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Instructions for Form 8858

(Rev. December 2024)

(Use with the December 2024 revision of Form 8858 and the September 2021
revision of separate Schedule M)
Information Return of U.S. Persons With Respect to Foreign Disregarded Entities
(FDEs) and Foreign Branches (FBs)

Section references are to the Internal Revenue Code unless Functional currency. Filers of Form 8858 are required to
otherwise noted. enter a three-letter ISO 4217 “Alphabet Code” on lines 1j, 3e,
and 4d. For more information, see the instructions for line 1j,
Future Developments later.
For the latest information about developments related to
Form 8858, Schedule M (Form 8858), and their instructions,
such as legislation enacted after they were published, go to General Instructions
IRS.gov/Form8858.
Purpose of Form
What's New Form 8858 is used by certain U.S. persons that operate an
FB or own an FDE directly or, in certain circumstances,
Who must file, category 1 filer. The scope of filers was indirectly or constructively. See U.S. Person Filing Form
clarified to only apply to a direct owner of an FDE and 8858, later. The form and schedules are used to satisfy the
operator of an FB. reporting requirements of sections 6011, 6012, 6031, and
Who must file, category 2 filer. The scope of filers was 6038, and related regulations.
clarified to only apply to a tax owner of an FDE and operator If the tax owner of the FDE or FB is a controlled foreign
of an FB that is owned through one or more tiers of FDEs. corporation (CFC) or controlled foreign partnership (CFP),
Who must file, category 6 filer. The scope of filers was the amounts reported on Form 8858 Schedules C, F, H, J,
revised to apply to a U.S. corporation (other than a regulated and M must be included in determining the amounts reported
investment company (RIC), a real estate investment trust on the equivalent schedules, if applicable, of Form 5471 or
(REIT), or an S corporation) that is a partner in a partnership, Form 8865 of the tax owner. If there are tiers of FDEs or FBs
which checked box 11 (Dual Consolidated Loss) on (for example, one FDE owns one or more FDEs or FBs), then
Schedules K-2 and K-3 (Form 1065), regardless of whether complete separate Forms 8858 for each FDE or FB. Do not
the partnership is a U.S. or foreign partnership. include amounts reported on a Form 8858 for a lower tier
FDE or FB onto the Form 8858 for the upper tier FDE.
Line 1h, Principal business activity code number. The However, the amounts for all the FDEs and FBs must be
entry for the 6-digit principal business activity code number included in determining the amounts reported on the form for
was separated from Line 1i, Principal business activity, where the tax owner.
the description of the FDE's or FB's principal business
activity is entered. Who Must File
Schedule G, line 14. Certain jurisdictions have enacted The following U.S. persons that are tax owners of FDEs,
legislation to implement the GloBE Model Rules for the operate an FB, or that own certain interests in tax owners of
Qualified Domestic Minimum Top-up Tax (QDMTT), Income FDEs or FBs must file Form 8858, and Schedule M (Form
Inclusion Rule (IIR), and UTPR. Under these rules, if the 8858).
Effective Tax Rate (ETR) for a jurisdiction is below the 15% Category 1 filer. A U.S. person that is directly a tax owner of
Minimum Rate, Top-up Tax may be imposed and collected an FDE or operates an FB at any time during the U.S.
under the QDMTT, IIR, and/or UTPR. person's tax year or annual accounting period. Complete the
Reminders entire Form 8858, including the separate Schedule M (Form
8858), Transactions Between Foreign Disregarded Entity
Who must file, category 5 filer, and Schedule G, lines 10 (FDE) or Foreign Branch (FB) and the Filer or Other Related
through 13. The persons previously described in category 5 Entities.
are no longer required to file, and a U.S. partnership is no Category 2 filer. A U.S. person that indirectly through one
longer required to answer questions on lines 10 and 11 of or more tiers of FDEs is either a tax owner of an FDE or
Schedule G as if it were a U.S. corporation. For a operates an FB at any time during the U.S. person’s tax year
partnership's reporting obligations concerning dual or annual accounting period. Complete the entire Form 8858,
consolidated losses, see Partnership Instructions for including the separate Schedule M (Form 8858).
Schedules K-2 and K-3 (Form 1065). The description in
category 5 has been modified for a new group of filers. Category 3 filer. Certain U.S. persons that are required to
file Form 5471 with respect to a CFC that is a tax owner of an
Initial or final checkboxes. Additional clarification has FDE or operates an FB at any time during the CFC's annual
been provided for when to check these boxes. See Initial accounting period.
Form or Final Form 8858 under Specific Instructions, later.
Category 4 filers of Form 5471. Complete the entire
Form 8858 and the separate Schedule M (Form 8858).
Instructions for Form 8858 (Rev. 12-2024) Catalog Number 38123Q
Aug 29, 2024 Department of the Treasury Internal Revenue Service www.irs.gov

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Category 5 filers of Form 5471. Complete only the or attached to, and filed in the same manner as, the multiple
identifying information on page 1 of Form 8858 (for example, filer information provided with respect to the CFC or the CFP.
everything before Schedule C) and Schedules G, H, and J. See Multiple filers of same information in the Instructions for
Do not complete the separate Schedule M (Form 8858). Form 5471 or Multiple Category 1 filers in the Instructions for
Form 8865.
Category 4 filer. Certain U.S. persons that are required to
file Form 8865 with respect to a CFP that is a tax owner of an When and Where To File
FDE or operates an FB at any time during the CFP's annual
accounting period. If the U.S. person required to file by Form 8858 is due when your income tax return or information
operation of this rule is a U.S. individual, the U.S. person is return is due, including extensions. If you are the tax owner of
not required to complete lines 10 through 13 of Schedule G. the FDE or operate an FB, attach Form 8858 and the
If the U.S. person is not an individual, the U.S. person is separate Schedule M (Form 8858), if required, to your
required to report its distributive share of the items on lines income tax return or information return. If you are not the tax
10 through 13 of Schedule G. owner of the FDE or indirect FB, attach Form 8858 to any
Form 5471 or Form 8865 you are filing with respect to the
Category 1 filers of Form 8865. Complete the entire
CFC or the CFP that is the tax owner of the FDE or operates
Form 8858 and the separate Schedule M (Form 8858).
the FB.
Category 2 filers of Form 8865. Complete only the
identifying information on page 1 of Form 8858 (for example, Definitions
everything above Schedule C) and Schedules G, H, J, and
the separate Schedule M (Form 8858). You are not required U.S. Person
to complete Form 8858 if there is a category 1 filer of Form
A U.S. person is:
8865 that completes the entire Form 8858 and separate
Schedule M (Form 8858) with respect to the FDE or FB. • A citizen or resident alien of the United States (see Pub.
519 for guidance on determining resident alien status);
Category 5 filer. A U.S. person that is a partner in a • A domestic partnership;
partnership that owns an FDE or operates an FB and applies • A domestic corporation;
section 987 to the activities of the FDE or FB using a method • Any estate (other than a foreign estate, within the meaning
that requires the partner, rather than the partnership, to of section 7701(a)(31)(A)); and
recognize section 987 gain or loss with respect to the FDE or • Any domestic trust.
FB. The U.S. person must complete the first page of the Form A domestic trust is any trust if:
8858 and Schedule C-1 for each FDE and FB of the
partnership. As stipulated in the Partnership Instructions for 1. A court within the United States is able to exercise
Schedules K-2 and K-3 (Form 1065), the partnership must primary supervision over the administration of the trust, and
furnish to the U.S. person all the information necessary for 2. One or more U.S. persons have the authority to control
them to complete the above-described portions of Form all substantial decisions of the trust.
8858. A category 5 filer should check the box for “FDE of a
U.S. person” (in the case of an FDE owned by a partnership) U.S. Person Filing Form 8858
or “FB of a U.S. person” (in the case of an FB owned by a
partnership). The U.S. person filing Form 8858 is any U.S. person that:
Category 6 filer. A U.S. corporation (other than a RIC, a • Is the tax owner of an FDE;
REIT, or an S corporation) that is a partner in a partnership, • Owns a specified interest in an FDE indirectly or
which checked box 11 (Dual Consolidated Loss) on constructively through a CFC or a CFP (see items 2 and 3
Schedules K-2 and K-3 (Form 1065). Even though the U.S. under Who Must File, earlier, for more detailed information);
corporation is not the tax owner of the FDE and/or the FB, the or
U.S. corporation must complete lines 1 through 5 of the Form • Operates (directly or indirectly through a tier of FDEs) an
8858, line 3 of Schedule G, and report its distributive share of FB.
the items on lines 10 through 13 of Schedule G for each FDE
and FB of the partnership. As stipulated in the Partnership Throughout these instructions, when the pronouns “you”
Instructions for Schedules K-2 and K-3 (Form 1065), the and “your” are used, they are used in reference to the U.S.
partnership must furnish to the U.S. corporate partner the person filing Form 8858.
information necessary for the partner to complete the
above-described portions of Form 8858. Foreign Disregarded Entity (FDE)
An FDE is an entity that is not created or organized in the
Note. Complete a separate Form 8858 and all applicable United States and that is disregarded as an entity separate
schedules for each FDE or FB. from its owner for U.S. income tax purposes under
Regulations sections 301.7701-2 and 301.7701-3. See the
Exceptions To Filing Form 8858 instructions for Form 8832 for more information.
Multiple filers of the same information. In the case of
category 4 or 5 filers of Form 5471 or category 1 filers of An eligible entity uses Form 8832 to elect how it will be
Form 8865 who are also required to file Form 8858, one classified for federal tax purposes. A copy of Form 8832 is
person may file Form 8858 and Schedule M (Form 8858), if attached to the entity's federal tax return for the tax year of
applicable, for other persons who have the same filing the election; however, special rules apply if the entity is not
requirements with respect to both Form 8858 and Form 5471 required to file a tax return. For more information, see Where
or Form 8865. If you and one or more other persons are To File in the instructions for Form 8832.
required to furnish information for the same FDE or indirect
FB for the same period, this information may be included with Note. Rules, effective September 28, 2009, allow an eligible
entity to request a late entity classification election. See Rev.

