Form 5472 Has No E-File Option and Big Penalties
80 posts across 17 communities in the last 30 days; 65% from r/tax.
“Tax Attorney here — I filed one for a client 5 years late on a million dollars… we filed with reasonable cause and it was not a problem. [re: Filing Form 3520 late]”
“There's not a form. Pub 54, the publication for US citizens living abroad, has instructions that others have already shared here. There's no reason to call. [re: How do I tell the IRS I literally can't file yet?]”
“While running reports for our (late) 2025 Year 1 S-Corp, we found the books were off because of a payroll service error. The bones of the issue are this: We reversed a post-tax Traditional IRA Shareholder benefit prior to the service withdrawing for payroll; we did not reverse…”
Small business owners, particularly those with LLCs taxed as S-corps and foreign ownership, are struggling with complex and outdated tax filing requirements. The lack of e-filing options for critical forms like 5472, combined with potential for significant penalties, creates a stressful and costly burden.
SOURCES (60)
“you use the llc's ein for the bank account, that's the entity that owns the account. the sole proprietor ein is just for w9s so you don't have to hand out your ssn, it doesn't change who the business actually is. bank wants the llc's…”
“You should use the LLC name and EIN. All monies received should be in the name of the LLC and not your personal name. [re: Need help with W9]”
“It's mostly all from 1 year where I liquidated all my retirement accounts, investments, and sold my business. [re: 4 years without filing, owe IRS about 280k, what are my options?]”
“Im guessing you have deductions you can claim against the sale of your business. The IRS would have calculated based simply on the proceeds so the amount owed is likely overstated. [re: 4 years without filing, owe IRS about 280k, what are my options?]”
“Ahhhh compliance????I just been account dented for $1800 for not registering my LLC I GUESS? submitted by /u/ForeverConnect5199 [link] [comments]”
“Punch it in to your tax software and it'll auto populate. Look at form 8995 [re: Can anyone explain me QBI deductions for S Corp and Partnership taxed as LLC (also what the hell are all the wages/ UBGA limits). i am so lost]”
“Previous company I worked for, the HQ was in one state, but our w-2 was from an LLC in a different state. When I googled the address it was basically a registered agent in that state. I'm assuming the legal entity was in that state for corporate taxes or legal reasons. [re: Your legal employer can change without your job changing. What carries over and what doesn't]”
“Plan to sell shares within the calendar year before EOY. It’s about 30k in shares and wanted to better understand what tax payments I need to make ahead as estimated and how they are made? Hoping someone can explain it better to me than the IRS website. Appreciate the guidance. submitted by /u/AcceptableBanana1978 [link] [comments]”
“Tax Attorney here — I filed one for a client 5 years late on a million dollars… we filed with reasonable cause and it was not a problem. [re: Filing Form 3520 late]”
“Probably not a unique story, but found out when going to efile a corporate return that the extensions were never submitted. [re: Tax Accountants: Tell me your 10/15 horror stories]”
“I formed an LLC and am the sole member. No other elections so it is a disregarded entity. The LLC has an EIN. For W9 purposes I do not want to have my SSN on there. I understand the wording says it can either be the owner's SSN or EIN, my question is: How can I get a "personal" EIN? I'm having trouble understanding the IRS guidelines and the online application website. Any help is appreciated. submitted by /u/Deadalos [link] [comments]”
“Will try to keep this concise. Appreciate the help! Client is a Texas S-Corporation with 1 shareholder. Client received a form 592-B from a CA customer withholding 7% of the income they paid my client. CA Franchise tax return has been prepared, and I applied some of the tax withheld on the 592-B received to the tax balance due. For the remaining CA tax withheld to flow through to the shareholder, do I prepare a 592-PTE or a 592-B from the TX S-Corp to the shareholder? And the tax software is rep”
“If I just amend it and file fbars, will this come under Quiet disclosure? Isnt it dangerous? I am very confused. [re: Didn’t Know I Had to Report foreign Bank Interest on US Tax Returns (2023–2025) — Haven’t Filed FBARs Either for years (2023-2024). How Should I Correct This?]”
