Form 8805 - Foreign Partner’s Information Statement of Section 1446 Withholding Tax
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Form 8805 is a four-part form a U.S. partnership prepares for each foreign partner to report the amount of effectively connected taxable income (ECTI) and the total tax credit allocable to the partner for the partnership's tax year. Two of the four copies are for the IRS and the withholding agent, and the remaining two copies are sent to the partner.
How the information in Form 8805 is entered in Tax Processors Plus Desktop depends on the kind of return you are completing:
- Partnership return (Form 1065) - The summary of the information in all Forms 8805 is entered in Form 8804, Annual Return for Partnership Withholding Tax (Section 1446). (If Form 8804 results in a balance due, the Form 8813 payment voucher will also be available for printing under the View Results menu.) Form 8804, along with Form(s) 8805 and 8813, isn't e-filed with the partnership return but is mailed to its own address.
- Nonresident individual return (Form 1040-NR) - Form 8805 is entered in its menu line in the Payments menu.
Note that the printed copy of the individual tax return does not include a printed copy of Form 8805.
Partnership return
To complete Form 8804 in the partnership return in Tax Processors Plus Desktop, from the Main Menu of the return select:
- Miscellaneous
- Form 8804 - Annual Return for Section 1446 Withholding Tax
Note: The partnership must pay the withholding tax for a foreign partner even if it doesn't have a U.S. TIN for that partner.
Nonresident individual return (Form 1040-NR)
To enter Form 8805 in the nonresident individual tax return in Tax Processors Plus Desktop, from the Main Menu of the tax return (Form 1040-NR) select:
- Payments, Estimates and EIC
- Other 1040NR Payment
- US Tax Withheld on Form(s) 8805 - Select New and enter the information on the form.
The above step enters the tax information on Form 8805. The ECTI shown on the form needs to be entered separately in the tax return where it belongs.
Additional Information: