If you own 10% or more of a foreign corporation you may be obligated to file form 5471 with your tax return. This includes foreign etntities that own real estate or businesses. If US persons own 50% or more you may also be subject to the GILTI TAX which can cause you to pay US income taxes on your share of the corporate income even though it is not distributed to you. The penalty for failing to file this form is $10,000 per year but if you file before the IRS discovers your error, there is a procedure where that penalty can be waived.
We can help you compete this complex form (even if you prepare your own tax return) and with catching up with the IRS to avoid penalties. EMAIL US FOR HELP
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