Plain-English guide
Form 5472 Part IV: monetary transactions with a foreign related party
Short answer
Part IV is where the form reports monetary transactions between the reporting corporation and a foreign related party. The instructions say to state amounts in U.S. dollars, attach a schedule of exchange rates, and treat paid and received as including accruals.
What the IRS says
Source: Instructions for Form 5472 (Rev. 12-2024).
Note. Do not complete Part IV for transactions with a domestic related party.
State all amounts in U.S. dollars and attach a schedule showing the exchange rates used.
When completing Part IV or Part VI, the terms “paid” and “received” include accrued payments and accrued receipts.
A reasonable estimate is any amount reported on Form 5472 that is at least 75% but not more than 125% of the actual amount required to be reported.
If any actual amount in a transaction or a series of transactions between a foreign related party and the reporting corporation does not exceed a total of $50,000, the amount may be reported as “$50,000 or less.”
Report amounts borrowed (including borrowings in place at the beginning of the tax year) using either the outstanding balance method or the monthly average method.
In plain English
Part IV is organized as rows of kinds of transaction for amounts received and amounts paid, with totals. The instructions refer to lines 22 and 36 as the totals when they describe how line 1f is built. Rows 21 and 35 are for other amounts received or paid that no earlier row covers.
Loans are not reported as payments. The instructions have two methods for a loan balance: the outstanding balance method (a beginning and an ending balance) and the monthly average method.
Which transactions are monetary, which are reportable, and which row a given payment belongs on are questions this page does not answer. Part V holds the entries for a foreign-owned U.S. DE that Part IV does not already cover.
A hypothetical, to show how the dollar rule reads
Suppose, hypothetically, a series of payments between a corporation and a foreign related party added up to $12,000 across a tax year. The instructions' small-amounts wording says an amount that does not exceed a total of $50,000 may be reported as “$50,000 or less.” Whether that wording is available for a real set of payments is a question about the facts.
Related
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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