Form 5472 refers to an information return filed with the Internal Revenue Service (IRS) by qualifying U.S. and foreign entities.
As we’ll discuss below, Form 5472 is relevant to any business with 25% or more foreign ownership, including both domestic entities and foreign entities.
In this article, we’re going to explore the specific requirements, discuss who needs to file, and answer the most common questions we receive on the topic.
This article is part of our free series on LLCs in the United States, including the steps for opening a business bank account for an LLC, which you can access here right now.
Feel free to use the table of contents to jump ahead to the sections most relevant to you.
Table of Contents
- Form 5472
- Who Is Responsible for Reporting a 5472 Form?
- How to File a 5472 Form With the IRS?
- Frequently Asked Questions
- Ready to Open Accounts With Banks in the USA?
Form 5472
Form 5472 is a U.S. tax form for qualifying entities with at least 25% foreign ownership. The form includes information on the ownership structure, reportable transactions, and a separate form must be submitted for each foreign owner.
That said, if a foreign entity does business in the United States and has more than 25% foreign ownership it will also file.
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Who Is Responsible for Reporting a 5472 Form?
The parties responsible for filing Form 5472 include U.S. entities, corporations, or partnerships, where at least 25% of the company is owned by a foreign owner. Importantly, a separate form must be completed for each foreign owner in a qualifying company.
Business owners who wish for their entity to be treated differently for tax purposes can file an 8832 form with the IRS.
How to File a 5472 Form With the IRS
To file Form 5472 with the IRS the owner of the business will need to already have an Employer Identification Number (EIN) for the business. Next, you will prepare the form. And, you will also prepare Form 1120.
Filing Instructions
Once completed, the owner can submit the forms themselves or with the assistance of a tax preparer. Submission takes place either by fax or mail.
Frequently Asked Questions
Below are four of the most common questions we receive from people looking into this topic. If you have further questions you would like to ask our team, don’t hesitate to get in touch.
What Is Form 5472 Used For?
Form 5472 is an informational form, sharing information with the Internal Revenue Service (IRS) about certain qualifying entities where there is at least 25% foreign ownership.
Who Is Required to File Form 5472?
Form 5472 is required to be filed by certain U.S. corporations and partnerships with more than 25% foreign ownership. Additionally, it also needs to be filed by foreign entities doing business in the United States where a foreign owner controls 25% or more of the company. Importantly, each owner will file a separate form.
Do I Have to File Form 5472 Every Year?
If you have an entity that qualifies to file with the Internal Revenue Service, you must file each year. Additionally, information needs to be provided about the ownership of the entity and any reportable transactions that take place during the tax year.
What Is the Difference Between 5471 and 5472?
The main difference between Form 5471 and Form 5472 is that Form 5471 is filed by U.S. citizens and U.S. residents tied to certain foreign corporations while Form 5472 is filed by certain foreign-owned corporations and partnerships.
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