IRS Form 5472

What is Form 5472?

It's a requirement for 25% foreign-owned U.S. corporations or foreign corporations engaged in a U.S. trade or business. The form is used to report certain transactions between the reporting corporation and foreign or domestic related parties.

IRS Form 5472 Filing Requirements

5472 form requirements include the following:

• Reporting Corporation details, including name, address, Employer Identification Number (EIN), total assets, and principal business activity.
• Information about 25% Foreign Shareholders, including name, address, U.S. identifying number, and country of citizenship or incorporation.
• Related parties' details include sales, rents, royalties, interest, and other monetary transactions.
• Additional information such as imported goods, cost-sharing arrangements, and loan details.

Form 5472 Reportable Transactions

• Sales of stock in trade (inventory) and tangible property.
• Platform contribution transaction payments received and paid.
• Rents and royalties received and paid.
• Interest received and paid.
• Loan guarantee fees received and paid.
• Other amounts paid and received.

Step-by-Step Guide on How to Fill Out Form 5472 and Example

Part I - Reporting Corporation: Fill in the details of the reporting corporation, including name, address, EIN, total assets, and principal business activity.

For example:

• Name of reporting corporation: ABC Corp;
• Address: 123 Somehing St, City, ST, 12345;
• EIN: 98-7654321;
• Total assets: $2,000,000.00;
• Principal business activity: Wholesale trade;
• Principal business activity code: 54321;
• Total value of gross payments made or received reported on this Form 5472: $500,000.00;
• Total number of Forms 5472 filed for the tax year: 3;
• Total value of gross payments made or received reported on all Forms 5472: $1,500,000.00;
• Total number of Parts VIII attached to Form 5472: 2;
• Country of incorporation: USA;
• Date of incorporation: 01/01/2000;
• Country(ies) under whose laws the reporting corporation files an income tax return as a resident: USA, United Kingdom;
• Principal country(ies) where business is conducted: USA, United Kingdom.

Part II - 25% Foreign Shareholder: Provide information about direct and ultimate indirect 25% foreign shareholders.

For example:

• Name and address of direct 25% foreign shareholder: John Doe, 456 Other St., City, UK;
• U.S. identifying number: N/A;
• Reference ID number: 123456789;
• Foreign taxpayer identification number (FTIN): UK123456;
• Principal country(ies) where business is conducted: USA, United Kingdom;
• Country of citizenship, organization, or incorporation: United Kingdom;
• Country(ies) under whose laws…: USA, United Kingdom.

Part III - Related Party: Include details of the related party, such as name, address, principal business activity, and relationship.

For example:

• Name and address of related party: XYZ Ltd, 789 Other St, City, UK;
• U.S. identifying number: N/A;
• Reference ID number: 123456789;
• FTIN: UK789012;
• Principal business activity: Retail;
• Relationship: Related to 25% foreign shareholders.

Part IV - Monetary Transactions: Report monetary transactions between reporting corporations and foreign-related parties.

For example:

• Sales of stock in trade: $50,000.00
• Interest received: $1,000.00
• Other amounts received: $5,000.00
• Total amounts received: $56,000.00
• Interest paid: $2,000.00
• Other amounts paid: $3,000.00
• Total amounts paid: $5,000.00

Part V - Reportable Transactions: Describe any other transaction as defined by Regulations section 1.482-1(i)(7).

Part VI - Nonmonetary Transactions: Describe nonmonetary and less-than-full consideration transactions.

Part VII - Additional Information: Answer questions about imported goods, cost-sharing arrangements, loans, etc.

For example:

• Imported goods: No
• Cost sharing arrangement: No
• Loan to or from the related party: No

Part VIII - Cost Sharing Arrangement: Provide details of the Cost Sharing Arrangement (CSA) if applicable.

This Form 5472 example represents a simplified and generalized scenario. The actual form may require more detailed information based on the specific circumstances of the reporting corporation and related parties.

Form 5472 Due Date

The form's due date aligns with the tax year of the reporting corporation. It must be filed with the corporation's income tax return by the due date, including extensions. In 2023, the due date is April 18th or October 16th, in case you got an extension.