⚠ $25,000 Penalty If Missed — Even With Zero Income

Form 5472 & Pro Forma 1120 Filing

Every foreign-owned, single-member US LLC must file Form 5472 and a Pro Forma 1120 with the IRS every year — regardless of whether the LLC had any income, activity, or US tax owed. This is our most-praised service by real clients, and the one most commonly missed by DIY founders who assume "no income means nothing to file."

Why This Matters More Than Most Founders Realize

The penalty for failing to file Form 5472 when required starts at $25,000 — this is an information-reporting penalty, completely separate from any tax liability. It applies even if your LLC made $0 in revenue. It is the single highest-stakes compliance item for foreign-owned LLCs.

What's Actually Involved

1

Form 5472 — Reporting Transactions With Your LLC

An information return reporting transactions between your LLC and its foreign owner (you) — capital contributions, distributions, and any payments between you and the LLC.

2

Pro Forma Form 1120 — The Required Cover Sheet

Used as a transmittal for Form 5472. For most non-resident single-member LLCs with no US trade or business, the income sections are left blank — it exists solely to attach Form 5472 to.

3

Reasonable Cause Letters (When Needed)

If a prior year's filing was late or missed, we prepare a Reasonable Cause Statement explaining the circumstances to the IRS — this is often the difference between a real $25,000 penalty and a waived one.

4

Direct IRS Fax Submission

We file by fax directly to the correct IRS office and provide you with fax confirmation as proof of timely filing.

Real Client Results

Don't Risk the $25,000 Penalty

Whether this is your first filing or you're catching up on a missed year, we'll handle it correctly.