8992 Instructions for Form 8992

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Instructions for Form 8992

Department of the Treasury
Internal Revenue Service

(Rev. December 2018)

(Use with Form 8992 and Form 8992 (Schedule A))
U.S. Shareholder Calculation of Global Intangible Low Taxed-Income (GILTI)

DRAFT AS OF
September 20, 2018
Section references are to the Internal Revenue
Code unless otherwise noted.

Future Developments

For the latest information about
developments related to Form 8992 and
its instructions, such as legislation
enacted after they were published, go to
IRS.gov/Form8992.
Additional guidance may be issued
subsequent to this publication. Please
review any additional information on the
website mentioned above prior to
completing Form 8992.

Reminders
Form 8993 deduction. If you are eligible
for a deduction for your GILTI inclusion
under section 250, please see Form 8993,
Section 250 Deduction for
Foreign-Derived Intangible Income (FDII)
and Global Intangible Low-Taxed Income
(GILTI), and its instructions.

General Instructions
Purpose of Form

Public Law 115-97 (Tax Cuts and Jobs Act
of 2017) enacted new section 951A. This
new section requires U.S. shareholders of
controlled foreign corporations (CFCs) to
include in gross income the shareholder’s
Global Intangible Low-Taxed Income
(GILTI) for years in which they are U.S.
shareholders of CFCs for tax years of
CFCs beginning after December 31, 2017.
Form 8992 is used to compute a U.S.
shareholder’s GILTI inclusion.

Who Must File

Any U.S. shareholder of one or more
CFCs that must take into account its pro
rata share of the tested income or tested
loss of the CFC(s) in determining the U.S.
shareholder’s GILTI inclusion, if any,
under section 951A.

CFC. A CFC is a foreign corporation that
has U.S. shareholders that own (directly,
indirectly, or constructively, within the
meaning of sections 958(a) and (b)) on
any day of the tax year of the foreign
corporation, more than 50% of:
1. The total combined voting power of
all classes of its voting stock; or
2. The total value of the stock of the
corporation.
Sep 20, 2018

U.S. shareholder. A U.S. shareholder is
a U.S. person who owns (directly,
indirectly, or constructively, within the
meaning of section 958) 10% or more of
the total combined voting power of all the
classes of voting stock of a CFC or 10% or
more of the total value of shares of all
classes of stock of a CFC.

Treaty-Based Return
Positions

Attach Form 8992 and Schedule A to your
income tax return (including, if applicable,
partnership or exempt organization return)
and file both by the due date (including
extensions) for that return.

You are generally required to file Form
8833, Treaty-Based Return Position
Disclosure Under Section 6114 or
7701(b), to disclose a return position that
any treaty of the United States (such as an
income tax treaty, an estate and gift tax
treaty, or a friendship, commerce, and
navigation treaty):
• Overrides or modifies any provision of
the Internal Revenue Code; and
• Causes, or potentially causes, a
reduction of any tax incurred at any time.

Computer-Generated Form
8992 and Form 8992
(Schedule A)

Specific Instructions

When and Where To File

Generally, all computer-generated forms
must receive prior approval from the IRS
and are subject to an annual review.
However, see exception below. Requests
for approval may be submitted
electronically to [email protected],
or requests may be mailed to: Internal
Revenue Service, Attention: Substitute
Forms Program, SE:W:CAR:MP:P:TP,
5000 Ellin Road, C6-440, Lanham, MD
20706.
Be sure to attach the approval
letter to Form 8992. However, if
CAUTION the computer-generated form is
identical to the IRS prescribed form, it
does not need to go through the approval
process, and an attachment is not
necessary.

!

Every year, the IRS issues a revenue
procedure to provide guidance for filers of
computer-generated forms. In addition,
every year the IRS issues Pub. 1167,
General Rules and Specifications for
Substitute Forms and Schedules, which
reprints the most recent applicable
revenue procedure. Pub. 1167 is available
at IRS.gov/Pub1167.

Corrections to Form 8992

If you file a Form 8992 that you later
determine is incomplete or incorrect, file a
corrected Form 8992 with an amended tax
return, using the amended return
instructions for the return with which you
originally filed Form 8992. Write
“Corrected” at the top of Form 8992 and
attach a statement identifying the
changes.
Cat. No. 71351C

See Form 8833 for exceptions.

Identifying Information
Name Change

If the name of either the person filing the
return or any of the CFCs being reported
on Form 8992, Schedule A, changed
within the past 3 years, show the prior
name(s) in parentheses after the current
name.

Item A. Identifying Number

The identifying number of an individual is
his or her social security number (SSN).
The identifying number of all others is their
employer identification number (EIN). If a
U.S. corporation that owns stock in a
foreign corporation is a member of a
consolidated group, list the common
parent as the person filing the return and
enter its EIN in Item A. See IRS.gov/
Form8992 for the latest information
regarding GILTI and consolidated groups.

Item B. Identifying Number

If the name of the U.S. shareholder of the
CFCs reported on this Form 8992 is
different from the name of the person filing
this return, enter the U.S. shareholder’s
identifying number here.

