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Department of the Treasury
Internal Revenue Service
Instructions for Form 8858

(Rev. December 2023)

(Use with the September 2021 revision of Form 8858)
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 If the tax owner of the FDE or FB is a controlled foreign
otherwise noted. corporation (CFC) or controlled foreign partnership (CFP),
the amounts reported on Form 8858 Schedules C, F, H, J and
Future Developments M must be included in determining the amounts reported on
For the latest information about developments related to the equivalent schedules, if applicable, of Form 5471 or 8865
Form 8858, Schedule M (Form 8858), and their instructions, of the tax owner. If there are tiers of FDE or FBs (e.g. one
such as legislation enacted after they were published, go to FDE owns one or more FDEs or FBs), then complete
IRS.gov/Form8858. separate Forms 8858 for each FDE or FB. Do not include
amounts reported on a Form 8858 for a lower tier FDE or FB
What's New onto the Form 8858 for the upper tier FDE. However, the
amounts for all the FDEs and FBs must be included in
Who must file, category 2 filer. The scope of filers has determining the amounts reported on the form for the tax
been modified to provide that a U.S. person is not a category owner.
2 filer solely as a result of its interest in a partnership (though
it may be a filer in a different category). Who Must File
Who must file, category 5 filer, and Schedule G, lines 10 The following U.S. persons that are tax owners of FDEs,
through 13. The persons previously described in category 5 operate an FB, or that own certain interests in tax owners of
are no longer required to file and a U.S. partnership is no FDEs or FBs must file Form 8858 and Schedule M (Form
longer required to answer Questions 10 and 11 of 8858).
Schedule G as if it were a U.S. corporation. For a
Category 1 filer. A U.S. person that is a tax owner of an
partnership's reporting obligations concerning dual
FDE or operates an FB at any time during the U.S. person's
consolidated losses, see Partnership Instructions for
tax year or annual accounting period. Complete the entire
Schedules K-2 and K-3 (Form 1065). The description in
Form 8858, including the separate Schedule M (Form 8858),
category 5 has been modified for a new group of filers.
Transactions Between Foreign Disregarded Entity (FDE) or
Reminders Foreign Branch (FB) and the Filer or Other Related Entities.
Category 2 filer. A U.S. person that directly (or indirectly
Initial or final checkboxes. Additional clarification has
through a tier of FDEs) is a tax owner of an FDE or operates
been provided for when to check these boxes. See Initial
an FB. Complete the entire Form 8858, including the
Form or Final Form 8858 under Specific Instructions, later.
separate Schedule M (Form 8858).
Functional currency. Filers of Form 8858 are required to
Category 3 filer. Certain U.S. persons that are required to
enter a three-letter ISO 4217 “Alphabet Code” on lines 1i, 2e,
file Form 5471 with respect to a CFC that is a tax owner of an
and 4d. For more information, see the instructions for line 1i,
FDE or operates an FB at any time during the CFC's annual
later.
accounting period.
Schedule C-1. Category 4 filers of Form 5471. Complete the entire Form
• Boxes 2a and 3a have been grayed out, because 8858 and the separate Schedule M (Form 8858).
information on lines 2 and 3 applies only to the recipients of
the remittances (column (b)) and not the foreign disregarded Category 5 filers of Form 5471. Complete only the
entity (FDE) or foreign branch (FB) (column (a)). See the identifying information on page 1 of Form 8858 (for example,
instructions for clarification. everything before Schedule C) and Schedules G, H, and J.
• On line 3, the regulations citation has been changed from Do not complete the separate Schedule M (Form 8858).
1.987-12T to 1.987-12 to reflect the publication of the final Category 4 filer. Certain U.S. persons that are required to
section 1.987-12 regulation. file Form 8865 with respect to a CFP that is a tax owner of an
FDE or operates an FB at any time during the CFP's annual
accounting period. If the U.S. person required to file by
General Instructions
operation of this rule is a U.S. individual, the U.S. person is
Purpose of Form not required to complete lines 10 through 13 of Schedule G.
If the U.S. person is not an individual, the U.S. person is
Form 8858 is used by certain U.S. persons that operate an required to report its distributive share of the items on lines
FB or own an FDE directly or, in certain circumstances, 10 through 13 of Schedule G.
indirectly or constructively. See U.S. Person Filing Form
8858, later. The form and schedules are used to satisfy the Category 1 filers of Form 8865. Complete the entire Form
reporting requirements of sections 6011, 6012, 6031, and 8858 and the separate Schedule M (Form 8858).
6038, and related regulations. Category 2 filers of Form 8865. Complete only the
identifying information on page 1 of Form 8858 (for example,

