PDF document

- 1 -

                              Userid: CPM                       Schema:        Leadpct: 100% Pt. size: 10       Draft    Ok to Print
                                                                instrx
AH XSL/XML                    Fileid: … ions/i8865/2023/a/xml/cycle03/source                              (Init. & Date) _______

Page 1 of 30                                                                                                   10:56 - 5-Jan-2024

The type and rule above prints on all proofs including departmental reproduction proofs. MUST be removed before printing.

                                                                                                          Department of the Treasury
                                                                                                          Internal Revenue Service
2023

Instructions for Form 8865

Return of U.S. Persons With Respect to Certain Foreign Partnerships

Section references are to the Internal Revenue Code                            What’s New
unless otherwise noted.
                                                                               See What’s New in the Instructions for Form 1065 for 
Contents                                                                  Page changes and new Internal Revenue Code sections that 
General Instructions      . . . . . . . . . . . . . . . . . . . . . . . . . 1  may affect foreign partnerships with fiscal years, corporate 
Specific Instructions     . . . . . . . . . . . . . . . . . . . . . . . . . 7  partners, or certain impacted activities.
Schedule A. Constructive Ownership of 
Partnership Interest          . . . . . . . . . . . . . . . . . . . . . .   11 Reminders
Schedule A-1. Certain Partners of Foreign                                      Schedules K-2 (Form 8865) and K-3 (Form 8865) for 
Partnership         . . . . . . . . . . . . . . . . . . . . . . . . . . .   11 partnerships. For tax years beginning after 2020, most 
                                                                               items of international tax relevance are reported on 
Schedule A-2. Foreign Partners of Section 721(c) 
                                                                               Schedules K-2 and K-3, replacing prior reporting on Form 
Partnership         . . . . . . . . . . . . . . . . . . . . . . . . . . .   11
                                                                               8865, Schedules K and K-1, line 16, Foreign transactions, 
Schedule A-3. Affiliation Schedule . . . . . . . . . . . . . .              12 and certain reporting on Form 8865, Schedules K and 
Schedule B. Income Statement—Trade or                                          K-1, line 20, Other information.
Business Income             . . . . . . . . . . . . . . . . . . . . . . .   12
Schedule D. Capital Gains and Losses . . . . . . . . . . .                  12 The schedules are designed to provide greater clarity 
                                                                               for partners on how to compute their U.S. income tax 
Schedule G (Form 8865). Statement of Application                               liability regarding items of international tax relevance, 
of the Gain Deferral Method Under Section 
                                                                               including claiming deductions and credits. Go to IRS.gov 
721(c)      . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .   12
                                                                               for the schedules and the Instructions for Schedules K-2 
Schedule H (Form 8865). Acceleration Events and                                and K-3 (Form 8865) for more information. Form 8865, 
Exceptions Reporting Relating to Gain Deferral                                 Schedules K and K-1, retain line 16 for the partnership to 
Method Under Section 721(c)                   . . . . . . . . . . . . . .   14 check a box indicating that it has items of international tax 
Schedules K, Partners' Distributive Share Items,                               relevance and that it completed Schedules K-2 and K-3. 
and K-1 (Form 8865), Partner’s Share of                                        For purposes of basis adjustments and to reconcile 
Income, Deductions, Credits, etc.                 . . . . . . . . . . . .   16 income, Form 8865 retains total foreign taxes paid or 
Schedules K-2 (Form 8865), Partners’ Distributive                              accrued but moves this reporting to Schedule K, line 21. 
Share Items—International, and K-3 (Form                                       See the Instructions for Form 1065 for amounts to report 
8865), Partner’s Share of Income, Deductions,                                  on line 21.
Credits, etc.—International               . . . . . . . . . . . . . . . .   18
                                                                               Important: Foreign taxes paid or accrued must be 
Schedule L. Balance Sheets per Books                  . . . . . . . . . .   18 reported on Schedules K-2 and K-3 for purposes of 
Schedule M-1. Reconciliation of Income (Loss) per                              reporting information necessary for an eligible partner to 
Books With Income (Loss) per Return                       . . . . . . . .   18 claim a foreign tax credit.
Schedule M-2. Analysis of Partners' Capital 
Accounts . . . . . . . . . . . . . . . . . . . . . . . . . . . . .          18 General Instructions
Schedule N. Transactions Between Controlled                                    Only the general instructions for Schedules B, K, K-1, 
Foreign Partnership and Partners or Other                                      M-1, and M-2 are included later in these instructions. If 
Related Entities          . . . . . . . . . . . . . . . . . . . . . . . .   18 you are required to complete these schedules for Form 
Schedule O (Form 8865). Transfer of Property to a                              8865, use the specific instructions for the corresponding 
Foreign Partnership             . . . . . . . . . . . . . . . . . . . . .   19 schedules of Form 1065, U.S. Return of Partnership 
Schedule P (Form 8865). Acquisitions,                                          Income.
Dispositions, and Changes of Interests in a 
Foreign Partnership             . . . . . . . . . . . . . . . . . . . . .   20 IF you are completing Form THEN use the instructions for 
List of Codes   . . . . . . . . . . . . . . . . . . . . . . . . . . . . .   22 8865...                    Form 1065...
Index . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30 Schedule B                 page 1 (income and deductions).
                                                                               Schedules K and K-1        Schedules K and K-1.
Future Developments
For the latest information about developments related to                       Schedule K-3               Schedule K-3.
Form 8865, its schedules, and its instructions, such as                        Schedule L                 Schedule L.
legislation enacted after they were published, go to                           Schedule M-1               Schedule M-1.
IRS.gov/Form8865.
                                                                               Schedule M-2               Schedule M-2.

Nov 27, 2023                                                            Cat. No. 26053N

- 2 -

Page 2 of 30        Fileid: … ions/i8865/2023/a/xml/cycle03/source 10:56 - 5-Jan-2024

The type and rule above prints on all proofs including departmental reproduction proofs. MUST be removed before printing.

Note. If you are reporting capital gains and losses, use 
Schedule D (Form 1065). See the Instructions for 
Schedule D (Form 1065).

Purpose of Form
Use Form 8865 to report the information required under 
section 6038 (reporting with respect to controlled foreign 
partnerships), section 6038B (reporting of transfers to 
foreign partnerships), or section 6046A (reporting of 
acquisitions, dispositions, and changes in foreign 
partnership interests).

Who Must File
A U.S. person qualifying under one or more of the 
Categories of Filers (see below) must complete and file 
Form 8865. These instructions and the Filing 
Requirements for Categories of Filers chart, later, explain 
the information, statements, and schedules required for 
each category of filer. If you qualify under more than one 
category for a particular foreign partnership, you must 
submit all the items required for each category under 
which you qualify.
  Example. If you qualify as a Category 2 and a 
Category 3 filer, you must submit all the schedules 
required of Category 2 filers (page 1 of Form 8865, and 
Schedules A, A-2, N, K-1, and K-3) plus any additional 
schedules that Category 3 filers are required to submit 
(Schedules A-1 and O).
  Complete a separate Form 8865 and the applicable 
schedules for each foreign partnership.
  File the 2023 Form 8865 with your income tax return for 
your tax year beginning in 2023.
  If a Form 8832, Entity Classification Election, was filed 
for this entity for the current tax year, see When To File 
and Where To File in the instructions for Form 8832 to 
determine if you are required to attach a copy of the Form 
8832 to the tax return to which the Form 8865 is being 
attached.
  If a domestic section 721(c) partnership is formed on or 
after January 18, 2017, and the gain deferral method is 
applied, then a U.S. transferor must file Form 8865 for that 
partnership. See Regulations section 1.721(c)-6(b)(4). 
See Section 721(c) partnership Gain deferral method,  , 
and U.S. transferor, later.
  A U.S. transferor that is required to provide information 
for a partnership under Regulations sections 1.721(c)-6(b)
(2)(iv) and 1.721(c)-6(b)(3)(xi) must file a separate Form 
8865 (along with all necessary schedules and 
attachments) for each partnership treated as a U.S. 
transferor under Regulations sections 1.721(c)-3(d) and 
1.721(c)-6(c)(2). See U.S. transferor, later.

2                                                                  Instructions for Form 8865 (2023)

- 3 -

Page 3 of 30 Fileid: … ions/i8865/2023/a/xml/cycle03/source 10:56 - 5-Jan-2024

The type and rule above prints on all proofs including departmental reproduction proofs. MUST be removed before printing.

tax year, no person will be considered a Category 2 filer.
Categories of Filers See the definition of a 10% interest, later.
Category 1 filer. A Category 1 filer is a U.S. person who Category 3 filer. A Category 3 filer is a U.S. person who
controlled the foreign partnership at any time during the contributed property during that person's tax year to a
partnership's tax year. Control of a partnership is foreign partnership in exchange for an interest in the
ownership of more than a 50% interest in the partnership. partnership (a section 721 transfer), if that person either:
See the definition of 50% interest, later. There may be 1. Owned directly or constructively at least a 10%
more than one Category 1 filer for a partnership for a interest in the foreign partnership immediately after the
particular partnership tax year. See U.S. person and contribution, or
Foreign partnership, later.
2. The value of the property contributed (when added
A Category 1 filer also includes a U.S. transferor who to the value of any other property contributed to the
must report certain information for a section 721(c) partnership by such person, or any related person, during
partnership for the tax year of contribution and the 12-month period ending on the date of transfer)
subsequent years, pursuant to Regulations section exceeds $100,000.
1.721(c)-6. A Category 1 filer fulfills this reporting
requirement by filing Schedule G and, in certain If a domestic partnership contributes property to a
circumstances, Schedule H. See Section 721(c) foreign partnership, the domestic partnership's partners
partnership and U.S. transferor, later. are considered to have transferred a proportionate share
of the contributed property to the foreign partnership.
Category 2 filer. A Category 2 filer is a U.S. person who
However, if the domestic partnership files Form 8865 and
at any time during the tax year of the foreign partnership
properly reports all the required information for the
owned a 10% or greater interest in the partnership while
contribution, its partners will not be required to report the
the partnership was controlled by U.S. persons each
transfer.
owning at least a 10% interest. However, if the foreign
partnership had a Category 1 filer at any time during that A Category 3 filer includes a U.S. transferor who (a)
contributes section 721(c) property to a section 721(c)

Filing Requirements for Categories of Filers
Category of Filers
Filing Requirements
1 2 3 4
Identifying information—page 1 of Form 8865
Schedule A—Constructive Ownership of Partnership Interest
Schedule A-1—Certain Partners of Foreign Partnership
Schedule A-3—Affiliation Schedule
Schedule B—Income Statement—Trade or Business Income
Schedule G (Form 8865)—Statement of Application of the Gain Deferral Method Under Section
721
Schedule H (Form 8865)—Acceleration Events and Exceptions Reporting Relating to Gain
Deferral Method Under Section 721(c)
Schedule K—Partners' Distributive Share Items
Schedule K-1 (Form 8865)—Partner's Share of Income, Deductions, Credits, etc. (direct partners
only)
Schedule K-2 (Form 8865)—Partners’ Distributive Share Items—International
Schedule K-3 (Form 8865)—Partner’s Share of Income, Deductions, Credits, etc.—International
Schedule L—Balance Sheets per Books
Schedule M-1—Reconciliation of Income (Loss) per Books With Income (Loss) per Return
Schedule M-2—Analysis of Partners' Capital Accounts
Schedule N—Transactions Between Controlled Foreign Partnership and Partners or Other
Related Entities
Schedule D—Schedule D (Form 1065), Capital Gains and Losses
Schedule O (Form 8865)—Transfer of Property to a Foreign Partnership
Schedule P (Form 8865)—Acquisitions, Dispositions, and Changes of Interests in a Foreign
Partnership

Instructions for Form 8865 (2023) 3

- 4 -

Page 4 of 30 Fileid: … ions/i8865/2023/a/xml/cycle03/source 10:56 - 5-Jan-2024

The type and rule above prints on all proofs including departmental reproduction proofs. MUST be removed before printing.

partnership, and (b) has reporting requirements pursuant has increased or decreased by at least the equivalent of a
to Regulations section 1.721(c)-6(b)(2). The Category 3 10% interest in the partnership.
filer fulfills this reporting requirement by filing Schedule G, Special rule for a partnership interest owned on
in addition to Schedule O, and, in certain circumstances, December 31, 1999. If the U.S. person owned at least a
Schedule H. See Section 721(c) property, later. 10% direct interest in the foreign partnership on
Category 3 also includes a U.S. person that previously December 31,1999, then comparisons should be made to
transferred appreciated property to the partnership and the person's direct interest on December 31,1999. Once
was required to report that transfer under section 6038B, if the person has a reportable event after December
the foreign partnership disposed of such property while 31,1999, future comparisons should be made by
the U.S. person remained a direct or indirect partner in the reference to the last reportable event.
partnership.
Exceptions to Filing
Category 4 filer. A Category 4 filer is a U.S. person that
had a reportable event under section 6046A during that Multiple Category 1 filers. If during the tax year of the
person's tax year. There are three categories of reportable partnership more than one U.S. person qualifies as a
events under section 6046A: acquisitions, dispositions, Category 1 filer, only one of these Category 1 partners is
and changes in proportional interests. required to file Form 8865. A U.S. person with a controlling
Acquisitions. A U.S. person that acquires a foreign interest in the losses or deductions of the partnership isn’t
partnership interest has a reportable event if: permitted to be the filer of Form 8865 if another U.S.
• The person didn’t own a 10% or greater direct interest person has a controlling interest in capital or profits; only
in the partnership and, as a result of the acquisition, the the latter may file the return. The U.S. person that files the
person owns a 10% or greater direct interest in the Form 8865 must complete item F on page 1.
partnership (for example, from 9% to 10%). For purposes The single Form 8865 to be filed must contain all of the
of this rule, an acquisition includes an increase in a information that would be required if each Category 1 filer
person's direct proportional interest (see Changes in filed a separate Form 8865. Specifically, separate
proportional interests, later); or Schedules N, K-1, and K-3 (if applicable) must be
• Compared to the person's direct interest when the attached to the Form 8865 for each Category 1 filer. Also,
person last had a reportable event, after the acquisition items B, C, and D on page 1 and Schedule A on page 2 of
the person's direct interest has increased by at least a Form 8865 must be completed for each Category 1 filer
10% interest (for example, from 11% to 21%). not filing the form. Attach a separate statement listing this
An acquisition of a section 721(c) partnership interest may information to the single Form 8865.
be an acceleration event exception under the gain deferral A Category 1 filer not filing Form 8865 must attach a
method. See Regulations section 1.721(c)-5. In this case, statement entitled “Controlled Foreign Partnership
the acquirer may become a successor U.S. transferor and Reporting” to that person's income tax return.
may have a reporting requirement under Regulations The statement must include the following information.
section 1.721(c)-6. See the specific instructions for A statement that the person qualified as a Category 1
•
Schedule H, later. filer, but is not submitting Form 8865 under the multiple
Dispositions. A U.S. person that disposes of a foreign Category 1 filers exception.
partnership interest has a reportable event if: • The name, address, and identifying number (if any) of
• The person owned a 10% or greater direct interest in the foreign partnership of which the person qualified as a
the partnership before the disposition and, as a result of Category 1 filer.
the disposition, the person owns less than a 10% direct • A statement that the filing requirement has been or will
interest (for example, from 10% to 8%). For purposes of be satisfied.
this rule, a disposition includes a decrease in a person's • The name and address of the person filing Form 8865
direct proportional interest; or for this partnership.
• Compared to the person's direct interest when the • The Internal Revenue Service Center where the Form
person last had a reportable event, after the disposition 8865 must be filed (or indicate “electronic filing” if the
the person's direct interest has decreased by at least a Form 8865 has been or will be filed electronically).
10% interest (for example, from 21% to 11%).
A U.S. person who qualifies for this exception to
A disposition of a section 721(c) partnership interest
the Category 1 filing requirement would still have
may be an acceleration event for purposes of applying the CAUTION!
to file a separate Form 8865 if that person is also
gain deferral method. The U.S. transferor may be required
subject to the filing requirements of Category 3 or 4. This
to recognize gain in an amount equal to the remaining
separate Form 8865 would include all the information
built-in gain on the section 721(c) property previously
required for a Category 3 filer, a Category 4 filer, or a U.S.
contributed to the section 721(c) partnership. See
transferor who must report certain information for a
Regulations section 1.721(c)-4. For acceleration events
section 721(c) partnership for the year of contribution and
exceptions, see Regulations section 1.721(c)-5. See the
subsequent years, pursuant to Regulations section
specific instructions for Schedule H, later.
1.721(c)-6, in addition to the “Controlled Foreign
Changes in proportional interests. A U.S. person Partnership Reporting” statement.
has a reportable event if compared to the person's direct
proportional interest the last time the person had a Constructive owners. See Constructive ownership,
reportable event, the person's direct proportional interest later. A Category 1 or 2 filer that doesn’t own a direct
interest in the partnership and that is required to file this

