U.S. persons filing Form 8865 must provide information about the entity’s Controlled Foreign Partnership (CFP) activities, as required under sections 6038, 6038B, and 6046A. Depending on the category of which they qualify as filers, they may be required to submit up to fifteen different schedules, such as Schedules A and K-1.
What is Form 8865?
Form 8865 is a form used to report information required under certain sections of the Internal Revenue Code with respect to controlled foreign partnerships. It must be filed by a U.S. person who qualifies under one or more of the categories of filers listed in these instructions. Depending on the category of filer, and the applicable sections of the Code, Form 8865 must include identification information, one or more of Schedules A, A-1, A-3, B, G, H, K, K-1, K-2, K-3, L, M, M-1, M-2, N, D, O, and P. Additionally, if a Form 8832 was filed for the entity during that tax year, it may need to be attached to the Form 8865. A separate form should be completed for each foreign partnership.
IRS Form 8865 – Who Needs to Fill It Out?
IRS FORM 8865 is a filing requirement for U.S. persons qualifying under one or more of the Categories of Filers listed. Depending on which category you fall under, the form requires the completion of several items and statements, including Form 8865 (page 1) and Schedules A, A-2, N, K-1, and K-3 for Category 2 filers; or Schedules A-1 and O for Category 3 filers. Additional schedules may be required if you fall under two or more of the categories. Form 8865, along with the applicable schedules, must be filed for each foreign partnership, and should be attached to your income tax return for the tax year beginning in 2022. If Form 8832, Entity Classification Election, was filed for that year, it must be attached to the Form 8865 as well.
Step-by-Step: Form 8865 Instructions For Filling Out the Document
Form 8865 is used to report information concerning controlled foreign partnerships, transfers to foreign partnerships, and acquisitions, dispositions, and changes in foreign partnership interests. U.S. persons who qualify under one or more of the applicable Categories of Filers (as outlined in the Filing Requirements for Categories of Filers) must complete and file the form and any necessary schedules. The instructions included in this form provide specific guidance as to which schedules should be completed depending on the category of filer and should be used in conjunction with the corresponding instructions for Form 1065, U.S. Return of Partnership Income. Complete a separate Form 8865 with any necessary schedules for each foreign partnership. It is important to note that if a Form 8832, Entity Classification Election, is filed, a copy of the form should be included with the applicable tax return.
Below, we present a table that will help you understand how to fill out Form 8865.
|Information Required for Form 8865||Details|
|Purpose of Form||Report information concerning controlled foreign partnerships, transfers to foreign partnerships, and acquisitions, dispositions, and changes in foreign partnership interests.|
|Eligible Filers||U.S. persons qualifying under applicable Categories of Filers (as outlined in the Filing Requirements for Categories of Filers).|
|Form and Schedules||Complete and file Form 8865 along with necessary schedules. Refer to instructions for guidance on which schedules to complete based on the category of filer.|
|Multiple Partnerships||Complete a separate Form 8865 with schedules for each foreign partnership.|
|Entity Classification Election||If Form 8832 (Entity Classification Election) is filed, include a copy with the applicable tax return.|
Do You Need to File Form 8865 Each Year?
Yes, if you qualify as one or more of the Categories of Filers, you need to file Form 8865 each year with your income tax return. To determine what schedules and information you need to include, refer to the Filing Requirements for Categories of Filers chart. A separate Form 8865 must be filed for each foreign partnership, and any Form 8832 that was filed for the entity should be filed with the Form 8865. Instructions and specific instructions for Schedules B, K, K-1, M-1, and M-2 are also included with these instructions.
Download the official IRS Form 8865 PDF
On the official IRS website, you will find a link to download Form 8865. 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 8865