Question 1

What is Form 5472?

Accepted Answer

Form 5472 is an IRS information return required for 25% foreign-owned U.S. corporations and foreign corporations engaged in a U.S. trade or business. For foreign-owned single-member LLCs, it reports transactions between the LLC and its foreign owner.

Question 2

Who needs to file Form 5472?

Accepted Answer

Any U.S. LLC that is treated as a disregarded entity for tax purposes and is 25% or more foreign-owned must file Form 5472. This includes single-member LLCs owned by foreign individuals or foreign corporations.

Question 3

When is Form 5472 due?

Accepted Answer

Form 5472 is due on April 15th following the end of the tax year (or the next business day if April 15th falls on a weekend or holiday). Extensions are available by filing Form 7004.

Question 4

What is a Pro Forma Form 1120?

Accepted Answer

A Pro Forma Form 1120 is a simplified version of the corporate tax return that serves as a cover sheet for Form 5472. It contains only basic identifying information and is required because the IRS system needs Form 1120 to process Form 5472.

Question 5

Do I need to file if my LLC had no activity?

Accepted Answer

Yes. Foreign-owned single-member LLCs must file Form 5472 annually regardless of business activity. Even if you had zero revenue, expenses, or transactions, you are still required to file.

Question 6

What transactions must be reported?

Accepted Answer

All transactions between the LLC and its foreign owner or other foreign related parties must be reported. This includes capital contributions, distributions, loans, payments for services, rent, royalties, and any other transfers of money or property.

Question 7

Can I e-file Form 5472?

Accepted Answer

Currently, Form 5472 cannot be e-filed with the IRS. It must be paper-filed by mailing the completed forms to the IRS service center. Our platform provides print-ready PDFs and mailing instructions.

Question 8

What records do I need to keep?

Accepted Answer

You should maintain records of all transactions with foreign related parties, including bank statements, wire transfers, contracts, and invoices. The IRS requires these records be kept for at least 5 years from the date of filing.

Question 9

What is the penalty for not filing Form 5472?

Accepted Answer

The base penalty is $25,000 per Form 5472. This applies for failure to file, late filing, or filing an incomplete or inaccurate form. Additional $25,000 penalties can apply for continued non-compliance after IRS notification.

Question 10

Is there a statute of limitations?

Accepted Answer

No. Unlike most tax returns, there is no statute of limitations for Form 5472 until a proper return is filed. This means the IRS can assess penalties for unfiled returns indefinitely.

Question 11

Can I file late Form 5472s for prior years?

Accepted Answer

Yes, you can and should file late Form 5472s for any prior years where you were required to file but didn't. While penalties may apply, filing late is better than not filing at all.

Question 12

What if I made an error on a filed Form 5472?

Accepted Answer

You should file an amended Form 5472 to correct any errors. Mark the form as 'Amended' and include a statement explaining the corrections. Filing an accurate amended return helps avoid or reduce penalties.

Question 13

How long does it take to complete the filing?

Accepted Answer

Most users complete the filing process in 15-30 minutes. The time depends on the complexity of your situation and whether you have all necessary information readily available.

Question 14

What information do I need to get started?

Accepted Answer

You'll need your LLC's EIN, legal name, address, formation date, your personal information (or corporate owner details), and amounts for any transactions with the LLC during the tax year.

Question 15

Do you file the forms with the IRS for me?

Accepted Answer

We generate the completed forms and provide detailed mailing instructions. You print, sign, and mail the forms to the IRS. We also offer optional e-file services where available.

Question 16

What if I need help during the process?

Accepted Answer

Our platform includes guidance and help text for every field. For additional support, you can contact our customer service team via email or through the contact form.

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