Part I. Complete the Form 8992,
Schedule A and Schedule A –
Continuation Sheet(s) columns (a) through
(f) first, since totals from the Schedule A
are entered onto Part I of this form. Note,
any reference to Schedule A totals
includes the amounts from any
Schedule A – Continuation Sheet(s).

If the amount on line 3 is positive,
complete Form 8992, Schedule A and
Schedule A - Continuation Sheet(s)
columns (g) through (k). If the amount on
this line is zero or negative, stop here and
include Form 8992 and Form 8992
(Schedule A) with your return.
Part II, line 3. This amount will be used to
calculate column (k) on Schedule A. For a
corporate shareholder, enter this amount
on Form 1120, Schedule C, line 17, or on
the comparable line of other corporate
returns.
For a noncorporate shareholder, enter
the result on Schedule 1 (Form 1040),
line 21 (Other Income), or on the
comparable line of other noncorporate tax
returns.

Column (d)

Enter the tested loss, if any, from line 6,
Form 5471, Schedule I-1 for each CFC
listed in column (a).

Column (e)

Enter your pro rata share of the tested
income listed in column (c).

Schedule J, Accumulated Earnings and
Profits (E&P) of Controlled Foreign
Corporation, and in Form 5471,
Schedule P, Previously Taxed Earnings
and Profits of U.S. Shareholder of Certain
Foreign Corporations, for each CFC.

Line 1

Column (g)

On the first completed page of
Schedule A, enter the totals for columns
(c) through (k) for Schedule A and any
continuation sheets. Enter the total from
line 1, column (e), on Form 8992, Part I,
line 1. Enter the total from line 1, column
(f) on Form 8992, Part I, line 2. Enter the
total from line 1, column (g) on Form 8992,
Part II, line 2a. Enter the total from line 1,
column (i) on Form 8992, Part II, line 2b.

Note. If you have a tested loss for a
particular CFC no entry should be made
for that CFC in this column. See
instructions for Form 5471, Schedule I-1
for the definition of QBAI.

Paperwork Reduction Act Notice. We
ask for the information on this form to carry
out the Internal Revenue laws of the
United States. You are required to give us
the information. We need it to ensure that
you are complying with these laws and to
allow us to figure and collect the right
amount of tax.

DRAFT AS OF
September 20, 2018
Schedule A

Specific Instructions

A U.S. shareholder files Form 8992,
Schedule A to report its pro rata share of
amounts for each CFC (the taxable year of
which ends with or within the
shareholder’s taxable year) from each
CFC’s Form 5471, Schedule I-1,
Information for Global Intangible
Low-Taxed Income, to determine the U.S.
shareholder’s GILTI, if any, and to
determine the amount of the U.S.
shareholder’s GILTI, if any, allocated to
each CFC. A U.S. shareholder may not file
a Form 5471, Schedule I-1 for each CFC
that is part of its GILTI computation, for
instance due to an exception for multiple
filers of the same information. In such
case, the U.S. shareholder will still need to
provide amounts with respect to the CFC
as if the U.S. shareholder filed Form 5471,
Schedule I-1 for that CFC.
Due to space limitations, if you
need to list more CFCs than fit on
CAUTION one Schedule A, attach
Schedule A - Continuation Sheet(s) to
continue listing the CFCs and their
respective information. Do not write “See
attached” in the section and attach
additional sheets.

!

Column (b)

Please refer to the instructions for the
Form 5471, line 1b(2) – Reference ID
Number.

Column (c)

Enter the tested income, if any, from line 6
of Form 5471, Schedule I-1 for each CFC
listed in column (a).

Column (f)

Enter your pro rata share of the tested loss
listed in column (d).

Enter your pro rata share of the amount of
qualified business asset investment
(QBAI) from Form 5471, Schedule I-1,
line 8, multiplied by 10% (.10) for each
relevant CFC.

Column (h)

Enter your pro rata share of the amount of
interest expense from Form 5471,
Schedule I-1, line 9 for each CFC.

Column (i)

Enter the amount of your specified interest
expense with respect to each CFC.
Specified interest expense is the amount
of interest expense taken into account
under section 951A(c)(2)(A)(ii) in
determining your net CFC tested income
for the taxable year to the extent the
interest income attributable to that
expense is not taken into account in
determining your net CFC tested income.
See IRS.gov/Form8992 for the latest
information.

Column (j)

Before completing column (j), enter the
totals (including amounts from any
Schedule A - Continuation Sheet(s)) of
columns (c) through (i) on line 1 for each
column and complete Form 8992, Parts I
and II. Then for each CFC with an amount
in column (e), divide that amount by the
total on line 1, column (e). Enter the result
here to four decimal places.

Column (k)

Multiply Form 8992, Part II, line 3 by
column (j) and enter the amount here in
whole dollars only. This information is
used in completing Form 5471,

-2-

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confidential, as required by section 6103.
The time needed to complete and file
this form will vary depending on individual
circumstances. The estimated burden for
individual and business taxpayers filing
this form is approved under OMB control
number 1545–0123 and is included in the
estimates shown in the instructions for
their individual and business income tax
returns.
If you have comments concerning the
accuracy of these time estimates or
suggestions for making this form simpler,
we would be happy to hear from you. See
the instructions for the tax return with
which this form is filed.