Join international tax expert Alison Dougherty on July 27th for an insightful Strafford webinar, “Mastering Form 5472: New Filing Requirements for Foreign Individuals, LLCs, and Companies.” Alison, along with Kristen Burmester of Caplin & Drysdale, will provide line-by-line guidance in successfully completing Form 5472, with a focus on the impact of new IRS regulations requiring 5472 reporting by foreign owners of disregarded entities (DREs).
Form 5472, “Information Return of a 25% Foreign-Owned U.S. Corporation or a Foreign Corporation Engaged in a U.S. Trade or Business,” is one of the most complicated forms applicable to foreign companies. Originally, the reporting obligations applied to corporations only; however, in 2016 the IRS announced changes that extended the reach of Form 5472 requirements to non-U.S. individuals owning DREs active in the U.S. Penalties for failing to file Form 5472 includes fines that could reach up to $10,000 each, with complicated rules for penalty mitigation.
Attendees will hear firsthand from the experts on important issues, including:
- What entities and individuals are subject to Form 5472 filing requirements
- Identifying key elements of IRC 6038A and 6038C to determine definitions of transactions that must be reported
- Line-by-line guidance on completing Form 5472
- Steps that foreign individuals owning DREs operating in the U.S. must take to fulfill filing requirements
- Penalty abatement and mitigation provisions