Form 8865: Return of U.S. Persons With Respect to Certain Foreign Partnerships

Form 8865 contains multiple schedules used to report different types of information about a foreign partnership and its U.S. partners. The schedules that apply depend on the taxpayer’s filing category and the activities of the foreign partnership.

Complete the applicable sections and schedules using the foreign partnership’s partnership agreement, financial statements, accounting records, ownership records, and other supporting information. Not every schedule will apply to every taxpayer.

Section 1

Section 1 generally provides identifying information about the foreign partnership and the U.S. person filing the form. This information establishes the partnership and the person responsible for the applicable filing.

Enter the requested information carefully and make sure it agrees with the partnership’s records and the U.S. person’s federal tax return.

Section 2

Section 2 generally provides information about the U.S. partner and the partner’s relationship with the foreign partnership. Information may include ownership percentages, interests, and other applicable partnership information.

Provide the requested partner information and make sure ownership information agrees with the partnership agreement and other supporting records.

Schedule A

Schedule A generally provides information about the ownership of the foreign partnership. This may include information about partners, ownership percentages, and changes in ownership.

Review the partnership’s ownership records and report the applicable information accurately. Keep documentation supporting ownership interests and ownership changes.

Schedule B

Schedule B generally provides information about the income and financial activities of the foreign partnership. It may include information about income, deductions, gains, losses, and other applicable financial amounts.

Use the foreign partnership’s accounting and financial records to complete the applicable information. Make sure the reported amounts are supported by the partnership’s records.

Schedule B-1

Schedule B-1 generally provides information about certain partners of the foreign partnership. The information may include ownership and identifying information for applicable partners.

Complete the schedule when applicable and make sure the information agrees with the partnership’s ownership records.

Schedule C

Schedule C generally provides information about the foreign partnership’s income statement. It may include income, expenses, gains, losses, and other financial information.

Use the partnership’s financial records to complete the applicable income statement information. Review the amounts for consistency with the partnership’s accounting records.

Schedule D

Schedule D generally provides information about changes in the partnership’s ownership or other applicable partnership interests. This may include acquisitions, dispositions, or other changes affecting ownership.

Report applicable ownership changes using the partnership’s records and supporting transaction documentation.

Schedule E

Schedule E generally provides information about foreign taxes paid or accrued by the foreign partnership or other applicable tax information.

Use available foreign tax records and supporting documentation when completing the applicable information. Make sure the amounts agree with the partnership’s records.

Schedule F

Schedule F generally provides information about the balance sheet of the foreign partnership. It may include information about assets, liabilities, and other financial balances.

Complete the applicable balance sheet information using the partnership’s financial records and supporting documentation.

Schedule G

Schedule G generally provides additional information about the foreign partnership and its activities. The questions may address ownership, contributions, distributions, transfers, transactions, or other applicable matters.

Answer the applicable questions based on the partnership’s records and the U.S. person’s circumstances. Provide additional information when required.

Schedule H

Schedule H generally provides information used to report certain current income or other applicable partnership amounts. The information may be used to determine the U.S. partner’s applicable share of partnership activity.

Complete the applicable calculations using the partnership’s financial and tax information. Maintain supporting records for the amounts reported.

Schedule I

Schedule I generally provides information about the U.S. partner’s distributive share of certain partnership income, deductions, gains, losses, or other amounts.

Use the partnership’s tax information and applicable records to report the U.S. partner’s share. Make sure the information is consistent with the partnership’s records and the taxpayer’s federal tax return.

Schedule K

Schedule K generally provides information about the foreign partnership’s income, deductions, credits, and other applicable tax items.

Complete the applicable information using the partnership’s financial and tax records. Review the amounts for consistency with other applicable schedules.

Schedule K-1

Schedule K-1 generally provides information about a partner’s share of the foreign partnership’s income, deductions, credits, and other applicable items.

Use the partnership’s records to prepare the applicable partner information. The amounts reported should be consistent with the partnership’s records and the partner’s tax reporting.

Schedule L

Schedule L generally provides information about the foreign partnership’s balance sheet and financial position.

Report the applicable assets, liabilities, and other financial information using the partnership’s accounting records. Review the balance sheet for consistency with the partnership’s financial statements.

Schedule M

Schedule M generally provides information about transactions between the foreign partnership and its partners or other related persons.

Review the partnership’s transaction records and identify applicable transactions. Report the required information accurately and retain supporting documentation.

Schedule N

Schedule N generally provides information about certain transfers of property involving the foreign partnership. This may include contributions or other transfers that are subject to applicable reporting requirements.

Review property transfer records and provide the applicable information about the property and transaction. Maintain supporting records for the reported transfer.

Additional Schedules and Information

Additional schedules or supporting information may be required depending on the U.S. person’s filing category, ownership interest, transfers, contributions, distributions, and other foreign partnership activities.

Review the completed Form 8865 to make sure all applicable schedules have been completed and that the information reported is consistent with the foreign partnership’s records.

Final Review

Review Form 8865 after completing all applicable sections and schedules. Check the U.S. partner information, foreign partnership information, ownership information, partner information, contributions, distributions, income, deductions, assets, liabilities, property transfers, related-party transactions, applicable schedules, supporting records, and final information reported.

A final review can help identify reporting errors before the form is submitted. U.S. persons should retain Form 8865, partnership agreements, ownership records, financial statements, accounting records, contribution and distribution records, transaction records, property records, tax documents, and other supporting records with their tax records.