4 Instructions for Form 8865 (2023)

- 5 -

Page 5 of 30 Fileid: … ions/i8865/2023/a/xml/cycle03/source 10:56 - 5-Jan-2024

The type and rule above prints on all proofs including departmental reproduction proofs. MUST be removed before printing.

form solely because of constructive ownership from a U.S. Example. Partner A doesn’t own an interest in FPS, a
person(s) isn’t required to file Form 8865 if: foreign partnership. Partner A transfers property to FPS in
1. Form 8865 is filed by the U.S. person(s) through exchange for a 15% direct interest. Partner A qualifies as
which the indirect partner constructively owns an interest a Category 3 filer because he transferred property to a
in the foreign partnership, foreign partnership and owned at least a 10% interest in
FPS immediately after the contribution. Partner A is also a
2. The U.S. person through which the indirect partner
Category 4 filer because he didn’t own a 10% or greater
constructively owns an interest in the foreign partnership
direct interest in FPS and as a result of the acquisition now
is also a constructive owner and meets all the
owns a 10% or greater direct interest in FPS. If Partner A
requirements of this constructive ownership filing
properly reports the contribution on Form 8865 as a
exception, or
Category 3 filer, Partner A isn’t required to report his
3. Form 8865 is filed for the foreign partnership by acquisition of the 15% interest in FPS as a Category 4
another Category 1 filer under the multiple Category 1 filer.
filers exception.
Relief for Category 1 and 2 Filers When the
To qualify for the constructive ownership filing
exception, the indirect partner must file with its income tax Foreign Partnership Files Form 1065
return a statement entitled “Controlled Foreign Partnership If a foreign partnership files Form 1065 for its tax year,
Reporting.” Category 1 and 2 filers may use a copy of the completed
This statement must contain the following information. Form 1065 schedules in place of the equivalent schedules
of Form 8865.
1. A statement that the indirect partner was required to
file Form 8865, but isn’t doing so under the constructive If you file Form 8865 with an electronically filed income
owners exception. tax return, see the electronic filing publications identified
in the instructions for your income tax return for more
2. The names and addresses of the U.S. persons
information.
whose interests the indirect partner constructively owns.
3. The name and address of the foreign partnership for See the first paragraph under General Instructions,
which the indirect partner would have had to have filed earlier, for the Form 1065 schedules that are equivalent to
Form 8865 but for this exception. the Form 8865 schedules.
4. If the indirect partner is a domestic corporation, a Example. Partner A is a Category 1 filer with respect
statement setting forth all the information that the indirect to FPS, a foreign partnership, during the 2023 tax year.
partner would have had to provide in response to FPS completes and files a Form 1065 for its 2023 tax year.
questions G8a and G8b on Form 8865. See Item H10. Instead of completing Schedules B, K, K-2, L, M-1, M-2,
Separate Units Note, later, for more information. K-1 and K-3 of Form 8865, Partner A may attach to its
Form 8865 page 1 of Form 1065 and Form 1065
Members of an affiliated group of corporations filing Schedules K, K-2, L, M-1, M-2, K-1 and K-3 (including the
a consolidated return. If one or more members of an Schedules K-1 and K-3 for Partner A and all other U.S.
affiliated group of corporations filing a consolidated return persons owning 10% or greater direct interests in FPS).
qualify as Category 1 or 2 filers for a particular foreign Partner A must complete the following items and
partnership, the common parent corporation may file one schedules on Form 8865.
Form 8865 on behalf of all of the members of the group • The first and second pages.
required to report. Except for group members who also • Schedule A.
qualify under the constructive owners exception, the Form • Schedule A-1.
8865 must contain all the information that would have • Schedule A-2.
been required to be submitted if each group member filed • Schedule A-3.
its own Form 8865. • Schedule G (Form 8865).
Exception for certain trusts. Trusts relating to state and • Schedule H (Form 8865).
local government employee retirement plans that • Schedule M.
otherwise would have Forms 8865 reporting requirements • Schedule N.
with regard to foreign partnerships aren’t required to file Example. Partner A is a Category 2 filer with respect
Form 8865. to FPS, a foreign partnership. If FPS completes and files a
Form 1065 for its 2023 tax year, Partner A may file with
Exception for certain Category 4 filers. If you qualify Form 8865 the Schedules K-1 and K-3 (Form 1065) that it
as a Category 3 and 4 filer because you contributed receives from the partnership instead of Schedules K-1
property to a foreign partnership in exchange for a 10% or and K-3 (Form 8865). Partner A must complete the
greater interest in that partnership, you aren’t required to following items and schedules on Form 8865.
report this transaction under both Category 3 and 4 filing The first and second pages.
•
requirements. If you properly report the contribution of Schedule A.
•
property under the Category 3 rules, you aren’t required to Schedule A-2.
•
report it as a Category 4 filer. However, the acquisition will Schedule N.
•
count as a reportable event to determine if a later change
in your partnership interest qualifies as a reportable event When and Where To File
under Category 4.
Attach Form 8865 to your income tax return (or, if
applicable, partnership or exempt organization return) and

Instructions for Form 8865 (2023) 5

- 6 -

Page 6 of 30 Fileid: … ions/i8865/2023/a/xml/cycle03/source 10:56 - 5-Jan-2024

The type and rule above prints on all proofs including departmental reproduction proofs. MUST be removed before printing.

file both by the due date (including extensions) for that Gain deferral method. The gain deferral method is the
return. If you don’t have to file an income tax return, you method described in Regulations section 1.721(c)-3(b)
must file Form 8865 separately with the IRS at the time applied to avoid the immediate recognition of gain upon a
and place you would be required to file an income tax contribution of section 721(c) property to a section 721(c)
return (or, if applicable, a partnership or exempt partnership under Regulations section 1.721(c)-2(b).
organization return). See below for penalties that may
apply if you don’t file Form 8865 on time. 50% interest. A 50% interest in a partnership is an
interest equal to:
Definitions • 50% of the capital,
• 50% of the profits, or
Partnership. A partnership is the relationship between 50% of the deductions or losses.
•
two or more persons who join to carry on a trade or For purposes of determining a 50% interest, the
business, with each person contributing money, property, constructive ownership rules described below apply.
labor, or skill and each expecting to share in the profits
and losses of the business whether or not a formal 10% interest. A 10% interest in a partnership is an
partnership agreement is made. interest equal to:
The term “partnership” includes a limited partnership, • 10% of the capital,
syndicate, group, pool, joint venture, or other • 10% of the profits, or
unincorporated organization, through or by which any • 10% of the deductions or losses.
business, financial operation, or venture is carried on, that For purposes of determining a 10% interest, the
isn’t, within the meaning of the regulations under section constructive ownership rules described below apply.
7701, a corporation, trust, estate, or sole proprietorship. Constructive ownership. For purposes of determining
A joint undertaking merely to share expenses isn’t a an interest in a partnership, the constructive ownership
partnership. Mere co-ownership of property that is rules of section 267(c) (excluding section 267(c)(3)) apply,
maintained and leased or rented isn’t a partnership. taking into account that such rules refer to corporations
However, if the co-owners provide services to the tenants, and not to partnerships. Generally, an interest owned
a partnership exists. directly or indirectly by or for a corporation, partnership,
estate, or trust shall be considered as being owned
Foreign partnership. A foreign partnership is a proportionately by its owners, partners, or beneficiaries.
partnership that isn’t created or organized in the United
States or under the law of the United States or of any state Also, an individual is considered to own an interest
or the District of Columbia. If a domestic section 721(c) owned directly or indirectly by or for their family. The family
partnership is formed on or after January 18, 2017, and of an individual includes only that individual's spouse,
the gain deferral method is applied, then the section siblings, ancestors, and lineal descendants. An interest
721(c) partnership is treated as a foreign partnership for will be attributed from a nonresident alien individual under
purposes of Form 8865 and these instructions. See the family attribution rules only if the person to whom the
Regulations section 1.721(c)-6(b)(4). interest is attributed owns a direct or indirect interest in the
foreign partnership under section 267(c)(1) or (5).
Section 721(c) partnership. A partnership (domestic or
foreign) is a section 721(c) partnership if there is a U.S. person. A U.S. person is a citizen or resident of the
contribution of section 721(c) property to the partnership United States, a domestic partnership, a domestic
and, after the contribution (and all transactions related to corporation, and any estate or trust that isn’t foreign. See
the contribution), (a) a related foreign person with respect section 7701(a)(30).
to the U.S. transferor is a direct or indirect partner in the Control of a corporation. For purposes of Schedule N,
partnership; and (b) the U.S. transferor and related control of a corporation is ownership of stock possessing
persons own 80% or more of the interests in partnership more than 50% of the total combined voting power, or
capital, profits, deductions, or losses. See Regulations more than 50% of the total value of shares of all classes of
section 1.721(c)-1(b)(14). stock of the corporation. For rules concerning indirect
U.S. transferor. A U.S. transferor is a U.S. person other ownership and attribution, see Regulations section
than a domestic partnership. See Regulations section 1.6038-2(c).
1.721(c)-1(b)(18). Change in a proportional interest. A partner's
Section 721(c) property. Section 721(c) property is proportional interest in a foreign partnership can change
property (other than excluded property) with built-in gain as a result of changes in other partners' interests, for
that is contributed to a partnership by a U.S. transferor, example, when another partner withdraws from the
including pursuant to a contribution described in partnership. A partner's proportional interest can also
Regulations section 1.721(c)-2(d) (partnership change, for example, by operation of the partnership
look-through rule). See Regulations section 1.721(c)-1(b) agreement (for example, if the partnership agreement
(15). provides that a partner's interest in profits will change on a
set date or when the partnership has earned a specified
Gain deferral contribution. A gain deferral contribution amount of profits, then the partner's proportional interest
is a contribution of section 721(c) property to a section changes when the set date or specified amount of profits
721(c) partnership for which the recognition of gain is is reached).
deferred under the gain deferral method. See Regulations
section 1.721(c)-1(b)(7).

6 Instructions for Form 8865 (2023)

- 7 -

Page 7 of 30 Fileid: … ions/i8865/2023/a/xml/cycle03/source 10:56 - 5-Jan-2024

The type and rule above prints on all proofs including departmental reproduction proofs. MUST be removed before printing.

Penalties the United States (such as an income tax treaty; an estate
and gift tax treaty; or a friendship, commerce, and
Failure to timely submit all information required of navigation treaty):
Category 1 and 2 filers. Overrides or modifies any provision of the Internal
•
• A $10,000 penalty is imposed for each tax year of each Revenue Code, and
foreign partnership for failure to furnish the required Causes (or potentially causes) a reduction of any tax
•
information within the time prescribed. If the information incurred at any time.
isn’t filed within 90 days after the IRS has mailed a notice
of the failure to the U.S. person, an additional $10,000 Failure to make such a report may result in a $1,000
penalty (per foreign partnership) is charged for each penalty ($10,000 in the case of a C corporation). See
30-day period, or fraction thereof, during which the failure section 6712.
continues after the 90-day period has expired. The Section 6662(j). Penalties may be imposed for
additional penalty is limited to a maximum of $50,000 for underpayment attributable to undisclosed foreign financial
each failure. asset understatements. The term “undisclosed foreign
• Any person who fails to furnish all of the information financial asset” for any tax year includes any asset for
required within the time prescribed will be subject to a which required information was not provided. An
reduction of 10% of the foreign taxes available for credit "undisclosed foreign financial asset understatement"
under sections 901 and 960. If the failure continues 90 means for any tax year, the portion of the understatement
days or more after the date the IRS mails notice of the for that tax year which is attributable to any transaction
failure, an additional 5% reduction is made for each involving an undisclosed foreign financial asset. No
3-month period, or fraction thereof, during which the penalty will be imposed for any portion of an
failure continues after the 90-day period has expired. See underpayment if the taxpayer can demonstrate that the
section 6038 (and the underlying regulations) for the failure to comply was due to reasonable cause for such
maximum reduction, the exception due to reasonable portion of the underpayment and the taxpayer acted in
cause, and the limits on the amount of these penalties. good faith for such portion of the underpayment. See
• Criminal penalties under sections 7203, 7206, and sections 6662(j) and 6664(c) for additional information.
7207 may apply for failure to file or for filing false or
Failure to comply with a requirement of the gain de-
fraudulent information.
ferral method. Failure to comply with a requirement of
Additionally, any person that files under the constructive the gain deferral method, including a failure to comply with
owners exception may be subject to these penalties if all the procedural and reporting requirements imposed under
the requirements of the exception aren’t met. Any person Regulations sections 1.721(c)-3 and 1.721(c)-6 and
required to file Form 8865 who doesn’t file under the section 6038B, may result in an acceleration event under
multiple Category 1 filers exception may be subject to the Regulations section 1.721(c)-4(b)(2) and a penalty under
above penalties if the other person doesn’t file a correctly section 6038B. See the specific instructions for
completed form and schedules. See Exceptions to Filing, Schedule G and Schedule H, later.
earlier.
Failure to file information required of Category 3 fil- Corrections to Form 8865
ers. Any person that fails to properly report a contribution If you file a Form 8865 that you later determine is
to a foreign partnership that is required to be reported incomplete or incorrect, file a corrected Form 8865 with an
under section 6038B and the regulations under that amended tax return following the instructions for the return
section is subject to a penalty equal to 10% of the fair with which you originally filed Form 8865. Enter
market value (FMV) of the property at the time of the “corrected” at the top of the form and attach a statement
contribution. This penalty is subject to a $100,000 limit, identifying and explaining the changes.
unless the failure is due to intentional disregard. In
addition, the transferor must recognize gain on the Specific Instructions
contribution as if the contributed property had been sold
for its FMV. See section 6038B for the exception due to Important: All information must be in English. All
reasonable cause. amounts must be stated in U.S. dollars.
Failure to file information required of Category 4 fil- If the information required in a given section exceeds
ers. Any person who fails to properly report all the the space provided within that section, attach a separate
information requested by section 6046A is subject to a statement(s) to provide the remaining information, using
$10,000 penalty, in addition to the section 7203 criminal the same size and format as the printed forms.
penalty, unless it is shown that such failure is due to
Fill in all applicable lines and schedules. All
reasonable cause. If the failure continues for more than 90
categories of filers must complete all items on pages 1
days after the IRS mails notice of the failure, an additional
and 2, with three exceptions. Complete item E only if, in
$10,000 penalty will apply for each 30-day period (or
addition to filing the form on your own behalf, you are
fraction thereof) during which the failure continues after
reporting information about other Category 1 filers under
the 90-day period has expired. The additional penalty
the multiple Category 1 filers exception, or you are
shall not exceed $50,000.
reporting information about members of your affiliated
Treaty-based return positions. File Form 8833, group of corporations under the consolidated return
Treaty-Based Return Position Disclosure Under Section exception. Only Category 1 and 2 filers are required to
6114 or 7701(b), to report a return position that a treaty of complete item H8. See Exceptions to Filing, earlier.

