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…
Field Guide: Form 5471 Category 3 Filing Requirement Analysis
Today, I’m trying something different. Let me know what you think. Field Guide: The Idea About 18 months ago, Cameron Ware and…
Form 5471 Penalty Litigation Demonstrates how Federal Courts Work
Form 5471 penalties are still in business By now, you have undoubtedly heard about the Farhy v. Commissioner case: a Tax Court…
Form 5471 Category 1 Rarely Applies, and Never* for a New U.S. Resident
Typical scenario A nonresident owns 100% of a foreign corporation’s stock. Neither the shareholder nor the foreign corporation have any contact with…
Don’t Forget Section 367(b) when Working with Foreign Corporations
Summary I engineered a Section 368(a)(1)(D) reorganization in 2023 involving two CFCs. Form a new corporation, contribute the stock of OldCo to…
Why the Disregarded Entity Election is Not Necessarily a Good Idea
The Punchline If you want to skip the appetizers and go straight to dessert: Consider a U.S. corporation doing business abroad. Why…
Why Treaty Nonresidents Must File Form 5471
The Punchline Form 5471 is required for an individual who is a resident alien and claims U.S. nonresident status because of an…
Strategies to Deal with CFCs with Lifestyle-level Net Profit
Reader’s Question about CFC Strategies This week is a quick break from the FIRPTA content, to answer a reader question about CFCs….
When is a foreign corporation a domestic corporation?
Summary Answer: when you run afoul of IRC §7874. IRC §7874 was designed to stop you from reincorporating your U.S. publicly-traded multinational…