If you own a US LLC and live outside the US, you have to file Form 5472 with the IRS every year. Even if your LLC made zero dollars. Even if you had no customers. Even if the company sat completely idle. Skipping it is a $25,000 mistake.
What is Form 5472?
Form 5472 reports transactions between a foreign-owned US business and its foreign owners. The IRS uses it to make sure profits aren’t being moved offshore in ways that dodge US tax. It applies to single- member LLCs owned by non-US persons, which is the vast majority of Regiwise clients.
Who has to file it?
- Any US LLC owned 25% or more by a non-US person
- Even if the LLC had no income
- Even if there were no transactions with the foreign owner
The $25,000 penalty
The IRS penalty for failing to file Form 5472 is $25,000 per year. It used to be $10,000, but it was increased in 2018. There’s no “I didn’t know” defense. The IRS doesn’t care that you live abroad and weren’t aware of the form.
How to file it
You file Form 5472 alongside a pro-forma Form 1120 (a corporate income tax return). The deadline is April 15 for the previous tax year, with an automatic extension to October 15 available.
The Regiwise way
Our Professional plan ($849/year) includes Form 5472 + 1120 filing every year. A licensed US tax preparer reviews your filing before it goes to the IRS. You don’t have to think about it. It just gets done.
