Form 8858 PDF Details

Form 8858 is an important form that all taxpayers need to be familiar with. It is used to report ownership interests in certain foreign corporations and other entities. The form must be filed by individuals, partnerships, estates, and trusts who have a direct or indirect interest in a foreign corporation or other entity. Be sure to file Form 8858 if you are required to do so! Use Form 8858 if you have: An ownership interest in a foreign corporation (directly or indirectly) A membership interest in a foreign partnership (directly or indirectly) An estate or trust that has an ownership interest in a foreign corporation or foreign partnership (directly or indirectly)”

QuestionAnswer
Form NameForm 8858
Form Length4 pages
Fillable?No
Fillable fields0
Avg. time to fill out1 min
Other names 4.61.13 Dual Consolidated LossesInternal Revenue Service

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Form 8858

 

Information Return of U.S. Persons With Respect to Foreign

 

OMB No. 1545-1910

 

Disregarded Entities (FDEs) and Foreign Branches (FBs)

 

 

 

 

 

 

 

 

(Rev. September 2021)

 

▶ Go to www.irs.gov/Form8858 for instructions and the latest information.

 

 

Department of the Treasury

 

Information furnished for the FDE’s or FB’s annual accounting period (see instructions)

 

Attachment

 

beginning

, 20

, and ending

, 20

 

Sequence No. 140

Internal Revenue Service

 

 

 

 

 

Name of person filing this return

 

 

 

 

Filer’s identifying number

 

 

 

 

 

 

 

 

Number, street, and room or suite no. (or P.O. box number if mail is not delivered to street address)

City or town, state, and ZIP code

Filer’s tax year beginning

, 20

, and ending

, 20

Important: Fill in all applicable lines and schedules. All information must be in English. All amounts must be stated in U.S. dollars unless otherwise indicated.

Check here

FDE of a U.S. person

FDE of a controlled foreign corporation (CFC)

FDE of a controlled foreign partnership

 

FB of a U.S. person

FB of a CFC

 

FB of a controlled foreign partnership

 

 

 

 

 

 

Check here

Initial Form 8858

Final Form 8858

 

 

 

 

 

 

 

1a Name and address of FDE or FB

 

b(1)

U.S. identifying number, if any

 

 

 

 

 

 

 

 

 

b(2)

Reference ID number (see instructions)

 

 

 

 

 

 

cFor FDE, country(ies) under whose laws organized and entity type under local tax law

dDate(s) of organization

eEffective date as FDE

fIf benefits under a U.S. tax treaty were claimed with respect to income of the FDE or FB, enter the treaty and article number

gCountry in which principal business activity is conducted

hPrincipal business activity

iFunctional currency

2Provide the following information for the FDE’s or FB’s accounting period stated above.

aName, address, and identifying number of branch office or agent (if any) in the United States

bName and address (including corporate department, if applicable) of person(s) with custody of the books and records of the FDE or FB, and the location of such books and records, if different

3For the tax owner of the FDE or FB (if different from the filer), provide the following (see instructions):

aName and address

bAnnual accounting period covered by the return (see instructions)

c(1) U.S. identifying number, if any

c(2) Reference ID number (see instructions)

dCountry under whose laws organized

eFunctional currency

4For the direct owner of the FDE or FB (if different from the tax owner), provide the following (see instructions):

aName and address

bCountry under whose laws organized

cU.S. identifying number, if any

dFunctional currency

5Attach an organizational chart that identifies the name, placement, percentage of ownership, tax classification, and country of organization of all entities in the chain of ownership between the tax owner and the FDE or FB, and the chain of ownership between the FDE or FB and each entity in which the FDE or FB has a 10% or more direct or indirect interest. See instructions.

For Paperwork Reduction Act Notice, see the separate instructions.

Cat. No. 21457L

Form 8858 (Rev. 9-2021)

Form 8858 (Rev. 9-2021)

Page 2

 

 

Schedule C

 

Income Statement (see instructions)

Important: Report all information in functional currency in accordance with U.S. GAAP. Also, report each amount in U.S. dollars translated from functional currency (using GAAP translation rules or the average exchange rate determined under section 989(b)). If the functional currency is the U.S. dollar, complete only the U.S. Dollars column. See instructions for special rules for FDEs or FBs that use U.S. dollar approximate separate transactions method of accounting (DASTM).

