8992 Instructions for Form 8992

Instructions for Form 8992

Department of the Treasury
Internal Revenue Service

(Rev. January 2020)

U.S. Shareholder Calculation of Global Intangible Low-Taxed Income (GILTI)
Section references are to the Internal Revenue
Code unless otherwise noted.

General Instructions

Future Developments

Purpose of Form

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 these instructions. Please
review any additional information on the
website mentioned above prior to
completing Form 8992.

What’s New
Final regulations. On June 21, 2019,
final regulations were published under
section 951A that provide guidance to
determine the amount of global intangible
low-taxed income (GILTI) included in the
gross income of certain U.S. shareholders
of foreign corporations, including U.S.
shareholders that are members of a
consolidated group.
Changes to Form 8992. Part II has been
revised to reflect the U.S. shareholder's
calculation of specified interest expense
using the netting approach, which is
generally based on the sum of the U.S.
shareholder's pro rata share of the tested
interest expense of each controlled foreign
corporation (CFC) over the sum of the
U.S. shareholder's pro rata share of tested
interest income of each CFC. See
Regulations section 1.951A-1(c)(3)(iii).
A new column (h) has been added to
Form 8992, Schedule A and
Schedule A—Continuation Sheet(s), to
report the U.S. shareholder's pro rata
share of tested loss qualified business
asset investment (QBAI) amount, with
respect to any tested loss CFC owned by
the U.S. shareholder, to reflect the rule in
the final regulations that reduces a tested
loss CFC's tested interest expense by its
tested loss QBAI amount.

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

Feb 06, 2020

Public Law 115-97 (Tax Cuts and Jobs Act
of 2017) enacted section 951A, which
requires U.S. shareholders of CFCs to
include GILTI in gross income. Form 8992
is used by U.S. shareholders to determine
their GILTI inclusion.

Who Must File

A U.S. shareholder (including a partner of
a domestic partnership) that owns, within
the meaning of section 958(a), stock in
one or more CFCs. See Regulations
sections 1.951A-1(e) and 1.6038-5(a).

CFC. A CFC is generally a foreign
corporation of which more than 50% of the
total combined voting power or value is
owned directly, indirectly, or constructively
(within the meaning of section 958) by
U.S. shareholders.
U.S. shareholder. A U.S. shareholder of
a foreign corporation 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 the
foreign corporation or 10% or more of the
total value of shares of all classes of stock
of the foreign corporation.
Members of a U.S. consolidated group.
Each member of a consolidated group that
owns (within the meaning of section
958(a)) an interest in a CFC that
generates tested income must complete a
Form 8992 and include in Schedule A its
tested income CFCs as well as any CFC
from which it is allocated a portion of the
consolidated tested loss, consolidated
QBAI, or consolidated specified interest
expense.

When and Where To File

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.
Note. A U.S. shareholder that is a
member of a consolidated group must file
its own separate Form 8992 and include in
the Schedule A its tested income CFCs,
as well as any CFC from which it is
allocated a portion of the consolidated
tested loss.

Cat. No. 71351C

Computer-Generated Form
8992

Generally, all computer-generated forms
must receive prior approval from the IRS
and are subject to an annual review.
However, see the 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,
1111 Constitution Ave. NW, Room 6554,
Washington, DC 20224.
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.

Treaty-Based Return
Positions

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.
See Form 8833 for exceptions.

Specific Instructions

enter zero). To figure the amount to enter
on line 5, subtract line 4 from line 1.

Name Change

This amount will be used to calculate
column (l) 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.

If the name of the person filing the return
changed within the past 3 years, show the
prior name 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 CFC
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
To figure the amounts to enter on lines 1
and 2, complete the Form 8992,
Schedule A and
Schedule A—Continuation Sheet(s),
columns (a) through (f). Refer to the
specific instructions for Schedule A later.
Note. Any reference to an amount
reported on Schedule A includes the
amounts reported on Form 8992,
Schedule A and any
Schedule A—Continuation Sheet(s). Enter
the total amounts from the first completed
page of Schedule A, line 1, columns (e)
and (f), on Form 8992, Part I, lines 1 and
2, respectively. Combine lines 1 and 2 to
figure the amount to enter on line 3.
If the amount on line 3 is positive,
complete Schedule A, columns (g)
through (l). If the amount on this line is
zero or negative, stop here (do not
complete Schedule A, columns (g)
through (l)) and include Form 8992 and
Schedule A with your return.