Instructions for Form 8865 (2023) 7

- 8 -

Page 8 of 30 Fileid: … ions/i8865/2023/a/xml/cycle03/source 10:56 - 5-Jan-2024

The type and rule above prints on all proofs including departmental reproduction proofs. MUST be removed before printing.

Answer items H10 and H11 only if you are a Category 1 Assets, for the tax year and includes this form in the total
filer. number of Forms 8865 reported on Form 8938, Part IV,
line 19. For more information, see the Instructions for
Tax Year Form 8938, generally, and in particular, Duplicative
Enter in the space below the title of Form 8865 the tax reporting and Part IV Excepted Specified Foreign .
year of the foreign partnership that ended with or within Financial Assets.
the tax year of the person filing this form. Category 1 or 2
filers must report information for the tax year of the foreign Item F
partnership that ends with or within their tax years. A Information about certain partners. If you are reporting
Category 3 or 4 filer must report on Schedule O or P, information about other persons under the multiple
respectively, transactions that occurred during that filer's Category 1 filers exception, or are reporting information
tax year (rather than during the partnership's tax year). about members of your affiliated group of corporations
under the consolidated return exception (see Exceptions
Identifying Numbers and Addresses to Filing, earlier), identify each such person in item F. List
Enter the identifying number of the person filing this their names, addresses, and identifying numbers. Also,
return. Use an employer identification number (EIN) to indicate whether each person is a Category 1 filer or
identify partnerships, corporations, and estates or trusts. Category 2 filer, and whether such person constructively
For individuals, use a social security number (SSN) or owned an interest in the foreign partnership during the tax
other identification number. year of the partnership listed at the top of Form 8865,
page 1. See Constructive ownership, earlier.
Include the suite, room, or other unit number after the
street address. If the post office doesn’t deliver mail to the Item G1
street address and the U.S. person has a P.O. box, show
the box number instead. For the foreign partnership's address, enter the city or
town, the state or province, and the foreign country in that
Foreign address. Enter the information in the following order. Follow the foreign country's practice in placing the
order: city or town, state or province, and country. Follow postal code in the address. Don’t abbreviate the country
the country's practice for entering the postal code, if any. name. If the partnership receives its mail in care of a third
Don’t abbreviate the country name. party (such as an accountant or attorney), enter “C/O”
followed by the third party's name and street address or
Item A. Category of Filer P.O. box.
Check the box for each category that describes the
person filing the form. If more than one category applies, Item G2(a)
check all boxes that apply. See Categories of Filers, If the foreign partnership has an EIN, enter it here. Don’t
earlier. enter “FOREIGNUS” or “APPLIED FOR.” If the partnership
has no EIN, item G2(b) must be completed.
Item C
Enter the filer's share of nonrecourse liabilities, Item G2(b)
partnership-level qualified nonrecourse financing, and A reference ID number (defined below) is required on item
other liabilities. Nonrecourse liabilities are those liabilities G2(b) only in cases where no EIN was entered on item
of the partnership for which no partner bears the G2(a) for the foreign partnership. However, filers are
economic risk of loss. The extent to which a partner bears permitted to enter both an EIN on item G2(a) and a
the economic risk is determined under the rules of reference ID number on item G2(b). If applicable, enter
Regulations section 1.752-2. the reference ID number you have assigned to the foreign
partnership identified on item G1.
"Qualified nonrecourse financing" generally includes
financing: A “reference ID number” is a number established by or
• For which no one is personally liable for repayment; on behalf of the U.S. person identified at the top of page 1
• That is borrowed for use in an activity of holding real of the form that is assigned to a foreign partnership for
property; and which Form 8865 reporting is required. These numbers
• That is borrowed from a qualified person (defined in are used to uniquely identify the foreign partnership in
section 49(a)(1)(D)(iv)) or is lent or guaranteed by a order to keep track of the partnership from tax year to tax
federal, state, or local government. year.
The reference ID number must meet the requirements
See section 465(b)(6) for more information on qualified
below. Don’t enter “FOREIGNUS” or “APPLIED FOR” with
nonrecourse financing.
respect to the reference ID number.
Item D. Identification of Common Parent
Note. Because reference ID numbers are established by
If the person filing the form is a member of a consolidated or on behalf of the U.S. person filing Form 8865, there is
group, but not the parent, list the name, address, and EIN no need to apply to the IRS to request a reference ID
of the filer's common parent. number or for permission to use these numbers.

Item E Note. Generally, the reference ID number assigned to a
Check the item E checkbox only if the Form 8865 filer also foreign partnership on Form 8865 has relevance only on
files Form 8938, Statement of Specified Foreign Financial Form 8865, its schedules, and any other form that is

8 Instructions for Form 8865 (2023)

- 9 -

Page 9 of 30 Fileid: … ions/i8865/2023/a/xml/cycle03/source 10:56 - 5-Jan-2024

The type and rule above prints on all proofs including departmental reproduction proofs. MUST be removed before printing.

attached to or associated with Form 8865, and should not Item G6. Principal Business Activity Code
be used for that foreign partnership on other IRS forms.
However, the foreign partnership's reference ID number If the foreign partnership filed Form 1065. Enter the
should also be entered on Form 8858, Information Return business code number (principal business activity code)
of U.S. Persons With Respect to Foreign Disregarded shown in item C of the Form 1065 filed by the partnership.
Entities, if the foreign partnership is listed as a tax owner If the foreign partnership did not file Form 1065.
of a foreign disregarded entity on Form 8858. See the Enter the applicable principal business activity code from
instructions for Form 8858, line 3c(2), for more Codes for Principal Business Activity and Principal
information. Product or Service at the end of these instructions. If the
information necessary to apply the total receipts test is not
Requirements available, pick a principal business activity code using the
information you have about the partnership.
The reference ID number that is entered on item G2(b)
must be alphanumeric (defined below) and no special Item G8a. Functional Currency
characters or spaces are permitted. The length of a given Enter the foreign partnership's functional currency. See
reference ID number is limited to 50 characters. sections 985 through 989 and the regulations thereunder.
If the partnership had more than one qualified business
For these purposes, the term “alphanumeric” means unit (QBU), described in Regulations section
the entry can be alphabetical, numeric, or any 1.989(a)-1(b)(2)(ii), attach a statement identifying each
combination of the two. QBU, its country of operation, and its functional currency.
A QBU under Regulations section 1.989(a)-1(b)(2)(ii) is
The same reference ID number must be used
any separate and clearly identified unit of a trade or
consistently from tax year to tax year for a given foreign
business of the partnership which maintains separate
partnership. If for any reason a reference ID number falls
books and records.
out of use (for example, the foreign partnership no longer
exists due to disposition or liquidation), the reference ID Hyperinflationary exception. A partnership that has a
number used for that foreign partnership cannot be used hyperinflationary currency as its functional currency is
again for another foreign partnership for purposes of Form subject to special rules set forth in Regulations section
8865 reporting. 1.985-3. Generally, under these rules, a partnership must
use the U.S. dollar as its functional currency.
There are some situations that warrant correlation of a
new reference ID number with a previous reference ID Item G8b. Exchange Rate
number when assigning a new reference ID number to a When translating functional currency to U.S. dollars, you
foreign partnership. For example: must use the method specified in sections 985 through
• In the case of a merger or acquisition, a Form 8865 filer 989 and the regulations thereunder. But, regardless of the
must use a reference ID number which correlates the specific method required, all exchange rates must be
previous reference ID number with the new reference ID reported using a “divide-by convention” rounded to at
number assigned to the foreign partnership; or least four places. That is, the exchange rate must be
• In the case of an entity classification election that is reported in terms of the amount by which the functional
made on behalf of the foreign partnership on Form 8832, currency amount must be divided in order to reflect an
Regulations section 301.6109-1(b)(2)(v) requires the equivalent amount of U.S. dollars. As such, the exchange
foreign partnership to have an EIN for this election. For the rate must be reported as the units of foreign currency that
first year that Form 8865 is filed after an entity equal one U.S. dollar, rounded to at least four places.
classification election is made on behalf of the foreign Don’t report the exchange rate as the number of U.S.
partnership on Form 8832, the new EIN must be entered dollars that equals one unit of foreign currency.
on item G2(a) of Form 8865 and the old reference ID
number must be entered on item G2(b). In subsequent Note. You must round the result to more than four places
years, the filer may continue to enter both the EIN on item if failure to do so would materially distort the exchange
G2(a) and the reference ID number on item G2(b), but rate or the equivalent amount of U.S. dollars.
must enter at least the EIN on item G2(a).
You must correlate the reference ID numbers as Item H2
follows: New reference ID number (space) Old reference If the foreign partnership was required to file Form 1065
ID number. If there is more than one old reference ID for the partnership's tax year listed at the top of page 1 of
number, you must enter a space between each such Form 8865, check the applicable box and enter the
number. As indicated above, the length of a given Internal Revenue Service Center where the form was or
reference ID number is limited to 50 characters and each will be filed (or enter “electronic filing” if the form was or
number must be alphanumeric and no special characters will be filed electronically). Also, check the applicable
are permitted. box(es) if the foreign partnership was required to file (for
its tax year) Form 8804, Annual Return for Partnership
Note. This correlation requirement applies only to the first Withholding Tax (Section 1446); or (for the calendar year
year the new reference ID number is used. ending with or within the foreign partnership's tax year)
Form 1042, Annual Withholding Tax Return for U.S.
Source Income of Foreign Persons.

Instructions for Form 8865 (2023) 9

- 10 -

Page 10 of 30 Fileid: … ions/i8865/2023/a/xml/cycle03/source 10:56 - 5-Jan-2024

The type and rule above prints on all proofs including departmental reproduction proofs. MUST be removed before printing.

Item H5 IF amounts were reported on THEN take those amounts into
Section 267A disallows a deduction for certain interest or the following Schedule on account (converting from
royalty paid or accrued in agreement with a hybrid Form 8858... GAAP to tax as necessary)
arrangement, to the extent that, under the foreign tax law, when determining the amounts
there isn’t a corresponding income inclusion (including to be reported on this
long-term deferral). In the case of a filer that is a tax Schedule on Form 8865...
resident of the United States (for example, a domestic Schedule C Schedule B.
corporation or citizen of the United States), report in item Schedule F Schedule L.
H5 the total amount of interest and royalty paid or accrued
by the foreign partnership for which your distributive share Schedule J Section 4, Part III, Schedule K-2.
of deductions is disallowed under section 267A. In the Schedule M Schedule N.
case of a filer that isn’t a tax resident of the United States
(for example, a domestic partnership), only report in item
H5 the portion of your distributive share of interest and
Item H10. Separate Units
royalty paid or accrued by the foreign partnership for
which you know, or have reason to know, that one or more Note. Only Category 1 filers (or indirect partners that are
of your owners aren’t allowed a deduction under section filing the constructive ownership exception statement) are
267A. For additional information about section 267A, required to answer items H10a and H10b, if applicable.
including the application of section 267A in the case of Answer "Yes" to item H10a if the filer is a domestic
payments by a partnership, see IRS.gov/businesses/ corporation and (a) the partnership is a hybrid entity; or (b)
partnerships/faqs-for-form-1065-schedule-b-other- the filer, through its interest in the partnership, indirectly
information-question-22. owns an interest in a hybrid entity or indirectly carries on a
business operation outside the United States that, if
Item H6 carried on by a U.S. person, would constitute a foreign
Answer “Yes” to item H6 if the partnership is a section branch (as defined in Regulations section 1.367(a)-6T(g)
721(c) partnership. If the answer is “Yes,” see the specific (1)). Under Regulations section 1.1503(d)-1(b)(3), a
instructions for Schedules G and H, relating to the gain hybrid entity means an entity that isn’t taxable as an
deferral method, and, if applicable, Schedule O, relating to association for U.S. federal tax purposes, but is subject to
the contribution of property during the tax year. See an income tax of a foreign country as a corporation (or
Section 721(c) partnership, earlier. otherwise at the entity level) either on its worldwide
income or on a residence basis. If the answer to item
Item H8 H10a is "No," skip item H10b.
Note. Only Category 1 and 2 filers are required to See Regulations section 1.1503(d)-1(b)(4) for more
complete item H8. information on separate units, including information on
Enter the number of Forms 8858 attached to Form when two or more individual separate units are combined
8865. A disregarded entity is an entity that is disregarded and treated as one separate unit. If you answer “Yes” to
as an entity separate from its owner under Regulations item H10b, then, for each separate unit that has a dual
section 301.7701-2(c)(2). The partnership is the tax owner consolidated loss, attach a statement that sets forth (a)
of the foreign disregarded entity if it is treated as owning the identity and country of operation of the separate unit
the assets and liabilities of the foreign disregarded entity or, in the case of a combined separate unit, the identity
for purposes of U.S. income tax law. and country of operation of each individual separate unit
If the foreign partnership is the tax owner of a foreign that is treated as part of the combined separate unit; and
disregarded entity or operates a foreign branch and you (b) the amount of the dual consolidated loss. See
are a Category 1 or 2 filer of Form 8865, complete and Regulations section 1.1503(d)-5 for rules on determining
attach Form 8858 to Form 8865. For more information, the amount of a dual consolidated loss attributable to a
see the Instructions for Form 8858. In addition, if the separate unit.
foreign partnership is required to attach Form 8858 to
Item H11
Form 8865, the amounts reported on certain schedules on
Form 8858 must be included in determining the amounts Note. Only Category 1 filers are required to answer item
reported on the equivalent schedules as follows. H11.
Answer “Yes” to item H11 if the partnership meets both
of the requirements shown on the form. Total receipts is
defined as the sum of gross receipts or sales (Schedule B,
line 1a); all other income reported on Schedule B (lines 4
through 7); income reported on Schedule K, lines 3a, 5,
6a, and 7; income or net gain reported on Schedule K,
lines 8, 9a, 10, and 11; and income or net gain reported
on Form 8825, Rental Real Estate Income and Expenses
of a Partnership or an S Corporation, lines 2, 19, and 20a.

