What this service covers
If you are a US citizen or green-card holder with an interest in a foreign corporation, a preparer at Capital Tax Limited prepares the full information-return package: Form 5471 for each company you are required to report, the supporting income statements and balance sheets in US tax format, and the GILTI (Form 8992) and Subpart F calculations that flow onto your personal Form 1040. Where the structure calls for it, the engagement also covers related forms such as Form 8858 (foreign disregarded entities and branches), Form 926 (transfers to a foreign corporation), and the foreign-account reporting (FBAR and Form 8938) that almost always accompanies a foreign business. For background on the rules, see the Form 5471 guide.
Who needs it
Form 5471 reaches more people than most founders expect. You generally need to file if you control more than 50% of a foreign corporation, own 10% or more of a controlled foreign corporation (one that is majority US-owned), acquire or dispose of a stake that crosses the 10% threshold, or are a US officer or director when a US person acquires a 10% stake. American entrepreneurs who have incorporated locally (a Singapore Pte Ltd, a Hong Kong Limited company, or similar) are typically Category 4 or Category 5 filers and frequently have GILTI exposure on the company's earnings even when no profits are distributed. The categories overlap and the constructive-ownership rules are technical, so the first step is confirming which filings actually apply to your situation.
Why this is rarely a do-it-yourself filing
The penalty for a late, incomplete, or inaccurate Form 5471 is $10,000 per form per year under IRC §6038, with up to $50,000 in additional penalties after IRS notice and a 10% reduction of foreign tax credits. At the same time, GILTI and Subpart F can create US tax on undistributed company profits unless the right elections and foreign-tax-credit coordination are applied. Mainstream consumer tax software does not properly support these forms and calculations. Getting both the compliance and the planning right is the difference between a routine filing and an avoidable five-figure problem.
Missed prior years
If you have foreign companies you have not been reporting, do not simply begin filing the current year and leave the past unaddressed. When prior non-compliance was non-willful, delinquent Forms 5471 can usually be brought current through one of two IRS paths: the Streamlined Filing Compliance Procedures (which turn on non-willful conduct) or the Delinquent International Information Return Submission Procedures (which turn on reasonable cause). Both can reduce or remove the §6038 penalties for those who qualify, but they have different standards and are not interchangeable, so prior-year situations are screened before anything is filed.
Next step
Start with a short intake describing your company or companies, your ownership, and any years you may have missed. A preparer at Capital Tax Limited reviews which filings apply and the cleanest path to bring everything current.
Discuss your foreign-corporation filing Read the Form 5471 guide