2 Instructions for Form 8858 (Rev. 12-2024)

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Proc. 2009-41, available at IRS.gov/irb/ information within the time prescribed. If the information is not
2009-39_IRB#RP-2009-41, for more information. filed within 90 days after the IRS has mailed a notice of the
failure to the U.S. person, an additional $10,000 penalty (per
Tax Owner of FDE CFC or CFP) is charged for each 30-day period, or fraction
The tax owner of the FDE is the person that is treated as thereof, during which the failure continues after the 90-day
owning the assets and liabilities of the FDE for purposes of period has expired. The additional penalty is limited to a
U.S. income tax law. maximum of $50,000 for each failure.
• Any person who fails to file or report all of the information
Direct Owner of FDE required within the time prescribed will be subject to a
The direct owner of an FDE is the legal owner of the reduction of 10% of the foreign taxes available for credit
disregarded entity. under sections 901 and 960. If the failure continues 90 days
or more after the date the IRS mails notice of the failure to the
Example. Assume Avery, a U.S. individual, is a 60% U.S. person, an additional 5% reduction is made for each
partner of CFP 1, a controlled foreign partnership. FDE 1 is a 3-month period, or fraction thereof, during which the failure
foreign disregarded entity owned by CFP 1, and FDE 2 is a continues after the 90-day period has expired. See section
foreign disregarded entity owned by FDE 1. In this example, 6038(c)(2) for limits on the amount of this penalty.
FDE 1 is the direct owner of FDE 2, and CFP 1 is the direct
owner of FDE 1. CFP 1 is the tax owner with respect to both Criminal penalties. Criminal penalties under sections 7203,
FDE 1 and FDE 2. Avery would be required to file the Forms 7206, and 7207 may apply for failure to file the information
8858 relating to FDE 1 and FDE 2 with the Form 8865 it files required by section 6038.
with respect to CFP 1.
Note. Any person required to file Form 8858 and
Foreign Branch (FB) Schedule M (Form 8858) who agrees to have another person
file the form and schedules for them may be subject to the
An FB is defined in Regulations section 1.367(a)-6T(g). For
above penalties if the other person does not file a correct and
purposes of filing a Form 8858, an FB also includes a
proper form and schedule.
qualified business unit (QBU) (as defined in Regulations
section 1.989(a)-1(b)(2)(ii)) that is foreign. Other Reporting Requirements
Example. Assume A, a domestic corporation, operates a
foreign branch, FB1, in country X and is the tax owner of a Reporting Exchange Rates on Form 8858
foreign disregarded entity, FDE1, in country Y that also
When translating amounts from functional currency to U.S.
operates a foreign branch, FB2, in country Z. In addition, A is
dollars, you must use the method specified in these
the sole owner of CFC1, a controlled foreign corporation, that
instructions. But, regardless of the specific method required,
operates a foreign branch, FB3, in country Z. FB1, FB2, and
all exchange rates must be reported using a “divide-by
FB3 qualify as foreign branches under Regulations section
convention” rounded to at least four places. That is, the
1.367(a)-6T(g).
exchange rate must be reported in terms of the amount by
A is the direct owner of the activities of FB1 and FDE1, which the functional currency amount must be divided in
and an indirect owner of the activities of FB2, through its order to reflect an equivalent amount of U.S. dollars. As such,
ownership of FDE1. the exchange rate must be reported as the units of foreign
A would be required to file separate Forms 8858 relating to currency that equal 1 U.S. dollar, rounded to at least four
FB1, FDE1, and FB2, its indirect foreign branch through its places. Do not report the exchange rate as the number of
ownership of FDE1. Unless indicated otherwise on the Form U.S. dollars that equal 1 unit of foreign currency.
8858 or in the instructions, the Form 8858 filed relating to
FDE1 would include only items attributable to FDE1 and Note. You must round the result to more than four places;
therefore would not include any items attributable to FB2. failure to do so would materially distort the exchange rate or
Similarly, unless indicated otherwise, the Form 8858 filed for the equivalent amount of U.S. dollars.
FB2 would include only items attributable to FB2 and not to Example. During its annual accounting period, an FDE
FDE1. owned by a U.S. person had current income of 30,255,400
CFC1 is the direct owner of the activities of FB3. Also, Japanese Yen on Schedule H, line 6. The Schedule H, line 7,
CFC1 is the tax owner with respect to the foreign branch instructions specify that the filer must translate these
activities of FB3. A would be required to file the Form 8858 amounts into U.S. dollars at the average exchange rate for
relating to FB3 with the Form 5471 it files with respect to the tax year in accordance with the rules of section 989(b).
CFC1. The Form 5471 for CFC1 would include any income or The average exchange rate is 105.7846 Japanese Yen to
loss incurred by FB3. 1 U.S. dollar (0.00945317 U.S. dollars to 1 Japanese Yen).
Accounting books and records. The existence of a Divide 30,255,400 Japanese Yen by 105.7846 to determine
separate set of books and records, or lack thereof, may affect the U.S. dollar amount to enter on Schedule H, line 7. Enter
the determination of whether a trade or business activity 105.7846 on Schedule H, line 8.
qualifies as an FB that is required to file Form 8858. For more
information, see Regulations sections 1.989(a)-1(d) and Electronic Filing of Form 8858
1.367(a)-6T(g)(1). If you file your income tax return electronically, see the
instructions for your income tax return for general information
Penalties about electronic filing.
Failure to file information required by section 6038(a) Note. If you are filing Form 1120 or 1065 electronically, you
(Form 8858 and Schedule M (Form 8858)). must attach Form 8858 electronically (as an attachment to
• A $10,000 penalty is imposed for each annual accounting your electronically filed Form 1120, Form 1065, Form 5471,
period of each CFC or CFP for failure to furnish the required

