Real Client Tax Scenarios
The LLC Had No U.S. Bank Account. Form 5472 Was Still Required
A foreign owner thought that without a U.S. bank account, his LLC could not have any transactions to report. The formation costs he paid were enough to require Form 5472.
Client confidentiality
These scenarios are based on matters our firm has handled. Names, locations, amounts, dates and other identifying details have been changed or omitted, and some facts may be combined, to protect client confidentiality. Results depend on each taxpayer's specific facts; a past result does not guarantee a similar outcome.
The client's LLC never opened a bank account. It had an EIN, a registered agent and a certificate of formation — and nothing else.
He was surprised to learn that it still had a Form 5472 filing requirement.
The client's situation
The client lives in Africa and formed a U.S. LLC with plans to sell services to American customers. Several U.S. banks declined to open an account remotely, and the plan was put on hold. During that first year, he paid the formation service, the state filing fee and the registered agent from his personal account abroad.
What went wrong
He assumed the IRS only cared about money moving through U.S. accounts. Since the company had no account, he concluded there was nothing to report and did not file for the first year.
The tax or reporting requirement
Form 5472 reporting does not depend on a U.S. bank account. For a foreign-owned U.S. single-member LLC, payments made by the owner for the company's formation and maintenance are reportable transactions. That includes formation costs, state filing fees and registered agent fees. If those transactions occurred, a Form 5472 with a pro forma Form 1120 is generally required for the year.
The potential IRS exposure
The first year was already past due when he contacted us. The potential penalty for a missed Form 5472 is $25,000 per form, per year, and the second year's deadline was approaching.
How Chirino USA analyzed the situation
We gathered the invoices and the owner's foreign bank statements showing each payment. We confirmed that no other related-party transactions had taken place and that the company was still a single-member disregarded entity. Because the IRS had not made contact, the voluntary late-filing route was available.
How we addressed the issue
We filed the late pro forma Form 1120 and Form 5472 for the first year with a reasonable cause statement, and filed the second year on time with an extension. We also gave him a short checklist of what to keep once the company starts operating: invoices, transfer confirmations and a running record of anything he pays personally.
The result
Both years are on file, one with an explanation of the late filing. The company is now positioned to open its bank account and begin operations with its U.S. reporting already in order.
What other taxpayers in similar situations should know
- No bank account does not mean no Form 5472.
- Formation costs and registered agent fees paid by the owner are reportable.
- The EIN is what the IRS associates with the filing, not a bank account.
- If one year was missed, address it before the next deadline arrives.
How Chirino USA can help
If you own a U.S. company from outside the United States and are concerned about a missing or incorrect Form 5472, Chirino USA Accountants & Advisors can review your filings, identify potential exposure, and help determine the appropriate path forward. You can email us or message us on WhatsApp, in English or Spanish.
Concerned about a similar situation?
Send us a short description of your situation by email or WhatsApp, in English or Spanish. We will tell you what we need to review it.
roger@ChirinoUSA.com · WhatsApp +1 (786) 271-3806
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Key takeaways
- A foreign-owned LLC without a U.S. bank account can still be required to file Form 5472.
- Owner-paid formation and maintenance costs are reportable transactions.
- Late years should be filed voluntarily, with an explanation, before the IRS makes contact.
Frequently asked questions
Do I need to file Form 5472 if my LLC has no U.S. bank account?
Possibly yes. If you, as the foreign owner, paid formation costs, state fees or registered agent fees for the LLC, those are generally reportable transactions, with or without a bank account.
What ID number does the LLC use on Form 5472?
The LLC's own EIN. A foreign-owned single-member LLC needs an EIN to file the pro forma Form 1120 and Form 5472.
Sources and official references
Educational information only
This article provides general educational information and should not be considered tax, legal, accounting, or investment advice. Tax consequences depend on each taxpayer's specific circumstances.
Written by Roger I. Chirino
U.S. international tax team
Supported by licensed CPAs, IRS Enrolled Agents (EAs), and experienced U.S. tax professionals focused on cross-border compliance and planning.
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