Form 5472 Part V Statement: Example and Checklist

Part V does more than ask you to check a box. A foreign-owned U.S. disregarded entity that had an “other transaction” not already entered in Part IV must check Part V and describe the transaction on an attached statement. The IRS says these transactions include amounts paid or received in connection with the entity’s formation, dissolution, acquisition, and disposition, including contributions to and distributions from the entity. See the IRS Form 5472 instructions.

The statement should make the transaction history understandable without forcing a reader to decode vague bank descriptions. Identify the entity, tax year, related party, transaction dates, direction, description, and U.S.-dollar amounts, then reconcile the total to the form.

What belongs in Part V?

Part V is specific to a reporting corporation that is a foreign-owned U.S. disregarded entity. It captures other reportable transactions under the IRS definition that were not already entered in Part IV.

Common Part V candidates include:

• Initial owner funding connected with formation
• Later capital contributions
• Distributions to the owner
• Amounts connected with acquiring or disposing of the entity
• Amounts connected with dissolution
• Other owner-level transactions not already entered in Part IV

Do not use Part V as a catch-all. If a foreign-related-party monetary transaction belongs in a listed Part IV category, analyze it there. If the transaction is nonmonetary or for less than full consideration, Part VI may apply. Part VI requires a schedule describing property, rights, obligations, or services transferred and their approximate value. The IRS instructions draw those boundaries.

Exact classification depends on the facts. A bank transfer described as “owner payment” might be a contribution, loan, reimbursement, service payment, or something else. Determine its substance before mapping it to the form.

Fields to include in the attachment

The IRS instruction is to describe Part V transactions on an attached statement; it does not prescribe the exact table below. This practical format creates an auditable connection to the filing:

Field	Purpose
Reporting corporation name and EIN	Ties the attachment to the correct entity
Tax year	Establishes the reporting period
Related-party name and identifier	Connects the statement to Part III
Transaction date or period	Supports cutoff and currency conversion
Description	Explains the legal/economic nature
Direction	Shows whether value moved to or from the entity
Original amount and currency	Preserves the source transaction
USD amount and conversion basis	Supports the reported value
Source reference	Links to a statement, invoice, agreement, or ledger
Total	Allows reconciliation to Form 5472

Use the same names and identifiers as the form. If the entity has multiple related parties with reportable transactions, Form 5472 generally requires a separate form for each one. The IRS instructions for line 1g and 26 CFR §1.6038A-2 state the party-by-party rule.

Illustrative Part V statement

This example is fictional and demonstrates structure only. It is not a completed return for any taxpayer.

FORM 5472 — PART V ATTACHED STATEMENT

Reporting corporation: Harbor Example LLC
EIN: 12-3456789
Tax year ending: December 31, 2025
Related party reported in Part III: Morgan Example
Related-party reference ID: MORGANEXAMPLE01
Country of tax residence: Canada

Harbor Example LLC is a foreign-owned U.S. disregarded entity.
The transactions below are Part V reportable transactions not already
entered in Part IV.

Date        Description                    Direction       Original amount     USD amount   Conversion basis
2025-01-12  Initial capital contribution   Owner to LLC    USD 8,000            $8,000       Bank-posted USD amount
2025-04-03  Additional contribution        Owner to LLC    CAD 4,000            $2,861       Transaction-date posted rate
2025-11-19  Owner distribution             LLC to owner    USD 1,500            $1,500       Bank-posted USD amount

Total Part V transactions with this related party: $12,361

The arithmetic treats the rows as gross transaction values for illustration; it does not net the distribution against the contributions. The CAD conversion is hypothetical. Use the actual source and convention applicable to the taxpayer’s transaction.

Why each element matters

The heading block prevents orphaned attachments. Put the LLC name, EIN, and tax year on the statement itself, not only on the cover form.

The related party matches Part III. The attachment should clearly belong to the Form 5472 for that person. Do not mix a foreign owner and the owner’s separately incorporated business into one table.

Descriptions use real categories. “Capital contribution” says more than “transfer.” A short explanatory note may be appropriate if the classification is not obvious.

Direction remains visible. Contributions and distributions move opposite ways. Reporting each gross event prevents a net amount from concealing the transaction history.

Currency conversion can be reproduced. Preserve the original amount, rate date, source, quote convention, and calculation. The IRS generally points to the spot rate when an item is received, paid, or accrued and generally accepts a consistently used posted exchange rate. See the IRS currency guidance.

How the total connects to lines 1f–1h

For a foreign-owned U.S. disregarded entity, line 1f includes the U.S.-dollar value of the foreign-related-party transactions reported on that particular Form 5472, including Part V amounts. Line 1h is the total of line 1f across all Forms 5472 filed for the tax year. Line 1g is the total number of Forms 5472 being filed. The IRS line instructions provide the precise rules, including different treatment for U.S. related-party transactions.

Suppose two forms are filed:

Related party	Value reported on that form	Line 1g on each form	Package-wide line 1h
Foreign owner	$12,361	2	$17,361
Foreign related company	$5,000	2	$17,361

These figures are illustrative. Reconcile each statement to its own form, then reconcile all forms to the package total.

Build the statement from source records

Use this sequence:

1. Export all LLC account activity for the tax year.
2. Add owner-side records for expenses or transfers not visible in the LLC accounts.
3. Identify every related party before grouping transactions.
4. Classify each event based on agreements and facts.
5. Check whether Part IV applies before assigning an “other” transaction to Part V.
6. Review noncash and below-market exchanges separately for Part VI.
7. Convert foreign currency and retain the calculation.
8. Total by related party and reconcile to the ledger and Form 5472.

The recordkeeping regulations require relevant records sufficient to establish the correct U.S. tax treatment of related-party transactions. Examples include ledgers, bank statements, workpapers, contracts, and invoices. See 26 CFR §1.6038A-3.

Common Part V statement problems

• Omitting the statement after checking the Part V box
• Combining several related parties in one undifferentiated attachment
• Netting contributions and distributions
• Including unrelated customer revenue
• Putting nonmonetary or less-than-full-consideration activity in Part V without reviewing Part VI
• Showing USD totals without the original currency or conversion support
• Using labels such as “transfer” or “miscellaneous” that do not explain the transaction
• Failing to reconcile the statement to lines 1f, 1g, and 1h

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A strong Part V statement is modest in form but precise in content: identify the return, show each reportable event clearly, preserve gross direction and currency support, and make the total easy to trace.

Educational information only; not tax or legal advice.