MyFreeTaxAmerica

MyFreeTaxAmerica

Form 5472: The $50,000 Reporting Shortcut You Need to Know

Form 5472: The $50,000 Reporting Shortcut You Need to Know

If you're filing Form 5472 to report transactions with foreign related parties, here's a time-saving rule that can simplify your reporting: the $50,000 threshold. The Rule When the total amount for any transaction category doesn't exceed $50,000, you can report it as

When Does 50% Ownership Trigger Form 5472 Related Party Reporting?

When Does 50% Ownership Trigger Form 5472 Related Party Reporting?

Understanding the ownership thresholds for IRS Form 5472 reporting is critical for foreign-owned U.S. businesses. While most people know about the 25% foreign ownership rule that triggers the filing requirement, fewer understand when 50% ownership becomes the determining factor for related party status. The Two Ownership Thresholds on Form

Why Form 5472 Requires a Wet- Ink Signature.

Why Form 5472 Requires a Wet- Ink Signature.

If you're a foreign person who owns a US disregarded entity—such as a single-member LLC—you need to file Form 5472 annually. One critical requirement often catches filers off guard: The IRS requires an original wet-ink signature (an electronic signature is not accepted). Adding to the challenge,

Form 5472 Part V: Essential Guide for Foreign-Owned U.S. Disregarded Entities

Form 5472 Part V: Essential Guide for Foreign-Owned U.S. Disregarded Entities

If you're a foreign owner of a U.S. LLC or disregarded entity, Form 5472 Part V reporting is critical—and often confusing. With IRS penalties starting at $25,000 for incomplete filings, understanding Part V requirements can save you thousands. This guide clarifies what belongs in Part

How to File an Extension for Form 5472: A Complete Guide for US Disregarded Entities

How to File an Extension for Form 5472: A Complete Guide for US Disregarded Entities

How to File an Extension for Form 5472: A Complete Guide for US Disregarded Entities Filing Form 5472 can be complex for foreign-owned US disregarded entities. If you're approaching the deadline and need more time, filing an extension is straightforward and helps you avoid costly penalties. What is

When to Report Related Parties on Form 5472: Understanding Family Member Reporting Requirements

When to Report Related Parties on Form 5472: Understanding Family Member Reporting Requirements

Filing Form 5472 for foreign-owned U.S. corporations can be confusing, especially when determining which family members qualify as related parties. Do you need to report your brother? What about your uncle or nephew? Understanding these requirements is crucial for IRS compliance and avoiding $25,000 penalties. What is Form

Form 5472 for Foreign-Owned LLCs: Essential FAQs (2025)

Form 5472 for Foreign-Owned LLCs: Essential FAQs (2025)

If you're a non-US resident who owns a single-member LLC in the United States, you need to understand Form 5472. This FAQ guide answers the most important questions about filing requirements and staying compliant with the IRS. ⚠️ Critical: The penalty for not filing Form 5472 is $25,000

Form 5472: Essential Filing Requirements for Nonresidents Owning US Rental Properties Through LLCs

Form 5472: Essential Filing Requirements for Nonresidents Owning US Rental Properties Through LLCs

Published: August 31, 2025 If you're a nonresident who owns rental properties in the United States through an LLC, you may have additional tax obligations beyond your regular income tax returns. One critical requirement that many foreign investors overlook is Form 5472, which can result in substantial penalties

Why You Shouldn't Hire Someone from Upwork or Fiverr to Prepare Your Form 5472

Why You Shouldn't Hire Someone from Upwork or Fiverr to Prepare Your Form 5472

When you own a foreign-controlled U.S. corporation or LLC, filing Form 5472 isn't optional—it's a legal requirement that comes with serious consequences if done incorrectly. While platforms like Upwork and Fiverr might seem like cost-effective solutions for tax preparation, hiring freelancers from these platforms

Hong Kong Company for Amazon FBA: The U.S. Tax Trap That Could Cost 45% of Your Profits

Hong Kong Company for Amazon FBA: The U.S. Tax Trap That Could Cost 45% of Your Profits

Are you considering a Hong Kong offshore company for your Amazon FBA business? This tax strategy could backfire spectacularly. The Hong Kong Amazon FBA Promise (Too Good to Be True) John, an Australian entrepreneur living in Bali, discovers Amazon FBA. He sources products from China and sells to U.S.

Simple Excel Bookkeeping for Form 5472: A CPA's Guide for Nonresidents

Simple Excel Bookkeeping for Form 5472: A CPA's Guide for Nonresidents

Last updated: November 2024 As a CPA helping nonresident clients with U.S. tax compliance, I often hear: "Do I really need expensive accounting software for Form 5472?" The answer is no. A simple, well-structured Excel spreadsheet is all you need to meet IRS requirements and simplify your

Wyoming LLC vs. Delaware and New Mexico: Why Wyoming Reigns Supreme for Non-Residents

Wyoming LLC vs. Delaware and New Mexico: Why Wyoming Reigns Supreme for Non-Residents

When choosing the best state to form your Limited Liability Company (LLC) as a non-resident, three states consistently top the list: Wyoming, Delaware, and New Mexico. While each offers distinct advantages, Wyoming LLC formation has emerged as the clear winner for most non-resident entrepreneurs and investors. The Delaware Franchise Tax