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Instructions and help about irs form 5471 schedule m

form 50 471 Schedule M reports transactions between a controlled foreign corporation and certain related persons Schedule M is required to be included with form 54 71 if the person is filing as a category 4 filer generally a category 4 filer is a u.s. person who had control of the foreign corporation for at least 30 days during the year Schedule M is completed in u.s. dollars in the exchange rate is entered here lines 1 through 11 show income items lines 13 through 23 show expense items lines 25 and 26 show intercompany loans sometimes people get confused as to whose income or expense items are being referred to in the first column for incorporation or the other persons listed the way that I remember it is to start here by saying did the foreign corporation sell inventory did the foreign corporation receive commissions did the foreign corporation purchase inventory then I say if the foreign corporation sold inventory who did it sell the inventory to did it sell the inventory to the US

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