Do I Need to File Form 5471 for my CFC if It Lost Money??

If a foreign corporation is owned by enough U.S. persons, it may be classified as a controlled foreign corporation (CFC) for federal tax purposes.

A U.S. person with a stock ownership interest in a CFC must report their interest on Form 5471 and include it with their federal tax return.

One of the most common misconceptions is that the IRS does not care about Form 5471 filings for foreign corporations that lose money.

This couldn't be further from the truth...

Make sure to file your Form 5471s or you face a steep $10,000 penalty per missed filing...

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#IRS #CFC #Form5471

DISCLAIMER: I am a licensed attorney and certified public accountant (CPA) in the State of Florida. I am not a financial advisor. The information provided in this video is for entertainment purposes only. No such communication is provided in the course of an attorney-client relationship, and no communication is intended to constitute legal advice. You should speak with your own tax and legal professionals to discuss your circumstances before performing any of the tax, legal or accounting strategies demonstrated in this video. Thank you.