# Fixing IRS tax forms



## cescolar (May 31, 2013)

I have spent many, many hours trying to determine if I had to file form 5471 or not. Finally, I found an old post from Bev where I learned that the definition of "certain foreign corporations" was not in the instructions for form 5471, but in form 8832!

I found that the IRS has a page where you can tell them how to improve their forms: Comment on Tax Forms and Publications.

I left them the following comment:

_"Form 5471 talks about "certain foreign corporations", but does not define the term. Page 7 of form 8832 "Foreign Entities Classified as Corporations for Federal Tax Purposes". This information (the list of countries and the name of the corporations in the local language) should also be included in the instructions for form 5471.

I have spent many, many hours trying to determine if I had to file form 5471 or not. If that information was in the instructions it would have saved me all that wasted time..."_

I believe that if something is broken, try to fix it, not just belly-ache!


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## BBCWatcher (Dec 28, 2012)

Good idea. Also, if you see a way to make the forms simpler, let the IRS know.


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## Bevdeforges (Nov 16, 2007)

Good work! Though I have to say that the IRS regulations aren't as hard and as fast as some folks like to think. When I worked in public accounting and did tax work (only briefly), they basically encouraged us to accumulate a number of supporting factors for any "assertive" tax stance we took.

I only stumbled onto that list of "foreign corporations" by accident. (And it's possible that the IRS intended that only for use on the form 8832 - but they never said so.) There is also the threshold for FATCA filing for overseas residents. If the combined value of your overseas assets is less than the threshold, I would certainly contend that you don't need to file any of those forms - though if they decide they want a closer look at your financial affairs for some reason they may interpret the rules differently.
Cheers,
Bev


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