FileTax, a CPA, or doing it yourself
There are three ways to file Form 5472 and the pro forma 1120. This page is an honest account of when each one is the right choice, including when we are not.
Missing this filing carries a $25,000 penalty per form, per year, so the question is rarely whether to file. It is who should prepare it.
| Doing it yourself | FileTax | A CPA | |
|---|---|---|---|
| Cost for one tax year | Free, plus your time | $99 | $400 to $900 |
| Catching up on missed years | You write the reasonable cause statement yourself | $99 per year, plus one $199 letter covering every year | Usually billed per year, letter included |
| More than one foreign related party | One Form 5472 per party, prepared by you | +$25 per additional party, per year | Included, at the hourly rate |
| Fiscal-year and final returns | Possible, but the period dates are easy to get wrong | Supported | Supported |
| Correct IRS form revision for each year | Your responsibility to find the right one | Selected automatically by tax year | Handled |
| Where your data goes | Stays with you | Held by us, EIN and foreign tax ID encrypted, no bank login, no statements | You send documents to your accountant |
| Turnaround | However long it takes you | About 10 minutes for a straightforward year, same day | Days to weeks, depending on their workload |
| Judgement on a complicated position | None | No. If your case is not a fit, we say so and refer you out | Yes, this is what you are paying for |
A worked example: 3 missed years
This is the most common situation we see. The LLC was formed a few years ago, nobody mentioned Form 5472, and the owner found out from a bank, an acquirer, or an accountant.
- With FileTax$496
3 years at $99, plus one $199 reasonable cause letter covering all 3
- With a CPA$1,200 to $2,700
at $400 to $900 per year
- YourselfFree
plus the reading, and the risk of getting the form revision or the period dates wrong
CPA figures are a typical range for this filing, not a quote. Ask for one.
When you should not use FileTax
We are not the right answer for every LLC. Go to a CPA if any of these apply to you:
- Your LLC is not a single-member LLC. More than one member, or taxed as a corporation, means a different return.
- You have a U.S. footprint. U.S.-source income, staff, or premises puts your own return in question, and this flow does not prepare it.
- The IRS has already contacted you about a penalty. Responding to a notice is a different position from a voluntary catch-up.
- You are not sure what your LLC actually did in a given year. The numbers have to come from somewhere before any form can be filled in.
Our eligibility check screens for most of this and will tell you to see a CPA rather than taking your money. Run the check.
Find out where you stand
The eligibility check takes about a minute and tells you honestly whether we can help. Your answers to it stay in your browser: nothing reaches us until you start a filing and enter your details.