Form 5471 & Rev. Proc. 92-70

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InSearchOf...
Posts: 16
Joined: Sun Apr 10, 2011 2:07 pm

Form 5471 & Rev. Proc. 92-70

Post by InSearchOf... » Wed Apr 03, 2019 8:35 pm

Hey everyone,

I'm reading up on the changes to Form 5471 to understand what I need to file. In the instructions it references Rev. Proc. 92-70 for further guidance but I can't find that on the IRS website. Specifically I'm looking for the definition of a dormant foreign corporation to determine if I meet the test and therefore have a much simplified filing requirement.

Googling I found this but I want to ensure it's accurate per Rev. Proc. 92-70:

(1) the foreign corporation conducted no business and owned no stock in any other corporation other than another dormant foreign corporation;

(2) no shares of the foreign corporation (other than directors’ qualifying shares) were sold, exchanged, redeemed, or otherwise transferred, nor was the foreign corporation a party to a reorganization;

(3) no assets of the foreign corporation were sold, exchanged, or otherwise transferred, except for de minimis transfers described in (4) and (5) below;

(4) the foreign corporation received or accrued no more than $5,000 of gross income or gross receipts;

(5) the foreign corporation paid or accrued no more than $5,000 of expenses;

(6) the value of the foreign corporation’s assets as determined pursuant to U.S. generally accepted accounting principles (but not reduced by any mortgages or other liabilities) did not exceed $100,000;

(7) no distributions were made by the foreign corporation; and

(8) the foreign corporation either had no current or accumulated earnings and profits or had only de minimis changes in its beginning and ending accumulated earnings and profits balances by reason of income or expenses specified in (4) or (5) above.

If this is correct then I meet the test.

Any guidance on finding the Rev Proc on an official site would be appreciated.

InSearchOf...
Posts: 16
Joined: Sun Apr 10, 2011 2:07 pm

Re: Form 5471 & Rev. Proc. 92-70

Post by InSearchOf... » Thu Apr 04, 2019 10:59 pm

Doing some more googling all references to a dormant foreign corporation points to IRS Rev. Proc. 92-70 are dated prior to the tax changes for 2018. Asking my question above a different way...Did the tax changes for 2018 change the definition of a dormant foreign corporation as noted in Rev. Proc. 92-70?

If not then I meet the test and can file a simplified Form 5471.

Thanks for any insight.

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