Form 5472: Information Return of a 25% Foreign-Owned U.S. Corporation or a Foreign Corporation Engaged in a U.S. Trade or Business

Form 5472 is used to report certain transactions between a reporting corporation and related foreign or domestic persons.

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Introduction

Form 5472 is a federal information return used by certain corporations to report transactions involving a reporting corporation and related parties. The form is primarily used to provide information about reportable transactions rather than to calculate the corporation’s regular income tax.

The reporting requirements can apply to certain foreign-owned U.S. corporations and certain foreign corporations engaged in a U.S. trade or business. The specific requirements depend on the corporation’s ownership and transactions during the reporting period.

What Is Form 5472?

Form 5472 is an information return used by a reporting corporation to disclose certain transactions with related parties. The form generally provides information about the reporting corporation, related persons, and the transactions that occurred during the applicable reporting period.

Form 5472 may include information such as:

Reporting corporation information
Foreign ownership information
Related person information
Transactions between the reporting corporation and related persons
Monetary amounts associated with transactions
Property transferred or received
Loans and other financial transactions
Payments and receipts
Other information about reportable transactions

Not every transaction with another person or business requires Form 5472. The reporting requirements depend on the corporation’s ownership structure and the nature of the transaction.

Who Uses Form 5472?

Form 5472 generally applies to certain reporting corporations that are at least partially foreign-owned or certain foreign corporations engaged in a U.S. trade or business. The corporation must meet the applicable requirements for the form to be required.

Form 5472 may be relevant to:

Certain 25% foreign-owned U.S. corporations
Certain foreign corporations engaged in a U.S. trade or business
U.S. corporations with qualifying foreign ownership
Corporations conducting reportable transactions with related persons
Certain corporations with related-party loans, payments, transfers, or other transactions

The form generally focuses on transactions between the reporting corporation and related persons. Whether a particular transaction is reportable depends on the applicable tax rules and the facts of the transaction.

What Information Is Needed?

The information needed to complete Form 5472 generally includes information about the reporting corporation, its foreign ownership, related persons, and reportable transactions. The information should be supported by the corporation’s accounting, ownership, financial, and transaction records.

You may need:

Corporation name and identifying information
Corporation address
Corporation tax identification information
Information about foreign ownership
Information about related persons
Ownership percentages
Nature of the relationship between the parties
Dates of reportable transactions
Amounts paid or received
Property transferred or received
Loan information
Other transaction information
Supporting corporate and financial records

Keep records supporting the information reported on Form 5472.

How to Fill Out/Complete Form 5472

Form 5472 contains sections that provide information about the reporting corporation, related persons, ownership relationships, and reportable transactions. The applicable information depends on the corporation and the transactions that occurred during the reporting period.

Complete the applicable sections using the corporation’s corporate, accounting, ownership, and financial records. Review the form carefully to make sure all reportable transactions and related persons have been properly identified.

Section 1

Section 1 generally provides identifying information about the reporting corporation. This information establishes the corporation that is responsible for the Form 5472 filing.

Enter the requested corporation information and make sure it agrees with the corporation’s tax return and other corporate records.

Section 2

Section 2 generally provides information about related persons involved in reportable transactions. Information may include the person’s name, address, country, identifying information, and relationship to the reporting corporation.

Provide the applicable information for each related person and make sure the information agrees with the corporation’s ownership and transaction records.

Section 3

Section 3 generally addresses the nature of the relationship between the reporting corporation and the related person. This section helps identify why the person is considered related for purposes of the reporting requirements.

Review the ownership and relationship information carefully and provide the applicable information for each related person included on the form.

Section 4

Section 4 generally reports monetary and other transactions between the reporting corporation and related persons. Transactions can include payments, receipts, transfers, loans, and other applicable activities.

Review the corporation’s accounting and financial records to identify reportable transactions and report the applicable amounts accurately.

Section 5

Section 5 generally provides additional transaction information that may be required based on the type of reportable transaction. This may include information about property, services, loans, or other transactions between related parties.

