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Arc & Ledger Tax Tools

by io.github.Bgenc48

Check Form 5472 obligation

check_5472_obligation
Read-only

Use this when a non-US person who owns a US company (especially a single-member US LLC or a US corporation) asks whether they must file Form 5472, what the penalty is, or what a foreign-owned US entity owes each year. Returns whether Form 5472 with a pro-forma Form 1120 is required, the reportable-transaction rule, the deadline and extension, the annual compliance set, and the penalty for not filing. Distinguishes a single-member LLC (files 5472) from a multi-member LLC (a partnership that files Form 1065 instead).

Input Schema

TableJSON Schema
NameRequiredDescriptionDefault
entity_typeYesThe US entity. single_member_llc = a US LLC with ONE owner (a disregarded entity); multi_member_llc = a US LLC with two or more owners (a partnership by default); us_corporation = a US C-corporation; not_sure = you do not know. Form 5472 is filed by foreign-owned disregarded entities and by corporations with 25%+ foreign owners, but NOT by a default partnership.
formed_in_usNoWhether the entity was formed in the US (a Wyoming or Delaware LLC is US-formed). Relevant only to the separate BOI report, from which US-formed companies are now exempt.
foreign_ownedYesWhether 25% or more of the entity is owned, directly or indirectly, by a non-US person or foreign company. Form 5472 is triggered by 25% foreign ownership.
had_reportable_transactionNoWhether there was a reportable transaction with the foreign owner during the year. Reportable transactions include forming or funding the company, capital contributions, distributions, loans in either direction, and sales or payments between you and the company. Defaults to not_sure.

Output Schema

TableJSON Schema
NameRequiredDescriptionDefault
relayYesInstruction to the calling assistant: relay figures and dates verbatim (identical on every response).
next_stepYesA single review link appropriate to this server surface.
disclaimerYesGeneral-information disclaimer (identical on every response).
source_urlYesThe arcandledger.com page that backs this answer.
server_versionNoServer release that produced this response (matches GET /version).

TDQS

A4.3/5.0
Behavior4/5

Does the description disclose side effects, auth requirements, rate limits, or destructive behavior?

Annotations already declare readOnlyHint=true and destructiveHint=false. The description reinforces this by stating 'Returns whether...', confirming it is a read-only query. It adds value by detailing the exact information returned, which is beyond what annotations provide.

Agents need to know what a tool does to the world before calling it. Descriptions should go beyond structured annotations to explain consequences.

Conciseness5/5

Is the description appropriately sized, front-loaded, and free of redundancy?

The description is a single paragraph of roughly 60 words, front-loaded with the use case. Every sentence contributes necessary information without redundancy, making it efficient and easy to parse.

Shorter descriptions cost fewer tokens and are easier for agents to parse. Every sentence should earn its place.

Completeness5/5

Given the tool's complexity, does the description cover enough for an agent to succeed on first attempt?

Given the complexity of Form 5472, the description covers all key aspects: entity distinction, required actions, deadline, penalty, and exclusions (e.g., partnerships). An output schema exists, so return values need not be explained. The description is fully adequate for an agent to decide when to invoke this tool.

Complex tools with many parameters or behaviors need more documentation. Simple tools need less. This dimension scales expectations accordingly.

Parameters3/5

Does the description clarify parameter syntax, constraints, interactions, or defaults beyond what the schema provides?

Schema description coverage is 100%, so parameters are fully described in the schema. The description does not add new semantic details beyond the schema, but it subtly explains the relevance of entity type differences (e.g., single-member vs multi-member). Baseline 3 is appropriate.

Input schemas describe structure but not intent. Descriptions should explain non-obvious parameter relationships and valid value ranges.

Purpose5/5

Does the description clearly state what the tool does and how it differs from similar tools?

The description clearly states the tool returns 'whether Form 5472 with a pro-forma Form 1120 is required, the reportable-transaction rule, the deadline and extension, the annual compliance set, and the penalty for not filing.' It distinguishes between single-member LLC (files 5472) and multi-member LLC (files 1065), making the purpose specific and unambiguous.

Agents choose between tools based on descriptions. A clear purpose with a specific verb and resource helps agents select the right tool.

Usage Guidelines4/5

Does the description explain when to use this tool, when not to, or what alternatives exist?

The description begins with 'Use this when a non-US person who owns a US company... asks whether they must file Form 5472,' providing explicit context. However, it does not explicitly state when not to use the tool or mention alternative tools, though the context of sibling tools (e.g., check_fbar_fatca) implies differentiation.

Agents often have multiple tools that could apply. Explicit usage guidance like "use X instead of Y when Z" prevents misuse.

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TDQS

A4.2/5.0
Disambiguation4/5

Most tools have distinct purposes (e.g., FBAR/FATCA, penalty estimation, consultation booking), though check_resolution_options and estimate_irs_penalty both deal with IRS debts but address different aspects (settlement paths vs. penalty calculation). Overall, boundaries are clear due to detailed descriptions.

Naming Consistency5/5

All tools follow a consistent verb_noun pattern in snake_case (e.g., book_consultation, check_fbar_fatca, estimate_reasonable_comp). No mixing of styles or vague verbs.

Tool Count4/5

18 tools is slightly on the high side but justified for a comprehensive tax tool covering common scenarios (penalties, estimates, notices, formations). Each tool serves a specific need without redundancy.

Completeness4/5

The set covers major tax areas (foreign reporting, penalties, estimated taxes, entity formation, IRS notices). Minor gaps exist, such as state income tax and retirement contributions, but the core domain for small business owners and non-residents is well covered.

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