Dual Citizenship and U.S. LLC Tax Filing: Are You a U.S. Person? (Form 5472)

Dual Citizenship and U.S. Person Status

If you hold dual citizenship and one of your citizenships is U.S. citizenship, the IRS treats you as a U.S. person — period. It does not matter that you also hold another nationality or that you may primarily reside in another country.

The IRS Rule Is Absolute

When it comes to the IRS, holding U.S. citizenship in any capacity means you are a U.S. person. This applies even if you were born abroad to a U.S. parent and have never lived in the United States. As long as you have U.S. citizenship, you are subject to U.S. tax filing requirements as a U.S. person.

This has significant implications for LLC ownership. If you are a dual citizen with U.S. citizenship, you are not a 'foreign owner' of your U.S. LLC — you are a domestic owner. This means Form 5472 filing requirements for foreign-owned disregarded entities would not apply to you.

Implications for Tax Filing

Dual citizens who are U.S. persons must file U.S. tax returns reporting their worldwide income, just like any other U.S. citizen. If you own a single-member LLC, the LLC is a disregarded entity and its income flows through to your personal tax return (Form 1040).

You would not file Form 5472 because you are not a foreign person. However, you may have other filing requirements depending on your foreign financial accounts and assets (such as FBAR or Form 8938).