R. This new
1118. However, in the case of Schedule J
related to section 959(c)(3) E&P), is new.
schedule is used to report basic
(Form 5471) filers, if a foreign corporation
See the specific instructions for
information pertaining to distributions from
has more than one of those categories of
Schedule E, Part III,
Column
(g), for
foreign corporations. This information is
income, the filer must also complete and
details. As a result of this change, former
required by sections 245A, 959, and
file a separate Schedule J using code
columns (g) and (h) have been
986(c). For additional information, see the
“TOTAL” that aggregates all amounts
re-designated as columns (h) and (i).
specific instructions for
Schedule
R, later.
listed for each line and column in Part I of
Schedule
E-1, columns (e)(i) through
all other Schedules J.
Changes to the Instructions for Form
(e)(x), now request information pertaining
On page 1 of Schedule J, just below
5471 and separate schedules. The
to the ten PTEP groups provided in
the Part I heading, with respect to the box
instructions have been updated for each
Regulations section 1.960-3(c)(2). See the
to be checked if the person filing the return
of the aforementioned changes to Form
specific instructions for those ten columns
does not have all U.S. shareholders’
5471 and separate schedules. In addition:
for details.
information to complete certain columns,
Changes have been made throughout
Schedule E-1, line 6, is new. Line 6
the language used on this line has been
these instructions to reflect Rev. Proc.
requests deemed paid foreign income
modified to apply to all sub-columns of
2019-40, 2019-43 I.R.B. 982, available at
taxes with respect to distributions of PTEP
column (e).
IRS.gov/irb/2019-43_IRB#REV-
from a lower-tier CFC (that is, taxes
PROC-2019-40, which generally provides
Schedule J, Part I, line 3, has been
reported on Schedule E, Part I, Section 2,
relief to U.S. persons that directly,
updated to include a reference to
line 5, column (i)). See the specific
indirectly, or constructively own stock in
Schedule H (that is, enter amount from
instructions for Schedule E-1,
Line
6, for
foreign corporations that are CFCs as a
applicable line 5c of Schedule H). See the
details. As a result of this change, former
result of the repeal of section 958(b)(4).
specific instructions for Schedule J, Part I,
lines 6 through 13 have been
Changes have been made throughout
Line
3, for details.
re-designated as lines 7 through 14.
these instructions based on final
Schedule J, columns (e)(i) through (e)
Schedule E-1, lines 15, 16, and 17 are
regulations under section 960 (T.D. 9882,
(x) now request information pertaining to
new and apply only to column (a). Line 15
84 FR 69022, December 17, 2019).
the ten PTEP groups provided in
is a subtotal line. Line 16 requests the
Section 111 of the Taxpayer Certainty
Regulations section 1.960-3(c)(2). See the
reduction in current E&P for tested income
and Disaster Tax Relief Act of 2020
specific instructions for those ten columns
taxes not deemed paid. See the specific
extended the look-through rule of section
for details.
instructions for Schedule E-1,
Line
16, for
954(c)(6). The rule now applies to tax
details. Line 17 requests the reduction in
years of foreign corporations beginning
Changes to separate Schedule M
current E&P for other taxes not deemed
after December 31, 2005, and before
(Form 5471). No changes have been
paid. See the specific instructions for
January 1, 2026, and to tax years of U.S.
Instructions for Form 5471 (Rev. 01-2021)
-2-
Categories of Filers
shareholders with or within which such tax
Category 1b Filer
years of the foreign corporations end.
See
Unrelated section 958(a) U.S.
