If you live outside the US and own a single-member US LLC, you probably know Form 5472. It is the form your LLC files with the IRS each year to report transactions between the LLC and you, its foreign owner. Many owners assume that when they close the LLC, this filing stops. It does not stop until after the final year. The year you close the LLC still needs a Form 5472, and it often has more to report than a normal year. This guide explains why, what to report, and how it connects to closing your EIN.
Is Form 5472 still required in the year you close?
Yes. A foreign-owned single-member LLC that is treated as a disregarded entity must file Form 5472, attached to a pro forma Form 1120, for every year it exists. That includes the final year, even if the LLC only existed for part of it, and even if it had no income.
The penalty for not filing is $25,000 per form, per year. That is the same penalty as in any other year. Closing the LLC with the state does not cancel it, because the state and the IRS are separate. The state does not tell the IRS that your LLC is dissolved.
What counts as reportable in the final year
Form 5472 reports transactions between the LLC and its foreign owner. In a normal year, these are usually:
- money you put into the LLC (contributions)
- loans between you and the LLC, in either direction
- money the LLC paid out to you (distributions)
- in many cases, also payments for services or goods between you and the LLC (your accountant can confirm)
In the final year, there are also transactions connected with closing. The most common one: when you move the money left in the LLC's bank account to yourself before closing it, that is a distribution to the owner. It is a reportable transaction. If the LLC transfers anything else to you at the end, such as equipment or inventory, ask your accountant how to report it as well.
Keep a simple list of every payment between you and the LLC in the final year, with the date and the amount. Your accountant will need it, and it is much easier to make while you are closing than months later.
The pro forma Form 1120, marked final
A disregarded LLC does not pay corporate tax, but the IRS still wants Form 5472 attached to a Form 1120. This is called a "pro forma" Form 1120: it contains only basic information, such as the LLC's name, address and EIN, and serves as a cover for Form 5472.
In the final year, the pro forma Form 1120 should have the "final return" box checked. This tells the IRS that no more returns will come from this LLC. Without it, the IRS may keep expecting a return next year and send notices when none arrives.
When is the final Form 5472 due?
For a calendar-year LLC, the usual deadline is April 15 of the year after the tax year. When an LLC closes during the year, its final tax year may end early, on the date it stops existing, and the due date can then move earlier. The exact rule depends on the LLC's situation. Confirm the exact due date with the accountant who files it, and do not wait until the next April by default.
If you are close to a deadline and not ready, ask your accountant about an extension. Do not simply skip the filing.
Why the IRS will not close your EIN account without it
The IRS never cancels or reuses an EIN. What it does is close the business account linked to the EIN. To ask for this, the LLC sends the IRS a letter with its complete legal name, the EIN, the business address and the reason for closing, signed by the owner.
The IRS will not close the account until all required returns are filed and any taxes are paid. For a foreign-owned single-member LLC, that means every Form 5472 up to and including the final one. If one is missing, the account stays open, and the IRS can keep sending notices or assess the $25,000 penalty. Read more in how to close your EIN business account.
A practical order is: finish the business, distribute the remaining money, have the final Form 5472 filed, and send the EIN closing letter with or after it.
Missed Form 5472 in earlier years?
This is common. Many owners did not know about Form 5472 when they formed the LLC. If earlier years are missing, the IRS can still expect them, and closing the LLC does not make them go away. The EIN account will usually not be closed while earlier returns are missing. Talk to an accountant who works with foreign-owned LLCs about the missing years before you close.
Who files it
We do not prepare or file Form 5472 or any other tax return. The final Form 5472 is filed by you or your accountant.
Our packages cover the other parts of closing:
- Dissolution package, $349 plus state fee: we check the LLC's standing with the state, file the state's dissolution document and send you the state's confirmation.
- Dissolution and EIN closure package, $449 plus state fee: everything above, plus the IRS letter that closes the EIN business account, prepared for one signature and sent by us. The IRS replies to the LLC's address on file.
The state fee is passed on at cost. We work with a network of independent, licensed CPAs and tax advisors.