Form 5472 and U.S. Tax Filing Update: September 2026
- Arik Rozen (CPA, MBA)
- 5 hours ago
- 11 min read
Published September 2026 | By Arik Rozen, CPA, MBA | Virginia License No. 025991
Arik Rozen, CPA, MBA Head of Tax Filing, Form5472.online
Virginia CPA License No. 025991 | Verified at dhp.virginia.gov
QUICK SUMMARY
Court ruling (February 2026): The Second Circuit confirms the IRS can administratively collect Section 6038(b) penalties. Directly affects Form 5471 filers. Narrows the Farhy window. What it does and does not mean for Form 5472.
New law (IRC Section 4475, effective January 1, 2026): The OBBBA 1% remittance excise tax on cash-funded cross-border transfers is now in effect. Bank wire transfers are exempt. Separate from Form 5472.
IRS administrative (July 2026): The IRS removed its published guidance for penalty-free late FBAR filings. The IRM examiner instructions still exist. Who is affected and what changed.
Deadlines: Remaining 2026 deadlines (September 15, October 15, December 15) and the full 2027 upcoming filing season (January 15 through June 15).
IN THIS UPDATE
Three developments are worth tracking this month. A federal appeals court ruling has strengthened the IRS's enforcement position on international information return penalties. A new excise tax on cash-funded cross-border transfers under the One Big Beautiful Bill Act is active for 2026. And the IRS removed a published guidance page that had provided a predictable penalty-free path for late FBAR filers since 2014. Each item below states what is confirmed, cites its source, and marks where uncertainty remains. The deadline section covers every relevant date from now through the 2027 filing season.
COURT RULING
1. Safdieh v. Commissioner: What the Court Decided and What It Means for Form 5472
On February 27, 2026, the U.S. Court of Appeals for the Second Circuit issued its decision in Safdieh v. Commissioner (No. 25-501-cv, 169 F.4th 102). The court reversed the Tax Court and held that the IRS may collect IRC Section 6038(b) penalties through administrative assessment, without first obtaining a judgment in federal district court. The Second Circuit joined the D.C. Circuit as the only other federal appeals court to have ruled on this question.
Sources: Safdieh v. Commissioner, 169 F.4th 102 (2d Cir. 2026) via FindLaw; Miller & Chevalier; RKL CPA; Chamberlain Hrdlicka
What the Case Was About
Joseph Safdieh failed to file Form 5471 for tax years 2005 through 2009 and was assessed $50,000 in penalties under IRC Section 6038(b). The Tax Court granted him summary judgment, holding as it had in Farhy that the IRS lacked statutory authority to assess these penalties administratively. The Second Circuit reversed, finding that Section 6038(b) penalties are "assessable penalties" under Section 6201(a) based on the legislative history, purpose, and structure of the statute.
The Farhy Timeline
In 2023 the Tax Court ruled in Farhy v. Commissioner that Section 6038(b) penalties were not administratively assessable. The D.C. Circuit reversed Farhy on appeal in May 2024. Safdieh is the Second Circuit reaching the same conclusion. Two federal circuits have now confirmed the IRS's direct collection authority. For taxpayers in those circuits, the Farhy defense on Section 6038(b) is effectively over.
What This Means for Form 5472
Safdieh is a Section 6038(b) ruling, not a Section 6038A ruling. The Form 5472 $25,000 penalty is imposed under IRC Section 6038A(d), a separate statutory provision. Neither Safdieh nor Farhy directly decided whether Section 6038A penalties are administratively assessable.
Legal commentators have noted since the original Farhy decision that Section 6038A mirrors the same penalty framework as Section 6038, and that the reasoning could extend to Form 5472 by analogy. Tax Notes separately documented that the IRS has automatically assessed Section 6038A penalties since 2013 when Form 5472 is filed late. No court has overturned or directly addressed that IRS practice.
What remains open: The assessability of Section 6038A penalties for Form 5472 is not settled by Safdieh. The appellate trend is adverse to the taxpayer position, but no circuit court has ruled directly on Section 6038A. For circuits other than the Second and D.C. Circuits, even the Section 6038(b) question on Form 5471 remains open.
