Who files 5471
A US person — citizen, resident, or US entity — that meets any of several thresholds for a stake in a foreign corporation. The categories (1–5) cover different levels of ownership and influence. Each category has its own filing content.
When our customers encounter it
Rare on the standard track, but it does come up:
- A non-US founder becomes a US tax resident mid-year. If they also own a non-US operating company, the US-side obligation suddenly includes 5471 for that foreign corp.
- A US co-founder joins. If they own 10%+ of your non-US holding entity, they personally may have a 5471 obligation.
Penalty
Starts at $10,000 per form per year, with escalating penalties for continued non-compliance. Similar architecture to the 5472 penalty but with a lower base.
Direction cheat sheet
| Form | Filer | Thing being reported |
|---|---|---|
| 5472 | US entity (with ≥25% foreign owner) | Foreign owner’s transactions with the entity |
| 5471 | US person | Foreign corporation they own |
If your fact pattern is multi-jurisdictional, the question “which 54-form do I file?” has a clean answer: who is US (filer) and who is foreign (subject)?