# UK limited company - form 5471 and other filings



## eminam777 (Apr 8, 2021)

Hi Bev, I came across this discussion which I found very helpful. Rather than create a new post, I thought to revive it given changes in requirements that from 2018, US citizens who are owners of foreign Limited Companies file Form 5471. 

I am an Employee of an UK private limited company that I own 100% and draw a salary from. I consulted a few Tax Accountants and they all tell me that I need to file Form 5471 and need to do it retroactively. I have two UK Private Limited Companies. I have not been filing Form 5471 and it's too late to file Form 8332. 

In principle, I agree with your views in post #10 and #13 and I do not think my UK private limited company meets the definition of Corporation..but the IRS may have another view.

Right now, the IRS doesnt know about my UK companies but I have been declaring the bank account balances on the FBAR..I would like to keep it this way if possible. 

I already pay UK Corporation Tax on my company profits, and I am stressed at the Idea that the IRS may want to also tax my UK companies profits..

Very grateful for any advice..


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## Bevdeforges (Nov 16, 2007)

Have moved this into a thread of its own as the post was originally added to a rather ancient thread. 

I definitely avoided filing any of the "extra" forms during the time my husband (non US citizen or taxpayer) and I ran a small business out of our home. But that was France and the business entity designations are rather different from those in the UK. During the whole time I reported my income as salary and did report the company bank account on my FBAR (since I did have signature authority as "comptroller" of the company). Never had any pushback from the IRS - though we all know things vary by case and over time. 

As long as you have no significant financial assets back in the US, you do what lets you sleep at night and handle any "issues" when and if they arise. (My philosophy, anyhow.)


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## eminam777 (Apr 8, 2021)

Bevdeforges said:


> Have moved this into a thread of its own as the post was originally added to a rather ancient thread.
> 
> I definitely avoided filing any of the "extra" forms during the time my husband (non US citizen or taxpayer) and I ran a small business out of our home. But that was France and the business entity designations are rather different from those in the UK. During the whole time I reported my income as salary and did report the company bank account on my FBAR (since I did have signature authority as "comptroller" of the company). Never had any pushback from the IRS - though we all know things vary by case and over time.
> 
> As long as you have no significant financial assets back in the US, you do what lets you sleep at night and handle any "issues" when and if they arise. (My philosophy, anyhow.)


That is my philosophy as well. But, the many accountants that I have consulted are scaring me..I am happy to pay for advice but can't seem to be able to get straight answers from the accountants..


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## Bevdeforges (Nov 16, 2007)

The accountants who are registered tax preparers have to consider their "reputation" with the IRS. If they are associated with returns that are questionable in any way, they can call down all sorts of problems on all their customers. So professional tax preparers tend to be pretty circumspect in their advice. 

If you are doing your own tax returns, you generally only need to shoot for a reasonable and "good faith" effort. And if you wind up getting questioned (or caught) it's only a matter between you and the IRS. The professionals have good reasons to take a cautious approach.


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## eminam777 (Apr 8, 2021)

I have managed to get the answer to my own question from a Tax Expert and am sharing to the benefit of others. The UK private limited company needs to file a Form 5471 and I was told that starting from 2019 I also had to report GILTI tax calculation even if no tax is due. 

So in order to get compliant, I need to file 3 years of Form 5471 under the Streamline Process. The rest of my past returns are fine so I will look into doing it myself using a Tax Software and some expert help..it would save me the $2K that I was quoted.


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