Instructions For Forms 8804, 8805, And 8813 2005 (Page 5 of 8) in pdf

Effective dates under What’s New on

amounts allocable to U.S. partners on line

The look-through rules referred to

page 1.

15f of Schedule K (Form 1065) and in box

above do not apply if the

15 (using code U) of Schedule K-1 (Form

partnership’s tax year began after

CAUTION

Partnership ECTI on which a foreign

1065). For Form 1065-B, enter amounts

December 31, 2004, and before May 19,

partner is exempt from U.S. tax by a

on line 16 of Schedule K and in box 9 of

2005, and the partnership has not made

treaty or other reciprocal agreement is not

Schedule K-1.

the election under the final regulations

allocable to that partner and is exempt

described in Effective dates under What’s

from withholding under section 1446.

Form 8805

New on page 1.

However, this exemption from section

1446 withholding must be reported on

An upper-tier partnership that has had

Line 1b

Form 8805. See instructions for line 8b of

section 1446 tax payments made on its

A partnership must pay the withholding

Form 8805 below.

behalf by a lower-tier partnership will

tax for a foreign partner even if it does not

receive a copy of Form 1042-S or Form

Lines 4b, 4e, and 4i

have a U.S. TIN for that partner. See

8805 from the lower-tier partnership. The

Enter the reduction to the partnership’s

Taxpayer Identifying Number on page 2

upper-tier partnership must in turn file

ECTI allocable to foreign partners (by

for details.

these forms with its Form 8804 and treat

income type) by reason of valid

the amount withheld by the lower-tier

Line 1c

certificates received from foreign partners

partnership as a credit against its own

See Address above.

under Regulations section 1.1446-6T. For

liability to withhold under section 1446.

these purposes, a “valid certificate” refers

This credit is allowed on line 6b of the

Line 3

to any certificate the partnership

Form 8804 filed by the upper-tier

Enter the type of partner (for example,

considers and relies on under the rules of

partnership. The upper-tier partnership

individual, corporation, partnership, trust,

Regulations section 1.1446-6T.

must also provide to its partners the

estate).

information described in Reporting to

Do not complete lines 4b, 4e, and

Line 4

Partners on page 3. These statements

4i if the partnership’s tax year

and forms will enable those partners to

began after December 31, 2004,

See Country Codes on pages 7 and 8.

CAUTION

obtain appropriate credit for tax withheld

and before May 19, 2005, and the

Line 5c

under section 1446.

partnership has not made the elections

See Address above.

under the final and temporary regulations

See Regulations section 1.1446-5 for

described in Effective dates under What’s

additional information.

Line 8b

New on page 1.

Check the box on this line if any of the

Line 6b

partnership’s ECTI is treated as not

Specific Instructions

allocable to the foreign partner identified

Enter on line 6b the amount of section

on line 1a and therefore exempt from

1446 tax withheld by lower-tier

section 1446 withholding because the

partnerships with respect to ECTI

Address

income is exempt from U.S. tax for that

allocable to the upper-tier partnership

When providing a U.S. address on Form

foreign partner by a treaty, reciprocal

(see Tiered Partnerships on page 4). The

8804, 8805, or 8813, include the suite,

exemption, or a provision of the Internal

amount withheld will be shown on line 10

room, or other unit number after the street

Revenue Code.

of the Form 8805 the partnership receives

address. If the Post Office does not

from the lower-tier partnership. If the

Line 9

deliver mail to the street address and the

partnership receives a Form 1042-S from

partnership (or withholding agent) has a

Enter the partnership ECTI allocable to

a lower-tier PTP, the amount withheld will

P.O. box, show the box number instead of

the foreign partner (before considering

be shown in box 7 of the Form 1042-S.

the street address. If the partnership (or

any partner certifications under

(Box 1 of the Form 1042-S will show

withholding agent) receives its mail in

Regulations section 1.1446-6T).

income code 27.)

care of a third party (such as an

The partnership must provide a

Line 6c

accountant or an attorney), enter on the

statement (generally Schedule K-1(Form

street address line “c/o” followed by the

Line 6c applies only to partnerships

1065)) to the foreign partner that lists

third party’s name and street address or

treated as foreign persons and subject to

each income type of ECTI included on

P.O. box.

withholding under section 1445(a) or

line 9. The income types of ECTI that may

1445(e)(1) upon the disposition of a U.S.

be included on line 9 are:

When providing a foreign address on

•

real property interest.

Net ordinary income.

Form 8804, 8805, or 8813, enter the

•

28% rate gains (non-corporate partners

number and street, city, province or state,

Enter on line 6c the amount of tax

only).

and the name of the country. Follow the

withheld under section 1445(a) and

•

Unrecaptured section 1250 gains

foreign country’s practice in placing the

shown on Form 8288-A, Statement of

(non-corporate partners only).

postal code in the address. Do not

Withholding on Dispositions by Foreign

•

Qualified dividend income and net

abbreviate the country name.

Persons of U.S. Real Property Interests,

long-term capital gains (including net

for the tax year in which the partnership

Form 8804

section 1231 gains) (non-corporate

disposed of the U.S. real property

partners only).

interest.

Lines 1c, 1d, 2c and 2d

Line 10

Also enter on line 6c the amount of

See Address above.

section 1445(e)(1) tax withheld on a

To calculate the total tax credit allowed to

distribution by a domestic trust to the

Lines 4a, 4d, 4g, and 4h

a foreign partner under section 1446,

partnership with respect to the disposition

subtract from each type of ECTI allocable

Figure the partnership’s ECTI using the

of a U.S. real property interest by the

to the foreign partner the related amount

definition on page 2. Enter the total ECTI

trust. The amount withheld will be shown

of losses or deductions certified by the

allocable to foreign partners (by income

in box 7 of the Form 1042-S the

partner under Regulations section

type) on lines 4a, 4d, 4g, and 4h.

partnership receives from the trust. (Box 1

1.1446-6T that the partnership considered

of the Form 1042-S will show income

Do not complete lines 4d, 4g, and

in determining that partner’s portion of the

code 25 or 26.)

4h if the partnership’s tax year

section 1446 withholding tax due. Then

began after December 31, 2004,

For both of the situations described

multiply the net amount by the applicable

CAUTION

and before May 19, 2005, and the

above, do not enter more than the

percentage (see page 3 for definition).

partnership has not made the election

amount allocable to foreign partners (as

Finally, total the resulting amounts. Any

under the final regulations described in

defined in section 1446(e)). Enter

certificates received under Regulations

-5-

Instructions for Forms 8804, 8805, and 8813

Instructions For Forms 8804, 8805, And 8813 2005 Page 5

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