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2022 Update for Form 5472 All Foreign Owned Single Member LLCs must file - YouTube
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Hey everyone.
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Your favorite international
tax CPA here, James Baker.
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And today I have a video update
for you for all of the foreign
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individuals who own LLC's.
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I'm going to update you on the
infamous form, 54 72 filing that
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needs to be done every year.
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Not much has changed, but I want to answer
some of the frequently asked questions
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that my clients have and give you the
answers to those so that you can be a
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little more informed and then you can
also learn how you can do it yourself.
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And just a spoiler alert.
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I created a course explaining exactly how
to complete this form and you can find it.
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In the description below or link below.
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Okay.
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So first of all, the IRS is
getting pretty aggressive with
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their international compliance.
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So it's important to file this
form correctly, if you haven't
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filed it before, just file it
correctly for this year for 2020.
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So first question, when is it due?
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It's due on April 15th and you can
request an extension a six month
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extension to have it due October 15th.
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If you file the extension timely,
it does every foreign owned
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single member LLC have to file.
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Do you have reportable transactions,
then you have to file this form.
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And if you don't file the form,
the IRS is going to hit you with
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that crushing $25,000 penalty.
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Next question is what
types of LLCs have to file?
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Well, the answer is only single
member LLCs have to file.
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So if you have more than one member,
if you had multiple members or you
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made a corporate tax election, you
wouldn't have to file this form.
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However, corporations that have these
transactions would act to actually
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have to file these forms as well.
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And if you don't file, the IRS is just
going to crush you with penalties that
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$25,000 penalty, or if you file it wrong.
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Another question that I get very often.
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Is what is a reportable transaction
and what do I actually have to report?
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The answer is basically anything
between you and your company.
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If you put money in the company, you
took money out of the company paid
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for personal expenses on your behalf,
you paid for business fences on the
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company's behalf, you paid to open the
company or you paid to close the company.
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Those are all reportable transactions.
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And if you have any of these,
you're required to file.
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And if you don't file.
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It's likely the IRS will crush
you with that $25,000 penalty.
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Another question for what year
is the filing required in the
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U S the calendar year runs from
January 1st to December 31st.
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And that's the period of which
you have to have a reportable
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transaction to be required to file
this form if a December 31st ends.
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And you don't file the form
by its due date on April 15th.
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The IRS will hit you with
a $25,000 crushing penalty.
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Another question that I get is
Jim, how do I assemble this form?
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Well, I always refer to it as form 54,
72, but when you're assembling it to send
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to the IRS, it is a pro forma form 1120.
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And then attached to that pro form
1120 is the form five, four, seven,
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two, as it needs to be filed.
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And you send all of that
together to the IRS at one time.
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And if you send just the 1120, or
just the 54 72, it is incomplete
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and incorrect filing and the IRS
will have the right to issue you
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a $25,000 smashing penalty there.
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And it's going to be really difficult.
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So when do I have to send this form
to the IRS and how do I send it?
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I know I might've touched on the
due date before, but it's due on
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April 15th because it's calendar
year, January to December 31st.
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And it's due on the 15th day of the
fourth month, which is April 15th.
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And you have to send
it via fax or via mail.
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There's no electronic filing.
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We fax all of ours.
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If you don't fax it or mail it,
you know, going to happen, you're
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going to get hit with that penalty.
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Hey, so thanks for watching the video.
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I tried to make it a little fun today.
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A little silly.
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I really do have a course.
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That is good.
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That I promise you, like take the course.
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We'll review the forms before
you send them to the IRS.
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And if you don't understand it, we
want to help you through the process.
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This doesn't have to be
a painful experience.
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It doesn't have to be a scary experience.
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You can just get it, done, get it
done quick, spend a couple hours.
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We'll review it and get it over with.
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And maybe I'll make a couple more
videos about it going over the FAQ's.
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But after that, you know, you can do it.
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I know you can do it.
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So check out the course
it's linked somewhere.
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It's linked over there or
up there or down there.
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I'm sure you can find it emails
if you have any questions.
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So thanks for, watching the video.
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And if you're on YouTube, don't
forget to like and subscribe.
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I appreciate you.
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And I'll see you on the next video.
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