If you are using the average exchange rate (determined under section 989(b)), check the following box . . . . . .

 

 

 

 

Functional Currency

U.S. Dollars

 

Gross receipts or sales (net of returns and allowances)

 

 

 

1

1

 

 

2

Cost of goods sold

2

 

 

3

Gross profit (subtract line 2 from line 1)

3

 

 

4

Dividends

4

 

 

5

Interest

5

 

 

6

Gross rents, royalties, and license fees

6

 

 

7

Gross income from performance of services

7

 

 

8

Foreign currency gain (loss)

8

 

 

9

Other income

9

 

 

10

Total income (add lines 3 through 9)

10

 

 

11

Total deductions (exclude income tax expense)

11

 

 

12

Income tax expense

12

 

 

13

Other adjustments

13

 

 

14

Net income (loss) per books

14

 

 

Schedule C-1

Section 987 Gain or Loss Information

 

 

 

 

Note: See the instructions if there are multiple recipients of remittances from

 

(a)

(b)

 

 

Amount stated in

Amount stated in

 

the FDE or FB.

 

functional currency of

functional currency of

 

 

 

 

FDE or FB

recipient

1

Remittances from the FDE or FB

1

 

 

2

Section 987 gain (loss) recognized by recipient

2

 

 

3Section 987 gain (loss) deferred under Regulations section 1.987-12 (attach

statement)

3

 

 

 

 

 

 

Yes

No

4 Were all remittances from the FDE or FB treated as made to the direct owner? . . . . . . . . . .

5Did the tax owner change its method of accounting for section 987 gain or loss with respect to remittances from the FDE or FB during the tax year? If “Yes,” attach a statement describing the method used prior to the change and new method of accounting . . . . . . . . . . . . . . . . . . . . . .

Schedule F

Balance Sheet

 

 

 

 

 

Important: Report all amounts in U.S. dollars computed in functional currency and translated into U.S. dollars in

 

accordance with U.S. GAAP. See instructions for an exception for FDEs or FBs that use DASTM.

 

 

 

 

 

Assets

 

(a)

(b)

 

 

 

 

Beginning of annual

End of annual

 

 

 

 

accounting period

accounting period

 

Cash and other current assets

 

 

 

 

 

1

1

 

 

 

 

2

Other assets

2

 

 

 

 

3

Total assets

3

 

 

 

 

 

 

Liabilities and Owner’s Equity

 

 

 

 

 

 

Liabilities

 

 

 

 

 

4

4

 

 

 

 

5

Owner’s equity

5

 

 

 

 

6

Total liabilities and owner’s equity

6

 

 

 

 

Schedule G

Other Information

 

 

 

 

 

 

 

 

 

 

Yes

 

No

1

During the tax year, did the FDE or FB own an interest in any trust?

 

 

 

2

During the tax year, did the FDE or FB own at least a 10% interest, directly or indirectly, in any foreign

 

 

 

 

partnership?

 

 

 

3

Answer only if the FDE made its election to be treated as disregarded from its owner during the tax year:

 

 

 

 

Did the tax owner claim a loss with respect to stock or debt of the FDE as a result of the election? . . .

 

 

 

4

During the tax year, did the FDE or FB pay or accrue any foreign tax that was disqualified for credit under

 

 

 

 

section 901(m)?

 

 

 

5

During the tax year, did the FDE or FB pay or accrue foreign taxes to which section 909 applies, or treat

 

 

 

 

foreign taxes that were previously suspended under section 909 as no longer suspended?

 

 

 

Form 8858 (Rev. 9-2021)

Form 8858 (Rev. 9-2021)

Page 3

 

 

 

Schedule G

 

Other Information (continued)

6

Is the FDE or FB a qualified business unit as defined in section 989(a)?

 

Do not complete lines 7 and 8 if you are an individual who owns an FB or FDE directly or through tiers of

 

FBs and FDEs.

