Regulations - Duplicate filing of Form 5472 not required 

June 5:  The Treasury Department and IRS today released for publication in the Federal Register final regulations (T.D. 9667) and proposed regulations (REG-114942-14) concerning taxpayers required to file Form 5472.

Both sets of regulations concern Form 5472, Information Return of a 25% Foreign-Owned U.S. Corporation or a Foreign Corporation Engaged in a U.S. Trade or Business.


  • Today’s final regulations [PDF 76 KB] affect certain 25% foreign-owned domestic corporations and certain foreign corporations that are engaged in a trade or business in the United States and that are required to file Form 5472. The final regulations are effective June 6, 2014—the scheduled date of their publication in the Federal Register.
  • Today’s proposed regulations [PDF 89 KB] would remove a current provision for timely filing of Form 5472 separately from an income tax return that is untimely filed. As a result, Form 5472 would be required to be filed in all cases only with the filer’s income tax return for the tax year by the due date (including extensions) of that return.

Summary

Regulations proposed in 2011 effectively removed a requirement for duplicate filing of Form 5472, regardless of whether the filer filed a paper or an electronic income tax return. It was determined that duplicate filing was no longer necessary for corporations that file Form 5472 either by a paper or electronic return because of advances in electronic processing and data collection by the IRS.


However, the preamble to the corresponding 2011 temporary regulations stated that a reporting corporation that does not timely file an income tax return still must timely file a paper Form 5472 without the income tax return. As a result, the only remaining provision for filing a Form 5472 separately from the filer’s income tax return would apply when the filer’s income tax return was not timely filed.


No comments were received with respect to the 2011 regulations, and no public hearing was requested or held. Accordingly, today’s final regulations adopt the 2011 proposed regulations without substantive change, and remove the corresponding temporary regulations.


In addition, today’s proposed regulations would remove Reg. section 1.6038A-2(e), which provides for a filer to file Form 5472 separately from an income tax return if the income tax return is untimely filed.


As a result, today’s proposed regulations would require that Form 5472 be filed in all instances only with the filer’s income tax return for the tax year by the due date (including extensions) of that return.




©2014 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative ("KPMG International"), a Swiss entity. All rights reserved.


The KPMG logo and name are trademarks of KPMG International.


KPMG International is a Swiss cooperative that serves as a coordinating entity for a network of independent member firms. KPMG International provides no audit or other client services. Such services are provided solely by member firms in their respective geographic areas. KPMG International and its member firms are legally distinct and separate entities. They are not and nothing contained herein shall be construed to place these entities in the relationship of parents, subsidiaries, agents, partners, or joint venturers. No member firm has any authority (actual, apparent, implied or otherwise) to obligate or bind KPMG International or any member firm in any manner whatsoever.


The information contained in herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation.


Direct comments, including requests for subscriptions, to us-kpmgwnt@kpmg.com.
For more information, contact KPMG's Federal Tax Legislative and Regulatory Services Group at:

+ 1 202 533 4366

1801 K Street NW
Washington, DC 20006.

Share this

Share this

Subscribe

Current and future KPMG clients may subscribe to TaxNewsFlash email alerts.


Email your contact information.

Other TaxNewsFlash publications

TaxNewsFlash-United States by year