ARIK'S NOTE
The IRS has assessed Section 6038A penalties automatically since 2013. I have never advised clients to rely on a Farhy-type argument for Form 5472, and Safdieh makes that position harder to sustain with each passing circuit ruling. The guidance has not changed: file on time, file complete, document every reportable transaction. If you have a penalty already assessed and are considering a legal challenge, work with tax litigation counsel who knows your specific circuit and the exact statute at issue.
NEW LEGISLATION
2. OBBBA Remittance Tax: IRC Section 4475 Is Now in Effect
The One Big Beautiful Bill Act (Public Law 119-21, signed July 4, 2025) added IRC Section 4475 to the Internal Revenue Code through OBBBA Section 70604. The provision imposes a 1% excise tax on certain outbound remittance transfers made after December 31, 2025. The tax is active for transfers made in 2026.
Sources: OBBBA Section 70604 / IRC Section 4475; IRS Notice 2025-55; NATP; Kahn Litwin; BASTA Croop
What the Tax Covers
Section 4475 applies when the sender funds a cross-border transfer using cash, a money order, a cashier's check, or a similar physical payment instrument. The tax is 1% of the transfer amount, collected by the remittance transfer provider and remitted to the IRS quarterly via Form 720. Transfers funded from a U.S. bank account, debit card, or credit card are explicitly exempt. The statute targets cash-instrument-funded transfers only.
Scope still developing: IRS Notice 2025-55 grants limited deposit-penalty relief to remittance transfer providers for the first three calendar quarters of 2026. This applies to providers, not to senders, and does not exempt transfers from the 1% obligation itself. Treasury published proposed regulations in April 2026 including anti-avoidance rules. Full implementing guidance is not yet final.
How It Intersects with Form 5472
Form 5472 and the Section 4475 remittance tax are separate obligations under separate Code sections. Form 5472 reports the existence and amount of a reportable transaction between the LLC and its foreign owner. Section 4475 applies, if at all, based on how the sender funded the specific outbound transfer. Satisfying one does not satisfy the other.
ARIK'S NOTE
For most foreign LLC owners who move money through standard bank-to-bank wire transfers, Section 4475 does not apply based on the current statute. The question to ask for each client is whether any cash-instrument transfers occurred during 2026. For the large majority, they did not. Where there is any ambiguity, that is a fact-specific analysis against the proposed regulations, which are not yet final.
IRS ADMINISTRATIVE
3. IRS Removes Public FBAR Delinquency Guidance
On July 1, 2026, the IRS removed its Delinquent FBAR Submission Procedures webpage from IRS.gov without any formal announcement or replacement guidance. The page had existed since 2014 and provided a published commitment that qualifying taxpayers could file late FBARs without penalty, provided they had not been contacted by the IRS and had properly reported all related income and paid all tax owed.
Sources: 1040 Abroad, July 3, 2026; 1040 Abroad, August 5, 2026; Kaufman Rossin; Forbes, July 2, 2026
What Changed and What Did Not
The public webpage is gone. IRM Section 4.26.16.3.11, last updated August 2025, still instructs IRS examiners not to assert civil FBAR penalties against non-willful filers who meet the qualifying conditions. The IRM provision has not been revised. What taxpayers lost is a published assurance they could point to. The relief path remains in the IRM but now depends on examiner discretion rather than a public IRS commitment.
FBAR applies to U.S. persons, not all foreign LLC owners. FinCEN Form 114 is required for U.S. citizens, U.S. residents, and U.S. entities with a financial interest in or signature authority over foreign financial accounts exceeding $10,000 in aggregate at any point during the calendar year. Many non-resident foreign founders of U.S. LLCs are not U.S. persons for FBAR purposes. This item is relevant to the subset of Form 5472 filers who are also U.S. persons or who have become U.S. residents.
ARIK'S NOTE
Some clients who come to us for Form 5472 compliance also have FBAR obligations, typically those who have acquired U.S. residency or hold accounts in multi-jurisdiction structures. For that group, the voluntary disclosure calculus has shifted. The path that produced predictable results in 2025 is no longer backed by a public IRS commitment. The IRM guidance still exists, but relying on examiner discretion is a different risk profile. Coordinate the disclosure strategy carefully before filing anything.
