Form 5472 is an IRS information return reporting transactions between a US entity and its related foreign parties. A foreign-owned US single-member LLC generally files it attached to a pro forma Form 1120 each year in which it had a reportable transaction. It reports information; it does not itself calculate tax owed.
Why does Form 5472 matter for founders?
This is the filing that most damages unprepared non-resident founders. The failure-to-file penalty starts at $25,000 per form per year, and the obligation applies even when the company is dormant - because capitalising the company or paying its formation costs counts as a reportable transaction.
Where can I read more about Form 5472?
Note: A plain-English definition for orientation, not legal or tax advice. Rules change - last checked 2026-07-21.