Determining US Shareholder and CFC status for your Corporation

Determining US Shareholder and CFC status for your Corporation

http://ift.tt/1RfwK1f The IRS has publicly stated that they are targeting international issues in their audit process. They have even created something called an IPU, or International Practice Unit. These IPU's breakdown how to audit certain situations for the IRS employees. The IPU on determining US Shareholder and CFC status is an important one. Once the IRS determines this, they can then audit all the reporting requirements that go along with that status. For instance, did you file Subpart F or Form 5471? If not, there are steep penalties that you could owe. In this video, we talk about the IPU instructions. They list step by step instructions for the auditor to follow. First, they must determine if the foreign corporation is a CFC. This is dependent on the stakes that US shareholders hold in the corporation. They also outline what exactly makes someone a US shareholder. Once a determination is made, the IRS outlines exactly what other IPU's should be investigated to make sure you are in compliance! Even if they find you do not meet the CFC standards, they will still investigate other alternatives. And let's say we found some loopholes in their determination facts. If you have any questions about your corporation, or an international or domestic tax issue contact us for a consultation. Any information you share with us is subject to the attorney client privilege. IRSMedic, the law offices of Parent & Parent, LLP 888-727-8796 info@irsmedic.com http://youtu.be/9MRgvd4XL7M IRS Medic