UPCOMING DEADLINES
4. U.S. Tax Deadlines: Remaining 2026 and the 2027 Filing Season
All dates below are for calendar-year entities filing on the January through December tax year. Fiscal-year entities follow different rules. If any deadline falls on a Saturday, Sunday, or federal holiday, it shifts to the next business day. Verify exact dates at IRS.gov before filing. State filing deadlines are separate and are not shown here.
REMAINING 2026 DEADLINES
September 15, 2026Extended partnership and S corporation returns
Final deadline for calendar-year multi-member LLCs taxed as partnerships (Form 1065) and S corporations (Form 1120-S) that filed a timely extension in March 2026. Schedule K-1s must be issued to all partners and shareholders by this date. No second extension is available.
Forms: Form 1065 (multi-member LLC / partnership) or Form 1120-S (S corporation).
What to do now: If a timely extension was filed, complete and file the return today. If no extension was filed and the March 2026 deadline was missed, speak with a CPA immediately. The late-filing penalty on Form 1065 accrues per partner per month.
September 15, 2026Q3 2026 estimated tax payment
Third installment of 2026 estimated federal income tax for individuals and entities with U.S.-source income not subject to withholding, including partners receiving K-1 income, rental income, and active U.S. business owners.
Forms: Form 1040-ES (individuals) or Form 1120-W (corporations). Payment via IRS Direct Pay or EFTPS.
What to do now: Confirm whether estimated payments apply to your situation. Not every foreign LLC owner has a U.S. estimated tax obligation. Review U.S.-source income and prior 2026 payments before acting.
October 15, 2026Extended Form 5472 and pro forma 1120 — foreign-owned single-member LLC
Final deadline for a calendar-year foreign-owned disregarded entity that filed a timely Form 7004 by April 15, 2026. This is the last date to file Form 5472 attached to the pro forma Form 1120 for the 2025 tax year. No further extension is available.
Forms: Form 5472 attached to pro forma Form 1120. Mail or fax only to IRS Ogden, UT. Cannot be e-filed. Write "Foreign-owned U.S. DE" across the top of Form 1120. Mailing address: IRS, 1973 Rulon White Blvd, M/S 6112, Attn: PIN Unit, Ogden, UT 84201.
What to do now: Document every reportable transaction for 2025, complete Form 5472 and the pro forma Form 1120, and send by certified mail with delivery confirmation. If no extension was filed and the April 15 deadline was missed, a $25,000 penalty may already apply. Contact a CPA before filing late.
October 15, 2026Extended Form 1120 and Form 5472 — C corporation (2025 tax year)
Final deadline for calendar-year C corporations that filed a timely Form 7004 by April 15, 2026. Includes any required Form 5472 for 25% or more foreign-owned corporations. No further extension is available.
Forms: Form 1120, with Form 5472 attached for each foreign related party with reportable transactions.
What to do now: Finalize Form 1120 and attach all required Forms 5472. The extension gave extra time to file, not extra time to pay. Any unpaid tax has been accruing interest since April 15, 2026.
October 15, 2026Extended Form 1040-NR — nonresident individual with U.S. wages (2025 tax year)
Extended deadline for nonresident individuals who received U.S. wages subject to withholding in 2025 and filed a timely Form 4868 extension by April 15, 2026.
Forms: Form 1040-NR. Filed electronically or by mail.
What to do now: Gather U.S. wage records and any W-2 or 1042-S forms. File Form 1040-NR and pay any remaining tax balance. Interest has been accruing since April 15, 2026.
December 15, 2026Extended Form 1040-NR — nonresident individual without U.S. wages subject to withholding (2025 tax year)
Extended deadline for nonresident individuals whose original deadline was June 15, 2026 and who filed a timely Form 4868 extension by June 15, 2026.
Forms: Form 1040-NR. Filed electronically or by mail.
What to do now: Gather U.S.-source income records including rental, investment, and business activity income. Do not wait until December to begin the return.
2027 FILING SEASON: 2026 TAX YEAR
January 15, 2027Q4 2026 estimated tax payment
Fourth and final 2026 estimated tax installment for individuals and entities with U.S.-source income not subject to withholding.
Forms: Form 1040-ES (individuals) or Form 1120-W (corporations).
