Fill Form 8865 Fails 2024

Hi, my name is Dennis Prager. I'm the founder of the Brayer Tax Law Group. All we do is represent clients who have problems, both civil and criminal, with the IRS or the state of California tax authorities, such as the Franchise Tax Board, the Board of Equalization, or the Employment Development Department. Today, I'd like to talk a little about some of the problems that occur if you are required to file Form 5471 and failed to do so. Form 5471 is the information return of US persons with respect to certain foreign corporations. The first question is, who is required to file a Form 5471? The answer is not simple. There are several categories of persons who must file. They include US citizens and residents who are officers or directors of foreign corporations in which US shareholders acquire ten percent or more of the stock. This applies even if the officer or shareholder himself doesn't own any stock in the company. And by the way, the term persons includes not only individuals but also corporations, partnerships, as well as trusts and estates. Another category of persons who are required to file are those who acquire ten percent or more of the shares of a foreign corporation in a particular year. Also, if you own more than fifty percent of the stock of a foreign corporation, you must file Form 5471. For this purpose, you are treated as owning stock owned by certain relatives, such as your children, your spouse, or your parents. In addition, persons who own stock in a corporation, which owns stock in another corporation, are treated as owning stock in both corporations. Also, if you own options to purchase stock, they may be treated as if you actually own the stock. As you can see, it can get...