topic Form 5471 and FBAR in Get your taxes done using TurboTax

Form 5471 and FBAR

yasserak — Sat, 29 Jan 2022 18:15:35 GMT

I did setup an international company outside the US few years back. I reported it in the 2020 Tax Return using Form 5471

During 2020, I completed stopped all connection and activities with the company, withdraw all the funds, closed the bank accounts with this company...etc.

Do I need to do anything related to the company in 2021 Tax Return? or should I just not file 5471 and that's it?

Also, since I reported that bank account in 2020 Tax Return FBAR and now the bank account is closed, should I mention anything about that bank account in 2021 Tax return or just not include the closed bank account in FBAR

Thank you

Re: Form 5471 and FBAR

pk — Sat, 29 Jan 2022 19:21:04 GMT

@yasserak , assuming that you are US person ( citizen / GreenCard ) and therefore filed a form 5471 during 2020 tax year denoting that this was the final 5471 --- did you check that box ? ---- there is no need for another 5471, since in 2021 you had no official role in that foreign entity.

For FBAR, if the account earlier reported no longer exists, then there is nothing to report. If you have other foreign accounts , then those need to show up on 2021 FBAR and also noted ( check box ) on your 2021 return.

Does this help ?

Re: Form 5471 and FBAR

yasserak — Sat, 29 Jan 2022 20:09:40 GMT

That helps a lot, Thank you @pk 😊

Unfortunately, this check box wasn't checked

What should I do in 2021 return?

Re: Form 5471 and FBAR

pk — Sat, 29 Jan 2022 23:07:43 GMT

@yasserak , in order to minimize complications just do it for 2021, even though, the correct path would be to amend 2020 return -- but that , under current IRS person power issues , probably would not get into the system for quite sometime.

Re: Form 5471 and FBAR

yasserak — Sat, 29 Jan 2022 23:17:15 GMT

Thank you @pk , appreciate your help 😀