Form 5472
If your business was organised in the U.S. and has a foreign owner, you are required to file 5472.
Deadline for this form has passed. Contact us if you've missed the deadline.
What is IRS form 5472?
You are required to file 5472, if:
- Your U.S.-based company has a non-U.S. person (individuals or businesses) owning at least 25% of its stock.
- The company, though foreign, is engaged in U.S. trade or business activities.
- Your U.S. LLC is owned by a foreign entity and is treated as a disregarded entity.
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Mandatory for
U.S. corporations possessing 25% or greater foreign ownership and foreign corporations engaged in U.S. business or trade must submit IRS Form 5472.
Penalties
A $25,000 penalty will be imposed on any reporting corporation that neglects to submit Form 5472.
Due date
Form 5472 is due at the same time as your corporation's income tax return (Form 1120 - 16 October 2023).
FAQs
Required if US corporation did any reportable transactions at any time during tax year AND has any 25%+ foreign shareholder. See here https://www.irs.gov/instructions/i5472
Form 5471 is filed by US persons who own a foreign corporation. Form 5472 is filed by US corporations that are foreign-owned, reporting transactions with their foreign related parties.
One looks outward at a foreign subsidiary, the other looks inward at foreign ownership. Many India-US structures file both.
For reportable transactions with foreign related parties: sales, services, loans, rent, royalties, and capital contributions.
For a foreign-owned single-member LLC the definition is broader and includes money moving in from the owner. Our Form 5472 page covers what counts.
Limited ones, mainly where there were no reportable transactions during the year, or where another filer reports the same transactions.
A foreign-owned single-member LLC generally still files even with minimal activity, because capital contributions themselves are reportable. Our Form 5472 page covers the exceptions.
Yes, as an attachment to Form 1120 through IRS e-file.
The exception is a foreign-owned single-member LLC, which files Form 5472 with a pro forma 1120 even though it has no other return, and that combination has historically gone by fax or mail.
Still have questions?
Reach out to our support team if you have any additional questions regarding filing.
