I own 80% of a foreign startup directly. Do I file Form 5471 as Category 4, Category 5, or both?
I am a U.S. person living in California and directly own 80% of a foreign software company in Singapore. The company is early-stage, has no distributions, and most of the discussion so far has been about whether the foreign corporation is a CFC. But my preparer then started talking about Category 4 control and Category 5 U.S. shareholder reporting as if those were different things.
That is where I got confused. I assumed one form meant one filing category, but now it sounds like my ownership could put me into more than one bucket at the same time. I want to know which categories actually apply before we build the wrong schedule package.
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