8865 Return of U.S. Persons With Respect to Certain Foreign P

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Form

8865

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

▶

2018

▶ Attach to your tax return.
Go to www.irs.gov/Form8865 for instructions and the latest information.

Information furnished for the foreign partnership’s tax year
beginning
, 2018, and ending
, 20

Department of the Treasury
Internal Revenue Service

Attachment
Sequence No.

DRAFT AS OF
July 18, 2018
DO NOT FILE

A Category of filer (see Categories of Filers in the instructions and check applicable box(es)):

Filer’s address (if you aren’t filing this form with your tax return)

1

2

3

4

B Filer’s tax year beginning

, 20

, and ending

Filer’s share of liabilities: Nonrecourse $
Qualified nonrecourse financing $
If filer is a member of a consolidated group but not the parent, enter the following information about the parent:
Name

(1) Name

G1

, 20

Other $

EIN

Address
Check if any excepted specified foreign financial assets are reported on this form. See instructions
Information about certain other partners (see instructions)

E
F

118

Filer’s identification number

Name of person filing this return

C
D

OMB No. 1545-1668

(2) Address

.

(3) Identification number

.

.

.

.

.

.

.

.

.

.

.

(4) Check applicable box(es)

Category 1

Category 2

Constructive owner

2(a) EIN (if any)

Name and address of foreign partnership

2(b) Reference ID number (see instructions)
3 Country under whose laws organized

4

H
1

5 Principal place of
business

Date of
organization

6 Principal business
activity code number

Provide the following information for the foreign partnership’s tax year:
Name, address, and identification number of agent (if any) in the
United States

7 Principal business
activity

8a Functional currency

8b Exchange rate
(see instructions)

2 Check if the foreign partnership must file:
Form 1042

Form 8804

Form 1065

Service Center where Form 1065 is filed:

3

5

6
7
8
9
10a
b
11

Name and address of foreign partnership’s agent in country of
organization, if any

4 Name and address of person(s) with custody of the books and records of the
foreign partnership, and the location of such books and records, if different

During the tax year, did the foreign partnership pay or accrue any interest or royalty for which the deduction is not
allowed under section 267A? See instructions . . . . . . . . . . . . . . . . . . . . . ▶
If “Yes,” enter the total amount of the disallowed deductions . . . . . . . . . . . . . . . . . ▶ $
Is the partnership a section 721(c) partnership, as defined in Temporary Regulations section 1.721(c)-1T(b)(14)? . . ▶
Were any special allocations made by the foreign partnership?
. . . . . . . . . . . . . . . . ▶

Yes

No

Yes
Yes

No
No

Yes
Yes

No
No

Yes

No

Enter the number of Forms 8858, Information Return of U.S. Persons With Respect to Foreign Disregarded Entities
(FDEs) and Foreign Branches (FBs), attached to this return. See instructions
. . . . . . . . . . . . ▶
How is this partnership classified under the law of the country in which it’s organized?
. ▶
Does the filer have an interest in the foreign partnership, or an interest indirectly through the foreign partnership, that’s a separate
unit under Reg. 1.1503(d)-1(b)(4) or part of a combined separate unit under Reg. 1.1503(d)-1(b)(4)(ii)? If “No,” skip question 10b ▶
If “Yes,” does the separate unit or combined separate unit have a dual consolidated loss, as defined in Reg. 1.1503(d)-1(b)(5)(ii)? ▶
Does this partnership meet both of the following requirements?
1. The partnership’s total receipts for the tax year were less than $250,000.
. . . . . ▶
2. The value of the partnership’s total assets at the end of the tax year was less than $1 million.
If “Yes,” don’t complete Schedules L, M-1, and M-2.

Signature of general partner or limited liability company member

Print/Type preparer’s name

Firm’s name

Preparer’s signature

▲

Paid
Preparer
Use Only

Under penalties of perjury, I declare that I have examined this return, including accompanying schedules and statements, and to the best of my knowledge
and belief, it is true, correct, and complete. Declaration of preparer (other than general partner or limited liability company member) is based on all
information of which preparer has any knowledge.
▲

Sign Here Only
if You’re Filing
This Form
Separately and
Not With Your
Tax Return.

