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understatement. No penalty will be

367(a)(5) and any regulations under that

Supplemental Information section or on

imposed with respect to any portion of an

section have been satisfied.

attached sheets). With respect to section

•

underpayment if the taxpayer can

An explanation of any basis or other

367(d) transfers, see Temporary

demonstrate that the failure to comply

adjustments made pursuant to section

Regulations section 1.6038B-1T(d). With

was due to reasonable cause with respect

367(a)(5) and any regulations thereunder.

respect to section 367(e) transfers, see

to such portion of the underpayment and

Regulations section 1.6038B-1(e).

Line 2

the taxpayer acted in good faith with

Column (c). Fair market value. Enter

If a partnership (whether foreign or

respect to such portion of the

the fair market value of the property

domestic) transfers property to a foreign

underpayment. See sections 6662(j) and

transferred (measured as of the date of

corporation in an exchange described in

6664(c) for additional information.

transfer).

section 367(a)(1), then a U.S. person that

Column (d). Cost or other basis. Enter

is a partner in the partnership shall be

your adjusted basis in the property

treated as having transferred a

Specific Instructions

transferred on the date of the transfer.

proportionate share of the property in an

See sections 1011 through 1016 for more

exchange described in section 367(a)(1).

Important: All information reported on

information for the determination of

A U.S. person’s proportionate share of

Form 926 must be in English. All amounts

adjusted basis.

partnership property shall be determined

must be stated in U.S. dollars. If the

under the rules and principles of sections

information required in a given section

Supplemental information required

701 through 761 and the regulations

exceeds the space provided within that

thereunder. See Temporary Regulations

to be reported

section, do not write “see attached” in the

section 1.367(a)-1T(c)(3).

section and then attach all of the

Enter any information from Part III that is

Line 2d. For definition of “regularly

information on additional sheets. Instead,

required to be reported in greater detail.

traded on an established securities

complete all entry spaces in the section

Identify the applicable column number

market,” see Temporary Regulations

and attach the remaining information on

next to the information entered in this

section 1.367(a)-1T(c)(3)(ii)(D). If the

additional sheets. The additional sheets

section. In addition, if you contributed

answer to line 2d is “Yes,” the rules of

must conform with the IRS version of that

property to a foreign corporation as a part

Regulations section

section.

of a wider transaction, briefly describe the

1.367(a)-1T(c)(3)(ii)(C) apply.

entire transaction.

Part I—U.S. Transferor

Part II—Transferee

Part IV— Additional

Information

Foreign Corporation

Information Regarding

Identifying Number

Information

Transfer of Property

The identifying number of an individual is

Line 5. Address. Enter the information

Line 10. List the type of nonrecognition

his or her social security number (SSN).

in the following order: city, province or

transaction that gave rise to the reporting

The identifying number of all others is

state, and country. Follow the country’s

obligation (e.g., section 332, 351, 354,

their employer identification number

practice for entering the postal code, if

356, or 361).

(EIN).

any. Do not abbreviate the country name;

Line 11a. If gain recognition was

however, if you file electronically, please

required with respect to any transfer

Line 1a

follow the convention specified.

reported in Part III under section

If you answered “Yes” to question 1a and

Line 6. Enter the two-letter country code

904(f)(3), attach a statement identifying

the asset is a tangible asset, section

(from the list at

the transfer and the amount of gain

367(a)(5) may require basis adjustments.

countrycodes) of the transferee foreign

recognized.

If you answered “No” to question 1a and

corporation’s country of incorporation or

Line 11b. If gain recognition was

the asset is a tangible asset, the transfer

organization.

required with respect to any transfer

is taxable under sections 367(a)(1) and

Line 7. List the entity classification (e.g.,

reported in Part III under section

(a)(5). If the asset transferred is an

partnership, corporation, etc.) of the

904(f)(5)(F), attach a statement

intangible asset, see section 367(d) and

transferee foreign corporation under the

identifying the transfer and the amount of

its regulations.

laws of the country of incorporation or

gain recognized.

organization.

Line 1b

Line 11c. If recapture was required with

Line 8. See section 957(a) to determine

respect to any transfer reported in Part III

If the transferor went out of existence

whether the corporation is a controlled

under section 1503(d) (dual consolidated

pursuant to the transfer (e.g., as in a

foreign corporation immediately after the

loss), attach a statement identifying the

reorganization described in section

transfer.

transfer and the amount of recapture. See

368(a)(1)(C)), list the controlling

section 1503(d) and the regulations

Part III—Information

shareholders and their identifying

thereunder.

numbers.

Regarding Transfer of

Line 11d. If exchange gain recognition

Line 1c

was required with respect to any transfer

Property

reported in Part III under section 987,

If the transferor was a member of an

Column (a). Date of Transfer. Enter the

attach a statement identifying the transfer

affiliated group filing a consolidated tax

and the amount of exchange gain

first date on which title to, possession of,

return (see sections 1501 through 1504),

recognized. See Regulations section

or rights to the use of the property passed

but was not the parent corporation, list the

1.987-5.

for U.S. income tax purposes. See

name and EIN of the parent corporation

Temporary Regulations section

and file Form 926 with the parent

Line 12. If this transfer resulted from a

1.6038B-1T(b)(4) for additional

corporation’s consolidated return.

change in the classification of the

information.

transferee to that of a foreign corporation

Line 1d

Column (b). Description of property.

(a deemed transfer resulting from a

If the answer to line 1d is ‘‘Yes,’’ and if the

Provide a description of the property

classification change on Form 8832,

asset is transferred in an exchange

transferred. With respect to section

Entity Classification Election, or a

described in section 361(a) or (b), attach

6038B(a)(1)(A) transfers, see Temporary

termination of a section 1504(d) election),

the following:

Regulations section 1.6038B-1T(c)(4) for

check the “Yes” box. If the transfer was

•

A statement that the conditions set

specific information that must be reported

an actual transfer of property to a foreign

forth in the second sentence of section

in column (b) (or, if necessary, under the

corporation, check the “No” box.

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Instructions For Form 926 - Return By A U.s. Transferor Of Property To A Foreign Corporation - Internal Revenue Service Page 2

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