Category 1 Filers
Continue to exclude the applicable types
shareholder, later, for instructions
of income specified in section 954(c)(6)
These categories include a U.S.
pertaining to when Form 5471 may be
from Worksheet A, line 1a, for the period
shareholder of a foreign corporation that is
completed as a Category 1b filer.
specified in the previous sentence.
a section 965 specified foreign corporation
Lines 17 and 18 were added to
(SFC) (defined below) at any time during
Category 1c Filer
Worksheet B. These new lines are used to
any tax year of the foreign corporation,
reduce a section 956 inclusion by the
and who owned that stock on the last day
See
Related constructive U.S.
amount of any deduction under section
in that year on which it was an SFC, taking
shareholder, later, for instructions
245A that the shareholder would be
into account the regulations under section
pertaining to when Form 5471 may be
allowed if the shareholder received a
965. However, see
Certain Category 1
completed as a Category 1c filer.
hypothetical distribution within the
and Category 5
Filers, later, which may
Category 2 Filer
meaning of Regulations section 1.956-1(a)
apply.
(2).
This category includes a U.S. citizen or
U.S. shareholder. For purposes of
resident who is an officer or director of a
General Instructions
Category 1 filers, a U.S. shareholder is a
foreign corporation in which a U.S. person
U.S. person who owns (directly, indirectly,
(defined below) has acquired (in one or
or constructively, within the meaning of
more transactions):
Purpose of Form
sections 958(a) and (b)) 10% or more of
1. Stock which meets the 10% stock
the total combined voting power of all
Form 5471 is used by certain U.S.
ownership requirement (described below)
classes of voting stock of a section 965
persons who are officers, directors, or
with respect to the foreign corporation, or
SFC or, in the case of a tax year of a
shareholders in certain foreign
foreign corporation beginning after
2. An additional 10% or more (in value
corporations. The form and schedules are
December 31, 2017, 10% or more of the
or voting power) of the outstanding stock
used to satisfy the reporting requirements
total combined voting power or value of
of the foreign corporation.
of sections 6038 and 6046, and the
shares of all classes of stock of a section
related regulations, as well as to report
A U.S. person has acquired stock in a
965 SFC.
amounts related to section 965.
foreign corporation when that person has
U.S. person. See
Category 5
Filers, later,
an unqualified right to receive the stock,
Who Must File
for definition.
even though the stock is not actually
Generally, all U.S. persons described in
issued. See Regulations section
Section 965 specified foreign corpora-
Categories of Filers
below must complete
1.6046-1(f)(1) for more details.
tion (SFC). For purposes of Category 1
the schedules, statements, and/or other
filers, an SFC (as defined in section 965)
10% stock ownership requirement. For
information requested in the chart,
Filing
is:
purposes of Category 2 and Category 3,
Requirements for Categories of
Filers,
the stock ownership threshold is met if a
1. A CFC (see
Category 5
Filers, later,
later. Read the information for each
U.S. person owns:
for definition), or
category carefully to determine which
1. 10% or more of the total value of
schedules, statements, and/or information
2. Any foreign corporation with
the foreign corporation's stock, or
apply.
respect to which one or more domestic
corporations is a U.S. shareholder.
2. 10% or more of the total combined
Note. When a schedule is required but all
voting power of all classes of stock with
However, if a passive foreign
amounts are zero, the schedule should
voting rights.
investment company (as defined in
still be filed with one or more zero
section 1297) with respect to the
amounts. For schedules that are
U.S. person. For purposes of Category 2
shareholder is not a CFC, then such
completed by category (that is,
and Category 3, a U.S. person is:
corporation is not a section 965 SFC.
Schedule E, I-1, J, P and Q), inclusion of a
1. A citizen or resident of the United
single instance of that schedule for any
See section 965 and the regulations
States,
separate category will meet the
thereunder for exceptions.
2. A domestic partnership,
requirement.
3. A domestic corporation, and
Note. A U.S. shareholder who is a
If the filer is described in more than one
Category 1 filer (defined above) must
4. An estate or trust that is not a
filing category, do not duplicate
continue to file all information required
foreign estate or trust as defined in section
information. However, complete all items
(see below) as long as:
7701(a)(31).
that apply. For example, if you are the sole
The section 965 SFC has accumulated
owner of a CFC (that is, you are described
See Regulations section 1.6046-1(f)(3)
E&P related to section 965 that is
in Categories 4 and 5a), complete all six
for exceptions.
reportable on Schedule J (Form 5471), or
pages of Form 5471 and separate
The U.S. shareholder has previously
Schedules E, H, I-1, J, M, P, Q, and R.
