Form 8804
Forms

Form 8804: Annual Return for Partnership Withholding Tax (Section 1446)

This article covers forms 8804, 8805 and 8813 which help pay and report US income tax for foreign partners based on their Effective Connected Taxable Income. It also explains how each of the forms are used and how the form 8805 is used to provide credit to beneficiaries.

What is Form 8804?

Form 8804, 8805, and 8813 are used to report and pay section 1446 withholding tax based on ECTI allocable to foreign partners. Form 8804 is used to report the total liability, and Form 8805 is used to report the amount of ECTI and allocable tax credit, separated by each foreign partner. Form 8813 is used to pay the tax to the US Treasury and is attached to each payment made during the year. Form 8805 should also be attached to the foreign partner’s US income tax return. Foreign trusts and estates must complete Schedule T of Form 8805 to report to the beneficiaries.

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IRS Form 8804 – Who Needs to Fill It Out?

Forms 8804, 8805, and 8813 are needed to pay and report the section 1446 withholding tax based on ECTI allocable to foreign partners. Form 8804 is used to report the total liability and is accompanied by Form 8805 which shows the amount of ECTI and tax credits for each foreign partner. Form 8805 must be attached to the foreign partner’s US income tax return to claim the withholding credit. In some cases, Form 8805 can also be completed by a foreign trust or estate. Form 8813 is used to pay the withholding tax directly to the US Treasury and must accompany any payments made during the partnership’s tax year.

Step-by-Step: Form 8804 Instructions For Filling Out the Document

Use Forms 8804, 8805, and 8813 to pay and report the section 1446 withholding tax based on ECTI allocable to foreign partners. First, use Form 8804 to report the total liability for the year and to transmit Forms 8805. Then complete a separate Form 8805 for each foreign partner indicating the ECTI and tax credit. The Form 8805 must be attached to the foreign partner’s income tax return to claim a withholding credit, and also to the Form 8804 for the IRS. Form 8805 can also be completed by foreign trusts or estates in some cases. Lastly, use Form 8813 to pay the withholding tax to the U.S. Treasury and accompany each payment with this form.

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Below, we present a table that will help you understand how to fill out Form 8804.

Form Purpose
Form 8804 Report total liability for the year and transmit Forms 8805
Form 8805 Complete a separate Form 8805 for each foreign partner, indicating ECTI and tax credit. Attach to the foreign partner’s income tax return to claim a withholding credit and also to Form 8804 for the IRS.
Form 8813 Pay the withholding tax to the U.S. Treasury and accompany each payment with this form.
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Do You Need to File Form 8804 Each Year?

Each year, partnerships must file Forms 8804, 8805, and 8813 to pay and report section 1446 withholding tax based on effectively connected taxable income (ECTI) allocable to foreign partners. Form 8804 is a transmittal form for Form(s) 8805 and must report the total liability under section 1446 for the partnership’s tax year. For each foreign partner, a separate Form 8805 must be filed to show the amounts of ECTI and the total tax credit. Additionally, Form 8813 must accompany each payment of section 1446 tax made throughout the year. Foreign partners and U.S. persons must then attach Form 8805 to their U.S. income tax returns to claim a withholding credit or erroneously subjected withholding tax, respectively.

Download the official IRS Form 8804 PDF

On the official IRS website, you will find a link to download Form 8804. However, to make it easier for you, we are providing the link in our article, which comes directly from the official irs.gov website! Click to download: Form 8804

Sources:

https://www.irs.gov/forms-pubs/about-form-8804

https://www.irs.gov/instructions/i8804

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