Fillable Form 8858 (2021)

What is Form 8858?

Form 8858, Information Return of US Persons With Respect to Foreign Disregarded Entities (FDEs) and Foreign Branches (FBs), is a form issued by the Internal Revenue Service for US persons who own an FDE or operate an FB.

IRS Form 8848 must be filed by a US person who:

• Is the tax owner of an FDE;
• Is the owner of a specified interest in an FDE indirectly or constructively through a Controlled Foreign Corporation (CFC) or a Controlled Foreign Partnership (CFP); or
• Operates an FB, whether directly or indirectly through a tier of FDEs or partnerships.

You may download a PDF copy of Form 8858 on the IRS website. But you may electronically fill it out on PDFRun for your convenience.

How to fill out Form 8858?

Make sure to read the instructions carefully and provide the necessary information on each required field.

Name of person filing this return

Enter the name of the person filing this return.

Filer’s identifying number

Enter your identifying number.

Number, street, and room or suite no.

Enter your address, starting with the number, street, and room or suite number.

City or town, state, and ZIP code

Enter the city or town, state, and ZIP code you are currently residing in.

Filer’s tax year beginning and ending

Enter the month and year of the FDE’s or FB’s annual accounting period.

Check the appropriate box to determine what taxpayer you are filing the return for. You may select:

• FDE of a US person
• FB of a US person
• FDE of a controlled foreign corporation (CFC)
• FB of a CFC
• FDE of a controlled foreign partnership
• FB of a controlled foreign partnership

Check the appropriate box to determine the type of Form 8858 you are submitting. You may select:

• Initial Form 8858
• Final Form 8858

Item 1a - Name and address of FDE or FB

Enter the complete name and address of the FDE or FB.

Item 1b(1) - US identifying number, if any

Enter the FDE’s or FB’s US identifying number, if any.

Item 1b(2) - Reference ID number

Enter the FDE’s or FB’s reference ID number.

Item 1c - For FDE, country(ies) under whose laws organized and entity type under local tax law

Enter the FDE’s country or countries whose laws are organized, and its entity type under the local tax law.

Item 1d - Date(s) of organization

Enter the date(s) of the organization of the FDE.

Item 1e - Effective date as FDE

Enter the FDE’s effectivity date.

Item 1f - If benefits under a US tax treaty were claimed with respect to income of the FDE or FB, enter the treaty and article number

Enter the treaty and article of the FDE or FB if it has benefited under a US tax treaty that was claimed with respect to income.

Item 1g - Country in which principal business activity is conducted

Enter the country in which the FDE or FB’s principal business activity is conducted.

Item 1h - Principal business activity

Enter the FDE’s or FB’s business activity.

Item 1i - Functional currency

Enter the FDE’s or FB’s functional currency.

Item 2 - Provide the following information for the FDE’s or FB’s accounting period stated above.

Item 2a - Name, address, and identifying number of branch office or agent (if any) in the United States

Enter the name, address, and identifying number of the branch office or agent of the FDE or FB in the United States.

Item 2b - Name and address (including corporate department, if applicable) of person(s) with custody of the books and records of the FDE or FB, and the location of such books and records, if different

Enter the name and address of the persons with custody of the books of the FDE or FB and the locations of said books if different from the address of the person in custody. Include the corporate department if applicable.

Item 3 - For the tax owner of the FDE or FB (if different from the filer), provide the following.

If the tax owner of the FDE or FB is different from the filer, fill out this part.

Item 3a - Name and address

Enter the name and address of the tax owner.

Item 3b - Annual accounting period covered by the return

Enter the annual accounting period covered by the return.

Item 3c(1) - US identifying number, if any

Enter the US identifying number of the tax owner, if any.

Item 3c(2) - Reference ID number

Enter the reference ID number of the tax owner.

Item 3d - Country under whose laws organized

Enter the country of the tax owner under whose laws are organized.

Item 3e - Functional currency

Enter the functional currency of the tax owner.

Item 4 - For the direct owner of the FDE or FB (if different from the tax owner), provide the following.

If there is a direct owner of the FBE or FB different from the tax owner, fill out this part.

Item 4a - Name and address

Enter the name and address of the direct owner.

Item 4b - Country under whose laws organized

Enter the country of the direct owner under whose laws are organized.

Item 4c - US identifying number, if any

Enter the US identifying number of the direct owner, if any.

Item 4d - Functional currency

Enter the functional currency of the direct owner of the FDE or FB.

Item 5

Attach an organizational chart that identifies the name, placement, percentage of ownership, tax classification, and country of organization of all entities in the chain of ownership between the tax owner and the FDE or FB, and the chain of ownership between the FDE or FB and each entity in which the FDE or FB has a 10% or more direct or indirect interest.

Schedule C - Income Statement

Check the box if you are using the average exchange rate as determined under Section 989(b).

