A Taiwan financial statement can carry three details that are easy to lose in a forwarded spreadsheet: the reporting period, the currency and the version date. Keep them visible. For a US person whose Form 5471 obligation has already been confirmed, those details help the Taiwan accounting team and US preparer discuss the same set of figures.
The IRS description of Form 5471 concerns certain US officers, directors and shareholders of certain foreign corporations. Owning a Taiwan investment does not, by itself, answer every filing question. This column starts after the relevant year's obligation has been determined and addresses the records handoff, not an assessment of who must file.
Begin with the period and required schedules
Ask the US preparer to identify the period and schedules needed for the confirmed filer category. Put that request beside the Taiwan company's closing calendar. If the periods differ, identify the dates that require additional information before producing another year-end spreadsheet.
Which file was used for the last preparation? Keep the prior package and any later corrections available for comparison. A current statement marked final may still need an explanation of opening balances that changed after the previous package was sent. Note the change without overwriting the older file.
From local accounts to the required presentation
For Schedule C, the December 2025 Form 5471 instructions require information in the corporation's functional currency under US GAAP, with US GAAP translation. Schedule F reports dollars and generally uses US GAAP translation from the functional-currency balance sheet. Special DASTM rules apply where relevant.
Preserve the source figures. A useful working package keeps the local financial statements, trial balance, account descriptions, adjustment entries and exchange-rate workings connected. Ask the preparer to identify the accounting differences that require further details. A translated account title does not itself document the calculation behind an adjustment.
What explains a changed balance? Link each adjustment to its source account and supporting calculation, and identify who prepared it. When Taiwan staff answer a question about a figure, retain the answer with the file version they reviewed. This makes the response reproducible if the preparer asks again.
Book income and US earnings and profits
Schedule H addresses current earnings and profits for US tax purposes. The instructions describe adjustments from foreign book income to US GAAP and US tax principles, or GAAP-to-tax adjustments where the books already use US GAAP in the functional currency. Applicability depends on the required schedules; local net profit should not simply be relabelled as US earnings and profits.
Supporting material may include the entries and calculations behind depreciation, inventory, taxes or other items the preparer identifies. Keep the request specific. A worksheet should show where its starting amount appears in the accounting records and how each proposed adjustment changes it. The preparer remains responsible for determining the US treatment.
Tax and transaction records
IRS information also describes schedules for foreign taxes, related-party transactions, ownership changes and distributions. The relevant schedules determine what additional records to request. Payment advice, tax filings and payment receipts, shareholder records or intercompany ledgers can then be gathered against an identified question instead of bundled without context.
Reporting-year changes can affect the request. In a September 2026 update to Schedule E instructions, the IRS addresses foreign-tax allocation for corporations affected by repeal of the one-month deferral election. Ask the preparer whether the company is affected and whether additional calculations or statements are required; the update describes reliance on proposed rules subject to their stated conditions.
Separate a tax expense entry from evidence of an actual payment. Preserve dates and currencies on both. Similarly, a dividend decision, an amount recorded as payable and a bank transfer describe different events; retain the documents showing how those events relate when the preparer requests distribution information.
Before the package is sent, select a reported amount and trace it back to the trial balance or underlying record. Repeat that check for any material adjustment requested by the preparer. The handoff is usable when the recipient can identify the source file, period and calculation without guessing which version supplied the number.
Official sources
- IRS: About Form 5471, current forms and developments
- IRS: Instructions for Form 5471, including Schedules C, F and H
- IRS: September 2026 update to Schedule E foreign-tax allocation reporting
Checked October 14, 2026, using the December 2025 instruction revision linked by the IRS and the September 2026 Schedule E update. Confirm the rules applicable to the year being prepared. This column does not determine filer status, tax liability, filing deadlines or penalty relief.
Frequently Asked Questions
- Does every US shareholder of a Taiwan company file every Form 5471 schedule?
- No. The IRS describes Form 5471 as applying to certain US officers, directors or shareholders of certain foreign corporations. Filer categories, exceptions and required schedules must be determined for the relevant year. This article begins after an obligation has been confirmed; it does not make that determination.
- Can the Taiwan financial statements simply be copied into the US form?
- The December 2025 instructions specify US GAAP reporting and translation for Schedule C and, generally, US GAAP translation into dollars for Schedule F. Schedule H can require adjustments for US earnings and profits. The preparer needs the underlying figures and the applicable accounting adjustments, not only the final Taiwan statement totals.
- What should the Taiwan accounting team send first?
- A practical starting package identifies the entity, reporting period, currency and version of the financial statements and trial balance. The US preparer should then specify the schedules and supporting details needed for the confirmed filing obligation. This is a coordination method, not a universal statutory attachment list.
This article provides general information and is not legal advice on any individual matter.
