Glossary
Form 5472
The information return a 25% foreign-owned US corporation, or a foreign-owned single-member LLC, files to report transactions with related foreign parties. $25,000 penalty per form per year if missed.
Since 2017, a single-member LLC owned by a non-US person is treated as a corporation for this one purpose and must file Form 5472 attached to a pro forma Form 1120, every year, even with no income. Reportable transactions include capital contributions, loans, and any money moving between the owner and the LLC. Paying the formation fee from the owner's card is enough.
The form cannot be e-filed for a disregarded LLC. It goes by fax or mail to a dedicated IRS address, and the fax transmission report is the only proof of filing. Due April 15, or October 15 with a Form 7004 extension.
The penalty is $25,000 per form per year, assessed automatically, plus $25,000 for each 30-day period the failure continues after 90 days from an IRS notice. Reasonable-cause relief is commonly granted to first-time filers who file voluntarily with a written explanation.
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