Form 5472 for a foreign-owned LLC: who files, how, and the $25,000 penalty

Written and fact-checked by Alan Maldonado · Updated Oct 23, 2026 · 4 min read

Owning a US LLC from abroad usually means no US income tax return for the LLC itself. It doesn’t mean no IRS filing. Every year, a single-member LLC owned by a foreign person files Form 5472, an information return about the money and property that moved between the LLC and its owner.

Key point Form 5472 goes with a “pro forma” Form 1120, by fax or mail (it can’t be filed electronically), by the 15th day of the 4th month after the tax year ends: April 15 for a calendar year. The IRS penalty for not filing it is $25,000.

Does it apply to you?

It applies if your LLC is what the IRS calls a foreign-owned U.S. DE (disregarded entity): a US LLC with a single owner who is a foreign person. For this form only, the IRS treats it as a US corporation, even though for income tax it is still disregarded.

What triggers the filing is a reportable transaction with the owner, not income. The IRS lists amounts paid or received “in connection with the formation, dissolution, acquisition, and disposition of the entity, including contributions to, and distributions from, the entity.” So the year you form the LLC almost always has one: the money you put in to set it up.

If the LLC has two or more members, it is a partnership and files Form 1065 instead. This guide doesn’t cover that case.

What you file

Two forms, sent together:

  1. A pro forma Form 1120. Write “Foreign-owned U.S. DE” across the top. The IRS asks only for “the name and address of the foreign-owned U.S. DE and items B and E on the first page”: the EIN, and whether it’s the first return, the final one, or a name or address change.
  2. Form 5472, attached to it.

You need the LLC’s EIN first, since it goes on both forms. See how to get an EIN. The LLC uses the same tax year as its owner does for US filings or, if the owner has none, the calendar year.

What goes on Form 5472

  • Part I: the LLC (name, address, EIN, business activity, country and date of formation). Check the box that says it is a foreign-owned U.S. DE.
  • Parts II and III: you, as the 25% foreign shareholder and as the related party. If you have no SSN or ITIN, the instructions let you use a reference ID number you make up yourself: letters and numbers only, no spaces or special characters, up to 50 characters. Use the same one every year. You don’t need an ITIN to file.
  • Part IV: money transactions between the LLC and you (sales, services, loans, other payments).
  • Part V: for foreign-owned DEs, every other transaction with you, including contributions and distributions, described on an attached statement.

Two rules make the amounts easier. A reasonable estimate is accepted, meaning “at least 75% but not more than 125% of the actual amount”. And when a transaction or series of transactions totals $50,000 or less, you can report it as “$50,000 or less.”

When it’s due

  • Deadline: the due date of the pro forma Form 1120, “the 15th day of the 4th month after the end of its tax year.” For a calendar year, April 15.
  • Extension: Form 7004, filed by the regular due date. Write “Foreign-owned U.S. DE” across the top, enter the Form 1120 code in Part I, line 1, and send it to the same fax number or address as Form 5472.

How to send it

The instructions say plainly that a foreign-owned U.S. DE “cannot file Form 5472 electronically.” Use one of two ways:

  • Fax (300 DPI or higher) to 855-887-7737.
  • Mail to: Internal Revenue Service, 1973 Rulon White Blvd, M/S 6112, Attn: PIN Unit, Ogden, UT 84201.

This is a dedicated address for foreign-owned DEs, not the general Form 1120 address.

Penalties

  • $25,000 for not filing “when due and in the manner prescribed.” A substantially incomplete form counts as not filing.
  • If the failure continues more than 90 days after the IRS notifies you, another $25,000 for each 30-day period (or part of one) it continues.
  • The same penalty covers not keeping the required records.
  • Until you file, the time the IRS has to examine that year doesn’t run out: the law says it “shall not expire before the date which is 3 years after the date on which the Secretary is furnished the information.”

Keep your records

Records that back up Form 5472 (bank statements, proof of contributions and distributions, invoices) must be kept in the United States, unless you meet the conditions for keeping them abroad. One of those is delivering them to the IRS within 60 days of a request. Keep them at least as long as the IRS can examine the year.

Do it yourself or pay for it?

The form isn’t long, but a mistake can cost $25,000, and the formation year always has something to report. Several formation services for non-residents sell the yearly filing; what it costs to hand it off compares them with hiring an accountant. If your LLC has US income or more complex activity, a US accountant is the safer choice. The Spanish section has its own guide to Form 5472 for Spanish speakers.

General information, not legal or tax advice. This guide summarizes the IRS instructions for the common case of a single-member LLC owned by a foreign person. Check the official instructions or a tax professional for your situation.

Sources

Checked October 23, 2026.

Next guideTaxes and bookkeeping for a foreign-owned LLC: what to file and what it costs →What a single-member US LLC owned by a non-US person files every year with the IRS and the state, what records to keep, and what doola, Firstbase or an accountant charge to do it for you.For non-residentsWhat each service costs without an SSNServices that take owners without an SSN, ranked by three-year cost with a registered agent and an EIN.See the ranking →

Spotted something wrong in this guide? Report it

Ask Faro