This Schedule H Form 5471 guide explains the IRS Current Earnings and Profits. Schedule H for Form 5471 reports the current earnings and profits calculation. Financial statement profit is a starting record, not an automatic substitute for U.S. tax earnings and profits. The required adjustments and currency treatment should be supported by workpapers.
Reviewed October 31, 2026. This is an independent guide. The version and availability information below identifies the IRS documents used for this page.
What Schedule H Form 5471 does and who prepares it
A required Form 5471 filer computes the foreign corporation current earnings and profits under the applicable rules.
For the connected reporting route, see Form 5471. Keep the role of that document separate from the task explained on this page.
| Official form | Form 5471 (Schedule H) |
|---|---|
| IRS title | Current Earnings and Profits |
| Guide period | the applicable reporting period |
| Target version | Dec 2021 |
| Availability | Current IRS catalog PDF |
| Last checked | October 31, 2026 |
Get the Schedule H Form 5471 PDF and check its status
Use the IRS source to confirm the document before completing a real filing. The download link is a reference to the official file; it is not a statement that every copy inside the PDF may be printed and submitted. Follow any instructions about electronic filing, scannable copies, recipient copies or attachments.
Which version of Schedule H Form 5471 should you use?
This form follows a revision or continuing-use format rather than a new title for every calendar year. Check the revision printed on the document and the period requested inside it. A revision date, transaction date and tax year are different pieces of information. The current document should be read with the instructions that apply to the actual transaction or return.
Records to gather for Schedule H Form 5471
- Foreign financial statements.
- U.S. tax adjustment workpapers.
- Currency information.
- Distribution records.
- Prior earnings and profits schedules.
Keep a working reconciliation with these records. It should show the source of each reported item, any correction made before filing and the reason a different amount appears on a connected form. This is especially useful when a statement is corrected or a prior-year balance continues into the current calculation.
How to work through Schedule H Form 5471
- Confirm applicability. Start with the purpose, filer category and version of the form. Complete any eligibility or applicability question before spending time on the numerical calculation.
- Prepare the source workpapers. Gather the records listed below and reconcile their totals. Keep prior-year balances, current-year transactions and estimated payments separate where they serve different purposes.
- Complete dependent calculations first. When a line refers to another form, schedule or worksheet, finish that supporting calculation first. Preserve any classification, limitation and carryforward information.
- Follow the line sequence. Use the actual line labels and arithmetic in the applicable form. A line number from an older version may refer to something different after a revision.
- Reconcile the filing package. Check names, identifying numbers, tax periods, totals and required attachments. Then use the filing method, signature process and deadline that apply to this filer and form.
Form-specific IRS instructions and reporting details
The following points retain the operative wording of the IRS documents linked above. Read each point with its stated conditions and the applicable form version. References to another form or section describe a connected requirement; they do not mean that every reader must file every referenced document.
Report all information in U.S. dollars. Generally, the foreign corporation’s balance sheet is prepared in functional currency and translated to U.S. dollars using U.S. GAAP translation rules. If the foreign corporation uses DASTM, the tax balance sheet on Schedule F should be prepared and translated into U.S. dollars according to Regulations section 1.985-3(d), rather than U.S. GAAP.
Note: Category 1b and 5b filers are not required to file Schedule G for foreign-controlled section 965 SFCs and foreign-controlled CFCs, respectively.
If the foreign corporation is the tax owner of an FDE or FB and you are a Category 4, 5a, or 5c filer of Form 5471, you are required to attach Form 8858 to Form 5471. If you are required to attach Form 8858 to Form 5471, the amounts reported on certain schedules on Form 8858 must be included in determining the amounts reported on the equivalent schedules as follows.
If the foreign corporation is the tax owner of an FDE or FB and you are not a Category 1b, 4, or 5 filer of Form 5471, you must attach the statement described below in lieu of Form 8858. Statement in lieu of Form 8858. This statement must list the name of the FDE or FB, country under whose laws the FDE or FB was organized, and EIN (if any) of the FDE or FB.
