Form 965-C
Forms

Form 965-C: Transfer Agreement Under Section 965(h)(3)

Form 965-C is used by eligible section 965(h) transferors and transferees to enter into a transfer agreement under section 965(h)(3) of the US Tax Code. This form requires specified information to meet the requirements of Regulations section 1.965-7(b)(3)(iii)(B)(4), with both parties needing to file and attach the form to their tax return within 30 days of the covered acceleration event.

What is Form 965-C?

Form 965-C is used by an eligible section 965(h) transferor and an eligible section 965(h) transferee to enter into a transfer agreement under section 965(h)(3). Both parties must complete and file Form 965-C to meet the requirements of Regulations 1.965-7(b)(3)(iii). Form 965-C must be filed within 30 days of the covered acceleration event, and a duplicate copy of the form must be included with the filing party’s taxable year tax returns. The eligible section 965(h) transferor must also include a copy of Form 965-A or -B. Amended transfer agreements are unnecessary if the section 965(h) net tax liability is adjusted or changed after the due date.

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IRS Form 965-C – Who Needs to Fill It Out?

IRS Form 965-C must be filled out by both an eligible section 965(h) transferor (U.S. person with respect to which a covered acceleration event occurs) and an eligible section 965(h) transferee (single U.S. person that is not a domestic pass-through entity and meets one of 6 requirements listed in Regulations section 1.965-7). The form sets forth the necessary information and representations required to meet the requirements of Regulations section 1.965-7(b)(3)(iii)(B)(4). The original form must be filed within 30 days of the covered acceleration event, and a duplicate copy must be attached to the respective tax returns. Both individuals must also attach their most recent copy of Form 965-A or Form 965-B, as applicable. No extensions of time are granted and amended transfers are not required if the section 965(h) net tax liability is changed on an amended return.

Step-by-Step: Form 965-C Instructions For Filling Out the Document

Form 965-C must be completed and filed by both the eligible section 965(h) transferor and the eligible section 965(h) transferee within 30 days of the covered acceleration event. A duplicate copy should also be attached to each party’s tax return for the taxable year in which the event occurred and a copy of the eligible section 965(h) transferor’s most recent Form 965-A or Form 965-B must also be included. Filing the form and meeting the requirements of Regulations section 1.965-7(b)(3)(iii)(B)(4) constitutes entry into a transfer agreement under section 965(h)(3). However, if the Commissioner discovers a material misrepresentation or omission or if additional information is not provided, the transfer agreement may be rejected or the Commissioner may determine that a different acceleration event has occurred.

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Below, we present a table that will help you understand how to fill out Form 965-C.

Party Required Information
Eligible Section 965(h) Transferor Form 965-C completion and filing within 30 days of the covered acceleration event
Eligible Section 965(h) Transferee Form 965-C completion and filing within 30 days of the covered acceleration event
Both Parties Attach a duplicate copy to each party’s tax return for the taxable year of the event
Eligible Section 965(h) Transferor Include a copy of the most recent Form 965-A or Form 965-B
All Parties Meeting the requirements of Regulations section 1.965-7(b)(3)(iii)(B)(4) constitutes entry into a transfer agreement under section 965(h)(3)
Commissioner If a material misrepresentation or omission is discovered or if additional information is not provided, the transfer agreement may be rejected, or a different acceleration event may be determined
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Do You Need to File Form 965-C Each Year?

Form 965-C is used by eligible section 965(h) transferors and transferees to meet the requirements of Regulations section 1.965-7(b)(3)(iii)(B)(4). It should be filed no later than 30 days after a covered acceleration event and must be mailed to the IRS, with a copy attached to the relevant tax returns. Additional information may be required, and misrepresentations and omissions may invalidate the agreement. An amended transfer agreement is not required for any changes made on an amended tax return.

Download the official IRS Form 965-C PDF

On the official IRS website, you will find a link to download Form 965-C. 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 965-C

Sources:

https://www.irs.gov/forms-pubs/about-form-965-c

https://www.irs.gov/instructions/i965c

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