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.
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.