Question 1

What is Form 5472?

Accepted Answer

Form 5472 is an IRS information return that reports transactions between a foreign owner and a related U.S. entity. For a foreign-owned single-member LLC, it is generally filed together with a Pro Forma 1120.

Question 2

Who usually needs this filing?

Accepted Answer

Many foreign-owned single-member U.S. LLCs that remain disregarded entities end up with a filing obligation because owner funding, owner draws, formation costs, or other owner-to-LLC transactions are common. If you are unsure whether your facts create a filing obligation, use the eligibility screener and consult a qualified tax professional for your specific situation.

Question 3

What does 'disregarded entity' mean?

Accepted Answer

It means the LLC is ignored as a separate entity for U.S. federal income tax purposes by default. The LLC can still have a Form 5472 reporting obligation even though it does not file a normal corporate income tax return unless it elected corporate tax treatment.

Question 4

Can I use this for a multi-member LLC?

Accepted Answer

No. simple5472 is built specifically for foreign-owned single-member LLCs that are treated as disregarded entities. Multi-member LLCs usually fall into different filing regimes and should work with a CPA.

Question 5

Can I use this if I elected to have my LLC taxed as a corporation?

Accepted Answer

No. If your LLC filed Form 8832 or Form 2553 to be taxed as a C corporation or S corporation, it is no longer in the simple disregarded-entity flow this tool supports.

Question 6

My country has a tax treaty with the U.S. Do I still need to file Form 5472?

Accepted Answer

Form 5472 is an information reporting requirement under IRC §6038A. Tax treaties may affect substantive tax obligations (such as withholding rates or taxability of certain income), but they do not eliminate the requirement to file Form 5472. The reporting obligation applies regardless of whether a treaty exists between the owner's country and the United States.

Question 7

What if the owner is a U.S. citizen, Green Card holder, or otherwise a U.S. person?

Accepted Answer

This tool is not for U.S. persons. If the owner is a U.S. citizen, Green Card holder, or meets the Substantial Presence Test, the foreign-owned disregarded-entity Form 5472 flow does not apply in the same way.

Question 8

What situations does simple5472 not support?

Accepted Answer

The screener blocks cases that usually need a CPA, such as U.S.-source income from work performed in the U.S., a U.S. office or employees, formal owner loans, related-party imports, royalty or interest payments, tiered ownership, ownership changes, dissolutions, and digital-asset activity. If your facts fall into one of those buckets, self-service filing is not the right tool.

Question 9

Can I file Form 5472 myself without a CPA?

Accepted Answer

Taxpayers are permitted to prepare and file their own information returns. simple5472 is self-service document preparation software — it does not provide professional judgment, legal advice, or representation before the IRS. Whether self-service filing is appropriate for your facts is a determination only you (or a qualified tax professional you consult) can make.

Question 10

What is Pro Forma 1120, and why is it required?

Accepted Answer

The Pro Forma 1120 is the companion return that goes with Form 5472 for foreign-owned disregarded LLCs. Form 5472 cannot be filed by itself in this context, so the Pro Forma 1120 acts as the required cover return and identifying form.

Question 11

How do I file with simple5472?

Accepted Answer

Start with the eligibility screener to confirm your LLC fits the self-service flow. Then enter your LLC details, foreign owner details, and owner-to-LLC transactions. At the end, you can either download the filing package and submit it yourself or choose the optional fax transmission service for a signed package.

Question 12

What information do I need before I start?

Accepted Answer

You should have your LLC's EIN, legal name, state and date of formation, address, the foreign owner's legal name and address, the owner's FTIN if available, and records of all owner-to-LLC transactions for the tax year. Depending on your facts, you may also need your year-end cash balance and the value of other LLC assets held on December 31.

Question 13

Do I need an EIN to file Form 5472?

Accepted Answer

Yes. Your U.S. LLC must have its own EIN to file Form 5472 and Pro Forma 1120. You cannot file these forms using only the owner's foreign tax number or personal identifying number.

Question 14

Do I need a U.S. SSN or ITIN to file?

Accepted Answer

Not necessarily. Most foreign owners do not need a U.S. SSN or ITIN solely for this filing. The LLC still needs its own EIN, and the owner can generally use an FTIN and/or an IRS reference ID instead of a U.S. personal tax number, subject to the form instructions and the owner's actual facts.

Question 15

What if my country does not issue an FTIN?

