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If you are working out whether the requirement applies to you at all, read who needs to file. For the mechanics of preparing and submitting a filing, see how to file Form 5472. For background on what the form is, start with the pillar guide.
Frequently asked questions
An IRS information return reporting transactions between a US reporting entity and its foreign related parties. It computes no tax.
Generally a US disregarded entity wholly owned by a foreign person that had at least one reportable transaction in the tax year, and certain 25% foreign-owned US corporations under their own rules.
Where it is disregarded for federal tax purposes, owned by a foreign person, and had reportable transactions, yes. That combination describes most nonresident-owned LLCs that trade or move money.
Income is not the test. If reportable transactions occurred — including contributions or formation costs paid by the owner — a filing can be required despite zero revenue.
Amounts paid or received between the entity and a related party, and for a disregarded entity also amounts connected with its formation, funding, distributions and dissolution.
Contributions to a foreign-owned disregarded entity fall within the categories the instructions treat as reportable. The treatment of a specific transfer depends on the facts.
Distributions from the entity to its foreign owner are likewise within the reportable categories for a disregarded entity.
A payment made by the owner on behalf of the entity is a related-party amount and is commonly reportable. It is one of the most frequently missed items.
It follows the due date of the pro forma Form 1120 it is attached to — generally 15 April following a calendar tax year, moving to the next business day when that date falls on a weekend or legal holiday.
An extension of time to file the pro forma Form 1120, requested by the original due date, also extends the attached information return. An extension does not remove the requirement.
The IRS form used to request an automatic extension of time to file certain business returns, including the return the Form 5472 is attached to.
Failure to file when required, or filing a substantially incomplete form, can result in a $25,000 penalty per form per tax year, subject to the applicable rules and circumstances, with additional amounts possible if failure continues after IRS notice.
It is not assessed in every case, and reasonable-cause relief may be available depending on the facts. It should not be assumed either way.
A foreign-owned disregarded entity submitting a pro forma Form 1120 with Form 5472 attached does not use the ordinary individual e-file route. Our workflow submits the package to the IRS via online fax.
The completed Form 5472 and pro forma Form 1120 are submitted to the IRS via online fax, and the transmission confirmation is stored with the filing in your dashboard.
The information return needs a cover return. For a foreign-owned disregarded entity, a pro forma Form 1120 is completed only to the extent required and carries the Form 5472.
The client reviews the prepared filing and signs the pro forma Form 1120 before submission. It is the document that contains the applicable signature and paid preparer information.
The applicable paid preparer information appears on the pro forma Form 1120, not on the information return. The two documents are conceptually separate.
Yes. The reporting entity is identified by its EIN, so the filing generally cannot be completed without one.
No. It is an information return. Whether US income tax arises is a separate question depending on US-source income and whether there is a US trade or business.
Yes. Each tax year is prepared as its own filing with its own forms. Unfiled prior years are generally better handled deliberately than left open.
Yes. If your Form 5472 filing is late, we review the circumstances and, when appropriate, prepare a reasonable cause statement at no additional charge. This also applies to eligible prior tax years.
No. A reasonable cause statement does not guarantee penalty relief. The IRS makes the final determination based on the facts and circumstances of the case.
Yes. For eligible late prior-year Form 5472 filings, preparation of a reasonable cause statement is included at no additional charge when appropriate.
You complete an eligibility check and a questionnaire and upload supporting documents. A US tax professional prepares and reviews Form 5472 and the pro forma Form 1120 for your tax year.
There is no upfront payment. We prepare your filing first. Once it is ready, payment is required before you review the completed documents, sign the pro forma Form 1120 and authorise submission to the IRS.
Standard is $199 and Expert is $299 per filing year. Pricing is shown on the homepage before you start.
The prepared Form 5472 and pro forma Form 1120 are unlocked in your dashboard for review. You confirm the Form 5472 information, sign the pro forma Form 1120, and we submit the package.
The completed Form 5472, the pro forma Form 1120, and the confirmation of the submission sent to the IRS.
No. We focus on this federal filing. State obligations such as annual reports and registered agent requirements are set by your formation state.
