Form 5472 is an information return the IRS requires from certain corporations and disregarded entities that have at least 25% foreign ownership, or from foreign corporations engaged in a US trade or business. For most readers of this guide, the relevant case is a US single-member LLC wholly owned by a non-US person — a structure the IRS treats as a "foreign-owned disregarded entity" for this purpose.
Why the form exists
Form 5472 gives the IRS visibility into transactions between a US entity and its foreign owner or other related parties — capital contributions, loans, distributions, and expenses paid on the entity's behalf. Because a wholly foreign-owned disregarded entity has no US tax return of its own, this form is effectively the IRS's only window into that activity.
Who has to file
Any US LLC that is disregarded for tax purposes and at least 25% foreign-owned, with a reportable transaction during the year. This applies whether or not the LLC had any income, and whether or not it has a US bank account.
Not sure if this applies to you? Our questionnaire walks through your situation and flags what needs to be filed — before you pay for anything.
Check your eligibility →How it's filed
Form 5472 is attached to a pro forma Form 1120, with the entity's information filled in and "Foreign-owned U.S. DE" written at the top. It cannot be e-filed by most disregarded entities and is generally submitted by fax or mail.
What happens if you don't file
The penalty starts at $25,000 per form, per year, with additional $25,000 increments for continued failure after an IRS notice. There is no reduced penalty for a small or first-time miss.
