Do I need to file Form 5471 for a defunct UK business with no activity?

So if OP never actually did anything with the business, would claiming it on FBAR also be required? And what about those FATCA requirements - do those kick in even if there's literally no money involved?

FBAR filing is only required if you have financial accounts with an aggregate value exceeding $10,000 at any point during the year. If the business never opened a bank account or if the account never held funds, then FBAR wouldn't be required for that particular entity. Regarding FATCA, the Form 8938 requirements are separate from Form 5471. You would need to report the foreign corporation on Form 8938 if it meets the specified foreign financial asset reporting thresholds, which vary depending on your filing status and whether you live in the US or abroad. However, if the business has no substantial assets or activities, the value of your interest might be minimal or zero, potentially falling below the reporting threshold.

How does this taxr thing work with UK business structures specifically? I've got a similar situation but with an LLP in Scotland that barely operated before I abandoned it.

Sounds interesting but I'm skeptical about AI tax tools. Does it actually give you personalized advice that you can rely on? I've heard horror stories about people getting audited after using tax software that missed international reporting requirements.

The tool specifically addresses UK entity structures including limited companies, LLPs, and partnerships. It analyzes the UK Companies House registration documents and can identify the proper US tax treatment based on entity classification rules. For Scottish LLPs, it applies the appropriate check-the-box classification principles to determine your filing requirements. As for personalized advice, it's not generic at all - it analyzes your specific documents and situation. What makes it reliable is that it cites the exact IRS provisions, revenue procedures, and tax court cases that apply to your circumstances. Every recommendation comes with the specific tax authority it's based on, so you can verify everything. Many users actually take the analysis to their accountant who can implement the recommendations with confidence because all sources are properly cited.

Yeah right. Nothing gets you through to the IRS these days. I've literally spent days trying to reach someone about international filing issues. If this actually worked, everyone would be using it and the IRS would shut it down immediately.

No hacking involved at all! It uses completely legitimate callback technology. The IRS phone system actually has a feature where if you're in the queue and get disconnected, you can be placed back in your original spot - this service basically automates staying in the queue without you having to physically wait on hold. It's 100% legitimate and used by tax professionals all the time. I was skeptical too until I tried it. They just keep your place in line and then call you when an agent is about to be available. It's basically like having someone else wait on hold for you, nothing shady about it. The IRS is well aware of the service - they can't shut it down because it's not doing anything against their rules, just efficiently using their existing callback system.

Wait how does this actually work? Do they like hack into the IRS phone system or something? Seems kinda sketchy to pay someone just to get through a phone queue.

Thanks, this is super helpful. So even though we never really operated, just the fact that we registered the business means I need to file? Is there any threshold for "minimal expenses" - we spent maybe £200 total on samples before abandoning the project.

Yes, the registration itself created a legal entity that you partially own, which triggers the Form 5471 filing requirement regardless of the minimal activity. The IRS is primarily concerned with disclosure of foreign entities, even dormant ones. There's no specific threshold for "minimal expenses" that exempts you from filing. However, the £200 you spent would simply be reported as expenses on the form. The good news is that with such minimal activity, your form would be quite straightforward - many sections would be zeros or not applicable. This is exactly the type of situation where the simplified reporting under Revenue Procedure 92-70 might be applicable, as others have mentioned.

I heard the penalties for not filing these international forms can be absolutely insane too. Like $10k PER FORM PER YEAR not filed. Did you end up having to pay any penalties when you finally filed yours?

@Asher Levin That s'a scary thought about the statute of limitations never starting! Did you end up using one of those penalty relief programs when you finally filed? I ve'heard the IRS has some options for people who didn t'know about these international filing requirements, but I m'not sure how they work in practice.

@Asher Levin Wait, that statute of limitations thing sounds terrifying! So you re'saying if I don t'file the Form 5471 for my UK business, the IRS could potentially audit me years down the road even if I file everything else correctly? That s'exactly the kind of nightmare scenario I was worried about. How did you find out about this - did a tax professional tell you or did you discover it through research? I m'starting to think I really can t'afford NOT to file this form, even if the business never did anything substantial.