Form 5472 vs Form 5471
These two IRS forms are commonly confused. Here's how to determine which one applies to your situation.
Quick Comparison
| Criteria | Form 5472 | Form 5471 |
|---|---|---|
| Who files | Foreign-owned U.S. corporations/LLCs | U.S. persons who own foreign corporations |
| Direction of ownership | Foreign → U.S. entity | U.S. person → Foreign entity |
| Purpose | Report transactions with foreign related parties | Report ownership and financial info of foreign corporation |
| Ownership threshold | 25% or more foreign ownership | 10% or more U.S. ownership |
| Penalty for non-filing | $25,000 per form | $10,000 per form (up to $60,000) |
| Complexity | 3 pages | 12+ pages with schedules |
When to File Form 5472
You file Form 5472 when a foreign person owns a U.S. entity. The most common scenario is a non-U.S. resident who owns a single-member LLC formed in a U.S. state (such as Wyoming, Delaware, or New Mexico).
Our free filing tool handles Form 5472 filing for foreign-owned disregarded entities.
When to File Form 5471
You file Form 5471 when a U.S. person owns a foreign corporation. For example, a U.S. citizen who owns more than 10% of a company incorporated in Germany or Singapore would need to file Form 5471.
Form 5471 is significantly more complex than Form 5472, often requiring multiple schedules and detailed financial statements of the foreign corporation.
Can You Need Both?
Yes, in certain complex structures, a U.S. person may need to file both forms. For example, if a U.S. citizen owns a foreign corporation that in turn owns a U.S. LLC, both forms may apply. Consult a tax professional for complex structures.