Hi and welcome to Just Answer!If your father owned a corporation - means he owned shares of the corporation - and that what you inherited - shares of the corporation.So you need to determine the fair market value of shares at the time your father passed away. That value is included into your father's estate - and that value would be your basis in these shares. Since the time you took over the corporation - any income you received out of corporate profit would be your dividend income - and should be reported on your individual tax return.A foreign corporation is a separate legal and taxing entity. As the owner of a controlled foreign corporation (CFC) - you should complete all four pages of Form 5471 and separate Schedules J and M. - www.irs.gov/pub/irs-pdf/f5471.pdf That form is attached to your tax return.
In additional - FBAR form is needed if the total value of all foreign accounts is above $10,000. FBAR form is sent separately from your tax return.Starting 2011 - a form 8939 is needed if the total value of all foreign accounts is above $50,000. The form 8939 is attached to your tax return.