IRS and LLC for non-residents: EIN, Form 5472 and deadlines

For a non-resident LLC owner, the IRS is about EIN, pro-forma 1120, Form 5472 and a clean annual calendar. Compliance can be light, but late filings are expensive.

The IRS handles more than 240 million returns a year with around 80,000 employees, and for a non-resident single-member LLC its attention narrows down to 2 forms: Form 1120 and Form 5472.

If you have a US LLC, or you're thinking about having one, you're going to hear a lot about the <a href="https://www.irs.gov" target="_blank" rel="noopener">IRS</a>. It's the entity you'll have the most relationship with from a tax perspective. Better to understand it well from the start.

What is the IRS?

The IRS (Internal Revenue Service) is the US federal tax agency. It's the equivalent of:

• AEAT (<a href="https://sede.agenciatributaria.gob.es" target="_blank" rel="noopener">Agencia Tributaria</a>) in Spain
• SAT in Mexico
• DIAN in Colombia
• AFIP in Argentina
• SII in Chile

Its main function is collecting federal taxes and enforcing US tax legislation.

Your LLC's relationship with the IRS

Although your LLC doesn't pay US federal taxes (as a Disregarded Entity with a non-resident owner), the IRS is still relevant because:

1. It assigns your EIN

The EIN (Employer Identification Number) is your LLC's tax number. Issued by the IRS, you need it for practically everything: opening bank accounts (Mercury, Relay), registering on Stripe, filing returns, and the BOI Report.

2. You file annual returns

Each year you must file Form 5472 + Form 1120 with the IRS. It's an informational filing that reports transactions between you and your LLC. You don't pay taxes, but the IRS wants to know what movements occurred.

3. It requires timely compliance

The IRS expects Form 5472 to be filed on time each year. The penalty for non-filing is $25,000 per form per year (IRC §6038A). This is a significant administrative obligation that we handle for you as part of our maintenance service. Exentax brings method to the file: context, proof, execution and review.

4. It defines your LLC's tax classification

The IRS determines how your LLC is treated for tax purposes. For a Single-Member LLC with a foreign owner, the classification is "Disregarded Entity", meaning the LLC itself is not a taxpayer. All income passes through to you.

Income source. the critical concept

What determines whether you pay US taxes is not where your LLC is registered, but where the income comes from:

• You design a website for a German client from your home in Spain → income of foreign source → not taxed in the US
• You design a website for a New York client while physically in New York → income of US source → could be taxed (IRC §871/882)

For most freelancers and digital entrepreneurs, income is foreign-source, resulting in conditional US federal treatment.

Key IRS deadlines

The forms you should know (and that we prepare for you)

Form 5472. the most important

The informational form reporting transactions between the LLC and its foreign owner:

• Capital contributions from the member
• Distributions (Owner's Draws) to the member
• Loans between LLC and member
• Payments for services between related parties

Not filing on time carries a $25,000 penalty per form per year. The IRS takes this form very seriously. Exentax reviews the case before money, signatures or provider replies move forward.

Form 1120. the "cover" for the 5472

Form 5472 can't be filed alone. It goes attached to a Form 1120 (corporate tax return) that, for a Disregarded Entity, is filed with fields at zero (because there's no tax to pay). It's basically an envelope for the 5472.

Form 7004. the extension

This form requests a 6-month extension (from April 15 to October 15). It's automatic. the IRS cannot deny it if properly filed. We file it for all our clients as standard practice.

FBAR (<a href="https://www.fincen.gov" target="_blank" rel="noopener">FinCEN</a> Form 114)

If your US financial accounts exceed $10,000 at any point during the year, you must file this report with FinCEN (not the IRS, but often discussed together). Deadline: April 15 (automatic extension to October 15).

Can I communicate with the IRS?

Yes, but it's not the most agile experience:

• Phone line: Long hold times (45+ minutes is normal)
• Mail correspondence: Everything formal goes by postal mail (yes, today)
• Online portal (IRS.gov): For queries, forms, and some tools

For non-residents, communicating with the IRS can be especially complicated due to time zones and language requirements (everything is in English). That's exactly why you work with a service like Exentax. we handle all IRS communication for you.

The IRS penalty structure you should know

The IRS doesn't mess around. Understanding the penalty framework helps you appreciate why compliance matters. At Exentax, the answer starts from the file: facts, documents, deadline and follow-up.

For a non-resident LLC owner with no US-source income, the most relevant is the Form 5472 penalty. Filing on time (directly or with extension via Form 7004) eliminates this risk completely. The Exentax approach is practical: confirm the data, prepare the evidence and close the next step.

What the IRS sees about your LLC

The IRS has the following information about your LLC:

• Your EIN and the entity it's linked to
• Your Form 5472 filings showing LLC-owner transactions
• Your Form 1120 (pro-forma, all zeros for Disregarded Entity)
• Your Form 7004 extension requests
• Any 1099 forms issued by US clients who paid your LLC
• Banking information (1099-INT for interest income)

This information is available to the IRS and, under certain circumstances, can be shared with foreign tax authorities through treaty mechanisms.

At Exentax: your IRS buffer

We serve as the buffer between you and the IRS. All communication, all filings, all deadlines. handled by us. You never need to call the IRS, navigate their website, or mail a form. We handle the Form 7004 extension decision, Form 5472 + 1120 annual filing, FBAR when applicable, and IRS notices on your behalf.

If something in this structure left you wanting more detail, <a href="/en/blog/us-llc-for-marketing-agencies-with-tax-structure">US LLC for digital marketing agencies: structure, billing and scaling</a> and <a href="/en/blog/llc-for-devs-and-saas-stripe-us-banking-structure">US LLC for software developers and SaaS founders: the complete guide</a> dive into neighbouring pieces of the puzzle we usually keep for separate write-ups.

> <a href="/en/book">Review my structure</a>

• The IRS does not read your fintech brand; it reads records. EIN, filings, related-party transactions, owner data and supporting documents matter more than the account provider's name.
• Banking evidence supports IRS explanations. If the LLC reports transactions with the foreign owner, the movement should be visible in statements and bookkeeping.
• Keep tax forms and account records synchronized. W forms, EIN records, Form 5472 and provider self-certifications should not contradict the same ownership story.
• Exentax prepares the IRS-facing file from operational data. The cleaner the day-to-day records, the less dramatic tax compliance becomes.

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

• EIN and notice. Without an EIN you cannot file Form 5472. The IRS does not warn before imposing penalties; you find out when an EIN is flagged or a later filing is rejected. At Exentax we map the exposure early, prepare the reasonable-cause file and reduce avoidable escalation before the authority controls the timeline.