How the U.S. Taxes Foreign Subsidiaries and How to Complete Form 5471
Author: Robert J. Misey
| CPE Credit: |
2 hours for CPAs
2 hours Federal Tax Related for EAs and OTRPs
2 hours Federal Tax Law for CTEC |
Per the IRS Education Provider Standards this course must be COMPLETED by 12/31/2026 to receive credits. NOTE: Go to My Professional Profile in your CCH CPELink account settings to ensure your name, and PTIN number; matches your PTIN card
With more companies conducting business globally, the number of foreign subsidiaries has exploded. That leaves many U.S. owners needing to know the tax rules and file Form 5471, Information Return of U.S. Persons With Respect To Certain Foreign Corporations. The IRS is aggressively pursuing penalties for non-filing, so Form 5471 compliance is critical to understand.
Publication Date: August 2023
Topics Covered
- Categories of Filers in Form 5471
- Subpart F Income
- GILTI
- Earnings and Profits
- Foreign Tax Credits
- Foreign Currency Translation
- Transfer Pricing
- Penalties
- Filling in the Form 5471
Learning Objectives
- Describe the tax law behind the informational requirements on Form 5471
- Recognize how to develop a practical understanding of U.S. international tax reporting and compliance with respect to foreign corporations
- Identify the type of Category 5 filer that is constructively related to the CFC
- Identify the rule that is applicable to transfer pricing
- Identify the schedule of Form 5471 that should be used to report transactions between CFCs and shareholders or other related persons
Level
Basic
Instructional Method
Self-Study
NASBA Field of Study
Taxes (2 hours)
Program Prerequisites
None
Advance Preparation
None
