Form 5472 Filing
Form 5472 Filing for Foreign-Owned U.S. LLCs and Corporations
If a foreign person owns a U.S. LLC or at least 25% of a U.S. corporation, the IRS expects Form 5472 every year there are transactions with the owner or other related parties. We prepare the filing correctly, catch up missed years, and respond to $25,000 penalty notices — for owners anywhere in the world.
Who must file Form 5472
- U.S. single-member LLCs wholly owned by a foreign individual or company (filed with a pro forma Form 1120)
- U.S. corporations that are at least 25% foreign-owned (attached to Form 1120)
- Foreign corporations engaged in a U.S. trade or business (with Form 1120-F)
- Generally one Form 5472 for each related party with reportable transactions
The pro forma Form 1120 + Form 5472 package
A foreign-owned single-member LLC is disregarded for income tax, yet must transmit Form 5472 on a pro forma Form 1120 that carries identifying information only. Getting the notation, owner details and transaction amounts right is what keeps the filing complete.
Reportable transactions we document
- Capital contributions and distributions
- Loans to or from the owner and interest
- Formation, dissolution and acquisition costs paid by the owner
- Services, rents, royalties and sales with related parties
- Expenses the owner pays on the LLC's behalf
Deadlines, extensions and EIN
The filing is generally due April 15 for calendar-year entities and can be extended six months with a timely Form 7004. The entity must have its own EIN; owners without an SSN or ITIN apply with Form SS-4, which we handle.
The $25,000 penalty
Failing to file a complete, timely Form 5472 carries a $25,000 penalty per form, per year, with additional penalties if the failure continues after an IRS notice. Penalties often arrive automatically when a late return is processed.
Late or missed filings and reasonable cause
If your LLC never filed, we reconstruct the transactions from bank and formation records, prepare every missing year, and draft a reasonable-cause statement where the facts support one. If you already received a penalty notice, we review it and respond before the deadline. Outcomes depend on the facts and cannot be guaranteed.
What we need from you
- Formation documents and EIN letter
- Bank statements for the year
- Owner's passport, address and foreign tax ID
- Any prior filings or IRS letters
Frequently asked questions
Do I need to file Form 5472 if my LLC had no income?
Usually yes. The obligation depends on reportable transactions, not income. Funding the bank account or paying formation fees is typically enough.
Is the treaty with my country a reason not to file?
No. Income tax treaties can reduce tax, but they do not remove Form 5472 reporting.
How much is the Form 5472 penalty?
$25,000 per form, per year, plus continuation penalties if the failure continues after an IRS notice.
Can you file prior years I missed?
Yes. We prepare each missing year with the pro forma Form 1120 and, where appropriate, a reasonable-cause statement.
I received an IRS penalty letter. What now?
Do not ignore the deadline on the letter. Send it to us; we review whether the penalty is correct and prepare an abatement request or appeal.
Do I need a U.S. address or visit?
No. We work remotely with owners around the world, in English and Spanish.
Do I also need a personal U.S. return?
Only in some cases, such as when the LLC has income effectively connected with a U.S. business. We review this as part of the engagement.
Are you a Form 5472 CPA?
Chirino USA Accountants & Advisors prepares Form 5472 and related international filings for foreign-owned businesses every year; we'll explain who on our team handles your case in the consultation.
Get Help with Form 5472
Form 5472 and pro forma Form 1120 for foreign-owned U.S. LLCs and corporations, including late filings and penalty relief.