}

Date

Date

Firm’s EIN ▶

▶

Firm’s address ▶

For Privacy Act and Paperwork Reduction Act Notice, see the separate instructions.

Check
if PTIN
self-employed

Phone no.
Cat. No. 25852A

Form 8865 (2018)

Form 8865 (2018)

Schedule A

Page 2
Constructive Ownership of Partnership Interest. Check the boxes that apply to the filer. If you check
box b, enter the name, address, and U.S. taxpayer identification number (if any) of the person(s) whose
interest you constructively own. See instructions.

a

b

Owns a direct interest

Name

Schedule A-1

Address

Name of foreign
partner

Check if
foreign
person

Identification number (if any)

DRAFT AS OF
July 18, 2018
DO NOT FILE

Check if
direct
partner

Certain Partners of Foreign Partnership (see instructions)
Name

Schedule A-2

Owns a constructive interest

Address

Check if
foreign
person

Identification number (if any)

Foreign Partners of Section 721(c) Partnership (see instructions)
Address

Country of
organization
(if any)

U.S. taxpayer
Check if related to
identification number
U.S. transferor
(if any)

Percentage interest

Capital

Profits

%
%

Does the partnership have any other foreign person as a direct partner?

Schedule A-3

.

.

.

.

.

.

.

.

.

.

.

.

.

Yes

No

Affiliation Schedule. List all partnerships (foreign or domestic) in which the foreign partnership owns a
direct interest or indirectly owns a 10% interest.
Name

Schedule B

.

%
%

Address

EIN
(if any)

Total ordinary
income or loss

Check if
foreign
partnership

Income Statement—Trade or Business Income

Tax and Payment

Deductions (see instructions for limitations)

Income

Caution: Include only trade or business income and expenses on lines 1a through 22 below. See the instructions for more information.

1a
b
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16 a
b
17
18
19
20
21
22
23
24
25
26
27
28
29
30

Gross receipts or sales . . . . . . . . . . . . . .
1a
Less returns and allowances . . . . . . . . . . . . .
1b
Cost of goods sold . . . . . . . . . . . . . . . . . . . . . . . . .
Gross profit. Subtract line 2 from line 1c . . . . . . . . . . . . . . . . . .
Ordinary income (loss) from other partnerships, estates, and trusts (attach statement) . . .
Net farm profit (loss) (attach Schedule F (Form 1040)) . . . . . . . . . . . . .
Net gain (loss) from Form 4797, Part II, line 17 (attach Form 4797) . . . . . . . . .
Other income (loss) (attach statement) . . . . . . . . . . . . . . . . . .
Total income (loss). Combine lines 3 through 7 . . . . . . . . . . . . . . .
Salaries and wages (other than to partners) (less employment credits) . . . . . . . .
Guaranteed payments to partners . . . . . . . . . . . . . . . . . . . .
Repairs and maintenance . . . . . . . . . . . . . . . . . . . . . . .
Bad debts . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Rent . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Taxes and licenses . . . . . . . . . . . . . . . . . . . . . . . . .
Interest (see instructions) . . . . . . . . . . . . . . . . . . . . . . .
Depreciation (if required, attach Form 4562) . . . . . . . . 16a
Less depreciation reported elsewhere on return . . . . . . 16b
Depletion (Don’t deduct oil and gas depletion.)
. . . . . . . . . . . . . . .
Retirement plans, etc. . . . . . . . . . . . . . . . . . . . . . . . .
Employee benefit programs . . . . . . . . . . . . . . . . . . . . . .
Other deductions (attach statement) . . . . . . . . . . . . . . . . . . .
Total deductions. Add the amounts shown in the far right column for lines 9 through 20 . .
Ordinary business income (loss) from trade or business activities. Subtract line 21 from line 8
Interest due under the look-back method—completed long-term contracts (attach Form 8697)
Interest due under the look-back method—income forecast method (attach Form 8866) . .
BBA AAR imputed underpayment (see instructions) . . . . . . . . . . . . . .
Other taxes (see instructions) . . . . . . . . . . . . . . . . . . . . .
Total balance due. Add lines 23 through 27 . . . . . . . . . . . . . . . .
Payment (see instructions) . . . . . . . . . . . . . . . . . . . . . .
Amount owed. If line 28 is smaller than line 27, enter amount owed . . . . . . . . .
Overpayment. If line 28 is larger than line 27, enter overpayment . . . . . . . . .

