IRS Form 5472 & 1120 Filing Requirements for Foreign-Owned Single-Member LLCs
A comprehensive IRS tax compliance guide for non-resident alien founders on Section 6038A regulations, pro-forma Form 1120 attachments, reportable transactions, and April 15 submission deadlines.
- •Mandatory Tax Reporting: All 25%+ foreign-owned single-member US LLCs must file Form 5472 annually with IRS.
- •Pro-Forma Form 1120: Form 5472 must be attached to a pro-forma Form 1120 (U.S. Corporation Income Tax Return) with "Foreign-owned U.S. DE" written at the top.
- •Reportable Transactions: Must disclose capital injections, owner's draws, loans, and business expense reimbursements between foreign owner and LLC.
- •Strict $25,000 Fine: Failing to file on time triggers an automatic $25,000 IRS penalty.
Table of Contents
1. Why Foreign-Owned Single-Member LLCs Must File Form 5472
Under US tax regulations updated in 2017 (T.D. 9796), foreign-owned single-member LLCs (Disregarded Entities) are treated as US corporations solely for the purpose of Section 6038A information reporting.
This rule applies to any US LLC where a foreign non-resident person or entity directly or indirectly owns 25% or more of the company.
2. What Constitutes a Reportable Transaction?
A reportable transaction includes any exchange of money or assets between the LLC and its foreign owner:
- Owner's equity contributions (money deposited to form or run the LLC).
- Owner's draws (profit withdrawals transferred overseas).
- Loans between the owner and the LLC.
- Payment of personal software subscriptions or domain fees paid by owner on behalf of LLC.
3. How to Prepare Pro-Forma Form 1120
Form 5472 cannot be filed alone. It must be attached to a pro-forma Form 1120.
On Form 1120, you complete the company name, address, EIN, and write "Foreign-owned U.S. DE" at the top of page 1. Income and deduction lines on Form 1120 are left blank because tax pass-through rules apply.
IRS FORM 5472 TAX FILING SERVICES
File Form 5472 & 1120 Pro-Forma with ADVAQ
ADVAQ prepares Form 5472, documents reportable transactions, generates pro-forma Form 1120, and faxes directly to the IRS to protect your LLC from $25,000 penalties.
4. Filing Deadlines (April 15) & Form 7004 Extensions
Form 5472 is due on April 15 following the close of the calendar tax year.
If you need additional time, filing IRS Form 7004 on or before April 15 grants an automatic 6-month extension to October 15.
5. How to Fax Form 5472 Directly to the IRS Ogden Unit
Form 5472 and pro-forma Form 1120 must be faxed to the dedicated IRS unit in Ogden, Utah:
IRS Ogden Fax Number: +1 (855) 887-7737.
Frequently Asked Questions
IRS FORM 5472 COMPLIANCE
File Your Form 5472 with ADVAQ
Pro-forma Form 1120 preparation, reportable transaction auditing, IRS Ogden faxing, and $25,000 penalty protection.