Form 5472 Lines 1f, 1g, and 1h Explained
Calculate Form 5472 lines 1f, 1g, and 1h correctly. See gross transaction totals, multiple related parties, and a worked example.
Form5472 Prep
Reviewed filing guidance for foreign-owned LLCs
Plain English
No dense tax-code language
Actionable
Clear next steps and deadlines
Current
Last updated August 25, 2026
Form 5472 line 1f reports the gross US-dollar value for the foreign related party on that form; line 1g reports how many Forms 5472 the reporting entity files for the tax year; and line 1h reports the combined line 1f values across all those forms. Do not use net owner funding.
The three fields are a reconciliation system. Line 1f is per form, line 1g counts forms, and line 1h ties the entire filing package together.
For a checked calculation and filing, start the reviewed Form 5472 package.
What does Form 5472 line 1f report?
The IRS Instructions for Form 5472 direct the filer to enter the total US-dollar value of foreign related-party transactions reported in Parts IV and VI and, for a foreign-owned US disregarded entity, Part V. Line 1f belongs to the related party reported on that specific form.
Line 1f is gross, not net. If the foreign owner contributes $10,000 and later receives a $3,000 distribution, the per-form total is generally $13,000—not $7,000.
Do not complete line 1f for a form reporting a US related party, as the current IRS instructions specify.
What do lines 1g and 1h report?
Line 1g is the total number of Forms 5472 filed for the tax year, including the current form. Line 1h is the total gross value reported on line 1f across all Forms 5472 in the package.
The current Form 5472 PDF places all three reconciliation fields together in Part I, making the per-party, form-count, and package-total relationship visible on the face of the return.
| Field | Level | What to enter |
|---|---|---|
| 1f | One related-party form | Gross reportable value for that foreign related party |
| 1g | Entire reporting entity | Count of all Forms 5472 filed for the year |
| 1h | Entire reporting entity | Sum of line 1f across all forms |
Lines 1g and 1h should generally repeat consistently on every Form 5472 in the same filing package because they describe the entity-wide set.
How do the totals work with multiple related parties?
Assume a foreign-owned disregarded LLC had transactions with its individual owner and the owner’s foreign company:
| Related party | Contribution or payments received | Distribution or payments made | Line 1f |
|---|---|---|---|
| Individual owner | $10,000 contribution | $3,000 distribution | $13,000 |
| Owner’s foreign company | $2,500 related service payment received | $1,000 service payment made | $3,500 |
| Package total | $16,500 |
The LLC prepares two Forms 5472. Each form shows 2 on line 1g and $16,500 on line 1h. The owner’s form shows $13,000 on line 1f; the company’s form shows $3,500 on line 1f.
This example assumes both parties are foreign and the listed items are reportable on the applicable parts. Actual categorization should be confirmed from the contracts and ledger.
Which errors cause line 1 totals not to reconcile?
The most common errors are:
- netting contributions against distributions;
- using the LLC’s ending bank balance;
- reporting only cash and omitting owner-paid expenses or property;
- combining multiple related parties on one form;
- counting attachments instead of Forms 5472 on line 1g;
- copying one party’s line 1f into line 1h; and
- converting foreign currency inconsistently.
The multiple-related-parties guide explains when separate forms are required. The Part V statement guide shows how the attachment should support the totals.
How do you build a line 1f–1h reconciliation?
- Create one ledger tab per related party. Include all Part IV, V, and VI transactions that apply.
- Convert each item to US dollars. Preserve original currency, date, rate source, and calculation.
- Sum gross reportable values per party. Carry each result to that party’s line 1f.
- Count the related-party forms. Carry the total count to line 1g on every form.
- Add all foreign-party line 1f values. Carry the package total to line 1h on every form.
- Tie the forms back to statements and records. Resolve every difference before signature and submission.
A simple control equation is: sum of foreign-party line 1f amounts = line 1h. Line 1g must equal the number of forms physically included in the tax-year package.
Frequently asked questions
Is line 1f net or gross?
Gross. Add reportable amounts paid and received for that foreign related party rather than subtracting one direction from the other.
Does line 1g count related-party transactions?
No. Line 1g counts Forms 5472 filed for the tax year, generally one for each related party with reportable transactions.
Is line 1h the same on every Form 5472?
Generally yes within one reporting entity’s tax-year package. It represents the combined gross value across all Forms 5472, not just the party on the current form.
Do owner-paid expenses belong in line 1f?
They can. For a foreign-owned disregarded entity, owner-paid expenses described in Part V are included in the applicable form’s gross related-party value.
What if the related party is a US person?
Follow the current instructions carefully. Line 1f is not completed for a form whose reportable transaction is with a US related party, even though line 1g counts all Forms 5472 filed.
Lines 1f, 1g, and 1h should reconcile before the package is signed. Start a reviewed Form 5472 filing, or review how to fill out Form 5472.