Form 5472 line guide
Form 5472 Part VII lines 42 and 43 for a foreign-owned U.S. DE
Do I answer lines 42 and 43 in Part VII of Form 5472?
What the IRS says
Check the “Yes” box if, during the tax year, the reporting corporation had any loans to or from the related party to which the safe-haven rate rules of Regulations section 1.482-2(a)(2)(iii)(B) are applicable, and for which the reporting corporation used a rate of interest within the relevant safe-haven range (100% to 130% of the Applicable Federal Rate (AFR) for the relevant term).
Note. Complete lines 43a, 43b(1), and 43b(2) only if the reporting corporation is a domestic corporation. (Do not complete these lines if the reporting corporation is a foreign-owned U.S. DE.)
In plain language
Line 43 is the clearer of the two: the instructions say not to complete lines 43a, 43b(1) and 43b(2) if the reporting corporation is a foreign-owned U.S. DE.
Lines 42a and 42b ask about loans to or from the related party and whether the safe-haven rate rules apply. Whether they apply is a legal standard, so it is for the filer and a qualified professional to answer.
IRS sources
Quoted text last compared with the IRS document on 2026-10-03. The IRS can revise its forms and instructions; check the current version before you rely on anything here.
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