Form 5472 Part V Statement Example

A Form 5472 Part V statement is an attachment that describes foreign-owned US disregarded entity transactions not already reported in Part IV, including formation funding, owner contributions, owner distributions, dissolution amounts, acquisitions and dispositions. The statement should show dates, descriptions, direction, US dollar amounts, conversion basis and totals.

Part V is where many otherwise careful filings become substantially incomplete. The form gives you only a checkbox, but the instructions require an attached statement describing the transactions. The IRS does not give a friendly template.

The IRS Instructions for Form 5472 state that Part V covers amounts paid or received in connection with formation, dissolution, acquisition and disposition of the entity, including contributions to and distributions from the entity. The same instructions state that a missing or substantially incomplete Form 5472 can trigger a $25,000 penalty. If you want the attachment prepared with the rest of the filing, we prepare Form 5472 packages from $149.

What does Form 5472 Part V require?

Part V requires the foreign-owned US disregarded entity to check the box when it had other reportable transactions not already entered in Part IV, and to describe those transactions on an attached statement.

The key phrase is "foreign-owned U.S. DE." A regular 25% foreign-owned US corporation may have Part IV or Part VI reporting, but the common single-member LLC case has a special Part V bucket for owner-level LLC transactions. Formation funding, capital contributions and distributions are the everyday examples.

The Form 5472 PDF itself also shows line 1f and line 1h on the first page. The instructions explain that line 1f includes amounts reported in Part V for a foreign-owned US disregarded entity, and line 1h totals the amounts across all Forms 5472 filed for the tax year.

What should the attached statement include?

The attached statement should identify the reporting corporation, tax year, related party and every Part V transaction or grouped transaction clearly enough for the IRS to understand the nature and value of the transaction.

Use a simple workpaper format:

Statement field	Why it matters
Reporting corporation name	Ties the statement to the LLC on Form 5472 Part I
EIN	Prevents a loose attachment from being separated from the return
Tax year	Shows which annual filing the transaction belongs to
Related party	Connects the attachment to Part III
Date or date range	Supports year cutoff and transaction timing
Description	Explains whether the item is contribution, distribution, loan, acquisition or other Part V item
Direction	Shows whether value moved to the LLC or to the foreign owner
US dollar amount	Matches Form 5472's US dollar reporting
Basis of conversion	Explains how non-US currency was converted
Total	Feeds line 1f and line 1h

Do not overcomplicate the statement. A clear table with support in the workpapers is better than a narrative that hides the numbers.

What does an annotated Part V statement look like?

Here is an illustrative template. The names and amounts are hypothetical and are not taken from a real taxpayer.

FORM 5472 PART V ATTACHED STATEMENT

Reporting corporation: Example Holdings LLC
Employer identification number: 12-3456789
Tax year: 2025
Related party reported in Part III: Alex Example
Related party reference ID: ALEXEXAMPLE2025
Related party country of residence: Spain

The reporting corporation is a foreign-owned U.S. disregarded entity.
The transactions below are reportable transactions described in Part V
that are not already reported in Part IV.

Date        Description                         Direction        USD amount    Basis of conversion
2025-01-09  Initial owner capital contribution  Owner to LLC      $8,000       Bank posted USD amount
2025-03-18  Owner-paid formation expense        Owner to LLC        $450       Bank posted USD amount
2025-06-30  Owner distribution                  LLC to owner      $2,500       Wise USD/EUR receipt
2025-12-20  Owner reimbursement                 LLC to owner        $300       Bank posted USD amount

Total Part V transactions with this related party: $11,250
Amount included on Form 5472 line 1f for this related party: $11,250
Amount included on Form 5472 line 1h if one Form 5472 is filed: $11,250

Annotations:

The heading block identifies the return. Use the LLC name, EIN and tax year exactly as they appear on the pro forma Form 1120 and Form 5472.
The related party matches Part III. If there are two foreign related parties, prepare a separate Form 5472 and matching statement for each one.
The description uses tax labels. "Owner contribution" is clearer than "transfer."
The direction is explicit. The IRS should not have to infer whether cash moved into or out of the LLC.
The total is visible. The line 1f number should be traceable without redoing the table.

How does the Part V total flow to line 1f and line 1h?

For a foreign-owned US disregarded entity, the Part V total for the related party flows into line 1f. If only one Form 5472 is filed for the year, line 1h usually matches line 1f. If multiple Forms 5472 are filed, line 1h is the total across all Forms 5472.

Illustrative arithmetic:

Form 5472 package	Part V total	Line 1f on that form	Line 1h if both forms are filed
Foreign owner	$11,250	$11,250	$16,250
Owner's foreign company	$5,000	$5,000	$16,250

The line 1g count matters in the same multi-party situation. If two Forms 5472 are filed for the tax year, line 1g should show that total count. The count and totals should tell the same story.

What should not go in the Part V statement?