Additional reporting conditions
Under section 367(d), a U.S. transferor must report an annual income inclusion attributed to the intangible property transferred to a foreign corporation over the useful life of the property. Check “Yes” if the foreign corporation received any intangible property in a prior year or the current tax year in an exchange under section 351 or section 361 from a U.S. transferor that is required to report a section 367(d) annual income inclusion for the tax year. If “Yes,” complete line 9b.
A foreign corporation may qualify as an expatriated foreign subsidiary under Regulations section 1.7874-12(a)(9) if such foreign corporation is a CFC with respect to which an expatriated entity, as defined in Regulations section 1.7874-12(a)(8), is a U.S. shareholder. Certain transactions involving an expatriated foreign subsidiary and/or its U.S. shareholders may be subject to special rules.
If the answer to Question 10 is “Yes,” attach a statement providing the name and EIN of the domestic corporation or partnership, as defined in Regulations section 1.7874-12(a)(6), and the relationship of the foreign corporation to the domestic corporation or partnership.
Enter in functional currency the amount of the E&P reduction made by the foreign corporation for the current tax year that equals the amount required to be included in the income of the U.S. transferor. See section 367(d). This amount should also be entered on Schedule H (Form 5471), Current Earnings and Profits, as a net subtraction on line 2i.
Calculations and supporting information
Check the “Yes” box on line 14 if you answer “Yes” to any of the questions in the Schedule G, Line 14 table below. If “Yes,” enter the corresponding code(s) from the table in the entry space provided on line 14 of the form. Enter the applicable corresponding code in capital letters. Enter a space between each code. Also attach the statement described in the table below.
During the tax year, did the CFC have any gains or losses that (a) arise out of commodity hedging transactions; (b) are active business gains or losses from the sale of commodities (and substantially all of the corporation’s commodities are property described in section 1221(a)(1), (2), or (8)); or (c) are foreign currency gains or losses (as defined in section 988(b)) attributable to any section 988 transactions?
Section 1—Taxes Paid or Accrued Directly by Foreign Corporation Column (a) Amounts reported on Schedule E may include taxes paid or accrued by the foreign corporation or a pass-through entity (for example, a partnership or disregarded entity) owned by the foreign corporation. If the tax is paid or accrued by the pass-through entity, enter the name of such entity instead of the name of the foreign corporation.
If the tax paid or accrued by the foreign corporation is attributable to a branch or qualified business unit (QBU) of the foreign corporation, enter the name of the branch or QBU.
Exceptions and related reporting
Column (c) Check the box if the foreign income taxes reported in column (j) were paid or accrued by the foreign corporation during prior tax years and were suspended due to the application of the rules of section 909 and that are unsuspended in the current-year because related income is taken into account by the foreign corporation, certain U.S. corporate owners of the foreign corporation, or a member of such U.S. corporate owner’s consolidated group.
Column (i) Enter the three-letter currency code for the local currency in which the tax is payable. Currency codes are available at six-group.com/en/products-services/financialinformation/data-standards.html#scrollTo=currencycodes.
Further form details
Column (j) Enter the tax paid or accrued in the local currency in which tax is payable and not the functional currency of the payor or foreign corporation. See sections 986(a) and 905(c). Section 70352 of Public Law 119-21, 139 Stat. 72 (July 4, 2025) (“the OBBBA”) repeals the 1-month deferral election that was permitted under section 898(c)(2) effective for taxable years of specified foreign corporations beginning after November 30, 2025.
CFCs affected by this provision will have a “first required year” that will end at the same time as the required year defined in section 898(c) (1). A Form 5471 should be filed for the first required year of a CFC affected by this provision.
