Does Form 5471 Apply to Solo 401k, Self-Directed IRA or IRA LLC?

Form 5471 Solo 401k or IRA

Form 5471 Information Return of U.S. Persons With Respect to Certain Foreign Corporations is is used by certain U.S. persons who are officers, directors, or shareholders in certain foreign corporations. The form and schedules are used to satisfy the reporting requirements of sections 6038 and 6046, and the related regulations, as well as to report amounts related to section 965.

The instructions to Form 5471 are not clear in that they don’t state if a retirement account such as a solo 401k or IRA for that matter  is required to file a Form 5471.

However, because Form 5471 implies that it applies to a 10% or more shareholder in a foreign corporation by a U.S. shareholder (directly or indirectly) the conservative approach may be to  file one on behalf of the solo 401k plan. It will be prudent to discuss with your tax adviser, of course.

Determination QUESTION

You wrote an article back on August 13, 2021 about whether Form 5471 is applicable to Solo 401ks, Self-Directed IRAs, and/or IRA LLCs. Did you ever determine whether Form 5471 applies to Self-Directed IRA, LLCs?

No, we have not been able to determine for certain. However, the following language seems to further point that it best to file it:

About Mark Nolan

Each day I speak with energetic entrepreneurs looking to take the plunge into a new venture and small business owners eager to take control of their retirement savings. I am passionate about helping others find their financial independence. Having worked for over 20 years with some of the top retirement account custodian and insurance companies I have a deep and extensive knowledge of the complexities of self-directed 401ks and IRAs as well as retirement plan regulations. Learn more about Mark Nolan and My Solo 401k Financial >>

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