Instructions for Form 8858 (Rev. 12-2024) 3

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or Form 8865). If you are filing Form 1040, Form 1040-SR, or tax owner. Therefore, in the case of a U.S. tax owner, the
Form 1041 electronically (with or without a Form 5471 or annual accounting period of the FDE or FB is the tax year of
Form 8865), attach Form 8858 to the applicable Form 8453. the U.S. tax owner; and in the case of a CFC or CFP that is a
tax owner, the annual accounting period of the FDE or FB is
Computer-Generated Form 8858 and Schedules the annual accounting period of the CFC or CFP.
A computer-generated Form 8858 and its schedules may be
filed if they conform to and do not deviate from the official Person Filing This Return
form and schedules. Generally, all computer-generated forms In the spaces provided at the top of page 1 of Form 8858,
must receive prior approval from the IRS and are subject to provide the identifying information for the U.S. person filing
an annual review. Form 8858 (see U.S. Person, earlier).
Submit all requests for approval to the Substitute Forms If a U.S. corporation is the U.S. person filing Form 8858
Program. Use the address in the current Pub. 1167, General and is a member of a consolidated group, list the common
Rules and Specifications for Substitute Forms and Schedules parent as the person filing the return and enter its identifying
at IRS.gov/Pub1167. information in the spaces provided at the top of page 1 of the
form.
Important: Be sure to attach the approval letter to Form
8858. Name Change
Every year, the IRS issues a revenue procedure to provide If the name of the person filing the return, the tax owner, the
guidance for filers of computer-generated forms. In addition, direct owner, the FB, or the FDE whose activities are being
every year, the IRS issues Pub. 1167, which reprints the most reported changed within the past 3 years, show the prior
recent applicable revenue procedure. Pub. 1167 is available name(s) in parentheses after the current name.
at IRS.gov/Pub1167, or can be ordered by calling
800-TAX-FORM (800-829-3676). Addresses
Use the following instructions to complete lines 1a, 2a, 2b,
Dormant FDEs 3a, and 4a, and the entry spaces at the top of page 1 of the
Announcement 2004-4, 2004-4 I.R.B. 357, available at form for the filer's address.
IRS.gov/irb/2004-04_IRB#2004-4, provides for a summary U.S. addresses. Include the suite, room, or other unit
filing procedure for filing Form 8858 for a dormant FDE. A number after the street address. If the post office does not
dormant FDE would be a dormant controlled foreign deliver mail to the street address and the U.S. person has a
corporation if it were treated as a foreign corporation for U.S. P.O. box, show the box number instead.
tax purposes.
Foreign addresses. Enter the information in the following
If you elect the summary procedure, complete only the order: city, province or state, and country. Follow the
identifying information before Schedule C on page 1 of Form country's practice for entering the postal code, if any. Do not
8858 for each dormant FDE as follows. abbreviate the country name. However, if you are filing Form
• The top margin of the summary return must be labeled 8858 electronically, enter a valid country code (from the list at
“Filed Pursuant to Announcement 2004-4 for Dormant FDE.” IRS.gov/CountryCodes) instead of the country name.
• Include the name, address, identifying number, and tax
year of the U.S. person filing Form 8858 (see U.S. Person, Initial Form or Final Form 8858
earlier).
• Include the annual accounting period of the dormant FDE Check the Initial Form 8858 box in the year the tax owner
(below the title of the form) and complete lines 1a through 1e, formed or aquired the FDE or FB, and check the Final Form
and 1g. 8858 box in the year the tax owner terminated or disposed of
• Complete lines 3a through 3d, if applicable. the FDE or FB. Only one of these boxes can be checked on
• Complete lines 4a through 4c, if applicable. each Form 8858 filed. For example, if an FDE is formed or
aquired, and terminated or disposed of, within the same tax
File this summary return in the manner described in When year (even if it was on the same day), you are required to file
and Where To File, earlier. a separate Form 8858 for each event.
On one Form 8858, you would check the Initial 8858
Specific Instructions checkbox to reflect the formation or acquisition of the FDE,
and complete the rest of the form reporting information for the
Important: If the information required in a given section period that the tax owner owns the FDE. On the other Form
exceeds the space provided within that section, do not write 8858, you would check the Final 8858 checkbox to reflect the
“see attached” in the section and then attach all of the termination or disposition of the FDE, and complete the rest
information on additional sheets. Instead, complete all entry of the form reporting information for the period that the tax
spaces in the section and attach the remaining information owner owns the FDE.
on additional sheets. The additional sheets must conform
with the IRS version of that section. Identifying Numbers
Use the following instructions to complete lines 1b(1) 3c(1), ,
Identifying Information and 4c, and the entry space at the top of page 1 of the form
for the filer's identifying number. The identifying number of an
Annual Accounting Period individual is their social security number (SSN). The
Enter, in the space provided below the title of Form 8858, the identifying number of all others is their employer identification
annual accounting period of the FDE or FB for which you are number (EIN).
furnishing information. The annual accounting period of an
FDE or FB is the annual accounting period or tax year of the

