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Department of the Treasury

Instructions for Form 8858

Internal Revenue Service

(Rev. January 2006)

(Use with the December 2004 revision of Form 8858)

Information Return of U.S. Persons

With Respect To Foreign Disregarded Entities

Section references are to the Internal Revenue Code unless otherwise noted.

separate Schedule M with respect to the

1. A court within the United States is

General Instructions

FDE.

able to exercise primary supervision over

the administration of the trust and

Note. Complete a separate Form 8858

Purpose of Form

2. One or more U.S. persons have the

and all applicable schedules for each

authority to control all substantial

Form 8858 is used by certain U.S.

FDE.

decisions of the trust.

persons that own a foreign disregarded

entity (FDE) directly or, in certain

U.S. Person Filing Form 8858

circumstances, indirectly or

Exceptions To Filing Form 8858

The U.S. person filing Form 8858 is any

constructively. See U.S. Person Filing

U.S. person that:

Multiple filers of the same information.

•

Form 8858 below. The form and

Is the tax owner of an FDE.

In the case of category 4 or 5 filers of

schedules are used to satisfy the

•

Owns a specified interest in an FDE

Form 5471 or category 1 filers of Form

reporting requirements of sections 6011,

indirectly or constructively through a CFC

8865 who are also required to file Form

6012, 6031, and 6038, and related

or a CFP. See items 2 and 3 of Who Must

8858, one person may file Form 8858 and

regulations.

File above for more detailed information.

Schedule M, if applicable, for other

Who Must File

persons who have the same filing

Throughout these instructions, when

requirements with respect to both Form

the pronouns “you” and “your” are used,

The following U.S. persons that are tax

8858 and Form 5471 or Form 8865. If you

they are used in reference to the U.S.

owners of FDEs (see definitions below),

and one or more other persons are

person filing Form 8858.

or that own certain interests in foreign tax

required to furnish information for the

Foreign Disregarded Entity

owners of FDEs, must file Form 8858.

same FDE for the same period, this

(FDE)

1. U.S. Persons That Are Tax Owners

information may be included with or

of FDEs at any time during the U.S.

attached to, and filed in the same manner

An FDE is an entity that is not created or

person’s taxable year or annual

as, the multiple filer information provided

organized in the United States and that is

accounting period. Complete the entire

disregarded as an entity separate from its

with respect to the CFC or the CFP. See

Form 8858, but do not complete the

Multiple filers of same information in the

owner for U.S. income tax purposes

separate Schedule M.

under Regulations sections 301.7701-2

Form 5471 instructions or Multiple

and -3. See the instructions for Form

Category 1 filers in the Form 8865

2. Certain U.S. Persons That Are

instructions.

8832, Entity Classification Election, for

Required To File Form 5471 With

more information.

Respect To a Controlled Foreign

Corporation (CFC) That is a Tax Owner

When and Where to File

Tax Owner of FDE

of an FDE at any time during the CFC’s

The tax owner of the FDE is the person

Form 8858 is due when your income tax

annual accounting period:

that is treated as owning the assets and

return or information return is due,

Category 4 filers of Form 5471.

liabilities of the FDE for purposes of U.S.

including extensions. If you are the tax

Complete the entire Form 8858 and the

income tax law.

owner of the FDE, attach Form 8858 and

separate Schedule M.

the separate Schedule M, if required, to

Direct Owner of FDE

Category 5 filers of Form 5471.

your income tax return or information

The direct owner of an FDE is the legal

Complete only the identifying information

return. If you are not the tax owner of the

on page 1 of Form 8858 (i.e., everything

owner of the disregarded entity.

FDE, attach Form 8858 to any Form 5471

above Schedule C) and Schedules G and

For example, assume A, a U.S.

or Form 8865 you are filing with respect

H on page 2 of Form 8858. Do not

individual, is a 60% partner of CFP, a

to the CFC or the CFP that is the tax

complete the separate Schedule M.

controlled foreign partnership. FDE 1 is a

owner of the FDE.

foreign disregarded entity owned by CFP,

3. Certain U.S. Persons That Are

and FDE 2 is a foreign disregarded entity

Required To File Form 8865 With

Definitions

Respect To a Controlled Foreign

owned by FDE 1. In this example, FDE 1

Partnership (CFP) That is a Tax Owner

is the direct owner of FDE 2, and CFP is

U.S. person

the direct owner of FDE 1. CFP is the tax

of an FDE at any time during the CFP’s

A U.S. person is:

annual accounting period:

owner with respect to both FDE 1 and

•

FDE 2. A would be required to file the

Category 1 filers of Form 8865.

A citizen or resident alien of the United

Forms 8858 relating to FDE 1 and FDE 2

Complete the entire Form 8858 and the

States (see Pub. 519, U.S. Tax Guide for

with the Form 8865 it files with respect to

separate Schedule M.

Aliens, for guidance on determining

CFP.

Category 2 filers of Form 8865.

resident alien status),

•

Complete only the identifying information

A domestic partnership,

Penalties

•

on page 1 of Form 8858 (i.e., everything

A domestic corporation,

above Schedule C) and Schedules G and

Failure to file information required by

•

Any estate (other than a foreign estate,

H on page 2 of Form 8858. Do not

section 6038(a) (Form 8858 and

within the meaning of section

complete the separate Schedule M. You

Schedule M).

7701(a)(31)(A)), and

•

are not required to complete Form 8858 if

A $10,000 penalty is imposed for each

•

Any domestic trust.

there is a Category 1 filer of Form 8865

annual accounting period of each CFC or

that completes the entire Form 8858 and

A domestic trust is any trust if:

CFP for failure to furnish the required

Cat. No. 38123Q

Instructions For Form 8858 - Information Return Of U.s. Persons With Respect To Foreign Disregarded Entities

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