Glossary

Tax

Pro forma return

A pro forma return is a tax form filed to satisfy a procedural requirement rather than to report tax liability. Foreign-owned single-member LLCs file a pro forma Form 1120, completing only identifying information, so that Form 5472 can be attached to it.

In plain terms: A mostly-blank form filed so another form has somewhere to go.

Why it matters

Knowing this exists prevents two errors: paying a preparer to complete a full corporate return that is not required, and assuming that because no income is reported, nothing needs filing.

Read the full guideUS business taxes

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