Form 5472: what it is, who must file it and how to comply

5472 filed late triggers a 25. The most critical IRS filing for non-resident LLC owners. $25,000 penalty per form per year if missed. Reportable transactions, deadlines and step-by-step compliance.

Pillar guide: for the full step-by-step flow, see our definitive guide to opening a US LLC.

If you own a US LLC as a non-resident, the Form 5472 is an informational return the IRS requires every year. It sounds intimidating, but rest assured: it's informational paperwork, not a tax payment, and at Exentax we handle everything for you. You literally don't have to do anything.

What is Form 5472?

Form 5472 is an IRS informational return that foreign-owned US LLCs must file each year. Its purpose is to report transactions between your LLC and its "related persons", that is, you as the owner.

Let's repeat this because it's important: it is not a tax payment form. It's purely informational. The IRS simply wants to know what financial movements occurred between you and your LLC during the year. Nothing more.

So why does it cause so much anxiety? Because the internet is full of alarmist articles with scary numbers. The reality: if you have a competent team handling it (ahem, that's us), it's a routine filing resolved without drama. At Exentax we prepare and file it for all our clients every year. You won't even notice.

Who must file Form 5472?

Any US LLC that has at least one foreign owner (non-resident and non-US citizen) and had reportable transactions during the tax year.

In practice: if you're a freelancer with a Single-Member LLC and you've moved money between your LLC and yourself, whether withdrawing profits, making capital contributions, or paying expenses, you must file this form. And if your LLC had activity (which is normal if you're invoicing), there are transactions to report.

What counts as a "reportable transaction"?

Owner's draws (profit withdrawals)
Capital contributions
Loans between the owner and the LLC
Payments for services between related parties
Rentals or intellectual property licenses
Any financial movement between the LLC and its owner

Basically, everything that flows in and out between you and your company. If you maintain good financial separation (LLC account in Mercury separate from personal), documenting this is straightforward.

Form 5472 and Form 1120: the inseparable pair

Form 5472 is not filed alone; it goes together with Form 1120, which is the LLC's corporate tax return. But note: for a Single-Member LLC with a foreign owner, Form 1120 is pro-forma. It doesn't declare actual taxes because the LLC is a Disregarded Entity and pays $0 in federal tax.

What is the pro-forma Form 1120?

It's the IRS corporate income tax return. For a single-member LLC with a non-resident owner, it's filed as a "wrapper" for Form 5472. Essentially:

Form 1120 is the cover page: includes the LLC's general information
Form 5472 is the content: details the transactions between you and your LLC

The pro-forma Form 1120 is filed with all financial fields at zero (income: $0, taxes: $0) because the LLC doesn't pay US taxes. What matters is the attached Form 5472.

Why is Form 1120 needed?

Because the IRS doesn't accept Form 5472 as a standalone document. It needs to go inside a corporate return (Form 1120). It's pure bureaucracy: the IRS designed the system for regular corporations, and non-resident LLCs have to use the same channel.

When is it due?

Form 5472 is filed together with Form 1120, with a deadline of April 15 each year for the previous tax year.

A 6-month extension (until October 15) can be requested by filing Form 7004, but the extension must be filed before April 15. At Exentax, we always file the extension automatically for all our clients, giving us plenty of time to prepare everything properly.

Key tax calendar:

Is it difficult to file?

If you do it yourself, yes, it can be cumbersome. The form requires detailed information about:

LLC data: name, EIN, address, state of formation
Foreign owner data: full name, country of residence, tax identification
Reportable transactions: broken down by type and amount

Additionally, it's filed on paper (not electronically) together with Form 1120, mailed to the IRS. Yes, today, the IRS still requires paper for this. Welcome to American bureaucracy.

But if you're an Exentax client, all of this is invisible to you. We gather the information, prepare both forms, review them, and mail them. You focus on your business and we handle compliance. That simple.