Part II
Enter the amount from Part I, line 3, on
line 1. Enter the amount from Schedule A,
line 1, column (g), multiplied by 10%
(0.10) on line 2. Enter the amount from
Schedule A, line 1, column (j), on line 3a.
Enter the amount from Schedule A, line 1,
column (i), on line 3b. To figure the
amount to enter on line 3c, subtract line 3b
from line 3a (if zero or less, enter zero). To
figure the amount to enter on line 4,
subtract line 3c from line 2 (if zero or less,

For a noncorporate shareholder, enter the
result on Schedule 1 (Form 1040 or
1040-SR), Part I, line 8 (Other income), or
on the comparable line of other
noncorporate tax returns.

Schedule A

A U.S. shareholder files Form 8992,
Schedule A, to report its pro rata share of
amounts for each CFC (the tax year of
which ends with or within the
shareholder’s tax year) from each CFC’s
Schedule I-1 (Form 5471), 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. If a U.S. shareholder does
not file a Schedule I-1 (Form 5471) for
every CFC that is part of its GILTI
computation, for instance due to an
exception for multiple filers of the same
information, the U.S. shareholder will still
need to provide amounts with respect to
each CFC as if the U.S. shareholder filed
Schedule I-1 (Form 5471) 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 (a). Enter the name of each
CFC. If the name of 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.
Column (b). Please refer to the
instructions for the Form 5471,
line 1b(2)—Reference ID Number.
Column (c). Enter the U.S. dollar amount
of tested income, if any, from line 6 of
Schedule I-1 (Form 5471) for each CFC
listed in column (a).
Column (d). Enter the U.S. dollar amount
of tested loss, if any, from line 6 of
Schedule I-1 (Form 5471) for each CFC
listed in column (a).
Column (e). Enter your pro rata share of
the tested income listed in column (c).
Column (f). Enter your pro rata share of
the tested loss listed in column (d).

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Note. If you are a member of a
consolidated group, enter your allocable
share, rather than pro rata share, of the
amounts in columns (f), (g), (i), and (j).
See Regulations section 1.1502-51(e)(3).
Column (g). Enter your pro rata share of
the U.S. dollar amount of qualified
business asset investment (QBAI) from
line 8 of Schedule I-1 (Form 5471) for
each tested income CFC.
Note. If you have a tested loss for a
particular CFC, no entry should be made
for that CFC in this column. See
Regulations section 1.951A-3(b).
Column (h). Enter your pro rata share of
the tested loss QBAI amount of any tested
loss CFC. The tested loss QBAI amount of
a tested loss CFC is an amount equal to
10% of the QBAI from Schedule I-1 (Form
5471), line 9c, that the tested loss CFC
would have had if it were instead a tested
income CFC. See Regulations sections
1.951A-4(b)(1)(i), 1.951A-4(b)(1)(iv), and
example 5 of 1.951A-4(c)(5).
Column (i). Enter your pro rata share of
the amount of tested interest income from
Schedule I-1 (Form 5471), line 10c, for
each CFC.
Column (j). Enter your pro rata share of
tested interest expense income from
Schedule l-1 (Form 5471), line 9d.
Column (k). Before completing column
(k), enter the totals (including amounts
from any Schedule A—Continuation
Sheet(s)) of columns (c) through (j) 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 (l). Multiply Form 8992, Part II,
line 5, by column (k) and enter the amount
here in whole dollars only. This
information is used in completing
Schedule J (Form 5471), Accumulated
Earnings and Profits (E&P) of Controlled
Foreign Corporation, and in Schedule P
(Form 5471), Previously Taxed Earnings
and Profits of U.S. Shareholder of Certain
Foreign Corporations, for each CFC.

Line 1

On line 1 of the first completed page of
Schedule A, enter the totals for columns
(c) through (f) for Schedule A and any
Schedule A—Continuation Sheets. If the
amount on your Form 8992, Part I, line 3,
is positive, you are required to complete
Schedule A, columns (g) through (l), and
should also enter on line 1 of the first
completed page of Schedule A the totals
for columns (g) through (l) for Schedule A
and any Schedule A—Continuation
Sheets.

Paperwork Reduction Act Notice. We
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The time needed to complete and file
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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.