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Form 5471 Penalty Calculator
Estimate potential penalties for late or missing Form 5471 filings under IRC §6038.
Calculator Inputs
How many Form 5471 filings are missing or were filed late?
Additional penalties apply after the IRS sends a notice of failure to file.
Estimated Penalty
This calculator provides a simplified estimate based on common penalty rules under IRC §6038. Actual penalties may vary depending on facts and circumstances, including reasonable cause determinations, amended filings, and IRS discretion. This is not tax advice.
Understanding the Rules
When Does the Form 5471 Penalty Apply?
Initial Penalty
Under IRC §6038, the IRS imposes a $10,000 penalty for each Form 5471 that is not filed, is filed late, or is filed incomplete.
Continuation Penalty
If the failure continues for more than 90 days after IRS notice, an additional $10,000 penalty is imposed for each 30-day period (or fraction thereof) during which the failure continues.
Maximum Penalty
The total additional continuation penalty is capped at $50,000 per form. Combined with the initial $10,000 penalty, the maximum total penalty per form is $60,000.
Reasonable Cause
Penalties may be abated if the taxpayer can demonstrate reasonable cause for the failure. This is a facts-and-circumstances determination.
Related Resource
Avoiding Penalties Starts with Accurate Filing
Many Form 5471 penalties result from errors that could have been caught before filing. Learn about the most common technical mistakes we see in our reviews.
Common Form 5471 MistakesConcerned About Penalties?
An Independent Review Can Help
If you are dealing with a late or complex Form 5471 filing, an independent technical review may help identify potential issues before submission. Catching errors before filing is far less costly than correcting them afterward.