Form 5471 is required to be filed by U.S. citizens and residents who are officers, directors or shareholders in certain foreign corporations. In general, this form is required if you own (directly, indirectly or constructively) 10 percent or more of the voting power of a controlled foreign corporation. You may also be required to file if you acquire or dispose of sufficient stock in a foreign corporation that shifts your ownership interest above or below the 10 percent threshold.
A $10,000 penalty may be imposed for each annual accounting period of each foreign corporation that fails to furnish the required information. If notified by the IRS and noncompliance continues after 90 days, an additional $10,000 penalty is charged for each 30-day period, limited to $50,000.