What is the penalty for not filing Form 5472?

The penalty for failing to file Form 5472, or filing it late or incomplete, is $25,000 per form per year. The penalty applies per entity per year and continues to accrue for continued failure after IRS notice.

Does a foreign-owned US LLC with no income still have to file?

Yes. The filing requirement is based on reportable transactions, including the formation, funding, and operation of the LLC, not on profit. A foreign-owned single-member LLC with no revenue generally still must file Form 5472 and a pro-forma Form 1120 every year.

Can I still fix late Form 5472 filings?

Yes. We file delinquent Form 5472 returns with a reasonable cause statement requesting penalty relief, and where appropriate use the IRS Delinquent International Information Return Procedures. Acting before the IRS contacts you significantly improves the outcome.

$25,000 penalty per year if you miss it

Form 5472 Filing for Foreign-Owned US LLCs

If you are a non-US person who owns a US LLC, the IRS almost certainly requires you to file Form 5472 with a pro-forma Form 1120 every year — even if the LLC earned nothing. Miss it and the automatic penalty is $25,000 per year, per entity. We file it correctly and clean up past years.

Check My Filing Requirement I'm Already Behind

United States

Canada

India

Who Has to File Form 5472?

Form 5472 is an information return that reports transactions between a US business and its foreign owner or related parties. You generally must file if any of the following describe you:

Foreign-owned single-member LLC

A US LLC wholly owned by one non-US person or foreign company. Treated as a disregarded entity, it files Form 5472 attached to a pro-forma Form 1120.

25%+ foreign-owned US corporation

A US C-Corporation with a foreign shareholder owning 25% or more, where reportable transactions occurred during the year.

You had a reportable transaction

Forming the LLC, contributing capital, taking distributions, loans to or from the owner, and most money movement all count — not just sales income.

Even with zero income

A dormant or pre-revenue foreign-owned LLC still files. "No income" is not an exemption — it is one of the most common reasons people get penalized.

$25,000

Penalty per form, per year

The penalty is automatic and applies for not filing, filing late, or filing an incomplete or substantially inaccurate Form 5472. Two missed years is $50,000.

April 15

Annual deadline (calendar-year filers)

Form 5472 is filed with the pro-forma Form 1120 by mail or fax to the IRS Ogden, Utah service center. A six-month extension is available on Form 7004 if filed on time.

How We Handle It

Prepare and file Form 5472 with the required pro-forma Form 1120 for each entity and year
Identify and correctly report every reportable transaction with related foreign parties
Apply for an EIN if your LLC does not have one yet
Advise whether a C-Corp election or restructuring is more efficient under your home-country treaty
Coordinate with Form 5471 analysis where the owner also has controlled foreign corporation exposure

Already Behind? You Have Options.

Most people discover the Form 5472 requirement after the fact. The good news: filing voluntarily before the IRS contacts you is the strongest position. We file your delinquent returns with a reasonable cause statement and, where it fits, use the IRS Delinquent International Information Return Procedures to request penalty relief.

A real pattern we see: a founder runs a US LLC for two years for billing, never files Form 5472, and faces $50,000 in stacked penalties. Filing catch-up returns with a documented reasonable cause statement — before any IRS notice — routinely leads to abatement and a clean slate going forward.

Form 5472 FAQs

Who must file Form 5472?

Any US single-member LLC wholly owned by a non-US person, and any US corporation that is at least 25% foreign-owned with a reportable transaction, must file. Foreign-owned single-member LLCs file Form 5472 attached to a pro-forma Form 1120, even with no income.

What is the penalty for not filing?

$25,000 per form, per year, for failing to file or filing late, incomplete, or inaccurate. It applies per entity and continues to accrue after IRS notice if not corrected.

My LLC had no income. Do I still file?

Yes. The requirement is triggered by reportable transactions, including forming and funding the LLC, not by profit. Dormant and pre-revenue foreign-owned LLCs generally still must file every year.

Can late filings still be fixed?

Yes. We file delinquent returns with a reasonable cause statement and, where appropriate, use the Delinquent International Information Return Procedures. Filing before the IRS contacts you greatly improves your odds of penalty relief.

What does it cost?

We quote a flat fee after a short call, based on the number of entities and years involved. You will know the full price before any work begins.

Find Out Where You Stand

A 30-minute call covers your entity, your filing history, and exactly what catching up would involve. No commitment.

info@ilmcpa.com +1 (206) 209-8210