 

 

 

7a

During the tax year, did the FDE or FB receive, or accrue the receipt of, any amounts defined as a

 

base erosion payment under section 59A(d) or have a base erosion tax benefit under section 59A(c)(2) from

 

a foreign person, which is a related party of the taxpayer? See instructions. If “Yes,” complete lines 7b

 

and 7c

b

Enter the total amount of the base erosion payments

$

 

 

c

Enter the total amount of the base erosion tax benefit

$

 

 

8a

During the tax year, did the FDE or FB pay, or accrue the payment of, any amounts defined as a base

 

erosion payment under section 59A(d) or have a base erosion tax benefit under section 59A(c)(2) to a foreign

 

person, which is a related party of the taxpayer? See instructions. If “Yes,” complete lines 8b and 8c . . .

b

Enter the total amount of the base erosion payments

$

 

 

c

Enter the total amount of the base erosion tax benefit

$

 

 

9Answer only if the tax owner of the FDE or FB is a CFC: Were there any intracompany transactions between the FDE or FB and the CFC or any other branch of the CFC during the tax year, in which the FDE or FB acted as a manufacturing, selling, or purchasing branch? . . . . . . . . . . . . . . . . .

Answer the remaining questions in Schedule G only if the tax owner of the FB or the interest in the FDE is a U.S. corporation. Answer questions 10a through 11c if the tax owner of the FB or the interest in the FDE is treated as a U.S. corporation solely for purposes of these questions.

10a

If the FB or the interest in the FDE is a separate unit under Regulations section

1.1503(d)-1(b)(4), and is not

 

part of a combined separate unit under Regulations section 1.1503(d)-1(b)(4)(ii), does the separate unit have

 

a dual consolidated loss as defined in Regulations section 1.1503(d)-1(b)(5)(ii)?

b

If “Yes,” enter the amount of the dual consolidated loss

.

. ▶ $ (

 

)

11a

If the FB or the interest in the FDE is a separate unit and part of a combined separate unit under

 

Regulations section 1.1503(d)-1(b)(4)(ii), does the combined separate unit have a dual consolidated loss as

 

defined in Regulations section 1.1503(d)-1(b)(5)(ii)? If “Yes,” complete lines 11b and 11c

b

Enter the amount of the dual consolidated loss for the combined separate unit

.

. ▶ $ (

 

)

cEnter the net income (loss) attributed to the individual FB or the individual interest in the FDE as determined under Regulations section 1.1503(d)-5(c)(4)(ii)(A) . . . . . . . . . . . . ▶ $

12a Was any portion of the dual consolidated loss on line 10b or 11b taken into account in computing U.S. taxable income for the year? If “Yes,” go to line 12b. If “No,” go to line 13 . . . . . . . . . . .

bWas this a permitted domestic use of the dual consolidated loss under Regulations section 1.1503(d)-6? If

“Yes,” see the instructions and go to line 12c. If “No,” go to line 12d . . . . . . . . . . . . .

cIf “Yes,” is the documentation that is required for the permitted domestic use under Regulations section

1.1503(d)-6 attached to the return? After answering this question, go to line 13a . . . . . . . . .

dIf this was not a permitted domestic use, was the dual consolidated loss used to compute consolidated taxable income as provided under Regulations section 1.1503(d)-4? If “Yes,” go to line 12e . . . . . .

eEnter the separate unit’s contribution to the cumulative consolidated taxable income

(“cumulative register”) as of the beginning of the tax year . . ▶ $. See instructions.

13a During the tax year, did any triggering event(s) occur under Regulations section 1.1503(d)-6(e) requiring recapture of any dual consolidated loss(es) attributable to the FB or interest in the FDE, individually or as part of a combined separate unit, in any prior tax years? . . . . . . . . . . . . . . . . .

b If “Yes,” enter the total amount of recapture . . . . . . ▶ $

. See instructions.

Yes

No

Schedule H Current Earnings and Profits or Taxable Income (see instructions)

Important: Enter the amounts on lines 1 through 6 in functional currency.

