What is Form 5472?

Explained

A single-member LLC wholly owned by a foreign person (a foreign-owned U.S. disregarded entity) is treated as a corporation for Form 5472 purposes. Its reportable transactions include amounts connected with forming the company, money the owner puts in and money taken out, so a filing can be due even without income.

The form is attached to a pro forma Form 1120, of which only a limited part of page 1 is completed, with “Foreign-owned U.S. DE” written across the top. A foreign-owned disregarded entity cannot file it electronically; it is faxed or mailed to the dedicated IRS number or address. It is due on the Form 1120 due date, and an extension can be requested on Form 7004.

Good to know

• A separate Form 5472 is needed for each related party.
• The company must keep permanent books and records of its transactions; failing to keep them can also be penalized.
• Failing to file, filing late or filing a substantially incomplete form can lead to heavy penalties; a substantially incomplete form counts as not filed.
• The LLC needs an EIN to file.