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Course Details

Course Information
  • smart_display Format

    On-Demand

  • signal_cellular_alt Difficulty Level

    Intermediate

  • work Practice Area

    Tax Preparer

Date & Time
  • event Date

    Thursday, August 5, 2021

  • schedule Time

    1:00 p.m. ET./10:00 a.m. PT

  • timer Program Length

    110 minutes

Credit Information

  • BARBRI is a NASBA CPE sponsor and this 110-minute webinar is accredited for 2.0 CPE credits.

  • BARBRI is an IRS-approved continuing education provider offering certified courses for Enrolled Agents (EA) and Tax Return Preparers (RTRP).

$197.00
CPE
ALL

This course will provide practical steps for meeting the requirements of Form 5471 Schedules C and F, the income statement, and balance sheet for tax preparers. Our panel will provide insights into meeting the IRS requirements for including these statements, including reporting these in functional currency and under U.S. GAAP.

Faculty

Anthony V. Diosdi
Partner
Diosdi & Liu, LLP

Mr. Diosdi is an experienced trial lawyer who regularly defends individuals and corporations in matters involving tax controversies and government regulatory enforcement. He also has vast experience assisting clients who find themselves with unreported or undeclared bank accounts outside the U.S. Mr. Diosdi is acknowledged as one of the nation’s leading experts in contesting penalties associated with failing to file FBARs. In addition to representing clients in tax controversy matters, he advises clients on U.S. international tax matters, including tax planning with respect to their structures and transactions. In particular, Mr. Diosdi has experience advising on issues relating to tax treaties, pre-immigration planning for foreigners moving to the U.S., expatriation planning, tax planning for foreign companies doing business in the U.S., and subpart F income minimization. More recently, he has focused on helping clients navigate U.S. tax reform, including the regimes for Global Intangible Low-Taxed Income and Foreign-Derived Intangible Income, and the new limitations on foreign tax credits.

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Alison N. Dougherty
Managing Member
Googolplex Tax, LLC

Ms. Dougherty provides U.S. tax reporting, compliance, consulting, planning, and structuring solutions to U.S. and foreign corporations, partnerships, LLCs, individuals, and trusts. She specializes in U.S. international tax reporting and compliance with the preparation and review of the U.S. federal Forms 5471, 926, 8992, 8993, 5472, 8865, 8858, 8621, 8804, 8805, Schedules K-2 and K-3, 1116, 1118, 1042, 1042-T, 1042-S, 8832, 8833, 2555, 3520, 3520-A, 5713, 1120-F, 1040-NR, 8288, 8288-A, 8288-B, 8233, 8840, 8843, 8854, 8938, and FBAR. Ms. Dougherty has extensive experience working with U.S. businesses and individuals with outbound activities in foreign countries. She has also worked with foreign companies and nonresident individuals with inbound activities in the United States. Ms. Dougherty has significant experience with U.S. nonresident withholding tax, foreign partnership withholding tax, and FIRPTA withholding tax. She has managed U.S. tax compliance and advisory client engagements for U.S. C corporations, S corporations, partnerships, LLCs, U.S. individuals, U.S. trusts, foreign corporations, foreign partnerships, foreign LLCs, nonresident individuals, and foreign  trusts. 





Ms. Dougherty is a CPA and a tax attorney with more than 15 years of combined experience in public accounting, the practice of law, and corporate industry. She was previously a tax partner in a large regional public accounting firm in the Washington, DC area. Ms. Dougherty has served clients in various industries including technology, U.S. government contracting, commercial services, telecommunications, real estate, investment partnerships, commodities, high net worth individuals, and family offices. She has also served as a technical resource to other CPAs, accountants, tax professionals, public accounting firms, attorneys, and law firms.  

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Description

Form 5471, Information Return of U.S. Persons With Respect to Certain Foreign Corporations, filing is required for specific U.S. shareholders, officers, owners, and others with certain connections to certain foreign corporations. This form provides the IRS with information on activities between these individuals and foreign companies, which requires proper completion of the form. With penalties of $10,000 for non-filing, saying there are substantial penalties related to this form is an understatement.

Schedules C and F, the income statement and balance sheet, are integral parts of Form 5471. Although most businesses have these statements, knowing how to include these statements with the 5471 is not always apparent. The first instruction on the face of Schedule C, the income statement, states: "Important: Report all information in functional currency in accordance with U.S. GAAP." Some financial statements will need to be converted into functional currency. Other statements may be prepared but reported using tax basis, cash basis, or IFRS. Knowing how to handle these challenges is essential for tax professionals preparing this form.

Schedule F, the balance sheet, must be reported in USD, which leads to challenges with retained earnings reconciliation between the functional currency and USD balance sheets. Since it is for a specific date, the balance sheet exchange rate will use a different exchange rate than the one used covering a period for Schedule C. Handling these translation differences is confusing. Accurately reporting and including fixed assets on the balance sheet can aid in outlining the potential qualified business asset investment and corresponding GILTI deduction.

Listen as our panel of foreign tax experts explains converting financial statements to functional currency, converting financial statements to GAAP, handling translation adjustments, and best practices for properly including the income statement and balance sheet on Form 5471.

Outline

  1. Form 5471: an overview
  2. Schedule C: income statement
  3. Schedule F: balance sheet
  4. Best practices

Benefits

The panel will review these and other key issues:

  • Filing requirements for Form 5471
  • Translating financial statements to functional currency for Form 5471 Schedules C and using USD for Schedule F
  • Handling translation adjustments
  • Converting financial statements prepared on a basis other than GAAP to GAAP
  • Mitigating IRS scrutiny of the income statement and balance sheet

NASBA Details

 

Learning Objectives

After completing this course, you will be able to:

  • Understand the purposes of Form 5471 and Schedules C and F.

    Ascertain the categories of taxpayers required to file Form 5471.

    Verify that Schedules C and F are correctly completed and filed.

    Recognize the importance of GAAP when completing Form 5471 and Schedules.

    Determine that financial statements are correctly translated to functional currency.

    Establish the procedures to convert financial statements prepared on a basis other than GAAP to GAAP.

  • Field of Study: Taxes
  • Level of Knowledge: Intermediate
  • Advance Preparation: None
  • Teaching Method: Seminar/Lecture
  • Delivery Method: Group-Internet (via computer)
  • Attendance Monitoring Method: Attendance is monitored electronically via a participant's PIN and through a series of attendance verification prompts displayed throughout the program
  • Prerequisite:

    Three years + business or public firm experience at mid-level within the organization, preparing complex tax forms and schedules, supervising other preparers/accountants. Specific knowledge and understanding of Form 5471, U.S. GAAP, functional currency, translating financial statements, and the treatment of foreign-sourced income received by U.S. taxpayers; familiarity with Schedule C income statement, Schedule F balance sheet, and categories of filers for Form 5471 purposes.

Strafford Publications, Inc. is registered with the National Association of State Boards of Accountancy (NASBA) as a sponsor of continuing professional education on the National Registry of CPE Sponsors. State boards of Accountancy have final authority on the acceptance of individual courses for CPE Credits. Complaints regarding registered sponsons may be submitted to NASBA through its website: www.nasbaregistry.org.

IRS Approved Provider

Strafford is an IRS-approved continuing education provider offering certified courses for Enrolled Agents (EA) and Tax Return Preparers (RTRP).