Form 5472 Part V: Reporting Monetary Transactions Correctly
Updated June 2026 · Reviewed by a Form 5472 specialist
Updated June 2026 · Reviewed by a Form 5472 specialist
The short answer
Key takeaways
Part V is the section of Form 5472 titled “Reportable Transactions of a Reporting Corporation That is a Foreign-Owned U.S. DE.” It is the part a foreign-owned single-member LLC uses to report the dollar amount of all reportable transactions with related parties for the year.
Form 5472 has nine parts, but a foreign-owned single-member LLC only ever needs a handful of them. Parts I, II, and III identify the LLC, the foreign owner, and the related party. Part V is where the actual money is reported. The IRS added Part V specifically for disregarded entities (DEs) when final regulations under T.D. 9796 extended Form 5472 to foreign-owned single-member LLCs for tax years beginning on or after January 1, 2017.
Before 2017, a foreign-owned SMLLC had no federal filing obligation at all. The disregarded-entity-as-corporation rule changed that, and Part V is the line where the change bites: every dollar that moves between you and your LLC has to be summarized here. For the broader walkthrough, see our complete list of reportable transactions and the Form 5472 instructions.
Part V reports the dollar totals of reportable transactions a disregarded entity had with its foreign owner or related parties — most commonly capital contributions, distributions, and loans. A typical first-year SMLLC reports at least one number: the amount used to fund it.
Unlike Part IV (used by corporations), Part V is not broken into a long itemized grid of services, rent, and royalties. It asks the disregarded entity to describe and total its reportable transactions. The most common categories for a single-member LLC are below.
| Transaction | Goes in Part V? | Typical example |
|---|---|---|
| Capital contribution (you fund the LLC) | Yes | $5,000 wired from owner to LLC |
| Distribution (LLC pays you back) | Yes | $2,000 transferred LLC to owner |
| Loan from owner to LLC | Yes | $10,000 shareholder loan |
| Reimbursed formation / agent fees | Yes | $199 registered-agent fee paid by owner |
| Sales to unrelated US customers | No | Stripe revenue from strangers |
Source: IRS Form 5472 (Rev. December 2025), Part V; IRC §6038A. Verified June 2026.
Note the last row: money from unrelated customers is not a related-party transaction and does not go in Part V. Part V is only about money between you (and your other related parties) and the LLC. Our disregarded entity tax guide explains why the LLC and its owner are treated as one for income tax but separate for this reporting.
When you wire money into your LLC to start or fund it, that is a capital contribution — a reportable transaction between the foreign owner and the entity. Even a single $100 transfer triggers Part V, which is why almost every foreign-owned SMLLC must file Form 5472.
This is the single most misunderstood point about Form 5472. Founders assume that if the LLC earned no profit, or never sold anything, there is nothing to report. That is wrong. Form 5472 is triggered by a reportable transaction, not by revenue or profit. The act of moving your own money into the company you own is itself a reportable transaction.
Because forming and operating an LLC essentially always requires you to put money into it — for the registered agent, the EIN service, the bank deposit, or operating costs — virtually every foreign-owned SMLLC has a reportable transaction in its first year, so almost all must file. The safe rule: if you funded your LLC, you have a Part V entry. Use our reportable transaction list to confirm.
Part IV is the itemized monetary-transaction grid used by foreign-owned corporations. Part V is the disregarded-entity section for SMLLCs. Part VI covers nonmonetary and less-common transactions. A single-member LLC almost always uses Part V and leaves IV blank.
Confusion between these three parts causes a lot of mis-filings. Here is the clean distinction.
| Part | Who uses it | What it captures |
|---|---|---|
| Part IV | Foreign-owned US corporations | Itemized monetary transactions: services, rent, royalties, interest, sales |
| Part V | Foreign-owned US disregarded entities (SMLLCs) | Total of all reportable transactions for the year |
| Part VI | Both, when applicable | Nonmonetary and less-common transactions (e.g., property transfers) |
Source: IRS Instructions for Form 5472 (Rev. December 2025). Verified June 2026.
