Our 2020 IRS Form 5471 Practice Guide is here:https://www.irsmedic.com/blog/2020/irs-form-5471.html https://www.irsmedic.com/blog/2020/irs-form-5471.html#form5471penaltiesIF YOU OR YOUR CLIENT NEED HELP WITH FORM 5471 FILING AND PENALTY CONTACT US FOR IMMEDIATE HELP ---- 888 477-4258 info@irsmedic.comhttps://www.irsmedic.comThe Form 5471 madness continues...Even if the Foreign Corporation you have an interest in is Dormant, you still must fill out a Form 5471. Under the Rev. Proc. 92-70, eight conditions must be met in order for a foreign corporation to be considered dormant:1) The foreign corporation conducted no business and owned no stock in any other corporation other than another dormant foreign corporation2) No shares of the foreign corporation (other than the directors’ qualifying shares) were sold, exchanged, redeemed, or otherwise transferred, nor was the foreign corporation party to a reorganization3) No assets of the foreign corporation were sold, exchanged, redeemed, or otherwise transferred, except for minimis transfers described in 4 and 5 below4) The foreign corporation received or accrued no more than $5,000 of gross income or gross receipts5) The foreign corporation paid or accrued no more than $5,000 of expenses6) The value of the foreign corporation’s assets as determined pursuant to the US generally accepted accounting principles (but not reduced by any mortgages or other liabilities) did not exceed $100,0007) No distributions were made by the foreign corporation; and8) The foreign corporation either had no current or accumulated earnings and profits or had only de minimis changes in its beginning and ending accumulated earnings and profits balances by reason of income or expenses specified in 4 or 5 aboveIf your foreign corporation meets all of these requirements, you will complete only page 1 of Form 5471 for each dormant foreign corporation EVERY YEAR.The top margin of the summary return must be labeled “Filed Pursuant to Rev. Proc. 92-70 for Dormant Foreign Corporation.”Include filer information such as name and address, Items A through C, and tax year.Include corporate information such as the dormant corporation's annual accounting period.If you need assistance, don't hesitate to contact us.http://www.irsmedic.com Serving US taxpayers worldwide "Real Tax Attorneys for Tough Tax Problems" IRS Medic: Parent & Parent LLP 212.256.1335 888-727-8796Twitter: https://twitter.com/irsmedic Facebook: https://www.facebook.com/TheIRSMedic