What happens if Form 5472 is filed late?

Establish which years were actually missed

Review the LLC classification, foreign ownership and related-party transactions separately for each year. A missing form for one year does not prove that every year required a filing, but multiple missed years can create separate exposure. Check whether a valid extension was filed on time and whether an earlier submission included both the pro forma Form 1120 and the required Forms 5472. Retain evidence of what was sent.

Understand the initial and continuing penalties

The initial penalty is $25,000 for each required form for each year of failure. If the failure continues more than 90 days after IRS notification, additional $25,000 penalties can apply for each 30-day period, or fraction of a period, during which it continues after that 90-day period. These continuation penalties have no statutory maximum. Do not assume a small transaction or lack of taxable income limits the penalty to a percentage of revenue.

Correct the filing and evaluate relief

Reconstruct the transactions and prepare complete filings rather than sending blank forms simply to get something on record. A reasonable-cause request requires a factual explanation and supporting evidence; acceptance is not guaranteed. If an IRS notice has arrived, follow its response instructions and deadline while addressing the missing filing. Do not assume that filing the overdue return also answers the notice or automatically stops all collection activity.

The special filing rule for disregarded LLCs

For a wholly foreign-owned domestic disregarded LLC, a required Form 5472 is attached to a pro forma Form 1120. This package cannot be e-filed: mail or fax it under the special procedures in the Form 5472 instructions, using the current designated destination. Keep a complete signed copy, required attachments and delivery or fax confirmation. A tax payment, an EIN application or the owner’s personal return does not substitute for this information filing.

Common mistakes

• Waiting for an IRS notice before reviewing missing years.
• Assuming a late submission guarantees penalty relief.

Filing requirements

• Confirm classification, EIN, tax year and related parties before preparing the forms.
• Check the applicable deadline and any extension; retain the full package and proof of submission.

Potential penalties

• Failure to comply carries a $25,000 penalty per form per year; a substantially incomplete filing can also trigger this penalty.
• Continuation penalties can accrue after IRS notice if the failure persists; relief is fact-dependent and never guaranteed.

Related IRS forms

• Form 5472
• Form 1120
• Form 7004

What to consider next

• Gather owner-transaction records, prior returns and filing confirmations.
• Identify affected years and any IRS notice response deadlines.
• Chirino USA can review the filing, needed corrections and any fact-supported relief options.