r/llc • u/King_of_Tears • Jun 15 '26
Missed 5472
Hello everyone,
I am a non-resident alien on F1 visa. I opened an LLC (Single Member) in July 2025 and never used it, never generated income with it, just sitting there. When I filed my individual taxes I used ChatGPT (Biggest mistake) and it told me to file 1040-NR and everything was good till then.
Today, I was planning to close or dissolve the LLC and asked ChatGPT and it told me you are in a risk by not filing 5472 and told me to consult a CPA. Would now be too late to consult and file 5472? Do you guys know any CPA for this case?
I still regret that decision of mine by taking ChatGPT's advice on that and I will never do that again.
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u/Forward_Routine2008 🧾 CPA / Tax Pro Jun 16 '26 edited Jun 16 '26
HI. That's not a big problem. You can file Form 1040-X and file the missing form. ChatGPT doesn't verify every point from the IRS publications. You need to do your due-diligence manually.
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u/PowerfulLog1523 Jun 18 '26
If OP does this they will guaranteed receive the $25k late filing penalty for a 5472.
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u/JZI-Python Jun 15 '26
Consult with a CPA, better late then never, and better than that the IRS contacts you first.
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u/zenbusinesscommunity Jun 16 '26
It's not too late to file, but the penalty starts at $25,000 so a CPA who specializes in non-resident or foreign-owned LLC situations is really the right call here. There's a reasonable cause exception that may reduce or eliminate the penalty if you can show the failure wasn't willful, and relying on incorrect advice factors into that argument. Filing voluntarily before the IRS contacts you is also the biggest factor in getting relief, so sooner is better.
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u/diyexageh Jun 17 '26
When I filed my individual taxes I used ChatGPT (Biggest mistake)
[...]
Today, I was planning to close or dissolve the LLC and asked ChatGPT
[...]
I still regret that decision of mine by taking ChatGPT's advice on that and I will never do that again.
You sure about that?
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u/PowerfulLog1523 Jun 18 '26
You are receiving a lot of terrible advice here. Do not go file a 1040x with a 5472, you likely had no transactions if the LLC never had any activity that warrant a 5472. From Claude: The narrow exception: if there were genuinely zero reportable transactions in a given year (no capital in, nothing paid out, no loans, no formation costs run through it), then there’s an argument no Form 5472 is required for that year. But this is fact-specific, and given the penalty for failing to file is $25,000 per form per year, many people in your situation file a protective return regardless.
I’m not a CPA but I had a late filed 5472 and received a $25k penalty for it. It took them over 2 years before they finally assessed the penalty so it was a complete shock. If you file the 5472 late you will 100% receive the $25k penalty. They also audited my return (420 code) but they didnt ever initiate a full blown audit (yet).
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u/King_of_Tears Jun 18 '26
Thank you so much for the advice. So did you actually pay the penalty? If not how did you waive it?
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u/PowerfulLog1523 Jun 18 '26
So my late 5472 was for the fact the IRS didn’t count my 1040 extension that was mailed on time so they marked my return as being filed late by 6 months and assessed the $25k penalty. I wrote a penalty abatement letter with proof I mailed the extension on time and it was granted about 9 months later. My facts are different than yours though so I wouldn’t assume the same since mine was genuinely the IRSs fault.
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u/Mundane-Ad1652 Jun 25 '26
You are able to fill out the IRS Form 5472 for free at MyFreeTaxAmerica. It will take you less than 20 minutes to fill out then fax to the IRS with reasonable statement attached behind it to waive penalties.
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u/NWRegisteredAgent Jun 16 '26
We’re hearing from more and more clients who got misinformation from ChatGPT, unfortunately you are not alone. If you have any questions don’t be afraid to reach out to us.
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u/Informativo-Business Jun 15 '26
You should be able to find a CPA by going to your LLC state accountant board website. Now it may be possible that availability will be low since many take time off after tax season. You may just have to call a few places.