Reporting corporations must file Form 5472 to provide required information for reportable transactions with foreign or domestic related parties—but exceptions may apply.
What is Form 5472?
Form 5472 is an Internal Revenue Service (IRS) form used to provide information about reportable transactions that occur during the tax year of a reporting corporation with a foreign or domestic related party. It is issued under sections 6038A and 6038C of the IRS Code and must be filed by the due date (including extensions) of the reporting corporation’s taxes. Generally, all reporting corporations must file Form 5472, but there are some exceptions, such as if the reporting corporation is part of a consolidated group filing a U.S. consolidated Form 5472, or if the related corporation qualifies as a foreign sales corporation and files Form 1120-FSC. Penalties may be assessed if the form is not filed correctly.
IRS Form 5472 – Who Needs to Fill It Out?
Generally, a reporting corporation must file Form 5472 if it had a reportable transaction with a foreign or domestic related party. Exceptions from filing are provided, such as if it had no reportable transactions of the types listed within the form, a U.S. person that controls the foreign related corporation files Form 5471 for the tax year to report information, or it is a foreign corporation with no permanent establishment in the United States. The form is due by the due date (including extensions) of the reporting corporation’s income tax return and a penalty of $25,000 will be assessed for failure to file or maintain records.
Step-by-Step: Form 5472 Instructions For Filling Out the Document
Form 5472 must be filed by the due date (including extensions) of the reporting corporation’s income tax return, or by the due date of a pro forma Form 1120 for foreign-owned U.S. DEs. The reporting corporation must provide information required for all reportable transactions listed in Parts IV, V, and VI. Exceptions for filing may be available depending on the circumstances; however, foreign-owned U.S. DEs are not eligible for any exceptions. When filing, the reporting corporation must also include a schedule of all related parties along with the related party’s name, address, and EIN. Foreign-owned U.S. DEs should use the dedicated fax number or mailing address provided, rather than the regular filing addresses. Lastly, the reporting corporation must ensure it maintains all records necessary to establish the correctness of their federal income tax return.
Below, we present a table that will help you understand how to fill out Form 5472.
|Information Required for Form 5472||Details|
|Filing Deadline||When Form 5472 must be filed|
|Reportable Transactions||Transactions that must be reported|
|Related Parties||Information on related parties|
|Record Maintenance||Requirements for maintaining records|
Do You Need to File Form 5472 Each Year?
Generally, a reporting corporation must file Form 5472 if it had a reportable transaction with a foreign or domestic related party, unless they qualify for one of the exceptions. If a reporting corporation is a member of an affiliated group filing a consolidated income tax return, Regulations section 1.6038A-2 may be satisfied by filing a U.S. consolidated Form 5472. Foreign-owned U.S. DEs must file a pro forma Form 1120 with Form 5472 attached. A penalty of $25,000 will be assessed if Form 5472 is not filed when due. For more information, see the instructions for Form 5472.
Download the official IRS Form 5472 PDF
On the official IRS website, you will find a link to download Form 5472. However, to make it easier for you, we are providing the link in our article, which comes directly from the official irs.gov website! Click to download: Form 5472