Enter all of your income in its functional currency on the left side of the column. Convert and enter each amount in US dollars on the right side of the column. The income you need to report are the following:

• Gross receipts or sales (net of returns and allowances)
• Cost of goods sold
• Gross profit (subtract line two from line one)
• Dividends
• Interest
• Gross rents, royalties, and license fees
• Gross income from performance of services
• Foreign currency gain (loss)
• Other income
• Total income (add lines three through nine)
• Total deductions (exclude income tax expense)
• Income tax expense
• Other adjustments
• Net income (loss) per books

Schedule C-1 - Section 987 Gain or Loss Information

There are two columns in this portion, namely:

• (a) Amount stated in functional currency of FDE or FB
• (b) Amount stated in functional currency of recipient

Enter the amounts of remittances on the respective fields below. Do not fill out the fields in gray.

1 - Remittances from the FDE or FB

Enter the remittances from the FDE or FB on columns (a) and (b).

2 - Section 987 gain (loss) recognized by recipient

Enter the Section 987 gain (loss) recognized by the recipient on column (b).

3 - Section 987 gain (loss) deferred under Regulations section 1.987-12

Enter the Section 987 gain (loss) deferred under Regulations section 1.987-12 on column (b). Attach a statement relating to this field.

4 - Were all remittances from the FDE or FB treated as made to the direct owner?

Mark the appropriate box to determine if all remittances from the FDE or FB are treated as made to the direct owner. You may select:

• Yes
• No

Mark “Yes” if all remittances from the FDE or FB are treated as made to the direct owner. Otherwise, mark “No.”

5 - Did the tax owner change its method of accounting for Section 987 gain or loss with respect to remittances from the FDE or FB during the tax year?

Mark the appropriate box to determine if the tax owner changed its method of accounting for Section 987 gain or loss with respect to the remittances from the FDE or FB during the tax year. You may select:

• Yes
• No

If you marked “Yes,” attach a statement describing the method used prior to the change and new method of accounting.

Schedule F - Balance Sheet

Enter the following amounts you need to report in US dollars. Make sure to enter the amounts at the beginning of the accounting period on column (a) on the left side and at the end of the annual accounting period in column (b) on the right side.

Enter the amounts of the following:

• Assets
  • Cash and other current assets
  • Other assets
  • Total assets
• Liabilities and Owner’s Equity
  • Liabilities
  • Owner’s equity
  • Total liabilities and owner’s equity

Schedule G - Other Information

Mark the appropriate boxes to determine other information about the FDE or FB. You may select:

• Yes
• No

Item 1

Mark “Yes” if the FDE or FB owned an interest in any trust during the tax year. Otherwise, mark “No.”

Item 2

Mark “Yes” if the FDE or FB owned at least 10% interest, directly or indirectly, in any foreign partnership. Otherwise, mark “No.”

Item 3

Mark “Yes” if the tax owner claimed a loss with respect to stock or debt of the FDE as a result of the election. Otherwise, mark “No.” Answer this item only if the FDE made its election to be treated as disregarded from its owner during the tax year.

Item 4

Mark “Yes” if the DE or FB paid or accrued any foreign tax that was disqualified for credit under section 901(m) during the tax year. Otherwise, mark “No.”

Item 5

Mark “Yes” if the FDE or FB paid or accrued foreign taxes to which section 909 applies, or treat foreign taxes that were previously suspended under section 909 as no longer suspended. Otherwise, mark “No.”

Item 6

Mark “Yes” if the FDE or FB is a qualified business unit as defined in section 989(a). Otherwise, mark “No.”

Do not answer items 7 and 8 if you are a person who owns an FB or FDE directly or through tiers of FBs and FDEs.

Item 7a

Mark “Yes” if the FDE or FB received or accrued the receipt of any amounts defined as a base erosion payment under section 59A(d) or have a base erosion tax benefit from a foreign person, which is related to a taxpayer.

If you marked “Yes,” complete Items 7b and 7c. Otherwise, mark “No” and proceed to Item 8.

Item 7b

Enter the total amount of the base erosion payments.

Item 7c

Enter the total amount of the base erosion tax benefit.

Item 8a

Mark “Yes” if the FDE or FB paid or accrue the payment of any amount defined as base erosion payment or have a base erosion tax benefit to a foreign person, which is a related party of the taxpayer.

If you marked “Yes,” proceed to Items 8b and 8c. Otherwise, mark “No” and proceed to Item 9.

Item 8b

Enter the total amount of the base erosion payments.

Item 8c

Enter the total amount of the base erosion tax benefit.

Item 9

Mark “Yes” if there were any intracompany transactions between the FDE or FB and the CFC or any other branch of the CFC during the tax year, in which the FDE or FB acted as manufacturing, selling, or purchasing branch. Otherwise, mark “No.”

Answer this item only if the tax owner of the FDE or FB is a CFC. You may only answer the remaining questions in Schedule G if the tax owner of the FB or the interest in the FDE is a US Corporation.

Answer items 10a to 11c only if the tax owner of the FB or the interest in the FDE is treated as a US corporation.

Item 10a

Mark “Yes” if the FB or the interest in the FDE is a separate unit and is not part of a combined separate unit, and it has a dual consolidated loss.

If you marked “Yes,” proceed to Item 10b. Otherwise, mark “No” and proceed to Item 11a.

