Field Guide: Form 5471 Category 5a, 5b, or 5c? (Notice 2019-40)

I have been in New York this week to speak at the NYSSCPA's International Tax Conference. The topic: filing categories for Form 5471.

A new Form 5471 Field Guide

One of the side effects of that speech: another Field Guide. This one is for Category 5.

A United States person (IRC §7701(a)(30)) who is a United States shareholder (IRC §951(b)) of a controlled foreign corporation (IRC §957(a)) is a Category 5 filer of Form 5471.

But there are three types of Category 5 filers: Category 5a, 5b, and 5c. How do you figure out which box to check in Item B on the first page of Form 5471?

Rev. Proc. 2019-40, Section 8 created Categories 5a, 5b, and 5c (though it does not name them as such).

This Field Guide contains a flow chart to help you understand Rev. Proc. 2019-40 and the questions you must ask in order to figure out which of those three Categories applies to your taxpayer, and a simple explanation of the questions and how to answer them. Questions are in the diamond shapes in the flow chart.

Download here: ​Field Guide - Form 5471 Category 5a, 5b, 5c (Notice 2019-40).pdf​.

Comments? Corrections?

As usual, please tell me if I made a mistake or if my explanations can be improved. 

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