The recently enacted H.R. 1, commonly known as the Tax Cuts and Jobs Act (TCJA), might increase the number of IRS Forms 5471, “Information Return of U.S. Persons With Respect to Certain Foreign Corporations,” required for the Dec. 31, 2017, year-end, or might create an obligation where none existed in the past.
The TCJA repealed IRC Section 958(b)(4), which precluded downward attribution from a foreign owner to a U.S. partnership, trust, or corporation under IRC Section 318(a)(3). This change is applicable to the last year beginning prior to Jan. 1, 2018, which means that it will apply retroactively to calendar-year taxpayers.