Penalties for not filing Form 5472

The IRS takes this form very seriously. Penalties for failing to file or filing incorrectly are significant:

$25,000 base penalty for each form not filed or filed incomplete
$25,000 additional for each 30-day period of non-compliance after IRS notification (up to $25,000 per month)
There is no defined maximum cap; penalties can accumulate considerably. That is exactly why at Exentax we keep your calendar tight — you stop thinking about deadlines and we close them before they ever bite.
Legal reference: IRC §6038A governs the reporting requirements for foreign-owned US entities

These figures sound alarming, but the reality is more nuanced. If you file your Form 5472 on time (or within the extension) with correct information, there is no penalty at all. Penalties apply to those who ignore the obligation or file with serious errors.

At Exentax, we ensure everything is filed correctly and on time. We have never had a client penalized by the IRS for a Form 5472.

What if I haven't filed in previous years?

If you have an LLC and haven't filed Form 5472 for previous years, stay calm. There are ways to catch up:

Voluntary late filings: the IRS has procedures for filing overdue forms
Reasonable cause: if you can demonstrate the non-compliance was unintentional, the IRS may reduce or eliminate penalties
Professional guidance: it's critical that this process is handled by someone with experience

At Exentax, we help clients who come from other services (or who managed their LLC themselves) to regularize their situation. The important thing is to act; the sooner you catch up, the better.

Key takeaways

Form 5472 (together with the pro-forma Form 1120) is an annual informational filing that every LLC with a foreign owner must submit. It doesn't involve tax payments. It's not complicated when handled by someone who knows what they're doing. And at Exentax, we take care of this as part of your LLC's annual maintenance.

Tax compliance in your country: CFC, controlled-foreign rules and income attribution

A US LLC is a fully legal, internationally recognized vehicle. But compliance does not end at incorporation: as an owner who is tax-resident elsewhere, your local tax authority still has the right to tax what the LLC earns. The key is under which regime.

By jurisdiction

Spain (LIRPF/LIS). An operative single-member disregarded LLC (real services, no significant passive income) is generally treated under income attribution (art. 87 LIRPF): the LLC's net profits are attributed to the member in the year they arise and integrated into the general IRPF base. If instead the LLC elects corporation treatment (Form 8832) and is controlled by a Spanish resident with mostly passive income, the CFC regime (art. 91 LIRPF for individuals, art. 100 LIS for companies) can apply. The choice is not optional: it depends on economic substance, not on the label.
Information returns. US bank accounts with average or year-end balance >€50,000: Form 720 (Law 5/2022 after CJEU C-788/19, 27/01/2022, penalties now under the general LGT regime). Related-party transactions and dividend repatriation: Form 232. US-custodied crypto: Form 721. Now is the moment to ask for help. At Exentax we open the case, file what is missing and reply to the relevant authority for you.
Spain–US tax treaty. The treaty (BOE 22/12/1990, Protocol in force 27/11/2019) governs double taxation on dividends, interest and royalties. An LLC without a permanent establishment in Spain does not by itself create a PE for the member, but effective management can if all activity is run from Spanish territory.
Mexico, Colombia, Argentina and other LATAM jurisdictions. Each has its own CFC regime (Mexico: Refipres; Argentina: foreign passive income; Chile: art. 41 G LIR). Common principle: profits retained inside the LLC are deemed received by the member if the entity is treated as transparent or controlled.

Practical rule: an operative LLC with substance, properly declared in your country of residence, is legitimate tax planning. An LLC used to hide income, fake non-residence or shift passive income with no economic justification falls within art. 15 LGT (anti-abuse) or, worse, art. 16 LGT (simulation). The facts decide, not the paperwork.

At Exentax we structure the entity to fit the first scenario and document every step so your local return can be defended in case of review.

