Filing Form 5472 with Form 1120: A Step-by-Step Walkthrough

For foreign-owned single-member LLCs, Form 1120 and Form 5472 are a package deal. You can't file one without the other. Here's the complete walkthrough.

The relationship

Form 1120 is the "cover" return — it reports your LLC's income, deductions, and tax. Form 5472 is the "attachment" — it reports transactions between the LLC and its foreign owner.

For many foreign-owned LLCs with minimal activity, Form 1120 will show mostly zeros while Form 5472 will have the real information.

Preparation order

Step 1: Gather your records

• •Bank statements for the entire tax year
• •Log of all transactions between you and the LLC
• •Any invoices or receipts for business expenses
• •Year-end balance sheet information

Step 2: Fill Form 1120

• •Page 1: Income, deductions, tax computation
• •Schedule L: Balance sheet (beginning and end of year)
• •Schedule M-1: Book-to-tax reconciliation
• •Schedule M-2: Analysis of unappropriated retained earnings

Step 3: Fill Form 5472

• •Part I: Your LLC's information
• •Part II: Your personal information as the foreign owner
• •Part IV: All monetary transactions between you and the LLC

Step 4: Attach and file

• •Form 5472 is attached to Form 1120
• •File by April 15 (or October 15 with extension)

Zero-income example

Your LLC was formed in June, got an EIN, opened a bank account, and you contributed $5,000 as initial capital. No revenue, no expenses.

Form 1120:

• •All income lines: $0
• •All deduction lines: $0
• •Tax due: $0
• •Schedule L: Assets = $5,000 (cash), Equity = $5,000

Form 5472:

• •Part IV, Capital contributions: $5,000
• •All other transaction lines: $0

Active business example

Your LLC earned $80,000 in revenue, had $45,000 in expenses, and you contributed $10,000 in capital plus received $20,000 in distributions.

Form 1120:

• •Gross receipts: $80,000
• •Total deductions: $45,000
• •Taxable income: $35,000
• •Tax (21%): $7,350

Form 5472:

• •Capital contributions: $10,000
• •Distributions / other amounts paid: $20,000

Filing method

• •E-file through your CPA's tax software (preferred)
• •Paper file by mailing to the IRS service center for your state

Using UFF

UFF helps you prepare both forms. Fill in the guided fields for Form 1120 and Form 5472 separately, generate both PDFs, and provide them to your CPA for review and filing.