Schedule J: Accumulated E&P of CFC - IRS Form 5471

Schedule J contains information about the CFC's Earnings and Profits (E&P). More importantly, Schedule J tracks the corporations various balances of Previously Taxed E&P (PTEP) at the beginning of the year, current year additions/subtractions & distributions, and ending year balances.

The corporation's E&P can be categorized into three baskets, which are Section 959(c)(3), Section 959(c)(2) and Section 959(c)(1). In our example, the U.S. shareholder has a Subpart F inclusion related to Foreign Personal Holding Company (FPHC) income which creates an inclusion under Section 951(a)(1)(A). The earnings are added to the Section 959(c)(2) basket.

This is the 12th video in a series which covers the preparation of IRS Form 5471 for the 2021 tax year. Each schedule has a separate video within the playlist titled "IRS Form 5471 - Beginner Series". A list of all of the videos with links is included in the description below.

The IRS Form 5471 is filed by U.S. persons that have an interest in a Controlled Foreign Corporation (CFC). The sample Form 5471 covered in this playlist is for a U.S. person that is a majority shareholder (75%) of a Cayman Island's Corporation. The remaining 25% of the stock is owned by a non-U.S. shareholder.

The CFC invests in various stocks, bonds & other investments, so the earnings of the CFC will constitute Subpart F income, specifically Foreign Personal Holding Company (FPHC) income under Section 954(c).

The link to the complete playlist and each individual video is below.

Playlist:    • IRS Form 5471 - Beginner Series  

Complete list of videos in the tutorial. We recommend watching in the order presented.

1. Introduction & Page 1 of Form 5471:    • How to Prepare IRS Form 5471 - Introductio...  
2. Schedule B: U.S. Shareholders:    • Schedule B: US Shareholders - IRS Form 5471  
3. Schedule C: Income Statement:    • Schedule C: Income Statement - IRS Form 5471  
4. Schedule F: Balance Sheet:    • Schedule F: Balance Sheet - IRS Form 5471  
5. Schedule H: Current E&P:    • Schedule H: Current E&P - IRS Form 5471  
6. Schedule I & Worksheet A: Shareholder's Income from FC:    • Schedule I: Summary of Shareholder Income ...  
7. Schedule G: Other Information:    • Schedule G: Other Information - IRS Form 5471  
8. Schedule E: Income & Taxes Paid:    • Schedule E: Income Taxes Paid or Accrued -...  
9. Schedule E-1: Taxes Related to Type of Income:    • Schedule E-1: Taxes Paid or Deemed Paid - ...  
10. Schedule M: Related Party Transactions:    • Schedule M: Transactions with Related Part...  
11. Schedule I-1: GILTI:    • Schedule I-1: Global Intangible Low-Taxed ...  
12. Schedule J: E&P of Corporation:    • Schedule J: Accumulated E&P of CFC - IRS F...  
13. Schedule P: Previously Tax E&P of US Shareholder:    • Schedule P: Previously Taxed E&P of US Sha...  
14. Schedule Q: CFC Income by Groups:    • Schedule Q: CFC Income by Groups - IRS For...  
15. Schedule O: Organization & Stock Acquisition:    • Schedule O Part 1 & 2: Organization & Acqu...  
16. Category 3 Indebtedness Statement:    • Category 3: Indebtedness Statement - IRS F...  
17. Schedule R: Dividend Distributions:    • Schedule R: Distributions From Foreign Cor...  
18. Where to Report Subpart F Inclusion:    • Where to Report Subpart F Income - IRS For...  

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