4 Instructions for Form 8858 (Rev. 12-2024)

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If a U.S. corporation is the U.S. person filing Form 8858 8832 to become an FDE must have an EIN. For the first year
and is a member of a consolidated group, see Person Filing that Form 8858 is required to be filed after an entity
This Return, earlier. classification election is made on behalf of the foreign entity
on Form 8832, the new EIN must be entered on line 1b(1) of
Line 1b(1)—U.S. identifying number. Generally, you must
Form 8858 and the old reference ID number must be entered
enter an EIN on line 1b(1). If you don’t have an EIN when you
on line 1b(2) of Form 8858. In subsequent years, a filer may
file Form 8858, you must enter a reference ID number on
continue to enter both the EIN on line 1b(1) and the reference
line 1b(2).
ID number on line 1b(2), but must enter at least the EIN on
Foreign disregarded entity (FDE). An EIN is required for line 1b(1).
an FDE to file Form 8832 to elect to be treated as an FDE.
The new EIN must be included on the Form 8858 filed by the You must correlate the reference ID numbers as follows:
FDE for the first year in which it elects to be treated as an New reference ID number (space) Old reference ID number.
FDE, and the old reference ID number must be entered on If there is more than one old reference ID number, you must
line 1b(2). In subsequent years, the FDE must enter the EIN enter a space between each such number. As indicated
on line 1b(1) of the Form 8858, but entering the old reference above, the length of a given reference ID number is limited to
ID number on line 1b(2) is optional. 50 characters and each number must be alphanumeric and
Foreign branch (FB). An FB does not file Form 8832 and no special characters are permitted.
thus may not be required to have an EIN. In that case, the FB
Note. This correlation requirement applies only to the first
must enter a reference ID number on line 1b(2).
year the new reference ID number is used.
Note. Do not enter an SSN on line 1b(1) or 1b(2).
Line 1g—Country in Which Principal Business
Line 1b(2)—Reference ID number. A reference ID number Activity Is Conducted
(defined below) is required on line 1b(2) only in cases where
Enter the two-letter country code (from the list at IRS.gov/
no EIN was entered on line 1b(1) for the FDE or FB. However,
CountryCodes) of the country in which the principal business
filers are permitted to enter both an EIN on line 1b(1) and a
activity of the FDE or FB is conducted.
reference ID number on line 1b(2). If applicable, enter the
reference ID number you have assigned to the FDE or FB Enter “US” if the principal business activity of an FDE is
identified on line 1a. conducted in the United States.
A "reference ID number" is a number established by the
U.S. person identified at the top of page 1 of the Form 8858 Line 1h—Principal Business Activity Code
who is responsible for completing the Form 8858 for the FDE Number
or FB. The reference ID number must meet the requirements Enter the 6-digit principal business activity code number for
set forth below. the FDE or FB. Principal business activity code numbers can
be found at the end of the Instructions for Form 5471.
Note. Because reference ID numbers are established by or
on behalf of the U.S. person filing Form 8858, there is no Line 1i—Principal Business Activity
need to apply to the IRS to request a reference ID number or
Enter a brief description of the FDE’s or FB’s principal
for permission to use these numbers. Reference ID numbers
business activity.
must be used consistently from year to year to identify a
specific FB or FDE. Line 1j—Functional Currency
Requirements. The reference ID number that is entered
Enter the entity's three-letter functional currency code. This is
on line 1b(2) must be alphanumeric (defined below) and no
an Alphabet Code selected from ISO 4217, available at
special characters or spaces are permitted. The length of a
ISO.org/iso-4217-currency-codes.html or CURRENCY-
given reference ID number is limited to 50 characters.
ISO.org/en/home/tables/table-a1.html. See sections 985 and
For these purposes, the term "alphanumeric" means the 989, and Regulations sections 1.985-1(a) through (c) and
entry can be alphabetical, numeric, or any combination of the 1.989(a)-1(b) for rules for determining the functional currency
two. of a QBU and the definition of a QBU.
The same reference ID number must be used consistently
from tax year to tax year with respect to a given FDE, FB, or Hyperinflationary exception. An entity that would
tax owner. If for any reason a reference ID number falls out of otherwise be required to use a hyperinflationary currency as
use (for example, the FDE, FB, or tax owner no longer exists its functional currency must use the U.S. dollar as its
due to disposition or liquidation), the reference ID number functional currency and figure income or loss or earnings and
used for that FDE, FB, or tax owner cannot be used again for profits using the U.S. dollar approximate separate
another FDE, FB, or tax owner for purposes of Form 8858 transactions method of accounting (DASTM) under the
reporting. special rules of Regulations section 1.985-3. However, if the
There are some situations that warrant correlation of a hyperinflationary QBU is an FDE or FB of a foreign
new reference ID number with a previous reference ID corporation with a non-U.S. dollar functional currency that is
number when assigning a new reference ID number to an not hyperinflationary, the functional currency of the FDE or
FDE, FB, or tax owner partnership. For example: FB is the functional currency of the foreign corporation and
• In the case of a merger or acquisition, a Form 8858 filer such QBU applies Regulations section 1.985-3 by
must use a reference ID number that correlates the previous substituting the functional currency of the foreign corporation
reference ID number with the new reference ID number for the U.S. dollar. See Regulations section 1.985-1(b)(2).
assigned to the FDE, FB, or tax owner; or
• Under Regulations section 301.6109-1(b)(2)(v), a foreign
entity that makes an entity classification election on Form

Instructions for Form 8858 (Rev. 12-2024) 5

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Line 3 between the tax owner and the FDE or FB and the chain of
If the tax owner of the FDE or FB is different from the filer, ownership between the FDE or FB and all entities in which
then provide the information required on lines 3a through 3e the FDE or FB has a 10%-or-more direct or indirect interest.
for the tax owner. • The name and percentage of ownership of all entities in
the chain of ownership, including partnerships and entities
Line 3b disregarded as separate from their owners.
If the tax owner is a CFC, enter the annual accounting period • The FDE’s or FB’s position in the chain of ownership.
covered by Form 5471 (as described in Regulations section • The tax classification of all entities in the chain of
1.6038-2(e)). If the tax owner is a CFP, enter the annual ownership (see the Form 8832 instructions for tax
accounting period covered by Form 8865 (as described in classification rules and related definitions).
Regulations section 1.6038-3(f)). • The country under whose law each entity is organized.
Line 3c(1)—U.S. Identifying Number For these purposes, the rules of section 958(a) (relating to
“direct and indirect ownership”) apply.
To complete line 3c(1), see Line 1b(1)—U.S. identifying
number, earlier. If the tax owner does not have an EIN when Each filer of Form 8858 that is required to file an
Form 8858 is filed, a reference ID number must be entered organizational chart with respect to more than one FDE
on line 3c(2). See the instructions for line 3c(2), later. and/or FB may satisfy this requirement by filing a single
organizational chart that includes the required information
Note. If the tax owner is an individual, enter an SSN on with respect to all FDEs and FBs.
line 3c(1) or line 3c(2).
Schedule C—Income Statement
Line 3c(2)—Reference ID Number Use Schedule C to report a summary income statement for
A reference ID number (defined earlier, under the instructions the FDE or FB figured in the FDE’s or FB’s functional
for line 1b(2)) is required on line 3c(2) only in cases where no currency in accordance with U.S. generally accepted
EIN was entered on line 3c(1). However, filers are permitted accounting principles (GAAP). Enter in the U.S. dollar column
to enter both an EIN on line 3c(1) and a reference ID number each line item functional currency amount translated into
on line 3c(2). If this tax owner is a CFC, enter the reference ID dollars using U.S. GAAP translation rules. If the FDE or FB
number for the CFC from Form 5471, item 1b(2). If this tax does not maintain U.S. GAAP income statements in U.S.
owner is a CFP, enter the reference ID number for the CFP dollars, you can use the average exchange rate as
from Form 8865, item G2(b). See the instructions for determined under section 989(b). The rate used should be
line 1b(2) for more information about the requirements for the the rate stated on Schedule H, line 8. If you choose to use the
reference ID number. average exchange rate rather than the U.S. GAAP translation
rules, check the box above line 1 on Schedule C.
Note. If this tax owner is a CFC and Schedule A (Form 8992)
or Schedule B (Form 8992) is required to be filed with respect Special rules for DASTM. If the FDE or FB uses DASTM,
to that CFC, the reference ID number entered on line 3c(2) the functional currency column should reflect local
must be the same as the reference ID number entered on hyperinflationary currency amounts figured in accordance
Form 5471, item 1b(2), and Schedule A (Form 8992), column with U.S. GAAP. The U.S. dollar column should reflect such
(b), or Schedule B (Form 8992), Part I, column (b). amounts translated into dollars under U.S. GAAP translation
rules. Differences between this U.S. dollar GAAP column and
Line 3e the U.S. dollar income or loss figured for tax purposes under
Regulations section 1.985-3(c) should be accounted for on
See Line 1j—Functional Currency, earlier.
Schedule H. See Special rules for DASTM under
Line 4 Schedule H, later.

