Bulk Filing for Multiple Filers of Form 5471
Another form of relief when filing form 5471 for a company with multiple filers (US shareholders and directors/officers) is a single joint filing for form 5471. This greatly reduces the cost of filing this form as many filers with similar requirements can be done at one time.
This option is described by the IRS in their instructions of form 5471 as:
One person may file Form 5471 (and applicable schedules) for other persons who have the same filing requirements. If you and one or more other persons are required to furnish information for the same foreign corporation for the same period, a joint information return that contains the required information may be filed with your tax return or with the tax return of any one of the other persons.
The person filing on behalf of others should identify which category they are and the application filing requirements, in addition to Section F (When completing item F with respect to members of a consolidated group, identify only the direct owners (constructive owners are not required to be listed)).
The information in Item F for person(s) on whose behalf this information return is filed is as:
| Name | Address | Identify Number | Shareholder (Check if applicable) | Officer (Check if applicable) | Director (Check if applicable) |
|---|---|---|---|---|---|
| - | - | - | - | - | - |
| - | - | - | - | - | - |
| - | - | - | - | - | - |
A statement is required for corporate members that their filing requirements have been or will be satisfied. You should also state the IRS Service Center where the return was or will be filed, or if electronically, enter “e-file”.
All of the required schedules should be filed for the category of files, for instance a separate Schedule I must be filed for each person described in Category 4, 5 and unrelated section 958 (a) U.S. shareholders, or Seperate schedule P for Categories 1,4, or .5
For example, a Category 5 filer may file a joint Form 5471 with a Category 4 filer or another Category 5 filer. However for Category 3 filers (less requirements than Category 4 or 5), the required information may only be filed by another filer with an equal or greater interest (in terms of voting power or value of the foreign corporations shares). Therefore a Category 3 filer usually cannot have their information filed by a category 2 filer (least required filings, normally not shareholder in FC).
An exception to joint form 5471 filings is if the person filing Form 5471 on behalf of others is married to a person identified in item F and they are filing Form 1040 jointly, the statement described above does not have to be attached to the jointly filed Form 1040.
Conclusion
You can consider a bulk filing if your foreign corporation has many category of filers needing to complete form 5471. This could save you a lot of hassle in terms of filing time and possible fees for tax filing, and may streamline the whole process. But be sure to check with a tax professional on who may be eligible for the bulk filing. If you need more information about form 5471, contact us.
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