What is the form 5472?
The Form 5472 is used to provide information about transactions of a foreign or foreign-owned corporation in the United States.
Who files the form 5472?
The company must be both a reporting corporation and conduct reportable transactions to require filing the form 5472.
Reporting corporation
A 25% or more foreign-owned US corporation or
A foreign corporation engaged in a trade or business in the United States.
Reportable transaction
Any type of transaction (e.g., sales, rents), which money was the sole consideration.
How to file the form 5472
File Form 5472 as an attachment to the reporting corporation's income tax return by the due date (including extensions) of that return.
Penalties
A penalty of $25,000 is assessed on any corporation that fails to file Form 5472 on time and correctly. If the failure continues for more than 90 days, an additional penalty of $25,000 will apply for every additional 30 days the company fails to file.
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Sources
IRS
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