Form 5472 Filing

Overview

Form 5472 is an IRS information return, not an income tax return. It is required under the Internal Revenue Code (US tax law), Sections 6038A and 6038C. Filing it does not mean you owe US taxes. The IRS uses it to track transactions between a US business and its foreign owners or related parties.

For most foreign-owned single-member LLCs, the form simply discloses what money moved between you and your company during the year.

A single-member LLC is a disregarded entity (an LLC structure where the business itself does not pay US income tax). The IRS looks through it directly to the owner, so there is no income tax return to attach Form 5472 to. Instead, you file Form 5472 together with a Pro Forma Form 1120 (a simplified cover form required alongside Form 5472). Think of it as a cover sheet. It does not create any tax liability.

This filing obligation applies regardless of whether the LLC had any transactions, income, or US bank activity during the year. Even dormant LLCs with zero activity must file.

Who Must File

You must file Form 5472 if you meet all three conditions:

• You own a US LLC (formed in any US state)
• You are not a US citizen or US green card holder
• Your LLC is a single-member LLC (one owner)

Since 2017, the IRS requires every foreign-owned US single-member LLC to file Form 5472 every year. The IRS classifies your LLC as a foreign-owned US disregarded entity under Section 6038A (the IRS rule that requires this filing). Your LLC must file regardless of income or activity.

You are considered a foreign owner if you are:

A non-US citizen living outside the United States
No US citizenship, no green card, and you do not meet the IRS substantial presence test. This test uses a weighted formula. You must be present in the US for at least 31 days during the current year. Then the IRS adds up: (days this year) + (1/3 × days last year) + (1/6 × days two years ago). If the total is 183 or more, you meet the test.

A citizen or resident of a US territory who is not a US citizen or resident alien
Covered under the foreign owner definition in the Treasury Regulations.

A foreign company, partnership, trust, or estate
If the sole member of the LLC is a foreign legal entity rather than a foreign individual, the same filing obligation applies.

This includes LLC owners who:

• Just formed their LLC: You set up a US LLC to sell online, freelance, or operate a SaaS business. You may not have been aware of the Form 5472 requirement.
• Have a zero-activity LLC: Your LLC did not make or receive a single payment this year. The filing obligation still applies. There is no zero-income exception.
• Are returning filers: You filed Form 5472 last year (yourself or with another provider) and need a service for this year's filing.

We can handle your filing

What Gets Reported

Reportable Transactions

Form 5472 requires disclosure of reportable transactions: any exchange of money, property, or services between the LLC and a related party. For a single-member LLC, the most common related party is the foreign owner themselves.

Reportable transactions include:

• Capital contributions: money or property transferred from the foreign owner into the LLC
• Distributions: money or property paid out of the LLC to the foreign owner
• Sales of goods, inventory, or property between the LLC and a related party
• Loans made by or to the LLC involving a related party
• Payments for services rendered between the LLC and a related party
• Costs related to the formation, dissolution, or acquisition of the entity
• Rents, royalties, and transactions involving intangible property rights

You must file a separate Form 5472 for each related party your LLC had reportable transactions with. If your LLC had transactions with multiple related parties (where you or a related party owns 25% or more), additional Form 5472s are attached to the same filing. This is still considered one filing per LLC. If you own multiple LLCs, each LLC requires its own separate filing.

The IRS treats a substantially incomplete Form 5472 the same as not filing at all, with the same penalty.

If your LLC had no transactions with you or any related party, you can confirm zero reportable transactions on the intake form.

Get Your Filing Started

Do I Owe US Tax?

ETBUS: Why Most Foreign Owners Don't Owe US Income Tax

Do you owe US income tax as a non-resident LLC owner? For most remote founders, the answer is no. But it helps to understand why.

As a non-US resident, you are subject to US federal income tax on business income only if you are Engaged in Trade or Business in the United States (ETBUS). The general framework holds that a non-resident is ETBUS only when both of the following are true:

1. You have at least one dependent agent in the US
A dependent agent is an employee or contractor who works almost exclusively for you. This does not include independent platforms like Amazon. The agent must do something substantial to advance your US business, not merely perform administrative tasks.

2. That activity is considerable, continuous, and regular
Occasional or incidental US contact does not typically constitute a US trade or business. Sporadic interaction with the US generally does not meet this standard.

If you run your business entirely outside the US, you are generally not ETBUS. This applies to freelancers, remote developers, e-commerce sellers, and service providers with no US employees and no permanent US office. Your business income is not subject to US federal income tax. This is true even if your clients are American or your payments land in a US bank account.

Your country may have a tax treaty with the United States. If so, you may be able to rely on the Permanent Establishment concept in that treaty. Under most treaties, you only owe US tax if you operate through a fixed office or branch in the US. Consult a qualified tax professional if this applies to you.

What's Included in the Service

• Form 5472 preparation: All required fields completed to IRS specifications, with correct transaction categories and accurate entity information
• Pro Forma Form 1120 preparation: The cover sheet required to accompany Form 5472 for disregarded entities
• IRS submission: We submit the completed filing to the IRS on your behalf by the April 15 deadline
• Filing confirmation: You receive confirmation once the filing is submitted, for your compliance records

What We Need From You

To prepare and file Form 5472, we need:

• Your LLC's legal name (as registered with the IRS)
• Your Employer Identification Number (EIN)
• Your full name and country of residence as the LLC owner
• A summary of reportable transactions during the tax year (payments made, payments received, loans, capital contributions, or confirmation of zero transactions)
• Confirmation of the tax year being filed

Most clients can provide this information in under 15 minutes using our secure intake form.