Category 3 Filer
taxed E&P related to section 965 that is
reportable on Schedule P (Form 5471).
This category includes:
Note. Complete a separate Form 5471
A U.S. person (see
Category 2 Filer
and all applicable schedules for each
Category 1a Filer
above for definition) who acquires stock in
applicable foreign corporation.
a foreign corporation which, when added
A U.S. shareholder who is a Category 1
When and Where To File
to any stock owned on the date of
filer (defined above) must complete Form
acquisition, meets the 10% stock
Attach Form 5471 to your income tax
5471 and file all information required of a
ownership requirement (described above)
return (or, if applicable, partnership or
Category 1a filer if that U.S. shareholder
with respect to the foreign corporation;
exempt organization return) and file both
does not qualify as a Category 1b or 1c
A U.S. person who acquires stock
by the due date (including extensions) for
filer.
which, without regard to stock already
that return.
owned on the date of acquisition, meets
Instructions for Form 5471 (Rev. 01-2021)
-3-
the 10% stock ownership requirement with
Corporation D. Therefore, Corporation D
Category 5b Filer
respect to the foreign corporation;
is controlled by Corporation A.
See
Unrelated section 958(a) U.S.
A person who is treated as a U.S.
For more details on “control,” see
shareholder
below for instructions
shareholder under section 953(c) with
Regulations sections 1.6038-2(b) and (c).
pertaining to when Form 5471 may be
respect to the foreign corporation;
completed as a Category 5b filer.
Category 5 Filers
A person who becomes a U.S. person
while meeting the 10% stock ownership
These categories include a U.S.
Category 5c Filer
requirement with respect to the foreign
shareholder who owns stock in a foreign
corporation; or
corporation that is a CFC at any time
See
Related constructive U.S.
A U.S. person who disposes of
during any tax year of the foreign
shareholder
below for instructions
sufficient stock in the foreign corporation
corporation, and who owned that stock on
pertaining to when Form 5471 may be
to reduce his or her interest to less than
the last day in that year on which it was a
completed as a Category 5c filer.
the 10% stock ownership requirement.
CFC. However, see
Certain Category 1
and Category 5
Filers, later, which may
Certain Category 1 and Category 5
For more information, see section 6046
apply.
and Regulations section 1.6046-1.
Filers
U.S. shareholder. For purposes of
Category 4 Filer
Rev. Proc. 2019-40 provides relief for
Category 5 filers, a U.S. shareholder is a
certain types of Category 5 filers. These
This category includes a U.S. person who
U.S. person who:
instructions clarify that this relief is
had control (defined below) of a foreign
1. Owns (directly, indirectly, or
extended to similarly situated
Category 1
corporation during the annual accounting
constructively, within the meaning of
filers.
period of the foreign corporation.
sections 958(a) and (b)) 10% or more of
Unrelated section 958(a) U.S. share-
the total combined voting power of all
U.S. person. For purposes of
holder. For purposes of Category 1 and
classes of voting stock of a CFC or, in the
Category 4, a U.S. person is:
Category 5 filers, an unrelated section
case of a tax year of a foreign corporation
1. A citizen or resident of the United
958(a) U.S. shareholder is a U.S.
beginning after December 31, 2017, 10%
States;
shareholder with respect to a
or more of the total combined voting
2. A nonresident alien for whom an
foreign-controlled corporation (defined
power or value of shares of all classes of
election is in effect under section 6013(g)
below) who:
stock of a CFC; or
to be treated as a resident of the United
1. Owns, within the meaning of
2. Owns (either directly or indirectly,
States;
section 958(a), stock of a
within the meaning of section 958(a)) any
3. An individual for whom an election
foreign-controlled corporation; and
stock of a CFC (as defined in sections
is in effect under section 6013(h), relating
953(c)(1)(B) and 957(b)) that is also a
2. Is not related (using principles of
to nonresident aliens who become
captive insurance company.