1

Current year net income (loss) per foreign books of account

2

Total net additions

3

Total net subtractions

4Current earnings and profits (or taxable income—see instructions) (line 1 plus line 2 minus line 3) . .

5

DASTM gain (loss) (if applicable)

6

Combine lines 4 and 5

7Current earnings and profits (or taxable income) in U.S. dollars (line 6 translated at the average exchange rate determined under section 989(b) and the related regulations (see instructions)) . . .

8Enter exchange rate used for line 7 . . . . . . . . . . . . . . . ▶

1

2

3

4

5

6

7

Form 8858 (Rev. 9-2021)

Form 8858 (Rev. 9-2021)

 

Page 4

 

 

 

 

Schedule I

 

Transferred Loss Amount (see instructions)

 

Important: See instructions for who has to complete this section.

 

 

 

Yes

No

1Were any assets of an FB (including an FB that is an FDE) transferred to a foreign corporation? If “No,”

stop here. If “Yes,” go to line 2 . . . . . . . . . . . . . . . . . . . . . . . . . .

2Was the transferor a domestic corporation that transferred substantially all of the assets of an FB (including an FB that is an FDE) to a specified 10%-owned foreign corporation? If “No,” stop here. If “Yes,” go to

line 3 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

3Immediately after the transfer, was the domestic corporation a U.S. shareholder with respect to the

transferee foreign corporation? If “No,” stop here. If “Yes,” go to line 4

. . . . . . . . . . . .

4Enter the transferred loss amount included in gross income as required under section 91. See

instructions

4

Schedule J Income Taxes Paid or Accrued (see instructions)

 

 

Foreign Income Taxes

 

Foreign Tax Credit Separate Categories

 

 

 

 

 

 

 

 

 

 

(a)

(b)

(c)

(d)

(e)

(f)

(g)

(h)

(i)

Country or

Foreign Tax Year

Foreign Currency

Conversion Rate

U.S. Dollars

Foreign Branch

Passive

General

Other

Possession

(YYYY-MM-DD)

 

 

 

 

 

 

 

Totals

Form 8858 (Rev. 9-2021)

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1. The Form 8858 requires certain details to be typed in. Be sure that the next blanks are completed:

Filling out part 1 of Form 8858

2. Now that the previous segment is completed, it is time to include the essential particulars in the United States, with custody of the books and, For the tax owner of the FDE or, a Name and address, b Annual accounting period covered, c US identifying number if any, c Reference ID number see, d Country under whose laws, e Functional currency, For the direct owner of the FDE, a Name and address, b Country under whose laws, Attach an organizational chart, ownership between the tax owner, and c US identifying number if any allowing you to go to the 3rd step.

with custody of the books and, a Name and address, and b Country under whose laws of Form 8858

3. Completing Important Report all information, Gross receipts or sales net of, Note See the instructions if there, Remittances from the FDE or FB, Functional Currency, US Dollars, Amount stated in, Amount stated in, functional currency of, functional currency of, FDE or FB, recipient, and Yes is essential for the next step, make sure to fill them out in their entirety. Don't miss any details!

Filling out part 3 of Form 8858

4. Filling in Were all remittances from the FDE, Did the tax owner change its, Schedule F, Balance Sheet, Important Report all amounts in US, Cash and other current assets, Assets, Liabilities and Owners Equity, Beginning of annual accounting, End of annual, accounting period, Liabilities Owners equity, Schedule G, Other Information, and Yes is essential in this next form section - ensure to don't rush and take a close look at every single field!

Yes, Did the tax owner change its, and End of annual in Form 8858

Many people generally get some points incorrect while filling in Yes in this area. Be certain to double-check everything you enter right here.

5. To wrap up your form, the final part incorporates some extra blank fields. Filling in Other Information continued, Yes, Is the FDE or FB a qualified, Do not complete lines and if you, During the tax year did the FDE or, a b Enter the total amount of, During the tax year did the FDE or, a b Enter the total amount of the, and Answer only if the tax owner of will conclude everything and you will be done very quickly!

Part number 5 for completing Form 8858

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