Use the corporation’s records to provide the requested information and make sure the amounts and descriptions agree with the underlying transaction records.

Section 6

Section 6 generally provides additional information about transactions and relationships that may be relevant to the Form 5472 filing. The applicable information can depend on the corporation’s activities and the type of transactions reported.

Complete the applicable information based on the corporation’s records and retain documentation supporting the reported transactions.

Additional Information

Additional information or supporting statements may be necessary depending on the corporation’s ownership structure and transactions. The reporting corporation should review all applicable portions of Form 5472 before completing the filing.

Make sure the information reported on Form 5472 is consistent with the corporation’s tax return, accounting records, ownership records, contracts, invoices, loan documents, and other supporting documentation.

Final Review

Review Form 5472 after completing all applicable sections. Check the reporting corporation information, foreign ownership information, related person information, ownership relationships, transaction dates, payments, receipts, transfers, loans, property information, transaction amounts, supporting records, and final information reported.

A final review can help identify reporting errors before the form is submitted. Corporations should retain Form 5472, ownership records, corporate records, accounting records, financial statements, contracts, invoices, loan documents, transaction records, tax documents, and other supporting records with the corporation’s records.

Common Mistakes

Common Form 5472 mistakes can result from failing to identify a reporting corporation, overlooking related-party transactions, providing incomplete related person information, or reporting incorrect transaction amounts. Careful review of the corporation’s ownership and accounting records can help identify transactions that may need to be reported.

Some common issues include:

Failing to determine whether Form 5472 applies
Failing to identify a related person
Reporting incorrect ownership information
Providing incomplete related person information
Failing to report a reportable transaction
Reporting incorrect transaction amounts
Using incorrect transaction dates
Failing to report loans or transfers
Providing incomplete descriptions of transactions
Using information that does not agree with the corporation’s tax return
Failing to maintain supporting corporate and financial records

Review the completed Form 5472 carefully and make sure the information agrees with the corporation’s records and other applicable tax filings.

Related IRS Forms

Form 5472 may be associated with other federal tax forms depending on the corporation’s ownership, structure, transactions, and activities. Additional forms may be required to report foreign ownership, foreign corporations, related-party transactions, or other international tax matters.

Commonly related forms may include:

Form 1120, U.S. Corporation Income Tax Return
Form 5471, Information Return of U.S. Persons With Respect to Certain Foreign Corporations
Form 8858, Information Return of U.S. Persons With Respect to Foreign Disregarded Entities and Foreign Branches
Form 8865, Return of U.S. Persons With Respect to Certain Foreign Partnerships
Form 926, Return by a U.S. Transferor of Property to a Foreign Corporation
Form 8938, Statement of Specified Foreign Financial Assets
Other forms or schedules that may apply to foreign ownership or related-party transactions

The forms required will depend on the corporation’s individual circumstances and activities.

Where to File or Submit

Form 5472 is generally filed with the reporting corporation’s federal income tax return when applicable. The form is generally associated with the corporation’s applicable federal tax filing rather than being treated as a regular individual tax return.

The applicable filing method and submission requirements can depend on the reporting corporation and the type of federal return being filed. Review the applicable filing requirements before submitting Form 5472.

Current IRS Form & Instructions

Use the Form 5472 and instructions that apply to the tax year or reporting period being filed. Federal tax forms and instructions may be revised over time, so the appropriate version should be used for the applicable reporting period.

The general information on this page is intended to remain useful across multiple tax years. Specific filing requirements, definitions, ownership requirements, reporting rules, and other details may change and should be reviewed for the applicable tax year.

Important Information / Disclaimer

This Form 5472 guide is provided for general informational purposes only and is not tax, legal, or accounting advice. The rules surrounding foreign ownership, related persons, and reportable transactions can be complex, and the filing requirements may depend on the corporation’s ownership structure and activities.

Corporations should review the requirements applicable to the reporting period and consider consulting a qualified tax professional when dealing with foreign ownership, related-party transactions, or other complex corporate tax matters. This page is intended as a general educational guide and should not be used as a substitute for reviewing the applicable tax forms, instructions, and tax rules.