section 954(d)(3)) to the foreign-controlled
residents of the United States during the
corporation.
tax year and are married at the close of
U.S. person. For purposes of
the tax year to a citizen or resident of the
A U.S. shareholder who is a
Category 1
Category 5 filers, a U.S. person is:
United States;
filer
(defined previously) and who is an
1. A citizen or resident of the United
unrelated section 958(a) U.S. shareholder
4. A domestic partnership;
States,
with respect to a foreign-controlled
5. A domestic corporation; and
2. A domestic partnership,
corporation (defined below) may complete
6. An estate or trust that is not a
Form 5471 for that foreign-controlled
3. A domestic corporation, and
foreign estate or trust as defined in section
corporation and complete only the
4. An estate or trust that is not a
7701(a)(31).
information required of a
Category 1b
filer.
foreign estate or trust as defined in
A U.S. shareholder who is a
Category 5
section 7701(a)(31).
See Regulations section 1.6038-2(d)
filer
(defined above) and who is an
for exceptions.
See section 957(c) for exceptions.
unrelated section 958(a) U.S. shareholder
Control. A U.S. person has control of a
with respect to a foreign-controlled
CFC. A CFC is a foreign corporation that
foreign corporation if, at any time during
corporation (defined below) may complete
has U.S. shareholders that own (directly,
that person's tax year, it owns stock
Form 5471 for that foreign-controlled
indirectly, or constructively, within the
possessing:
corporation and complete only the
meaning of sections 958(a) and (b)) on
information required of a
Category 5b
filer.
1. More than 50% of the total
any day of the tax year of the foreign
combined voting power of all classes of
corporation, more than 50% of:
Related constructive U.S. shareholder.
stock of the foreign corporation entitled to
For purposes of Category 1 and Category
1. The total combined voting power of
vote, or
5 filers, a related constructive U.S.
all classes of its voting stock, or
shareholder is a U.S. shareholder with
2. More than 50% of the total value of
2. The total value of the stock of the
respect to a foreign-controlled corporation
shares of all classes of stock of the foreign
corporation.
who:
corporation.
1. Does not own, within the meaning
A person in control of a corporation
Category 5a Filer
of section 958(a), stock of the
that, in turn, owns more than 50% of the
A U.S. shareholder who is a Category 5
foreign-controlled corporation; and
combined voting power, or the value, of all
filer (defined above) must complete Form
2. Is related (using principles of
classes of stock of another corporation is
5471 and file all information required of a
section 954(d)(3)) to the foreign-controlled
also treated as being in control of such
Category 5a filer if that U.S. shareholder
corporation.
other corporation.
does not qualify as a Category 5b or 5c
A U.S. shareholder who is a
Category 1
Example. Corporation A owns 51% of
filer.
filer
(defined previously) and who is a
the voting stock in Corporation B.
related constructive U.S. shareholder with
Corporation B owns 51% of the voting
respect to a foreign-controlled corporation
stock in Corporation C. Corporation C
(defined below) may complete Form 5471
owns 51% of the voting stock in
Instructions for Form 5471 (Rev. 01-2021)
-4-
for that foreign-controlled corporation and
No statement is required to be attached
Certain constructive owners.
complete only the information required of
to tax returns for persons claiming the
A U.S. person described in Category 1,
a
Category 1c
filer. A U.S, shareholder
constructive ownership exception.
3, 4, or 5 (“shareholder”) does not have to
who is a
Category 5 filer
(defined above)
A Category 2 filer does not have to file
file Form 5471 if all of the following
and who is a related constructive U.S.
