Form 5472
If your business was organised in the U.S. and has a foreign owner, you are required to file 5472.
Deadline for this form has passed. Contact us if you've missed the deadline.
What is IRS form 5472?
You are required to file 5472, if:
- Your U.S.-based company has a non-U.S. person (individuals or businesses) owning at least 25% of its stock.
- The company, though foreign, is engaged in U.S. trade or business activities.
- Your U.S. LLC is owned by a foreign entity and is treated as a disregarded entity.
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Mandatory for
U.S. corporations possessing 25% or greater foreign ownership and foreign corporations engaged in U.S. business or trade must submit IRS Form 5472.
Penalties
A $25,000 penalty will be imposed on any reporting corporation that neglects to submit Form 5472.
Due date
Form 5472 is due at the same time as your corporation's income tax return (Form 1120 - 16 October 2023).
FAQs
Required if US corporation did any reportable transactions at any time during tax year AND has any 25%+ foreign shareholder. See here https://www.irs.gov/instructions/i5472
Form 5471 is filed by U.S. taxpayers, while Form 5472 is for foreign corporations in U.S. business or U.S. corporations with 25% foreign ownership.
Form 5472 is needed for specific reportable transactions, not all foreign-related ones. Consult IRS guidelines or Inkle to determine what to report.
Some specific exceptions and exemptions exist for certain types of transactions and entities. For example, certain de minimis transactions may be exempt from reporting.
Yes, IRS permits electronic filing using the Electronic Tax Administration system, offering convenience and extended deadlines.
Still have questions?
Reach out to our support team if you have any additional questions regarding filing.
