"We first selected Gary Bode because of his familiarity with a creative financing scheme for our new small business. During our time with Gary, his insights have helped us better structure our small businesses, save money, and learn to be better small business managers. When it comes to small business accounting, a little hand-holding goes a long way."—Justin and Joelle LeBlancHaving trouble with IRS tax Form 1120 or Form 5472? Consider calling us for a free phone consult at (910) 399-2705.
As a CPA tax preparer for C Corporations, I run into Form 5472, Information Return of a 25% Foreign-Owned U.S. Corporation or a Foreign Corporation Engaged in a U.S. Trade or Business, while dealing with Form 1120, US Corporation Tax Return. My virtual office allows me to specialize in foreign corporations and American expatriate tax issues. Here’s the FAQs on Form 5472.
Does IRS tax Form 5472 require ID numbers for the foreign person?
Yes, the foreign person needs a reference ID number.
Can I e-file Form 5472?
Yes, just e-file it with your C Corporation’s Form 1120, US Corporation Tax Return.
Can I prepare Form 5472 myself?
Sure. The IRS estimates Form 5472 takes over 24 hours a year to prepare - ouch! Plus it’s complicated. Preparing it yourself implies you’re preparing the C Corporation’s tax Form 1120 too. While I encourage self tax preparation when appropriate, Form 1120 and Form 5472 deserve CPA attention.
What triggers Form 5472 on Form 1120? US Corporation Tax Return?
Lines 7 of Schedule K on page three of Form 1120, US Corporation Tax Return. Schedule G is required as well.
What’s the penalty for late filing of IRS tax Form 5472?
$10,000. The IRS now focuses on foreign transactions, so penalty abatement is less likely.
What help is available for Form 5472?
- IRS instructions.
- Tax software. But some programs don’t handle Form 5472.
I’m a virtual CPA that deals with US Corporation Tax Returns and Form 5472. Note I handle IRS tax Form 5471 as well. (910) 399-2705.
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