Form 5472: What Owners of a US LLC Must Report to the IRS

Many owners of a US LLC based in Germany or Austria assume that their company does not have to file anything in the United States as long as no tax arises there. In an individual case there may indeed be no US tax, but there is a reporting obligation all the same. If the LLC belongs to a single foreign person, the IRS requires Form 5472, together with a simplified corporate income tax return. The form itself is manageable; the rules behind it are not. This article explains what owners must report to the IRS every year, who is required to file, which transactions belong in the report, when it is due and how it has to reach the IRS.

Who must file Form 5472

In US tax law, an LLC with only one member is generally treated as a “disregarded entity”, meaning it is not regarded as a separate taxpayer. For the reporting obligation under Section 6038A of the Internal Revenue Code, however, the law makes an exception: such a company, if owned by a foreign person (“foreign-owned U.S. DE”), is treated as a domestic corporation for these purposes (Treasury Regulation § 1.6038A-1). The rule applies to tax years beginning on or after 1 January 2017 and ending on or after 13 December 2017.

Every single-member LLC whose owner is neither a US citizen nor tax resident in the United States must therefore file Form 5472 as soon as there were reportable transactions with that owner or other related parties during the year. Whether the owner lives in Germany, Austria or the Emirates makes no difference. A separate form must be submitted for each related party, and anyone holding several LLCs reports separately for each company.

Reportable transactions: what must be reported

The focus is on money flowing between the LLC and its owner. Part IV of the form covers the classic business transactions, each split into amounts received and amounts paid: sales of goods, rents and royalties, compensation for services, commissions, and loans and interest.

For an LLC with a foreign owner, Part V is added, and this is why practically every such company has to report. Amounts paid or received in connection with the formation, dissolution, acquisition or disposal of the company must also be reported, expressly including contributions and distributions (Treasury Regulation § 1.6038A-2(b)(3)(xi)). If you paid for the formation out of your own pocket, transferred money to the LLC’s account or withdrew profits, the LLC has reportable transactions. They are described on a separate statement attached to the form.

An LLC with a foreign owner is exempt from the reporting obligation only if no transaction under Part IV, V or VI took place during the entire year. Several other exceptions listed in the IRS instructions expressly do not apply to it.

The pro forma Form 1120 as carrier return

Form 5472 is not filed on its own but attached to a carrier return: Form 1120, the US corporate income tax return. As the LLC itself does not report any corporation tax, this is a pro forma return: only the company’s name and address and items B and E on page 1 need to be completed, including the Employer Identification Number (EIN). The notation “Foreign-owned U.S. DE” must be written across the top of the form. The tax year is the owner’s tax year for US purposes or, if the owner has none, the calendar year.

Owner information: Reference ID instead of a US tax number

Part II asks for information about the owner: name and address, the countries in which the owner principally conducts business, their citizenship and the country in which they file an income tax return as a resident. The owner does not need a US tax number for this. If the owner has neither a Social Security Number nor an ITIN, the company enters a self-assigned Reference ID instead of a US tax number: a maximum of 50 alphanumeric characters, without special characters or spaces. It must remain unchanged in all subsequent years.

In addition, the company must state the owner’s foreign tax identification number (FTIN), if one exists – in Germany, that is the tax identification number (Steuer-Identifikationsnummer). The question about countries of business contains a trap: the IRS expressly does not accept “worldwide”. The actual countries must be listed.

Deadline, extension and filing with the IRS

The deadline follows that of the pro forma return: it is due on the 15th day of the fourth month after the end of the tax year. A six-month extension is available with Form 7004; this application, too, must bear the notation “Foreign-owned U.S. DE” and must be submitted before the original deadline expires.

Special rules apply to filing. An LLC with a foreign owner cannot submit Form 5472 electronically. The only permitted methods are fax to +1 855-887-7737 or post to the IRS in Ogden, Utah (1973 Rulon White Blvd, M/S 6112, Attn: PIN Unit, Ogden, UT 84201). The usual addresses for Form 1120 and Form 7004 must not be used. Keep the fax transmission report or proof of posting.

Penalties and statute of limitations

The penalties are steep. Anyone who fails to file Form 5472, or files it late or incomplete, risks a penalty of $25,000 per form and tax year. If the filing is still outstanding more than 90 days after the IRS has sent a notice, a further $25,000 is added for each 30-day period or part thereof (26 U.S.C. § 6038A(d)). The same penalty applies if the required records are missing. If the company can show in writing that the failure was due to “reasonable cause”, the penalty may be waived.

Less well known is the effect on the statute of limitations: as long as the filing is missing, the period for assessing the taxes concerned cannot expire. It ends no earlier than three years after the IRS has received the information (26 U.S.C. § 6501(c)(8)).

Keeping records properly

Keeping your records properly will save you a great deal of work if the IRS ever makes an enquiry. The company must maintain books and records that support its information, in particular on its transactions with the owner (Treasury Regulation § 1.6038A-3). The records must generally be kept in the United States. Alternatively, it is sufficient to produce them to the IRS within 60 days of a request and, if asked, to provide an English translation within 30 days. They must be kept for at least as long as the tax concerned can still be assessed. In practice, a separate business account for the LLC through which all payments run has proved its worth: it makes the filing simpler and the records easy to follow.

Checklist for the annual filing

This checklist sums up what needs to be done for the annual filing:

• Compile all payments between you and the LLC during the tax year: contributions, distributions, loans and formation costs paid out of your own pocket.
• Have the LLC’s EIN and your German tax identification number or Austrian tax number to hand.
• Choose a Reference ID and keep it permanently.
• Complete the pro forma 1120 with the name, address and items B and E, and mark it “Foreign-owned U.S. DE”.
• Attach Form 5472 and describe the Part V transactions on a separate statement.
• Send everything by fax or post to Ogden by 15 April at the latest, and keep the proof.
• If time runs short, file Form 7004 by 15 April.

Incidentally, filing in the US does not change where the LLC’s profits are taxed. Why your place of residence and the place of management are the decisive factors here is explained in the article “Forming a Company Abroad: Seven Myths Every Founder Should Know”. Whether an LLC is the right fit for your plans at all is shown on our country page for the US LLC.

Frequently asked questions about Form 5472

Three questions about Form 5472 that we are frequently asked in practice:

This article is for general information only and does not replace tax or legal advice. Last reviewed: October 2026.