What is Form 5472?

Form 5472 is an information form filed by some U.S. corporations and foreign corporations for reporting certain transactions between themselves and their foreign or domestic related parties. It is applicable in general to a 25% foreign-owned U.S. corporation, including certain foreign-owned U.S. disregarded entities, or a foreign corporation conducting a trade or business in the United States.

IRS Form 5472 is not an income tax form but rather an information form for the IRS in relation to certain transactions that need to be reported by the reporting corporation with its related parties.

Who Should File Form 5472?

Typically, a reporting corporation will have to file Form 5472 if there is any reportable transaction between the corporation and a foreign or domestic related party.

Typical reporting corporations include the following:

• A United States corporation which is more than 25% foreign-owned within a year.
• A foreign-owned United States disregarded entity that is treated as a corporation for purposes of filing.
• Foreign corporations that are operating in the United States.

A corporation will be considered more than 25% foreign-owned if an individual foreign owner holds more than 25% of the corporation’s voting power or total value through direct or indirect ownership.

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