Dec 14, 2023 Cat. No. 38123Q

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everything above Schedule C) and Schedules G, H, J, and
Definitions
the separate Schedule M (Form 8858). You are not required
to complete Form 8858 if there is a category 1 filer of Form
U.S. Person
8865 that completes the entire Form 8858 and separate
Schedule M (Form 8858) with respect to the FDE or FB. A U.S. person is:
• A citizen or resident alien of the United States (see Pub.
Category 5 filer. A U.S. person that is a partner in a 519 for guidance on determining resident alien status),
partnership that owns an FDE or operates an FB and applies • A domestic partnership,
section 987 to the activities of the FDE or FB using a method • A domestic corporation,
that requires the partner, rather than the partnership, to • Any estate (other than a foreign estate, within the meaning
recognize section 987 gain or loss with respect to the FDE or of section 7701(a)(31)(A)), and
FB. The U.S. person must complete the first page of the Form • Any domestic trust.
8858 and Schedule C-1 for each FDE and FB of the
partnership. As stipulated in the Partnership Instructions for A domestic trust is any trust if:
Schedules K-2 and K-3 (Form 1065), the partnership must 1. A court within the United States is able to exercise
furnish to the U.S. person all the information necessary for primary supervision over the administration of the trust, and
them to complete the above-described portions of Form 2. One or more U.S. persons have the authority to control
8858. A category 5 filer should check the box for “FDE of a all substantial decisions of the trust.
U.S. person” (in the case of an FDE owned by a partnership)
or “FB of a U.S. person” (in the case of an FB owned by a U.S. Person Filing Form 8858
partnership).
Category 6 filer. A U.S. corporation (other than a RIC, a The U.S. person filing Form 8858 is any U.S. person that:
REIT, or an S corporation) that is a partner in a U.S. • Is the tax owner of an FDE,
partnership, which checked box 11 (Dual Consolidated Loss) • Owns a specified interest in an FDE indirectly or
on Schedules K-2 and K-3 (Form 1065). Even though the constructively through a CFC or a CFP (see items 2 and 3
U.S. corporation is not the tax owner of the FDE and/or the under Who Must File, earlier, for more detailed information),
FB, the U.S. corporation must complete lines 1 through 5 of or
the Form 8858, line 3 of Schedule G, and report its • Operates (directly or indirectly through a tier of FDEs) an
distributive share of the items on lines 10 through 13 of FB.
Schedule G for each FDE and FB of the U.S. partnership. As
stipulated in the Partnership Instructions for Schedules K-2 Throughout these instructions, when the pronouns “you”
and K-3 (Form 1065), the U.S. partnership must furnish to the and “your” are used, they are used in reference to the U.S.
U.S. corporate partner the information necessary for the person filing Form 8858.
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 An eligible entity uses Form 8832 to elect how it will be
category 4 or 5 filers of Form 5471 or category 1 filers of classified for federal tax purposes. A copy of Form 8832 is
Form 8865 who are also required to file Form 8858, one attached to the entity's federal tax return for the tax year of
person may file Form 8858 and Schedule M (Form 8858), if the election; however, special rules apply if the entity is not
applicable, for other persons who have the same filing required to file a tax return. For more information, see Where
requirements with respect to both Form 8858 and Form 5471 To File in the instructions for Form 8832.
or Form 8865. If you and one or more other persons are
required to furnish information for the same FDE or indirect Note. Rules, effective September 28, 2009, allow an eligible
FB for the same period, this information may be included with entity to request a late entity classification election. See Rev.
or attached to, and filed in the same manner as, the multiple Proc. 2009-41, available at IRS.gov/irb/
filer information provided with respect to the CFC or the CFP. 2009-39_IRB#RP-2009-41 , for more information.
See Multiple filers of same information in the Form 5471
instructions or Multiple Category 1 filers in the Form 8865 Tax Owner of FDE
instructions. The tax owner of the FDE is the person that is treated as
owning the assets and liabilities of the FDE for purposes of
When and Where To File U.S. income tax law.
Form 8858 is due when your income tax return or information
return is due, including extensions. If you are the tax owner of Direct Owner of FDE
the FDE or operate an FB, attach Form 8858 and the The direct owner of an FDE is the legal owner of the
separate Schedule M (Form 8858), if required, to your disregarded entity.
income tax return or information return. If you are not the tax
owner of the FDE or indirect FB, attach Form 8858 to any Example. Assume Avery, a U.S. individual, is a 60%
Form 5471 or Form 8865 you are filing with respect to the partner of a CFP. FDE 1 is a foreign disregarded entity owned
CFC or the CFP that is the tax owner of the FDE or operates by a CFP, and FDE 2 is a foreign disregarded entity owned by
the FB. FDE 1. In this example, FDE 1 is the direct owner of FDE 2,
and controlled foreign partnership is the direct owner of FDE
1. Controlled foreign partnership is the tax owner with respect

2 Instructions for Form 8858 (Rev. 12-2023)

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to both FDE 1 and FDE 2. Avery would be required to file the Criminal penalties. Criminal penalties under sections 7203,
Forms 8858 relating to FDE 1 and FDE 2 with the Form 8865 7206, and 7207 may apply for failure to file the information
it files with respect to CFP. required by section 6038.
Foreign Branch (FB) Note. Any person required to file Form 8858 and
An FB is defined in Regulations section 1.367(a)-6T(g). For Schedule M (Form 8858) who agrees to have another person
purposes of filing a Form 8858, an FB also includes a file the form and schedules for him or her may be subject to
qualified business unit (QBU) (as defined in Regulations the above penalties if the other person does not file a correct
section 1.989(a)-1(b)(2)(ii)) that is foreign. and proper form and schedule.
Example. Assume A, a domestic corporation, operates a
foreign branch, FB1, in country X and is the tax owner of a Other Reporting Requirements
foreign disregarded entity, FDE1, in country Y that also
operates a foreign branch, FB2, in country Z. In addition, A is Reporting Exchange Rates on Form 8858
the sole owner of controlled foreign corporation that operates When translating amounts from functional currency to U.S.
a foreign branch, FB3, in country Z. FB1, FB2, and FB3 dollars, you must use the method specified in these
qualify as foreign branches under Regulations section instructions. But, regardless of the specific method required,
1.367(a)-6T(g). all exchange rates must be reported using a “divide-by
A is the direct owner of the activities of FB1 and FDE1, convention” rounded to at least four places. That is, the
and an indirect owner of the activities of FB2, through its exchange rate must be reported in terms of the amount by
ownership of FDE1. which the functional currency amount must be divided in
order to reflect an equivalent amount of U.S. dollars. As such,
A would be required to file separate Forms 8858 relating to the exchange rate must be reported as the units of foreign
FB1, FDE1, and FB2, its indirect foreign branch through its currency that equal 1 U.S. dollar, rounded to at least four
ownership of FDE1. Unless indicated otherwise on the Form places. Do not report the exchange rate as the number of
8858 or in the instructions, the Form 8858 filed relating to U.S. dollars that equal 1 unit of foreign currency.
FDE1 would include only items attributable to FDE1 and
therefore would not include any items attributable to FB2. Note. You must round the result to more than four places, if
Similarly, unless indicated otherwise, the Form 8858 filed for failure to do so would materially distort the exchange rate or
FB2 would include only items attributable to FB2 and not to the equivalent amount of U.S. dollars.
FDE1.
Example. During its annual accounting period, an FDE
Controlled foreign corporation is the direct owner of the owned by a U.S. person had current income of 30,255,400
activities of FB3. Also, controlled foreign corporation is the Yen on Schedule H, line 6. The Schedule H, line 7,
tax owner with respect to the foreign branch activities of FB3. instructions specify that the filer must translate these
A would be required to file the Form 8858 relating to FB3 with amounts into U.S. dollars at the average exchange rate for
the Form 5471 it files with respect to controlled foreign the tax year in accordance with the rules of section 989(b).
corporation. The Form 5471 for controlled foreign corporation
would include any income or loss incurred by FB3. The average exchange rate is 105.7846 Japanese Yen to
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 Yen by 105.7846 to determine the U.S.
separate set of books and records, or lack thereof, may affect dollar amount to enter on line 7 of Schedule H. Enter
the determination of whether a trade or business activity 105.7846 on 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)
(Form 8858 and Schedule M (Form 8858)). Note. If you are filing Form 1120 or 1065 electronically, you
• A $10,000 penalty is imposed for each annual accounting must attach Form 8858 electronically (as an attachment to
period of each CFC or CFP for failure to furnish the required your electronically filed Form 1120, Form 1065, Form 5471,
information within the time prescribed. If the information is not or Form 8865). If you are filing Form 1040, Form 1040-SR, or
filed within 90 days after the IRS has mailed a notice of the Form 1041 electronically (with or without a Form 5471 or
failure to the U.S. person, an additional $10,000 penalty (per Form 8865), attach Form 8858 to the applicable Form 8453.
CFC or CFP) is charged for each 30-day period, or fraction
thereof, during which the failure continues after the 90-day Computer-Generated Form 8858 and Schedules
period has expired. The additional penalty is limited to a A computer-generated Form 8858 and its schedules may be
maximum of $50,000 for each failure. filed if they conform to and do not deviate from the official
• Any person who fails to file or report all of the information form and schedules. Generally, all computer-generated forms
required within the time prescribed will be subject to a must receive prior approval from the IRS and are subject to
reduction of 10% of the foreign taxes available for credit an annual review.
under sections 901 and 960. If the failure continues 90 days Submit all requests for approval to the Substitute Forms
or more after the date the IRS mails notice of the failure to the Program. Use the address in the current Pub. 1167, General
U.S. person, an additional 5% reduction is made for each Rules and Specifications for Substitute Forms and Schedules
3-month period, or fraction thereof, during which the failure at IRS.gov/Pub1167.
continues after the 90-day period has expired. See section
6038(c)(2) for limits on the amount of this penalty.

