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TaxRobin, Tax Consultant
Category: Tax
Satisfied Customers: 17610
Experience:  International tax
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US Tax Return, if I sold my shares in a UK Ltd Company

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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.
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 2 years ago.

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

If it is a controlled foreign corporation. That means 50% owned by US persons.
Customer: replied 2 years 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.

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 2 years 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?

That is the 5471 category you fall into
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