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Forms 5471 and 5472: Meeting the Substantially Complete Standards

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 Monday, November 6, 2023

Recorded event now available

or call 1-800-926-7926

This course will discuss best practices for meeting the substantially complete standard for international reporting required for Forms 5471 and 5472 and as applied to other required foreign information returns.


Forms 5471 and 5472 are two of the most complex foreign information reporting forms completed by tax practitioners. Whether by oversight or newly acquired information, these forms are often incomplete or incorrect when submitted. Errors may include the omission of a country or transaction on Form 5472, the category may be omitted on page one, or a taxpayer may use an accounting method other than GAAP used on Form 5471.

Since the criteria for substantial compliance is a facts and circumstances determination, any number of problems could deem a foreign information return not substantially complete and not meeting the information reporting requirements of Sections 6038 or 6038A. The penalties for not meeting these reporting requirements are steep--$10,000 per month to a maximum of $50,000 if not timely resolved.

The penalty abatement process for these filings is challenging. Tax practitioners working with international clients need to understand the threshold for substantial compliance for these cumbersome international reporting forms.

Listen as our panel of foreign tax experts explains current information on meeting the substantial compliance requirements for foreign international reporting.



  1. Statutory provisions of IRC 6038A and 6038C
  2. Key definitions under statutory provisions and regulations
    1. Reporting corporations
    2. Reportable transactions
    3. Related parties
  3. Regulations (TD 9796) requiring foreign-owned DREs to file Form 5472
  4. Completing the form
  5. Penalties and penalty abatement provisions
    1. Impact of Farhy v. Commissioner on foreign reporting penalties
    2. Potential Claims for Refund


The panel will review these and other critical issues:

  • What foreign reporting deficiencies are considered substantially incomplete?
  • What forms, in addition to Forms 5471 and 5472, are subject to substantial compliance requirements?
  • What are the best steps to take toward penalty abatement for incomplete submissions?
  • How are omission oversights best handled or corrected?


Samtoy, John
John Samtoy

Tax Partner
Holthouse Carlin & Van Trigt

Mr. Samtoy’s practice specializes in international tax compliance and consulting services, with a focus on...  |  Read More

Sardar, Michael
Michael Sardar


Mr. Sardar has extensive experience on a wide range of tax controversy and white collar criminal defense matters. He...  |  Read More

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