Instructions for Form 8858 (Rev. 12-2023) 3

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Important: Be sure to attach the approval letter to Form Name Change
8858. If the name of the person filing the return, the tax owner, the
Every year, the IRS issues a revenue procedure to provide direct owner, the FB, or the FDE whose activities are being
guidance for filers of computer-generated forms. In addition, reported changed within the past 3 years, show the prior
every year, the IRS issues Pub. 1167, which reprints the most name(s) in parentheses after the current name.
recent applicable revenue procedure. Pub. 1167 is available
at IRS.gov/Pub1167, or can be ordered by calling Addresses
800-TAX-FORM (800-829-3676). Use the following instructions to complete lines 1a, 2a, 2b,
3a, and 4a, and the entry spaces at the top of page 1 of the
Dormant FDEs form for the filer's address.
Announcement 2004-4, 2004-4 I.R.B. 357, available at U.S. addresses. Include the suite, room, or other unit
IRS.gov/irb/2004-04_IRB#2004-4, provides for a summary number after the street address. If the Post Office does not
filing procedure for filing Form 8858 for a dormant FDE. A deliver mail to the street address and the U.S. person has a
dormant FDE would be a dormant controlled foreign P.O. box, show the box number instead.
corporation if it were treated as a foreign corporation for U.S.
tax purposes. Foreign addresses. Enter the information in the following
order: city, province or state, and country. Follow the
If you elect the summary procedure, complete only the
country's practice for entering the postal code, if any. Do not
identifying information before Schedule C on page 1 of Form
abbreviate the country name. However, if you are filing Form
8858 for each dormant FDE as follows.
8858 electronically, enter a valid country code (from the list at
• The top margin of the summary return must be labeled
IRS.gov/CountryCodes) instead of the country name.
“Filed Pursuant to Announcement 2004-4 for Dormant FDE.”
• Include the name, address, identifying number, and tax Initial Form or Final Form 8858
year of the U.S. person filing Form 8858 (see U.S. Person,
earlier). Check the Initial Form 8858 box in the year the tax owner
• Include the annual accounting period of the dormant FDE formed or aquired the FDE or FB, and check the Final Form
(below the title of the form) and complete lines 1a through 1e, 8858 box in the year the tax owner terminated or disposed of
and 1g. the FDE or FB. Only one of these boxes can be checked on
• Complete lines 3a through 3d, if applicable. each Form 8858 filed. For example, if an FDE is formed or
• Complete lines 4a through 4c, if applicable. aquired, and terminated or disposed of, within the same tax
year (even if it was on the same day), you are required to file
File this summary return in the manner described in When a separate Form 8858 for each event.
and Where To File, earlier.
On one Form 8858, you would check the Initial 8858
checkbox to reflect the formation or acquisition of the FDE,
Specific Instructions and complete the rest of the form reporting information for the
period that the tax owner owns the FDE. On the other Form
Important: If the information required in a given section 8858, you would check the Final 8858 checkbox to reflect the
exceeds the space provided within that section, do not write termination or disposition of the FDE, and complete the rest
“see attached” in the section and then attach all of the of the form reporting information for the period that the tax
information on additional sheets. Instead, complete all entry owner owns the FDE.
spaces in the section and attach the remaining information
on additional sheets. The additional sheets must conform Identifying Numbers
with the IRS version of that section. Use the following instructions to complete lines 1b(1) 3c(1), ,
and 4c, and the entry space at the top of page 1 of the form
Identifying Information for the filer's identifying number. The identifying number of an
individual is his or her social security number (SSN). The
Annual Accounting Period identifying number of all others is their employer identification
Enter, in the space provided below the title of Form 8858, the number (EIN).
annual accounting period of the FDE or FB for which you are
furnishing information. The annual accounting period of an If a U.S. corporation is the U.S. person filing Form 8858
FDE or FB is the annual accounting period or tax year of the and is a member of a consolidated group, see Person Filing
tax owner. Therefore, in the case of a U.S. tax owner, the This Return, earlier.
annual accounting period of the FDE or FB is the tax year of Line 1b(1)—U.S. identifying number. Generally, you must
the U.S. tax owner; and in the case of a CFC or CFP that is a enter an EIN on line 1b(1). If you don’t have an EIN when you
tax owner, the annual accounting period of the FDE or FB is file Form 8858, you must enter a reference ID number on
the annual accounting period of the CFC or CFP. line 1b(2).
Foreign disregarded entity (FDE). An EIN is required for
Person Filing This Return an FDE to file Form 8832 to elect to be treated as an FDE.
In the spaces provided at the top of page 1 of Form 8858, The new EIN must be included on the Form 8858 filed by the
provide the identifying information for the U.S. person filing FDE for the first year in which it elects to be treated as an
Form 8858 (see U.S. Person, earlier). FDE, and the old reference ID number must be entered on
If a U.S. corporation is the U.S. person filing Form 8858 line 1b(2). In subsequent years, the FDE must enter the EIN
and is a member of a consolidated group, list the common on line 1b(1) of the Form 8858, but entering the old reference
parent as the person filing the return and enter its identifying ID number on line 1b(2) is optional.
information in the spaces provided at the top of page 1 of the
form.

