2020 Form 5471 Instructions



On January 28, 2021, the IRS published Instructions for Form 5471, which include significant changes. In accordance with Rev. Proc. 2019-40 (https://www.irs.gov/pub/irs-drop/rp-19-40.pdf), the new Instructions address revisions related to Category 5 filers. As a result of the repeal of Code section 958(b)(4), Rev. Proc. 2019-40 generally provides relief to U.S. persons that directly, indirectly, or constructively own stock in non-U.S. corporations that are Controlled Foreign Corporations.


Filers must use these new Instructions with the December 2020 revision of Form 5471 and separate Schedules E, H, J, P, Q, and R; the December 2019 revision of separate Schedule I-1; the December 2018 revision of Schedule M; and the December 2012 revision of separate Schedule O. There are changes throughout the new instructions based on the final regulations under section 960. Filers must review these Instructions carefully as there are many revisions and changes.


To receive more Tax-related updates sign up to our monthly newsletter HERE


#IRS #taxprofessionals #informationreporting #ComplyWithComply #compliance#taxnews #tax #form5471 #instructions #update #updatedinstructions #reporting #section960

6 views0 comments

Recent Posts

See All

Welcome to the team!

Comply is happy to announce Carolyn Luke has joined the team!

About Us

Comply Exchange has been created to give businesses and individuals the support they need to comply with the ever increasing regulatory tax burdens.

To see how our services can help your business, to have an informal discussion or to see how our products work, schedule a demo today. Or contact us today to find out more.

COMPANY

About Us

Solutions

Blog

Contact Us

LEGAL

Privacy

Terms & Conditions