If you are a U.S. company and have a foreign owner or foreign shareholders, then your company likely needs to file Form 5472.
Who Needs to file Form 5472?
Foreign-owned LLC’s and C-corporations with at least 25% foreign shareholders or partners must file Form 5472 each year with reportable transactions. It is the responsibility of the corporation, not the individual owner or shareholder, to file Form 5472. Business lawyers can assist with the filing of the form.
Additionally, all foreign corporations engaged in trade or business within the United States must file this form annually.
When do I file Form 5472?
Form 5472 should be filed as an attachment to the reporting corporation’s income tax return. If you are a foreign-owned company, you cannot file electronically.
What is a Reportable Transaction for Purposes of Form 5472 in Florida?
The IRS defines a “reportable transaction” as any activity between a foreign owner and a U.S. corporation. There is no limit in value or de minimums threshold to fall within this category. Some examples include sales and rent for which monetary consideration was the sole consideration paid or received.