Is Form 5471 required if No income for C corp and Israeli subsidiary?


Delaware C Corp start up spent $$ over two years before folding. No income and all money spent in Israel writing software. No compensation to founders. Must we file 1120 and Form 5471? Need cpa or can we file ourselves?


asked Nov 11 '11 at 09:34
Press Onal
11 points

2 Answers


Form 5471 is required to be filed for US persons with respect to holding (shares) in certain foreign corporations. The penalty for non filing is USD 10000.

Also, Schedule O needs to be filed along with the same for reporting of acquisition/ disposition of the foreign stock.

(even if no money made, company folded up etc.) The above, as a matter of caution, should be filed as they are compulsorily required information returns. I'd suggest filling up the forms but getting it screened by a CPA.

answered Nov 13 '11 at 07:23
21 points


You always have to file a tax return, even if you made nothing. You also have to pay the C Corp fees as well.

You can certainly file it on your own without an accountant -- it sounds pretty straight forward.

answered Nov 11 '11 at 13:46
Jarie Bolander
11,421 points

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