IRS penalties
What happens if your LLC misses Form 5472?
$25,000
Base penalty per missed Form 5472, per tax year
+$25,000
Per 30-day period after IRS notice (after a 90-day grace period), no statutory cap
Unlimited
Penalties continue to accumulate until the return is filed
The IRS penalty for missing Form 5472 is among the harshest in the information-return regime. Unlike income tax penalties that scale with the tax owed, the Form 5472 penalty is fixed at $25,000 per form per year , regardless of whether the LLC had any revenue or owed any tax.
How the penalty accumulates
After IRS notice, continuation penalties can apply for continued failure. Under IRC §6038A(d), the continuation amount is $25,000 for each 30-day period (or fraction thereof) after the initial 90-day period following notice, with no stated statutory maximum. Verify current law and your facts with a licensed tax professional.
Can the penalty be abated?
The IRS may waive penalties for reasonable cause. However, this requires affirmatively demonstrating that the failure was due to circumstances beyond the taxpayer's control — “I didn't know about the form” is typically not considered reasonable cause. Filing voluntarily before an IRS notice is the strongest position.
Multiple LLCs, multiple penalties
The penalty applies per form. If a foreign owner has multiple US LLCs that each missed the filing, each LLC owes its own $25,000 penalty.
Get organized, then file
Fylit is software that helps you structure what you need. You remain responsible for filing and for any penalties, consult a CPA about your situation.
Fylit builds compliance drafts from your inputs. General IRS content on this site is for information only — not tax or legal advice for your situation. Review any drafts with a qualified tax professional before filing.