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Form 5471 Attribution Rules: Categories of Filers and Rev Proc 2019-40 Safe Harbors

Note: CLE credit is not offered on this program

Recording of a 110-minute CPE webinar with Q&A

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Conducted on Thursday, June 13, 2024

Recorded event now available

or call 1-800-926-7926

This course will explain the attribution rules for stock ownership for individuals and entities and the filing requirements of Form 5471. Our panel of international tax experts will discuss determining direct and indirect stock ownership that can result in unexpected filing obligations.


Family attribution and constructive ownership determinations are complex. IRC Section 6038 and the related regulations require reporting specific information about foreign corporations and partnerships. Filing Form 5471, Information Return of U.S. Persons With Respect to Certain Foreign Corporations, can satisfy these requirements. Not filing can generate an initial penalty of $10,000 that can rise to a maximum of $50,000 per unfiled form. Individuals without direct stock ownership, or less than 10 percent, could still have a filing obligation through attribution rules.

Revenue Procedure 2019-40 provides some relief by providing three safe harbors. However, this relief is generally limited to U.S. shareholders of foreign-controlled CFCs subject to reporting requirements after repealing Section 958(b)(4).

Listen as our panel of foreign tax reporting veterans defines complex terminology, provides examples of common attribution scenarios, and assists tax practitioners in determining filing requirements and the category of filers for Form 5471. International tax practitioners must understand how direct and indirect stock ownership is determined and reported on Form 5471.



  1. Form 5471 attribution rules: an overview
    1. Safe harbor rules under Revenue Procedure 2019-40
    2. Defining CFCs, U.S. shareholders, and U.S. persons
  2. IRC Section 958
    1. Direct and indirect stock ownership
    2. Unrelated and related shareholders
  3. Category of filers
  4. Attribution examples
  5. Applicable penalties
  6. New Schedule R


The panel will review these and other critical issues:

  • Examining the new Form 5471 categories of filers
  • Qualifying for the safe harbors under Revenue Procedure 2019-40
  • Applying the Section 318(a) family attribution rules for Category 4 filers
  • Determine filing requirements for categories of filers
  • Decide when related and unrelated parties may have 5471 filing requirements
  • Filing New Schedule R for distributions from foreign corporations


Diosdi, Anthony
Anthony V. Diosdi

Diosdi & Liu

Mr. Diosdi is an experienced trial lawyer who regularly defends individuals and corporations in matters involving tax...  |  Read More

Liu, Kerrin
Kerrin N.T. Liu

Diosdi & Liu

Ms. Liu focuses on civil tax litigation, representation before Internal Revenue Service Criminal Investigations,...  |  Read More

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