Plain-English guide
Form 5472 penalties and late filing: what the instructions say
Short answer
The Instructions for Form 5472 state a $25,000 penalty for a reporting corporation that fails to file when due and in the manner prescribed, and an additional $25,000 for each 30-day period the failure continues after a 90-day period that begins on IRS notification. Whether a penalty applies to anyone depends on facts.
What the IRS says
Source: Instructions for Form 5472 (Rev. 12-2024).
A penalty of $25,000 will be assessed on any reporting corporation that fails to file Form 5472 when due and in the manner prescribed.
Filing a substantially incomplete Form 5472 constitutes a failure to file Form 5472.
If the failure continues for more than 90 days after notification by the IRS, an additional penalty of $25,000 will apply.
This penalty applies with respect to each related party for which a failure occurs for each 30-day period (or part of a 30-day period) during which the failure continues after the 90-day period ends.
In plain English
These are the amounts and conditions the instructions state. They do not give a maximum cumulative amount; that describes the wording and is not a prediction about any entity.
Whether a penalty applies, whether it can be reduced, and what to do about one depend on facts and on law this page does not apply. Fylit does not assess penalty exposure, does not offer penalty relief, and cannot tell you whether a late or incomplete filing can be fixed. A qualified tax professional can.
For where the instructions say a foreign-owned U.S. DE sends Form 5472 and the pro forma Form 1120, see the page on where to send it.
A hypothetical, only to show how the two amounts are described
In the instructions' words, the second $25,000 depends on a failure that continues for more than 90 days after the IRS notifies the corporation. If no notification has happened, that second condition has not been met on its face. Reading the rule on actual facts is a job for a professional.
Related
IRS sources
Quoted text last compared with the IRS document on 2026-10-03. The IRS can revise its forms and instructions; check the current version before you rely on anything here.
What Fylit does
Fylit currently provides educational resources about this filing. It does not determine your filing obligations or prepare your return.
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Fylit is an educational resource. Nothing here is tax or legal advice, and nothing here determines whether you personally must file anything. Fylit does not prepare returns, fill in forms from your facts, or file anything. Fylit is not the IRS and is not affiliated with, endorsed by, or sponsored by the IRS or any government agency. Check the IRS's current forms and instructions, and ask a qualified professional about your own situation. Legal disclosures