For the Form 5471 filed for its first required year, a CFC that paid or accrued foreign income taxes that are subject to the allocation rules provided in Notice 2025-72, 2025-51 I.R.B. 840, or any subsequent guidance issued pursuant to section 70352(c)(1)(C) of the OBBBA must have the amount of each foreign income tax allocated to the first required year listed in column (j) and a statement reflecting all information shown in the table below for each foreign income tax subject to allocation must be attached.
Column (m) Enter the tax in functional currency. E&P takes into account foreign income taxes paid or accrued by the foreign corporation. The foreign corporation’s E&P is determined in the foreign corporation’s functional currency. See section 986(b).
Further form details
Use Schedule H-1 to report the CFC’s adjusted net income or loss for corporate alternative minimum tax (CAMT) purposes. Enter the amounts on lines 1 through 2m in the currency in which the item originates (that is, applicable financial statement (AFS) currency, functional currency, or U.S. dollars).
Schedule H for the appropriate category of income (general or passive) and attach a statement that itemizes and explains those adjustments. Report adjustments for foreign taxes related to the PTEP on line 2g. This adjustment is necessary because foreign taxes imposed on PTEP distributions do not reduce current-year E&P. Foreign taxes imposed on PTEP distributions reduce PTEP and are reported on Schedule J, line 6.
Reading the lines and boxes
These selected labels come from the linked target PDF. They are a reading aid, not a replacement for the full line instructions or a completed calculation. Match the label and document version before transferring any amount.
| Line or box | Label in the source form | What to check |
|---|---|---|
| 1 | Current year net income or (loss) per foreign books of account | Use the date or tax period requested by this particular field. A payment date, acquisition date and return year can describe different facts. |
| 2 | Net adjustments made to line 1 to determine current | Check the applicable line instructions and keep the source workpaper with the return records. Transfer only the information that matches the field and reporting period. |
| 3 | Total net additions | Follow the stated arithmetic and line references in sequence. Complete the referenced inputs first and retain the worksheet supporting the result. |
| 4 | Total net subtractions | Follow the stated arithmetic and line references in sequence. Complete the referenced inputs first and retain the worksheet supporting the result. |
| 5a | Current earnings and profits (line 1 plus line 3 minus line 4) | Check the applicable line instructions and keep the source workpaper with the return records. Transfer only the information that matches the field and reporting period. |
A practical example
A foreign corporation prepares local financial statements. The preparer identifies the adjustments required for the U.S. earnings and profits calculation and reconciles the result with the related accumulation and distribution schedules.
This example illustrates the order of the review. It does not assume an unverified deduction, exemption, treaty rate or final tax amount. The applicable form instructions and the actual records determine the result.
Common mistakes to avoid with Schedule H Form 5471
- Do not equate book income with U.S. tax earnings and profits.
- Reconcile the current-year calculation with accumulated balances.
- Keep foreign corporation and shareholder-level calculations distinct.
Questions about Schedule H Form 5471
Does receiving or downloading this form mean I must file it?
A required Form 5471 filer computes the foreign corporation current earnings and profits under the applicable rules. The form purpose and the applicable filing or furnishing conditions determine the action. Downloading a blank PDF does not itself create a filing obligation or establish eligibility for a tax benefit.
Is the revision date always the same as the tax year?
No. Some forms show a tax year, while continuing-use forms show a revision date and ask separately for the reporting period. Check the actual document and instructions. Do not relabel a payment or transaction solely because it was reported in a later calendar year.
What should I do if the underlying information is wrong?
Do not equate book income with U.S. tax earnings and profits. Keep the original record and the correction trail. The issuer correction process, an amended return and an updated certificate can be different procedures. Choose the process that matches the document and the actual error.
Which records should I keep with the completed form?
Retain the source documents, applicable worksheets, submitted version and filing or furnishing confirmations. For this form, the working file should include foreign financial statements, U.S. tax adjustment workpapers, currency information. Keep continuing balances and prior-year support for as long as they remain relevant under the applicable recordkeeping rules.
Related forms and next steps
Use these guides when the connected issue applies to your records. Each page has its own purpose, reporting year and availability status.