4 Instructions for Form 8858 (Rev. 12-2023)

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Foreign branch (FB). An FB does not file Form 8832 and Note. This correlation requirement applies only to the first
thus may not be required to have an EIN. In that case, the FB year the new reference ID number is used.
must enter a reference ID number on line 1b(2).
Line 1g—Country in Which Principal Business
Note. Do not enter an SSN on line 1b(1) or 1b(2). Activity Is Conducted
Line 1b(2)—Reference ID number. A reference ID number Enter the two-letter country code (from the list at IRS.gov/
(defined below) is required on line 1b(2) only in cases where CountryCodes) of the country in which the principal business
no EIN was entered on line 1b(1) for the FDE or FB. However, activity of the FDE or FB is conducted.
filers are permitted to enter both an EIN on line 1b(1) and a
reference ID number on line 1b(2). If applicable, enter the Enter “US” if the principal business activity of an FDE is
reference ID number you have assigned to the FDE or FB conducted in the United States.
identified on line 1a.
Line 1h—Principal Business Activity
A "reference ID number" is a number established by the
Enter the 6-digit principal business activity code number for
U.S. person identified at the top of page 1 of the Form 8858
the FDE or FB followed by a brief description of the FDE's or
who is responsible for completing the Form 8858 for the FDE
FB's principal business activity. Principal business activity
or FB. The reference ID number must meet the requirements
code numbers can be found at the end of the Instructions for
set forth below.
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—Functional Currency
need to apply to the IRS to request a reference ID number or Enter the entity's three-letter functional currency code. This is
for permission to use these numbers. Reference ID numbers an Alphabet Code selected from ISO 4217, available at
must be used consistently from year to year to identify a ISO.org/iso-4217-currency-codes.html or CURRENCY-
specific FB or FDE. ISO.org/en/home/tables/table-a1.html. See sections 985 and
Requirements. The reference ID number that is entered 989, and Regulations sections 1.985-1(a) through (c) and
on line 1b(2) must be alphanumeric (defined below) and no 1.989(a)-1(b) for rules for determining the functional currency
special characters or spaces are permitted. The length of a of a QBU and the definition of a QBU.
given reference ID number is limited to 50 characters.
Hyperinflationary exception. An entity that would
For these purposes, the term "alphanumeric" means the otherwise be required to use a hyperinflationary currency as
entry can be alphabetical, numeric, or any combination of the its functional currency must use the U.S. dollar as its
two. functional currency and figure income or loss or earnings and
The same reference ID number must be used consistently profits using the U.S. dollar approximate separate
from tax year to tax year with respect to a given FDE, FB, or transactions method of accounting (DASTM) under the
tax owner. If for any reason a reference ID number falls out of special rules of Regulations section 1.985-3. However, if the
use (for example, the FDE, FB, or tax owner no longer exists hyperinflationary QBU is an FDE or FB of a foreign
due to disposition or liquidation), the reference ID number corporation with a non-U.S. dollar functional currency that is
used for that FDE, FB, or tax owner cannot be used again for not hyperinflationary, the functional currency of the FDE or
another FDE, FB, or tax owner for purposes of Form 8858 FB is the functional currency of the foreign corporation and
reporting. such QBU applies Regulations section 1.985-3 by
There are some situations that warrant correlation of a substituting the functional currency of the foreign corporation
new reference ID number with a previous reference ID for the U.S. dollar. See Regulations section 1.985-1(b)(2).
number when assigning a new reference ID number to an
FDE, FB, or tax owner partnership. For example: Line 3
• In the case of a merger or acquisition, a Form 8858 filer If the tax owner of the FDE or FB is different from the filer,
must use a reference ID number which correlates the then provide the information required on lines 3a through 3e
previous reference ID number with the new reference ID for the tax owner.
number assigned to the FDE, FB, or tax owner; or
• Under Regulations section 301.6109-1(b)(2)(v), a foreign Line 3b
entity that makes an entity classification election on Form If the tax owner is a CFC, enter the annual accounting period
8832 to become an FDE must have an EIN. For the first year covered by Form 5471 (as described in Regulations section
that Form 8858 is required to be filed after an entity 1.6038-2(e)). If the tax owner is a CFP, enter the annual
classification election is made on behalf of the foreign entity accounting period covered by Form 8865 (as described in
on Form 8832, the new EIN must be entered on line 1b(1) of Regulations section 1.6038-3(f)).
Form 8858 and the old reference ID number must be entered
on line 1b(2) of Form 8858. In subsequent years, a filer may Line 3c(1)—U.S. Identifying Number
continue to enter both the EIN on line 1b(1) and the reference To complete line 3c(1), see Line 1b(1)—U.S. identifying
ID number on line 1b(2), but must enter at least the EIN on number, earlier. If the tax owner does not have an EIN when
line 1b(1). Form 8858 is filed, a reference ID number must be entered
You must correlate the reference ID numbers as follows: on line 3c(2). See the instructions for line 3c(2), later.
New reference ID number (space) Old reference ID number.
If there is more than one old reference ID number, you must Note. If the tax owner is an individual, enter an SSN on
enter a space between each such number. As indicated line 3c(1) or line 3c(2).
above, the length of a given reference ID number is limited to
50 characters and each number must be alphanumeric and
no special characters are permitted.

