Article Category
IRS Form 5471
Published on

Form 5471 Webinar Series: Distributions from Controlled Foreign Corporations

Portrait of Phil Hodgen

Phil Hodgen

Attorney, Principal


Standard principles of corporate taxation apply to controlled foreign corporations, so it is not surprising that corporate distributions may create dividend income for US shareholders. However, some distributions are indeed included in the shareholders' gross income, while others are not. We explore the rules for determining when a distribution received by a shareholder is taxable (or not) and how it is reported on the shareholder's income tax return.