What is Form 5472 and do I need it?

Form 5472 is a required IRS information return that reports transactions between a US company and its foreign owner. A foreign-owned single-member LLC files it every year with a pro forma Form 1120, even with no US income, and the penalty for not filing is US$25,000 per failure (IRS Instructions for Form 5472). Our preparation service is an add-on, quoted separately; no package includes it.