Form 5472 Complete Guide

Essential information for foreign-owned U.S. corporations and their filing requirements

What is Form 5472?

Form 5472 is an information return that must be filed by certain U.S. corporations that are 25% foreign-owned and by foreign corporations engaged in a U.S. trade or business. The form reports transactions between the reporting corporation and related foreign parties.

⚠️ Important Note

Failure to file Form 5472 can result in penalties starting at $25,000 per form, per year.

Who Must File Form 5472?

1. 25% Foreign-Owned U.S. Corporations

Any U.S. corporation where at least one foreign person owns, directly or indirectly, 25% or more of:

The total voting power of all classes of stock
The total value of all classes of stock

2. Foreign Corporations with U.S. Business

Any foreign corporation engaged in a trade or business within the United States, regardless of ownership structure.

3. Foreign-Owned Disregarded Entities

Single-member LLCs that are disregarded for tax purposes but have a foreign owner must file Form 5472. This includes:

LLCs owned by foreign individuals
LLCs owned by foreign corporations
LLCs owned by foreign partnerships

What Transactions Must Be Reported?

Form 5472 requires reporting of various transactions between the reporting corporation and related foreign parties:

Sales and purchases of inventory
Sales and purchases of tangible property
Rents and royalties paid or received
Sales and purchases of intangible property
Consideration for technical, managerial, or other services
Commissions paid or received
Amounts borrowed or loaned
Interest paid or received
Premiums for insurance or reinsurance

How to File Form 5472

Gather Information

Collect all required documentation including EIN, foreign owner details, and transaction records.

Complete the Form

Fill out all six parts of Form 5472 with accurate information. Start your form here.

Maintain Records

Keep all supporting documentation for at least 6 years as required by IRS regulations.

File with Tax Return

Attach Form 5472 to your income tax return and file by the due date, including extensions.

Important Deadlines

Form 5472 must be filed with the corporation's income tax return:

C-Corporations: April 15th (or October 15th with extension)
S-Corporations: March 15th (or September 15th with extension)
Foreign-Owned LLCs: April 15th (or October 15th with extension)

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