A distribution contract is a commercial contract between a supplier of goods and a trader of goods. The supplier can be a manufacturer or reseller of the products. As explained by the Internal Revenue Service (IRS), Form 5472 should be used to provide the information required under Sections 6038A and 6038C when reportable transactions occur in the relevant tax year of a reporting business with a foreign related party or a foreign business operating in a trade or activity in the United States. Needless to say, the official IRS statement of this form is not very clear. IRS Form 5472 is difficult to complete and submit, and if not executed correctly, it can cause serious problems. In this article, I explain what IRS Form 5472 is, why you need to submit it, and how to complete it. .