Accepted Answer

You can leave the FTIN blank only if your country genuinely does not issue tax identification numbers. If your country does issue them, you should enter the owner's FTIN so the filing package is as complete as possible.

Question 16

Does filing Form 5472 mean my LLC has to pay U.S. income tax?

Accepted Answer

No. Form 5472 is an information return. Filing it does not by itself create U.S. income tax liability, although separate facts, such as U.S.-source income or a U.S. trade or business, can create additional tax issues outside this product's scope.

Question 17

Does simple5472 cover state filings too?

Accepted Answer

No. simple5472 is for the federal Form 5472 and Pro Forma 1120 package only. State annual reports, franchise taxes, and other state-level obligations are separate.

Question 18

I own two LLCs. Can I use simple5472 for both?

Accepted Answer

Yes, but each LLC needs its own separate filing. From the dashboard, start a separate filing for each entity and tax year. The IRS treats each LLC as its own reporting entity.

Question 19

What are reportable transactions for Form 5472?

Accepted Answer

Reportable transactions are money flows between the LLC and its foreign owner or other related party, such as owner contributions, owner draws, and formation costs the owner paid on the LLC's behalf. Payments to or from unrelated third parties, like clients, ordinary vendors, software subscriptions, and ad platforms, are generally not reportable on Form 5472.

Question 20

Do client revenue or ordinary vendor payments go on these forms?

Accepted Answer

No. Revenue from customers and ordinary payments to unrelated vendors do not belong on Form 5472. This filing is about related-party transactions, not general business income and expense accounting.

Question 21

Does my client revenue go on the Pro Forma 1120?

Accepted Answer

No. The Pro Forma 1120 in this context is a companion filing, not a normal corporate income tax return for your customer revenue. Putting ordinary revenue there would misstate the nature of the filing.

Question 22

What if my LLC had 'zero activity' or $0 in transactions this year?

Accepted Answer

Many owners say 'zero activity' even when there were still reportable transactions, such as formation costs, owner funding, or owner withdrawals. If you truly had no reportable transactions at all, the filing analysis becomes fact-specific, so you should confirm your obligations with a qualified tax professional.

Question 23

I formed my LLC late in the year and did no business. Do I still have to file for that year?

Accepted Answer

Often there is still a filing obligation because formation costs, initial funding, or other owner-to-LLC transactions can make the short year reportable. If you believe there were truly no reportable transactions at all, confirm that conclusion with a qualified tax professional.

Question 24

My transactions were in a foreign currency. Do I need to convert them to USD first?

Accepted Answer

No. Enter the original amount and currency, and simple5472 converts it to USD for you using ECB reference rates tied to the transaction date. If the date falls on a weekend or holiday, the system uses the nearest prior business-day rate.

Question 25

When is Form 5472 due?

Accepted Answer

For most calendar-year foreign-owned LLCs, Form 5472 and the attached Pro Forma 1120 are due on April 15. If a valid Form 7004 extension was filed on time, the deadline generally moves to October 15.

Question 26

Do you file Form 7004 for extensions?

Accepted Answer

No. simple5472 does not file the extension request itself. If you want the October 15 extended deadline, Form 7004 must be filed separately and on time. Our wizard asks whether you filed one because that changes whether the return is treated as late.

Question 27

What happens if April 15 already passed?

Accepted Answer

If you timely filed Form 7004, you may still be on time until October 15. If you did not extend, the return may be late and you should review your situation promptly. For late filers whose situation matches our automated-filing criteria, simple5472 can generate a Late Filing Package that includes a Reasonable Cause Statement you author from your factual selections. Whether the IRS grants any penalty consideration is determined solely by the IRS on a case-by-case basis.

Question 28

Why is there a $25,000 penalty?

Accepted Answer

Under IRC §6038A(d), the IRS may assess a $25,000 penalty for failure to file Form 5472, filing late, or filing with substantially incomplete or inaccurate information. That penalty can apply per form, per year, which is why filing on time and with complete data matters. If the failure continues after an IRS notice, additional $25,000 penalties may accrue for each 30-day period beyond 90 days from the notice.

Question 29

What happens if I do not file Form 5472?

Accepted Answer

Under IRC §6038A(d)(1), the IRS may assess a $25,000 penalty per form, per year for failure to file, late filing, or filing with substantially incomplete or inaccurate information. Under IRC §6038A(d)(2), if the failure continues for more than 90 days after the IRS mails a notice of failure, an additional $25,000 penalty may be assessed for each 30-day period (or fraction thereof) during which the failure continues. There is no statutory cap on the continuing penalty.