Item H12
Check the “Yes” box on item H12a if the filer of this Form
8865 is claiming a deduction under section 250 for

10 Instructions for Form 8865 (2023)

- 11 -

Page 11 of 30 Fileid: … ions/i8865/2023/a/xml/cycle03/source 10:56 - 5-Jan-2024

The type and rule above prints on all proofs including departmental reproduction proofs. MUST be removed before printing.

foreign-derived intangible income (FDII), and enter the Category 3 filers. Category 3 filers must list the persons
amounts requested on items H12b, H12c, and H12d. (U.S. and foreign) whose interests in the foreign
Enter U.S. dollar amounts on items H12b, H12c, and partnership they constructively owned during the filer's tax
H12d, translated from functional currency at the average year that the reportable transfer occurred. See
exchange rate for the foreign partnership's tax year (see Schedule A-2. Foreign Partners of Section 721(c)
section 989(b)). Partnership, later.
The reported amounts should provide information for
transactions between the filer of the Form 8865 and the Schedule A-1. Certain Partners of
foreign partnership. See Form 8993 and its instructions for
information on the section 250 deduction. If no deduction Foreign Partnership
is being claimed, check the “No” box. All Category 1 and certain Category 3 filers must
complete Schedule A-1. Any person already listed on
Item H14 Schedule A isn’t required to be listed again on
Answer “Yes” if at any time during the year there were Schedule A-1.
transfers between the partnership and its partners subject Category 1 filers. Category 1 filers must list all U.S.
to the disclosure requirements of Regulations section persons who owned at least a 10% direct interest in the
1.707-8. For certain transfers that are presumed to be foreign partnership during the partnership's tax year listed
sales, the partnership or the partners must comply with at the top of page 1 of Form 8865.
the disclosure requirements in Regulations section
1.707-8. Generally, disclosure is required when: Category 3 filers. Category 3 filers must list:
• Each U.S. person that owned a 10% or greater direct
1. Certain transfers to a partner are made within 2 interest in the foreign partnership during the Category 3
years of a transfer of property by the partner to the filer's tax year, and
partnership; Any other person related to the Category 3 filer that was
•
2. Certain debt is incurred by a partner within 2 years a direct partner in the foreign partnership during that tax
of the earlier of (a) a written agreement to transfer, or (b) a year.
transfer of the property that secures the debt, if the debt is See Regulations section 1.6038B-2(i)(4) for the
treated as a qualified liability; or definition of a related person.
3. Transfers from a partnership to a partner occur Exception. Category 3 filers who only transferred cash
which are the equivalent to those listed in (1) or (2) above. and didn’t own a 10% or greater interest in the transferee
The disclosure must be made on the transferor partnership after the transfer aren’t required to complete
partner's return using Form 8275, Disclosure Statement, Schedule A-1.
or on an attached statement providing the same
information. When more than one partner transfers Schedule A-2. Foreign Partners of
property to a partnership under a plan, the disclosure may
be made by the partnership rather than each partner. Section 721(c) Partnership
Schedule A-2 must be completed if (1) item H6 is
Signature answered “Yes” (that the partnership is a section 721(c)
partnership); and (2) during the current tax year, a gain
Filer. Don’t sign Form 8865 if you are filing it as an
deferral contribution occurred, or (3) a gain deferral
attachment to your income tax return. Sign the return only
contribution occurred in a prior tax year (including before
if you are filing Form 8865 separately because you aren’t
2021) and, during the current tax year, the gain deferral
required to file a U.S. income tax return. See When and
method is applied to section 721(c) property contributed
Where To File, earlier, for more information.
in the prior gain deferral contribution. See Section 721(c)
Paid preparer. Don’t sign Form 8865 or complete the partnership Gain deferral contribution, , and Gain deferral
paid preparer section at the bottom of the form if Form method, earlier.
8865 is filed as an attachment to an income tax return.
Country of organization. Insert the 2-letter country
Sign Form 8865 and complete the paid preparer section
code for the country of organization for any foreign
only if Form 8865 is filed separately.
partner, other than an individual. See country codes on
IRS.gov/CountryCodes.
Schedule A. Constructive Ownership
Check if related to U.S. transferor. Check the box if the
of Partnership Interest partner is directly or indirectly related to the U.S. transferor
All filers must complete Schedule A. Check box a if the (within the meaning of section 267(b) or 707(b)(1)) and
person filing the return owns a direct interest in the foreign isn’t a U.S. person.
partnership. Check box b if the person filing the return Percentage interest. Include the foreign partner's
constructively owns an interest in the foreign partnership. percentage of interest in the partnership's capital and
See Constructive ownership, earlier. profits immediately after the gain deferral contribution. If
Category 1 and 2 filers. Category 1 and 2 filers must list multiple gain deferral contributions occurred during the tax
the persons (U.S. and foreign) whose interests in the year, enter the percentages immediately after the last gain
foreign partnership they constructively owned during the deferral contribution. See Gain deferral contribution,
partnership’s tax year. earlier.

Instructions for Form 8865 (2023) 11

- 12 -

Page 12 of 30 Fileid: … ions/i8865/2023/a/xml/cycle03/source 10:56 - 5-Jan-2024

The type and rule above prints on all proofs including departmental reproduction proofs. MUST be removed before printing.

Schedule A-3. Affiliation Schedule Schedule G (Form 8865). Statement
All filers must complete Schedule A-3. List on of Application of the Gain Deferral
Schedule A-3 all partnerships (foreign or domestic) in
which the foreign partnership owned a direct interest, or a Method Under Section 721(c)
10% indirect interest (under the rules of sections 267(c)(1) A U.S. transferor uses Schedule G to comply with the
and (5)) during the partnership tax year listed at the top of reporting requirements that must be satisfied in applying
page 1 of Form 8865. the gain deferral method. If the gain deferral method is
Category 1 filers. Only Category 1 filers must complete applied to section 721(c) property, a U.S. transferor must
the Total ordinary income or loss column. In that column, file Schedule G for the tax year of a gain deferral
report the foreign partnership's share of ordinary income contribution, as well as for each subsequent tax year to
(even if not received) or loss from partnerships in which which the gain deferral method is applied to section
the foreign partnership owns a direct interest. The total 721(c) property, even if the gain deferral contribution for
amount of ordinary income or loss from each partnership that property occurred before 2018. See Regulations
must also be included on Schedule B, line 4. sections 1.721(c)-6(b)(2) and (3). See Gain deferral
method Gain deferral contribution, , and Section 721(c)
property, earlier.
Schedule B. Income
Filing Year
Statement—Trade or Business
Check the box for “Tax year of gain deferral contribution” if
Income your tax year is a year in which a gain deferral contribution
occurred (a gain deferral contribution year). Check the
Important: All Category 1 filers in partnerships engaged “Annual reporting” box if a gain deferral contribution
in a domestic or foreign trade or business must complete occurred in a year prior to the current tax year and, in the
Form 8865, Schedule B. current tax year, the gain deferral method applies to
If the partnership is a section 721(c) partnership and section 721(c) property contributed in the prior gain
the gain deferral method is applied, Schedule B must deferral contribution (an annual reporting year). If the tax
include any remedial items for section 721(c) property, year is both a gain deferral contribution year and an
including an offsetting remedial item relating to annual reporting year, both boxes should be checked.
contributed section 197(f)(9) property. See Regulations
sections 1.704-3(d) and 1.704-3(d)(5)(iii). The total net General Instructions
amount of remedial allocations should be included on On Schedule G, information must be provided for section
line 7, Other income (loss). Attach a detailed statement 721(c) property that was (a) contributed to the partnership
describing the remedial items allocated to each partner in a gain deferral contribution that occurred during the
during the tax year for section 721(c) property. See current tax year; or (b) contributed to the partnership in a
Regulations section 1.721(c)-3. See Section 721(c) gain deferral contribution that occurred during a prior tax
partnership Section 721(c) property, , and Gain deferral year, provided that the gain deferral method is applied to
method, earlier. the property in the current tax year. Collectively, section
721(c) property for which information must be reported on
Specific Instructions for Schedule B Schedule G is referred to as “reportable section 721(c)
For specific instructions for Form 8865, Schedule B, use properties.” See Section 721(c) property, earlier.
the instructions for Form 1065, lines 1a through 21
(income and deductions). In Parts I through V, information must be provided on a
property-by-property basis. In Part I, reportable section
You can view or download the Instructions for 721(c) properties and accompanying information must be
TIP Form 1065 at IRS.gov/Form1065. Also, these listed in descending order of FMV (measured at the time
instructions can be ordered by calling of contribution). Thus, the reportable section 721(c)
800-829-3676 (800-TAX-FORM). property with the highest FMV should be listed on line 1,
the reportable section 721(c) property with the second
highest FMV should be listed on line 2, and so on.
Schedule D. Capital Gains and Losses
In Parts II through IV, the line on which information is
Important: All Form 8865 Category 1 filers in provided for a reportable section 721(c) property must
partnerships having partnership items described in the correspond to the line on which the property is listed in
Instructions for Schedule D (Form 1065), Capital Gains Part I. Thus, in Parts II through IV, line 1 corresponds to
and Losses, must complete that schedule. Part I, line 1, and line 2 corresponds to Part I, line 2, and
so on.
You can view or download the Schedule D (Form
TIP 1065) and the Instructions for Schedule D (Form If there are more than four reportable section 721(c)
1065) at IRS.gov/ScheduleD(Form1065). Also, properties, in Parts I through IV, attach a statement using
the form and its instructions can be ordered by calling the same format as in Parts I through IV, listing properties,
800-829-3676 (800-TAX-FORM). or information for properties, in the same manner as
described in the preceding two paragraphs. For example,
the first line on the statement for Part I must be labeled “5”
and contain columns with the same information as those

12 Instructions for Form 8865 (2023)

- 13 -

Page 13 of 30         Fileid: … ions/i8865/2023/a/xml/cycle03/source                        10:56 - 5-Jan-2024

The type and rule above prints on all proofs including departmental reproduction proofs. MUST be removed before printing.

in Part I, and must list the reportable section 721(c)        721(c) property listed, check “Yes” on the corresponding 
property with the fifth-highest FMV. The statements for       line in Part V of Schedule G and complete Schedule H. 
Parts I through IV may be combined in a single attached       See the Part V instructions below.
statement, provided that the format described above is 
followed.                                                     Part II. Remaining Built-in Gain, Remedial 
                                                              Income, and Gain Recognition
A U.S. transferor should complete and file only one 
Schedule G for each partnership. See U.S. transferor,         Provide the requested information for each reportable 
earlier.                                                      section 721(c) property. See General Instructions under 
                                                              Schedule G, earlier, for the order in which properties must 
Part I. Section 721(c) Property                               be listed and when an attached statement can and must 
                                                              be used. On line 4a, provide the total amounts in each 
Provide the requested information for each reportable 
                                                              column for all reportable section 721(c) property, including 
section 721(c) property. See General Instructions under 
                                                              property listed on an attached statement.
Schedule G above for the order in which properties must 
be listed and when an attached statement can and must         Column (a). Remaining built-in gain at beginning of 
be used. If there are more than four reportable section       tax year. For a reportable section 721(c) property, enter 
721(c) properties, enter on line 4a the following             the amount of remaining built-in gain at the beginning of 
information for the reportable section 721(c) properties      the tax year. If the property was contributed in the current 
listed on the attached statement.                             tax year, enter the property’s built-in gain on the date of 
1. In columns 6(a) through 6(c), provide the aggregate        the contribution (Part I, column 6(c)).
FMV, basis, and built-in gain, respectively, of the           Column (b). Remaining built-in gain at end of tax 
properties.                                                   year. For a reportable section 721(c) property, enter the 
2. Check the boxes in columns 4, 5, and 7(a)–(e) if           amount of remaining built-in gain at the end of the tax 
applicable to any of the properties.                          year, figured under the gain deferral method.
         Don’t complete line 4a if there are four or fewer    Column (c). Remedial income allocated to the U.S. 
                                                              transferor. For a reportable section 721(c) property, 
CAUTION
!        reportable section 721(c) properties.                enter the remedial income allocated to the U.S. transferor 
                                                              under the remedial allocation method. When the gain 
Note.  Schedule O, Transfer of Property to a Foreign          deferral method applies to a section 721(c) property, the 
Partnership, may need to be completed if, during the tax      partnership must use the remedial allocation method 
year, the U.S. transferor contributed property (including     described in Regulations section 1.704-3(d) for the 
section 721(c) property) to the partnership. See the          property. See Regulations section 1.721(c)-3(b)(1)(i)(A).
Schedule O instructions, later.                               Column (d). Gain recognized due to acceleration 
Column 4. Section 197(f)(9) property. Check the box           event. For a reportable section 721(c) property, enter the 
for the reportable section 721(c) property if the property is amount of built-in gain taken into account by reason of an 
an intangible described in section 197(f)(9).                 acceleration event or partial acceleration event. See 
                                                              Regulations sections 1.721(c)-4 and 1.721(c)-5 for events 
Column 5. Effectively connected income property. 
                                                              constituting an acceleration event or partial acceleration 
Check the box for the reportable section 721(c) property if 
                                                              event and for the consequences of such events.
(a) all distributive shares of income and gain with respect 
to the property for all direct and indirect partners that are Column (e). Gain recognized due to section 367 
related foreign persons for the U.S. transferor will be       transfer. For a reportable section 721(c) property, enter 
subject to taxation as income effectively connected with a    the amount of gain recognized by the U.S. transferor 
trade or business within the United States (under section     pursuant to Regulations section 1.721(c)-5(e) (regarding 
871 or 882), and (b) neither the section 721(c) partnership   transfers, including indirect transfers, described in section 
nor a related foreign person that is a direct or indirect     367 of section 721(c) property to a foreign corporation). 
partner in the partnership claims benefits under an income    Gain recognized under section 367 should not be 
tax convention that would exempt the income or gain from      included in column 5. Instead, column 5 should list only 
tax or reduce the rate of taxation to which the income or     the amount of gain recognized pursuant to Regulations 
gain is subject. See Regulations sections 1.721(c)-3(b)(1)    section 1.721(c)-5(e) (requiring the U.S. transferor to 
(ii) and 1.721(c)-6(c)(1).                                    recognize an amount of gain equal to the remaining 
                                                              built-in gain (if any) that would have been allocated to the 
Column 6(a). Fair market value.      Enter the FMV of the 
                                                              U.S. transferor if the partnership had sold the remaining 
reportable section 721(c) property, measured as of the 
                                                              portion of the property immediately before the transfer for 
date of contribution.
                                                              FMV).
Column 6(b). Basis.  Enter the adjusted tax basis of the 
reportable section 721(c) property on the date of the         Part III. Allocation Percentages of Partnership 
contribution. See sections 1011 through 1016 for more         Items With Respect to Section 721(c) Property
information for the determination of adjusted tax basis.      For each reportable section 721(c) property, enter the 
Column 7. Events.    Check the box for each of columns        percentage of income, gain, deduction, and loss allocated 
7(a) through 7(e) which describes an event that occurred      to the U.S. transferor, related domestic partners, and 
during the tax year for the reportable section 721(c)         related foreign partners. See General Instructions under 
property. If a box is checked for any reportable section      Schedule G, earlier, for the order in which properties must 

Instructions for Form 8865 (2023)                                                                                         13

- 14 -

Page 14 of 30         Fileid: … ions/i8865/2023/a/xml/cycle03/source                    10:56 - 5-Jan-2024

The type and rule above prints on all proofs including departmental reproduction proofs. MUST be removed before printing.

