Fillable Form 8805

What is Form 8805?

Form 8805, Foreign Partner’s Information Statement of Section 1446 Withholding Tax, is an Internal Revenue Service (IRS) form used to show the amount of effectively connected taxable income (ECTI) and the total tax credit allocable to the foreign partner for the partnership’s tax year.

Foreign partners must attach IRS Form 8805 to their U.S. income tax returns to claim a withholding credit for their shares of the section 1446 tax withheld by the partnership. Any U.S. person erroneously subjected to the withholding tax would also receive Form 8805 from a partnership, and the 8805 form should be attached to the U.S. person’s income tax return to claim a withholding credit.

In some cases, the 8805 tax form can also be completed by a foreign trust or estate. A foreign partner that is a foreign trust or estate must complete Schedule T of Form 8805 to report to the trust’s or estate's beneficiaries the section 1446 withholding tax that can be claimed as a withholding tax credit on the beneficiaries’ income tax returns.

How to fill out Form 8805?

Filling out Form 8805 IRS is quick and simple. You can download and print a PDF copy of Form 8805 from the Internal Revenue Service (IRS) website which you can manually complete. But for your convenience, you can also fill out Form 8805 electronically on PDFRun. By following the instructions below, you can accomplish the form in minutes.

There are multiple copies of Form 8805 that must be filled out. The instructions below apply to all copies of the form, but each form is sent to different recipients, so it is important to keep in mind which forms you are filling out.

Copy A is to be filed with Form 8804, Annual Return for Partnership Withholding Tax, and to be submitted to the IRS.

Copy B is to be kept for your records.

Copy C is to be filed with your federal tax return.

Copy D is to be given to the withholding agent.

For partnership’s calendar year…or tax year beginning…and ending…

Enter the partnership’s calendar year using the format: Year, or enter the beginning and ending of the tax year using the format: Month, Year.

Line 1a

Enter your foreign partner’s name.

Line 1b

Enter your foreign partner’s U.S. identifying number.

Line 1c

When providing a U.S. address, enter the suite, room, or other unit number after the street address. If the post office doesn’t deliver mail to the street address and the partnership (or withholding agent) has a P.O. box, show the box number instead of the street address. If the partnership (or withholding agent) receives its mail in care of a third party (such as an accountant or an attorney), enter on the street address line “c/o” followed by the third party’s name and street address or P.O. box.

When providing a foreign address, enter the number and street, city or town, state or province, the name of the country, and ZIP or foreign postal code. Follow the foreign country’s practice in placing the postal code in the address. Don’t abbreviate the country name.

Line 2

Enter the account number assigned by the partnership, if any.

Line 3

Enter the type of partner (for example, individual, corporation, partnership, trust, estate).

Line 4

Enter the applicable two-letter code from the list of Foreign Country Code Listing for Modernized e-File on the official IRS website, for the country of which the partner is a resident for tax purposes. These codes are used by the IRS to provide information to all tax treaty countries for purposes of their tax administration.

Line 5a

Enter the name of the partnership.

Line 5b

Enter your U.S. Employer Identification Number (EIN).

Line 5c

When providing a U.S. address, enter the suite, room, or other unit number after the street address. If the post office doesn’t deliver mail to the street address and the partnership (or withholding agent) has a P.O. box, show the box number instead of the street address. If the partnership (or withholding agent) receives its mail in care of a third party (such as an accountant or an attorney), enter on the street address line “c/o” followed by the third party’s name and street address or P.O. box.

When providing a foreign address, enter the number and street, city or town, state or province, the name of the country, and ZIP or foreign postal code. Follow the foreign country’s practice in placing the postal code in the address. Don’t abbreviate the country name.

Line 6

Enter your withholding agent’s name. If the partnership is also the withholding agent, enter “SAME” and proceed to line 8a.

Line 7

Enter your withholding agent’s U.S. Employer Identification Number (EIN).

Line 8a

Mark the box if the partnership identified on line 5a owns an interest in one or more partnerships.

Line 8b

Mark the box if any of the partnership’s effectively connected taxable income (ECTI) is exempt from U.S. tax for the partner identified on line 1a.

Line 9

Enter the partnership ECTI allocable to the foreign partner (before considering any state and local income tax reduction permitted under Regulations section 1.1446-6(c)(1)(iii) or any reduction amounts resulting from certified partner-level items received from foreign partners using Form 8804-C, Certificate of Partner-Level Items to Reduce Section 1446 Withholding).

The partnership must provide a statement (generally, Schedule K-1 (Form 1065), Partner’s Share of Income) to the foreign partner that lists each income type of ECTI included here. The income types of ECTI that can be included are:

• Total ECTI allocable to corporate partners
• Total ECTI allocable to non-corporate partners (other than the specific types of income listed below)
• 28% rate gains (non-corporate partners only)
• Unrecaptured section 1250 gains (non-corporate partners only)
• Adjusted net capital gain (including qualified dividend income and net section 1231 gains) (non-corporate partners only)

The partnership also must provide any additional information to foreign partners that they may reasonably need to complete Schedule P (Form 1120-F), List of Foreign Partner Interests in Partnerships.

