Guide

Form 5472 Instructions Guide

Line-by-line instructions for IRS Form 5472. 6 parts covering reporting corporation info, foreign owner info, and reportable transactions.

Form 5472 has 6 parts covering the reporting corporation, 25% foreign owner, related party transactions, and additional information. Complete each part accurately — incorrect filings trigger the same $25,000 penalty as non-filing. Most non-residents hire a US CPA ($200-500) for Form 5472 preparation.

Parts

Form 5472 Structure

| Part | Contents | |------|----------| | Part I | Reporting corporation information | | Part II | 25% foreign shareholder information | | Part III | Related party information | | Part IV | Monetary transactions (amounts) | | Part V | Reportable transactions of a foreign related party | | Part VI | Additional information |

Part I Key Fields

Corporation name (your LLC name)
EIN
Address
Country of incorporation (US)
Total assets

Part II Key Fields

Foreign owner name
Country of citizenship
Foreign address
US TIN (if any)
Percentage of ownership

Transactions

Reportable Transactions (Part IV)

Report ALL monetary transactions between the US LLC and foreign owner:

| Transaction Type | Example | |-----------------|----------| | Capital contributions | Owner invests $10,000 into LLC | | Distributions | LLC pays owner $5,000 | | Loans | Owner lends $20,000 to LLC | | Service payments | LLC pays owner for services | | Rent | LLC pays rent to owner-owned property | | Any money transfer | Any amount, any direction |

Even $0 transactions must be reported if the LLC existed during the tax year.

Tips

Filing Tips

Keep records — Document every transaction between you and your LLC
File with pro-forma 1120 — Required even for single-member LLCs
Use a CPA — Form 5472 errors trigger $25,000 penalties
Get an EIN first — Required on Form 5472

Apply for EIN — $49

Frequently Asked Questions

Is Form 5472 required?

Yes, for all foreign-owned US LLCs and corporations with 25%+ foreign ownership. Filed annually with a pro-forma Form 1120.

What is the penalty for not filing?

$25,000 per form per year. Penalties accumulate and the IRS is aggressive on enforcement.

When is Form 5472 due?

April 15 (same as tax return). 6-month extension available via Form 7004 (extends to October 15).

Do I need an EIN to file Form 5472?

Yes. Your EIN is required on Form 5472. Apply for an EIN at ein.so for $49 before filing.

Can I file Form 5472 myself?

Yes, but most non-residents use a US CPA ($200-500) due to the $25,000 penalty for errors.

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