⚠ IRS WarningThe IRS penalty for a missing Form 5472 starts at $25,000 per form per year. Every unfiled year adds another.⚠ IRS WarningThe IRS penalty for a missing Form 5472 starts at $25,000 per form per year. Every unfiled year adds another.⚠ IRS WarningThe IRS penalty for a missing Form 5472 starts at $25,000 per form per year. Every unfiled year adds another.⚠ IRS WarningThe IRS penalty for a missing Form 5472 starts at $25,000 per form per year. Every unfiled year adds another.⚠ IRS WarningThe IRS penalty for a missing Form 5472 starts at $25,000 per form per year. Every unfiled year adds another.⚠ IRS WarningThe IRS penalty for a missing Form 5472 starts at $25,000 per form per year. Every unfiled year adds another.

Most foreign founders discover this requirement only after penalties have already started.

Many foreign LLC owners discover the Form 5472 requirement years after forming their LLC, often when opening a U.S. bank account, applying for an L-1 or O-1 visa, or preparing to sell or exit the business. By then, the IRS penalty clock has already been running.

Penalty Risk Scale

$25,000$50,000$75,000$100,000$150,000+
1 LLC, 1 year2 LLCs, 3 years

Two LLCs, three unfiled years equals $150,000 in potential penalties. Our $350 total solution covers one year completely.

What is a Reasonable Cause Letter?

A reasonable cause letter is a written argument submitted to the IRS alongside a late filing, requesting that the automatic $25,000 penalty be waived. The IRS may grant relief if the failure to file was due to reasonable cause and not willful neglect.

The most common argument for foreign founders is that they were not aware of the filing requirement. This is a credible position, given that the requirement is rarely disclosed by LLC formation services. However, the argument must be presented correctly and supported with facts.

Our letters are authored by a licensed CPA. You select the situation that best describes your case from a structured set of categories aligned with IRS reasonable cause standards, and the system populates the letter with your filing details. The output covers the facts of your filing, the applicable IRS standards, and the request for abatement, in the format the IRS expects.

What it costs

Past Year Form 5472 + Pro Forma 1120$150
CPA-Authored Reasonable Cause Letter+$200
Total per year$350

One-time cost. No subscription.

The longer you wait, the harder it gets to argue reasonable cause. File now.

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