Instructions For Form 8858 Sheet (Page 2 of 4) in pdf

the information is not filed within 90 days

to 1 Japanese Yen). Divide 30,255,400

form) and complete items 1a through 1e

after the IRS has mailed a notice of the

Yen by 118.5050 to determine the U.S.

and 1g.

•

failure to the U.S. person, an additional

dollar amount to enter on line 7 of

Complete items 3a through 3d, if

$10,000 penalty (per CFC or CFP) is

Schedule H. Enter 118.5050 after the

applicable.

•

charged for each 30-day period, or

flush language following line 7.

Complete items 4a through 4c, if

fraction thereof, during which the failure

applicable.

Electronic Filing of Form 8858

continues after the 90-day period has

File this summary return in the manner

If you file your income tax return

expired. The additional penalty is limited

described in When and Where To File on

electronically, see the instructions for your

to a maximum of $50,000 for each failure.

page 1.

•

income tax return for general information

Any person who fails to file or report all

about electronic filing.

of the information required within the time

prescribed will be subject to a reduction of

Note. If you are filing Form 1120

Specific Instructions

10% of the foreign taxes available for

electronically, you must attach Form

credit under sections 901, 902, and 960.

8858 electronically (as an attachment to

Important: If the information required in

If the failure continues 90 days or more

your electronically filed Form 5471, Form

a given section exceeds the space

after the date the IRS mails notice of the

8865, or Form 1120). If you are filing

provided within that section, do not write

failure to the U.S. person, an additional

Form 1040, 1041, or 1065 electronically

“see attached” in the section and then

5% reduction is made for each 3-month

(with or without a Form 5471 or Form

period, or fraction thereof, during which

attach all of the information on additional

8865), attach Form 8858 to the applicable

sheets. Instead, complete all entry spaces

the failure continues after the 90-day

Form 8453.

in the section and attach the remaining

period has expired. See section

Computer-Generated Form

information on additional sheets. The

6038(c)(2) for limits on the amount of this

additional sheets must conform with the

penalty.

8858 and Schedules

IRS version of that section.

Criminal penalties. Criminal penalties

A computer-generated Form 8858 and its

under sections 7203, 7206, and 7207

schedules may be filed if they conform to

Identifying Information

may apply for failure to file the information

and do not deviate from the official form

required by section 6038.

and schedules. Generally, all

Annual Accounting Period

computer-generated forms must receive

Note. Any person required to file Form

Enter, in the space provided below the

prior approval from the IRS and are

8858 and Schedule M who agrees to

subject to an annual review.

title of Form 8858, the annual accounting

have another person file the form and

period of the FDE for which you are

schedules for him or her may be subject

Submit all requests for approval to:

furnishing information. The annual

to the above penalties if the other person

Internal Revenue Service, Attention:

accounting period of an FDE is the annual

does not file a correct and proper form

Substitute Forms Program,

accounting period or taxable year of the

and schedule.

SE:W:CAR:MP:T:T:SP, 1111 Constitution

tax owner. Therefore, in the case of a

Avenue NW, IR-6406, Washington, DC

U.S. tax owner, the annual accounting

Other Reporting

20224.

period of the FDE is the taxable year of

Requirements

Important: Be sure to attach the

the U.S. tax owner; and in the case of a

approval letter to Form 8858.

CFC or CFP that is a tax owner, the

Reporting Exchange Rates on

annual accounting period of the FDE is

Every year, the IRS issues a revenue

Form 8858

the annual accounting period of the CFC

procedure to provide guidance for filers of

When translating amounts from functional

or CFP.

computer-generated forms. In addition,

currency to U.S. dollars, you must use the

every year the IRS issues Pub. 1167,

method specified in these instructions.

General Rules and Specifications For

Person Filing This Return

But, regardless of the specific method

Substitute Forms and Schedules, which

In the spaces provided at the top of page

required, all exchange rates must be

reprints the most recent applicable

1 of Form 8858, provide the identifying

reported using a “divide-by convention”

revenue procedure. Pub. 1167 can be

information for the U.S. person filing Form

rounded to at least 4 places. That is, the

ordered by calling 1-800-TAX-FORM

8858 (see definition on page 1).

exchange rate must be reported in terms

(1-800-829-3676). This publication is also

of the amount by which the functional

If a U.S. corporation is the U.S.

available from the IRS website at www.

currency amount must be divided in order

person filing Form 8858 and is a member

irs.gov.

to reflect an equivalent amount of U.S.

of a consolidated group, list the common

Dormant FDEs

dollars. As such, the exchange rate must

parent as the person filing the return and

be reported as the units of foreign

Announcement 2004-4, 2004-4 I.R.B.

enter its identifying information in the

currency that equal one U.S. dollar,

357, provides for a summary filing

spaces provided at the top of page 1 of

rounded to at least 4 places. Do not

procedure for filing Form 8858 for a

the form.

report the exchange rate as the number

dormant FDE. A dormant FDE is an FDE

Name Change

of U.S. dollars that equal one unit of

that would be a dormant controlled

foreign currency.

foreign corporation (CFC) if it were

If the name of the person filing the return,

Note. You must round the result to more

treated as a foreign corporation for U.S.

the tax owner, the direct owner, or the

than 4 places if failure to do so would

tax purposes.

FDE whose activities are being reported

materially distort the exchange rate or the

changed within the past 3 years, show the

If you elect the summary procedure,

equivalent amount of U.S. dollars.

prior name(s) in parentheses after the

complete only the identifying information

current name.

Example. During its annual

above Schedule C on page 1 of Form

accounting period, an FDE owned by a

8858 for each dormant FDE as follows:

Addresses

•

U.S. person had current income of

The top margin of the summary return

Use the following instructions to complete

30,255,400 Yen on Schedule H, line 6.

must be labeled “Filed Pursuant to

lines 1a, 2a, 2b, 3a, 4a, and the entry

The Schedule H instructions specify that

Announcement 2004-4 for Dormant FDE.”

•

spaces at the top of page 1 of the form for

the filer must translate these amounts into

Include the name, address, identifying

the filer’s address.

U.S. dollars at the average exchange rate

number, and tax year of the U.S. person

for the tax year in accordance with the

filing Form 8858 (see definition on page

U.S. Addresses. Include the suite,

rules of section 989(b). The average

1).

room, or other unit number after the street

•

exchange rate is 118.5050 Japanese Yen

Include the annual accounting period of

address. If the Post Office does not

to 1 U.S. dollar (0.00843846 U.S. dollars

the dormant FDE (below the title of the

deliver mail to the street address and the

-2-

Instructions For Form 8858 Sheet Page 2

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