Question 30

Is there a statute of limitations on unfiled Form 5472?

Accepted Answer

Under IRC §6501(c)(8), the statute of limitations on assessment does not begin to run until the required information return is filed. This means that if Form 5472 was never filed, the IRS may assess penalties at any time — there is no expiration. The standard 3-year assessment period begins only after the return is actually filed.

Question 31

Can I file for a previous tax year?

Accepted Answer

Yes. You can start separate filings for prior tax years going back to 2017, which is the first year this requirement applied to foreign-owned single-member LLCs. Mail pricing: $179 for 1 year, $329 for 2 years, $499 flat for 3 or more years. Fax adds $50 to every tier: $229 (1 year), $379 (2 years), $549 flat (3+ years).

Question 32

What is the Late Filing Package?

Accepted Answer

For eligible prior-year or missed filings, mail pricing is $179 for 1 year, $329 for 2 years, and $499 flat for 3 or more years. Fax delivery adds $50 to every tier: $229, $379, $549. A single-year package includes 1 completed Form 5472, 1 Pro Forma Form 1120, 1 Part V transaction attachment, 1 cover letter, and 1 Reasonable Cause Statement. A multi-year package for the same LLC includes 1 shared cover letter, 1 shared Reasonable Cause Statement covering all included years, and for each included year: 1 completed Form 5472, 1 Pro Forma Form 1120, and 1 Part V transaction attachment. The Reasonable Cause Statement is one you author from your factual selections — you review, edit if necessary, and approve the final text yourself. Whether the IRS grants any penalty consideration, relief, or abatement is determined solely by the IRS on a case-by-case basis. simple5472 does not evaluate the merits of your explanation or guarantee any outcome.

Question 33

What exactly do I get for $499?

Accepted Answer

The $499 flat rate covers three or more delinquent years for the same LLC (mail delivery); fax delivery for 3+ years is $549 flat. Your combined package includes: (1) 1 shared cover letter for the submission, (2) 1 shared Reasonable Cause Statement covering all included years, and then for each included delinquent year: (3) 1 completed Form 5472, (4) 1 Pro Forma Form 1120, and (5) 1 Part V transaction attachment. Mail delivery: you mail the printed bundle to IRS Ogden. Fax delivery: you sign in the browser and we transmit the bundle to the IRS fax line.

Question 34

Can I fax a late filing?

Accepted Answer

Yes — every late-filing tier supports both mail and fax delivery. Mail: $179 (1 year), $329 (2 years), $499 flat (3+ years). Fax (we transmit it for you, +$50 per tier): $229, $379, $549. The IRS Delinquent International Information Return Submission Procedures instruct filers to submit through normal filing procedures with a reasonable cause statement attached. Multi-year packages are delivered as a single fax transmission to the IRS Ogden line, with sequential split as a fallback if the carrier reports delivery failure.

Question 35

What if the IRS already contacted me about missing filings?

Accepted Answer

Our delinquent self-service flow is not intended for that situation. If the IRS has already contacted you about the missing years, you should work with a qualified tax professional rather than rely on the Late Filing Package workflow.

Question 36

What if I knowingly filed false information using simple5472?

Accepted Answer

simple5472 is a document preparation tool that relies entirely on the information you provide. Filing false, fraudulent, or materially misleading information with the IRS may expose you to civil penalties under IRC §6662 or §6663, and potentially criminal penalties under IRC §7206 or 18 U.S.C. §1001. simple5472 does not verify, audit, or vouch for the accuracy of your information. If you have any doubt about the accuracy of information you are about to file, consult a qualified tax professional before proceeding.

Question 37

What are the IRS Delinquent International Information Return Submission Procedures?

Accepted Answer

The IRS has published procedures that allow taxpayers who have not been contacted by the IRS to submit late international information returns — including Form 5472 — with a reasonable cause statement attached. Under these procedures, the IRS may not assert penalties if reasonable cause is established, though that determination is made solely by the IRS on a case-by-case basis. Other IRS programs may also exist for different situations. Eligibility and applicability depend on individual circumstances — consult a licensed tax professional for guidance specific to your facts.

Question 38

Can I correct a return I already filed?

Accepted Answer

Yes. The product supports corrections, but the correct path depends on timing. A superseding return replaces a filed return before the applicable deadline, while an amended return corrects a previously filed return after the deadline has passed.

Question 39

What if the IRS does not accept my Reasonable Cause Statement?

