Frequently Asked Questions


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What are Reportable Transactions?

All reportable transactions must be listed on Form 5472.

Reportable transactions are defined very broadly by the IRS. It is basically any activity carried out between a U.S. corporation and foreign owner that has no limit in value.

Some examples of reportable transactions as listed on Form 5472 Part IV, include the following:

  • Property or money exchanged, which include rental income, payments, remuneration, sales transactions, commission payments, capital contributions, and reductions.
  • When a U.S. company property, such as real estate, is used by a foreign owner or related party.
  • Loans and/or interest payments carried out between the corporation and the foreign owner.

Any amounts received linked to the formation, acquisition, disposition, and dissolution of the LLC (Form Part V) must be reported. Also, this form requires that the asset value is calculated by the end of the year.