Instructions for Form 8858 (Rev. 12-2023) 5

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Line 3c(2)—Reference ID Number Schedule C
A reference ID number (defined earlier, under the instructions Use Schedule C to report a summary income statement for
for line 1b(2)) is required on line 3c(2) only in cases where no the FDE or FB figured in the FDE’s or FB’s functional
EIN was entered on line 3c(1). However, filers are permitted currency in accordance with U.S. generally accepted
to enter both an EIN on line 3c(1) and a reference ID number accounting principles (GAAP). Enter in the U.S. dollar column
on line 3c(2). If this tax owner is a CFC, enter the reference ID each line item functional currency amount translated into
number for the CFC from Form 5471, item 1b(2). If this tax dollars using U.S. GAAP translation rules. If the FDE or FB
owner is a CFP, enter the reference ID number for the CFP does not maintain U.S. GAAP income statements in U.S.
from Form 8865, item G2(b). See the instructions for dollars, you can use the average exchange rate as
line 1b(2) for more information about the requirements for the determined under section 989(b). The rate used should be
reference ID number. the rate stated on Schedule H, line 8. If you choose to use the
average exchange rate rather than the U.S. GAAP translation
Note. If this tax owner is a CFC and Schedule A (Form 8992) rules, check the box above line 1 on Schedule C.
or Schedule B (Form 8992) is required to be filed with respect
to that CFC, the reference ID number entered on line 3c(2) Special rules for DASTM. If the FDE or FB uses DASTM,
must be the same as the reference ID number entered on the functional currency column should reflect local
Form 5471, item 1b(2), and Schedule A (Form 8992), column hyperinflationary currency amounts figured in accordance
(b), or Schedule B (Form 8992), Part I, column (b). with U.S. GAAP. The U.S. dollar column should reflect such
amounts translated into dollars under U.S. GAAP translation
Line 3e rules. Differences between this U.S. dollar GAAP column and
See Line 1i—Functional Currency, earlier. the U.S. dollar income or loss figured for tax purposes under
Regulations section 1.985-3(c) should be accounted for on
Line 4 Schedule H. See Special rules for DASTM under
If the direct owner of the FDE or FB is different from the tax Schedule H, later.
owner, then provide the information required on lines 4a Line 12. 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. Include on line 13 adjustments for extraordinary
owner. items or prior period adjustments. The terms “extraordinary
items” and “prior period adjustments” have the same
Line 4c—U.S. Identifying Number meaning given to them by U.S. GAAP (see Subtopic 225-20,
Income Statement and Statement No. 16 of the Financial
To complete line 4c, see Line 1b(1)—U.S. identifying number, Accounting Standards Board).
earlier. If the direct owner does not have an EIN when Form
8858 is filed, leave this line blank. Important: Differences between this functional currency
amount and the amount of taxes that reduce earnings and
Note. If the direct owner is an individual, enter an SSN on profits (E&P) (in the case of an FDE or FB of a CFC) or are
line 4c. deductible in figuring U.S. taxable income (in the case of an
FDE or FB of a U.S. person or a CFP) should be accounted
Line 4d
for on line 2 or 3 of Schedule H.
See Line 1i—Functional Currency, earlier.
Schedule C-1
Line 5 The activities of an FDE or FB may give rise to one or more
You must attach an organizational chart that includes the QBUs. If the QBU has a different functional currency than its
following information with respect to the chain of ownership owner, then such owner may be subject to section 987.
between the tax owner and the FDE or FB and the chain of
ownership between the FDE or FB and all entities in which If an owner would be treated as owning multiple QBUs,
the FDE or FB has a 10% or more direct or indirect interest. complete a separate Schedule C-1 with respect to each QBU
of the owner.
• The name and percentage of ownership of all entities in
the chain of ownership, including partnerships and entities If a QBU has multiple owners, complete a separate
disregarded as separate from their owners. Schedule C-1 for each owner.
• The FDE’s or FB’s position in the chain of ownership.
• The tax classification of all entities in the chain of However, if the U.S. person filing Form 8858 knows that
ownership (see the Form 8832 instructions for tax the owner of a QBU has the same functional currency as a
classification rules and related definitions). QBU owned by that person, the U.S. person filing Form 8858
• The country under whose law each entity is organized. is not required to complete Schedule C-1 with respect to that
For these purposes, the rules of section 958(a) (relating to owner’s interest in the QBU.
“direct and indirect ownership”) apply. If the U.S. person filing Form 8858 does not know and
Each filer of Form 8858 that is required to file an does not have reason to know the functional currency of the
organizational chart with respect to more than one FDE owner of a QBU, leave column (b) of lines 1 and 2 blank.
and/or FB may satisfy this requirement by filing a single
organizational chart that includes the required information Line 2b
with respect to all FDEs and FBs. Report on line 2b the amount of section 987 gain or loss
recognized by the recipient owner that results from a
remittance from a QBU or a termination of a QBU.

6 Instructions for Form 8858 (Rev. 12-2023)

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For amounts reported on line 2b of Schedule C-1, include with respect to any base erosion payment. See section
a statement with the following information. 59A(c)(2).
• 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
If an amount is included on line 3b, include a statement benefit, from a foreign person which is a related party of the
that provides the following information for each deferral event FB or FDE. Otherwise, check “No.”
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
Enter the total amount of base erosion tax benefit recognized
an adjustment to stock basis and the name of the CFC that
by the payor relating to base erosion payments reported on
had an adjustment to its basis from the outbound loss event.
line 6b. Also include on line 6c 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 of) any base erosion tax payment, or had a base erosion tax
benefit, to a foreign person which is a related party of the FB
Use Schedule F to report a summary balance sheet for the or 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, Line 8b
Schedule F should be prepared and translated into U.S.
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.

Schedule G Line 8c
Enter the total amount of base erosion tax benefit relating to
Line 3 base erosion payments reported on line 8b. Also include on
If the tax owner of the FDE is claiming a section 165 loss with line 8c any base erosion tax benefit taken into account in the
respect to worthless stock or with respect to certain current year from a base erosion payment in a previous year,
obligations, see Regulations section 1.6011-4 for information for example, depreciation described in section 59A(c)(2)(A)
relating to a disclosure statement that must be attached to (ii).
Form 8858 if certain requirements are met.
Line 9
Line 6 Answer line 9 only if the tax owner of the FB or FDE is a CFC.
Check “Yes” if the FB or FDE is a QBU as defined in section Otherwise, skip to line 10.
989(a). If the QBU is subject to section 987, see
Schedule C-1. Lines 10 Through 13
Complete lines 10 through 13 only if the tax owner of the FB,
Lines 7 and 8 or the tax owner of the interest in the FDE, is a U.S.
Note. Do not complete lines 7 and 8 if you are an individual corporation (other than a RIC, a REIT, or an S corporation).
who owns an FB or FDE directly or through tiers of FBs and Otherwise, continue to Schedule H.
FDEs. An FB or interest in an FDE of a U.S. corporation may be
A base erosion payment, in general, means any amount treated as a separate unit and subject to dual consolidated
paid or accrued by an “applicable taxpayer” (as defined by loss (DCL) rules pursuant to Regulations sections
section 59A(e)) to a foreign person which is a related party of 1.1503(d)-1 through 1.1503(d)-8.
the taxpayer and with respect to which a deduction is
allowable under chapter 1 of the Code. See section 59A(d). Line 10a
A base erosion tax benefit, in general, means any Check “Yes” if the FB or FDE is a separate unit under
deduction which is allowed under chapter 1 for the tax year Regulations section 1.1503(d)-1(b)(4), is not part of a

