How to submit DIIRSP if I need it at all?
In Aug 2017 I used online service to form LLC in WY and I became a foreign owner of disregarded LLC. My LLC since then hasn’t yet traded and never had a bank account up to now (2024). So there were no income, expenses or any other transactions. I have been paying Annual Report via wyobiz.wyo.gov website and I was confident that I have done all what’s required to be compliant for taxes. This year 2024 I decided to open it for business and start to search information how to open a bank account. This was the first time I’ve learned about form 5472 & proforma 1120. From different online sources I can conclude that I was still required to fill this form and indicate no transactions but because of the the Part V in case the Annual Reporting I’ve done from my personal bank card to the state is deemed as a capital contribution.
I still have a hope that Annual Reporting is not the capital contribution as there were no transactions between my personal and LLC account as I mentioned above I’ve had no LLC bank account. Secondly it seems it’s not taxable payment because it is looks like it’s tax payment itself – in my annual report it says: “License Tax Paid”. And as I understood only taxable payments are subjected to information return.
In case I still had to file all these 6 years plus upcoming filling on 15 April 2024. I found that there several ways to submit late filled 6 forms.
1. Streamlined Filing Compliance Procedures (SFCP).
It doesn’t apply because it has requirement that says “For individuals who are not eligible for an SSN or ITIN, your tax return will not be processed under the streamlined procedures.”
2. First-time penalty abatement.
It doesn’t apply because of “The taxpayer has not been required to file the same return, or no tax modules for the same return are delinquent, for the three years preceding the penalized tax period”
3. Reasonable cause.
My failure to fill is not willful neglect and I have reasonable cause that I was not much fluent in English at the time of entity formation to perform proper research. It was at such scale that I was also unaware about registered agent service that was linked to my LLC and I considered it scam when they sent me bills for their service so I haven’t paid it all this years. But I wasn't assessed a 5472 penalty thus seems I can’t send reasonable cause and send all filled 6 missed forms followed by current one.
4. Delinquent International Information Return Submission Procedures (DIIRSP) Taxpayer may file the delinquent information return(s) through amended return filing procedures (for example, attached to Form 1120X, Amended U.S. Corporation Income Tax Return) and attach a reasonable–cause statement to each delinquent information return filed for which reasonable cause is being asserted.
What should I do and in what is sequence of steps since I’m first-time 5472 filer? In case must submit all, shall I try DIIRSP then how to do it exactly?
Yours sincerely
Alexander K.
Answers
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Hello,
Currently we do not support reporting information for publicly traded partnerships in our software. I recommend you get advice from another source since that is currently not something we support and are unable to provide answers for. Sorry.
