HOLDING COMPANY IRS FORM 5471
 
 
Who Must File
Generally, all U.S. persons described in Categories of Filers, below, must complete the schedules, statements, and/or other information requested in the chart, Filing Requirements for Categories of Filers , later. Read the information for each category carefully to determine which schedules, statements, and/or information apply.
Note.
 
When a schedule is required but all amounts are zero, the schedule should still be filed with one or more zero amounts. For schedules that are completed by category (that is, Schedule E, I-1, J, P, and Q), inclusion of a single instance of that schedule for any separate category will meet the requirement.
If the filer is described in more than one filing category, do not duplicate information. However, complete all items that apply. For example, if you are the sole owner of a CFC (that is, you are described in Categories 4 and 5a), complete all six pages of Form 5471 and separate Schedules E, G-1, H, I-1, J, M, P, Q, and R.
Note.
 
Complete a separate Form 5471 and all applicable schedules for each applicable foreign corporation.
When and Where To File
Attach Form 5471 to your income tax return (or, if applicable, partnership or exempt organization return) and file both by the due date (including extensions) for that return.
Categories of Filers
Category 1 Filers
In general, a Category 1 filer is a person who was a U.S. shareholder of a foreign corporation that was a section 965 specified foreign corporation (SFC) at any time during the foreign corporation’s tax year ending with or within the U.S. shareholder’s tax year, and who owned that stock on the last day in that year in which the foreign corporation was a section 965 SFC, taking into account the regulations under section 965. There are three different types of Category 1 filers, each described below: Category 1a filers, Category 1b filers, and Category 1c filers.
Except as otherwise provided in the instructions for each type of Category 1 filer below, the following definitions apply for purposes of Category 1:
U.S. shareholder.
 
For purposes of Category 1, a U.S. shareholder is a U.S. person who owns (directly, indirectly, or constructively, within the meaning of section 958(a) and (b)) 10% or more of the total combined voting power or value of shares of all classes of stock of a section 965 SFC. See section 951(b).
U.S. person.
 
For purposes of Category 1, a U.S. person is:
A citizen or resident of the United States;
A domestic partnership;
A domestic corporation; or
An estate or trust that is not a foreign estate or trust, as defined in section 7701(a)(31).
 
See section 957(c) for exceptions.
Section 965 SFC.
 
For purposes of Category 1, a section 965 SFC is:
A CFC (see Category 5 Filers , later, for definition); or
Any foreign corporation with respect to which one or more domestic corporations is a U.S. shareholder.
 
However, if a passive foreign investment company (as defined in section 1297) with respect to the shareholder is not a CFC, then such corporation is not a section 965 SFC.
See section 965 and the regulations thereunder for exceptions.
Category 1a Filer
A Category 1a filer is a Category 1 filer that is not a Category 1b or 1c filer.
Category 1b Filer
A Category 1b filer is a person who is an unrelated section 958(a) U.S. shareholder (defined below) of a foreign-controlled section 965 SFC. This type of Category 1 filer extends the relief for certain Category 5 filers announced in section 8.02 of Rev. Proc. 2019-40, 2019-43 IRB 982 to similarly situated Category 1 filers.
Unrelated section 958(a) U.S. shareholder.
 
For purposes of Category 1b, an unrelated section 958(a) U.S. shareholder is a U.S. shareholder with respect to a foreign-controlled section 965 SFC who:
Owns, within the meaning of section 958(a), stock of a foreign-controlled section 965 SFC; and
Is not related (using principles of section 954(d)(3)) to the foreign-controlled section 965 SFC.
 
Foreign-controlled section 965 SFC.
 
For purposes of Category 1b, a foreign-controlled section 965 SFC is a foreign corporation that is a section 965 SFC that would not be a section 965 SFC if the determination were made without applying subparagraphs (A), (B), and (C) of section 318(a)(3) so as to consider a U.S. person as owning stock that is owned by a foreign person.
Category 1c Filer
A Category 1c filer is a person who is a Related constructive U.S. shareholder. of a foreign-controlled section 965 SFC. This type of Category 1 filer extends the relief for certain Category 5 filers announced in section 8.03 of Rev. Proc. 2019-40, 2019-43 IRB 982, to similarly situated Category 1 filers.
Related constructive U.S. shareholder.
 
For purposes of Category 1c, a related constructive U.S. shareholder is a U.S. shareholder with respect to a foreign-controlled section 965 SFC who:
Does not own, within the meaning of section 958(a), stock of the foreign-controlled section 965 SFC; and
Is related (using principles of section 954(d)(3)) to the foreign-controlled section 965 SFC.
 
Foreign-controlled section 965 SFC.
 
For purposes of Category 1c, the term foreign-controlled section 965 SFC has the same meaning as provided in Category 1b Filers, above.
Additional Information for Category 1 Filers
When Category 1 reporting is no longer required.
 
A Category 1 filer must continue to file all information required as long as:
 
The section 965 SFC (or foreign-controlled section 965 SFC) has accumulated E&P related to section 965 that is reportable on Schedule J (Form 5471); or
The Category 1 filer has previously taxed E&P related to section 965 that is reportable on Schedule P (Form 5471).