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I have a question about IRS Form 5472: Information Return of…

Hello, I have a question...
Hello, I have a question about IRS Form 5472: Information Return of a 25% Foreign-Owned U.S. Corporation or a Foreign Corporation Engaged in a U.S. Trade or Business.Do foreign LLCs (which are deemed to be sole proprietorships) need to file the 5472 form OR do only corporations file this IRS form?Thank you,
Stela
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Answered in 3 minutes by:
3/7/2018
Robin D.
Robin D., Senior Tax Advisor 4
Category: Tax
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Experience: 15years with H & R Block. Divisional leader, Instructor
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Hello, I'm Robin. Welcome to JustAnswer. I'm reviewing your question now and typing up my reply. I'll post that in just a few moments.

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An LLC is is a Disregarded Entity (DE) meaning they are disregarded as a corporation for tax and that is why they file sole proprietorship.

While a foreign-owned U.S. DE has no income tax return filing requirement, as a result of final regulations under section 6038A, it will now be required to file a pro forma Form 1120 with Form 5472 attached. The only information required to be completed on Form 1120 is the name and address of the foreign-owned U.S. DE and Items B and E on the first page.

"Foreign-owned U.S. DE" should be written across the top of the Form 1120 with Form 5472 attached. Attach Form(s) 5472 to Form 1120 and file these forms by (1) fax (300 DPI or higher) to(###) ###-#### or (2) mail to: ***** ***** Service, 201 West Rivercenter Blvd., PIN Unit, Stop 97, Covington, KY 41011.

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Customer reply replied 5 months ago
Thank you very much for your reply! I have an important follow-up question for which I would greatly appreciate your help:Have the rules changed so that now even LLCs (sole proprietorships) must file the 1120 and 5472? I ask because when you form an LLC, and within the first 75 days you do not apply to be treated as a corporation or partnership, the LLC will remain a sole proprietorship and you will file only the individual tax return. Do you now file both 1120 and also 5472 even if you are not registered as a corporation within the first 75 days of forming the LLC?

Yes the rules did change and that is the result of that.

That 1120 is just a reporting form for information not tax.

The LLC is still disregarded but the US Treasury wants more info about it now.

You are most welcome.
A positive 5 star rating is appreciated so I am credited for assisting.

Robin D.
Robin D., Senior Tax Advisor 4
Category: Tax
Satisfied Customers: 18,411
Experience: 15years with H & R Block. Divisional leader, Instructor
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Customer reply replied 5 months ago
then, under the new rules, the LLC (sole proprietorship) would have to file both the 1120 and 5472, correct?

Yes

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