Winning in America means staying compliant. Many foreign-owned US companies owe little or no US income tax, but they still have filing duties. The most commonly missed one is IRS Form 5472, and the penalty for missing it is steep.

Your tax ID numbers: EIN, ITIN and SSN

• EIN (Employer Identification Number): your company’s federal tax ID. It is free from the IRS. Foreign owners without an SSN or ITIN usually apply with Form SS-4 by fax, mail or, from outside the US, by phone.
• ITIN (Individual Taxpayer Identification Number): for individuals who need a US tax number but cannot get an SSN. Apply with Form W-7, usually with a tax return, or through an IRS-authorized Certifying Acceptance Agent.
• SSN (Social Security number): for people authorized to work in the US. An ITIN does not give work authorization.

What is Form 5472?

Form 5472 is an information return. It reports transactions between a US company and its foreign owners or other related parties, such as money you put into the company, loans, payments for services and distributions. It applies to:

• A US corporation that is at least 25% foreign-owned
• A foreign corporation engaged in a US trade or business
• A US single-member LLC wholly owned by a foreign person (a foreign-owned disregarded entity)

Single-member LLCs owned by a foreign person

A US LLC with one foreign owner is normally disregarded for income tax, but since 2017 it is treated as a corporation for Form 5472 purposes. That means it generally must file a pro forma Form 1120 with Form 5472 attached each year, even if it had no income. Forming or funding the company can itself be a reportable transaction. The return is due by the Form 1120 due date, including extensions, and IRS instructions say these pro forma returns cannot be filed electronically, so check the current filing address or fax number in the Form 5472 instructions.

The $25,000 penalty

Under the IRS instructions, failing to file a complete and correct Form 5472 on time, or failing to keep the required records, can bring a $25,000 penalty. A substantially incomplete form counts as not filing. If the failure continues more than 90 days after an IRS notice, an additional $25,000 can apply for each 30-day period, with no maximum. See the IRS page on international information reporting penalties.

Other filings to ask your accountant about

• Federal income tax returns if the company has US-source or effectively connected income (Form 1120 for corporations; Form 1040-NR for some foreign individuals)
• State income, franchise and annual report filings, which vary by state
• Sales tax registration and returns if you sell taxable goods or services
• Payroll tax filings if you have employees
• Treaty benefits between the US and your home country, and reporting there

A simple annual routine

• Keep a ledger of every transfer between you and the company
• Keep your EIN, formation and ownership documents in one place
• Meet your accountant early in the year, before deadlines
• Calendar the Form 1120 / 5472 due date and any extension

Official resources

• IRS: About Form 5472
• IRS: Instructions for Form 5472
• IRS: ITIN
• IRS: Get an EIN
• IRS: International taxpayers

How Ameri-Asia helps

Taxes should not stop your momentum. We connect founders with accountants who work with international owners, so filings like Form 5472 are handled before they become problems.

Last reviewed: October 2026. This guide is general information, not legal, tax, immigration or financial advice. Rules change and depend on your situation, so confirm details with the official sources linked here or a licensed professional before acting.