Form 5472 penalties
Missing or late Form 5472 filings carry a $25,000 penalty per form, even when no tax is due.
How we helpWe identify every related party transaction and file Form 5472 with your corporate return.
Global business · Tax · Books · Insurance
Tax, books and insurance for importers and foreign-owned U.S. companies
A foreign parent, landed costs and related party pricing. We keep your U.S. company compliant with Form 5472, sales tax and clean books.
U.S. subsidiaries of foreign companies, importers, wholesale distributors and sales offices work with our office for corporate returns, Form 5472, landed cost accounting, payroll and commercial coverage.
Reviewed by Orkun Ozkaymak, CPA, MBA·Clients in all 50 states and abroad
Import, distribution and foreign-owned companies
A U.S. company with roots abroad
When a foreign company owns 25% or more of a U.S. corporation, every transaction with the parent is reported on Form 5472, and prices between related companies need to hold up.
Our office handles the corporate return, the related party reporting, inventory with duties and freight, and the payroll for your U.S. team. We work comfortably with owners and finance teams overseas.
Special needs
What makes import and foreign ownership different, and how we help
Where international companies most often need a U.S. partner.
Related party pricing
Prices for goods and services between the U.S. company and the parent must be arm's length.
How we helpWe document intercompany agreements and keep pricing consistent in your books.
Landed cost
Duties, freight and customs brokerage belong in inventory cost, not expenses.
How we helpWe capture landed cost for each shipment so margins and taxes are right.
Selling in many states
Distributors often ship nationwide and must handle sales tax and resale certificates.
How we helpWe track nexus, register in each state and manage exemption certificates from your customers.
One coordinated office
Services for importers and distributors
Tax, accounting and insurance under one roof, so the numbers on your return, your books and your policies all agree.
Tax and accounting
Business income taxForm 1120 with Form 5472 and state corporate returns.Learn more QuickBooks bookkeepingQuickBooks with landed cost and intercompany accounts.Learn more Sales taxMulti-state sales tax and resale certificates.Learn more Payroll taxU.S. staff payroll and expat support.Learn more IncorporationsU.S. subsidiary formation.Learn more Business advisoryIntercompany agreements and structure planning.Learn more
Insurance
Commercial insuranceProperty, general liability and product liability.Learn more Errors and omissionsCoverage for sales offices, agents and service arms of the parent.Learn more Commercial autoCommercial auto for delivery and sales vehicles.Learn more Workers compensationWorkers compensation for U.S. staff.Learn more
Calendar
Filings we keep on schedule
The recurring deadlines importers and distributors face most often. We track them for you and send reminders before anything is due.
- April 15Form 1120 with Form 5472Calendar-year corporations, extendable to October 15.
- 20th of each monthIllinois sales taxPlus returns in other nexus states.
- QuarterlyForm 941 and state payrollFor U.S. employees.
- Before paymentForm W-8 and W-9Collected from foreign and U.S. vendors.
Dates shown are for calendar-year filers. When a due date falls on a weekend or holiday, it moves to the next business day.
QuickBooks Online
Books built for importers and distributors
Your QuickBooks separates intercompany balances and landed costs, so both you and the parent see the same numbers.
Our office sets up QuickBooks Online with a chart of accounts designed for your industry and your entity type, mapped line by line to your tax return. Your books are ready for filing season all year.
Chart of accounts
- 41000Product salesIncome
- 41800Commission income from parentRelated party
- 51000Product costCOGS
- 51300Duties and customs brokerageLanded cost
- 20500Due to parent companyRelated party
- 13000InventoryAsset
Mapped to your tax return lines
Questions
What importers and distributors ask us
Who has to file Form 5472?
A U.S. corporation that is at least 25% foreign-owned, and a foreign-owned U.S. single-member LLC, must report transactions with related foreign parties on Form 5472.
Are customs duties deductible?
Duties are part of the cost of inventory, so they are deducted as goods are sold through cost of goods sold.
Can you work with our accountants abroad?
Yes. We regularly coordinate with foreign parents and their advisors on year-end reporting and intercompany balances.
Related industries
All industriesInternational foundersYou can build a U.S. company without living here. We form it, get your EIN, keep your books and file every U.S. return on time.Explore Truck and auto partsThousands of SKUs, wholesale and retail customers, sales in many states. We keep inventory, resale certificates and sales tax in order.Explore Retail and e-commerceSelling in one store or fifty states, sales tax follows you. We track nexus, reconcile marketplace payouts and keep inventory accurate.Explore
Next step
Let's talk about your business
Request an insurance quote, or start your company with our office. Prefer to talk first? Book a time, virtual or in person.