If the direct owner of the FDE or FB is different from the tax Line 12
owner, then provide the information required on lines 4a
Enter the income, war profits, and excess profits tax
through 4d for the direct owner. If the FDE has more than one
deducted in accordance with U.S. GAAP.
direct owner, attach a statement to Form 8858 that includes
the information requested on line 4 for each additional direct Line 13
owner.
Include on line 13 adjustments for extraordinary items or prior
Line 4c—U.S. Identifying Number period adjustments. The terms “extraordinary items” and
“prior period adjustments” have the same meaning given to
To complete line 4c, see Line 1b(1)—U.S. identifying number,
them by U.S. GAAP (see Subtopic 225-20, Income
earlier. If the direct owner does not have an EIN when Form
Statement and Statement No. 16 of the Financial Accounting
8858 is filed, leave this line blank.
Standards Board).
Note. If the direct owner is an individual, enter an SSN on
Important: Differences between this functional currency
line 4c.
amount and the amount of taxes that reduce earnings and
Line 4d profits (E&P) (in the case of an FDE or FB of a CFC) or are
deductible in figuring U.S. taxable income (in the case of an
See Line 1j—Functional Currency, earlier. FDE or FB of a U.S. person or a CFP) should be accounted
for on line 2 or 3 of Schedule H.
Line 5
You must attach an organizational chart that includes the
following information with respect to the chain of ownership

6 Instructions for Form 8858 (Rev. 12-2024)

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Schedule C-1—Section 987 Gain or Schedule G—Other Information

Loss Information Line 3
The activities of an FDE or FB may give rise to one or more
If the tax owner of the FDE is claiming a section 165 loss with
QBUs. If the QBU has a different functional currency than its
respect to worthless stock or with respect to certain
owner, then such owner may be subject to section 987.
obligations, see Regulations section 1.6011-4 for information
If an owner would be treated as owning multiple QBUs, relating to a disclosure statement that must be attached to
complete a separate Schedule C-1 with respect to each QBU Form 8858 if certain requirements are met.
of the owner.
Line 6
If a QBU has multiple owners, complete a separate
Schedule C-1 for each owner. Check “Yes” if the FB or FDE is a QBU as defined in section
989(a). If the QBU is subject to section 987, see
However, if the U.S. person filing Form 8858 knows that Schedule C-1.
the owner of a QBU has the same functional currency as a
QBU owned by that person, the U.S. person filing Form 8858 Lines 7 and 8
is not required to complete Schedule C-1 with respect to that
Note. Do not complete lines 7 and 8 if you are an individual
owner’s interest in the QBU.
who owns an FB or FDE directly or through tiers of FBs and
If the U.S. person filing Form 8858 does not know and FDEs.
does not have reason to know the functional currency of the A base erosion payment, in general, means any amount
owner of a QBU, leave column (b) of lines 1 and 2 blank. paid or accrued by an “applicable taxpayer” (as defined by
section 59A(e)) to a foreign person that is a related party of
Line 2b the taxpayer and with respect to which a deduction is
Report on line 2b the amount of section 987 gain or loss allowable under chapter 1 of the Code. See section 59A(d).
recognized by the recipient owner that results from a
remittance from a QBU or a termination of a QBU. A base erosion tax benefit, in general, means any
deduction that is allowed under chapter 1 for the tax year with
For amounts reported on line 2b, include a statement with respect to any base erosion payment. See section 59A(c)(2).
the following information.
• A description of the methodology used to figure the section See sections 59A(f) and 59A(g) for the definitions of
987 gain or loss. “foreign person” and “related party.”
• The amount of section 987 gain or loss included on line 2b
that was previously deferred under Regulations section Also, see the Instructions for Form 8991 for the
1.987-12 and that is being recognized in the current tax year. determination of a base erosion payment and a base erosion
tax benefit.
Line 3b
Report on line 3b the amount of section 987 gain or loss that Line 7a
is deferred under Regulations section 1.987-12 either from a Check “Yes” if the FB or FDE received (or accrued the receipt
deferral event or an outbound loss event. of) any base erosion tax payment, or had a base erosion tax
benefit, from a foreign person that is a related party of the FB
If an amount is included on line 3b, include a statement or FDE. Otherwise, check “No.”
that provides the following information for each deferral event
or outbound loss event. If “Yes,” complete lines 7b and 7c, where appropriate.
• Description of the deferral event or outbound loss event.
• The amount of section 987 gain or loss recognized in the Line 7b
tax year of the deferral event or outbound loss event, and in Enter the total amount of base erosion payments received (or
any subsequent tax year, the remaining amount of deferred accrued the receipt of) by the FB or FDE for the tax year.
section 987 gain or loss.
• For an outbound loss event described in Regulations Line 7c
section 1.987-12(d)(4), the amount of section 987 loss that is
an adjustment to stock basis and the name of the CFC that Enter the total amount of base erosion tax benefit recognized
had an adjustment to its basis from the outbound loss event. by the payor relating to base erosion payments reported on
line 7b. Also include on line 7c any base erosion tax benefit
Line 5 taken into account in the current year from a base erosion
payment in a previous year, for example, depreciation
If the owner changed the method of accounting for its section described in section 59A(c)(2)(A)(ii).
987 gain or loss, provide a statement describing the previous
method used, the new method being used, and the rationale Line 8a
for the change in method of accounting.
Check “Yes” if the FB or FDE paid (or accrued the payment
Schedule F—Balance Sheet of) any base erosion tax payment, or had a base erosion tax
benefit, to a foreign person that is a related party of the FB or
Use Schedule F to report a summary balance sheet for the
FDE. Otherwise, check “No.”
FDE or FB figured and translated into U.S. dollars in
accordance with U.S. GAAP. If “Yes,” complete lines 8b and 8c, where appropriate.
Special rule for DASTM. If the FDE or FB uses DASTM,
Schedule F should be prepared and translated into U.S. Line 8b
dollars according to Regulations section 1.985-3(d), rather Enter the total amount of base erosion payments paid or
than U.S. GAAP. accrued by the FB or FDE for the tax year.

Instructions for Form 8858 (Rev. 12-2024) 7

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Line 8c                                                            1.1503(d)-6 for exceptions. For example, a domestic use 
Enter the total amount of base erosion tax benefit relating to     election made pursuant to Regulations section 
base erosion payments reported on line 8b. Also include on         1.1503(d)-6(d) is such an exception.
line 8c any base erosion tax benefit taken into account in the       If you check “Yes,” you may need to include a domestic 
current year from a base erosion payment in a previous year,       use election with your U.S. income tax return. If the answer to 
for example, depreciation described in section 59A(c)(2)(A)        line 12b is “Yes,” go to line 12c. If the answer to line 12b is 
(ii).                                                              “No,” skip line 12c and go to line 12d.