be listed and when an attached statement can and must 
be used. See section 267(b) or 707(b)(1) for rules on         Schedule H (Form 8865). Acceleration 
determining related partners, and see Regulations section 
1.721(c)-3(c) for a rule requiring that the partnership apply Events and Exceptions Reporting 
the consistent allocation method when the gain deferral       Relating to Gain Deferral Method 
method applies.
                                                              Under Section 721(c)
Part IV. Allocation of Items to U.S. Transferor               If the gain deferral method is being applied to reportable 
With Respect to Section 721(c) Property                       section 721(c) property, complete and file Schedule H to 
For each reportable section 721(c) property, enter the        report certain events related to the section 721(c) 
amount (both book and tax) of income, gain, deduction,        property. See Regulations sections 1.721(c)-4 and -5 for 
and loss allocated to the U.S. transferor under the gain      more information. Complete a separate Schedule H for 
deferral method. See General Instructions under               each partnership.
Schedule G, earlier, for the order in which properties must   General instructions.    Complete all Parts of Schedule H 
be listed and when an attached statement can and must         that correspond to the box or boxes checked in 
be used. In addition, a description of any tax item or        Schedule G, Part I, column 7, and the related line on Part 
regulatory allocation for a reportable section 721(c)         V checked “Yes.” If additional lines are needed to report 
property that is allocated to the U.S. transferor must be     the information required in Parts I through V, attach a 
included in Part VI, Supplemental Information.                statement in the same format as the format used in the 
                                                              Part, in Part VI, Supplemental Information. See Section 
Part V. Additional Information                                721(c) property, earlier.
Part V provides questions relating to whether certain         For Parts I–III and V, enter in column (a) the line number 
events have occurred in the current tax year for one or       for the section 721(c) property from Schedule G, Part I. If 
more reportable section 721(c) properties and information     the impacted section 721(c) property is listed on an 
relating to treaty benefits. Such events include:             attached statement to Schedule G, Part I, enter the line 
• Acceleration events (see Regulations section                number from the attached statement on which that 
1.721(c)-4),                                                  property was identified.
• Partial acceleration events (see Regulations section 
1.721(c)-5(d)),                                               Part I. Acceleration Event
• Termination events (see Regulations section 
                                                              Acceleration event. An acceleration event is any event 
1.721(c)-5(b)),
                                                              that either would reduce the amount of the remaining 
• Successor events involving a successor partnership or 
                                                              built-in gain that a U.S. transferor would have recognized 
U.S. transferor (see Regulations section 1.721(c)-5(c)),
                                                              under the gain deferral method if the event had not 
• Taxable disposition of a portion of an interest in a 
                                                              occurred or could defer the recognition of the remaining 
partnership (see Regulations section 1.721(c)-5(f)), and
                                                              built-in gain. Acceleration events are applicable on a 
• Direct or indirect transfer of section 721(c) property to a 
                                                              property-by-property basis. An acceleration event 
foreign corporation subject to section 367 (see 
                                                              includes the transfer of section 721(c) property by making 
Regulations section 1.721(c)-5(e)).
                                                              a contribution of the property itself to another partnership 
Lines 1 through 6b.  If the answer is “Yes” to any of the     or the contribution of an interest in a section 721(c) 
questions on lines 1 through 6b of Part V, also complete      partnership to another partnership. When an acceleration 
and attach Schedule H (Form 8865). See the separate           event occurs for a section 721(c) property, the U.S. 
instructions later for Schedule H. In addition, the           transferor must recognize gain in an amount equal to 
corresponding checkboxes in Part I, columns 7(a) through      remaining built-in gain in the property that would have 
7(e), should be marked, as applicable.                        been allocated to the U.S. transferor if the section 721(c) 
Line 7a. If the answer is “Yes,” attach to Form 8865 a        partnership had sold the section 721(c) property 
copy of the waiver of treaty benefits for the reportable      immediately before the acceleration event for FMV. 
section 721(c) property. See Regulations sections             Following the event, the gain deferral method no longer 
1.721(c)-6(b)(2)(iii) and 1.721(c)-6(c).                      applies to that section 721(c) property. See Regulations 
                                                              section 1.721(c)-4 for rules relating to acceleration events.
Part VI. Supplemental Information                             At any time, a U.S. transferor may affirmatively treat an 
Information to be reported.   When providing any              acceleration event as having occurred (a deemed 
information in Part VI, indicate the Part, Part column, and   acceleration event) for a section 721(c) property by both 
line for which the information is provided.                   recognizing the remaining built-in gain in that section 
                                                              721(c) property and satisfying the reporting requirements 
Additional Part rows. If an attached statement is used in     of the acceleration event. See Regulations section 
Parts I through IV, include the statement “Additional         1.721(c)-4(b)(4).
Section 721(c) Property statement(s) is/are attached” in 
the area provided in Part VI.                                 Column (b). Provide a description of the acceleration 
                                                              event, including the citation in the case of a partial or 
Other information. Use the Supplemental Information           deemed acceleration event. See Regulations section 
section to provide any additional information required by     1.721(c)-6(b)(3)(iv). Use Part VI if additional space is 
Regulations section 1.721(c)-6 that isn’t captured in Parts   needed to describe the transaction.
I through IV above.

14                                                                                     Instructions for Form 8865 (2023)

- 15 -

Page 15 of 30   Fileid: … ions/i8865/2023/a/xml/cycle03/source                        10:56 - 5-Jan-2024

The type and rule above prints on all proofs including departmental reproduction proofs. MUST be removed before printing.

Column (d). Enter the amount of the gain recognized by          events, a domestic corporation becomes the successor 
the U.S. transferor for the section 721(c) property resulting   U.S. transferor. In other successor events, a partnership 
from the acceleration event.                                    becomes the successor section 721(c) partnership. A 
                                                                successor section 721(c) partnership may be a new, 
Column (e). Enter the amount that the section 721(c)            upper-tier, or lower-tier partnership. The identifying 
partnership will increase its basis in the section 721(c)       information must include the name, address, and U.S. 
property as a result of the acceleration event. See             taxpayer identification number (TIN), if any, of the 
Regulations sections 1.721(c)-4(c)(2) and 1.721(c)-5(d) in      successor U.S. transferor or successor section 721(c) 
the case of a partial acceleration event.                       partnership.
Column (f). Check the box if there is a partial 
acceleration event and the U.S. transferor recognizes a         Part IV. Taxable Disposition of a Portion of an 
partial gain for the section 721(c) property. Certain           Interest in Partnership Event
distributions of other partnership property to a partner that   Part IV reports the information relating to a fully taxable 
result in an adjustment under section 734 to the section        disposition of a portion of an interest in a section 721(c) 
721(c) property constitute a partial acceleration event         partnership. Complete this Part if a U.S. transferor or a 
requiring that the U.S. transferor recognize gain. If there is  partnership in which a U.S. transferor is a direct or indirect 
a remaining built-in gain in the section 721(c) property        partner disposes of (directly or indirectly through one or 
immediately after the partial acceleration event, the gain      more partnerships) a portion of an interest in a section 
deferral method must continue to apply and the U.S.             721(c) partnership in a transaction in which the gain or 
transferor is required to continue to report the information    loss, if any, is recognized. This will not be an acceleration 
on Schedule G for that property. See Regulations section        event for the portion of the interest transferred. The gain 
1.721(c)-5(d).                                                  deferral method will continue to apply for the section 
                                                                721(c) property of the section 721(c) partnership. The 
Part II. Termination Event                                      rules of Regulations section 1.704-3(a)(7) are applied to 
A termination event causes the gain deferral method to no       determine the remaining built-in gain in the section 721(c) 
longer apply for the affected section 721(c) property on a      property on a property-by-property basis that is 
property-by-property basis. Regulations section                 attributable to the portion of the interest in the section 
1.721(c)-5(b) identifies the termination events.                721(c) partnership is retained. See Regulations section 
                                                                1.721(c)-5(f).
Column (b). Provide a description of the termination 
event, including the citation to the relevant paragraph in      Column (a).   Provide a description of the disposition of 
Regulations section 1.721(c)-5(b). See Regulations              the interest in the partnership, including whether the 
section 1.721(c)-6(b)(3)(v). Use Part VI if additional space    interest was a direct or indirect interest (through one or 
is needed to describe the transaction.                          more partnerships). If more than one taxable disposition 
                                                                event occurs in the tax year, provide the required 
Part III. Successor Event                                       information for each event separately in Part IV in 
A successor event allows for the continued application of       chronological date order. If additional space is needed, 
the gain deferral method for the affected section 721(c)        provide the information in Part VI.
property on a property-by-property basis by a successor         Column (c).   Enter the percentage of partnership interest 
U.S. transferor or a successor section 721(c) partnership.      that was disposed of in the event to which all gain or loss, 
However, if the successor doesn’t continue the gain             if any, is recognized.
deferral method, the event is an acceleration event and 
must be reported in Part I above. Successor events are          Column (d).   Enter the percentage of the partnership 
applicable on a property-by-property basis. If only a           interest (directly or indirectly through one or more 
portion of an interest in a partnership is transferred in a     partnerships) that the U.S. transferor retained immediately 
successor event, the rules of Regulations section               after the event.
1.704-3(a)(7) are applied to determine the remaining            Column (e).   Enter the aggregate amount of the 
built-in gain in the section 721(c) property that is            remaining built-in gain for all of the section 721(c) 
attributable to the portion of the interest that is transferred properties that is attributable to the portion of the interest 
and the portion that is retained. Regulations section           in the section 721(c) partnership that is retained. Attach a 
1.721(c)-5(c) identifies the successor events, including        detailed supporting schedule to Schedule H that 
special rules for transactions involving tiered partnerships.   separately states each remaining section 721(c) property 
If more than one successor event occurs in the tax              and its respective remaining built-in gain allocable to the 
year, provide the required information for each event           U.S. transferor included in the aggregate amount reported 
separately in Part IV in chronological date order.              in column (e).

Column (b). Provide a description of the successor              Part V. Section 367 Transfer Event
event, including the citation to the relevant paragraph in      Part V reports the information relating to a transfer 
Regulations section 1.721(c)-5(c). See Regulations              described in section 367 of section 721(c) property to a 
section 1.721(c)-6(b)(3)(v). Use Part VI if additional space    foreign corporation. See Regulations section 
is needed to describe the transaction.                          1.721(c)-5(e). Section 367 events include:
Column (d). Enter the identifying information of the            • Transfer of section 721(c) property by a section 721(c) 
relevant successor, as applicable. In certain successor         partnership to a foreign corporation, or

Instructions for Form 8865 (2023)                                                                                           15

- 16 -

Page 16 of 30 Fileid: … ions/i8865/2023/a/xml/cycle03/source 10:56 - 5-Jan-2024

The type and rule above prints on all proofs including departmental reproduction proofs. MUST be removed before printing.

• Transfer by a U.S. transferor or a partnership in which a Information, provide the information in an attachment or
U.S. transferor is a direct or indirect partner transfers attachments to Schedule H in the same format as required
(directly or indirectly through one or more partnerships) all for the row on the Part at issue. If separate supplemental
or a portion of the section 721(c) partnership that owns schedules are used for any Part of Schedule H for specific
section 721(c) property to a foreign corporation. section 721(c) properties, use the same corresponding
identification line number from the Part I of Schedule G for
As a result of the section 367 event, the section 721(c)
such property on the supplemental schedule for
property is no longer subject to the gain deferral method.
Schedule H.
The U.S. transferor is treated as transferring the section
721(c) property to a foreign corporation and is subject to Other information. Use the Supplemental Information
taxation on the transfer under section 367. See the section section to provide any additional information required by
367 regulations for rules relating to gain or income Regulations section 1.721(c)-6 that isn’t reported in Parts I
recognition under section 367. through V above.

Note. A transfer of property to a foreign corporation by a
U.S. transferor is subject to other reporting requirements Schedules K, Partners' Distributive
under sections 367, 351, 368, and 6038B (for example, Share Items, and K-1 (Form 8865),
the filing of Form 926), as applicable. See the related
regulations under these Code sections. Such reporting Partner’s Share of Income,
requirements are in addition to the filing of Schedule H. Deductions, Credits, etc.
After considering the tax consequences under section
367, the remaining built-in gain, if any, for the section Schedule K
721(c) property is recognized by the U.S. transferor to the Form 8865, Schedule K, is a summary schedule of all of
extent that would have been allocated to the U.S. the partners' shares of the partnership income, credits,
transferor had the section 721(c) partnership sold that deductions, etc. Only Category 1 filers must complete
portion of the property immediately before the transfer for Form 8865, Schedule K.
FMV.
Schedule K-1
Column (b). Provide a description of the section 367 Schedule K-1 (Form 8865) is used to report a specific
transfer, including whether the transfer was a direct or partner's share of the partnership income, deductions,
indirect transfer (through one or more partnerships) of credits, etc.
section 721(c) property to a foreign corporation. If more
than one section 367 transfer occurs in the tax year, All Category 1 and 2 filers must complete Schedule K-1
provide the required information for each transfer (Form 8865) for any direct interest they hold in the
separately in Part IV in chronological date order. If partnership. A Category 1 or 2 filer that doesn’t own a
additional space is needed, provide the information in Part direct interest is not required to complete Schedule K-1
VI. (Form 8865).
Column (d). Enter the amount of the remaining portion of Category 1 filers must also complete Schedule K-1
built-in gain recognized by the U.S. transferor under (Form 8865) for each U.S. person that directly owns a
section 721(c). The amount of gain equals the remaining 10% or greater direct interest in the partnership.
portion of the built-in gain that would have been allocated
to the U.S. transferor if the section 721(c) partnership had Provide the partner's beginning and year-end
sold that portion of the section 721(c) property percentage interests in partnership profits, losses, capital,
immediately before the transfer for FMV. This amount or deductions. These percentages should include any
should not include any gain or income recognized by the interest constructively owned by the filer.
U.S. transferor pursuant to section 367 that is reported Complete boxes 1 through 21 for any direct interest that
elsewhere on the return. See Regulations section the partner owns in the partnership.
1.721(c)-5(e). After the section 367 transfer, the
transferred section 721(c) property will no longer be Example. Partner A owns a 45% direct interest in a
subject to the gain deferral method. foreign partnership (FPS). Partner A also owns 100% of
the stock of a domestic corporation (DC), which owns a
Column (e). Enter the identifying information of the 10% direct interest in FPS. Therefore, Partner A is
foreign transferee corporation that received the section considered to own a 55% interest in FPS and is thus a
721(c) property in the section 367 transfer. The identifying Category 1 filer. When Partner A completes Schedule K-1
information includes the name, address, and U.S.TIN, if (Form 8865) for itself, Partner A must report the
any. distributive share of items allocated to Partner A's direct
interest of 45% but not any items allocated to DC's 10%
Part VI. Supplemental Information interest. When Partner A completes Schedule K-1 (Form
Information to be reported. When providing any 8865) for DC (which Partner A must do because DC owns
information in the Supplemental Information, indicate the a direct 10% interest), Partner A must report on DC's
Part, Part column, row, and line for which the information is Schedule K-1 (Form 8865) only items allocated to DC's
provided. direct 10% interest.
Additional Part rows. If additional rows are needed to Although the partnership isn’t subject to income tax, the
enter information in Parts I through V in the Supplemental partners are liable for tax on their shares of the

16 Instructions for Form 8865 (2023)

- 17 -

Page 17 of 30      Fileid: … ions/i8865/2023/a/xml/cycle03/source                           10:56 - 5-Jan-2024

The type and rule above prints on all proofs including departmental reproduction proofs. MUST be removed before printing.

partnership income, whether or not distributed, and must         partnership Section 721(c) property, , and Gain deferral 
include their share of such items on their tax returns.          method, earlier.
Allocations of income, gains, losses, deductions, or             Codes. In box 11 and boxes 13 through 21, identify each 
credits among the partners should generally be made              item by entering a code in the column to the left of the 
according to the partnership agreement. See section 704          dollar amount entry space. These codes are identified in 
and the regulations thereunder.                                  List of Codes Used for Schedule K-1 (Form 8865), later. 
                                                                 For Box 11—Code ZZ. Other, see Other code ZZ in the 
Schedule K-1 (Form 8865) for related foreign part-               Instructions for Form 1065.
ners.  If the gain deferral method is applied and a section 
721(c) partnership doesn’t have a filing obligation under        Attached statements.     When attaching statements to 
section 6031, the U.S. transferor must obtain a                  Schedule K-1 to report additional information to the 
Schedule K-1 (Form 8865) for each direct or indirect             partner, indicate there is a statement for the following.
partner that is related to the U.S. transferor (within the       • If an amount can be input on Schedule K-1 but 
meaning of section 267(b) or 707(b)(1)) and that isn’t a         additional information is required, enter an asterisk (*) 
U.S. person (related foreign partner). See Regulations           after the code in the column to the left of the entry space.
section 1.721(c)-6(c)(3). The Schedule K-1 (Form 8865)           • For items that can't be reported as a single dollar 
for each related foreign partner must be filed and attached      amount, enter the code and an asterisk (*) in the column 
to the Form 8865 as part of the annual reporting relating to     to the left and enter “STMT” in the right column to indicate 
the gain deferral method pursuant to Regulations section         that the information is provided on an attached statement.
1.721(c)-6(b)(3)(xi). The instructions that apply to             • If the partnership has more coded items than the 
Schedule K-1 (Form 8865) for all other partners also apply       number of entry boxes (for example, boxes 11 and 13 
to a Schedule K-1 (Form 8865) for a related foreign              through 15, or boxes 17 through 21), don't enter a code or 
partner. See Gain deferral method Section 721(c) ,               dollar amount in the last entry box. Instead, enter an 
partnership, and U.S. transferor, earlier.                       asterisk (*) in the left column and enter “STMT” in the 
                                                                 entry space to the right.
General Reporting Instructions for Schedule K-1                    More than one attached statement can be placed on 
(Form 8865)                                                      the same sheet of paper. The information included in the 
                                                                 statement should be identified in alphanumeric order by 
                                                                 box number followed by the letter code (if any), 
On each Schedule K-1 (Form 8865), enter the information 
                                                                 description, and dollar amount for each item. For example: 
about the partnership and the partner in Parts I and II 
                                                                 “Box 15, code J—Work opportunity credit—$1,000.” This 
(items A through F). For Schedule K-1 (Form 8865), items 
                                                                 can be followed with any additional information the partner 
E and F, see the instructions for the corresponding 
                                                                 needs to determine the proper tax treatment of the item.
Schedule K-1 (Form 1065), items J and L, in the 
Instructions for Form 1065 under Specific Instructions           Specific Instructions for Schedules K and K-1
(Schedule K-1 only). In Part III, enter the partner's 
                                                                 For the specific instructions for Form 8865, Schedule K, 
distributive share of each item of income, deduction, and 
                                                                 and Schedule K-1 (Form 8865), see the Instructions for 
credit and any other information the partner needs to 
                                                                 Form 1065.
prepare the partner's tax return.
                                                                   If the partnership is a section 721(c) partnership, 
Item A2                                                          box 20 (code AL—Section 721(c) partnership) of 
Enter the reference ID number used on Form 8865, item            Schedule K-1, Part III, must include the amounts relating 
G2(b). For details, see Item G2(b), earlier.                     to any remedial items made under the remedial allocation 
                                                                 method (described in Regulations sections 1.704-3(d) and 
Part III—line 1.  If the gain deferral method is applied to 
                                                                 1.704-3(d)(5)(iii)) for section 721(c) property. For the 
which the section 721(c) partnership adopts the remedial 
                                                                 specific partner's information relating to the remedial 
allocation method, the amounts reflected on each 
                                                                 method allocations and gain deferral method, see the 
partner's Schedule K-1 for the allocations of income, 
                                                                 Instructions for Form 1065, especially the Partner's 
gains, losses, deductions, or credits allocated to such 
                                                                 Instructions for Schedule K-1 (Form 1065).
partner must include any allocations of remedial items for 
section 721(c) property. See Regulations section                 Line 16. If the partnership had items of international tax 
1.721(c)-3(c).                                                   relevance, see the Instructions for Schedules K-2 and K-3 
For example, if the partner is the U.S. transferor of            (Form 8865) to determine if you need to check the box 
section 721(c) property, Part III, line 1, would include any     and attach Schedules K-2 and K-3.
remedial income allocated to the U.S. transferor from 
Schedule G, Part II, column (c), Remedial income 
allocated to U.S. transferor, as applicable. For partners 
other than the transferor, Part III, line 1, would include their 
share of ordinary business income (or loss) after taking 
into account any remedial items to such partner relating to 
section 721(c) property. However, Part III, line 1, would not 
include basis adjustments attributable to section 197(f)(9) 
for related foreign partners. See Regulations sections 
1.704-3(d)(5)(iii) and 1.721(c)-3. See Section 721(c) 

