Effective January 1, 2009, the IRS has started to automatically assess a $10,000 penalty for each late filed Form 5471, Information Return of U.S. Persons With Respect to Certain Foreign Corporations. The penalty has been on the books for years, but has rarely been enforced. Now, in order to encourage greater compliance, the IRS is automatically assessing a $10,000 penalty for each Form 5471 that is filed late. Another reason to file extensions and returns on a timely basis, even if there is no tax due.
Foreign subsidiary tax filings (Form 5471): avoid the $10,000 penalty
July 13th, 2009 by Daniel DeLau