Instructions for Form 8858 (Rev. 12-2023) 7

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combined separate unit under Regulations section                   the year of the DCL (limited by the amount of the separate 
1.1503(d)-1(b)(4)(ii), and has a DCL for the tax year. If you      unit’s prior contribution to the cumulative consolidated 
checked “Yes” on line 10a, enter the amount of the DCL on          taxable income of the group (“cumulative register”)). See 
line 10b.                                                          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.
                                                                     Check “No” on line 12d if the DCL was not used to figure 
Line 11c                                                           consolidated taxable income or the separate unit’s 
If you checked “Yes” on line 11a, enter the net income or loss     cumulative register as of the beginning of the tax year is less 
attributed to the FB or the interest in the FDE. See               than or equal to zero. In such case, the DCL is treated as a 
Regulations section 1.1503(d)-5(c)(4)(ii)(A).                      loss carryover subject to the SRLY provisions of Regulations 
                                                                   section 1.1502-21(c), as modified by Regulations section 
Line 12a                                                           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             If the answer to line 12d is “Yes,” enter the separate unit’s 
computation of the taxable income of a consolidated group,         contribution to the cumulative consolidated taxable income 
unaffiliated dual resident corporation, or unaffiliated domestic   as of the beginning of the tax year.
owner, as applicable. See Regulations section 1.1503(d)-2.
  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 
1.1503(d)-6 for exceptions. For example, a domestic use            citation for the triggering event, and a schedule of the prior 
election made pursuant to Regulations section                      year(s) DCL(s) being recaptured by year.
1.1503(d)-6(d) is such an exception.
                                                                     Check “No” if, with regard to each such prior year DCL, 
  If you check “Yes,” you may need to include a domestic           one of the following is applicable.
use election with your U.S. income tax return. If the answer to    • No triggering event occurred in the current tax year.
line 12b is “Yes,” go to line 12c. If the answer to line 12b is    • A triggering event occurred in the current tax year, 
“No,” skip line 12c and go to line 12d.                            however, a “Rebuttal to Triggering Event” is attached to the 
                                                                   return pursuant to Regulations section 1.1503(d)-6(e)(2).
Line 12c                                                           • A triggering event occurred in the current tax year, 
If you checked “Yes” on line 12b, the regulations require that     however, the amount of the recapture was reduced to zero 
you file documentation for an exception to apply. Check “Yes”      pursuant to Regulations section 1.1503(d)-6(h)(2) and a 
on line 12c if you have attached any of the following              “Reduction of Recapture Amount” is attached to the return.
documents to your timely filed return.
• The document(s) required to be filed under an elective           Note. If there is a partial reduction of the recapture amount 
agreement between the United States and a foreign country;         pursuant to Regulations section 1.1503(d)-6(h)(2) and a 
see Regulations section 1.1503(d)-6(b)(1).                         recapture amount is required to be included in income, check 
• “No Possibility of Foreign Use of Dual Consolidated Loss         “Yes,” enter the reduced amount of the DCL recapture 
Statement”; see Regulations section 1.1503(d)-6(c).                included in income, and attach the “Reduction of Recapture 
• “Domestic Use Election and Agreement”; see Regulations           Amount” to the return.
section 1.1503(d)-6(d)(1).
                                                                   Schedule H
Line 12d                                                           Use Schedule H to report the FDE's current E&P or the FB’s 
If a separate unit, as defined under Regulations section           income (if the tax owner is a CFC) or the FDE’s or FB’s 
1.1503(d)-1(b)(4), incurs a DCL after having contributed to        taxable income (if the tax owner is a U.S. person or a CFP). 
consolidated taxable income of a group in prior years, the         Generally, enter the amounts on lines 1 through 6 in 
DCL may be used to offset income of domestic affiliates in         functional currency.

