Form 5472 and Pro Forma 1120 for Foreign-Owned LLCs
Prepare the pro forma Form 1120 with a Form 5472 for each related party for a U.S. single-member LLC wholly owned by one foreign person, for tax years 2017 through 2025. Test each year for reportable transactions, catch up on missed years, and produce one fax-ready filing set.
Foreign-owned single-member LLCs
A U.S. disregarded entity wholly owned by one foreign person, for each year with a reportable transaction with a related party.
April 15
The Form 1120 due date: April 15 for a calendar-year LLC. Form 7004 extends the time to file by 6 months.
$25,000 per failure
Under section 6038A(d), plus $25,000 for each 30 days the failure continues after 90 days from an IRS notice.
What the Software Prepares
The return
- The pro forma Form 1120, marked “Foreign-owned U.S. DE”, with the identifying information the instructions require
- A Form 5472 for each related party with reportable transactions
- Part IV amounts and the Part V statement for contributions, distributions and other transactions
- The Part VI statement where it applies
- A search of the IRS business activity codes
Around the return
- A year test for reportable transactions; a year with none is documented, not filed
- Multi-year catch-up: copy a return to other years, then combine approved years into one filing set
- Form 7004 extension, printable, free with every return
- An optional reasonable-cause statement for late years
- Validation, reviewer approval, and an archived filing package, as for our other forms
Tax years 2017 through 2025 are supported. Part VIII (cost sharing arrangements) and client e-signatures are not. Returns are filed by fax or mail and signed by hand.
Who Files Form 5472 With a Pro Forma 1120
Since 2017, a U.S. disregarded entity wholly owned by one foreign person is treated as a corporation for section 6038A reporting. It files a pro forma Form 1120 with Form 5472 for any tax year in which it had a reportable transaction with a related party, including:
- contributions from the owner and distributions to the owner;
- amounts the owner paid for the LLC, such as formation, registered agent or state fees; and
- loans, sales, rents, services and other transactions with the owner or other related parties.
For the full rules, see our Form 5472 and pro forma 1120 guide.
Catching Up on Missed Years
Many single-member LLC owners learn about Form 5472 years after formation. The software tests each year for reportable transactions, so years with none are documented without a filing. Copy a completed return to the other years, adjust each year’s transactions, approve them, and combine the approved years into one fax-ready filing set, with an optional reasonable-cause statement. See catching up on missed Form 5472 filings.
Filing by Fax or Mail
The pro forma Form 1120 with Form 5472 cannot be e-filed. The software prepares it for fax or mail to the IRS, with the fax number, mailing address and cover sheet in the checklist. It is due on the Form 1120 due date, April 15 for a calendar-year LLC, and Form 7004 extends the time to file by 6 months.
Unfiled years can stay open for assessment indefinitely under section 6501(c)(8), which is why catching up matters even when no income tax is due.
Frequently Asked Questions
Who must file Form 5472 with a pro forma Form 1120?
A U.S. disregarded entity, such as a single-member LLC, wholly owned by one foreign person files for each tax year beginning in 2017 or later in which it had a reportable transaction with a related party. Contributions, distributions and amounts the owner paid for the LLC all count.
When is the pro forma Form 1120 with Form 5472 due?
On the Form 1120 due date: April 15 for a calendar-year LLC. Form 7004 extends the time to file by 6 months.
Can it be e-filed?
No. The pro forma Form 1120 with Form 5472 for a foreign-owned disregarded entity is filed by fax or mail. Agena prepares a fax-ready filing set with the checklist.
What is the penalty for not filing Form 5472?
$25,000 per failure under section 6038A(d), plus $25,000 for each 30 days the failure continues after 90 days from an IRS notice.
Is Agena Form 5472 available now?
Yes. Open the Form 5472 workspace from your Agena Software account. It is $99 per LLC and tax year, including the Form 7004 extension, or included in a plan; documenting a year with no reportable transactions is free.
Prepare Form 5472 with Agena Software
$99 per foreign-owned LLC and tax year, including the Form 7004 extension.
Counts as one return on the Professional plan; included in the Unlimited plan.
Drafting, validation, a sample preview and Form 7004 are free, and so is documenting a year with no reportable transactions. You pay when you approve the return and create its filing package.