# 5471 help! Which categories?



## Heyo (Feb 3, 2018)

Hi all–I need some help to determine which categories I tick the boxes for on a 5471 being filed for me and another person. We are both US persons who own shares in a CFC. I am a director and shareholder of the company and he is only a shareholder. There are 100 shares of the company in total owned by three people.

*The company ownership in 2016:*

Me (director, US citizen): owned 45 shares/% of the company.
Dan (director, German citizen): owned 45 shares/% of the company.
Mark (shareholder only, US citizen): owned 10 shares/% of the company.

In 2017 both directors gave 5 of their shares to Mark at no cost, thus *in 2017 the new ownership was:*


Me (director, US citizen): owned 40 shares/% of the company.
Dan (director, German citizen): owned 40 shares/% of the company.
Mark (shareholder only, US citizen): owned 20 shares/% of the company.

Since in both years the company was owned by a majority of US persons that makes it a CFC. Because of that, I know that on the 2017 Form 5471 that I am filing for myself and Mark we are both *Category 5 *filers. Mark will also be a *Category 3* filer since he gained another 10% ownership over the company.

My question is, *am I also a Category 2 filer* since I was a director of the company, and even though my share ownerships didn't increase, I was the director of the company when another shareholder (Mark) who is a US person did see his ownership increase?

In that correct? I'm a bit confused by who files at a Category 2 because accountants have told me different things (one says I am a Cat 2 filer, the other says I am not).

Any help is GREATLY appreciated!!


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