Consider it Done...
Foreign-Owned U.S. Entity – Form 5472 & 1120 Filing
Required even with no income. Penalties start at $25,000 per year, per entity.
If your U.S. company is foreign-owned, the IRS requires specific reporting — even if your business had no revenue, no expenses, and no activity.
Form 5472 Penalty Warning
This penalty:
- Applies per year
- Applies per entity
- Is assessed automatically
- Applies even if the business had no activity
The IRS does not need to prove intent or negligence. If your entity is foreign-owned, compliance is not optional.
Who This Filing Applies To
This filing is required if all of the following apply:
- You own a U.S. LLC or corporation
- At least one owner is not a U.S. person
- The entity had any transaction with a foreign owner*
- Still applies even if the business had no income or operations.
*including capital contributions, reimbursements, or loans)
Reportable transactions include (but are not limited to):
- Capital contributions
- Owner loans
- Reimbursements
- Payments for services
- Intercompany charges
- Use of company funds by the owner
Important:
Filing is required even if total income was $0 and the business was inactive.
What Is Required by the IRS
Foreign-owned U.S. entities must file:
- Form 5472
(Information return disclosing foreign ownership and related-party transactions) - Form 1120 (Proforma)
(Attached solely to transmit Form 5472 — not a full corporate return)
Both forms must be filed accurately and on time to avoid penalties.
What This Intake Covers
This intake allows us to collect the exact information required to:
- Confirm whether Form 5472 is required
- Identify reportable related-party transactions
- Prepare Form 5472
- Attach the required 1120 Proforma
- Ensure IRS-compliant filing and documentation
The intake is the first step only. No preparation begins until applicability and scope are confirmed.
Common Situations We See
This intake allows us to collect the exact information required to:
- “My LLC never made money — I didn’t think I had to file.”
- “I funded the company from abroad but didn’t pay myself.”
- “My accountant never mentioned Form 5472.”
- “I received an IRS penalty notice for $25,000.”
- “I missed filing for prior years.”
If any of these apply, do not ignore it. Late filings and penalty mitigation may still be possible.
Explore All Our Filing Packages in One Place
Basic Package
Basic Filing Package — $150
Includes:
- Preparation of Form 1120 (Pro Forma)
- Preparation of Form 5472 (single foreign owner, simple activity)
- IRS submission via fax
- Fax transmission confirmation provided
Best For:
- Single foreign owner
- No loans or complex transactions
- Capital contributions and/or distributions only
- Clients who just need the filing completed
(Not Includes)
- Certified Mailing
- Consultation
- Complex transaction analysis
- Multiple related parties
Full Compliance Package
Full Compliance Package — $250
Includes everything in Basic, plus:
- Certified IRS mailing with tracking
- Filing documentation suitable for audit records
- Short consultation (15–20 minutes) to review:
- Transactions
- Risk areas
- Filing overview
- Additional review for accuracy and completeness
Best For:
- Clients who want proof of filing
- First-time Form 5472 filers
- Clients who want peace of mind and support
- Anyone concerned about penalties or future IRS inquiries
Advanced Package
For entities with higher complexity or increased IRS exposure
Includes everything in Full Compliance, plus:
- Complex transaction analysis, including:
- Loans (beginning/ending balances, interest)
- Multiple transaction categories
- Higher transaction volume
- Expanded Form 5472 disclosures and statements
- Additional preparer support and follow-up
- Extended consultation and clarification support
Required For:
- Loans to/from foreign owner
- Multiple related foreign parties
- Non-monetary services with FMV estimates
- Complex or high-dollar activity
Optional Add-Ons
- rush processing $100
Fast-Track Priority Handling
- Additional Consultation $75
Fast-Track Priority Handling
Frequently Asked Questions
Do I have to file if my company had no income?
Yes. Income is not the trigger.
Foreign ownership + reportable transactions = filing requirement.
What counts as a reportable transaction?
Any financial interaction between the U.S. entity and a foreign owner or related party, including funding the company or paying expenses.
What if I already missed a year?
You may still be able to file late or seek penalty relief. This depends on facts and timing.
Is this the same as a regular corporate tax return?
No. This is a compliance filing, not a full income tax return.
Do you file amended or late Forms 5472?
Yes, when appropriate. The intake helps determine the correct approach.
Ready to Take the Next Step?
If your U.S. entity is foreign-owned, do not assume you’re exempt.
Start the intake so we can confirm:
- Whether Form 5472 is required
- What years are affected
- The correct filing path forward
