All glossary terms
Glossary term
Foreign-Owned U.S. Disregarded Entity
A U.S. disregarded entity owned directly or indirectly by a foreign person and subject to special reporting rules.
Related terms
2
Jurisdictions
us
Definition
A foreign-owned U.S. disregarded entity is usually the structure sitting behind many Form 5472 compliance failures. Even when the entity is disregarded for income-tax classification purposes, it can still face separate information-reporting and recordkeeping obligations because of its foreign ownership.
Examples
- A single-member U.S. LLC owned by a non-U.S. person can be a foreign-owned U.S. disregarded entity.
- Zero operating revenue does not automatically eliminate the Form 5472 risk for this type of entity.
Related terms
Translations
ESentidad estadounidense ignorada de propiedad extranjera
ZH外国人拥有的美国被忽略实体
Citations
Instructions for Form 5472 · Reporting corporations and foreign-owned U.S. DEs
Primary sources
- Instructions for Form 5472 (12/2024)Verified 2026-05-01
Important disclaimer
This library is for general tax education only. Always verify filing obligations, due dates, and tax consequences against the cited primary source or with a qualified tax professional.