Line 9                                                             Line 12c
Answer line 9 only if the tax owner of the FB or FDE is a CFC.     If you checked “Yes” on line 12b, the regulations require that 
Otherwise, skip to line 10.                                        you file documentation for an exception to apply. Check “Yes” 
                                                                   on line 12c if you have attached any of the following 
Lines 10 Through 13                                                documents to your timely filed return.
Complete lines 10 through 13 only if the tax owner of the FB,      • The document(s) required to be filed under an elective 
or the tax owner of the interest in the FDE, is a U.S.             agreement between the United States and a foreign country; 
corporation (other than a RIC, a REIT, or an S corporation).       see Regulations section 1.1503(d)-6(b)(1).
Otherwise, continue to Schedule H.                                 • “No Possibility of Foreign Use of Dual Consolidated Loss 
  An FB or interest in an FDE of a U.S. corporation may be         Statement”; see Regulations section 1.1503(d)-6(c).
treated as a separate unit and subject to dual consolidated        • “Domestic Use Election and Agreement”; see Regulations 
loss (DCL) rules pursuant to Regulations sections                  section 1.1503(d)-6(d)(1).
1.1503(d)-1 through 1.1503(d)-8.
                                                                   Line 12d
Line 10a                                                           If a separate unit, as defined under Regulations section 
Check “Yes” if the FB or FDE is a separate unit under              1.1503(d)-1(b)(4), incurs a DCL after having contributed to 
Regulations section 1.1503(d)-1(b)(4), is not part of a            consolidated taxable income of a group in prior years, the 
combined separate unit under Regulations section                   DCL may be used to offset income of domestic affiliates in 
1.1503(d)-1(b)(4)(ii), and has a DCL for the tax year. If you      the year of the DCL (limited by the amount of the separate 
checked “Yes” on line 10a, enter the amount of the DCL on          unit’s prior contribution to the cumulative consolidated 
line 10b.                                                          taxable income of the group (“cumulative register”)). See 
                                                                   Regulations sections 1.1503(d)-4(c) and 1.1502-21(c).
Line 11a                                                             Check “Yes” on line 12d if the DCL was used to figure 
If the FB or interest in the FDE is treated as a separate unit     consolidated taxable income. If the DCL amount exceeds the 
under Regulations section 1.1503(d)-1(b)(4), is part of a          separate unit’s cumulative register as of the beginning of the 
combined separate unit, and the combined separate unit has         tax year, the amount of DCL claimed is limited to the extent of 
a DCL for the tax year, check “Yes” and go to lines 11b and        the cumulative register and should be reflected on line 10b or 
11c. Otherwise, check “No,” then skip lines 11b through 12e        11b, as appropriate. Any excess DCL is treated as a loss 
and go to line 13a.                                                carryover subject to the separate return limitation year (SRLY) 
                                                                   provisions of Regulations section 1.1502-21(c), as modified 
Line 11b                                                           by Regulations section 1.1503(d)-4. Do not answer “Yes” to 
If you checked “Yes” on line 11a, enter the amount of the DCL      line 12d if the DCL was used to figure consolidated taxable 
for the combined separate unit (as defined in Regulations          income pursuant to one of the exceptions under Regulations 
section 1.1503(d)-1(b)(4)). See Regulations section                section 1.1503(d)-6. See lines 12b and 12c, earlier. If the 
1.1503(d)-5(c)(4)(ii) and complete line 11c.                       answer to line 12d is “Yes,” go to line 12e.
Line 11c                                                             Check “No” on line 12d if the DCL was not used to figure 
If you checked “Yes” on line 11a, enter the net income or loss     consolidated taxable income or the separate unit’s 
attributed to the FB or the interest in the FDE. See               cumulative register as of the beginning of the tax year is less 
Regulations section 1.1503(d)-5(c)(4)(ii)(A).                      than or equal to zero. In such case, the DCL is treated as a 
                                                                   loss carryover subject to the SRLY provisions of Regulations 
Line 12a                                                           section 1.1502-21(c), as modified by Regulations section 
                                                                   1.1503(d)-4.
Subject to certain exceptions, a domestic use of a DCL is not 
permitted (“domestic use limitation rule”). A domestic use is      Line 12e
deemed to occur in the year the DCL is included in the 
computation of the taxable income of a consolidated group,         If the answer to line 12d is “Yes,” enter the separate unit’s 
unaffiliated dual resident corporation, or unaffiliated domestic   contribution to the cumulative consolidated taxable income 
owner, as applicable. See Regulations section 1.1503(d)-2.         as of the beginning of the tax year.

  Check “Yes” on line 12a if any portion of the DCL on             Line 13a
line 10b or 11b was taken into account in figuring U.S.            Check “Yes” if a triggering event occurred under Regulations 
taxable income for the year. If “Yes,” go to line 12b. If “No,” go section 1.1503(d)-6(e) requiring recapture of any DCLs 
to line 13a.                                                       attributable to the FB or interest in the FDE, individually or as 
                                                                   part of a combined separate unit, in any prior tax years. If 
Line 12b                                                           “Yes,” enter the total amount of recapture on line 13b. In 
A domestic use of a DCL is permitted if an exception to the        addition, attach a statement to Form 8858 that provides a 
domestic use limitation rule applies. See Regulations section      detailed description of the triggering event, the regulation 

8                                                                              Instructions for Form 8858 (Rev. 12-2024)

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citation for the triggering event, and a schedule of the prior GAAP, enter on line 1 the functional currency GAAP income
year(s) DCL(s) being recaptured by year. or loss from line 14 of Schedule C, rather than starting with
foreign book income, and show GAAP-to-tax adjustments on
Check “No” if, with regard to each such prior year DCL,
lines 2 and 3.
one of the following is applicable.
• No triggering event occurred in the current tax year. The adjustments may include the following.
• A triggering event occurred in the current tax year; • Capital gains and losses.
however, a “Rebuttal to Triggering Event” is attached to the • Depreciation, amortization, and depletion.
return pursuant to Regulations section 1.1503(d)-6(e)(2). • Investment or incentive allowance.
• A triggering event occurred in the current tax year; • Charges to statutory reserves.
however, the amount of the recapture was reduced to zero • Inventory adjustments. Inventories must be taken into
pursuant to Regulations section 1.1503(d)-6(h)(2) and a account according to the rules of sections 471 (incorporating
“Reduction of Recapture Amount” is attached to the return. the provisions of section 263A) and 472 and the related
regulations.
Note. If there is a partial reduction of the recapture amount Taxes. See the instructions for Schedule C, line 13, earlier.
•
pursuant to Regulations section 1.1503(d)-6(h)(2) and a
recapture amount is required to be included in income, check Attach a separate schedule that lists each applicable
“Yes,” enter the reduced amount of the DCL recapture adjustment item. For each adjustment item, indicate the
included in income, and attach the “Reduction of Recapture adjustment amount and whether the amount is a net addition
Amount” to the return. or net subtraction. The separate schedule should also show
two totals, the total net additions amount to be entered on
Line 14a line 2, and the total net subtractions amount to be entered on
Certain jurisdictions have enacted legislation to implement line 3.
the GloBE Model Rules for the Qualified Domestic Minimum
Top-up Tax (QDMTT), Income Inclusion Rule (IIR), and Line 5
UTPR. See OECD (2021), Tax Challenges Arising from the DASTM gain or loss, reflecting unrealized exchange gain or
Digitalisation of the Economy-Global Anti-Base Erosion loss, should be entered on line 5 only for FDEs or FBs that
Model Rules (Pillar Two) available at DOI.gov/ use DASTM.
10.1787/782bac33-en. Under these rules, if the ETR for a
jurisdiction is below 15%, Top-up Tax may be imposed. The Line 7
amount of Top-up Tax is determined by multiplying the Enter on line 7 the functional currency amount translated into
Top-up Tax Percentage (the positive excess of 15% over the U.S. dollars at the average exchange rate for the FDE’s or
ETR in the jurisdiction) by the Excess Profits (the positive FB’s tax year. See section 989(b). Report the exchange rate
amount of the Net GloBE Income in such jurisdiction that using the “divide-by convention” specified under Reporting
exceeds a Substance-based Income Exclusion). The Top-up Exchange Rates on Form 8858, earlier. If the FDE or FB uses
Tax is collected under the QDMTT, IIR, and/or UTPR. DASTM, enter on line 7 the same amount entered on line 6.
If the FDE or FB paid or accrued any QDMTT, IIR, and/or Blocked income. The E&P or taxable income of the FDE or
UTPR (or similar tax) during the tax year check "Yes" and FB, as reflected on Schedule H, must not be reduced by all or
provide the amount of each type of tax on lines 14b(1) any part of such E&P or taxable income that could not have
through 14b(3), as applicable. been distributed by the FDE or FB due to currency or other
For more information, see Notice 2023-80, I.R.B. 2023-52 restrictions or limitations imposed under the laws of any
1583 available at IRS.gov/IRB/2023-52_IRB#NOT-2023-80. foreign country.

