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I work in the US and own 33% of a foreign company. Last year I received no income from this company. I'm trying to understand whether I need to file form 5471 (or any other form) regarding this.

I've checked several IRS links but I'm still unclear whether it's needed.

https://www.irs.gov/individuals/international-taxpayers/certain-taxpayers-related-to-foreign-corporations-must-file-form-5471

https://www.irs.gov/pub/irs-pdf/i5471.pdf

https://www.irs.gov/uac/reporting-foreign-income-eight-tax-tips-from-the-irs-1

Do I still need to file form 5471 (or any other form apart from 1040) for my income tax statement?

Do I need to specify anything on my 1040 form?

How do I avoid the USD 10k penalty if the IRS determines I actually had to file this?

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    Better be safe then sorry! – Noah Cristino Aug 1 '17 at 0:00
  • I'm about to buy foreign company stake (as US Citizen). I foudn this online: [goldinglawyers.com/… If you search the page for "5471" it highly recommends filing, even if you are not receiving any income. I'm curious. Did you ever find out the response? Thanks, A – user1477126 Jun 30 '18 at 8:19
  • I consulted three different tax preparers, only one of them recommended filing. Last year I did file it, and this year I will not (still haven't filed, I requested an extension). I will update this comment after I receive a reply from the IRS – jlhonora Jun 30 '18 at 15:59

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