Legal and regulatory references

This article relies on rules currently in force. Main sources for verification:

United States. Treas. Reg. §301.7701-3 (entity classification / check-the-box); IRC §882 (tax on foreign income effectively connected with a US trade or business); IRC §871 (FDAP and withholding on non-residents); IRC §6038A and Treas. Reg. §1.6038A-2 (Form 5472 for 25% foreign-owned and foreign-owned disregarded entities); IRC §7701(b) (tax residency, substantial presence test); 31 U.S.C. §5336 (Corporate Transparency Act, BOI Report to FinCEN).
Spain. Law 35/2006 (LIRPF), arts. 8, 9 (residency), 87 (income attribution), 91 (CFC for individuals); Law 27/2014 (LIS), art. 100 (CFC for companies); Law 58/2003 (LGT), arts. 15 (anti-abuse) and 16 (simulation); Law 5/2022 (Form 720 penalty regime after CJEU C-788/19 of 27/01/2022); RD 1065/2007 (Forms 232 and 720); Order HFP/887/2023 (Form 721 crypto). Now is the moment to ask for help. At Exentax we open the case, file what is missing and reply to the relevant authority for you.
Spain–US treaty. BOE of 22/12/1990 (original DTT); Protocol in force since 27/11/2019 (passive income, limitation on benefits).
EU / OECD. Directive (EU) 2011/16, amended by DAC6 (cross-border arrangements), DAC7 (Directive (EU) 2021/514, digital platforms) and DAC8 (crypto-assets); Directive (EU) 2016/1164 (ATAD: CFC, exit tax, hybrid mismatches); OECD Common Reporting Standard (CRS).
International framework. OECD Model Convention, art. 5 (permanent establishment) and Commentaries; BEPS Action 5 (economic substance); FATF Recommendation 24 (beneficial ownership).

Applying any of these rules to your specific case depends on your tax residency, the LLC's activity and the documentation you keep. This content is informational and does not replace personalized professional advice.

Banking and tax facts worth clarifying

Fintech and CRS information evolves; here is the current state:

Before going further, put numbers on your case: the Exentax calculator compares, in under 2 minutes, your current tax bill with what you would carry running a US LLC properly declared in your country of residence.

> Talk to our team

Notes by provider

Mercury operates with several federally chartered partner banks and FDIC coverage via sweep network: mainly Choice Financial Group and Evolve Bank & Trust, with Column N.A. still in some legacy accounts. Mercury is not itself a bank; it is a fintech platform backed by those partner banks. If Mercury closes an account, the balance is typically returned by paper check mailed to the account holder's registered address, which can be a serious operational problem for non-residents; keep a secondary account (Relay, Wise Business, etc.) as contingency.
Wise ships two clearly different products: Wise Personal and Wise Business. For an LLC you must open Wise Business, not the personal account. Important CRS nuance: a Wise Business held by a US LLC sits outside CRS because the account holder is a US entity and the US is not a CRS participant; the USD side operates via Wise US Inc. (FATCA perimeter, not CRS). In contrast, a Wise Personal opened by an individual tax-resident in Spain or another CRS jurisdiction does trigger CRS reporting via Wise Europe SA (Belgium) on that individual. Opening Wise for your LLC does not bring you into CRS through the LLC; a separate Wise Personal in your own name as a CRS-resident individual does report.
Wallester (Estonia) is a European financial entity with an EMI/issuing-bank licence. Its European IBAN accounts are within the Common Reporting Standard (CRS) and therefore trigger automatic reporting to the tax administration of the holder's country of residence.
Payoneer operates through European entities (Payoneer Europe Ltd, Ireland) that are also in scope for CRS for clients resident in participating jurisdictions.
Revolut Business: when paired with a US LLC, it operates under Revolut Technologies Inc. with Lead Bank as its US banking partner. The account delivered is a US account (routing + account number); no European IBAN is issued to a US LLC. The European IBANs (Lithuanian, Belgian) belong to Revolut Bank UAB and are issued to European clients of the group. If you are offered a European IBAN tied to your LLC, confirm exactly which legal entity holds that account and which regime it reports under.
Zero tax: no LLC structure delivers "zero tax" if you live in a country with CFC/tax transparency or income attribution rules. What you achieve is no double taxation and correct reporting at residence, not elimination.

