IRS Form 5471 Schedule J Accumulated Earnings & Profits (E&p) of Controlled Foreign Corporation

What Is IRS Form 5471 Schedule J?

This is a tax form that was released by the Internal Revenue Service (IRS) - a subdivision of the U.S. Department of the Treasury on December 1, 2019. The document is a supplement to IRS Form 5471, Information Return of U.S. Persons With Respect to Certain Foreign Corporations. As of today, no separate filing guidelines for the form are provided by the IRS.

FAQ

Q: What is IRS Form 5471 Schedule J?
A: IRS Form 5471 Schedule J is a form used to report the accumulated earnings and profits (E&P) of a controlled foreign corporation (CFC) to the Internal Revenue Service (IRS).

Q: What is a controlled foreign corporation (CFC)?
A: A controlled foreign corporation (CFC) is a foreign corporation that is controlled by U.S. shareholders, meaning U.S. persons who own at least 50% of the corporation's stock.

Q: What are accumulated earnings and profits (E&P)?
A: Accumulated earnings and profits (E&P) refer to the undistributed earnings and profits of a corporation that have not been subject to U.S. income tax.

Q: Why is it important to report the accumulated E&P of a controlled foreign corporation?
A: Reporting the accumulated E&P of a controlled foreign corporation is important because it helps the IRS determine if any U.S. shareholders owe additional taxes on their share of the corporation's earnings.

Q: Who is required to file IRS Form 5471 Schedule J?
A: U.S. persons who are considered to be shareholders of a controlled foreign corporation and meet certain ownership thresholds are generally required to file Form 5471 Schedule J.

Q: When is the deadline for filing IRS Form 5471 Schedule J?
A: The deadline for filing IRS Form 5471 Schedule J is generally the same as the deadline for filing the taxpayer's income tax return, including extensions.

Q: Are there any penalties for failing to file IRS Form 5471 Schedule J?
A: Yes, there can be significant penalties for failing to file IRS Form 5471 Schedule J, including monetary penalties and potential criminal penalties for willful noncompliance.