Form 5472 Part V statement builder with IRS exchange rates

Meridian Cloud Solutions LLC, EIN 12-3456789
Form 5472, Part V: Reportable transactions of a foreign-owned U.S. DE
Tax year: January 1, 2025 to December 31, 2025
Related party: Amélie Martin (sole owner)

2025-03-20  Capital contribution to the LLC: 4,500 EUR = $5,079
2025-12-15  Distribution from the LLC to the owner: 15,000 EUR = $16,930

Total Part V transactions: $22,009

Exchange rates used: IRS yearly average currency exchange rates for 2025 (foreign currency units per 1 USD; USD = foreign amount / rate):
EUR Euro Zone (euro): 0.886
Amounts in US dollars, rounded to whole dollars.

Most founders who own a US LLC from abroad move money in their own currency: euros in to pay the registered agent, euros out when the LLC has earned something. On Form 5472, those movements are Part V transactions, and the form wants them in US dollars with a schedule of the exchange rates used. This tool does both: it converts each amount with the IRS yearly average rate and writes the statement you attach to the form.

What goes in Part V

For a single-member LLC owned by a foreign person, the Instructions for Form 5472 list in Part V the transactions that are "not already entered in Part IV", including amounts paid or received "in connection with the formation, dissolution, acquisition, and disposition of the entity, including contributions to, and distributions from, the entity". In practice:

• capital you put into the LLC, for example to open its bank account or pay its first invoices;
• distributions: money the LLC transfers to you;
• LLC expenses you paid personally, for example the registered agent or software billed to your own card;
• formation costs and state fees you paid personally.

Loans between you and the LLC are not Part V transactions: they go in Part IV, lines 17 and 31. Our line-by-line Form 5472 guide covers Part IV.

The Part V total also counts in line 1f of Part I, with the totals of Parts IV and VI.

Which exchange rate to use

The Form 5472 instructions ask you to state all amounts in US dollars and to "attach a schedule showing the exchange rates used". The IRS page on exchange rates sets the rules:

• "In general, use the exchange rate prevailing (i.e., the spot rate) when you receive, pay or accrue the item."
• "The Internal Revenue Service has no official exchange rate. Generally, it accepts any posted exchange rate that is used consistently."
• It publishes yearly average rates and explains how to use them: "To convert from foreign currency to U.S. dollars, divide the foreign currency amount by the applicable yearly average exchange rate in the table below."

This tool uses those IRS yearly averages, which are a posted rate you can apply consistently every year. If you prefer the spot rate of each transfer (for example the rate on your bank statement), use it for every transaction and every year, and list it in the schedule instead.

Source: IRS, Yearly average currency exchange rates. The tool covers 17 currencies from 2020 to 2025 (2020 from the IRS table as published until 2025).

How to use the result

1. Enter the LLC's name and EIN, your name, and the tax year.
2. Add one line per transfer (or one line per type, with the yearly total).
3. Copy the statement. It is in English, as the IRS requires, with the total and the exchange-rate schedule.
4. On Form 5472, check the Part V box, attach the statement, and include its total in line 1f.

Amounts are rounded to whole dollars. The instructions' "$50,000 or less" option is written for Part IV; for Part V, report the actual dollar amounts, since they also feed the total on line 1f.

Frequently asked questions

Can I use my bank's exchange rate instead?

Yes. The IRS accepts any posted exchange rate used consistently. What matters is that you use the same method every year and show the rates in the schedule you attach.

Do I include payments from customers?

No. Revenue from customers and payments to suppliers are not transactions with a related party. Part V only lists dealings between the LLC and you (or another related party).

My currency is not in the list. What do I do?

The IRS table does not cover every currency (for example the CFA franc). The IRS points to other posted rates, such as the US Treasury's reporting rates of exchange (see the IRS page on foreign currency). Convert with one of them and name it in the schedule.