Calculator
Form 5472 penalty and filing-risk estimator
A foreign-owned single-member LLC that misses Form 5472 faces a $25,000 penalty per form, per year, before any notice from the IRS. Enter how long the form has gone unfiled and whether the IRS has already sent a notice to see a risk range. This is a planning estimate, not tax advice.
1 to 6 years.
Each one carries its own $25,000 exposure.
$25,000
Base penalty of $25,000 per Form 5472 per year, per reporting entity ($25,000 for 1 year across 1 entity). The continuation penalty has not started: that only begins once the IRS has mailed a notice and more than 90 days pass without a response.
A foreign-owned single-member LLC files this as a pro forma Form 1120 with Form 5472 attached (IRC 6038A), even though it owes no income tax of its own.
Risk estimate, not tax advice. Relief such as reasonable-cause statements is decided by the IRS, and returns are prepared for and filed by a credentialed signer.
Questions
Form 5472 penalty and filing-risk estimator questions
Who has to file Form 5472?
A US corporation that is at least 25% foreign-owned, or a foreign-owned US disregarded entity such as a single-member LLC, generally must file Form 5472 along with a pro forma Form 1120 for each year it has a reportable transaction with a related party.
What is the penalty for filing Form 5472 late or not at all?
The IRS assesses a $25,000 penalty for each required Form 5472 that is not filed correctly and on time. If the failure continues more than 90 days after the IRS mails a notice, an additional $25,000 applies for each related party for every 30-day period, or part of one, that the failure continues.
Can the penalty be reduced or removed?
The IRS can grant relief such as reasonable cause, but only the IRS decides that, and only after a written response is filed explaining the facts. This tool estimates exposure. It does not determine whether relief applies to your situation.
Does a disregarded entity, like a single-member LLC, really need to file a corporate return?
Yes. A foreign-owned single-member LLC treated as disregarded for tax purposes still has to file a pro forma Form 1120 with Form 5472 attached, even though it has no income tax liability of its own.
How is Form 5472 filed if the entity has no EIN-linked e-file setup?
Foreign-owned disregarded entities filing only a pro forma Form 1120 with Form 5472 typically file on paper rather than through standard e-file. Check the current instructions on the form for exactly where to send it.
Does this tool file anything with the IRS?
No. It only estimates penalty exposure from what you enter. Nothing typed here is filed or sent to the IRS, and results are not saved unless you choose to send them to us through the form.
Sources
- IRS, Instructions for Form 5472 (penalties under IRC 6038A and 6038C) (checked 2026-09-29)
Where to go next
- PricingPublished monthly bookkeeping plans for US businesses, from solo LLCs to multi-entity operators and accounting firms buying extra capacity.
- Books, reconciled every weekBookkeepingMonthly bookkeeping in QuickBooks Online, Xero or the platform you already run: every transaction sorted into categories, every bank and card account reconciled, and a clean set of reports each month.
- GuidesBookkeeping, tax and finance guidesPlain-language guides to bookkeeping, tax preparation support, compliance and finance, each with its sources and a review date.
Next step
Talk to the team that would run your books
A short call covers your setup, your software and what a first month would look like. You get a written scope and price after it.