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What Counts as a Reportable Transaction on Form 5472?
Last updated October 27, 2026
Quick answer
A reportable transaction on Form 5472 is any transfer of money, property or services between the U.S. company and a related party — usually its foreign owner. For a foreign-owned single-member LLC that includes the owner putting money in, the LLC paying money out to the owner, loans either way, the owner paying the LLC’s formation or state fees, and sales, rents, royalties or services between them. A single such transaction in the year is enough to require Form 5472.
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Who has to report these transactions
• Foreign-owned U.S. single-member LLCs — every transaction with the foreign owner or other related parties
• U.S. corporations at least 25% foreign-owned — transactions with foreign and U.S. related parties
• Foreign corporations engaged in a trade or business in the United States
Common reportable transactions
Capital contributions
Money or property the owner puts into the LLC — including the deposit that opens its bank account
Distributions
Money the LLC pays out to the owner, including owner draws
Expenses paid by the owner
Formation, state, registered-agent, accounting or software fees paid from the owner’s own account or card
Loans and interest
Amounts the owner lends to the LLC or the LLC lends to the owner, and the interest on them
Sales and purchases
Inventory, equipment or other property bought from or sold to a related party
Services, rents and royalties
Service fees, commissions, rent, licence fees and royalties paid to or received from a related party
Non-cash transactions
Transfers for no payment or less than full payment are reported too, at a reasonable estimate of value
Related party
The foreign owner, any 25% foreign shareholder, and people or companies related to them or to the reporting company
How to work out your reportable transactions
1. List your related parties
Start with the foreign owner, then add any person or company related to the owner or to your company — for example, another company the owner controls. A separate Form 5472 is generally filed for each related party with transactions.
2. Go through the bank statements
Review the LLC’s bank and payment accounts for the year and mark every transfer to or from the owner or another related party.
3. Add costs the owner paid personally
Include company costs paid from the owner’s own money — formation and state filing fees, registered agent, accounting, software. These count as transactions with the owner.
4. Total them by type
Add up the amounts for each category for the year: contributions, distributions, loans, interest, services, rents, royalties, sales and purchases.
5. Value any non-cash items
If property or services changed hands for no payment or less than full payment, report them using a reasonable estimate of their value.
6. Report them on Form 5472
Enter the monetary totals in Part IV. A foreign-owned single-member LLC also checks Part V and attaches a statement describing transactions such as contributions to and distributions from the LLC.
Reportable transactions: frequently asked questions
Does putting my own money into my LLC count as a reportable transaction?
Yes. For a foreign-owned single-member LLC, a capital contribution from the owner is a reportable transaction — even though the owner and the LLC are treated as one taxpayer for income tax.
My LLC had no activity. Do I still need to file?
If truly nothing moved between the LLC and its owner or other related parties during the year, there may be no reportable transaction. But paying the annual state fee or registered agent from the owner’s own money is a transaction, so very few LLCs have a year with none. When unsure, filing costs far less than the $25,000 penalty.
Do payments to customers or suppliers count?
No. Only transactions with related parties go on Form 5472. Sales to ordinary customers and payments to unrelated vendors are not reported there.
Is taking money out of the LLC reportable?
Yes. Distributions or draws from the LLC to its owner are reportable transactions.
Do I report each transaction separately?
No. Monetary transactions are reported as yearly totals per category in Part IV. A foreign-owned single-member LLC also attaches a statement describing transactions such as contributions and distributions.
Do I need to keep records of these transactions?
Yes. You must keep records that support the amounts reported, such as bank statements, invoices and loan agreements. Failing to maintain the required records can itself trigger the $25,000 penalty.
Related guides
How to File Form 5472 for a Foreign-Owned U.S. LLCForm 5472 Penalties: What Happens If You Don’t FileForm 7004: How to Get an Automatic Extension for Business Tax ReturnsThis guide is general information about IRS requirements, not tax or legal advice. Rules and amounts can change — check the current IRS instructions or a tax professional for your situation. How we write our guides