Form 5472 Part V Explained: Contributions, Distributions and Owner-Paid Expenses

Short answer: Part V applies only to foreign-owned single-member LLCs. It reports transactions with the owner that aren't already in Part IV — mainly payments connected with forming the LLC, the owner's contributions (including expenses the owner paid for the LLC) and the LLC's distributions to the owner. Check the Part V box, attach a statement listing each transaction, and include the amounts on lines 1f and 1h.

What Part V covers#

Part V is titled Reportable Transactions of a Reporting Corporation That Is a Foreign-Owned U.S. DE. The instructions say:

You must check the box in Part V if you are a foreign-owned DE that had any other transaction, as defined by Regulations section 1.482-1(i)(7), not already entered in Part IV. These transactions include amounts paid or received in connection with the formation, dissolution, acquisition, and disposition of the entity, including contributions to, and distributions from, the entity. Describe these on an attached statement.

Only foreign-owned U.S. DEs complete Part V; other reporting corporations skip it.

Common examples#

Whether money is a contribution or a loan depends on the actual arrangement: a written loan with repayment terms is a loan (Part IV); money with no repayment expected is a contribution (Part V).

How to complete it#

1. Check the box in Part V.
2. Attach a statement with the LLC's name, EIN, tax year and related party, then list each transaction — date, type (contribution or distribution), description and U.S.-dollar amount — and a total.
3. Include the Part V total on line 1f (this form) and line 1h (all Forms 5472).

There is no prescribed format for the statement; it just needs to describe each transaction clearly. Example:

Amounts#

• Everything in U.S. dollars. Convert foreign-currency payments and attach the exchange rates used.
• Use the amounts actually paid. Similar items may be combined into one line if the description says so.
• If an actual amount can't be determined, a reasonable estimate within 75%–125% of the actual amount is allowed.

FAQ#

Do expenses the owner paid for the LLC really count? Yes. For the LLC this is the owner putting money in — a contribution, reported in Part V. "The bank account never moved, so it's zero" is the most common reason this gets missed.

Even a $100 fee? Yes. Part V has no minimum amount.

The LLC's account had no activity and the owner paid nothing for it all year. Then there may be no reportable transaction. Under the instructions a DE with no Part IV, V or VI transactions doesn't have to file, though many owners file anyway as a protective measure. See Who must file Form 5472.

Sources#

• IRS: Instructions for Form 5472 (Rev. December 2024) — Parts IV and V, reasonable estimates
• IRS: Treasury Decision 9796