CCH Federal Tax Reports

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r o W c N m W m . - I f , but ta this pmagrapb. 2 or more m
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t o fmihi n b n r t i m u h i r r b 6 l a i ~(a) with respect t g the same fmign cnrpw~rion

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IF the ~ p l e
taxable year, the StEnury may by r y r h t i w prcwide that suh informau o n ~ l b c r c q u i r e d d yi m 1 prson.

.01 Amendd by P L 97-248 and P.L.92.455
(Deadwood Act). For details. s q the Code

VO~U~~CS.

C d t t R~

w w P.L.97-248

,197 Thr bill rrplrcn the curttnt Iweign peraonal
holding rwnpkny rrporcin# q u i r c r n t n t s . Tin bill
impares its rrWM murremcnlr on I@pcrrent(rather

d.m I- rrporu rrbw u f

h p c m * l Wing
tommk and h rmhe it p&bk for ~ h tnttrnal
c
Revemu
lo inch& tbe lac* personal kddiry c m plny r t m in a c o m b i d intema'tional r r w . In
p.nirular, it bulik Cbmnduiontr to dnignrte
the time w h m the Imign pr-1
r e p n b a m d returns mur1 br hlrd.

hoW~ngcomwny

U l t ~ h e rI prrron is rcpu*
m fik a return IS dcterthan SOPTCC~L)
IhSmbddc~d I h & n pcnaul W. m i d m the dale tbr return ir due. If, m that date, no
in# wrnpny a3 uell Is rn officers and direct-. The wmrn ir r e q u i d la, lik ( k r u w . lor example, the
ukuhtim d *rhethcr a p e r m is a lOprrcn8 rkrrr- < v a t i o n h a bsen dusdvsd). thcn (ilina is rquircd ol
bolkt invdindirect ownerahip as wcll a5 d i r e ! w n rhe pnrrns w l *err. diian. dirertors or lOprren1
tnbip
harrhm k l w La day d thr c ~ a ~ + ~sn u b l t
!-ear
fwwhwh there w& Iptm t t q c r d 14 lilt.
Thc r~guircdinfwmatim indudts both sharrhddtr
informaurn a d i r w m infmlim rs d l as w k
I t iko or marc pe-s
~ r required
r
to lilt. ihe bill
Mher n-ry
i n l o r m r l h ~as the Snre~aryshall prrpmidrr that L ~ %
C w r y may, by rc#ubt~onr.requirt
w n i . R q u i m d sharehaldcr iniomrion i m l h t h t
only art of &heml o 6k.
n r n s md
d 111 Persons who held sham.
4%md cqmnibk wcutiries durirq the t a u b l t
mr;r dexr~pt~cm
& each chu d sham a d thc ma1
Tht bill a1s adds r $1.000 civil pmlly lor lrilurt to
h u n k ds h a r ~ d
~ r t lha s ouistandinl: ~t yearunend:
file P P w r l ~ i g pcrmn.1
n
h M n cmppny
~
informrk numhr d a s a d each chu. optrans, & ccmvtflr- tion return. Thti pcmrlty data hat apply, b t . if kht
blr w r i u e held by tnch p e r m and any rhm&csin
failurn i s shmm ta br due to r r w b k cab*.
thr W q r d M.
milmr. nr *vertibk
~~unticr
dun% the year. Rbguitcd in~wneinlomatlm ~ncludcr
Thrr pmvalon apsrli b I d l u r 5 to rurnish iniormrthl l ~ c i g n-1
M d i cwnpry's
~
kwm.
cwm that *rrsdm m tht day after the dale dtfirzmcnt
mdris. ra*rblc iimme. and undistributed facign perand thrreai~tr.&m
Pmmme h i t t e e Resonal Miry cnrnpny i n r h Lw t k y t a r .
,
m 1954 Code Sec.
.20 M t t & Re
T h e bill clung& prexnt hr 10 girt thr lntrmal
Ucvtnue Stwict mar nrxibilrt? m c3hblirhin# ttliag
6035 w n n p r o d d % l
CCH 1SO%.

