FOREIGN CORPORATIONS

Foreign Corporations: What You Need to Know

If you are a director, officer, or shareholder of a foreign corporation, you may have additional US tax filing requirements.

Form 5471 is an informational form that must be filed with your US federal tax return. While filing this form typically does not affect your US tax liability, it helps the IRS track US citizens with ownership in foreign corporations.

It’s important to file Form 5471 correctly, as failure to do so—or improper preparation—can result in significant penalties, starting at $10,000.