Accepted Answer

The IRS determines whether reasonable cause exists on a case-by-case basis, and acceptance is never guaranteed. If the IRS assesses a penalty despite your submission, you may have options, including: (1) responding in writing to dispute the penalty assessment within the timeframe stated on the notice, (2) submitting a formal penalty abatement request, (3) requesting review through the IRS Independent Office of Appeals, or (4) consulting a tax attorney or enrolled agent to evaluate your specific options. simple5472 does not provide representation before the IRS, does not advise on responding to IRS notices, and is not responsible for any IRS outcome. If you receive an IRS notice after filing, consult a qualified tax professional promptly and do not ignore the notice.

Question 40

What counts as 'IRS contact' for the eligibility gate?

Accepted Answer

The Delinquent International Information Return Submission Procedures are not available if the IRS has already contacted you about the specific unfiled returns. 'Contact' generally includes any IRS letter, notice, or correspondence that specifically addresses the unfiled Form 5472 or Pro Forma 1120 for the years you are filing — for example, a CP15 notice, Letter 3800, or any other written IRS communication mentioning those specific returns. A general IRS notice that does not reference the specific unfiled returns may be a different matter, but if you have received any IRS contact related to your international information return compliance obligations, consult a qualified tax professional before relying on this tool's late-filing procedures.

Question 41

Do you e-file for me?

Accepted Answer

No. This filing is not submitted through ordinary IRS e-file channels. You either download the completed package and mail or fax it yourself, or authorize simple5472 to fax your signed PDF package as a convenience transmission service.

Question 42

If I buy the fax transmission option, are you responsible for my filing?

Accepted Answer

No. You remain responsible for the truth, accuracy, completeness, timeliness, and any IRS follow-up. If you use the fax option, you are authorizing simple5472 only to transmit the signed package you reviewed and approved.

Question 43

What is the fax confirmation?

Accepted Answer

After transmission, you receive a fax reference or confirmation by email. It is evidence that the package was transmitted to the IRS fax line, not an IRS acceptance notice and not a guarantee of processing.

Question 44

What if the fax fails?

Accepted Answer

We retry automatically up to 3 times with backoff. If the carrier still reports a failure — or the package is large enough that a single transmission would be unreliable — the system splits the package into sequential parts (each labeled "Part X of Y" and tagged with a shared transmission ID) so the IRS can process them as one submission. If every attempt fails, we email you the signed PDF so you can fax or mail it yourself before the deadline, and you can contact support about the transmission-service portion of the charge.

Question 45

How does a multi-year fax bundle get delivered?

Accepted Answer

If you purchase fax delivery for a multi-year Late Filing Package, the bundled PDF — one shared cover letter, one shared Reasonable Cause Statement, and per-year Form 1120 + Form 5472 + Part V attachments — is transmitted to the IRS Ogden fax line as a single fax. Every page in the bundle shares the same EIN, the same case reference (transmission ID), and the same fax confirmation number, so the IRS treats it as one submission covering all included years. You only sign once in the browser. If the single transmission fails, the carrier-side retry-then-split fallback applies and every part still shares the bundle's transmission ID.

Question 46

Can I sign the package in my browser?

Accepted Answer

Yes. The app supports drawn signatures so you can sign inside the browser instead of printing just to sign, then use the signed PDF for mailing or fax transmission.

Question 47

Will the IRS send me a receipt or acceptance notice?

Accepted Answer

Usually no. Form 5472 with a Pro Forma 1120 is an information return, and the IRS does not typically issue a standard acceptance notice. Keep your fax confirmation or certified-mail proof as your evidence of timely submission.

Question 48

Is my data safe, and how long do you keep it?

Accepted Answer

We use encryption in transit and at rest, and Stripe handles payment processing, so simple5472 does not store full payment card numbers or CVVs on its own systems. Under our Privacy Policy, we generally retain filing data for 6 years after account closure or your most recent filing, whichever is later, subject to longer retention where law or operational needs require it.

Question 49

When do I pay?

Accepted Answer

You can complete the screener and fill out the filing details first. Payment is required only when your documents are ready to download or when you choose a paid transmission option.

Question 50

What is your refund policy?

Accepted Answer

Because the service delivers a digital filing package, fees are generally non-refundable once your documents have been generated and delivered. If you experience a confirmed technical defect on our end that prevented document delivery (not caused by user error or third-party outage), you may request a refund within 30 days by contacting support@simple5472.com.