8                                                                              Instructions for Form 8858 (Rev. 12-2023)

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Special rules for DASTM. If the FDE or FB uses DASTM, Line 1
enter on line 1 the U.S. dollar GAAP income or loss from Check “Yes” if any assets of an FB (or a branch that is an
line 14 of Schedule C. Enter on lines 2 and 3 the adjustments FDE) were transferred to a foreign corporation during the tax
made in figuring current E&P or taxable income for U.S. tax year. If “Yes,” continue to line 2; otherwise, check “No” and do
purposes. Report these amounts in U.S. dollars. Enter on not complete the rest of Schedule I.
line 5 the DASTM gain or loss figured under Regulations
section 1.985-3(d). Line 2
Check “Yes” if the transferor was a domestic corporation that
Lines 2 and 3 transferred substantially all of the assets of an FB (or a
Certain adjustments must be made to the FDE’s or FB’s branch that is an FDE) to a specified 10%-owned foreign
line 1 net book income or loss to determine its current E&P or corporation. A specified 10%-owned foreign corporation is
taxable income. The adjustments may include those needed defined in section 245A(b)(1) as any foreign corporation with
to conform the foreign book income to U.S. GAAP and to U.S. respect to which any domestic corporation is a U.S.
tax accounting principles. If the FDE’s or FB’s books are shareholder with respect to such corporation. If “Yes,”
maintained in functional currency in accordance with U.S. continue to line 3.
GAAP, enter on line 1 the functional currency GAAP income
or loss from line 14 of Schedule C, rather than starting with Line 3
foreign book income, and show GAAP-to-tax adjustments on Check “Yes” if the transferor was a domestic corporation and
lines 2 and 3. immediately after the transfer the domestic corporation was a
The adjustments may include the following. U.S. shareholder (10% or more shareholder) with respect to
• Capital gains and losses. the transferee foreign corporation. If “Yes,” continue to line 4;
• Depreciation, amortization, and depletion. otherwise, stop.
• Investment or incentive allowance.
• Charges to statutory reserves. Line 4
• Inventory adjustments. Inventories must be taken into Under section 91, the U.S. transferor must include in gross
account according to the rules of sections 471 (incorporating income an amount equal to the transferred loss amount
the provisions of section 263A) and 472 and the related (TLA), if any, as defined in section 91(b) upon a transfer of
regulations. substantially all of the assets of an FB (including an FB that is
• Taxes. See the instructions for Schedule C, line 13, earlier. an FDE) to a foreign corporation. The TLA is the sum of
losses incurred by the FDE or FB after 2017, and before the
Attach a separate schedule that lists each applicable transfer and with respect to which a deduction was allowed to
adjustment item. For each adjustment item, indicate the the U.S. transferor reduced by the sum of:
adjustment amount and whether the amount is a net addition
or net subtraction. The separate schedule should also show 1. Any taxable income of such branch for a tax year after
two totals, the total net additions amount to be entered on the tax year in which the loss was incurred and through the
line 2, and the total net subtractions amount to be entered on close of the tax year of the transfer, and
line 3. 2. Any amount recognized under section 904(f)(3)
resulting from the transfer.
Line 5
Also, see section 14102(d)(4) of the Tax Cuts and Jobs Act
DASTM gain or loss, reflecting unrealized exchange gain or (TCJA) for the transition rule of section 91.
loss, should be entered on line 5 only for FDEs or FBs that
use DASTM. The TLA amount may be reduced (but not below zero) by
the amount of gain recognized on account of the transfer,
Line 7 other than the amounts recognized under section 904(f)(3), if
Enter on line 7 the functional currency amount translated into any. Enter the amount of the TLA included in gross income as
U.S. dollars at the average exchange rate for the FDE’s or a positive number on line 4.
FB’s tax year. See section 989(b). Report the exchange rate
using the “divide-by convention” specified under Reporting If the amount is equal to or less than zero, enter zero and
Exchange Rates on Form 8858, earlier. If the FDE or FB uses no TLA is required to be recognized by the U.S. transferor on
DASTM, enter on line 7 the same amount entered on line 6. the transfer under section 91. If the amount is greater than
zero, enter the TLA on line 4 and report this amount as other
Blocked income. The E&P or taxable income of the FDE or income on the applicable Form 1120 (for Form 1120 filers,
FB, as reflected on Schedule H, must not be reduced by all or page 1, line 10, Other income) and identify the amount as
any part of such E&P or taxable income that could not have “Section 91 Transferred Loss Amount.” In addition, attach a
been distributed by the FDE or FB due to currency or other “Schedule I—Transferred Loss Amount Additional
restrictions or limitations imposed under the laws of any Information” statement to the Form 8858 and provide the
foreign country. following information.
Schedule I • A detailed calculation of the transferred loss amount
reflecting amounts of the losses generated by such foreign
Important: Schedule I should be completed if the FB or FDE branch after 2017 by year, and any income amounts by year
is owned: generated after such loss year.
• Directly by a domestic corporation, or • The amount, if any, recognized under section 904(f)(3) on
• Indirectly by a domestic corporation through a tiered account of the transfer.
structure of FDEs or FBs. • A detailed summary of the gain recognized (other than
Schedule I should not be completed if the FB or FDE is section 91) by the transferor, including any section 367(a)(1)
owned by a CFC. gain on the transfer of property.

Instructions for Form 8858 (Rev. 12-2023) 9

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•  A calculation of the net sum of the previously deducted          4. The foreign entity reports on the cash basis. See 
losses incurred by such foreign branch for tax years prior to     section 986(a).
January 1, 2018, that would have been recaptured under              5. The foreign income taxes are denominated in a foreign 
section 367(a)(3)(C), as determined without regards to the        currency that is an inflationary currency.
repeal of the section 367(a)(3) active trade or business 
exception by section 14102 of the TCJA.                             Enter the exchange rate used in column (d). Report the 
                                                                  exchange rate using the “divide-by convention” specified 
Schedule J                                                        under Reporting Exchange Rates on Form 8858, earlier. 
List income, war profits, and excess profits taxes (“income       Enter the translated U.S. dollar amount in column (e).
taxes”) paid or accrued to the United States and to each          Columns (f) through (i). Enter the amount by separate 
foreign country or U.S. possession for the foreign entity’s       category of income in columns (f) through (i).
foreign tax year(s) that end with or within its U.S. tax year, or 
in the case of income taxes paid or accrued by a CFC or CFP,        Example. Form 8858 is filed for calendar year 2023. A 
with or within its annual accounting period. Do not report        CFC, which has a calendar year as its annual accounting 
taxes that are not creditable, including taxes for which a        period, owns FDEs in countries AA and BB. The FDE in 
credit is disallowed under section 901(j), (k), (l), or (m).      country AA pays or accrues income tax of 10u = $10 to 
                                                                  country AA with respect to its foreign tax year ending 
   Except as provided below, adjustments to foreign income        November 30, 2023. The FDE in country BB pays or accrues 
taxes paid or accrued in a prior year should not be reflected     income tax of 20v = $30 to country BB with respect to its 
on the Form 8858 in the year of adjustment. Instead, they are     foreign tax year ending March 31, 2023. In addition, in 2023, 
reported in the year to which such taxes relate. This may         the CFC received a refund of 3u or $5 with respect to the 
require an amended return. See section 905(c), as amended         entity it owns in country AA for foreign tax year ending 
by the TCJA. Adjustments include, for example, additional         November 30, 2022, which had an original liability of 21u or 
payments, refunds, and downward adjustments for accrued           $35. All taxes are allocated to the general category. The 
foreign taxes that are not paid within 24 months after the        following entries should be made on Schedule J of the Form 
close of the tax year to which such taxes relate. For more        8858 filed for calendar year 2023.
information, see Regulations section 1.905-3.
                                                                    Line 1
Exception. With respect to entities owned directly by a U.S.      • column (a): Country code AA
person, certain de minimis adjustments may be taken into          • column (b): 2023-11-30
account in the year of such adjustment. See Regulations           • column (c): 10u
section 1.905-3(b)(1).                                            • column (d): 1.0000
Column (a). Enter the two-letter country code (from the list      • column (e): $10
at IRS.gov/CountryCodes) of all foreign countries and U.S.        • column (h): $10
possessions within which income is sourced and/or to which          Line 2
taxes were paid, accrued, or deemed paid.                         • column (a): Country code BB
Column (b). Enter the foreign tax year (YYYY-MM-DD) of            • column (b): 2023-03-31
the foreign entity to which the tax relates.                      • column (c): 20v
                                                                  • column (d): 0.6666
Columns (c) through (e). Report foreign income taxes in           • column (e): $30
column (c) in the local currency in which the taxes are           • column (h): $30
payable. Translate these amounts into U.S. dollars (column          See the filled-in example of Schedule J, later.
(e)) at the average exchange rate for the tax year to which the 
tax relates (column (d)) unless one of the exceptions below         2022 refund. The refund from tax year 2022 is not 
applies. See section 986(a).                                      reported on the 2023 Form 8858. The following entries 
  Exceptions. If one of the following exceptions applies, use     should be made on Schedule J of the amended Form 8858 
the exchange rate in effect on the date the foreign entity paid   filed for the calendar year 2022.
the tax.                                                          • column (a): Country code AA
   1. The tax is paid before the beginning of the year to         • column (b): 2022-11-30
which the tax relates.                                            • column (c): 18u
                                                                  • column (d): 0.6000
   2. Accrued taxes are not paid before the date 2 years          • column (e): $30
after the close of the tax year to which such taxes relate.       • column (h): $30
   3. There is an election in effect under section 986(a)(1)
(D) to translate foreign taxes using the exchange rate in effect 
on the date of payment.

