Penalty · Form 5472
Late Form 5472: the $25,000 penalty and the reasonable-cause request
The penalty under IRC 6038A(d) applies per form and per year. Whether it can be reduced depends on a written reasonable-cause statement with dated facts, not on a template.
What decides the outcome
Three things that change the request
01Per form, per year
Each missed year is its own Form 5472 and its own $25,000 exposure. Counting the years is the first step, before anything is filed.
02Facts with dates
The request needs the cause of the delay, the corrective steps taken and the date of each step. Without dates the statement is weak.
03Records of related-party transactions
Form 5472 reports transactions between the owner and the LLC. Missing records turn the reporting itself into the problem.
Filings in this case
Forms reviewed together
The penalty is tied to Form 5472, but the same year often needs a pro forma 1120. Form 5471 applies only when a foreign company sits above the LLC.
Next step
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