Hi, my husband (Swiss citizen, U.S. resident/green card holder) formed a corporation in Switzerland in October 2009. He is the only shareholder (100%). According to Swiss law, the accounting period for this first year will be October 2009-December 31 2010, then will be Jan 1-Dec 31 for all following years. My question is... When does he need to start filing form 5471? Do I file one for the 2 months of 2009? Or do I wait until it completes one full accounting period?

Any help or insights are appreciated!

Start filing in 2009.

QUOTE," When does he need to start filing form 5471?"---Form 5471 is due at the same time as your income tax return,including extensions. For instance, a calendar year corporate taxpayermust file the form 5471 with its form 1120 on or before Mar 15 2010 unless otherwise extended( up to Sep 15; in addition to the 6-month extension, taxpayers who are out of the country can request a discretionary 2-month additional extension of time to file their returns to December 15 for calendar year taxpayers). A duplicate of FOrm 5471 is NO LONGER required to be filed with the IRS service center in Philadelphia. Penalties potejtially apply when a taxpayer fails to file the form , late files the form, or provided inaccurate or incompletee info. In the form.

" Do I file one for the 2 months of 2009? or do I wait until it completes one full accounting period?"----If you are a calendar year taxpayer, then you should file the form for both Nov. and Dec. of 2009 by March 15 2010( as a corporation formed in Oct. 2009 as short tax year shorter than 12 months). And you file the form for 12 months( from Jan to Dec of 2010) by Mar 15 of 2011. If you are a fiscal year taxpayer, then
You should file the form due on the 15th day of the 3rd month after the end of the corporation's tax year.

Regarding the FORM 5471:
"The IRS estimate of the average time to prepare this form is about 38 hours, exclusive of record keeping time and the time required to learn about the relevant law and the instructions."

Thanks for the replies. This would be filed with his personal income return (2009 or 2010). According to Swiss laws (where the company was formed) the first tax year would go from October 2009-dec 31 2010. Since it was formed in Switzerland do I go by the U.S. end of accounting period, or the Swiss?

After posting the question, I found this:

http://www.law.cornell.edu/uscode/html/uscode26/usc_sec_26_00006038----000-.html
TITLE 26 > Subtitle F > CHAPTER 61 > Subchapter A > PART III > Subpart A > § 6038

Information reporting with respect to certain foreign corporations and partnerships
(2) Period for which information is to be furnished, etc.
The information required under paragraph (1) shall be furnished for the annual accounting period of the foreign business entity ending with or within the United States person's taxable year. The information so required shall be furnished at such time and in such manner as the Secretary shall prescribe
(4) Annual accounting period
The annual accounting period of a foreign business entity is the annual period on the basis of which such foreign business entity regularly computes its income in keeping its books. In the case of a specified foreign business entity (as defined in section 898), the taxable year of such foreign business entity shall be treated as its annual accounting period.

Am I right to conclude that since the end of the company's accounting period has not yet occurred (Dec. 31 2010), I would first file 5471 with his 2010 taxes in 2011?

BUT... section 898(c)(1)(A)(I) 2 requires that specified foreign corporations have the same tax year as the majority U.S. shareholder.

QUOTE,"Am I right to conclude that since the end of the company's accounting period has not yet occurred (Dec. 31 2010), I would first file 5471 with his 2010 taxes in 2011?"----You should report information for the tax year of the foreign corporation that ends with or within your tax year.So, I guess if you are a calendar year taxpayer, then you should file the form for both Nov. and Dec. of 2009 by March 15 2010( as a corporation formed in Oct. 2009 as short tax year shorter than 12 months)unless you include extension, and you should file the form for 12 months( from Jan to Dec of 2010) by Mar 15 of 2011.


" section 898(c)(1)(A)(i) 2 requires that specified foreign corporations have the same tax year as the majority U.S. shareholder."---- The annual accounting period of a specified foreign corporation is generally required to be the tax year of the corporation's majority U.S. shareholder. If there is more than one majority shareholder, the required tax year will be the tax year that results in the least aggregate deferral of income to all U.S. shareholders of the foreign corporation.
A specified foreign corporation is any foreign corporation treated as a Certain Foreign Corporation in which more than 50% of the total voting power or value of all classes of stock of the corporation is treated as owned by a U.S. shareholder.

Also, as a US citizen or resident alien (either under the US Tax Code or US INS Rules),if you( or your spouse) have a financial interest in or signature authority or other authority over any financial account in Swiss, and if the aggregate value of your personal bank account in Swiss exceeds $10,000 at any time during the calendar year, then must file FORM TD F 90-22.1 with the IRS. This means that assume that the balance inyour account in July was $4,000 and in September, the balance was $10,500, then you mus tfile the form;$10,500 in September>$10,000.

Ok, so I file them (there are 2 companies) for the 2 months in 2009 and then file the next ones for all of 2010. For the first year, do I list the accounting period as October 20, 2009-december 31 2009 (from the founding date of the company to the end of the year) or does the accounting period have to be the same as the tax year of the filer (jan. 1-dec. 31) since one company is a "specified"?

So even though the company did not exist until October, I still list it's accounting period as beginning 1/1/2009? Then all beginning of year amounts are 0? Thanks!

Hello, I hope someone is still watching this thread, I have a similar question and hope that the experts here may be able to help me.

We started a offshore dev center in India in 2006 with local initial capital investment. In 2009 the US company wired the investment to buy 70% stake in the India company. For various reasons, the India company reflected the investment to the RBI and Ministry of company affairs in 2011 and that's when the share certificate was provided to the US company.

The question:
When should the US company file the Form 5471? 2009 year end or 2011 year end?

Thanks in advance