Line 10

To figure the total tax credit allowed to a foreign partner under section 1446, subtract from each type of ECTI allocable to the foreign partner the amount of any state and local income tax reduction permitted under Regulations section 1.1446-6(c)(1)(iii) and any reduction amounts resulting from certified partner-level items received from foreign partners, using Form 8804-C, Certificate of Partner-Level Items to Reduce Section 1446 Withholding, that the partnership considered in determining that partner's portion of the section 1446 withholding tax due. Then multiply each net amount by the applicable percentage. Finally, total the resulting amounts.

For all corporate partners, the section 1446 applicable percentage is 21% (0.21). For all non-corporate foreign partners, the section 1446 applicable percentage is generally 37% (0.37).

If the partnership relied on a certificate the partner submitted under Regulations section 1.1446-6(c)(1)(ii) to determine that the partnership isn’t required to pay any section 1446 withholding tax with respect to that partner, enter -0-. See Form 8804-C, Certificate of Partner-Level Items to Reduce Section 1446 Withholding, Part III.

The partnership is required to attach to Form 8805 the calculation described in the first paragraph of these line 10 instructions. Furthermore, if the total section 1446 withholding tax paid for a partner has been reduced as a result of the state and local income tax reduction permitted under Regulations section 1.1446-6(c)(1)(iii) or as a result of relying in whole or in part on a partner’s Form 8804-C, Certificate of Partner-Level Items to Reduce Section 1446 Withholding, then the documentation described below also must be attached to the Form 8805 for that partner.

• If the total section 1446 withholding tax paid for the partner has been reduced because the partnership relied on a Form 8804-C, attach that Form 8804-C to the partner's Form 8805.
• A statement showing the calculation of the tax due relating to the partner if any Forms 8804-C were relied on. See Regulations section 1.1446-6(d)(3)(i).
• If the total section 1446 withholding tax paid for the partner has been reduced based on the state and local income tax reduction permitted under Regulations section 1.1446-6(c)(1)(iii), attach a statement showing the calculation of the tax due.

With respect to the last two bulleted items, a statement showing one calculation for both items is permitted.

Schedule T–Beneficiary Information

If the foreign partner is a foreign trust or estate, the foreign trust or estate must provide to each of its beneficiaries a copy of Form 8805 furnished by the partnership. In addition, the foreign trust or estate must complete Schedule T for each of its beneficiaries and must provide that Schedule T information to each beneficiary.

The foreign trust or estate can provide all of the information listed in the previous paragraph on a single Form 8805 for each of its beneficiaries. In this case, the information provided in boxes 1a through 10 will be the same for all of the beneficiaries, but the information provided on Schedule T can vary from beneficiary to beneficiary, depending on the ownership interests of the respective beneficiaries.

Line 11a

Enter the name of the beneficiary.

Line 11b

Enter the U.S. identifying number of the beneficiary.

Line 11c

When providing a U.S. address, enter the suite, room, or other unit number after the street address. If the post office doesn’t deliver mail to the street address and the partnership (or withholding agent) has a P.O. box, show the box number instead of the street address. If the partnership (or withholding agent) receives its mail in care of a third party (such as an accountant or an attorney), enter on the street address line “c/o” followed by the third party’s name and street address or P.O. box.

When providing a foreign address, enter the number and street, city or town, state or province, the name of the country, and ZIP or foreign postal code. Follow the foreign country’s practice in placing the postal code in the address. Don’t abbreviate the country name.

Line 12

Enter the amount of effectively connected taxable income (ECTI) on line 9 to be included in the beneficiary’s gross income. The foreign trust or estate must provide a statement to each of its beneficiaries that lists each income type of ECTI included here. The income types of ECTI that can be included are:

• Total ECTI allocable to corporate beneficiaries
• Total ECTI allocable to non-corporate beneficiaries (other than the specific types of income listed below)
• 28% rate gains (non-corporate beneficiaries only)
• Unrecaptured section 1250 gains (non-corporate beneficiaries only)
• Adjusted net capital gain (including qualified dividend income and net section 1231 gains) (non-corporate beneficiaries only).

Line 13

To determine the total tax credit allowed to a beneficiary under section 1446, multiply each type of ECTI on line 12 by the applicable percentage.

For all corporate partners, the section 1446 applicable percentage is 21% (0.21).

For all non-corporate foreign partners, the section 1446 applicable percentage is generally 37% (0.37). However, in some circumstances, the partnership can consider the highest rate applicable to a particular type of income allocated to a non-corporate partner if such partner would be entitled to use a preferential rate on such income or gain.