Do you need to file Form 5472?
Form 5472 applies even with $0 in sales. A missed year costs $25,000. The penalty has no cap. Check if your company must file. Then get the free filing manual.
A U.S. LLC owned by one person outside the U.S., or a corporation with a foreign owner of 25% or more, must file it for every year with a reportable transaction. The owner’s opening deposit counts. Revenue does not matter.
Filing is routine once you know your deadline.
No account needed. One click, then your result.
How this checker decides
Form 5472 is for a "reporting corporation" that had a "reportable transaction" with a related party. Since tax year 2017, a U.S. LLC wholly owned by one foreign person counts as a reporting corporation. The checker reads the entity type from your company name (LLC, Inc., Corp.) and applies these rules:
| Your company | Owner | Result | Where the rule comes from |
|---|---|---|---|
| Single-member LLC | Foreign person, and money passed between you and the LLC | File Form 5472 with a pro forma Form 1120 | 26 CFR § 1.6038A-1(c)(1) and § 1.6038A-2(b)(3)(xi) |
| Single-member LLC | Foreign person, nothing passed at all | Not required for that year. Confirm with a tax professional | Form 5472 instructions, "Exceptions from filing" |
| Single-member LLC | U.S. citizen or resident | No Form 5472 | § 6038A applies to foreign-owned companies |
| Corporation | A foreign person held 25% or more of the vote or value, directly or indirectly, at any time in the year | File Form 5472 with Form 1120 | 26 U.S.C. § 6038A(c) |
| S corporation | Cannot have a nonresident alien as a shareholder | Normally no Form 5472. If a foreign person directly owns shares, the S election may be invalid | 26 U.S.C. § 1361(b)(1)(C) |
| Multi-member LLC taxed as a partnership (no Form 8832 election) | Any | No Form 5472. Partnership rules apply instead | 26 CFR § 1.6038A-1(c)(1); Form 5472 instructions, "Who must file" |
Why the penalty matters
The IRS assesses these penalties automatically when a return arrives late. From 2018 to 2021 it assessed about 10,000 penalties a year under the Form 5471 and 5472 rules, worth $390.8 million a year. 83 percent of the business penalties went to small and midsize companies. Each Form 5472 penalty is $25,000, and the IRS says there is no maximum amount.
Questions people ask
Does a foreign-owned LLC with zero revenue have to file Form 5472?
Usually yes in the first year. The test is a reportable transaction, not revenue. The owner’s opening deposit counts as one, and so do amounts paid or received in connection with forming the LLC.
Does a C corporation with a foreign shareholder file Form 5472?
Yes, when a foreign person owned 25% or more at any time in the year and the corporation had a reportable transaction with that person. The form is attached to the corporation’s Form 1120.
Can I e-file Form 5472 for my single-member LLC?
No. The instructions say a foreign-owned U.S. disregarded entity cannot file Form 5472 electronically. You send it by fax or by mail to a special IRS unit in Ogden, Utah.
How large is the penalty if I miss Form 5472?
$25,000 for each tax year with a failure. After an IRS notice, a further $25,000 can apply for each 30-day period that passes after 90 days. Filing a substantially incomplete form counts as a failure to file.
Sources
- Instructions for Form 5472 (12/2024), accessed 2026-10-13
- International information reporting penalties, accessed 2026-10-13
- 26 CFR § 1.6038A-1, General requirements and definitions, accessed 2026-10-13
- 26 CFR § 1.6038A-2, Requirement of return, accessed 2026-10-13
- 26 U.S.C. § 6038A, accessed 2026-10-13
- 26 U.S.C. § 1361, accessed 2026-10-13
- National Taxpayer Advocate 2023 Annual Report, Most Serious Problem #8 (International), accessed 2026-10-13
This checker is general information based on the sources above, not tax advice. For decisions about your situation, talk to a CPA or enrolled agent.