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TaxRobin
TaxRobin, Tax Consultant
Category: Tax
Satisfied Customers: 15731
Experience:  International tax
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US Tax Return, if I sold my shares in a UK Ltd Company

Resolved Question:

For the US Tax Return, if I sold my shares in a UK Ltd Company in 2011, for my 2012 Return would I need to complete a 5471 form if I was no longer a shareholder in 2012? I remained a Director but did not own any shares.
Submitted: 1 year ago.
Category: Tax
Expert:  TaxRobin replied 1 year ago.
HelloU.S. citizens and U.S. residents who are officers, directors, or shareholders in certain foreign corporations are responsible for filing form 5471.As a director it is your control that is relevant.Please remember to rate my service excellent once you have all the information you need. If you have any other questions, please ask me – I’ll be happy to respond. Thank you!
Customer: replied 1 year ago.

Thank you. What is meant by 'certain foreign corporations' please?

Expert:  TaxRobin replied 1 year ago.
If it is a controlled foreign corporation. That means 50% owned by US persons.
Customer: replied 1 year ago.

If I did not hold any shares (100% owned by non US person) then does this form need to be completed? I was a Director but not a shareholder so did not own the business.

Expert:  TaxRobin replied 1 year ago.
You are a Cat 3 filer as a director. A U.S. person who disposes of sufficient stock in the foreign corporation to reduce his or her interest to less than the stock ownership requirement.
Customer: replied 1 year ago.

What does Cat 3 mean in terms of filing? Is the 5471 form still required or is there an additional form you are referring to?

Expert:  TaxRobin replied 1 year ago.
That is the 5471 category you fall into
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