Who must file Form 5472?

Any US corporation or LLC with 25%+ foreign ownership AND reportable transactions with related parties (foreign owner or its related entities).

What's the penalty for not filing Form 5472?

$25,000 per missed Form 5472 — initial penalty. Plus $25,000 per month if continued non-compliance after IRS notice. The penalty is mechanical — IRS doesn't waive easily.

Can a Delaware LLC owe Form 5472?

Yes. Single-member LLC disregarded for US tax, owned by foreign person, must file pro-forma Form 1120 + Form 5472. Many founders miss this and get penalised.

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How-to guide

How to File Form 5472

Step-by-step guide to filing IRS Form 5472 — mandatory for foreign-owned US corporations and LLCs with foreign owners (≥25%). $25,000 penalty for non-compliance.

Steps

The process.

How to file form 5472.

Step 01 / 06

Determine if Form 5472 applies

Required if your US C-Corp or LLC has a 25%+ foreign owner AND had reportable transactions during the year (sales, rent, royalty, interest, loans).

Step 02 / 06

Gather information

Need: US entity details, foreign owner details (name, address, country, tax ID), all related-party transactions during year.

Step 03 / 06

Get Form 5472 + Form 1120

Form 5472 attaches to Form 1120 (corporate income tax return). LLCs disregarded as foreign-owned must file pro-forma Form 1120 + 5472.

Step 04 / 06

List all reportable transactions

Sales, rent, royalty, interest, loans, services, capital contributions between US entity and foreign owner. Each category gets a separate Part IV section.

Step 05 / 06

File with IRS

Form 5472 with Form 1120: due 15 April (calendar-year filers) or 15th of 4th month after FY-end. Extension via Form 7004 (6 months).

Step 06 / 06

Maintain documentation

Keep transaction records (invoices, agreements, payment proofs) for 4 years. IRS can audit and demand documentation.

Get help

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