5471 form, foreign company changed from CFC to non CFC etc.

Technical topics regarding tax preparation.
#1
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Is it common that a US shareholder of a foreign company with 40% combined US shareholder ownership does not need to file 5471? I walked through the filer categories and the taxpayer does not fall under any category. Also checked with taxpayer and there is no other possible ownership (constructive, indirect, etc) to trigger CFC status.
If no 5471 is required under this scenario, are there any other relevant filing obligations?

another questions is that if a non-CFC changed to a CFC, all the calculation of PTEPs, e&p not previously taxed, etc. starts from the time it becomes CFC?
what if for whatever the reason, the CFC turns to a non CFC again, back and forth. I want to have the idea how such changes impact the tracking of all the pteps and reclassifications.
 

#2
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???
 

#3
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That’s a lot of questions, can’t really be responded to in few words (really the issues go way beyond what was posed).

1. 5471 not required for holding an interest in a foreign Corp that is not a CFC or a PFIC when these is no change with shareholdings.

1a. 8938, possibly 8621 for a pfic could be required.

2. Re e&p, GILTI, Subpart F, etc - the change from the Corp being a non-CFC to a CFC is relevant.

3. The “flip-flopping” of ownership is a very convoluted question. Why would that happen? What else is going on?


Based on these questions , I would recommend you get someone to assist you with this subject matter until you’ve had time to learn the rules. The penalty exposure is extremely high to take shortcuts.
 

#4
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Thank you for the help!
 


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