- 1 7-Easy Form 5471 Mistakes to Avoid
- 2 Form 5471 Amnesty Lawyers Golding & Golding, A PLC
- 3 5471 – 7 Common Filing Mistakes
- 4 IRS Form 5471 Non-Filing
- 5 Missed the 5471 Deadline
- 6 Not Filing for IRS Form 5471 Extension
- 7 Filing the Wrong Category
- 8 Not identifying You Fall Into Multiple 5471 categories
- 9 The Business’ Books are Not Balanced
- 10 Non-compliance for Prior Years – We Specialize in Late 5471
- 11 Interested in Filing under 5471 IRS Tax & Amnesty Procedures?
7-Easy Form 5471 Mistakes to Avoid – We Specialize in 5471
Form 5471 is a complex IRS tax form. Unlike other “reporting” forms, such as FBAR (Foreign Bank and Financial Accounts), or Form 8938 (FATCA aka Foreign Account Tax Compliance Act), Form 5471 is a “business tax return,” aka international reporting form.
7-Easy Form 5471 Mistakes to Avoid
IRS Form 5471 requires the owner of the corporation to file a cross-section of the business financials, include assets, equity, liability and balance sheet(s).
Some clients may have multiple 5471 reporting requirements each year.
Form 5471 Amnesty Lawyers Golding & Golding, A PLC
Golding & Golding represents clients worldwide in over 70-countries exclusively in Streamlined, Offshore and IRS Voluntary Disclosure matters. We have successfully completed more than 1,000 streamlined and voluntary disclosure submissions.
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5471 – 7 Common Filing Mistakes
Here are 7 of the most common errors:
IRS Form 5471 Non-Filing
Some people (in fact, most people) are unaware that they are required to file Form 5471. The form is due at the same time a person’s tax return is due. The actual due date will vary based on whether it is the filer is a U.S. Person individual, or domestic corporation, if they are on calendar year or fiscal year, and if the filer is on extension.
Missed the 5471 Deadline
Continuing from number 1 above, some people just miss the deadline. Usually, it is because the taxpayer is unaware there is any filing requirement in the first place —
Not Filing for IRS Form 5471 Extension
The Form 5471 is due when your tax return is due. If you believe you are going to be late in filing the form, you can apply for an extension for your tax return, and the 5471 will go on extension as well. Unlike the Form 3520-A, it does not require that you file a Form 7004.
Filing the Wrong Category
There are 5 categories of filers. The verbiage for the filers can be confusing. There are important nuances to be aware of. For example, a Category 2 uses the phrase “acquired,” and Category 3 uses “acquires.” This can impact who falls into a category vs. who may escape the Form 5471 reporting requirements.
*Some categories require significant more reporting requirements than other categories do….which brings us to the next common error.
Not identifying You Fall Into Multiple 5471 categories
The categories are not mutually exclusive. You may fall into several categories, which will (unfortunately) increase your reporting requirements.
The Business’ Books are Not Balanced
The balance sheet for form 5471 requires a balance sheet. The old “Assets = Equity plus Liabilities.” If the filer does not have experience with bookkeeping, this aspect of reporting can be unnecessarily more frustrating than the IRS should make it.
Non-compliance for Prior Years – We Specialize in Late 5471
If you were required to file, but have not filed in prior years, you cannot just begin filing forward. Doing so is considered a “quiet disclosure,” which is illegal and can lead to excessive fines and penalties.
You need a team that specializes exclusively in IRS Offshore Disclosure and Form 5471, FBAR, and FATCA Amnesty.
Interested in Filing under 5471 IRS Tax & Amnesty Procedures?
No matter where in the world you reside, our international tax team can get you IRS offshore compliant.
Golding & Golding specializes in offshore tax and reporting amnesty. Contact our firm today for assistance with getting compliant.
Sean holds a Master's in Tax Law from one of the top Tax LL.M. programs in the country at the University of Denver. He has also earned the prestigious IRS Enrolled Agent credential. Mr. Golding's articles have been referenced in such publications as the Washington Post, Forbes, Nolo, and various Law Journals nationwide.