1c
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16c
17
18
19
20
21
22
23
24
25
26
27
28
29
30
Form 8865 (2018)

Page 3

Form 8865 (2018)

Other Information

Alternative
Minimum Tax
(AMT) Items

Foreign Transactions

Credits

SelfEmployment

Deductions

Income (Loss)

Schedule K
1
2
3a
b
c
4
5
6

Partners’ Distributive Share Items

Ordinary business income (loss) (page 2, line 22) . . . . . . . . . . . . . . .
1
Net rental real estate income (loss) (attach Form 8825)
. . . . . . . . . . . . .
2
Other gross rental income (loss)
. . . . . . . . . . .
3a
Expenses from other rental activities (attach statement) . . . .
3b
Other net rental income (loss). Subtract line 3b from line 3a . . . . . . . . . . . .
3c
Guaranteed payments
. . . . . . . . . . . . . . . . . . . . . . .
4
Interest income . . . . . . . . . . . . . . . . . . . . . . . . . .
5
Dividends and dividend equivalents: a Ordinary dividends . . . . . . . . . . .
6a
b Qualified dividends . .
6b
c Dividend equivalents . .
6c
7
Royalties . . . . . . . . . . . . . . . . . . . . . . . . . . . .
7
8
Net short-term capital gain (loss) (attach Schedule D (Form 1065)) . . . . . . . . . .
8
9a Net long-term capital gain (loss) (attach Schedule D (Form 1065)) . . . . . . . . . .
9a
b Collectibles (28%) gain (loss)
. . . . . . . . . . . .
9b
c Unrecaptured section 1250 gain (attach statement)
. . . . .
9c
10
Net section 1231 gain (loss) (attach Form 4797) . . . . . . . . . . . . . . . .
10
11
Other income (loss) (see instructions) Type ▶
11
12
Section 179 deduction (attach Form 4562) . . . . . . . . . . . . . . . . .
12
13a Contributions . . . . . . . . . . . . . . . . . . . . . . . . . .
13a
b Investment interest expense . . . . . . . . . . . . . . . . . . . . . .
13b
c Section 59(e)(2) expenditures:
(2) Amount ▶ 13c(2)
(1) Type ▶
d Other deductions (see instructions)
13d
Type ▶
14a Net earnings (loss) from self-employment . . . . . . . . . . . . . . . . . .
14a
b Gross farming or fishing income
. . . . . . . . . . . . . . . . . . . .
14b
c Gross nonfarm income . . . . . . . . . . . . . . . . . . . . . . .
14c
15a Low-income housing credit (section 42(j)(5)) . . . . . . . . . . . . . . . . .
15a
b Low-income housing credit (other) . . . . . . . . . . . . . . . . . . . .
15b
c Qualified rehabilitation expenditures (rental real estate) (attach Form 3468) . . . . . . .
15c
d Other rental real estate credits (see instructions)
15d
Type ▶
Type ▶
e Other rental credits (see instructions)
15e
f Other credits (see instructions)
Type ▶
15f
16a Name of country or U.S. possession ▶
b Gross income from all sources . . . . . . . . . . . . . . . . . . . . .
16b
c Gross income sourced at partner level
. . . . . . . . . . . . . . . . . .
16c
Foreign gross income sourced at partnership level
d Section 951A category ▶
e Foreign branch category . . . . . ▶ 16e
f Passive category ▶
h Other (attach statement) ▶ 16h
g General category ▶
Deductions allocated and apportioned at partner level
j Other . . . . . . . . . . . ▶
16j
i Interest expense ▶
Deductions allocated and apportioned at partnership level to foreign source income
k Section 951A category ▶
l Foreign branch category . . . . . ▶ 16l
m Passive category ▶
o Other (attach statement) ▶ 16o
n General category ▶
p Total foreign taxes (check one): ▶
Paid
Accrued . . . . . . . . . . . .
16p
q Reduction in taxes available for credit (attach statement) . . . . . . . . . . . . .
16q
r Other foreign tax information (attach statement)
17a Post-1986 depreciation adjustment . . . . . . . . . . . . . . . . . . .
17a
17b
b Adjusted gain or loss . . . . . . . . . . . . . . . . . . . . . . . .
c Depletion (other than oil and gas) . . . . . . . . . . . . . . . . . . . .
17c
17d
d Oil, gas, and geothermal properties—gross income . . . . . . . . . . . . . .
e Oil, gas, and geothermal properties—deductions . . . . . . . . . . . . . . .
17e
f Other AMT items (attach statement) . . . . . . . . . . . . . . . . . . .
17f
18a Tax-exempt interest income . . . . . . . . . . . . . . . . . . . . . .
18a
b Other tax-exempt income
. . . . . . . . . . . . . . . . . . . . . .
18b
c Nondeductible expenses . . . . . . . . . . . . . . . . . . . . . . .
18c
19a Distributions of cash and marketable securities . . . . . . . . . . . . . . . .
19a
b Distributions of other property . . . . . . . . . . . . . . . . . . . . .
19b
20a Investment income
. . . . . . . . . . . . . . . . . . . . . . . .
20a
20b
b Investment expenses . . . . . . . . . . . . . . . . . . . . . . . .
c Other items and amounts (attach statement)