Ia

Redations
[136.681-] $1.6033-1. Returns of U.S. offkfs, dkaors and 10-percent
ahareholders of fareign pmonal holding companies for taxablt years beginning
after September 3, 1982.-4a) Rquiremen t oi ref urn1) I n general. For taxable.
years of a foreign personal holding cornpan!. beginning after September 3, 1% each
United Stares citizen or resident.who is an officer,director. or 10-perccnt shareholder of
the foreign p e m a l hdding tempany (as defined in =don 552) shall File&with his
income tax return, on or before the date that return is due, Form 5471 and the
applicable schtdufes to be completed in accordance with the instructions setting forth
corporate, shareholder, and income L f ~ r r ~ a t i oTor
n the fortign hrsonal holding company's annual accounting p e r i d that ends with or within the officer's. d~rector's. or
shareholder's taxable year.
(2) General corparate information. The general foreign personal holding
tornpany information rtquircd by this section w i ~ hrespect to each taxable year IS as
tollaws:
(I) The name and address and employer identification number (if any) of
the corporation;
(ii) fhe kind of business in which the corporation is engaged;
(iii) The dare of its incorporation,
(iv) The country under the laws of which the corporation i s incorporated;
I v ) A description of each class of stock issued and outstanding by the
corporation for the beginning and end of the annual accountingperiod;
(vij The number of shares and par value of common stock. of the
carparatian issued and outstanding as of the beginning and end of the taxable year;
92(10) CCH--Standard

Fcdcd T u R e ~ r t s

Rtg.glm60Wl(a)(2)(rl)
136,681

Piiqd~~&&

-

INFORMATION-FOREIGN

C O R P O R A T I O N S $6438 19 36,7401

63,067

Information Return of S C~rporotion

a CCH Explanation

'

t h e omissiofi ofinhmation or i n c l ~ s of
i ~incorrtct information on information returns or payee statemen&. see f 40.985.
F m 112M is not stridy'an.infomation~rtturnb u s e , under certain.
conditions, the cwporatim may be liable Tw'S capital gains tax, which is
computed on Scbeduk D d.thcform. Sct I 33,603.01---CCH. .

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.75 St.trtoe at Limitl6-Whae a
. sionr i&p#itc-incoaac
Ux return, fw Jihat#a d u r ~ l i d
S mrioa.&th.
the t k t s p l u m , oniy when the S mrpor.tion
statute mtmpl.~
k t a ia* ua +rt to elanbn S U m i r i.dlalin.
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t
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F&bk,R.!MTC861,Dsr46,&7.
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period d 1imit.W #I ustrrmtnt and edktim with mud tn the rorpontion. It is plly
~4whtbce~'aIomt~idetemrncd

w have becn imftodivc Lh.1 tht wum filed by
Ihc sukbpter S cqmaticn is trertcd as i c
v
ra~creturn ior iht
d Atht s h i m r d
l i m i h i h s Therefwe, the Comm~ssimerwas n w
pccvtattd by the stotutc of Iimitations from
,h-Yeroo
-i
from
in tk imomt.,d dtdwlions
d the scrkhapkr S -ation.
w . a h h a u TCY MJ, %, a , w y ~ b
Memo. 1%&96. hfM ar rrmkrr #-, ( C M ) 69-2