Question 51

How long should I keep records related to my filing?

Accepted Answer

The IRS requires that records supporting Form 5472 be maintained for at least the applicable statute of limitations period. Under IRC §6501(c)(8), the statute of limitations does not begin to run until the information return is filed, so records for unfiled years should be retained indefinitely until the return is actually filed, and then for at least 3 years after the filing date. Many practitioners recommend retaining records for 7 years as a practical safeguard. simple5472 retains filing data as described in our Privacy Policy, but you should independently maintain your own copies of all filings, transmission confirmations, and supporting records.

Question 52

Does simple5472 sign my return as a paid preparer?

Accepted Answer

No. The Paid Preparer Use Only section of your Pro Forma 1120 is left blank. No preparer name, signature, PTIN, or firm information appears on any document generated by the Service. You are the filer of record.

Question 53

Is simple5472 a tax preparer?

Accepted Answer

No. simple5472 is self-service document preparation software. It is not a law firm, CPA firm, enrolled agent, or tax return preparer as defined in IRC §7701(a)(36). We do not hold or require a Preparer Tax Identification Number (PTIN). The Service formats and assembles IRS forms based solely on the data you enter — it does not review, audit, or verify your information.

Question 54

Who is responsible for the accuracy of my filing?

Accepted Answer

You are. Every field on your generated forms was entered or confirmed by you. simple5472 does not alter the substantive content of your data — it may apply standard IRS-required formatting (such as uppercasing state codes, formatting EINs, and converting currencies to USD), but these are mechanical steps, not substantive changes. You must review all documents before signing or authorizing transmission. If any information you provide is inaccurate, incomplete, or misleading, the resulting forms will reflect those errors.

Question 55

How do I know simple5472 did not change my data?

Accepted Answer

At the moment you check out, the Service captures an immutable, timestamped record of the facts you entered and a point-in-time snapshot of your filing data. This record is designed so that it cannot be modified or deleted through the Service's application layer. After payment, you can view and print your Data Provenance Record from the dashboard. It shows every field you entered at checkout time, so you can compare it against the generated filing documents and confirm no substantive change was made. The Service may apply mechanical formatting required by IRS forms (e.g., uppercasing state codes, formatting EINs, converting currencies), and those transformations are listed on the record.

Question 56

What is the Data Provenance Record?

Accepted Answer

The Data Provenance Record is a software-generated business record available from your dashboard after payment. It shows the exact data you entered into simple5472 at checkout time, the timestamp of the record, and a list of every mechanical formatting step the Service may apply. It is not a government document, a notarized instrument, an independently verified attestation, or a legal opinion. It does not certify the accuracy or legal sufficiency of your data — that remains your responsibility. Its purpose is to give both you and simple5472 a shared, contemporaneous record of what you entered, so there is no ambiguity about the source of the information on your filing.

Question 57

Does simple5472 offer a computational accuracy guarantee?

Accepted Answer

Yes. We guarantee that mathematical calculations and currency conversions performed by the Service are computationally accurate based on the data you provide. If you find a computational error caused by the Service (not by incorrect input), report it within 30 days and we will provide corrected documents or refund your fee. See Terms of Service §7A for full details.

Question 58

What does ‘self-prepared’ mean on the 1120?

Accepted Answer

It means no third-party paid preparer signed the return. You prepared the return using software, reviewed and approved the output, and you are the responsible filer. This is the same model as using any consumer tax software where you enter your own data and file the result.

Question 59

What is the difference between document preparation software and a tax preparer?

Accepted Answer

A tax return preparer, as defined in IRC §7701(a)(36), is any person who prepares or employs others to prepare all or a substantial portion of a tax return for compensation. Paid preparers must hold a Preparer Tax Identification Number (PTIN) and comply with IRS Circular 230. Document preparation software is a tool the user operates to prepare their own return — the user enters the data, makes the substantive decisions, and is the filer of record. simple5472 is document preparation software. You enter your own information, classify your own transactions, and review and approve all outputs. We organize your data into the IRS-published form format. We do not hold a PTIN and are not a tax preparer, tax advisor, or law firm. If you need tax advice or are unsure about your filing obligations, consult a licensed CPA or tax attorney.

Frequently Asked Questions

Eligibility & Scope

Filing Basics

Transactions & Records

Deadlines, Extensions & Penalties

Late, Prior-Year & Corrective Filings

Submission, Fax & Proof

Billing, Privacy & Support

Preparer Status & Data Integrity