Instructions for Form 8865 (2023)                                                                                          17

- 18 -

Page 18 of 30 Fileid: … ions/i8865/2023/a/xml/cycle03/source 10:56 - 5-Jan-2024

The type and rule above prints on all proofs including departmental reproduction proofs. MUST be removed before printing.

page 1 of Form 8865, you don’t have to complete Form
Schedules K-2 (Form 8865), Partners’ 8865, Schedule M-1.

Distributive Share Specific Instructions for Schedule M-1
Items—International, and K-3 (Form For the specific instructions for Schedule M-1 (Form
8865), see the Instructions for Form 1065.
8865), Partner’s Share of Income,

Deductions, Credits, Schedule M-2. Analysis of Partners'
etc.—International Capital Accounts
Schedule K-2 Only Category 1 filers are required to complete Form
8865, Schedule M-2. If you answered "Yes" to item H11 on
Schedule K-2 (Form 8865) is an extension of Schedule K page 1 of Form 8865, you don’t have to complete Form
of the Form 8865 and is used to report items of 8865, Schedule M-2.
international tax relevance from the operation of a
partnership. Specific Instructions for Schedule M-2
Schedule K-3 For the specific instructions for Form 8865, Schedule M-2,
see the Instructions for Form 1065.
Schedule K-3 (Form 8865) is an extension of
Schedule K-1 (Form 8865) and is generally used to report
the partner’s share of the items reported on Schedule K-2. Schedule N. Transactions Between
The information reported on Schedule K-3 is used to Controlled Foreign Partnership and
report information on a partner’s tax or information returns.
Partners or Other Related Entities
For more information, see the Instructions for All Category 1 filers must complete Schedule N and report
Schedules K-2 and K-3 (Form 8865). all transactions of the foreign partnership during the tax
year of the partnership listed on the top of Form 8865,
Schedule L. Balance Sheets per page 1. A Category 1 filer filing a Form 8865 for other
Category 1 filers under the multiple Category 1 filers
Books exception must complete a Schedule N for itself and a
The balance sheets should agree with the partnership's separate Schedule N for each Category 1 filer not filing
books and records. Attach a statement explaining any Form 8865.
differences.
Category 2 filers are required to complete columns (a),
Only Category 1 filers are required to complete Form (b), and (c) of Schedule N. Category 2 filers don’t have to
8865, Schedule L. complete column (d).
If you answered "Yes" to item H11 on page 1 of Form Column (a). Use column (a) to report transactions
8865, you do not have to complete Form 8865, between the foreign partnership and the person filing the
Schedule L. Form 8865.
Schedule L requires balance sheets prepared and Column (d). Use column (d) to report transactions
translated into U.S. dollars in accordance with U.S. between the foreign partnership and any U.S. person with
generally accepted accounting principles (GAAP). a 10% or more direct interest in the foreign partnership. If
Exception. Generally, if the partnership or any QBU of such person also qualifies under column (b), don’t report
the partnership uses the dollar approximate separate transactions between the foreign partnership and that
transactions method (DASTM), Form 8865, Schedule L, person under column (d). Report the transactions only
should reflect the tax balance sheets prepared and under column (b).
translated into U.S. dollars according to Regulations Lines 6 and 16. Enter distributions received from other
section 1.985-3(d). partnerships and distributions from the foreign partnership
for which this form is being completed.
Specific Instructions for Schedule L
For the specific instructions for Form 8865, Schedule L, Lines 20 and 21. Enter the largest outstanding balances
see the Instructions for Form 1065. during the tax year of gross amounts borrowed from, and
gross amounts lent to, the related parties described in
columns (a) through (d). Don’t enter aggregate cash flows,
Schedule M-1. Reconciliation of year-end loan balances, average balances, or net
Income (Loss) per Books With balances. Don’t include open account balances resulting
from sales and purchases reported under other items
Income (Loss) per Return listed on Schedule N that arise and are collected in full in
Form 8865 filers aren’t required to complete Schedule M-3 the ordinary course of business.
(Form 1065), Net Income (Loss) Reconciliation for Certain
Partnerships.
Only Category 1 filers are required to complete Form
8865, Schedule M-1. If you answered "Yes" to item H11 on

18 Instructions for Form 8865 (2023)

- 19 -

Page 19 of 30    Fileid: … ions/i8865/2023/a/xml/cycle03/source                               10:56 - 5-Jan-2024

The type and rule above prints on all proofs including departmental reproduction proofs. MUST be removed before printing.

                                                               (1)(i). For an exception for certain property generating 
Schedule O (Form 8865). Transfer of                            effectively connected income, see Regulations section 
                                                               1.721(c)-3(b)(1)(ii).
Property to a Foreign Partnership
Category 3 filers must complete Schedule O.                    Column (g).  Enter the amount of gain, if any, recognized 
                                                               on the transfer. See sections 721(b) and 904(f)(3), and 
Section 721(c) partnerships.     Regulations section           Regulations section 1.721(c)-2.
1.721(c)-2 overrides section 721(a) nonrecognition of gain     Line 3. Enter your capital interests, by percentage, in the 
upon a contribution of section 721(c) property to a section    partnership immediately before and after the transfer. To 
721(c) partnership occurring on or after August 6, 2015. A     the extent your capital interest in the partnership 
U.S. transferor must recognize gain unless the gain            immediately before the transfer differs from any of your 
deferral method described in Regulations section               profit, loss, or deduction interests in the partnership at that 
1.721(c)-3 is applied. To satisfy the reporting requirements   time, enter in the supplemental information below your 
of the gain deferral method, the U.S. transferor is required   interests, by percentage, in the profit, loss, and deductions 
to report certain information for the year of the contribution at that time. To the extent your capital interest in the 
and for subsequent years. See Regulations section              partnership immediately after the transfer differs from any 
1.721(c)-6. See Section 721(c) property Section 721(c) ,       of your profit, loss, or deduction interests in the 
partnership U.S. transferor, , and Gain deferral method,       partnership at that time, enter in the supplemental 
earlier.                                                       information below your interests, by percentage, in the 
Reference ID number. Use the reference ID number               profit, loss, and deductions at that time.
shown on Form 8865, item G2(b). For details, see Item          Supplemental information required to be reported. 
G2(b), earlier.                                                Enter any information from Part I that is required to be 
                                                               reported in greater detail. Identify the applicable column 
Part I. Transfers Reportable Under Section 
                                                               number next to the information entered in this section. In 
6038B                                                          addition, if you contributed property to a foreign 
Part I is used to report the transfer of property to a foreign partnership as part of a wider transaction, briefly describe 
partnership in accordance with Regulations section             the entire transaction.
1.6038B-2(c). The completion of Part l (related property         Reporting required for the year of contribution to 
transferred to the partnership) is required by Regulations     which the gain deferral method is applied. 
section 1.6038B-2(c). Provide the information required in      Additionally, describe any section 721(c) property 
columns (a) through (g) for each contribution of property      contributed to a section 721(c) partnership and identify 
to the foreign partnership that must be reported. If you       whether the gain deferral method is applied. A U.S. 
contributed property with an FMV greater than its tax          transferor must attach to Form 8865, for the year of 
basis (appreciated property), or intangible property,          contribution, Schedule G, containing the information 
provide the information required in columns (a) through (g)    described in Regulations section 1.721(c)-6(b)(2)(i). See 
separately for each item of property transferred (except to    Regulations section 1.721(c)-6(b) for additional 
the extent you are allowed to aggregate the property           requirements.
under Regulations sections 1.704-3(e)(2), (3), and (4)).         Additional form and statement requirements.             In 
Provide a general description of each item of property         addition to the reporting requirements above, the following 
in the Supplemental Information Required To Be Reported        statements and forms must also be filed to satisfy the 
section. For all other property contributed, aggregate by      requirements for the gain deferral method.
the categories listed in Part I.                               • Schedule H (Form 8865), if certain events have 
                                                               occurred.
Column (a).  Enter the date of the transfer. If the transfer 
                                                               • Form 8838-P, Consent To Extend the Time To Assess 
was composed of a series of transactions over multiple 
                                                               Tax Pursuant to the Gain Deferral Method (Section 
dates, enter the date the transfer was completed.
                                                               721(c)). See Regulations sections 1.721(c)-6(b)(2)(ii), (b)
Column (b).  Enter the description of the property             (3)(viii), and (b)(5) for more information.
transferred.                                                   • Copy of “Statement of Waiver of Treaty Benefits under 
Column (c).  Enter the FMV of the property contributed         Section 1.721(c)-6,” if applicable. See Regulations section 
(measured as of the date of the transfer).                     1.721(c)-6(c)(1).

Column (d).  Enter your adjusted basis in the property         Annual Reporting With Respect to the Gain 
contributed on the date of the transfer. See sections 1011 
                                                               Deferral Method
through 1016 for more information on the determination of 
adjusted basis.                                                A U.S. transferor subject to the gain deferral method must 
Column (f).  If you contributed appreciated property,          annually attach Schedule G (Form 8865), containing the 
enter the method (traditional, traditional with curative       information required in Regulations section 1.721(c)-6(b)
allocations, or remedial) used by the partnership to make      (3)(i) through (vii) (and (b)(3)(ix), as applicable). See 
section 704(c) allocations for each item of property. See      Regulations section 1.721(c)-6(b)(3) for further annual 
Regulations sections 1.704-3(b), (c), and (d) for more         reporting requirements pursuant to the gain deferral 
information on these allocation methods. If the gain           method.
deferral method is applied, the remedial method must 
generally be used. See Regulations section 1.721(c)-3(b)

Instructions for Form 8865 (2023)                                                                                           19

- 20 -

Page 20 of 30 Fileid: … ions/i8865/2023/a/xml/cycle03/source 10:56 - 5-Jan-2024

The type and rule above prints on all proofs including departmental reproduction proofs. MUST be removed before printing.

Part II. Dispositions Reportable Under Section Column (g). Enter the amount of gain from column (e)
6038B allocated to you.
Use Part II to report certain dispositions by a foreign Column (h). Enter the amount of depreciation recapture
partnership in accordance with Regulations section from column (f) allocated to you. See Regulations sections
1.6038B-2(d). The completion of Part ll (related property 1.1245-1(e) and 1.1250-1(f). If you recognize any section
transferred to the partnership) is required by Regulations 1254 recapture on the partnership's disposition of natural
section 1.6038B-2(d). If you were required to report a resource recapture property, enter “See Attached” and
transfer of appreciated property to the partnership, and attach a statement figuring the amount of recapture. See
the partnership disposes of the property while you are still Regulations section 1.1254-5.
a direct or constructive partner, you must report that
disposition in Part II. If the partnership disposes of the Part III. Gain Recognition Under Section 904(f)
property in a nonrecognition transaction and receives in (3) or (f)(5)(F)
exchange substituted basis property, report the If gain recognition was required for any transfer reported in
subsequent disposition of the substituted basis property in Part I under section 904(f)(3) or (f)(5)(F), attach a
the same manner as provided for the contributed property. statement identifying the transfer and the amount of gain
See section 7701(a)(42) for the definition of substituted recognized.
basis property and Regulations section 1.704-3(a)(8) for
more information.
Schedule P (Form 8865).
A disposition by a partnership may be an acceleration
event for purposes of applying the gain deferral method. Acquisitions, Dispositions, and
The U.S. transferor may be required to recognize gain in Changes of Interests in a Foreign
an amount equal to the remaining built-in gain on the
section 721(c) property previously contributed to the Partnership
section 721(c) partnership. See Regulations section Use Schedule P to report the acquisition, disposition, and
1.721(c)-4. For acceleration event exceptions, see change of interest in a foreign partnership.
Regulations section 1.721(c)-5. Acceleration events and
Every Category 4 filer must complete Schedule P,
exceptions to an acceleration event should be reflected on
unless they qualify under the exception for certain
Part II. In addition, Schedules G and H are required to be
Category 4 filers, described earlier.
filed.
Reference ID number. Use the reference ID number
Column (a). Provide a brief description of the property
shown on Form 8865, item G2(b). For details, see Item
disposed of by the partnership. If you are reporting the
G2(b), earlier.
disposition of substituted basis property received by the
partnership in a nonrecognition transaction in exchange Part I. Acquisitions
for appreciated property contributed by you, enter “See
Attached” and attach a statement providing brief Part I is completed by Category 4 filers required to report
descriptions of both the property contributed by you to the an acquisition of an interest in a foreign partnership. See
partnership and the substituted basis property received by Categories of Filers, earlier, for more details about which
the partnership in exchange for that property. types of acquisitions must be reported.
Column (b). Enter the date that you transferred this An acquisition of a section 721(c) partnership interest
property to the partnership. If you are reporting the may be an acceleration event exception under the gain
disposition of substituted basis property received by the deferral method. In such case, Schedule H is required to
partnership in a nonrecognition transaction in exchange be filed. See Regulations section 1.721(c)-5. In this case,
for property previously contributed by you, enter “See the acquirer may become a successor U.S. transferor and
Attached” and attach a statement showing both the date may have a reporting requirement under Regulations
you transferred the appreciated property to the section 1.721(c)-6. As a result, the successor U.S.
partnership and the date the partnership exchanged the transferor is required to file Schedule G as well as, if
property for substituted basis property in a nonrecognition certain events occur, Schedule H. See Section 721(c)
transaction. See Regulations section 1.6038B-2. partnership Gain deferral method, , and U.S. transferor,
earlier.
Column (c). Enter the date that the partnership disposed
of the property. Column (a). If you acquired the interest in the foreign
partnership by purchase, gift, or inheritance, or in a
Column (d). Briefly describe how the partnership distribution from a trust, estate, partnership, or
disposed of the property (for example, by sale or corporation, enter the name, address, and identifying
exchange). number (if any) of the person from whom you acquired the
Column (e). Enter the amount of gain, if any, recognized interest.
by the partnership on the disposition of property. Column (b). Enter the date of the acquisition. If the
Column (f). Enter the amount of depreciation recapture, acquisition was composed of a series of transactions over
if any, recognized by the partnership on the disposition of multiple dates, enter the date the acquisition was
property. See Regulations sections 1.1245-1(e) and completed.
1.1250-1(f). Column (c). Enter the FMV of the interest you acquired
in the partnership (measured as of the date of acquisition).

