Form 5471 Category Filer Calculator 2026 β Foreign Corporation Reporting
Determine your Form 5471 filing category (1a, 1b, 1c, 2, 3, 4, 5a, 5b, 5c), required schedules, and penalty exposure for US persons owning interests in foreign corporations.
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Direct + indirect + constructive ownership combined %
All US persons owning 10%+ combined β determines CFC status Enter 0 if you still hold the stock
Number of years Form 5471 was not filed
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Filer Category
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Schedules Required
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Base Penalty (Non-Filing)
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Total Penalty Exposure
Filing Analysis
Required Schedules Checklist
Form 5471 Overview
Form 5471 is the IRS information return filed by US persons with interests in foreign corporations. The form is attached to your individual or business income tax return. Filing categories determine which parts and schedules you must complete.
Category Determination Flow
Step 1: Are you an officer/director appointed by a US person? β Category 2
Step 2: Did you acquire/dispose of stock (crossing 10% threshold)? β Category 3
Step 3: Do you own >50% of the foreign corp? β Category 4
Step 4: Is the corp a CFC (all US shareholders >50%)? Do you own β₯10%? β Category 5
Sub-categories: 5a (direct, non-consolidated), 5b (consolidated group), 5c (constructive only)
Step 2: Did you acquire/dispose of stock (crossing 10% threshold)? β Category 3
Step 3: Do you own >50% of the foreign corp? β Category 4
Step 4: Is the corp a CFC (all US shareholders >50%)? Do you own β₯10%? β Category 5
Sub-categories: 5a (direct, non-consolidated), 5b (consolidated group), 5c (constructive only)
Penalty Structure (IRC Β§6038)
Base penalty: $10,000 per form per year. Continuation penalty after 90-day IRS notice: $10,000 per 30-day period up to $50,000. Maximum per form per year: $60,000. The IRS can also reduce foreign tax credits by 10% for each failure year.
Sources and References (click to expand)
- IRS Form 5471 Instructions β Information Return of US Persons With Respect To Certain Foreign Corporations
- IRC Section 6038 β Information Reporting With Respect to Certain Foreign Corporations and Partnerships
- IRS Form 5471 Schedule M Instructions β Transactions Between Controlled Foreign Corporation and Shareholders or Other Related Persons
- IRS Publication 519 β US Tax Guide for Aliens (foreign corporation ownership context)
- Treasury Regulation 1.6038-2 β Information Returns Required of United States Persons With Respect to Annual Accounting Periods of Certain Foreign Corporations
- IRC Section 957 β Controlled Foreign Corporations; United States Persons
Extended
Multi-CFC Scenario Calculator + Penalty Exposure Table
Analyze multiple foreign corporation holdings, per-CFC categorization, ownership chain diagram, and cumulative penalty exposure by years of non-filing
Add multiple foreign corporation holdings to analyze filing obligations across your entire portfolio.
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| Corporation | Country | Your % | CFC? | Category | Key Schedules | Penalty/Yr |
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No corporations added yet. Add foreign corporations above.
Cumulative penalty exposure for each year Form 5471 is not filed, assuming IRS sends 90-day notice in year 3.
| Year | Base Penalty/Form | Continuation Penalty | Total Per Form | All Forms Combined | Cumulative Exposure |
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Visual ownership chain from the US taxpayer down through the foreign corporation structure.
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Frequently Asked Questions
Who must file Form 5471?
US persons (citizens, residents, corporations, partnerships, trusts) who are officers, directors, or shareholders in certain foreign corporations must file Form 5471. The five main categories are: Category 1 (US shareholders of specified foreign corporations under TCJA), Category 2 (officers and directors), Category 3 (persons acquiring or disposing of stock), Category 4 (US persons controlling a foreign corporation, over 50% ownership), and Category 5 (US shareholders in controlled foreign corporations β CFCs). Each category has different schedule requirements.
What is the penalty for failing to file Form 5471?
The base penalty for failure to file or furnish information required by IRC section 6038 is $10,000 per Form 5471 per year. If the failure continues for 90 days after IRS notice, an additional $10,000 per 30-day period (or fraction thereof) is assessed, up to a maximum of $50,000 in continuation penalties per failure. The total maximum penalty per form per year is $60,000 ($10,000 base + $50,000 continuation). Courts have upheld these penalties even when no tax was owed.
What is a Controlled Foreign Corporation (CFC) for Form 5471 purposes?
A Controlled Foreign Corporation is any foreign corporation in which US shareholders (each owning 10% or more of voting power or value) own more than 50% of total combined voting power or total value. For CFC purposes, ownership is measured on any day during the tax year. Attribution rules under IRC sections 958(a) and 958(b) expand what counts as ownership, including downward attribution from foreign entities after TCJA changes in 2017 that eliminated certain exceptions.
What schedules are required for Category 4 and 5 filers?
Category 4 filers (controlling US persons) must complete Schedules B (US shareholders), C (income statement), E (taxes paid), F (balance sheet), G (other information), H (current earnings and profits), and potentially Schedule I (Subpart F income) and J (accumulated E&P). Category 5 filers (US shareholders in CFCs) must additionally complete Schedule I (Subpart F income), Schedule P (previously taxed E&P), and Schedule Q (CFC income groups), plus Schedule M (intercompany transactions with related parties) and Schedule O (organization/reorganization).
What is the difference between Category 5a, 5b, and 5c filers?
Category 5 filers were split into subcategories by the 2019 instructions. Category 5a: US shareholders who are not members of a US consolidated group. Category 5b: members of a domestic consolidated group. Category 5c: US shareholders who constructively own stock through a foreign entity (downward attribution). Category 5c filers have reduced filing obligations and may not need to complete all schedules that a direct owner (5a or 5b) would complete.