On the same topic

Legal & procedural facts

FinCEN and IRS reporting requirements moved recently; the current state is:

BOI / Corporate Transparency Act: your LLC is NOT required to file (a competitive advantage). After FinCEN's March 2025 interim final rule, the BOI Report obligation was narrowed to "foreign reporting companies" (entities formed OUTSIDE the US and registered to do business in a state). A US-formed LLC owned by a non-resident does NOT file the BOI Report: one fewer filing on your calendar, less paperwork, and a cleaner structure than ever. If your LLC was formed before March 2025 and you already filed BOI, keep the acknowledgement. The regulatory status can change again: we monitor FinCEN.gov on every filing and, if the obligation comes back, we handle it at no extra cost. Current status verifiable at fincen.gov/boi.
Form 5472 + pro-forma 1120. For a Single-Member LLC owned by a non-resident, the final regulations of Treas. Reg. §1.6038A-1 (in force since 2017) treat the LLC as a corporation for 5472 purposes. Procedure: pro-forma Form 1120 (header only: name, address, EIN, tax year) with Form 5472 attached. It is filed by certified mail or fax to the IRS Service Center in Ogden, Utah, not e-filed via standard MeF. Due date: April 15; extension via Form 7004 to October 15. Penalty: $25,000 per form per year, plus $25,000 per additional 30 days of non-filing after IRS notice.
Substantive Form 1120. Only applies if the LLC has filed a check-the-box election to C-Corp (Form 8832): it then pays 21 % federal corporate tax and files a substantive 1120. A standard disregarded LLC does not file a substantive 1120 and does not pay federal corporate tax.
EIN and notice. Without an EIN you cannot file 5472 or BOI. The IRS does not warn before imposing penalties; you find out when an EIN is flagged or a later filing is rejected. Now is the moment to ask for help. At Exentax we open the case, file what is missing and reply to the relevant authority for you.

Practical reminder

Each tax situation depends on your specific residency, the activity carried out and the contracts in force. The information here is general and does not replace personalised advice; check your particular case before taking structural decisions.

Exentax today update: Form 5472 in detail

Form 5472 is still the most expensive obligation to overlook for a non-resident SMLLC:

Base penalty USD 25,000 per form per year (IRC §6038A) plus USD 25,000 for each additional 30 days with no filing after IRS notice. It does not lapse while the obligation is open. That is exactly why at Exentax we keep your calendar tight — you stop thinking about deadlines and we close them before they ever bite.
Exact procedure. Pro forma Form 1120 (header only: name, address, EIN, fiscal year) with Form 5472 attached. Send by certified mail or fax to the IRS Service Center in Ogden, Utah, not via MeF/e-file. Keep the shipping receipt as proof of filing.
today deadlines. FY2025 → due April 15, today. Extension via Form 7004 → October 15, today. The extension is also mailed or faxed and must arrive before April 15.

Frequently asked questions

*What counts as a reportable transaction?* Any movement between the LLC and its sole non-resident member: capital contributions, draws, loans, service payments. If there was movement, you must file.

What if I have not filed for years? Catch-up filings with a written reasonable cause statement. Get advice: a well-built letter can avoid the initial penalty. At Exentax we have closed clients in exactly this spot at zero penalty. Speaking up early pays off — and saves you five figures.

Does Form 7004 cover the 5472? Yes. If you file the 7004 before April 15, the 5472 + pro forma 1120 deadline automatically extends to October 15.

How we file Form 5472 at Exentax

The 5472 is the costliest piece if missed: a USD 25,000 minimum penalty per year. The filing always rides with a pro-forma 1120 and demands consistency with BOI, EIN and banking. The Exentax method assembles it each year inside one calendar week.

Real reportable transactions: every move between the LLC and the beneficial owner (contributions, distributions, loans) documented and reconciled with bank statements before any field is filled.
Pro-forma 1120 consistent with the fiscal year and accounting method declared on the SS-4 when the EIN was obtained.
Receipt and archive: signed copy, transmission number and proof of mailing stored in the client repository, not the operator's inbox.

If you want us to file it or just review the last one, run the Exentax calculator or book thirty minutes.

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For state-specific details, see our Wyoming LLC service page with closed costs and timelines.

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