# 5471 and tax year



## jspecefini (Feb 18, 2021)

Hello all,

I am new to this forum but have been browsing while trying to find a clear answer to this with no avail.

I am a US citizen with a private limited company in Hong Kong. 

Filed the 5471 last year via an accountant and was advised to keep the HK corporate tax year for the 5471, (which ends March 31). This year, new accountant told me that was incorrect and need to use US calendar year. But IRS website stated to report information for the tax year of the foreign corporation that ends with or within your tax year for 5471. Following that, it also stated to use calendar year of majority US shareholder (which I also am). If I amend to US calendar, I would essentially be reporting only part of the HK corporate tax year as the other half is not completed yet, thus lacking certain forms, tax credits, dividends, which will all be incomplete inaccurate. 

For those of you who file 5471 and majority US shareholders with foreign corporations under different tax years as the standard US calendar year, which tax year did you use? Thanks for all the help!


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## Moulard (Feb 3, 2017)

Unless it is a qualified business entity, all US tax returns need to be filed for the US tax year. Some partnerships, S corporations, personal service corporations (PSCs), and trusts can change their tax year using Form 1128 

The issue you face is common for anyone working in a coutnry where the tax year differs from the US. If you cannot change your tax year then you have to work on a cash or accrual basis according to the US fiscal year.


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