“Hi, I need to file 5471, 8938, and 8949. Dormant corp, bank accounts and the sale of a property that I am not filing gains or loses. Looking for advice on which software to use. The corp was closed so I know I need to do a schedule O. I had someone lined up to do all of this so please 🙏 no lecturing. I have an extension to today. submitted by /u/Disastrous-Rush2668 [link] [comments]”
“There's not a form. Pub 54, the publication for US citizens living abroad, has instructions that others have already shared here. There's no reason to call. [re: How do I tell the IRS I literally can't file yet?]”
“See TheHeroExa's reference to Pub 54. [re: I have foreign income from wages without W2s. I am not using the FEIE, and I was going to enter it on line 1h, "other income" but on that line it says "enter type and amount."]”
“Yes this was why I didn't put it on that line. The foreign employer doesn't file American W2 forms. [re: I have foreign income from wages without W2s. I am not using the FEIE, and I was going to enter it on line 1h, "other income" but on that line it says "enter type and amount."]”
“Just curious did your CPA see this as a continuation or what was their thoughts? Did happen to do a Form 8275 (Disclosure Statement)? [re: 2025 QBI Aggregation — Sole Proprietor and S Corp]”
“My business partner is retiring at the end of the year and I am getting conflicting information on if I am going to need a new ein when we file his final k-1. I checked my state filing and I do not have to shut down the business when he leaves, I just need to update my annual report. We are classified as an llc through the state. The business is staying exactly the same, I am just taking over 100% ownership. I am already the responsible party for the business and the agent through the state. ”
“I need to file a form 5330 for my LLC of which I'm the only owner and only employee. The IRS is accepting paper submissions for the 2025 tax year for everyone and I'll only need to do this once. The EFiling company says they validate the form, but I'm not sure how valuable that would be if at all. They charge less than $200. My concerns are: * They are the only listed EFiler * There's no document upload portal, so I'm sending banking, EIN and SSN numbers via email, albeit enc”
“While running reports for our (late) 2025 Year 1 S-Corp, we found the books were off because of a payroll service error. The bones of the issue are this: We reversed a post-tax Traditional IRA Shareholder benefit prior to the service withdrawing for payroll; we did not reverse the shareholder salary The payroll service reversed the Traditional IRA amount as requested and, in error, placed the reversed amount as "net pay"; it did not withdraw or pay the shareholder that new net pay amou”
“The annual report or franchise tax filing, because it's separate from income tax and most states want it whether you made money or not. I assumed filing a tax return covered everything, then got a late notice for a report I didn't know existed. The business owed no income tax, but the state still wanted its filing fee and a current officer list. Missing it can lead to late fees and eventually administrative dissolution, which is a bigger problem than the fee itself. I wish someone had to”
“Nobody withholds for the owner, so the first profitable quarter starts a separate clock for your own estimated tax. If you wait to settle it at filing, you can owe an underpayment penalty even when you file on time. Paying quarterly from that first profit is cheaper than fixing it later. Did you register as self-employed or as a company? [re: What was the first business compliance task that caught you off guard?]”
“I’m a U.S. green card holder since Oct 2024 and full-year U.S. tax resident preparing my 2025 return. I have substantial Indian NRO fixed deposits (18-month cumulative FDs). The interest accrues during 2025 but isn’t paid until maturity in 2026. My previous CPA confirmed that the OID rules generally require annual interest recognition. My 2024 Form 1116 elected the accrued method for foreign tax credits. Here’s my situation: 1) India taxes my FD interest under an April 1–March 31 financial year.”