10                                                                                 Instructions for Form 8858 (Rev. 12-2023)

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Example—Filled-in Schedule J for Calendar Year 2023
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 U.S. Dollar Foreign Passive General Other
Possession (YYYY-MM-DD) Rate Branch
AA 2023-11-30 10u 1.0000 10 10
BB 2023-03-31 20v 0.6666 30 30

Totals 40 40

For additional instructions on the reporting of foreign taxes FDE or FB for which the tax owner is a CFP, check the box for
for entities filing a Form 8858 that are owned by a foreign CFPs and complete lines 1 through 21 using the headings in
corporation, see the instructions for Form 5471, Schedule E. columns (a) through (e) of the CFP set of columns. If you are
completing Schedule M (Form 8858) for an FDE or FB for
For purposes of column (i), enter foreign income taxes which the tax owner is a CFC, check the box for CFCs and
allocated and apportioned to a separate category of income complete lines 1 through 21 using the headings in columns
not otherwise listed in column (f), (g), or (h). Identify the taxes (a) through (f) of the CFC set of columns. If you are
with respect to each separate category of income. For completing Schedule M (Form 8858) for an FDE or FB for
example, if a foreign entity pays taxes to Country A that are which the tax owner is a U.S. person, check the box for U.S.
allocated and apportioned to two separate categories of Tax Owner and complete lines 1 through 21 using the
income, report the taxes allocated and apportioned to the headings in columns (a) through (e) of the U.S. Tax Owner
first separate category on one line and the taxes allocated set of columns.
and apportioned to the other separate category on another
line. For purposes of determining the applicable categories of Column (e). For CFP- or CFC-owned FDEs or FBs, use
income, see Categories of Income in the Instructions for column (e) to report transactions between the FDE or FB and
Form 1118 or in the Instructions for Form 1116, as applicable. any U.S. person with a 10% or more direct interest in the CFP
or any 10% or more U.S. shareholder of any corporation
Schedule M (Form 8858) controlling the CFC. If you are a category 1 filer of Form
Important: In translating the amounts from functional 8865, or a category 4 filer of Form 5471, do not report
currency to U.S. dollars, use the average exchange rate for transactions between yourself and the FDE or FB under
the FDE’s or FB’s tax year. See section 989(b). Report the column (e). Report the transactions only under column (b).
exchange rate in the entry space provided at the top of U.S. tax owner. The following instructions for columns (b)
Schedule M (Form 8858) using the “divide-by convention” through (e) apply only to an FDE or FB with a U.S. tax owner.
specified under Reporting Exchange Rates on Form 8858, Column (b). Use column (b) to report transactions
earlier. between the FDE or FB with the U.S. person filing this return
A Schedule M (Form 8858) must be filed with each Form only if the U.S. person filing this return is other than the tax
8858 if the FDE or FB entered into any transaction with the owner of the FDE or FB. If the U.S. person filing this return is
filer of the Form 8858 or other related entities during the the tax owner of the FDE or FB, do not enter any amounts in
annual accounting period of the FDE or FB. column (b).
Every U.S. person that is required to file Schedule M Column (c). Use column (c) to report transactions
(Form 8858) (see Who Must File, earlier) must file the between the FDE or FB with any domestic corporation or
schedule to report the transactions that occurred during the partnership controlled by the filer. Do not include any
FDE’s or FB’s annual accounting period ending with or within transactions between the FDE or FB with its direct U.S. tax
the U.S. person's tax year. owner that are treated as disregarded for U.S. tax purposes
in column (c).
If a U.S. corporation is the U.S. person filing Schedule M Column (d). Use column (d) to report transactions
(Form 8858) and is a member of a consolidated group, list between the FDE or FB with any foreign corporation
the common parent as the U.S. person filing Schedule M (including its FBs or FDEs) controlling or controlled by the
(Form 8858). filer. This will include any transactions between the FDE or
Reference ID number. A reference ID number for the FDE FB with any foreign corporation (including its FBs or FDEs)
or FB identified on Schedule M (Form 8858) is required if no controlling or controlled by the FDE’s or FB’s U.S. tax owner,
EIN is provided. However, filers are permitted to provide both if the U.S. tax owner of the FDE or FB is not the U.S. person
an EIN and reference ID number. For more information on the filing the return.
reference ID number, see Line 1b(2)—Reference ID number, Column (e). Use column (e) to report transactions
earlier. between the FDE or FB with any foreign (including hybrid)
partnerships (including its FBs or FDEs) controlling or
Column headings. There are three sets of column controlled by the filer. This will include any transactions
headings above lines 1 through 21. The first set of column between the FDE or FB with any foreign (including hybrid)
headings is to be used in cases where the tax owner is a partnership (including its FBs or FDEs) controlling or
CFP. The second set of column headings is to be used in controlled by the FDE’s or FB’s U.S. tax owner, if the U.S. tax
cases where the tax owner is a CFC. The third set of column owner of the FDE or FB is not the U.S. person filing the
headings is to be used in cases where the tax owner is a U.S. return.
person. If you are completing Schedule M (Form 8858) for an

Instructions for Form 8858 (Rev. 12-2023) 11

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Line 6. Report on line 6 dividends received by the FDE that   parties described in columns (b) through (f). Do not enter 
were not previously taxed under subpart F in the current year aggregate cash flows, year-end loan balances, average 
or in any prior year.                                         balances, or net balances. Do not include open account 
                                                              balances resulting from sales and purchases reported under 
Lines 20 and 21.   Report on lines 20 and 21 the largest      other items listed on Schedule M (Form 8858) that arise and 
outstanding balances during the year of gross amounts         are collected in full in the ordinary course of business.
borrowed from, and gross amounts loaned to, the related 

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. 12-2023)

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