FAAritr61TCLa1769,Drc.47,14#311).WMrm.
199141,
1993-Ikc 47.'*Mk

rwfing

TO the m i t a r y . The IRS could n a adjust a
shadwkktr return bawd on an adjusimcnt to an
S corporrlian's return alter lhc striutc of limiw
taxtim9 had run on the a P a k rc'ump Y c r 5 had
*
~~~~~~g~
on a
-.
S ccrrpomion. ?ht IRS obtained an
USTI9597.414 F.Zd 749
cxtcnsim d the suture d limiiatims l r m the
Fdlawcd.
laxpryen but did no^ obcain an extension from
J-Ah*.
9tMJ.-.
H.317CM).'fC
t h e ~ c w p o n t i o n . ~ e I R S s a q u m cthat
n ~ the
Mtm 1937-559.
statu~e01 limi~rrimsi s !rigged by lht filing d
A noliri! of deficiency aitribulable 10 a disal- an information rtlum only if i~is dticrmined that
l d carpate
which was wni to the sole the corporatiam itself o w e a tax h a u s e of an
slurehddtr of 4n S corporation p r d LO t k up- invalid r1-h w btcauu of a valid appticalion
ntian d the thrce-year g e r M fw assessment . 01 one ol the txctp~ionsto no payment 01 tax by
against the individual, b u ~after the three-ycar the S corpwation was rejected. Adjustments to an
period for arsewment against the S corpwaiian, S corporatim's return arc b r r e d alter the t h m ' war characterid as timely. The slatute d limiyear limi~aijq?rs
p c r i d unless tk IRS abuins an
t a t i a ~was properly appkd a1 tbt shntchoWr tdtinsim f m i i tlw corporaurn.
1-1
and n M rc thc cvrporalc I m l since the
D.M.F;cl+. 13-9. W-1 csrc 19m.
877 FZd 756.
A informlion return liltd by rn S c w p r ~ i r n
funtCrrt.&nitQ l0/2/89.

[d 36,7401

I

INFORMATION WITH RESPECT TO
CERTAIN FOREtGN CORPQRATlQNS
Scc 6038(1 %5 CodcJ.(a) REQUIREIILY~.(1) In CEUEUAL.-EW~~
United Siarer pm shall furnish.

.

with r-pet1 co any
forei~ncorpwatian w h ~ c hsuch permn controls Ldihin the meaning of subrrrion (tM 1)).
mch information PS he *&tary
ma! prcscribr b rcgula~ionsrtlaling 1fl

(A) the name. the principal place oi burilless. and the nalure of business of such
foreign t ~ p o r a ~ i o and
n . ~ h country
t
undcr w h e laws incorva~cd;
IB) the post-1986 undistributed earnings (as dciined in section m i c ) ) such

+

fareign t a r p r a l i o n .

(C) a balance sheel lor such Ioreign curporotlon listtng

asstts, liabilirics.

and

capital:

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(D)lmnsactions berwten ~ u c hforeign corporation and(i)such p e r m ,

(iilany other corpora:im which such ptrson conrrols, and

( ~ i i ) any Unilcd Statcs Frran mning, a t thc ttmt he lmnsacrion takes
place. I0 percent w murc oi :nt ralur u l any clacs uf s : ~ kourstandina of such
fureinn curprratiom; and

8

63,068 1HFORMAT~OW-FQRElGH C O R P O R A T t O w 8 W (136.740)

-

(E)a W W i m d rbc vuiorrr
d rtocl; ~ s u n d i l yand
, 4 ti* showing
h e auac and drard. rid n u m b d h r u Why,+ UniydStuamWperwa
-rvlw'bmrhrrebdderdrecffd~ktu?y
timeh - u r a u d ' m ~
' ~ S p r c m t o r ~ i n * ~ . l u e d i n y W H W ~ ~ a l & f ~
-tioh
i.
- . .

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(F)qfeb infamation u thc SecFctvr m y regdm la purpawr d arryiw wt
Lhepwtwa*dKctioalX ;
~hrnuny.~.+&l*f~'d.&.I*rbbrrbnw~ir~~i~f
or related in nitW to r h r L rpodrd in rhe miccnor which the S K m u n
d e r r r a i be
~~
agp-t~
w
a
d Ihc p t w h u d thi titk.
(2) Pe*loD
INForturmTION tr TO 8 E FUWrlED, ETC-Tht inSmnmiion
-q u i r c d under pwqrapb (1) &all k I u M l
a h annul *ccwnting p e a d the
!
im&nmrmtim r d i w with w w i t h k h Uniid SUCLO-'a
t ~ b ~k r7 h c.
infwmalim
required shrll & lurniskl at such iimc and in such manntr as i t t t

+

SKrctary &dlby rtguhiionr prrwrik.

(3) LIMFTATIDH.-NQ iniwmrtion Ihrll bt r c q u i d tcl k Ivlrnirhtd u&r h i s
s u k t i o n with rcspcct to my iorchn c c q m r i i o n for any annual accrmnling p c d
u n h such i n i w m t h rwu m i r e d to bt iumihd under r c y h i i a w in elfcct on the
iirsr day ol such a n n u l accwnt'kg period.

.

dB

44) INFORMATION REQUIRED
CERTAIN WErrmDERS 1H CEUTAIH =--I[
any
f e i g n t w p ~ t i o nis trulcd u a mirdlcd fwelgn m q m m h fw any purpwc W r
subport F d part HI d suhbapter N d chapin I. ~ h tScrrcury may rrquirr m y
United S l a t e perm iwtd as a U n i t 4 SUW s h a r e h k h of such eorpwrtion tor any
purunder subprt F to tunrnish the i n h t i o n r q u i r t d u& paragraph 41).

