Form 5472 is used by certain foreign entities that have business activities in the U.S. and by certain taxpayers who have business relations with these entities. Foreign entities that must file Form 5472 include:
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- Foreign corporations that are residents in the U.S.
- Foreign corporations that are residents in the U.S.
- Foreign corporations that have a 25% or more ownership interest in a U.S. company
Form 5472 is used to inform the Internal Revenue Service (IRS) about commercial transactions between a foreign entity and its U.S. related parties and to comply with the taxpayer’s tax obligations in relation to these transactions. Foreign entities and taxpayers required to file Form 5472 must do so along with their annual tax return.
Single Member LLC
Penalties: The penalty for not filing Form 5472 is $25,000 USD per form.
Difference with Form 5471
What to do if Form 5472 has not been filed?
The IRS has various voluntary compliance programs to address non-compliance Among the main programs are the Streamlined Offshore Procedures, Delinquent International Information Return Submission Procedures, among others
