Form 8805: Foreign Partner’s Information Statement of Section 1446 Withholding Tax

Form 8805, titled "Foreign Partner's Information Statement of Section 1446 Withholding Tax," is used by partnerships in the United States to provide information to their foreign partners. It details two key aspects of the foreign partner's involvement in the partnership for the tax year:

A. Effectively Connected Taxable Income (ECTI): This refers to the portion of the partnership's income that is considered taxable in the United States for the foreign partner.

B. Total Tax Credit Allocable: This represents the total amount of tax credits the foreign partner can claim against their U.S. tax liability.

What's the Purpose of Form 8805?

The primary purpose of Form 8805 is to ensure foreign partners are informed about their tax obligations related to the partnership. By receiving this form, foreign partners can:

  • Accurately report their share of ECTL on their U.S. tax return (if applicable).
  • Claim the appropriate tax credits associated with their partnership activity.

Who Files Form 8805?

The responsibility of filing Form 8805 falls on the partnership itself. There's no requirement for the foreign partner to file this form.

Who Receives Form 8805?

The partnership must furnish a completed copy of Form 8805 to each of its foreign partners. This typically happens alongside Schedule K-1 (Form 1065), which reports the partner's share of income, deductions, and credits for the partnership's tax year.

Most Common Questions about Form 8805

Do I need to file Form 8805 if I am a U.S. citizen or resident alien partner?

No, Form 8805 is only applicable to foreign partners of the partnership.

Where can I find Form 8805?

You can download the latest version of Form 8805 and its instructions attached below.

What happens if I don't receive Form 8805 from the partnership?

If you are a foreign partner and haven't received Form 8805, you should contact the partnership directly to request a copy.

Do I need to file Form 8805 with the IRS?

No, Form 8805 is an informational statement for the foreign partner and is not filed with the IRS.