ForumsTaxes and Payroll

Who Must Use This Form?

A U.S. corporation with non U.S.
shareholders -- who own 25% or more of the stock of the U.S.
corporation

• • must file this form in any year when the US based corporation has a

A separate form must be filed for
each foreign shareholder.

Generally, a reportable
transaction is any exchange of money or property with the foreign
shareholder
except for the payment of dividends, but the specific
transactions are listed in Part IV of the form
and in the instructions
to the form.

What Information Is Required?

This form basically requires the
disclosure of the foreign shareholders' name, address and country of
citizenship, organization or incorporation as well as the nature and
amount of the reportable transaction with each foreign
shareholder. This form is not required where various foreign
persons own 25% or more of the U.S. company in the aggregate. It is
only
required where any one foreign person owns 25% or more of the U.S.
corporation.

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