With Form 8804, 8805, and 8813, partnerships must pay and report the section 1446 withholding tax based on effectively connected taxable income (ECTI) allocated to foreign partners per U.S. regulations. Learn who must file, how to obtain TINs and EINs, and when to file Forms 8804 and 8805.
What is Form 8805?
Form 8804, 8805 and 8813 are used by partnerships to pay and report the section 1446 withholding tax based on the income allocated to its foreign partners. Form 8804 is the transmittal form that is filed with the IRS and reports the total liability under section 1446 for the partnership’s tax year. It must also be accompanied by Form 8805, which details the amount of income and total tax credit for each foreign partner. Form 8813 is a payment form that is filed for each payment of section 1446 tax made during the partnership’s tax year. Foreign partners must attach Form 8805 to their U.S. income tax returns to claim a withholding credit. A separate Form 8805 must be filed for each foreign partner and Forms 8804 and 8805 should be filed before the 15th day of the 3rd month following the partnership’s tax year. A paid preparer may also assist in filing Form 8804. Payment for the withholding tax is due with the Form 8813 on the 15th day of the 4th, 6th, 9th, and 12th months of the partnership’s tax year.
IRS Form 8805 – Who Needs to Fill It Out?
IRS Form 8804, 8805, and 8813 must be filled out by every partnership that has effectively connected gross income allocable to a foreign partner, regardless of whether it had ECTI allocable to a foreign partner or not. Form 8804 serves to report the total liability under section 1446 for the partnership’s tax year, with Form 8805 as a transmittal containing the ECTI amount and total tax credit allocable to the foreign partner. Each foreign partner must file a separate Form 8805 with Copy A attached to Form 8804. Form 8813 must accompany each payment of the section 1446 tax. TINs, or U.S. Tax Identification Numbers, must be provided for each foreign partner. Form 8805 can also be completed in some cases by a foreign trust or estate with Schedule T containing the section 1446 withholding tax info. Forms 8804 and 8805 should be filed on or before the 15th day of the 3rd and 6th months respectively, with Form 8813 filed on or before the 15th day of the 4th, 6th, 9th, and the 12th months of the partnership’s tax year.
Step-by-Step: Form 8805 Instructions For Filling Out the Document
The purpose of Forms 8804, 8805, and 8813 is to pay and report section 1446 withholding tax based on ECTI allocable to foreign partners. Form 8804 is used to report the total liability under section 1446 and to provide a transmittal for Form 8805, which should be filed separately for each foreign partner. Form 8805 should be attached to the U.S. income tax return of the foreign partner to claim a withholding credit. Form 8813 is used for payment of the withholding tax which should be filed on or before the 15th day of the 4th, 6th, 9th, and 12th months. All forms should have a U.S. TIN for foreign partners, and a separate Form 8805 is to be attached to the Form 8804 filed with the IRS. Form 8805 can also be completed by a foreign trust or estate. Forms should be filed on or before the 15th day of the 3rd or 6th month and Form 7004 can be used to request an extension of time to file Form 8804.
Below, we present a table that will help you understand how to fill out Form 8805.
| Instructions for Forms 8804, 8805, and 8813 | Details |
|---|---|
| Form purposes | Used to pay and report section 1446 withholding tax based on effectively connected taxable income allocated to foreign partners |
| Form 8804 | Report total tax liability and serve as a transmittal for Form 8805 |
| Form 8805 | Filed for each foreign partner to claim withholding credit |
| Form 8813 | Accompanies each payment of section 1446 tax |
| U.S. Taxpayer Identification Number (TIN) | Required for proper crediting of withholding tax |
| Filing deadlines | Forms 8804 and 8805 by the 15th day of the 3rd month following the close of the partnership’s tax year; Form 8813 on or before the 15th day of the 4th, 6th, 9th, and 12th months |
| Extension | Request an extension using Form 7004 if needed |
Do You Need to File Form 8805 Each Year?
Yes, these forms need to be filed each year by the partnership, or the person it has designated, on behalf of each foreign partner. Form 8804 is a transmittal form for Forms 8805 and is used to report the total liability under section 1446 for the partnership’s tax year. Form 8805 is used to show the amount of ECTI and the total tax credit allocable to the foreign partner for the partnership’s tax year. File separately from Form 1065 and submit on or before the 15th day of the 3rd month following the close of the partnership’s tax year. If more time is needed, a Form 7004 for an extension of time can be filed. Form 8813 must accompany each payment of section 1446 tax made during the partnership’s tax year.
Download the official IRS Form 8805 PDF
On the official IRS website, you will find a link to download Form 8805. 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 8805
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