FileTax, a CPA, or doing it yourself
There are three ways to file Form 5472 and the pro forma 1120. This page is an honest account of when each one is the right choice, including when we are not.
Missing this filing carries a $25,000 penalty per form, per year, so the question is rarely whether to file. It is who should prepare it.
| Doing it yourself | FileTax | A CPA | |
|---|---|---|---|
| Cost for one tax year | Free, plus your time | $99 | $400 to $900 |
| Catching up several missed years | You write the reasonable cause statement yourself | $99 per year, plus one $199 letter covering every year | Usually billed per year, letter included |
| More than one foreign related party | One Form 5472 per party, prepared by you | +$25 per additional party, per year | Included, at the hourly rate |
| Fiscal-year and final returns | Possible, but the period dates are easy to get wrong | Supported | Supported |
| Correct IRS form revision for each year | Your responsibility to find the right one | Selected automatically by tax year | Handled |
| Where your data goes | Stays with you | Assembled in your browser, no bank login, no statements | You send documents to your accountant |
| Turnaround | However long it takes you | About 10 minutes, same day | Days to weeks, depending on their workload |
| Judgement on a complicated position | None | No. If your case is not a fit, we say so and refer you out | Yes, this is what you are paying for |
A worked example: 3 missed years
This is the most common situation we see. The LLC was formed a few years ago, nobody mentioned Form 5472, and the owner found out from a bank, an acquirer, or an accountant.
- With FileTax$496
3 years at $99, plus one $199 reasonable cause letter covering all 3
- With a CPA$1,200 to $2,700
at $400 to $900 per year
- YourselfFree
plus the reading, and the risk of getting the form revision or the period dates wrong
CPA figures are a typical range for this filing, not a quote. Ask for one.
When you should not use FileTax
A comparison page that concludes you should always buy the product is not a comparison. Go to a CPA if any of these apply:
- Your LLC has more than one member, or is taxed as a corporation.
- You have income the IRS treats as U.S.-source, or staff or premises in the U.S. Your own return is then in question, and this flow does not prepare it.
- The IRS has already contacted you about a penalty. Voluntary catch-up is a different position from responding to a notice.
- You are not sure what your LLC actually did in a given year.
Our eligibility check screens for most of this and will tell you to see a CPA rather than taking your money. Run the check.
What to ask before you pay for any Form 5472 tool
Including this one. Every question below describes something that genuinely goes wrong in this market.
Does it use the correct form revision for each year I am filing?
Ask to see a back year before you pay. A tool that renders every year on the same revision will show you the same form twice.
Can it file more than one year in a single job?
Several tools sell one tax year per package while advertising catch-up filing. Check whether three missed years means one purchase or three.
Is the reasonable cause letter charged once, or once per year?
One letter can cover every late year. Being charged per year for it can quietly double the cost of a catch-up.
Can I see the completed forms before I pay?
If you cannot, you are buying an outcome you have not seen.
What happens if I find a typo after paying?
Ask before you buy, not after you notice.
Do I have to hand over bank statements or a bank login?
Convenient, but it is a lot of financial history to give a website. Ask whether it is required or optional.
Find out where you stand
The eligibility check takes about a minute, runs entirely in your browser, and tells you honestly whether we can help.