Schedule H—Current Earnings and Schedule I—Transferred Loss Amount
Important: Schedule I should be completed if the FB or FDE
Profits or Taxable Income is owned:
Use Schedule H to report the FDE's current E&P or the FB’s • Directly by a domestic corporation, or
income (if the tax owner is a CFC) or the FDE’s or FB’s • Indirectly by a domestic corporation through a tiered
taxable income (if the tax owner is a U.S. person or a CFP). structure of FDEs or FBs.
Generally, enter the amounts on lines 1 through 6 in Schedule I should not be completed if the FB or FDE is
functional currency. owned by a CFC.
Special rules for DASTM. If the FDE or FB uses DASTM,
enter on line 1 the U.S. dollar GAAP income or loss from Line 1
line 14 of Schedule C. Enter on lines 2 and 3 the adjustments Check “Yes” if any assets of an FB (or a branch that is an
made in figuring current E&P or taxable income for U.S. tax FDE) were transferred to a foreign corporation during the tax
purposes. Report these amounts in U.S. dollars. Enter on year. If “Yes,” continue to line 2; otherwise, check “No” and do
line 5 the DASTM gain or loss figured under Regulations not complete the rest of Schedule I.
section 1.985-3(d).
Line 2
Lines 2 and 3 Check “Yes” if the transferor was a domestic corporation that
Certain adjustments must be made to the FDE’s or FB’s transferred substantially all of the assets of an FB (or a
line 1 net book income or loss to determine its current E&P or branch that is an FDE) to a specified 10%-owned foreign
taxable income. The adjustments may include those needed corporation. A specified 10%-owned foreign corporation is
to conform the foreign book income to U.S. GAAP and to U.S. defined in section 245A(b)(1) as any foreign corporation with
tax accounting principles. If the FDE’s or FB’s books are respect to which any domestic corporation is a U.S.
maintained in functional currency in accordance with U.S. shareholder with respect to such corporation. If “Yes,”

Instructions for Form 8858 (Rev. 12-2024) 9

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continue to line 3; otherwise, check “No” and do not complete case of income taxes paid or accrued by a CFC or CFP, with
the rest of Schedule I. or within its annual accounting period. Do not report taxes
that are not creditable, including taxes for which a credit is
Line 3 disallowed under section 901(j), (k), (l), or (m).
Check “Yes” if the transferor was a domestic corporation and
immediately after the transfer the domestic corporation was a Except as provided below, adjustments to foreign income
U.S. shareholder (10%-or-more shareholder) with respect to taxes paid or accrued in a prior year should not be reflected
the transferee foreign corporation. If “Yes,” continue to line 4; on the Form 8858 in the year of adjustment. Instead, they are
otherwise, check “No” and do not complete the rest of reported in the year to which such taxes relate. This may
Schedule I. require an amended return. See section 905(c), as amended
by the TCJA. Adjustments include, for example, additional
Line 4 payments, refunds, and downward adjustments for accrued
Under section 91, the U.S. transferor must include in gross foreign taxes that are not paid within 24 months after the
income an amount equal to the transferred loss amount close of the tax year to which such taxes relate. For more
(TLA), if any, as defined in section 91(b) upon a transfer of information, see Regulations section 1.905-3.
substantially all of the assets of an FB (including an FB that is Exception. With respect to entities owned directly by a U.S.
an FDE) to a foreign corporation. The TLA is the sum of person, certain de minimis adjustments may be taken into
losses incurred by the FDE or FB after 2017, and before the account in the year of such adjustment. See Regulations
transfer and with respect to which a deduction was allowed to section 1.905-3(b)(1).
the U.S. transferor reduced by the sum of:
Column (a). Enter the two-letter country code (from the list
1. Any taxable income of such branch for a tax year after at IRS.gov/CountryCodes) of all foreign countries and U.S.
the tax year in which the loss was incurred and through the territories within which income is sourced and/or to which
close of the tax year of the transfer, and taxes were paid, accrued, or deemed paid.
2. Any amount recognized under section 904(f)(3) Column (b). Enter the foreign tax year (YYYY-MM-DD) of
resulting from the transfer. the foreign entity to which the tax relates.
Also, see section 14102(d)(4) of the Tax Cuts and Jobs Act Columns (c) through (e). Report foreign income taxes in
(TCJA) for the transition rule of section 91. column (c) in the local currency in which the taxes are
The TLA amount may be reduced (but not below zero) by payable. Translate these amounts into U.S. dollars (column
the amount of gain recognized on account of the transfer, (e)) at the average exchange rate for the tax year to which the
other than the amounts recognized under section 904(f)(3), if tax relates (column (d)) unless one of the exceptions below
any. Enter the amount of the TLA included in gross income as applies. See section 986(a).
a positive number on line 4. Exceptions. If one of the following exceptions applies, use
If the amount is equal to or less than zero, enter zero and the exchange rate in effect on the date the foreign entity paid
no TLA is required to be recognized by the U.S. transferor on the tax.
the transfer under section 91. If the amount is greater than 1. The tax is paid before the beginning of the year to
zero, enter the TLA on line 4 and report this amount as other which the tax relates.
income on the applicable Form 1120 (for Form 1120 filers, 2. Accrued taxes are not paid before the date 2 years
page 1, line 10, Other income) and identify the amount as after the close of the tax year to which such taxes relate.
“Section 91 Transferred Loss Amount.” In addition, attach a 3. There is an election in effect under section 986(a)(1)
“Schedule I—Transferred Loss Amount Additional (D) to translate foreign taxes using the exchange rate in effect
Information” statement to the Form 8858 and provide the on the date of payment.
following information.
• A detailed calculation of the transferred loss amount 4. The foreign entity reports on the cash basis. See
reflecting amounts of the losses generated by such foreign section 986(a).
branch after 2017 by year, and any income amounts by year 5. The foreign income taxes are denominated in a foreign
generated after such loss year. currency that is an inflationary currency.
• The amount, if any, recognized under section 904(f)(3) on
account of the transfer. Enter the exchange rate used in column (d). Report the
• A detailed summary of the gain recognized (other than exchange rate using the “divide-by convention” specified
section 91) by the transferor, including any section 367(a)(1) under Reporting Exchange Rates on Form 8858, earlier.
gain on the transfer of property. Enter the translated U.S. dollar amount in column (e).
• A calculation of the net sum of the previously deducted Columns (f) through (i). Enter the amount by separate
losses incurred by such foreign branch for tax years prior to category of income in columns (f) through (i).
January 1, 2018, that would have been recaptured under Example. Form 8858 is filed for calendar year 2024. A
section 367(a)(3)(C), as determined without regards to the CFC, which has a calendar year as its annual accounting
repeal of the section 367(a)(3) active trade or business period, owns FDEs in countries AA and BB. The FDE in
exception by section 14102 of the TCJA. country AA pays or accrues income tax of 10u = $10 to
Schedule J—Income Taxes Paid or country AA with respect to its foreign tax year ending
November 30, 2024. The FDE in country BB pays or accrues
Accrued income tax of 20v = $30 to country BB with respect to its
List income, war profits, and excess profits taxes (“income foreign tax year ending March 31, 2024. In addition, in 2024,
taxes”) paid or accrued to the United States and to each the CFC received a refund of 3u or $5 with respect to the
foreign country or U.S. territory for the foreign entity’s foreign entity it owns in country AA for foreign tax year ending
tax year(s) that end with or within its U.S. tax year, or in the November 30, 2023, which had an original liability of 21u or

10 Instructions for Form 8858 (Rev. 12-2024)

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$35. All taxes are allocated to the general category. The • column (e): $30
following entries should be made on Schedule J of the Form • column (h): $30
8858 filed for calendar year 2024. See the filled-in example of Schedule J, later.
Line 1 2023 refund. The refund from tax year 2023 is not
• column (a): Country code AA reported on the 2024 Form 8858. The following entries
• column (b): 2024-11-30 should be made on Schedule J of the amended Form 8858
• column (c): 10u filed for the calendar year 2023.
• column (d): 1.0000
• column (e): $10 • column (a): Country code AA
• column (h): $10 • column (b): 2023-11-30
• column (c): 18u
Line 2 • column (d): 0.6000
• column (a): Country code BB • column (e): $30
• column (b): 2024-03-31 • column (h): $30
• column (c): 20v
• column (d): 0.6666