Form 5471 if:
conditions are met.
shareholder with respect to a
1. Immediately after a reportable
1. The shareholder does not own a
foreign-controlled corporation (defined
stock acquisition, three or fewer U.S.
direct interest in the foreign corporation.
below) may complete Form 5471 for that
persons own 95% or more in value of the
2. The shareholder is required to
foreign-controlled corporation and
outstanding stock of the foreign
furnish the information requested solely
complete only the information required of
corporation and the U.S. person making
because of constructive ownership (as
a
Category 5c
filer.
the acquisition files a return for the
determined under Regulations section
acquisition as a Category 3 filer; or
Foreign-controlled corporation. For
1.958-2, 1.6038-2(c), or 1.6046-1(i)) from
purposes of Category 1 and Category 5
2. The U.S. person(s) for which the
another U.S. person.
filers, a foreign-controlled corporation is a
Category 2 filer is required to file Form
3. The U.S. person through which the
foreign corporation that is either:
5471 does not directly own an interest in
shareholder constructively owns an
A section 965 SFC that would not be a
the foreign corporation but is required to
interest in the foreign corporation files
section 965 SFC if the determination were
furnish the information solely because of
Form 5471 to report all of the required
made without applying subparagraphs (A),
constructive stock ownership from a U.S.
information.
(B), and (C) of section 318(a)(3) so as to
person and the person from whom the
consider a U.S. person as owning stock
that is owned by a foreign person (for
purposes of Category 1 filers); or
Filing Requirements for Categories of Filers
A CFC that would not be a CFC if the
determination were made without applying
Table of Required Information
subparagraphs (A), (B), and (C) of section
318(a)(3) so as to consider a U.S. person
Category of Filer
as owning stock that is owned by a foreign
Required Information*
person (for purposes of Category 5 filers).
1a
1b
1c
2
3
4
5a
5b
5c
Exceptions From Filing
The identifying information on page 1
of Form 5471 above Schedule A; see
Multiple filers of same information.
Specific Instructions
One person may file Form 5471 and the
Schedule A
applicable schedules for other persons
who have the same filing requirements. If
Schedule B, Part I
you and one or more other persons are
required to furnish information for the
Schedule B, Part II
same foreign corporation for the same
period, a joint information return that
Schedules C and F
contains the required information may be
Separate Schedule E
filed with your tax return or with the tax
1
2
1
2
return of any one of the other persons. For
Schedule E-1 (included with separate
example, a U.S. person described in
Schedule E)
1
1
Category 5 may file a joint Form 5471 with
a Category 4 or another Category 5 filer.
Schedule G
However, for Category 3 filers, the
Separate Schedule H
required information may only be filed by
another person having an equal or greater
Schedule I
interest (measured in terms of value or
voting power of the stock of the foreign
Separate Schedule I-1
corporation).
The person that files Form 5471 must
Separate Schedule J
complete Form 5471 in the manner
described in the instructions for
Item
F. All
Separate Schedule M
persons identified in Item F must attach a
Separate Schedule O, Part I
statement to their income tax return that
includes the information described in the
Separate Schedule O, Part II
instructions for Item F.
Domestic corporations. Shareholders
Separate Schedule P
are not required to file the information
Separate Schedule Q
checked in the chart, later, for a foreign
1
1
insurance company that has elected
Separate Schedule R
(under section 953(d)) to be treated as a
domestic corporation and has filed a U.S.
*See also
Additional Filing
Requirements.
income tax return for its tax year under
that provision. See Rev. Proc. 2003-47,
1. Schedules E and E-1 are required for an
unrelated section 958(a) U.S. shareholder
only if the filer claims deemed
paid foreign income taxes of the foreign-controlled corporation under section 960 for the filer’s tax year. See Rev. Proc.
2003-28 I.R.B. 55, available at
2019-40 for more details.
IRS.gov/irb/2003-28_IRB#RP-2003-47, for
procedural rules regarding the election
2.
Related constructive U.S. shareholders
only need to complete Schedule E (they can leave Schedule E-1 blank). See
under section 953(d).
Rev. Proc. 2019-40 for more details.
Instructions for Form 5471 (Rev. 01-2021)
-5-