Total amount

DRAFT AS OF
July 18, 2018
DO NOT FILE

Form 8865 (2018)

Page 4

Form 8865 (2018)

Schedule L

1
2a
b
3
4
5
6
7a
b
8
9a
b
10a
b
11
12a
b
13
14
15
16
17
18
19a
b
20
21
22

Balance Sheets per Books. (Not required if Item H11, page 1, is answered “Yes.”)

Assets
Cash . . . . . . . . . . . . .
Trade notes and accounts receivable . . .
Less allowance for bad debts . . . . .
Inventories . . . . . . . . . . .
U.S. government obligations . . . . .
Tax-exempt securities
. . . . . . .
Other current assets (attach statement) . .
Loans to partners (or persons related to partners)
Mortgage and real estate loans
. . . .
Other investments (attach statement) . . .
Buildings and other depreciable assets . .
Less accumulated depreciation . . . .
Depletable assets . . . . . . . . .
Less accumulated depletion
. . . . .
Land (net of any amortization) . . . . .
Intangible assets (amortizable only) . . .
Less accumulated amortization
. . . .
Other assets (attach statement) . . . .
Total assets . . . . . . . . . . .
Liabilities and Capital
Accounts payable . . . . . . . . .
Mortgages, notes, bonds payable in less than 1 year
Other current liabilities (attach statement) .
All nonrecourse loans . . . . . . . .
Loans from partners (or persons related to partners)
Mortgages, notes, bonds payable in 1 year or more
Other liabilities (attach statement) . . . .
Partners’ capital accounts . . . . . .
Total liabilities and capital . . . . . .

Beginning of tax year
(a)
(b)

End of tax year
(c)

(d)

DRAFT AS OF
July 18, 2018
DO NOT FILE
Form 8865 (2018)

Page 5

Form 8865 (2018)

Schedule M

Balance Sheets for Interest Allocation
(a)
Beginning of
tax year

1
2

Total U.S. assets . .
Total foreign assets:
a Passive category . .
b General category . .
c Other (attach statement)

.

