Hi all, 

I have a client who has been filing as a 'head of household', as his wife is a foreigner. He has 3.5% of ownership of a company in Korea and his wife has 22%, and her parents have 30%. 

I understand if they file their tax return as married filing jointly, they should file form 5471 as total ownership is more than 50%. 

Does he still need to include his parents-in-law's ownership in the calculation?

Thank you!