Completion of Form 5471 requires an in-depth understanding of international tax rules as well as sufficient technical knowledge to manage related data efficiently. After the issuing of Check-the-box regulations, preparation of Form 5471 became even more complex as many companies adopted the Check-the-box structure as part of their international planning to maximize tax benefits.

In response, the IRS has been modifying its administrative rules to collect more information in the form of additional information requests and the issuing of additional forms.

In an effort to substantially ease the difficulty of these tasks without compromising the integrity of the required calculations, Tax Technologies, Inc. has developed the e5471 module which manages to encapsulate international tax rules by way of a step-by-step process embedded in Tax Series.

By integrating the filing of international compliance entirely with data collection, TTI has simplified the process entirely. At the same time, we further seek to make our client’s compliance a value-added experience by way of integrating the source data and enhancing the output from the required data input.

For example, we can produce a dynamic organizational chart that can be used as part of international ax planning, produce planning scenarios from the compliance data and produce key planning data as part of standard reports so it can be used by planners.

General Features

  • Allows for integrated web-native data collection
  • Import all data needed for all entities
  • Utilizes a multi-year database to reduce data redundancy
  • Handles many general ledger data sources
  • Lets users map unstandardized data into a standardized chart of accounts format
  • Provides flexible automatic adjustments
  • Provides flexible user configuration of workpapers for E&P computation
  • Provides flexible user configuration of workpapers for sourcing
  • Grants efficient sourcing by way of master sourcing
  • Produces organizational structure with user configurable information
  • Handles simple to complex organizational structures computations including check-the-box rules, and foreign partnership rules
  • Utilizes web-native software allowing global allocation of work
  • Allows for easy to follow e-filing validation

Calculation Capabilities

  • Computes current-year earnings and profits
  • Lets users source income and directly allocate or apportion expenses using flexible methods
  • Applies the related party look-through rules for accurate income characterization
  • Allows for automated handling of circularity if applicable
  • Applies the De Minimis and Full Inclusion tests