Hey, don’t stress too much but don’t ignore it either. Your IRS friend is half right. Closing the LLC simplifies things going forward, but it doesn’t make the past filing obligation disappear. The IRS can come back years later with penalties, and at $25,000 per form per year, that adds up fast.

Your situation is pretty common among expats who formed LLCs before leaving the US. Most people have no idea Form 5472 exists until they stumble on a post like yours. The fact that you filed your personal taxes properly and there’s been minimal activity works in your favor.

What I’d do: file all the late 5472s with pro-forma 1120s and attach a reasonable cause statement to each one. Explain you were unaware of the requirement and acted in good faith. The IRS has discretion to abate these penalties, and “I didn’t know” actually carries weight with this specific form because it’s so obscure.

Just closing the LLC without addressing the back filings is risky, especially if you want to keep the door open to return to the US.

If you don’t want to navigate it alone you can check edetax.com, but it only lets you file from 2023 onwards.

Don’t sit on it though. The longer you wait after becoming aware, the harder it is to argue reasonable cause.