Instructions For Form 926 printable pdf download

Instructions for Form 926

Department of the Treasury

Internal Revenue Service

(Rev. January 2015)

(Use with the December 2013 revision of Form 926.)

Return by a U.S. Transferor of Property to a Foreign Corporation

the Form 926, (2) in the Supplemental

Section references are to the Internal Revenue

Transfers of cash. A U.S. person

Code unless otherwise noted.

Information Required To Be Reported

that transfers cash to a foreign

section in Part III of the form, note that

corporation must report the transfer on

What's New

the information required by Form 926 is

Form 926 if (a) immediately after the

contained in the statement required by

transfer the person holds directly or

The gain recognition agreement (GRA)

Regulations section 1.367(e)-2(b)(2)(i)

indirectly at least 10% of the total voting

regulations under sections 367(a) and

(C)(2) or (iii)(D), as the case may be,

power or the total value of the foreign

6038B have been finalized and are

and (3) with respect to distributed

corporation or (b) the amount of cash

effective November 19, 2014. See

property that is not described in the

transferred by the person to the foreign

Transfers of stock or securities for which

statement required by Regulations

corporation during the 12-month period

a gain recognition agreement (GRA) is

section 1.367(e)-2(b)(2)(i)(C)(2) or (iii)

ending on the date of the transfer

filed and Distributions by domestic

(D), as the case may be, complete

exceeds $100,000. See Regulations

liquidating corporations under Special

columns (a) through (e) in Part III of the

section 1.6038B-1(b)(3).

Rules, later.

form. In addition, the domestic

Transfers of stock or securities for

liquidating corporation must comply in

which a gain recognition agreement

General Instructions

all material respects with the terms of a

(GRA) is filed. A U.S. transferor must

liquidation document (determined

file a Form 926 with respect to a transfer

Future Developments

without regard to Regulations section

of stock or securities in all cases in

1.367(e)-2(f)) in order to satisfy its

For the latest information about

which a GRA is filed under Regulations

section 6038B reporting obligations.

developments related to Form 926 and

section 1.367(a)-8. Provided that the

See Regulations section 1.6038B-1 for

its instructions, such as legislation

initial GRA is timely filed (determined

further information.

enacted after they were published, go to

without regard to Regulations section

1.367(a)-8(p)), then, with respect to the

Exceptions to Filing

transfer of the stock or securities, the

Purpose of Form

U.S. transferor should (1) complete Part

1. For exchanges described in

I and Part II of the Form 926, (2)

Use Form 926 to report certain transfers

section 354 or 356, a U.S. person does

complete columns (a) through (e) in Part

of tangible or intangible property to a

not have to file Form 926 if:

III of the form, and (3) in the

foreign corporation required by section

a. The U.S. person exchanges

Supplemental Information Required To

6038B.

stock of a foreign corporation in a

Be Reported section in Part III of the

recapitalization described in section

Who Must File

form, note that a GRA is being filed

368(a)(1)(E), or

pursuant to Regulations section

Generally, a U.S. citizen or resident, a

b. The U.S. person exchanges

1.367(a)-8. In addition, the U.S.

domestic corporation, or a domestic

stock of a domestic or foreign

transferor must comply in all material

estate or trust must complete and file

corporation for stock of a foreign

respects with the terms of a GRA

Form 926 to report certain transfers of

corporation under an asset

(determined without regard to

property to a foreign corporation that are

reorganization described in section

Regulations section 1.367(a)-8(p)) in

described in section 6038B(a)(1)(A),

368(a)(1) that is not treated as an

order to satisfy its section 6038B

367(d), or 367(e). See section 6038B,

indirect stock transfer under

reporting obligations. See Regulations

and Regulations sections 1.6038B-1

Regulations section 1.367(a)-3(d).

section 1.6038B-1 for further

and 1.6038B-1T for more information.

information.

2. Generally, a domestic corporation

Distributions by domestic

Special Rules

that distributes stock or securities of a

liquidating corporations. A domestic

domestic corporation under section 355

Transfers by a partnership. If the

liquidating corporation must file a Form

is not required to file Form 926.

transferor is a partnership (domestic or

926 with respect to a distribution of

However, this exception does not apply

foreign), the domestic partners of the

property in complete liquidation under

if the distribution is of stock or securities

partnership, not the partnership itself,

section 332 to a foreign distributee

of a foreign controlled corporation to a

are required to comply with section

corporation that meets the stock

distributee shareholder who is not a

6038B and file Form 926. Each

ownership requirements of section

U.S. citizen or resident or a domestic

domestic partner is treated as a

332(b). If the distribution qualifies for the

corporation.

transferor of its proportionate share of

exception in Regulations section

3. A U.S. person that transfers stock

the property. See the instructions for

1.367(e)-2(b)(2)(i) or (iii) then, provided

or securities under section 367(a) does

line 2 for additional information.

that all initial liquidation documents are

not have to file Form 926 if either a or b

Transfers by spouses. Spouses

timely filed (determined without regard

below applies.

may file Form 926 jointly, but only if they

to Regulations section 1.367(e)-2(f)),

a. The U.S. transferor owned less

file a joint income tax return.

the domestic liquidating corporation

than 5% of both the total voting power

should (1) complete Part I and Part II of

Jan 29, 2015

Cat. No. 27037X

Instructions For Form 926

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