If you are a single-member LLC, your attention is on Part V. A foreign-owned C-corporation files a real Form 1120 and itemizes in Part IV instead. The underlying statute for all of it is the same — see our explainer on IRC §6038A — but the form mechanics differ by entity type.
List each reportable transaction type, then enter the total dollar amount for the year — contributions, distributions, and loans separately. Round to whole dollars, use US dollars, and convert foreign currency at the applicable rate. A blank Part V on a filing that needed one is treated as a failure to file.
Part V works alongside Parts I–III. By the time you reach it, the IRS already knows who your LLC is (Part I), who owns it (Part II), and which related party you transacted with (Part III). Part V supplies the numbers.
| Step | What to enter |
|---|---|
| 1. Total all contributions | Sum every dollar the owner put into the LLC during the year |
| 2. Total all distributions | Sum every dollar the LLC sent back to the owner |
| 3. Total any loans | Owner-to-LLC or LLC-to-owner loans, principal amounts |
| 4. Convert currency | Restate any foreign-currency amounts in US dollars |
| 5. Round | Enter whole dollars; pennies are not required |
Source: IRS Instructions for Form 5472, Part V completion. Verified June 2026.
One nuance: a contribution and a distribution are reported separately — you do not net them against each other. If you put in $5,000 and took out $2,000, that is a $5,000 contribution and a $2,000 distribution, not a $3,000 net figure. The full filing mechanics are on our how to file Form 5472 guide.
The biggest errors are leaving Part V blank because the LLC had no profit, netting contributions against distributions, and forgetting reimbursed fees. Any of these can convert a filed return into a failure-to-file, exposing you to the $25,000 penalty.
A Form 5472 that is filed on time but materially incomplete can still be treated as not filed under IRC §6038A. That is why Part V accuracy matters as much as filing at all. Watch for these specific traps:
If you have already missed a year, do not panic and do not assume the deadline has passed forever — there is no statute of limitations, but late filings can still be made. See the instructions for line-level detail, or have a specialist handle it from the apply page.
A blank or materially wrong Part V can be treated as a failure to file under IRC §6038A(d), triggering a $25,000 penalty per form, per year — with no cap and no statute of limitations, plus an extra $25,000 every 30 days after a 90-day IRS notice.
The penalty structure is harsh by design. Under IRC §6038A(d) the base penalty is $25,000 per Form 5472 per year. Because IRC §6501(c)(8) keeps the assessment statute open until the form is filed correctly, an unfiled or wrongly completed year from the past can be assessed today. After the IRS issues a 90-day notice, an additional $25,000 accrues for each 30-day period the failure continues.
Note that this is separate from beneficial-ownership reporting. Under FinCEN’s March 2025 interim final rule, US-formed entities — including foreign-owned US LLCs — are exempt from BOI reporting; only foreign reporting companies file. Form 5472 is an IRS filing and is still required regardless. We do not provide penalty-abatement or IRS representation; we focus on filing the return correctly the first time so a penalty never arises.
The IRS charges nothing to file, but a Part V mistake costs $25,000. Specialist services range from $299 (form5472.tax) to $547 (form5472.online) to $1,999/year (doola) for the same Form 5472 plus pro forma 1120 with Part V completed.
DIY is free but unforgiving — the $25,000 penalty applies even to an honest mistake or a missed line. For a flat $299, form5472.tax prepares Form 5472 with Part V completed and the pro forma Form 1120, reviews it, and files it by mail or fax, saving $248 versus form5472.online and far more versus $999–$1,499/year annual-compliance bundles. Compare on the pricing page or start on the apply page. The deadline is April 15, or October 15 with Form 7004.
Form 5472 with Part V completed and the pro forma 1120, prepared, reviewed, and filed for a flat $299. Or message us first — we answer every question.