Form 8865 Filing Requirements

Purpose

Form 8865 is used to report information about foreign partnerships under three main sections:

• Section 6038 (controlled foreign partnerships)
• Section 6038B (transfers to foreign partnerships)
• Section 6046A (acquisitions, dispositions, and changes in foreign partnership interests)

Who Must File

U.S. persons must file Form 8865 if they qualify under one or more of four categories of filers:

Category 1 Filer

U.S. persons who control a foreign partnership (specific control thresholds apply).

Category 2 Filer

U.S. persons who own interests in controlled foreign partnerships.

Category 3 Filer

U.S. persons who contribute property to a foreign partnership.

Category 4 Filer

U.S. persons who have acquisitions, dispositions, or changes in their foreign partnership interests.

Key Filing Rules

Multiple Categories: If you qualify under more than one category for a particular foreign partnership, you must submit all items required for each category.

Separate Forms: Complete a separate Form 8865 and applicable schedules for each foreign partnership.

Tax Year: Report information for the foreign partnership's tax year that ends with or within your tax year. Category 1 or 2 filers report for the partnership's tax year; Category 3 or 4 filers report transactions during their own tax year.

Attachment: Attach Form 8865 to your income tax return (or partnership/exempt organization return) by the due date.

Exception: Multiple Category 1 Filers

When more than one U.S. person qualifies as a Category 1 filer during the partnership's tax year, only one Category 1 partner is required to file Form 8865. The single form must contain all information that would be required if each Category 1 filer filed separately.