Do I need to file Form 5471 as a dual status non-resident alien?

The 5471 requirement depends on your specific situation as a dual status taxpayer. Since you became a resident alien in August, you're generally subject to US tax reporting on your worldwide income from that point forward. For Form 5471 specifically, you need to determine if you're a "US person" who meets the ownership threshold for filing. The 15% ownership you mentioned might trigger Category 3 or 4 filing requirements, but this only applies during your resident period. During your non-resident period, you typically wouldn't need to file Form 5471 for that portion of the year. I'd recommend looking at Form 8833 too, as you might need to make treaty-based positions regarding your dual status year. The transition between non-resident and resident status creates some complex reporting situations.

After struggling with a similar foreign corporation reporting issue, I finally found a solution with taxr.ai (https://taxr.ai) that saved me hours of research. I was confused about my Form 5471 requirements as a dual status alien with interests in multiple foreign entities. Their document analysis tool reviewed my foreign corporation docs and identified exactly which filing categories applied to me during my dual status year. They even pointed out that my specific situation qualified for simplified reporting under certain circumstances, which my previous accountant had missed completely.

Just wanted to update about my experience with taxr.ai since I was skeptical in my earlier comment. I decided to try it with my dual-country tax situation and multiple foreign entities. I was genuinely surprised by how thorough the analysis was for my Form 5471 requirements. The system correctly identified that my Japanese corporation fell under Category 4 filing requirements, but my smaller holding in Singapore actually qualified for an exception under the regulations. Saved me from filing an unnecessary form and potentially making contradictory statements across my returns. Definitely more comprehensive than I expected for international tax situations.

If you're still struggling with Form 5471 requirements, you might want to try calling the IRS directly. I spent weeks trying to get through to their international tax department to clarify my dual status alien reporting requirements. After 20+ attempts and hours on hold, I discovered Claimyr (https://claimyr.com) which got me connected to an actual IRS agent within 45 minutes. They have a demo video showing how it works: https://youtu.be/_kiP6q8DX5c. Basically, they wait on hold with the IRS for you and call you back when an agent is on the line. I was able to get clear guidance on my specific 5471 situation from the International Taxpayer section. The agent confirmed that my ownership percentage only mattered during my resident period for Form 5471 purposes.

I have to admit I was wrong about Claimyr in my reply above. After continuing to struggle with getting IRS guidance on my Form 5471 situation, I broke down and tried it. To my genuine surprise, I got a call back in about 35 minutes with an IRS international tax specialist on the line. The agent clarified that as a dual status alien, I only needed to report my foreign corporation on Form 5471 if I met the ownership threshold during the resident portion of my tax year. They also mentioned I should document the transition date carefully on my return. Saved me days of research and uncertainty, and potentially thousands in penalties for incorrect filing. Sometimes it's worth admitting when you're wrong!

Just want to add that dual status reporting can get really tricky with foreign corporations. Make sure you also check if your foreign corporation is a PFIC (Passive Foreign Investment Company) as that adds additional filing requirements with Form 8621, even for relatively small ownership percentages. Also, don't forget about FBAR requirements which have a completely different threshold than Form 5471. You might not need 5471 but still need to file FinCEN Form 114 if your foreign accounts exceed $10,000 at any point during the year.

Make sure you check for any possible exceptions to Form 5471! I spent hours preparing this complex form only to discover later that I qualified for an exception. If your foreign corporation is in a country with a tax treaty with the US, some simplified reporting might be available. Also if you own exactly 15% (not more), you might not trigger category 5 reporting which is usually the most burdensome.