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Level 1
posted Feb 25, 2020 11:13:53 AM

Do I need to file Form 5472?

I'm trying to determine if I need to file form 5472 for our LLC.  Do all foreign-owned LLC need to file this form solely based on the fact that there's more than 25% of foreign ownership or there are additional requirements? Another question: does TurboTax Business advise if this form needs to be filed based on the information about the members and their contributions, etc?

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1 Best answer
Expert Alumni
Feb 25, 2020 1:13:18 PM

Per Form 5472 Instructions, generally, a reporting corporation must file Form 5472 if it had a reportable transaction with a foreign or domestic related party

A reporting corporation is either:

  • A 25% foreign-owned U.S. corporation (including a foreign-owned U.S. disregarded entity (DE)), or
  • A foreign corporation engaged in a trade or business within the United States.

A reportable transaction is:

  • Any type of transaction listed in Part IV (for example, sales, rents, etc.) for which monetary consideration (including U.S. and foreign currency) was the sole consideration paid or received during the reporting corporation’s tax year; or
  • Any transaction or group of transactions listed in Part IV, if:
    • 1. Any part of the consideration paid or received was not monetary consideration, or
    • 2. Less than full consideration was paid or received. Transactions with a U.S. related party, however, are not required to be specifically identified in Parts IV and VI.

There are exceptions to reporting see page 1 of Form 5472 Instructions.

3 Replies
Expert Alumni
Feb 25, 2020 1:13:18 PM

Per Form 5472 Instructions, generally, a reporting corporation must file Form 5472 if it had a reportable transaction with a foreign or domestic related party

A reporting corporation is either:

  • A 25% foreign-owned U.S. corporation (including a foreign-owned U.S. disregarded entity (DE)), or
  • A foreign corporation engaged in a trade or business within the United States.

A reportable transaction is:

  • Any type of transaction listed in Part IV (for example, sales, rents, etc.) for which monetary consideration (including U.S. and foreign currency) was the sole consideration paid or received during the reporting corporation’s tax year; or
  • Any transaction or group of transactions listed in Part IV, if:
    • 1. Any part of the consideration paid or received was not monetary consideration, or
    • 2. Less than full consideration was paid or received. Transactions with a U.S. related party, however, are not required to be specifically identified in Parts IV and VI.

There are exceptions to reporting see page 1 of Form 5472 Instructions.

New Member
Mar 13, 2021 5:41:37 AM

Does Turbotax Business 2020 not have such a form?

Level 15
Mar 13, 2021 5:48:24 AM

@konradatwork wrote:

Does Turbotax Business 2020 not have such a form?

The TurboTax Business Edition does Not support IRS Form 5472, Information Return of a 25% Foreign-Owned U.S. Corporation or a Foreign Corporation Engaged in a U.S. Trade or Business

 

TurboTax Business Edition Forms - https://turbotax.intuit.com/small-business-taxes/#tax-forms