Instructions for Filling Out Form 8858

This document offers guidance on completing Form 8858, required for certain U.S. persons operating a Foreign Disregarded Entity (FDE) or owning a Foreign Branch (FB) directly or indirectly. The form and its schedules fulfill reporting requirements under sections 6011, 6012, 6031, and 6038, along with related regulations.

In this article, we'll provide information on Form 8858 and a step-by-step guide on how to fill it out, keeping it straight to the point.

What is Form 8858?

Form 8858 is a tax document used by specific U.S. persons who either operate a Foreign Disregarded Entity (FDE) or own a Foreign Branch (FB) directly or indirectly. The purpose of this form is to report the income, transactions, and liability information of the FDEs and FBs. It is designed to fulfill the reporting requirements under sections 6011, 6012, 6031, and 6038, along with related regulations. The form requires detailed information about the FDE or FB and includes various schedules that need to be completed depending on the filer's circumstances. Penalties may apply for failure to file the required information, and the form must be submitted when the income tax return or information return is due, including extensions.

Who Must File Form 8858?

Form 8858 must be filed by certain U.S. persons who operate a Foreign Disregarded Entity (FDE) or own a Foreign Branch (FB) directly or indirectly. This includes tax owners of FDEs, those who operate FBs, U.S. persons required to file Form 5471 for Controlled Foreign Corporations (CFCs) with FDEs or FBs, U.S. persons required to file Form 8865 for Controlled Foreign Partnerships (CFPs) with FDEs or FBs, U.S. persons who are partners in partnerships owning FDEs or operating FBs and applying section 987, and U.S. corporations that are partners in U.S. partnerships with Dual Consolidated Losses on Schedules K-2 and K-3 (Form 1065).

Form 8858 Tax Filing Deadlines and Due Dates

• Form 8858 is due when the income tax return of the filer is due, including extensions.
• Form 8858 is due when the information return of the filer is due, including extensions.

Form 8858 Late Payment Penalty

Although there’s no specific late payment penalty linked to this form, it is important to note that penalties may apply for failure to file the required information on time. To avoid potential penalties, filers should ensure they submit Form 8858 when their income tax return or information return is due, including any extensions.

Step-by-Step Instructions for Form 8858

The step-by-step instructions for filling out Form 8858 are as follows:

1. Fill out the identifying information at the top of the form, including the annual accounting period of the FDE or FB, the name and address of the person filing the return, and the name and address of the FDE or FB.
2. Complete the General Instructions section, which includes information about the purpose of the form, who must file, exceptions to filing, when and where to file, and definitions of terms used in the form.
3. Complete the Specific Instructions section, which provides detailed instructions for filling out each part of the form and its schedules.
4. Complete Schedule C to report a summary income statement for the FDE or FB.
5. Complete Schedule C-1 if the activities of an FDE or FB give rise to one or more QBUs.
6. Complete Schedule F to report a summary balance sheet for the FDE or FB.
7. Complete Schedule G to report certain information about the FDE or FB.
8. Complete Schedule H to report the FDE's current E&P or the FB’s income.
9. Complete Schedule I if the FB or FDE is owned directly by a domestic corporation, or indirectly by a domestic corporation through a tiered structure of FDEs or FBs.
10. Complete Schedule M (Form 8858) if the FDE or FB entered into any transaction with the filer of the Form 8858 or other related entities during the annual accounting period of the FDE or FB.
11. Attach any required additional schedules or statements, as specified in the instructions.
12. Sign and date the form, and submit it to the IRS by the required deadline.

How to Submit Form 8858

To submit Form 8858, complete the identifying information, general instructions, specific instructions, and applicable schedules (C, C-1, F, G, H, I, and M). Then, attach the form to your income tax return or information return. Ensure the form is completed in English, amounts are stated in U.S. dollars, and it is signed and dated. Submit the form by the due date of the income tax return or information return, including extensions. If filing electronically, attach the form electronically; if filing on paper, mail the form to the IRS along with your income tax return or information return.

Need Help with other Finance or Startup Questions?

Choose Pilot for expert bookkeeping, CFO, and tax services, catering to thousands of startups and expanding businesses. We pride ourselves on processing over 10 million transactions and possessing exceptional expertise in enhancing business growth. As a premier accounting firm focused on startups in the U.S., our goal is to help you thrive. Reach out to our sales team or check out our demo for more details!

‍