💼 Let us take the worry out of preparing your tax !

🎯 Tax Solutions That Break the Mold

Choosing Monceau CPA means choosing peace of mind. We blend decades of experience with cutting-edge solutions, ensuring your taxes are managed with the precision and care you deserve.

✨ Why settle for the Ordinary ? Start your Journey with Us !

🌟 The Monceau CPA Edge

🌐 Global Expertise: Trusted by clients worldwide to deliver exceptional results.
💡 Fresh Thinking: Complex tax laws simplified into actionable steps.
⏱️ Effortless Filing: Streamlined processes saving you time and stress.
🏆 Proven Experience: A legacy of excellence in tax services.

👉 Ready to see how we can help ?
✅ Get Started Now !

📜 Understanding Form 5471

Certain U.S. individuals who have an interest in a foreign corporation must report it to the IRS by including Form 5471 with their annual U.S. tax return.

💡 Important Reminder: Entities not considered corporations under foreign law may still be treated as corporations for U.S. tax purposes, potentially falling within these rules.

💼 Purpose of Form 5471

This form helps the IRS understand the scope of U.S. taxpayers' foreign holdings, including:
🔍 Keeping track of earnings and profits of U.S.-owned foreign corporations.
💼 Identifying controlled foreign corporations (CFCs) and "subpart F income" (passive income subject to U.S. tax).
📈 Tracking possible IRC Section 956 inclusions (investments in U.S. property by CFCs that may trigger current U.S. tax liabilities).

👥 Who Must File ?

Form 5471 is generally required when a U.S. person owns at least 10% of a foreign corporation. Filing requirements vary depending on specific ownership scenarios:

📌 Category 2: U.S. citizens or residents who are officers or directors when a U.S. person acquires at least 10% stock or an additional 10%.
📌 Category 3: U.S. citizens or residents who acquire, sell, or drop below 10% ownership, or who become U.S. persons while owning 10%.
📌 Category 4: U.S. persons with "control" (over 50% ownership) of a foreign corporation for at least 30 uninterrupted days.
📌 Category 5: U.S. shareholders of a CFC for at least 30 uninterrupted days, owning stock on the last day of the taxable year.

⚠️ Penalties for Non-Filing

Failing to file Form 5471 can lead to significant penalties, including:
💸 $10,000 per year for failure to file or late filing. An additional $10,000 penalty applies for every 30 days the failure continues after a 90-day grace period (maximum $50,000 per failure).
📉 10% reduction in foreign tax credits claimed.
⏳ Unlimited statute of limitations for audits when information is not filed.
🚨 Criminal penalties in certain severe cases.

💡 Don’t let these penalties catch you off guard!

✨ Trust Monceau CPA to Navigate Your Foreign Tax Obligations ✨

📞 Contact us today to simplify your compliance journey and protect your financial peace of mind !

‍