“I'm a U.S. citizen, thanks Is reasonable cause just "I didn't know I needed to file a separate 2553 election?" I actually paid someone to help me with the incorporation and she didn't complete the work, so I did it with an online legal assistance company. [re: Can I get a second opinion on what my accountant is telling me (California)]”
“Departure tax should've covered this already if you filed your final T1 properly. Since the transfer itself is in-kind there's no new taxable event, you just need to make sure your cost basis in the US reflects the stepped-up value from the deemed disposition [re: Tax implication after 'platform transfer' from CA to the USA]”
“Just file correctly next year. Submit a 2553 signed in ink. There's a good chance this doesn't get accepted because LLCs have a lot more scrutiny and there is a long checklist of reasons to deny it. There's also enough drag on the IRS that if your account unposts you might not know for years. You and your accountant are already not on the same page. It is almost certain you are going to give yourself a way bigger headache than just filling what you owe. [re: Can I elect S Corp retroa”
“I'm setting up my Etsy shop. I have an existing LLC (disregarded entity filing under my SSN) for the YouTube channel. My shop will have the same LLC name and thus Etsy payments MUST go to my LLC's bank account (so the names will match). I have indicated on Etsy that I am an Incorporated Business (which by their own verbiage includes LLCs and disregarded entities) and that I am a Disregarded Entity that is taxed under my own SSN. However Etsy will not let me continue without giving them a”
“We’re having issues securing the resources needed for e-filing. In your opinion, would it be okay to offer paper filing only and charge one-third of what Sprintax charges? [re: Sprintax Alternative - Building Alternative of Sprintax to File 1040NR]”
“Assuming no FEIE just report this under “other income” in the software. It should land on line 1h in the 1040. [re: How do I report NZ income to the IRS (ideally for free)?]”
“The only part of this that matters is that the W-9 goes in the LLC's name with the LLC's EIN, not your personal name and SSN. She's almost certainly filling out a rental assistance application, those want the landlord's TIN up front so they can pay you directly, so making her justify the request while October rent is still sitting unpaid is a strange hill to stand on. It's one page. [re: W9 request]”
“May I ask how large your amounts are on the three boxes? Are each line less than say $100? (positive or negative) [re: Tax software support for K-1 forms is atrocious]”
“smfh [re: I'm under 18 and own a Shopify business. I got an EIN and selected single-member LLC, but I never filed an LLC with New York. I used the EIN for Shopify and already filed my taxes with it. Is this okay, or am I in trouble?]”
“Hey just to be clear here, you don’t need to create an LLC, you can just use that EIN# on a schedule C (sole proprietor). [re: I'm under 18 and own a Shopify business. I got an EIN and selected single-member LLC, but I never filed an LLC with New York. I used the EIN for Shopify and already filed my taxes with it. Is this okay, or am I in trouble?]”
“You don’t need an LLC for any of it. A single member LLC is a disregarded entity for tax purposes. Your tax forms from Shopify will show your EIN, which is fine to use on your sales and income tax. It’ll all go on Schedule C of your personal tax return. You put your Employer Identification Number (EIN) on Line D of Schedule C. [re: I'm under 18 and own a Shopify business. I got an EIN and selected single-member LLC, but I never filed an LLC with New York. I used the EIN for Shopify and already f”
“Lol. Lmao even. [re: I'm under 18 and own a Shopify business. I got an EIN and selected single-member LLC, but I never filed an LLC with New York. I used the EIN for Shopify and already filed my taxes with it. Is this okay, or am I in trouble?]”
“I didn't even know they did that. My store is new. I take about 30 min to file my qtrly tax report. I run a report in shopify - enter 4 pieces of data online to txsos website and pay my bill. Are other states much more complicated? I would rather do it myself than pay more. [re: welp, we just lost automated tax filings]”
“Even if you try to fool the US Company with a “friends” address .. as suggested by others.. it will end up only lasting 1 year because the US Government will say “Hey, so and so didn’t pay their taxes. So we need to garnish their wages until they pay the taxes”.. and the fees will quickly exceed how much you will probably make. If you pay the US taxes.. yeah you might get by. Then they send you time sensitive documents (for healthcare coverage..?) or they wonder why all your medical stuff is “in”
“Worth checking whether the law has a grandfather clause or a registration window before you assume the full year hit. In my experience with regulatory pauses, businesses already operating with paperwork on file often get carved out or get a short window to comply. Keep records of your existing activity and spending now, since that is usually what protects you.”
“Hi everyone, Can anybody help on where to go to file an LLC because I have seen many websites and I seen that literally most of them are scams. I'm not sure on where to go to start, if somebody doesn't mind helping? submitted by /u/Economy_Panda_5717 [link] [comments]”
“If you are a US citizen or resident, then yes. Without any additional details that might tell us otherwise, sounds like an account that needs to be reported. There is penalty for failure to file ans stiffer ones for willful non-reporting, but don't know of one that applies for voluntarily reporting information you didn't need to.”