Part V is not a dump for every bank transaction. It is for reportable transactions of the foreign-owned US disregarded entity that are not already reported in Part IV.

Common exclusions:

Unrelated customer revenue.
Unrelated vendor bills.
Stripe, PayPal or Wise customer payouts from unrelated customers.
Bank fees.
Software subscriptions paid to unrelated vendors.
State annual report fees paid directly by the LLC.

Common inclusions:

Initial funding after formation.
Owner contributions during the year.
Owner distributions.
Owner-paid expenses treated as contributions or reimbursements.
Owner loans to or from the LLC.
Amounts tied to acquisition, disposition or dissolution of the entity.

If the LLC pays the foreign owner for services, rent, interest or other Part IV categories, do not force the amount into Part V just because the owner is involved. Classify the transaction under the form instructions and keep the workpapers consistent.

How do you prepare the Part V statement step by step?

Use the bank records first, then reconcile to the books.

Export the LLC bank activity for the tax year. Include every account the LLC used.
Mark every owner transaction. Contributions, draws, reimbursements and loans are the usual Part V candidates.
Remove unrelated transactions. Customer revenue and third-party vendor payments usually do not belong in Part V.
Check Part IV first. If a transaction fits a listed Part IV line, classify it there rather than hiding it in Part V.
Convert non-US currency to US dollars. Use a reasonable and consistent basis, and write the basis in the statement.
Total by related party. One foreign related party means one Form 5472; multiple related parties usually mean multiple Forms 5472.
Tie the totals to line 1f and line 1h. The attachment, line 1f, line 1g and line 1h should reconcile.
Attach the statement behind Form 5472. The pro forma Form 1120 is the signed cover return. A separate signature is not required on the Part V attachment.

The Form 1120 PDF is relevant because the foreign-owned US disregarded entity files Form 5472 attached to a pro forma Form 1120. The Form 1120 cover is signed; the supporting Part V statement is an attachment.

What mistakes make a Part V statement weak?

The weak statements all have the same problem: the IRS cannot see what happened without guessing.

Putting contributions in Part IV. Owner capital contributions and distributions for a foreign-owned US disregarded entity normally belong in Part V, not in a sales or service line.

No total. A table without a total makes line 1f hard to verify.

No EIN or tax year on the attachment. Attachments get separated. Put the LLC's identifying information on the statement itself.

Mixing revenue into Part V. Unrelated customer revenue is not a related-party transaction.

Using inconsistent currency conversion. If the owner funded the LLC from a non-US account, keep the bank confirmation or exchange-rate workpaper and state the basis.

Combining related parties. Each foreign related party with reportable transactions generally needs its own Form 5472. One combined attachment can make the line 1g count and line 1h total wrong.

How can Form5472 Prep prepare the attachment?

Form5472 Prep prepares the full package: Form 5472, pro forma Form 1120, and the Part V statement. We classify owner contributions, distributions, loans and reimbursements, have the package reviewed by a qualified tax accountant, and fax it to the IRS Ogden PIN Unit at 855-887-7737 with a timestamped receipt.

Standard service is $149 and ready in 5-7 business days. Express service is $199 and ready in 3 business days. Each additional past tax year is +$99. Fax delivery is included. EIN service is $149 at /ein, and ITIN service is $349 at /itin.

We are not a CPA firm and do not give tax advice. We do not decide income tax positions or treaty positions. We prepare and submit the information return package accurately.

Frequently asked questions

Is a Part V statement required for Form 5472?

Yes, when a foreign-owned US disregarded entity has Part V transactions. The IRS instructions say to describe those transactions on an attached statement.

Does the Part V attachment need a signature?

No separate signature is required on the attachment. The pro forma Form 1120 is the signed cover return, and Form 5472 with the statement is attached to it.

Do owner contributions go in Part IV or Part V?

For a foreign-owned US disregarded entity, owner contributions normally belong in Part V. Part IV is for listed monetary transaction categories such as sales, rents, royalties, commissions, interest and similar items.

Should customer revenue be included in Part V?

Usually no. Customer revenue from unrelated customers is not a transaction between the LLC and its foreign owner. Part V focuses on related-party transactions.

What total goes on line 1f?

For a foreign-owned US disregarded entity, line 1f includes the total value reported for that related party, including Part V amounts. The Part V statement should make that total easy to trace.

Prepare a separate Form 5472 for each related party with reportable transactions. Line 1g should show the total number of Forms 5472 filed for that tax year.

Can I use estimated amounts on the statement?

Use actual records when available. If an estimate is necessary, label the estimate clearly and keep the calculation support. The statement should let the IRS understand the nature and approximate value.

The Part V statement is the bridge between your bank records and the numbers on Form 5472. Make the attachment clear, titled, totaled and tied to line 1f.

Start the Form 5472 filing, or read how to fill out Form 5472 and reportable transaction examples.