If you do not yet have an EIN, you will need one before Form 5472 can be filed. See our EIN Acquisition service.

How It Works

The filing process follows four steps:

• 1. Submit your details: You receive a short, secure intake form asking for your LLC name, EIN, owner details, and a transaction summary for the tax year. Most clients complete it in under 15 minutes.
• 2. We prepare your filing: Our team prepares Form 5472 and the Pro Forma Form 1120 to IRS specifications. We review all fields for accuracy before sending the forms to you.
• 3. You review and confirm: We send you the completed forms for review. Confirm the details are correct and give your approval to proceed. If any corrections are needed, we revise before filing.
• 4. Filed, confirmed, done: We submit your Form 5472 + Pro Forma 1120 to the IRS and send you the filing confirmation. You are compliant for the tax year.

Deadlines & Timeline

Form 5472 + Pro Forma 1120 is due to the IRS by April 15 each year for the preceding tax year. This deadline applies regardless of your LLC's income or activity level.

If your LLC uses a fiscal year instead of a calendar year, the deadline is the 15th day of the fourth month after your fiscal year ends.

• Standard turnaround: 3–5 business days from receipt of your completed intake
• Expedited turnaround: 24 hours (same-day processing)

We recommend submitting your intake information as early as possible. This is especially important if your deadline is approaching. Standard filing is available up to 3 business days before April 15. Expedited filing can be requested up to the day before the deadline.

How to File

Filing Method for Foreign-Owned Disregarded Entities

Foreign-owned US disregarded entities cannot file Form 5472 electronically. The IRS requires submission by paper mail or fax to a dedicated address in Ogden, Utah.

Mailing address:
Internal Revenue Service
1973 Rulon White Blvd, M/S 6112
Attn: PIN Unit
Ogden, UT 84201

Fax: See the current IRS Instructions for Form 5472 (December 2024) for the dedicated fax number for foreign-owned disregarded entities.

Write "Foreign-Owned U.S. DE" across the top of both the Pro Forma Form 1120 and Form 7004 (if applicable). You must include this notation.

Your LLC must have an Employer Identification Number (EIN) before filing. This applies even if the LLC has no employees. If your LLC does not yet have one, obtain it first via Form SS-4 or see our EIN Acquisition service.

Retain copies of all filed forms and supporting records. Failure to maintain required records carries its own $25,000 penalty (see Penalties section below).

We handle all of this. See pricing

Penalties for Non-Filing

The Cost of Non-Compliance

The IRS charges a $25,000 penalty for each missing or late Form 5472. This is a flat amount per form, per year. It applies regardless of how much revenue your LLC generated.

Key penalty facts:

• $25,000 per Form 5472, per tax year. No zero-income exception
• Multi-year exposure: Each unfiled year carries its own separate $25,000 penalty. Three unfiled years = $75,000 potential exposure
• No statute of limitations: The IRS can assess penalties for unfiled years at any time. The obligation does not go away

Here is how it adds up: the IRS assesses a penalty, sends a notice, and you still do not file within 90 days. The continuation penalty starts. Three months after notice: $75,000. Six months: $100,000. There is no ceiling.

Already Behind? Penalty Abatement

Asking the IRS to Waive or Reduce a Penalty

If you received a penalty notice for a missed or incomplete Form 5472 filing, you may still have options. The IRS may reduce or remove penalties in certain circumstances. But abatement is never guaranteed. Every case is evaluated on its own facts.

Reasonable Cause Relief

The IRS may grant penalty relief when you can show you tried to comply but could not, due to circumstances beyond your control. The IRS may consider reasonable cause when:

• You acted responsibly both before and after the failure
• You requested an extension of time to file when possible
• You corrected the failure as quickly as possible once identified
• This was your first time filing this particular form and you have a good prior compliance history
• The failure resulted from events genuinely beyond your control

Circumstances the IRS may accept

• Fire, natural disaster, or civil disturbance that prevented timely filing
• Death, serious illness, or unavoidable absence of the taxpayer or an immediate family member (documentation required)
• Inability to access records necessary to complete the return
• Actions by the IRS that caused or contributed to the failure
• Actions of an agent or another person, with supporting evidence

What the IRS generally does not accept

• Not knowing the filing requirement existed: you are responsible for understanding your obligations or seeking advice
• Reliance on a tax professional who failed to file: you remain responsible for ensuring timely filing
• Simple oversight or mistake, unless accompanied by facts showing a genuine attempt to comply
• Lack of funds, by itself

How to request abatement

1. Get current first. The IRS recommends all outstanding filings be submitted before abatement is considered for any one year. Bring everything current before pursuing relief.
2. Request relief by phone or in writing. Call the number on your penalty notice, or submit a written request using Form 843 (Claim for Refund and Request for Abatement).
3. Document everything thoroughly. What happened, when, and how it prevented you from filing. Attach supporting records: medical documentation, correspondence, receipts. The more specific, the stronger your case.
4. If denied, you can appeal. You have the right to appeal to the IRS Independent Office of Appeals. The Taxpayer Advocate Service is an independent body within the IRS. It can also help if you cannot resolve issues through standard channels.