.

.

.
.
.

.
.
.

.
.
.

Net income (loss) per books .

2

Income included on Schedule K,
lines 1, 2, 3c, 5, 6a, 7, 8, 9a, 10,
and 11 not recorded on books
this tax year (itemize):
$

3

Guaranteed payments (other
than health insurance) . . .

4

Expenses recorded on books
this tax year not included on
Schedule K, lines 1 through
13d, and 16p (itemize):
a Depreciation $
b Travel and entertainment $
Add lines 1 through 4 .

Schedule M-2

3
4

.

.

.

.

.

.

.

.

.
.
.

.
.
.

.
.
.

.
.
.

.
.
.

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.
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.
.

.
.
.

.
.
.

.
.
.

.

.
.
.

.
.
.

.

.

6

Income recorded on books this
tax year not included on
Schedule K, lines 1 through 11
(itemize):
a Tax-exempt interest $

7

Deductions included on Schedule
K, lines 1 through 13d, and 16p not
charged against book income this
tax year (itemize):

a Depreciation $

8
9

Add lines 6 and 7 . . . . .
Income (loss). Subtract line 8
from line 5 . . . . . . .

Analysis of Partners’ Capital Accounts. (Not required if Item H11, page 1, is answered “Yes.”)

Balance at beginning of tax year
Capital contributed:
a Cash . . .
b Property . .
Net income (loss) per books .
Other increases (itemize): $

6
7

8
9
5

.

Reconciliation of Income (Loss) per Books With Income (Loss) per Return. (Not required if Item
H11, page 1, is answered “Yes.”)

1

1
2

.

DRAFT AS OF
July 18, 2018
DO NOT FILE

Schedule M-1

5

.

(b)
End of
tax year

Add lines 1 through 4 .

.

.

Distributions: a Cash
. .
b Property .
Other decreases (itemize): $

.
.

Add lines 6 and 7 . . . . .
Balance at end of tax year.
Subtract line 8 from line 5 . .
Form 8865 (2018)

Page 6

Form 8865 (2018)

Schedule N

Transactions Between Controlled Foreign Partnership and Partners or Other Related Entities

Important: Complete a separate Form 8865 and Schedule N for each controlled foreign partnership. Enter the totals for each type of
transaction that occurred between the foreign partnership and the persons listed in columns (a) through (d).
Transactions
of
foreign partnership

(a) U.S. person
filing this return

Sales of inventory . . . .
Sales of property rights
(patents, trademarks, etc.) .

3

6
7

Compensation received for
technical,
managerial,
engineering, construction, or
like services . . . . . . .
Commissions received . .
Rents, royalties, and license
fees received
. . . . .
Distributions received . . .
Interest received . . . .

8

Other .

.

.

.

9

Add lines 1 through 8 .

.

.

10
11
12
13

.

.

.

.

(d) Any U.S. person with a
10% or more direct interest
in the controlled foreign
partnership (other than the
U.S. person filing this return)

Purchases of inventory . .
Purchases of tangible property
other than inventory
. . .
Purchases of property rights
(patents, trademarks, etc.) .

16
17

Compensation
paid
for
technical,
managerial,
engineering, construction, or
like services . . . . . .
Commissions paid . . . .
Rents, royalties, and license
fees paid . . . . . . .
Distributions paid . . . .
Interest paid . . . . . .

18

Other .

.

.

19

Add lines 10 through 18 .

.

20

Amounts borrowed (enter the
maximum
loan
balance
during the tax year). See
instructions . . . . . .

21

Amounts loaned (enter the
maximum
loan
balance
during the tax year). See
instructions . . . . . .

14
15

(c) Any other foreign
corporation or partnership
controlling or controlled
by the U.S. person filing
this return

DRAFT AS OF
July 18, 2018
DO NOT FILE

1
2

4
5

(b) Any domestic
corporation or partnership
controlling or controlled
by the U.S. person filing
this return

.

.

.

.

.

Form 8865 (2018)