Controlled Foreign Corporation (CFC)
If you are a US shareholder of a controlled foreign corporation (own 10% shares and control 10% of the voting rights), together owning 50% of the voting power of the foreign corporation’s outstanding shares, then there are certain compliance reporting that would need to be filed with the IRS. There are substantial penalties for failing to file
Information needed for CFC filings are
- Stock transactions
- Shareholder and company transactions
- Foreign tax details
- Details of accumulated earnings & profits
- Currency conversion information
- Reporting of foreign financial statements based on US GAAP
- Tax credits
- Transfer pricing
| Type of Filing | Form |
|---|---|
| Expat Taxes | 1040, 2555, 1116 and/or State Income Taxes |
| FBAR | 114 |
| FATCA | 8938 |
| CFC | 5471 |
| PFIC | 8621 |