“the bigger reason is liability, not taxes. a single member llc is usually taxed the same as a sole prop by default so that side barely changes. but if the entity on file with shopify is still you personally and payouts land in your personal account, customers are technically buying from you and not the llc. that kind of mixing is what makes the llc protection easy to get around if someone ever sues over a product. putting llc in the store name doesnt change who the seller of record is. annoying”
“Most people who create LLCs do so because they sound cool, they believe an LLC is critical to their business even though they have no idea what an LLC is, how it works, or how the LLC tax return interacts with the 1040. Liability protection for a single-member LLC and tax advantages are both myths. Creating an LLC is easier than getting married in Vegas, and can be more difficult to get out of. Unless someone is an expert at business entities and corporate formalities they have no business being”
“You can't force a tax professional to sign a return that they don't agree with. They could lose their license for knowingly filing a fraudulent return. As others have said, you're not giving us the full story. A negative capital account usually means a large amount of debt. If the debt is forgiven in the bankruptcy, you have income. You're not going to find another qualified tax professional this late in the season. You either file as is then try to amend it if you can find someo”
“How did you get a negative capital account? It’s likely you already got a tax benefit in a previous year. And what kind of COD was it? State laws vary on COD recognition especially with real estate. Facts matter. No CPA wants the brain damage 10 days before the deadline. File as is and then shop it to someone else to Amend. What are the other partners doing? Ask them if they can provide their CPAs substantial authority.”
“I recently formed a single-member LLC and applied for an EIN online. I’m pretty sure one was issued, but I lost the confirmation PDF and don’t have the EIN anywhere. I’ve called the IRS multiple times but haven’t been able to get through. There’s also an IRS office near me, but it’s appointment only, and I can’t get through to schedule one either. I need my EIN to open my business bank account. Has anyone dealt with this before? What’s the best way to retrieve it? Any advice is appreciated.  ”
“The normal route is you create an llc. You get your ein. Then you file the request to be treated as an s corp. you are legally still an Llc but for tax purposes you are electing to be taxed as an s corp. it takes 2-3 months after requesting the s corp status to get approved. At least this has been my experience. If you never received this letter , then I would check with the IRS to see if they ever even received your request. And if they processed it.”
“Oh my……you’re cooked. Look up the penalties for late K-1s. You were DIYing something you had no competence to DIY. Open that wallet.”
“How can you not know if you creted an S-corp? Did you register a State entity like a corporation or LLC? Did you complete Form 2553 to elect to be taxed as an S-corp? Anyhow, the only other person who would know except you is the IRS Business & Specialty Tax Line: 1-800-829-4933”
“Overall, you have the right idea. The LLC is disregarded, it's all Schedule C for yourself, and then any gains/losses are personal capital gains/losses for Schedule D. Receipt/arrival time seems most correct there - that's when you gained control. No weighed average. FIFO by default, or one of the other approved methods if able to document. But weighted average is not one of them. This is where tools like crypto aggregators can be useful, they just automatically look up all these things”
“My firm is a PE and pays my state estimated taxes. On CT-1040, does you use the federal AGI for line 3 by passing the full PTET amount back using line 37? Or do you simply use the federal AGI, then use .875% of the PTET in line 22c without including the full PTET amount anywhere on the form? The language is unclear on the DRS site. My accountant was adding it back in which is similar to how it was done in NY but it’s not clear cut in CT. My guess is it’s the latter, which essentially makes the s”
“My firm is a PE and pays my state estimated taxes. On CT-1040, does you use the federal AGI for line 3 by passing the full PTET amount back using line 37? Or do you simply use the federal AGI, then use .875% of the PTET in line 22c without including the full PTET amount anywhere on the form? The language is unclear on the DRS site. My accountant was adding it back in which is similar to how it was done in NY but it’s not clear cut in CT. My guess is it’s the latter, which essentially makes the s”
Yeah count me in. I’d love to talk about preparing for tax season
“"Do you live in a community property state?" Yes From the IRS: "Married couple businesses in community property states may sometimes qualify to be treated similarly to a sole proprietorship" If I wanted to keep it simple as a sole proprietorship, would it mean that I could carve out the spouse salary as I wish and still report expenses on a single Schedule C and Single SE Tax form on the 1040?”