20 Instructions for Form 8865 (2023)

- 21 -

Page 21 of 30 Fileid: … ions/i8865/2023/a/xml/cycle03/source 10:56 - 5-Jan-2024

The type and rule above prints on all proofs including departmental reproduction proofs. MUST be removed before printing.

Column (d). Enter your basis in the acquired partnership Column (d). Enter your adjusted basis in the partnership
interest (measured as of the date of acquisition). See interest disposed of immediately before the disposition.
sections 722 and 742. See section 705.
Columns (e) and (f). Enter your total direct percentage Columns (e) and (f). Enter your total direct percentage
interest in the partnership both before and immediately interest in the partnership both before and immediately
after the acquisition. To the extent your direct percentage after the disposition. To the extent your percentage
interest in the partnership differs among capital, profits, interest in the partnership differs among capital, profits,
losses, or deductions, enter “See Below” and state the losses, or deductions, enter “See Below” and state the
different percentages in Part IV. different percentages in Part IV.

Part II. Dispositions Part III. Change in Proportional Interest
This section is completed by U.S. persons who are This section is completed by U.S. persons who are
Category 4 filers because they disposed of an interest in a Category 4 filers because their direct proportional interest
foreign partnership. See Categories of Filers, earlier, for in the foreign partnership changed. See Categories of
more details about what types of dispositions must be Filers, earlier, for more details about which changes in
reported. For each disposition reported in Part II, indicate proportional interest must be reported.
in Part IV whether a statement is required by Regulations
Column (a). Briefly describe the event that caused your
section 1.751-1(a)(3) to be filed for the disposition.
interest in the partnership to change (for example, the
A disposition of a section 721(c) partnership interest admission of a new partner).
may be an acceleration event for purposes of applying the
gain deferral method. The U.S. transferor may be required Column (b). Enter the date of the change. If the change
to recognize gain in an amount equal to the remaining resulted from a series of transactions over multiple dates,
built-in gain on the section 721(c) property previously enter the date the change was completed.
contributed to the section 721(c) partnership. In this case, Column (c). Enter the FMV of your interest in the
Schedule H must also be filed. See Regulations section partnership immediately before the change.
1.721(c)-4. For acceleration event exceptions, see
Column (d). Enter your basis in your partnership interest
Regulations section 1.721(c)-5.
immediately before the change.
Column (a). Unless you disposed of the interest by
Columns (e) and (f). Enter your direct percentage
withdrawing, in whole or in part, from the partnership,
interest in the partnership both before and immediately
enter the name, address, and identifying number (if any)
after the change. To the extent your percentage interest in
of the person to whom you transferred the interest in the
the partnership differs among capital, profits, losses, or
foreign partnership.
deductions, enter “See Below” and state the different
Column (b). Enter the date of the disposition. If the percentages in Part IV.
disposition was composed of a series of transactions over
multiple dates, enter the date the disposition was Part IV. Supplemental Information Required
completed. To Be Reported
Column (c). Enter the FMV of the interest you disposed Enter any information asked for in Part I, Part II, or Part III
of in the partnership (measured as of the date of that must be reported in detail. Identify the applicable part
disposition). If you recognized gain or loss on the number and column next to the information entered in Part
disposition, state the amount of gain or loss in Part IV. See IV.
section 741.

Privacy Act and Paperwork Reduction Act Notice. We ask for the information on this form and its schedules to carry
out the Internal Revenue laws of the United States. We need this information to ensure that you are complying with the
revenue laws and to allow us to figure and collect the right amount of tax. Sections 6038, 6038B, 6038D, and 6046A
require you to provide this information. Section 6038D requires specified individuals and, upon issuance of regulations,
specified domestic entities to report specified foreign financial assets in which they have an interest. Form 8938 is
generally used to comply with this reporting requirement, but if you checked the box on Form 8865, item E, you're
choosing to use Form 8865 (in conjunction with Form 8938) to report your interests. Section 6109 requires you to provide
your identification number. Failure to provide all of the requested information in a timely manner or providing false
information may subject you to penalties.
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. However, section 6103 allows or requires the
IRS to disclose or give such information to the Department of Justice for civil and criminal litigation, and to cities, states,
the District of Columbia, and U.S. commonwealths and territories for use in administering their tax laws. We may also
disclose this information to other countries under a tax treaty, to federal and state agencies to enforce federal nontax
criminal laws, or to federal law enforcement and intelligence agencies to combat terrorism.

Instructions for Form 8865 (2023) 21

- 22 -

Page 22 of 30           Fileid: … ions/i8865/2023/a/xml/cycle03/source                                   10:56 - 5-Jan-2024

The type and rule above prints on all proofs including departmental reproduction proofs. MUST be removed before printing.

The time needed to complete and file this form and related schedules will vary depending on individual circumstances. 
The estimated burden for individual and business taxpayers filing this form is approved under OMB control number 
1545-0074 and 1545-0123 and is included in the estimates shown in the instructions for their individual and business 
income tax return. The estimated burden for all other taxpayers who file this form is shown below.

                                                                        Learning about the law       Preparing, copying, assembling, 
     Form                               Recordkeeping                   or the form                   and sending the form to the IRS
8865                                     39 hr., 30 min.                6 hr., 47 min.                   14 hr., 21 min.
Schedule G (Form 8865)                   13 hr., 52 min.                3 hr., 34 min.                    3 hr., 57 min.
Schedule H (Form 8865)                   7 hr., 53 min.                 2 hr., 17 min.                    2 hr., 30 min.
Schedule K-1 (Form 8865)                 12 hr., 12 min.                 7 hr., 31 min.                   9 hr., 14 min.
Schedule K-2 (Form 8865)                 170 hr., 16 min.               34 hr., 28 min.                  50 hr., 44 min.
Schedule K-3 (Form 8865)                 171 hr., 13 min.               35 hr., 33 min.                  51 hr., 53 min.
Schedule O (Form 8865)                   16 hr., 15 min.                5 hr., 10 min.                    5 hr., 39 min.
Schedule P (Form 8865)                   5 hr., 44 min.                 1 hr., 12 min.                   1 hr., 20 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. You can send us comments through IRS.gov/
FormComments. Or you can send your comments to the Internal Revenue Service, Tax Forms and Publications, 1111 
Constitution Ave. NW, IR-6526, Washington, DC 20224. Do not send Form 8865 to this address. Instead, see When and 
Where To File, earlier.

List of Codes Used for Schedule K-1 (Form 8865)

Box Number / Item                                                       Where to report or where to find further reporting information. 
1. Ordinary business income (loss). Determine whether the income (loss) 
is passive or nonpassive and enter on your return as follows.
     Passive loss                                                       See Partner’s Instr. (Form 1065)
     Passive income                                                     Schedule E (Form 1040), line 28, column (h)
     Nonpassive loss                                                    See Partner’s Instr. (Form 1065)
     Nonpassive income                                                  Schedule E (Form 1040), line 28, column (k)
2. Net rental real estate income (loss)                                 See Partner’s Instr. (Form 1065)
3. Other net rental income (loss)
     Net income                                                         Schedule E (Form 1040), line 28, column (h)
     Net loss                                                           See Partner’s Instr. (Form 1065)
4a. Guaranteed payment services                                         See Partner’s Instr. (Form 1065) 
4b. Guaranteed payment capital                                          See Partner’s Instr. (Form 1065)
4c. Guaranteed payment total                                            See Partner’s Instr. (Form 1065)
5. Interest income                                                      Form 1040 or 1040-SR, line 2b
6a. Ordinary dividends                                                  Form 1040 or 1040-SR, line 3b
6b. Qualified dividends                                                 Form 1040 or 1040-SR, line 3a
6c. Dividend equivalents                                                See Partner’s Instr. (Form 1065)
7. Royalties                                                            Schedule E (Form 1040), line 4
8. Net short-term capital gain (loss)                                   Schedule D (Form 1040), line 5
9a. Net long-term capital gain (loss)                                   Schedule D (Form 1040), line 12
9b. Collectibles (28%) gain (loss)                                      28% Rate Gain Worksheet, line 4 (Schedule D instructions)
9c. Unrecaptured section 1250 gain                                      See Partner’s Instr. (Form 1065)
10. Net section 1231 gain (loss)                                        See Partner’s Instr. (Form 1065)
11. Other income (loss)
     Code A. Other portfolio income (loss)                              See Partner’s Instr. (Form 1065)
     Code B. Involuntary conversions                                    See Partner’s Instr. (Form 1065)

22                                                                                             Instructions for Form 8865 (2023)

- 23 -

Page 23 of 30        Fileid: … ions/i8865/2023/a/xml/cycle03/source                                 10:56 - 5-Jan-2024

The type and rule above prints on all proofs including departmental reproduction proofs. MUST be removed before printing.

Box Number / Item                                                   Where to report or where to find further reporting information. 
Code C. Section 1256 contracts & straddles                          Form 6781, line 1
Code D. Mining exploration costs recapture                          See Pub. 535
Code E. Cancellation of debt                                        Schedule 1 (Form 1040), line 8c; or Form 982
Code F. Section 743(b) positive income adjustments                  See Partner’s Instr. (Form 1065)
Code G. Reserved for future use
Code H. Section 951 income inclusions                               See Partner’s Instr. (Form 1065)
Code I. Gain (loss) from disposition of oil, gas, thermal, or other See Partner’s Instr. (Form 1065)
mineral properties (section 59(e))
Code J. Recoveries of tax benefit items                             See Partner’s Instr. (Form 1065)
Code K. Gambling gains and losses                                   See Partner’s Instr. (Form 1065)
Code L. Any income, gain, or loss to the partnership from a         See Partner’s Instr. (Form 1065)
distribution under section 751(b) (certain distributions treated as 
sales or exchanges)
Code M. Gain eligible for section 1045 rollover (replacement stock  See Partner’s Instr. (Form 1065)
purchased by partnership)
Code N. Gain eligible for section 1045 rollover (replacement stock  See Partner’s Instr. (Form 1065)
not purchased by partnership)
Code O. Sale or exchange of QSB stock with section 1202 exclusion  See Partner’s Instr. (Form 1065)
Code P. Gain or loss on disposition of farm recapture property and  See Partner’s Instr. (Form 1065)
other items to which section 1252 applies
Code Q. Gain or loss on Fannie Mae or Freddie Mac qualified         See Partner’s Instr. (Form 1065)
preferred stock
Code R. Specially allocated ordinary gain (loss)                    See Partner’s Instr. (Form 1065)
Code S. Non-portfolio capital gain (loss)                           See Partner’s Instr. (Form 1065)
Codes T through X. Reserved for future use
Code ZZ. Other                                                      See Partner’s Instr. (Form 1065)
12. Section 179 deduction                                           See Partner’s Instr. (Form 1065)
13. Other deductions
Code A. Cash contributions (60%)                                    See Partner’s Instr. (Form 1065)
Code B. Cash contributions (30%)                                    See Partner’s Instr. (Form 1065)
Code C. Noncash contributions (50%)                                 See Partner’s Instr. (Form 1065)
Code D. Noncash contributions (30%)                                 See Partner’s Instr. (Form 1065)
Code E. Capital gain property to a 50% organization (30%)           See Partner’s Instr. (Form 1065)
Code F. Capital gain property (20%)                                 See Partner’s Instr. (Form 1065)
Code G. Contributions (100%)                                        See Partner’s Instr. (Form 1065)
Code H. Investment interest expense                                 Form 4952, line 1
Code I. Deductions—royalty income                                   Schedule E (Form 1040), line 19
Code J. Section 59(e)(2) expenditures                               See Partner’s Instr. (Form 1065)
Code K. Excess business interest expense                            See Partner’s Instr. (Form 1065)
Code L. Deductions—portfolio (other)                                Schedule A (Form 1040), line 16
Code M. Amounts paid for medical insurance                          Schedule A (Form 1040), line 1; or Schedule 1 (Form 1040), line 17
Code N. Educational assistance benefits                             See Partner’s Instr. (Form 1065)
Code O. Dependent care benefits                                     Form 2441, line 12
Code P. Preproductive period expenses                               See Partner’s Instr. (Form 1065)
Code Q. Reserved for future use
Code R. Pensions and IRAs                                           See Partner’s Instr. (Form 1065)
Code S. Reforestation expense deduction                             See Partner’s Instr. (Form 1065)
Codes T through U. Reserved for future use
Code V. Section 743(b) negative income adjustments                  See Partner’s Instr. (Form 1065)
Code W. Soil and water conservation                                 See Partner’s Instr. (Form 1065)
Code X. Film, television, and theatrical production expenditures    See Partner’s Instr. (Form 1065)

Instructions for Form 8865 (2023)                                                                                        23

- 24 -

Page 24 of 30      Fileid: … ions/i8865/2023/a/xml/cycle03/source                                          10:56 - 5-Jan-2024

The type and rule above prints on all proofs including departmental reproduction proofs. MUST be removed before printing.

Box Number / Item                                                          Where to report or where to find further reporting information. 
   Code Y. Expenditures for removal of barriers                            See Partner’s Instr. (Form 1065)
   Code Z. Itemized deductions                                             See Partner’s Instr. (Form 1065)
   Code AA. Contributions to a capital construction fund (CCF)             See Partner’s Instr. (Form 1065)
   Code AB. Penalty on early withdrawal of savings                         See Partner’s Instr. (Form 1065)
   Code AC. Interest expense allocated to debt-financed distributions      See Partner’s Instr. (Form 1065)
   Code AD. Interest expense on working interest in oil or gas             See Partner’s Instr. (Form 1065)
   Code AE. Deductions—portfolio income                                    See Partner’s Instr. (Form 1065)
   Codes AF through AJ. Reserved for future use
   Code ZZ. Other                                                          See Partner’s Instr. (Form 1065)
14. Self-employment earnings (loss) 
   Note. If you have a section 179 deduction or any partner-level 
   deductions, see the Partner’s Instr. (Form 1065) before completing 
   Schedule SE (Form 1040).
   Code A. Net earnings (loss) from self-employment                        Schedule SE, Section A or B
   Code B. Gross farming or fishing income                                 See Partner’s Instr. (Form 1065)
   Code C. Gross non-farm income                                           See Partner’s Instr. (Form 1065)
15. Credits
   Code A. Reserved for future use
   Code B. Reserved for future use
   Code C. Low-income housing credit (section 42(j)(5)) from               See Partner’s Instr. (Form 1065)
   post-2007 buildings
   Code D. Low-income housing credit (other) from post-2007 buildings See Partner’s Instr. (Form 1065)
   Code E. Qualified rehabilitation expenditures (rental real estate)      See Partner’s Instr. (Form 1065)
   Code F. Other rental real estate credits                                See Partner’s Instr. (Form 1065)
   Code G. Other rental credits                                            See Partner’s Instr. (Form 1065)
   Code H. Undistributed capital gains credit                              See Partner’s Instr. (Form 1065)
   Code I. Biofuel producer credit                                         See Partner’s Instr. (Form 1065)
   Code J. Work opportunity credit                                         See Partner’s Instr. (Form 1065)
   Code K. Disabled access credit                                          See Partner’s Instr. (Form 1065)
   Code L. Empowerment zone employment credit                              See Partner’s Instr. (Form 1065)
   Code M. Credit for increasing research activities                       See Partner’s Instr. (Form 1065)
   Code N. Credit for employer social security and Medicare taxes          See Partner’s Instr. (Form 1065)
   Code O. Backup withholding                                              See Partner’s Instr. (Form 1065)
   Code P. Unused investment credit from the qualifying advanced coal  See Partner’s Instr. (Form 1065)
   project credit or qualifying gasification project credit allocated from 
   cooperatives
   Code Q. Unused investment credit from the qualifying advanced           See Partner’s Instr. (Form 1065)
   energy project credit allocated from cooperatives
   Code R. Unused investment credit from the advanced                      See Partner’s Instr. (Form 1065)
   manufacturing investment credit allocated from cooperatives 
   Code S. Reserved for future use
   Code T. Unused investment credit from the energy credit allocated       See Partner’s Instr. (Form 1065)
   from cooperatives
   Code U. Unused investment credit from the rehabilitation credit         See Partner’s Instr. (Form 1065)
   allocated from cooperatives
   Code V. Advanced manufacturing production credit                        See Partner’s Instr. (Form 1065)
   Codes W and X. Reserved for future use
   Code Y. Clean hydrogen production credit                                See Partner’s Instr. (Form 1065)
   Code Z. Orphan drug credit                                              See Partner’s Instr. (Form 1065)
   Code AA. Enhanced oil recovery credit                                   See Partner’s Instr. (Form 1065)
   Code AB. Renewable electricity production credit                        See Partner’s Instr. (Form 1065)
   Code AC. Biodiesel, renewable diesel, or sustainable aviation fuels     See Partner’s Instr. (Form 1065)
   credit
   Code AD. New markets credit                                             See Partner’s Instr. (Form 1065)

24                                                                         Instructions for Form 8865 (2023)

- 25 -

Page 25 of 30         Fileid: … ions/i8865/2023/a/xml/cycle03/source                                  10:56 - 5-Jan-2024

The type and rule above prints on all proofs including departmental reproduction proofs. MUST be removed before printing.