What to do now: Review 2026 U.S.-source income through year-end and confirm whether this payment applies before January.
March 15, 2027Multi-member LLC (partnership) and S corporation — 2026 tax year
Original filing deadline for calendar-year multi-member LLCs taxed as partnerships and S corporations. Schedule K-1s must be issued to all partners and shareholders by this date. Note: March 15, 2027 falls on a Sunday. The filing deadline shifts to the next business day. Confirm the exact date at IRS.gov closer to filing.
Forms: Form 1065 (partnership / multi-member LLC) or Form 1120-S (S corporation). Extension: Form 7004 by the original deadline grants six months to September 15, 2027.
What to do now: Organize the LLC's 2026 income, expenses, partner details, contributions, and distributions before year-end. Confirm what records each partner must provide to the preparer so K-1s can be issued on time.
April 15, 2027Form 5472 and pro forma Form 1120 — foreign-owned single-member LLC — 2026 tax year
Original filing deadline for a calendar-year foreign-owned disregarded entity reporting 2026 activity. Form 5472 must be attached to a pro forma Form 1120. Cannot be e-filed. Must be sent by mail or fax.
Forms: Form 5472 attached to pro forma Form 1120. Mailing address: IRS, 1973 Rulon White Blvd, M/S 6112, Attn: PIN Unit, Ogden, UT 84201. Fax: 855-887-7737. Extension: Form 7004 by April 15, 2027 (mail or fax only, cannot be e-filed) grants six months to October 15, 2027. Write "Foreign-owned U.S. DE" across the top of both Form 7004 and Form 1120.
What to do now: Track every payment, transfer, or transaction between the LLC and the foreign owner or any related party throughout 2026. Each one is a potentially reportable transaction. Keep records with amounts, dates, and descriptions. Begin preparing in early Q1 2027.
April 15, 2027C corporation — Form 1120 and Form 5472 — 2026 tax year
Original filing deadline for calendar-year C corporations for the 2026 tax year. A separate Form 5472 is required for each foreign related party with reportable transactions if the corporation is 25% or more foreign-owned.
Forms: Form 1120, with Form 5472 attached per required related party. Extension: Form 7004 by April 15, 2027 grants six months to October 15, 2027.
What to do now: Identify all foreign related parties and document every related-party transaction during 2026. Each party with reportable transactions requires a separate Form 5472. Begin the count before year-end.
April 15, 2027Form 1040-NR — nonresident individual with U.S. wages — 2026 tax year
Filing deadline for nonresident individuals who received U.S. wages subject to withholding in 2026, or whose LLC activity creates a U.S. place of business for tax purposes.
Forms: Form 1040-NR. Extension: Form 4868 by April 15, 2027 grants six months to October 15, 2027.
What to do now: Confirm whether your U.S. LLC activity creates a U.S. trade or business for personal return purposes. This is a separate question from the Form 5472 obligation.
June 15, 2027Form 1040-NR — nonresident individual without U.S. wages subject to withholding — 2026 tax year
Automatic extended deadline for nonresident individuals with U.S.-source income not subject to wage withholding, where no U.S. wages were received in 2026.
Forms: Form 1040-NR. Extension: Form 4868 by June 15, 2027 grants six additional months to December 15, 2027.
What to do now: Confirm which 1040-NR deadline applies to your situation. The April or June date depends on the nature of your U.S. income and whether any wages were subject to withholding during 2026.
All dates are for calendar-year entities. Fiscal-year entities follow different rules. Weekend and holiday shifts apply. Verify every date at IRS.gov before filing. State deadlines are not shown here.
About this update. This is the September 2026 edition of the Tax USA Inc. Form 5472 and U.S. Tax Filing Monthly Update, a practitioner summary of verified developments in IRS administration, court decisions, and legislation affecting Form 5472 filers and foreign-owned U.S. entities. Each item cites its source. Where uncertainty remains, this update says so. Prior editions are available at form5472.online/updates.
About the author. Arik Rozen, CPA, MBA, is Head of Tax Filing, Form5472.online. Arik prepares and signs every Form 5472 return the firm submits. Virginia CPA License No. 025991, verified at dhp.virginia.gov.
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