FAQ
Questions about Form 5472, late years, books and prices
If your question isn't here, ask it on a 30 minute call.
Form 5472
Form 5472 and the pro forma 1120
For a US LLC with one owner who isn't a US person.
It's an information return. The IRS uses it to see money moving between a US company and its foreign owner. A single-member LLC with a non-US owner files it every year, attached to a pro forma Form 1120. The form is a report, not a tax bill, but missing it can carry a $25,000 penalty. More on our Form 5472 filing page.
Usually yes. The filing is triggered by reportable transactions between you and the LLC, such as paying its formation costs or putting money in, not by profit. We check your facts before quoting.
The filing can still be due. Money you paid on the LLC's behalf, like formation or registered agent fees, can count as a reportable transaction.
April 15 for a calendar-year LLC. Filing Form 7004 extends it six months, to October 15. If neither date was met, that year is late.
For a foreign-owned single-member LLC, the IRS instructions have the pro forma 1120 and Form 5472 sent by fax or by mail. We prepare it and send it the way the instructions say.
No. Form 5472 is a federal filing and it's the same whichever state formed the LLC. State annual reports and fees are separate, and those stay with your registered agent.
The IRS assesses it against the LLC, because for Form 5472 a foreign-owned single-member LLC is treated as a corporation separate from its owner. Whether it can then be collected from you personally is a legal question for a tax attorney, not a tax preparer. The IRS sources are in our post on who the penalty falls on.
Your EIN letter, the formation documents, your details as owner (name, address, country of tax residence), and a list of any money that moved between you and the LLC during the year. Bank statements if the LLC has an account.
Late years
Missed years and penalty notices
For years that were never filed, and for penalty notices that have already arrived.
Yes. We prepare and file the missing returns, one for each year, and draft the reasonable cause statement that goes with them. If a letter has arrived or the file needs someone to represent you before the IRS, we tell you on the first call that you need an Enrolled Agent or tax attorney. More on late Form 5472 filings.
Nobody can promise that, and we won't. We prepare the late returns and draft a statement explaining why they were late. Whether the penalty comes off is up to the IRS.
Keep the notice and don't ignore it. Notices usually give a date to respond by. Challenging an assessed penalty is representation before the IRS, which Qeihan can't do, so you'll need an Enrolled Agent or tax attorney for that. We can still prepare any returns that are missing.
Get a registered agent back in place with the state first, so new mail has somewhere to go. Then book a call and we'll go through which years were likely due and how to check what the IRS has on record.
Each year is its own return, and the facts differ a lot from one LLC to the next. We quote each year separately once we've seen the file.
Bookkeeping
Catch-up, cleanup, Xero and monthly books
For US small businesses whose books have fallen behind.
Catch-up is when months were never recorded at all. Cleanup is when they were recorded but wrongly: bad categories, duplicates, accounts that don't reconcile. Plenty of books need a bit of both, so we quote them together after one look.
No. We work back through it a year at a time. If a return is late because of the books, we tell you which one to deal with first.
For monthly books, yes, we keep them in Xero. If you're on QuickBooks, Wave or spreadsheets, we can move you over, and a year end is the easiest time to switch. More on Xero migration.
Usually 2 to 4 weeks. It depends on how many years of history you bring and how clean the old books are.
Yes, but we clean it first. If we moved it as it is, the same errors would carry over into Xero. Cleanup is priced separately. See catch-up bookkeeping.
Yes. Every monthly package includes at least one annual return. Essential covers one individual or single-member LLC return. Growth covers the business return and your personal return. See monthly packages.
A monthly call about the numbers, a budget and forecast, cash flow tracking and tax planning, on top of the books and returns. It suits a business whose books are already running properly, so it's rarely where you start.
Pricing
What it costs and how you pay
Starting prices for each service, and how billing works.
One flat fee per tax year for Form 5472 and the pro forma 1120, prepared, signed and filed: from $799. If years were missed, each late year is from $899, including the reasonable cause statement.
Yes. The same filing every year, with a reminder before each deadline, for $699 a year.
Catch-up starts at $300 for each month of books we bring up to date. Cleanup of books that already exist starts at $600. A Xero migration is $750 flat. Monthly packages start at $275, $350 and $450 a month, and fractional CFO is $750 a month. Every fee is on the pricing page.
From $225 for the year. The final fee depends on what's in the return, like a Schedule C, rental income or more than one state.
Yes, from $300 for each month of books. So twelve months behind starts from $3,600. The exact figure depends on how many accounts and transactions there are.
They're starting prices. The final number depends on how many months of books there are and how messy they are. We look at your situation on a call and then quote the fee in writing.
No. Every piece of work has a flat fee or a monthly fee, agreed up front. If something turns up that wasn't in the quote, like another year or another entity, we quote it separately before doing it.
ACH, wire or Zelle, depending on the engagement. It's set out in your engagement letter.
No. Monthly packages run month to month, and you can stop with 30 days notice.
About us
Who we are, and what we're not
Who prepares your return, and which credentials he does and doesn't hold.
No. Qeihan Anderson is a tax return preparer and bookkeeper. He isn't a CPA or an Enrolled Agent. He prepares and signs federal returns, including Form 5472 and the pro forma 1120, and keeps books. He doesn't audit financial statements and doesn't represent clients before the IRS in audits, collections or appeals. If your case needs that, we'll tell you that you need an Enrolled Agent or tax attorney. The full detail is on our disclosures page.
A Preparer Tax Identification Number. The IRS requires every paid tax preparer to hold one and renew it each year. Qeihan has one. It's a registration, not a qualification, so we don't present it as one.
Qeihan Anderson, founder and principal advisor. He has a BS in Finance from The College of New Jersey, and his background is in corporate tax, financial analysis and international financial operations. More on the about page.
Soarx Tax & Advisory LLC is a New Jersey LLC based in Teaneck, NJ. You don't need to be nearby. Everything runs online with secure document sharing, and federal returns like Form 5472 can be prepared for LLC owners anywhere in the world.
Federal law (section 7216 of the tax code) limits how a preparer can use or share your return information without your consent. Documents are shared through a secure workspace, and we ask you not to send sensitive documents by ordinary email.
Email info@soarxtax.com or call +1 (201) 645-8625, Monday to Friday, 9am to 6pm ET. Or book a 30 minute call with Qeihan. Other ways are on the contact page.
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