Example—Filled-in Schedule J for Calendar Year 2024
Schedule J Income Taxes Paid or Accrued (see instructions)
Foreign Income Taxes Foreign Tax Credit Separate Categories
(a) (b) (c) (d) (e) (f) (g) (h) (i)
Country or Foreign tax year Foreign currency Conversion rate U.S. dollar Foreign branch Passive General Other
territory (YYYY-MM-DD)
AA 2024-11-30 10u 1.0000 10 10
BB 2024-03-31 20v 0.6666 30 30

Totals 40 40

For additional instructions on the reporting of foreign taxes Every U.S. person that is required to file Schedule M
for entities filing a Form 8858 that are owned by a foreign (Form 8858) (see Who Must File, earlier) must file the
corporation, see the instructions for Form 5471, Schedule E. schedule to report the transactions that occurred during the
FDE’s or FB’s annual accounting period ending with or within
For purposes of column (i), enter foreign income taxes the U.S. person's tax year.
allocated and apportioned to a separate category of income
not otherwise listed in column (f), (g), or (h). Identify the taxes If a U.S. corporation is the U.S. person filing Schedule M
with respect to each separate category of income. For (Form 8858) and is a member of a consolidated group, list
example, if a foreign entity pays taxes to Country A that are the common parent as the U.S. person filing Schedule M
allocated and apportioned to two separate categories of (Form 8858).
income, report the taxes allocated and apportioned to the
Reference ID number. A reference ID number for the FDE
first separate category on one line and the taxes allocated
or FB identified on Schedule M (Form 8858) is required if no
and apportioned to the other separate category on another
EIN is provided. However, filers are permitted to provide both
line. For purposes of determining the applicable categories of
an EIN and reference ID number. For more information on the
income, see Categories of Income in the Instructions for
reference ID number, see Line 1b(2)—Reference ID number,
Form 1118 or in the Instructions for Form 1116, as applicable.
earlier.
Schedule M (Form Column headings. There are three sets of column
headings above lines 1 through 21. The first set of column
8858)—Transactions Between Foreign
headings is to be used in cases where the tax owner is a
Disregarded Entity (FDE) or Foreign CFP. The second set of column headings is to be used in
cases where the tax owner is a CFC. The third set of column
Branch (FB) and the Filer or Other headings is to be used in cases where the tax owner is a U.S.
Related Entities person. If you are completing Schedule M (Form 8858) for an
Important: In translating the amounts from functional FDE or FB for which the tax owner is a CFP, check the box for
currency to U.S. dollars, use the average exchange rate for CFPs and complete lines 1 through 21 using the headings in
the FDE’s or FB’s tax year. See section 989(b). Report the columns (a) through (e) of the CFP set of columns. If you are
exchange rate in the entry space provided at the top of completing Schedule M (Form 8858) for an FDE or FB for
Schedule M (Form 8858) using the “divide-by convention” which the tax owner is a CFC, check the box for CFCs and
specified under Reporting Exchange Rates on Form 8858, complete lines 1 through 21 using the headings in columns
earlier. (a) through (f) of the CFC set of columns. If you are
completing Schedule M (Form 8858) for an FDE or FB for
A Schedule M (Form 8858) must be filed with each Form
which the tax owner is a U.S. person, check the box for U.S.
8858 if the FDE or FB entered into any transaction with the
Tax Owner and complete lines 1 through 21 using the
filer of the Form 8858 or other related entities during the
headings in columns (a) through (e) of the U.S. Tax Owner
annual accounting period of the FDE or FB.
set of columns.

Instructions for Form 8858 (Rev. 12-2024) 11

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Column (e). For CFP- or CFC-owned FDEs or FBs, use               FB with any foreign corporation (including its FBs or FDEs) 
column (e) to report transactions between the FDE or FB and      controlling or controlled by the FDE’s or FB’s U.S. tax owner, 
any U.S. person with a 10%-or-more direct interest in the        if the U.S. tax owner of the FDE or FB is not the U.S. person 
CFP or any 10%-or-more U.S. shareholder of any corporation       filing the return.
controlling the CFC. If you are a category 1 filer of Form       Column (e).        Use column (e) to report transactions 
8865, or a category 4 filer of Form 5471, do not report          between the FDE or FB with any foreign (including hybrid) 
transactions between yourself and the FDE or FB under            partnerships (including its FBs or FDEs) controlling or 
column (e). Report the transactions only under column (b).       controlled by the filer. This will include any transactions 
                                                                 between the FDE or FB with any foreign (including hybrid) 
U.S. tax owner. The following instructions for columns (b)       partnership (including its FBs or FDEs) controlling or 
through (e) apply only to an FDE or FB with a U.S. tax owner.    controlled by the FDE’s or FB’s U.S. tax owner, if the U.S. tax 
Column (b).    Use column (b) to report transactions             owner of the FDE or FB is not the U.S. person filing the 
between the FDE or FB with the U.S. person filing this return    return.
only if the U.S. person filing this return is other than the tax 
owner of the FDE or FB. If the U.S. person filing this return is Line 6. Report on line 6 dividends received by the FDE that 
the tax owner of the FDE or FB, do not enter any amounts in      were not previously taxed under subpart F in the current year 
column (b).                                                      or in any prior year.
Column (c).    Use column (c) to report transactions             Lines 20 and 21.   Report on lines 20 and 21 the largest 
between the FDE or FB with any domestic corporation or           outstanding balances during the year of gross amounts 
partnership controlled by the filer. Do not include any          borrowed from, and gross amounts loaned to, the related 
transactions between the FDE or FB with its direct U.S. tax      parties described in columns (b) through (f). Do not enter 
owner that are treated as disregarded for U.S. tax purposes      aggregate cash flows, year-end loan balances, average 
in column (c).                                                   balances, or net balances. Do not include open account 
Column (d).    Use column (d) to report transactions             balances resulting from sales and purchases reported under 
between the FDE or FB with any foreign corporation               other items listed on Schedule M (Form 8858) that arise and 
(including its FBs or FDEs) controlling or controlled by the     are collected in full in the ordinary course of business.
filer. This will include any transactions between the FDE or 

Paperwork Reduction Act Notice. We ask for the information on this form to carry out the Internal Revenue laws of the 
United States. You are required to give us the information. We need it to ensure that you are complying with these laws and to 
allow us to figure and collect the right amount of tax.
You are not required to provide the information requested on a form that is subject to the Paperwork Reduction Act unless 
the form displays a valid OMB control number. Books or records relating to a form or its instructions must be retained as long as 
their contents may become material in the administration of any Internal Revenue law. Generally, tax returns and return 
information are confidential, as required by section 6103.
The time needed to complete and file this form and related schedules will vary depending on individual circumstances. The 
estimated burden for individual taxpayers filing this form is approved under OMB control number 1545-1910 and is included in 
the estimates shown in the instructions for their individual income tax return. The estimated burden for all other taxpayers who 
file this form is shown below.
                                                                 Learning about the   Preparing and sending 
Form                          Recordkeeping                      law or the form      the form to the IRS
8858                          25 hr., 49 min.                    4 hr., 46 min.       5 hr., 24 min.
Sch. M (Form 8858)            24 hr., 9 min.                            6 min.        30 min.

If you have comments concerning the accuracy of these time estimates or suggestions for making this form and related 
schedules simpler, we would be happy to hear from you. See the instructions for the tax return with which this form is filed.

12                                                                                  Instructions for Form 8858 (Rev. 12-2024)

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