Q: As a non-US resident who established an LLC in Wyoming on May 29, 2022, I recently discovered that I am required to complete the IRS 5472 and 1120 forms. Since I have not yet generated any income from my business, I am uncertain about the process for filling out these forms, particularly in regard to accurately documenting Reportable Transactions. Can you provide guidance on these matters?
A: Filing taxes as a non-US resident can be confusing, especially if you are not familiar with the US tax system. Here are some general guidelines for filling out the IRS 5472 and 1120 forms for your LLC.
Firstly, it’s important to note that the Form 5472 form is used to report transactions between the US disregarded entity and its foreign owner or related parties. As the owner of the LLC, you would need to complete this form if you had any “reportable transactions” during the tax year.
A reportable transaction includes any exchange of money or property between the LLC and a foreign person or related party. For example, if you contributed money to the LLC, that would be a reportable transaction. If a related party paid for goods or services on behalf of the LLC, that would also be a reportable transaction.
To document all reportable transactions, you will need to keep accurate records of any money or property that was transferred between the LLC and a foreign person or related party. This includes invoices, receipts, bank statements, and any other relevant documents. These records will help you fill out the IRS 5472 form accurately and avoid any potential issues with the IRS.
When filling out these forms, it may be helpful to consult with a tax professional who is familiar with US tax laws and can guide you through the process. Additionally, the IRS website has resources and instructions for filling out these forms, which can be a useful reference.
If you are a foreign owner of a US single member LLC, it’s important to comply with the IRS regulations by completing the IRS Form 5472 and Proforma 1120 forms. As a Certified Public Accountant (CPA) with extensive experience in tax preparation, I am well-equipped to guide you through these complex forms and ensure that you are in compliance.
Filing these forms is critical for avoiding penalties and interest, and by working with me, you can have peace of mind knowing that your forms will be completed accurately and on time. Don’t let tax compliance issues hold you back from achieving your business goals in the United States.
Contact me today to learn more about how I can assist you in completing the IRS Form 5472 and Proforma 1120 forms for your single member LLC. With my personalized attention and expertise in tax preparation, you can stay focused on growing your business and leave the tax compliance work to me.
New Compliance Alert!!: On January 1, 2024, the Financial Crimes Enforcement Network (FinCEN) announced the commencement of beneficial ownership information (BOI) reporting under the Corporate Transparency Act (CTA). This vital step forward ensures greater transparency and aids in the fight against illicit financial activities. Companies established or registered in the U.S. are required to comply with these reporting standards, contributing to a more accountable corporate environment.Learn more and seek guidance here.
