IRS Form: Tax Year 2020 Separate Form 5471, Sch Q, Filing Clarification (IRC §957)

Clarification concerning filing a separate Schedule Q (Form 5471), CFC Income by CFC Income Groups, released August 23. Starting in tax year 2020 a new Schedule Q (Form 5471) is used to report the CFC’s income in each CFC income group to the U.S. shareholders of the CFC so that U.S. shareholders can use it to properly complete Form 1118, CFC Income by CFC Income Groups, to compute the high-tax exception, high-tax kickout, and tax code Section 960 deemed paid taxes. Specifically, the update clarified that separate Schedule(s) Q (Form 5471) are required to be filed only ...