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U.S. Tax Forms 8804 & 8805 Foreign Partner's withholding Information Statement

Who Must Use This Form?

Form 8805 is to be filed by a U.S. partnership (or a foreign partnership with effectively connected income to a U.S. trade or business) to report payments of U.S. taxes for a foreign partner on the partners' share of the effectively connected income to a U.S. trade or business. The tax is paid by the partnership even if no distributions are made.

Form 8804 is an annual summary statement of the various Forms 8805 that are sent to the foreign partners of a U.S. partnership or the foreign partners of a foreign partnership with effectively connected income to a U.S. trade or business. A Form 8813 payment voucher should accompany the payment of any taxes required by Form 8804 and 8805.

What Information Is Required?

The form is similar to a W-2 or 1099 and requires identifying information for the payor (partnership) and the payee (partner), the amount of tax paid on the U.S. source earnings of each foreign partner. Form 8804 is similar to a Form 1096 or W-3 in that it summarizes the amounts withheld from foreign partners

When Is it Due?

Copies of the forms should be sent to the foreign partners as soon as possible after the end of the tax year, but no later than the 15th of the fourth month (April 15) after the close of the partnership tax year.

Where Should It Be Filed?

File these forms with the IRS Center, Philadelphia, PA 19255.

How Long Does It Take To Prepare?

The IRS estimates that the average time to prepare each Form 8805 is about 15 minutes and that the Form 8804 can be prepared in about 30 minutes. However, they also assume it only takes about an hour to read the instructions and related tax code sections and IRS regulations. These time estimates may be accurate if the taxpayer is preparing dozens of these forms, but it's likely to take longer when only one or a few copies of these forms are required.

Why Comply ? (Penalties)

Various penalties apply for a late filing or late payment of the tax. Generally, a penalty of $50 is imposed for a failure to furnish Form 8805 to the foreign partners when due.

Comments

Taxpayers with any foreign partners need to study the instructions to these forms and the applicable tax law and regulations to be sure that the tax is only paid with respect to a foreign partner -- as defined in IRC 1446 and in the instructions to this form.

Copies of IRS Tax Forms and Instructions are available from their web site at
https://www.irs.gov/forms-instructions

Download Form 8804 Download Form 8805