Item 10b

Enter the amount of the dual consolidated loss.

Item 11a

Mark “Yes’ if the FB or the interest in the FDE is a separate unit and part of a combined separate unit, and it has a dual consolidated loss.

If you marked “Yes,” proceed to Item 11b and 11c. Otherwise, mark “No.”

Item 11b

Enter the amount of the dual consolidated loss for the combined separate unit.

Item 11c

Enter the net income (loss) attributed to the individual FB or the individual interest in the FDE.

Item 12a

Mark “Yes” if there was any portion of the dual consolidated loss on Item 10b or 11b taken into account in computing the US taxable income for the year.

If you marked “Yes,” proceed to Item 12b. Otherwise, mark “No” and proceed to Item 13.

Item 12b

Mark “Yes” if this was permitted domestic use of the dual consolidated loss.

If you marked “Yes,” proceed to Item 12c. Otherwise, mark “No” and proceed to 12d.

Item 12c

Mark “Yes” if the documentation required for the permitted domestic use was attached to the return.

Proceed to Item 13a after answering this item.

Item 12d

Mark “Yes” if the dual consolidated loss was used to compute consolidated taxable income. If you checked “Yes,” proceed to 12e. Otherwise, mark “No.”

Item 12e

Enter the separate unit’s contribution to the cumulative consolidated taxable income or the “cumulative register” as of the beginning of the tax year.

Item 13a

Mark “Yes” if there was any triggering event that occurred under Regulations section 1.1503(d)-6(e) requiring recapture of any dual consolidated losses attributable to the FB or interest in the FDE, individually or as part of a combined separate unit, in any prior tax years.

If you marked “Yes,” proceed to Item 13b. Otherwise, mark “No.”

Item 13b

Enter the total amount of the recapture.

Schedule H - Current Earnings and Profits or Taxable Income

Enter the current earnings and profits or taxable income. For items one to six, enter the amounts in functional currency. Enter the amounts of the following:

• 1- Current year net income (loss) per foreign books of account
• 2 - Total net additions
• 3 - Total net subtractions
• 4 - Current earnings and profits (or taxable income)
• 5 - DASTM gain (loss) (if applicable)
• 6 - Combine lines 4 and 5
• 7 - Current earnings and profits (or taxable income) in US dollars
• 8 - Enter exchange rate used for line 7

To compute for the current earnings and profits under Line 4, add Line 1 and Line 2, and minus Line 3.

Schedule I - Transferred Loss Amount

Schedule I must be completed if the FDE or Fb is owned directly by a domestic corporation or indirectly by a domestic corporation through a tiered structure of FDEs or FBs.

Item 1

Mark the appropriate box to determine if there were any assets of an FB (including an FB that is an FDE) transferred to a foreign corporation. You may select:

• Yes
• No

If you marked “Yes,” proceed to Item 2. Otherwise, you may stop here.

Item 2

Mark the appropriate box to determine if the transferor a domestic corporation transferred substantially all of the assets of an FB (including an FB that is an FDE) to a specified 10%-owned foreign corporation. You may select:

• Yes
• No

If you marked “Yes,” proceed to Item 3. Otherwise, you may stop here.

Item 3

Mark the appropriate box to determine if immediately after the transfer, the domestic corporation was a U.S. shareholder with respect to the transferee foreign corporation. You may select:

• Yes
• No

If you marked “Yes,” proceed to Item 4. Otherwise, you may stop here.

Item 4

Enter the transferred loss amount included in the gross income as required under Section 91.

Schedule J - Income Taxes Paid or Accrued

Enter the income and other profits paid or accrued to the United States and to each foreign country or U.S. possession for the foreign entity’s foreign tax year(s) that end with or within its U.S. tax year.

Column (a) Country of Possession

Enter the two-letter country code of all foreign countries and U.S. possessions within which income is sourced or which taxes were paid or accrued. The list of country codes may be found

the IRS website.

Foreign Income Taxes

Column (b) Foreign Tax Year

Enter the foreign tax year in YYYY-MM-DD of the foreign entity to which the tax relates.

Column (c) Foreign Currency

Enter the income taxes in its foreign currency.

Column (d) Conversion Rate

Enter the average exchange rate.

Column (e) US Dollars

Enter the foreign income taxes entered in Columns (c) and (d) in US Dollars.

Foreign Tax credit Separate Categories

Column (f) Foreign Branch

Enter the amount of income tax in a foreign branch.

Column (g) Passive

Enter the passive income tax amount.

Column (h) General

Enter the general income tax amount.

Column (i) Other

Enter other income tax amounts.

Totals

Enter the total amounts of Columns (e), (f), (g), (h), and (i).

How to file Form 8858?

If you are the owner of the FDE or you are operating an FB, attach tax form 8858 to your income tax return or information return. Otherwise, attach the 8858 Form to any Form 5471, Information Return of U.S. Persons With Respect To Certain Foreign Corporations, or Form 8865, Return of U.S. Persons With Respect to Certain Foreign Partnerships, you are filing on behalf of the CFC or CFP that is the tax owner of FDE or the person operating the FB.