Are you required to file Form 5471? This session is an overview of the rules that determine whether you are required to file Form 5471 and for which category. We cover what it means to be a United States shareholder when a corporation is a controlled foreign corporation and how you compute how much stock you own in a foreign corporation. Finally, we review situations where you might have a filing requirement, but an exemption exists to excuse you from filing Form 5471.
Presented by Phil Hodgen on April 28, 2023. To join future webinars, sign up to our newsletter and receive updates.
Philip D. W. Hodgen is the principal attorney of HodgenLaw PC, an international tax law firm based in Pasadena, California. He earned his undergraduate degree from Claremont McKenna College and his law degree from the School of Law at the University of California, Los Angeles. He then went on to earn a Master of Laws degree with a specialty in taxation from the University of San Diego School of Law. Admitted to the California bar in 1982, Phil spent nine years in law firms and with a large U.S. bank before starting his own firm in 1991.
Phil is a past chair of the International Tax Committee of the State Bar of California's Tax Section and was a member of the Executive Committee of the State Bar of California's Tax Section for 2004-2007. Phil frequently speaks on a variety of international tax, trust and estate topics to attorneys, accountants, and real estate professionals.
Happy Friday from Phil. This is your Friday Edition, the biweekly delivery of international tax info straight to your inbox. If you want this to stop happening, click the unsubscribe link at the bottom of this email. American 50% Owners of Foreign Corporations An email from a CPA friend triggered this topic. (Thanks B). Here’s…
Here is a real life problem we1 are solving right now for a real life couple: an American citizen married to a noncitizen, living abroad. H formed a corporation in his country of residence, and started a business. It is a “foreign corporation” to the IRS. H met W, an American citizen. They married. W…
“You Don’t Own It, But the IRS Treats You as if You Do” Do you have to file Form 5471? Sometimes, the IRS treats you as something you’re not. They might think that you own stock of a foreign corporation even if you don’t. You really aren’t a shareholder: Yet the IRS says you are…
What’s an American Minimultinational? What do I mean by American minimultinational? Multinational A multinational business operates in multiple countries, exposed to multiple tax-hungry governments. Apple. General Motors. Exxon. A minimultinational is a multinational business, but smaller. Do you have 100 people in a cubicle farm working on your international tax stuff? You’re a multinational. Is…
American minimultinationals are small (for various definitions of “small”) business enterprises subjected to the U.S. tax system. There are many ways that a minimultinational becomes exposed to the U.S. tax system. Doing business in the United States is an obvious way. If you have an office or employees in the United States, some portion of…
Introduction All of the profits generated by a minimultinational enterprise will be exposed in real time to the U.S. tax system. Chapter 2 explains why. We will talk about how the U.S. taxes those profits in future installments of this book. Different business structures have different tax results.1 Recap What’s a minimultinational? Let’s recap. A…
Tax laws change over time, and the information in this post above may be less accurate today than it was at the time of the last revision. This post is not tax advice for your specific situation. Please contact an international tax professional to get personalized advice for your situation.
