Transfer Pricing and How to Complete Form 5472

Author: Robert J. Misey

Per the IRS Education Provider Standards this course must be COMPLETED by 12/31/2026 to receive credits. NOTE: Go to My Professional Profile in your CCH CPELink account settings to ensure your name, and PTIN number; matches your PTIN card

With the expansion of global business, the number of foreign-owned U.S. companies has increased exponentially. These companies have significant intercompany transactions with their foreign parents that they have to report on the Form 5472, the Information Return of a 25% Foreign-Owned U.S. Corporation.

Publication Date: August 2023

Topics Covered

• The Form 5472 filing requirements
• Understanding the various parts of Form 5472
• Identifying the various intercompany transactions
• The methods to determine the arm's length price of intercompany transactions
• How to avoid the transfer pricing penalties
• Failing to file Form 5472 and the related penalties
• Completing a sample Form 5742

Learning Objectives

• Describe the tax law behind the informational requirements on Form 5472
• Recognize how to develop a practical understanding of U.S. international tax reporting and compliance with respect to foreign-owned U.S. corporations
• Identify the IRC Section that requires that intercompany transactions be priced at arm's length
• Identify the U.S. combined fed and state rate with respect to transfer pricing

Level
Basic

Instructional Method
Self-Study

NASBA Field of Study
Taxes (2 hours)

Program Prerequisites
None

Advance Preparation
None