You incorporated your LLC through Stripe Atlas and started processing payments. Your Delaware LLC is up and running. But if you are a non-US founder, there is a critical IRS filing requirement that Atlas does not handle for you, and missing it can cost you $25,000.
$25,000 penalty per year. Every foreign-owned US LLC must file Form 5472 + pro forma Form 1120 with the IRS annually. This is an informational filing, not a tax payment. But the penalty for skipping it is one of the highest in the IRS code.
Why Stripe Atlas Founders Need to Know This
Stripe Atlas makes it incredibly easy to incorporate a Delaware LLC. What it does not do is file your annual IRS forms for you. Atlas provides access to PwC tax guidance and connects you with accountants, but the actual compliance is your responsibility.
Here is the problem: many foreign founders do not learn about Form 5472 until a year or two after incorporation, by which point they may already owe penalties. The IRS has been increasingly aggressive about enforcing this requirement, and in 2026, penalty notices are now automated.
Do You Need to File? Quick Check
If all three of the following are true, you are required to file Form 5472 every year:
- You own a US LLC (including one created through Stripe Atlas)
- You are not a US citizen or permanent resident
- Your LLC existed at any point during the tax year
Zero income? Still must file. The filing requirement is based on ownership, not revenue. Even if your Atlas LLC had $0 in revenue, you must file Form 5472 if any reportable transaction occurred. Funding your LLC counts as a reportable transaction.
Key Dates for Atlas Founders
What Exactly Do You File?
The filing package consists of two forms:
1. Pro Forma Form 1120 (US Corporate Income Tax Return)
This is mostly zeros. Your single-member LLC is a "disregarded entity" for tax purposes, meaning it does not owe corporate income tax. The 1120 is filed only as a vehicle to carry Form 5472 to the IRS. You fill in the LLC name, address, EIN, and leave almost everything else blank or zero.
2. Form 5472 (Information Return of a 25% Foreign-Owned US Corporation)
This is the actual substance. Form 5472 reports all "reportable transactions" between you (the foreign owner) and your LLC during the tax year. For a typical Atlas founder, reportable transactions include:
- Capital contributions — money you transferred to fund the LLC
- Distributions — money you took out of the LLC to your personal account
- Payments for services — if you paid yourself or the LLC paid for your personal expenses
- Stripe Atlas incorporation fee — if you paid it from personal funds on behalf of the LLC
- Registered agent fees — annual fees paid to maintain your Delaware LLC
Stripe payments are NOT reportable. Revenue from your customers (via Stripe) is a third-party transaction between Stripe and your LLC. Only transactions between you personally and your LLC go on Form 5472.
How to File: Step by Step
Gather your bank statements
Download your LLC bank statements (Mercury, Relay, or whichever bank you use) for the entire tax year. These show every transaction between you and the LLC.
Identify reportable transactions
Go through the statements and flag every transfer between you personally and the LLC. Capital contributions (money in), distributions (money out), and any payments for services. Ignore customer payments and vendor expenses.
Fill out Form 5472
Enter your LLC info in Part I, your personal info in Part II, and the dollar amounts of each transaction category in Part V. If a category does not apply, enter zero (do not leave it blank).
Fill out the pro forma 1120
Enter your LLC name, address, EIN, and date of incorporation. Everything else is zero. Check the box for "initial return" if this is your first year.
Submit to the IRS via fax
Form 5472 cannot be e-filed. Fax the complete package to the IRS at +1-855-887-7737. This is faster than mailing and gives you instant delivery confirmation.
Your Options: CPA vs. DIY vs. Filabl
| Traditional CPA | Do It Yourself | Filabl | |
|---|---|---|---|
| Cost | $500 – $1,500 | Free | From $30/year |
| Time | 5 – 10 days | 2 – 4 hours | Under 20 minutes |
| IRS submission | Usually not included | You figure it out | Faxed directly to IRS |
| Transaction classification | Manual (you explain each one) | Manual (you read IRS instructions) | AI reads your bank statement |
| Delivery confirmation | Depends on CPA | Only if you fax yourself | Included with every filing |
| Best for | Complex multi-entity structures | Very simple LLCs, tax knowledge | Atlas founders who want it done fast |
Common Mistakes Atlas Founders Make
1. Not knowing the filing exists
Atlas emails mention tax obligations in general terms, but many founders miss the specific Form 5472 requirement until they receive a penalty notice or hear about it from other founders.
2. Thinking zero revenue means no filing
If you funded your LLC with even $1, that is a reportable transaction. The filing is required regardless of income. Many Atlas LLCs sit dormant for months before generating revenue, but the filing is still due.
3. Filing the 5472 without the pro forma 1120
Form 5472 cannot be submitted alone. It must be attached to a pro forma Form 1120. The IRS treats a 5472 without the 1120 as "incomplete" and may assess the full $25,000 penalty.
4. Missing the Stripe Atlas fee as a reportable transaction
The $500 you paid Stripe Atlas for incorporation was likely paid from your personal funds on behalf of the LLC. That counts as a capital contribution and is a reportable transaction on Form 5472.
5. Trying to e-file
Form 5472 for disregarded entities cannot be e-filed. It must be faxed or mailed. Many founders waste time trying to submit electronically before discovering this.
What If You Already Missed a Filing?
If you incorporated with Atlas in a previous year and never filed Form 5472, do not panic. File as soon as possible. The IRS has a reasonable cause exception for first-time filers who voluntarily come into compliance before the IRS contacts them. This means:
- File your overdue Form 5472 immediately
- Include a statement explaining that you were unaware of the requirement
- The IRS typically waives the penalty for first-time voluntary compliance
The key word is "voluntarily." If you file before the IRS sends you a notice, your chances of penalty abatement are significantly higher.
Do not wait. Once the IRS sends a notice, you have 90 days to respond. After that, an additional $25,000 penalty is assessed every 30 days with no cap. File now.
File Your Form 5472 with Filabl
Filabl was built for exactly this situation: foreign founders with US LLCs who need to stay IRS-compliant without spending $1,000+ on a CPA. Upload your bank statement, our AI classifies your transactions, and we generate and fax your forms directly to the IRS. The entire process takes under 20 minutes.
If you incorporated through Stripe Atlas, you already have everything you need to get started: your LLC name, EIN, and bank statements. That is all Filabl needs to generate your filing.