(bl WUAR PlWALfY FOR FAILURE TO FUWISH
INFORU+nOH.( 1 1 IH CMEIUL-If my pum Oib 10 furnish, within the time prrxribed undtr
paragraph (2) ol subsaction (a), my i d m a t i o n with r t s p m 19 nny fort* catporptivn
rcquircd undtr paragfaph I l ) d rubssction (A). w c h p r s o n shall piy a penalty of $1.000
fw tach annual xcwnting perid with rcrpcct to which such failure exists.
12) I N U ~IN m n WERE~FAJLLW COWTI.'CVEC m-m.mmm.-~~
u?~
failure d t ~ r i t k din paragraph ( I ) continuer for more than. 90 dryr rittr iht day m
w h i h he krtury r m i l s n o i h 4 such railure to the Unitcd Suta p
rm,such p e m
shall pay a penalty (in addition LO ihe rmwnl requirrd under pl-ph
(1)) d 51,000
Ior u c h 3#ay period (or Iractiun thcrcd) during which such failure continues with
tnyKct to any a n n y l amtim.puid alter the u p i r a l i m of such 9 0 b y period. The
i n t r c l in
~ any penally u n b r this p l r a ~ r a p hshall n a c a d VZ4,aW).
(c) P E S . I LOF
~ R
-

FORUM TA)i CREm.-

jails- lo furnish, within th time
( 1 ) IN CENW~.-I~ a Uniltd S u ~ e
prnrribcd under paragraph (2) of s u k t i o n {a), any infwmaliwt w ~ l httspct to any
foreign cwpaalion requircd q d c r paragnph ( I ) ol subxiion (a), thtn4#
(A) in applying-&tion W1 {rrhting t o taxes of Ior"gn cwn!ria and paws
sions of the United Stat-) to such Unitcd States rson for the laxable ycar. the
*mount ci t a m (other i h uxes rcduccd under rurpragraph (B)) paid or deemed
paid (01 her than t h d e~ e d wid under scction W c ) ) t m any I-n
rwnly or
possession d ~t United Sulcs for rhc taxable year shall lx r e d u d by 10 percent.
and
(8) in applying mtion~902 (relating ro iwcign lax credit ior corporate
stockhdder in lorcign corporation) and WO (relating to special rules Iw foreign tax
c s e d i ~ )to Pny such United States p e f m which is a corponhn (or to any p e w
who acquires from any otkr p e r m any pwGrm of the inttmt d such mhtr ~
r
m
in any such foreign corwrnricm, bul mly 10 the extent d wch prtion) for any
taxable year. the amount of taxes paid or deemed paid by tach fortign wrpra~ion
i s - i ~ hrcspcft to whlch such person i 5 required :o furnish inlormarion Jutinq t h c
a ~ ~ n u aaccounting
l
p e r i d or pcrials with rcsptrl to which such inhrmaircm l a
rrhquirrd undcr paragraph ~ Z j u ~
f u h x c l l u nl a ) >hall k~cr c d ~ c dby lo prccnl

If wc-h iallurt continuer 90 days or more after notice d such failure by the SKrcury to
the United States person, ~ h c niht amaunL 01 the rcduaian un&r this paragraph shall be
10 prrccnt plus an ndditional 5 pcrcen~for each 3-mw~hpcriad, or fraction thereof.
during which such Iailurc ~u [um~shinformat~wrcontinues afitl the rxpirpkn such
W a y period.

1[ 36,740

Code 5 6038(a)(LlE)

01931, Cam-

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Inc.

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dqumbd
U r r p o r t r h c arm,
dbrrrl(drbcrtridarctplKhadwitbthe&
zidizcd fiaurcily) *ad & d i y numkr
CSSH)duqr)lenm&iu$rucbhmnthg,ia

dSf~tpptyiryfaappmvJCo~4panicuhr
form d raynctk d
i.a t~ requcsr 8 mim
f r ~ mt
k myaCcic di*C i i i ~m q u i r e ~ u
bacr~ddueb*rdrbip.

.ceOrdmacpllthtbtI~~~bCdCYCbpd~diu
rnffnwrIonrThtSSNlluykwlid&dmdcolkmdbyrbaltrcdF~W9urdmusc'b
o d a d t e d a n d c d k c t u l ~ i h c ' d * t w k f o r e ti* m i r y rcqu&mmti - k c su#d to a
LNtime the financing is pmvidcd. The isrw may
rcly on rhc Wl'pkndcr's diauh and cd- ml a u t t broker that o f l d vrriws nk opiions
t
plans.
kction d the moryagm's W.
Homvct; the in ccmncclim rviib ~ a g c m c n rclwtion
m r ~ t q u i dto fik a~ inlormatian
isruu is ul~imatclyk
fa tbc timtly, Tht MU
mum
certain plm opli~nr, depending m
accurate filing d Lhc iniorrmlion return.
wktbcr i t consliruted prrchaw u d c r (he par.
Resem repculing umkr # c t h aWXeX4)
Gcular ~k plan exccutcd.
The Strvicc will merw. until a t h e m i x p w
IRS L a t e r Ruling 9041W4, July IG. 1990.
vided in regulrtiwls oa form and inswuctions, iu
rulhoricy undtr w c t h 6011Yh) and M)95(tK4)
o! the Code to q u i r t tk ma) taulc reporting
perm to repat with rcspxI lo Iht p - m
of
ftdtrally-subsidized indtbttdness. Any such
reporling rcquircmenu will m~ k tlitcrivr k r
financing provided File Typeapplication/pdfFile Modified2007-08-24File Created2007-08-24