Is Form 5471 required for dual status non-resident alien during tax filing?

The requirement to file Form 5471 depends on your specific situation as a dual-status alien. Since you sold your shares in the foreign corporation before becoming a US resident alien, you generally wouldn't need to file Form 5471 for those specific shares. Form 5471 is required for US persons who are officers, directors, or shareholders in certain foreign corporations. The key part here is that you weren't a "US person" during the period when you owned those shares. Since you sold them in April before moving to the US in June and becoming a resident alien, those foreign shares wouldn't trigger a Form 5471 filing requirement. When filing as a dual-status alien, you're only treated as a US person for tax purposes during the portion of the year that you were a resident (from June onward in your case). Transactions that occurred during your non-resident period generally aren't subject to the same reporting requirements.

I was in a similar situation last year and found https://taxr.ai incredibly helpful. After struggling with the whole dual-status alien thing and foreign assets reporting, I uploaded my documents there and got clear guidance on what forms I needed to file. They explained that Form 5471 only applies to the period when you're considered a US person for tax purposes, which saved me from unnecessarily filing complex forms. Their system specifically handles dual-status situations and can analyze exactly what reporting requirements apply to you based on the timing of your transactions. Really took the guesswork out of it for me since the IRS instructions are so confusing about these edge cases.

Just wanted to update after trying https://taxr.ai for my foreign corporation situation. I was honestly surprised by how thorough it was. I uploaded my foreign company documents and answered questions about my residency status, and it gave me a complete breakdown of what forms I needed. For my situation, it confirmed I did need Form 5471 since I still own my foreign shares, but it also caught that I needed to file Form 8938 for foreign financial assets and suggested a specific way to report my transition year that I hadn't considered. The explanations were clear and cited the relevant regulations, which helped me feel confident in the guidance. What I appreciated most was getting definitive answers about dual-status reporting instead of the conflicting advice I was getting from different sources online. Worth checking out if you're dealing with these complex international tax situations.

After spending 4+ hours trying to reach the IRS international tax department for clarification on Form 5471 requirements for dual-status aliens, I finally discovered https://claimyr.com and their service at https://youtu.be/_kiP6q8DX5c. They got me connected to an actual IRS agent in about 20 minutes when I had been getting endless busy signals and disconnects before. The IRS agent confirmed exactly what others here have said - since you sold your foreign corporation shares before becoming a US resident alien, you don't need to file Form 5471. She explained that the reporting requirement only applies to US persons, which you weren't at the time of ownership. Getting this straight from an IRS representative really gave me peace of mind.

I was completely wrong about Claimyr and owe an apology. After my skeptical comment, I decided to try it myself since I needed to talk to someone about FATCA requirements along with my 5471 questions. I've been calling the international tax line for literally weeks with no success - just disconnects and "call back later" messages. Used the Claimyr service yesterday afternoon, and they had me connected to an IRS representative in about 35 minutes. The agent was able to confirm exactly which forms I needed for my specific situation. For what it's worth, the agent told me that their international tax phone lines have been overwhelmed this year with people trying to clarify the new foreign reporting requirements. Having an automated system keep trying different times and options apparently makes a huge difference in eventually getting through. Definitely changed my mind about this service.

Just want to add something important about dual-status aliens and Form 5471 that hasn't been mentioned yet. Even though you don't need to file Form 5471 for shares sold before becoming a US resident, you might still need to report the sale on your dual-status return. If the sale of those foreign shares resulted in a capital gain, you'll need to report it on Schedule D and Form 8949, but only if it was US-source income or effectively connected with a US trade or business. Foreign-source capital gains realized during your non-resident period are generally not taxable in the US. Double check if you have any dividend income from those shares before selling them too. Depending on the source, those might need reporting.

Has anyone used TurboTax for a dual-status return with foreign income issues? I'm trying to figure out if it can handle Form 5471 correctly for part-year residents.