How to properly file 5472 and 1120 tax forms as a foreign-owned single member LLC?

Hey there! I've helped several foreign clients with similar situations. Let me clear things up for you. For foreign-owned single-member LLCs, you're correct that Forms 5472 and 1120 are typically required. Form 5472 reports transactions between your LLC and foreign related parties, while Form 1120 is the corporate income tax return. Unfortunately, there's no direct e-filing option for Form 5472 through the IRS website. Form 1120 can be e-filed, but since 5472 needs to be attached to it, you'll likely need to paper file both. As for mailing, this is completely your responsibility, not your registered agent's. Your registered agent's job is mainly to receive legal documents and official correspondence, not to handle your tax filings. If you want to do this yourself, you'll need to download the forms from the IRS website, complete them carefully, and mail them to the address specified in the instructions. Just be aware that the penalties for incorrect filing or missing the deadline for Form 5472 are quite steep ($25,000 per form).

I was in the exact same boat last year with my foreign-owned LLC. After struggling with this exact issue, I discovered taxr.ai (https://taxr.ai) and it was a game-changer for handling these specific international business forms. Unlike the usual tax prep services charging $600+, taxr.ai specifically analyzed my LLC structure and helped me understand which fields on forms 5472 and 1120 applied to my situation. It guided me through the foreign ownership reporting requirements that regular tax software completely misses. The document analysis tool flagged potential audit triggers in my draft forms before submission - apparently I was about to make a costly mistake with how I reported my foreign transactions that could have triggered an automatic penalty.

I actually tried taxr.ai after posting my previous question and I'm genuinely impressed. As someone who was initially skeptical, I found it really addressed the specific issues with foreign-owned LLCs that regular tax platforms miss completely. The system immediately identified that my LLC needed to complete Part IV of Form 5472 based on my ownership structure, which wasn't obvious from the IRS instructions. It also explained which transactions needed reporting, saving me from potentially missing reportable amounts that could trigger penalties. I still needed to mail the forms myself, but knowing they were prepared correctly gave me peace of mind. Definitely better than paying $650+ to a service or risking a $25,000 penalty for incorrect filing!

For anyone struggling to get answers from the IRS about these forms, I highly recommend Claimyr (https://claimyr.com). I wasted days trying to get through to the IRS international tax department about my foreign-owned LLC filing requirements. After using Claimyr's service, I got a callback from an actual IRS agent within 3 hours who confirmed exactly which parts of Form 5472 applied to my LLC structure and clarified the reporting thresholds for transactions with foreign owners. You can see how it works in this video: https://youtu.be/_kiP6q8DX5c The IRS agent even explained a special exception that applied to my situation that none of the online guides mentioned. Saved me both the expensive tax service and potential penalties.

I have to admit I was completely wrong about Claimyr. After my skeptical comment, I decided to try it myself since I had another foreign LLC tax question that needed answering. I was shocked when I actually got a callback connecting me to an IRS international tax specialist after about 2.5 hours (which is lightning fast for that department). The agent walked me through the exact reporting requirements for my LLC's foreign transactions on Form 5472. The best part was learning about a simplified filing procedure for certain types of foreign-owned single-member LLCs that I qualified for. This information wasn't on any website I checked. I've spent countless hours on hold with the IRS over the years, and this was definitely worth it for complex international tax questions that online resources don't adequately address.

One tip I haven't seen mentioned yet - if you're filing Form 5472 for a foreign-owned SMLLC, make sure you're also filing Form 1120 with "Foreign-owned U.S. Disregarded Entity" written across the top. This is a special requirement that trips up a lot of first-time filers. Also, you need to request an EIN even though single-member LLCs typically don't need one for tax purposes. Without an EIN, you can't properly file Form 5472. The penalty for late filing or incorrect filing is indeed $25,000, but there's also a $10,000 continuation penalty for each 30-day period it remains unfiled after notification from the IRS. This can add up FAST.

One warning from someone who's been through this - don't miss the reporting deadline! I filed my foreign-owned LLC's Form 5472 just 3 weeks late last year and got hit with the full $25,000 penalty. I tried appealing based on reasonable cause, but the IRS was incredibly strict. I'd recommend mailing it certified with return receipt requested at least 2-3 weeks before the deadline to ensure it arrives on time. The IRS isn't very forgiving with these international information returns.

This is incredibly helpful information! As someone dealing with this exact situation for the first time, I'm grateful for all the detailed responses here. One follow-up question - I've seen some conflicting information about whether a foreign-owned single-member LLC with NO activity during the tax year still needs to file Form 5472. My LLC was formed late in the year but had zero income, expenses, or transactions. Do I still need to file both forms even with zero activity? Also, for those who have filed these forms multiple times - is there a good system for keeping track of what needs to be reported on Form 5472 throughout the year? I want to make sure I don't miss any reportable transactions going forward. The penalty amounts mentioned here are definitely motivating me to get this right the first time!

As someone who just went through this process for my foreign-owned SMLLC, I wanted to add a few practical tips that might help: 1) **Double-check your mailing address** - Form 5472 and the pro forma Form 1120 need to go to a specific IRS processing center, not your local IRS office. The address depends on where your LLC is located, so make sure you're using the correct one from the Form 5472 instructions. 2) **Keep detailed records of your mailing** - I sent mine via USPS Priority Mail Express with tracking and signature confirmation. Cost about $30 but gave me peace of mind. The IRS processing centers can be slow to acknowledge receipt, so having proof of delivery is crucial. 3) **Consider filing an extension if you're cutting it close** - You can file Form 7004 to get an automatic 6-month extension for Form 1120 (which extends Form 5472 as well). This buys you time to get everything right rather than rushing and making mistakes. The learning curve is steep, but once you understand the requirements, it becomes more manageable. The key is not letting the complexity intimidate you into missing deadlines - those penalties are no joke!