Box Number / Item                                                     Where to report or where to find further reporting information. 
Code AE. Credit for small employer pension plan startup costs         See Partner’s Instr. (Form 1065)
Code AF. Credit for small employer auto-enrollment                    See Partner’s Instr. (Form 1065)
Code AG. Credit for small employer military spouse retirement plan    See Partner’s Instr. (Form 1065)
eligibility
Code AH. Credit for employer-provided childcare facilities and        See Partner’s Instr. (Form 1065)
services
Code AI. Low sulfur diesel fuel production credit                     See Partner’s Instr. (Form 1065)
Code AJ. Qualified railroad track maintenance credit                  See Partner’s Instr. (Form 1065)
Code AK. Credit for oil and gas production from marginal wells        See Partner’s Instr. (Form 1065)
Code AL. Distilled spirits credit                                     See Partner’s Instr. (Form 1065)
Code AM. Energy efficient home credit                                 See Partner’s Instr. (Form 1065)
Code AN. Alternative motor vehicle credit                             See Partner’s Instr. (Form 1065)
Code AO. Alternative fuel vehicle refueling property credit           See Partner’s Instr. (Form 1065)
Code AP. Clean renewable energy bond credit                           See Partner’s Instr. (Form 1065)
Code AQ. New clean renewable energy bond credit                       See Partner’s Instr. (Form 1065)
Code AR. Qualified energy conservation bond credit                    See Partner’s Instr. (Form 1065)
Code AS. Qualified zone academy bond credit                           See Partner’s Instr. (Form 1065)
Code AT. Qualified school construction bond credit                    See Partner’s Instr. (Form 1065)
Code AU. Build America bond credit                                    See Partner’s Instr. (Form 1065)
Code AV. Credit for employer differential wage payments               See Partner’s Instr. (Form 1065)
Code AW. Carbon oxide sequestration credit                            See Partner’s Instr. (Form 1065)
Code AX. Carbon oxide sequestration credit recapture                  See Partner’s Instr. (Form 1065)
Code AY. New clean vehicle credit                                     See Partner’s Instr. (Form 1065)
Code AZ. Qualified commercial clean vehicle credit                    See Partner’s Instr. (Form 1065)
Code BA. Credit for small employer health insurance premiums          See Partner’s Instr. (Form 1065)
Code BB. Employer credit for paid family and medical leave            See Partner’s Instr. (Form 1065)
Code BC. Eligible credits from transferor(s) under section 6418       See Partner’s Instr. (Form 1065)
Codes BD through BG. Reserved for future use
Code ZZ. Other                                                        See Partner’s Instr. (Form 1065)
17. Alternative minimum tax (AMT) items
Code A. Post-1986 depreciation adjustment                             See Partner’s Instr. (Form 1065) and the Instructions for Form 6251
Code B. Adjusted gain or loss                                         See Partner’s Instr. (Form 1065) and the Instructions for Form 6251
Code C. Depletion (other than oil & gas)                              See Partner’s Instr. (Form 1065) and the Instructions for Form 6251
Code D. Oil, gas, and geothermal—gross income                         See Partner’s Instr. (Form 1065) and the Instructions for Form 6251
Code E. Oil, gas, and geothermal—deductions                           See Partner’s Instr. (Form 1065) and the Instructions for Form 6251
Code F. Other AMT items                                               See Partner’s Instr. (Form 1065) and the Instructions for Form 6251
18. Tax-exempt income and nondeductible expenses
Code A. Tax-exempt interest income                                    Form 1040, line 2a
Code B. Other tax-exempt income                                       See Partner’s Instr. (Form 1065)
Code C. Nondeductible expenses                                        See Partner’s Instr. (Form 1065)
19. Distributions
Code A. Cash and marketable securities                                See Partner’s Instr. (Form 1065)
Code B. Distribution subject to section 737                           See Partner’s Instr. (Form 1065)
Code C. Other property                                                See Partner’s Instr. (Form 1065)
20. Other information
Code A. Investment income                                             Form 4952, line 4a
Code B. Investment expenses                                           Form 4952, line 5
Code C. Fuel tax credit information                                   Form 4136
Code D. Qualified rehabilitation expenditures (other than rental real See Partner’s Instr. (Form 1065)
estate)
Code E. Basis of energy property                                      See Partner’s Instr. (Form 1065)
Codes F through G. Recapture of low-income housing credit             See Partner’s Instr. (Form 1065)
Code H. Recapture of investment credit                                See Form 4255

Instructions for Form 8865 (2023)                                                                                        25

- 26 -

Page 26 of 30      Fileid: … ions/i8865/2023/a/xml/cycle03/source                                    10:56 - 5-Jan-2024

The type and rule above prints on all proofs including departmental reproduction proofs. MUST be removed before printing.

Box Number / Item                                                    Where to report or where to find further reporting information. 
   Code I. Recapture of other credits                                See Partner’s Instr. (Form 1065)
   Code J. Look-back interest—completed long-term contracts          See Form 8697
   Code K. Look-back interest—income forecast method                 See Form 8866
   Code L. Dispositions of property with section 179 deductions      See Partner’s Instr. (Form 1065)
   Code M. Recapture of section 179 deduction                        See Partner’s Instr. (Form 1065)
   Code N. Business interest expense (information item)              See Partner’s Instr. (Form 1065)
   Code O. Section 453(I)(3) information                             See Partner’s Instr. (Form 1065)
   Code P. Section 453A(c) information                               See Partner’s Instr. (Form 1065)
   Code Q. Section 1260(b) information                               See Partner’s Instr. (Form 1065)
   Code R. Interest allocable to production expenditures             See Partner’s Instr. (Form 1065)
   Code S. Capital construction fund (CCF) nonqualified withdrawals  See Partner’s Instr. (Form 1065)
   Code T. Depletion information—oil and gas                         See Partner’s Instr. (Form 1065)
   Code U. Section 743(b) basis adjustment                           See Partner’s Instr. (Form 1065)
   Code V. Unrelated business taxable income                         See Partner’s Instr. (Form 1065)
   Code X. Reserved for future use
   Code Y. Net investment income                                     See Partner’s Instr. (Form 1065)
   Code Z. Section 199A information                                  See Partner’s Instr. (Form 1065)
   Code AA. Section 704(c) information                               See Partner’s Instr. (Form 1065)
   Code AB. Section 751 gain (loss)                                  See Partner’s Instr. (Form 1065)
   Code AC. Section 1(h)(5) gain (loss)                              See Partner’s Instr. (Form 1065)
   Code AD. Deemed section 1250 unrecaptured gain                    See Partner’s Instr. (Form 1065)
   Code AE. Excess taxable income                                    See Partner’s Instr. (Form 1065)
   Code AF. Excess business interest income                          See Partner’s Instr. (Form 1065)
   Code AG. Gross receipts for section 448(c) (information item)     See Partner’s Instr. (Form 1065)
   Code AH. Noncash charitable contributions                         See Partner’s Instr. (Form 1065)
   Code AI. Interest and tax on deferred compensation to partners    See Partner’s Instr. (Form 1065)
   Code AJ. Excess business loss limitation                          See Partner’s Instr. (Form 1065)
   Code AK. Gain from mark-to-market election                        See Partner’s Instr. (Form 1065)
   Code AL. Section 721(c) partnership                               See Partner’s Instr. (Form 1065)
   Code AM. Section 1061 information                                 See Partner’s Instr. (Form 1065)
   Code AN. Farming and fishing business                             See Partner’s Instr. (Form 1065)
   Code AO. PTP information                                          See Partner’s Instr. (Form 1065)
   Code AP. Inversion gain                                           See Partner’s Instr. (Form 1065)
   Code AQ. Conservation reserve program payments                    See Partner’s Instr. (Form 1065)
   Code AR. IRA disclosure                                           See Partner’s Instr. (Form 1065)
   Code AS. Qualifying advanced coal project property and qualifying See Partner’s Instr. (Form 1065)
   gasification project property
   Code AT. Qualifying advanced energy project property              See Partner’s Instr. (Form 1065)
   Code AU. Advanced manufacturing investment property               See Partner’s Instr. (Form 1065)
   Code AV. Reserved for future use
   Code AW. Reportable transactions                                  See Partner’s Instr. (Form 1065)
   Code AX. Reserved for future use
   Code AY. Foreign partners, Form 8990, Schedule A                  See Partner’s Instr. (Form 1065)
   Codes AZ through BD. Reserved for future use
   Code ZZ. Other                                                    See Partner’s Instr. (Form 1065)

26                                                                                Instructions for Form 8865 (2023)

- 27 -

Page 27 of 30              Fileid: … ions/i8865/2023/a/xml/cycle03/source                                                   10:56 - 5-Jan-2024

The type and rule above prints on all proofs including departmental reproduction proofs. MUST be removed before printing.

Codes for Principal Business Activity                         Using the list of activities and codes below,    purchases raw materials and supplies them to a 
                                                         determine from which activity the business derives    subcontractor to produce the finished product, but 
and Principal Product or Service                         the largest percentage of its “total receipts.” Total retains title to the product, the business is 
                                                         receipts is defined as the sum of gross receipts or   considered a manufacturer and must use one of 
This list of Principal Business Activities and their     sales (Schedule B, line 1a); all other income         the manufacturing codes (311110–339900).
associated codes is designed to classify an              reported on Schedule B, lines 4 through 7; income           Once the Principal Business Activity is 
enterprise by the type of activity in which it is        reported on Schedule K, lines 3a, 5, 6a, and 7;       determined, enter the six-digit code from the list 
engaged to facilitate the administration of the          income or net gain reported on Schedule K, lines      below on page 1, item H7. Also enter a brief 
Internal Revenue Code. These Principal Business          8, 9a, 10, and 11; and income or net gain reported    description of the business activity in item H8.
Activity Codes are based on the North American           on Form 8825, lines 2, 19, and 20a. If the business 
Industry Classification System.
Agriculture, Forestry, Fishing,        237210 Land Subdivision                       Paper Manufacturing                    333310 Commercial & Service 
                                       237310 Highway, Street, & Bridge              322100 Pulp, Paper, & Paperboard            Industry Machinery Mfg
and Hunting                                          Construction                    Mills                                  333410 Ventilation, Heating, 
Crop Production                        237990 Other Heavy & Civil                    322200 Converted Paper Product Mfg          Air-Conditioning, & 
111100 Oilseed & Grain Farming                       Engineering Construction        Printing and Related Support                Commercial Refrigeration 
111210 Vegetable & Melon Farming       Specialty Trade Contractors                   Activities                                  Equipment Mfg
       (including potatoes & yams)     238100 Foundation, Structure, &               323100 Printing & Related Support      333510 Metalworking Machinery Mfg
111300 Fruit & Tree Nut Farming                      Building Exterior Contractors   Activities                             333610 Engine, Turbine & Power 
111400 Greenhouse, Nursery, &                        (including framing carpentry,   Petroleum and Coal Products                 Transmission Equipment Mfg
       Floriculture Production                       masonry, glass, roofing, &      Manufacturing                          333900 Other General Purpose 
                                                     siding)
111900 Other Crop Farming              238210 Electrical Contractors                 324110 Petroleum Refineries                 Machinery Mfg
                                                                                     (including integrated)                 Computer and Electronic Product 
       (including tobacco, cotton,     238220 Plumbing, Heating, &                   324120 Asphalt Paving, Roofing, &      Manufacturing
       sugarcane, hay, peanut,                       Air-Conditioning Contractors    Saturated Materials Mfg                334110 Computer & Peripheral 
       sugar beet, & all other crop                                                                                              Equipment Mfg
       farming)                        238290 Other Building Equipment               324190 Other Petroleum & Coal          334200 Communications Equipment 
Animal Production                                    Contractors                     Products Mfg                                Mfg
112111 Beef Cattle Ranching &          238300 Building Finishing                     Chemical Manufacturing                 334310 Audio & Video Equipment 
112112 Cattle Feedlots                               drywall, insulation, painting, 
       Farming                                       Contractors (including          325100 Basic Chemical Mfg                   Mfg
                                                     wallcovering, flooring, tile, & 325200 Resin, Synthetic Rubber, & 
112120 Dairy Cattle & Milk Production                finish carpentry)               Artificial & Synthetic Fibers &        334410 Semiconductor & Other 
112210 Hog & Pig Farming               238900 Other Specialty Trade                  Filaments Mfg                               Electronic Component Mfg
112300 Poultry & Egg Production                      Contractors (including site     325300 Pesticide, Fertilizer, & Other  334500 Navigational, Measuring, 
112400 Sheep & Goat Farming                          preparation)                    Agricultural Chemical Mfg                   Electromedical, & Control 
                                                                                                                                 Instruments Mfg
112510 Aquaculture (including          Manufacturing                                 325410 Pharmaceutical & Medicine       334610 Manufacturing & Reproducing 
                                                                                     Mfg                                         Magnetic & Optical Media
       shellfish & finfish farms &     Food Manufacturing                            325500 Paint, Coating, & Adhesive      Electrical Equipment, Appliance, 
112900 Other Animal Production         311110 Animal Food Mfg
       hatcheries)                                                                   Mfg                                    and Component Manufacturing
Forestry and Logging                   311200 Grain & Oilseed Milling                325600 Soap, Cleaning Compound, &      335100 Electric Lighting Equipment 
113110 Timber Tract Operations         311300 Sugar & Confectionery                  Toilet Preparation Mfg                      Mfg
                                                     Product Mfg                     325900 Other Chemical Product & 
113210 Forest Nurseries & Gathering    311400 Fruit & Vegetable Preserving           Preparation Mfg                        335200 Household Appliance Mfg
       of Forest Products                            & Specialty Food Mfg            Plastics and Rubber Products           335310 Electrical Equipment Mfg
113310 Logging                         311500 Dairy Product Mfg                      Manufacturing                          335900 Other Electrical Equipment & 
Fishing, Hunting, and Trapping         311610 Animal Slaughtering and                326100 Plastics Product Mfg                 Component Mfg
114110 Fishing                                       Processing                      326200 Rubber Product Mfg              Transportation Equipment 
                                                                                                                            Manufacturing
114210 Hunting & Trapping              311710 Seafood Product Preparation            Nonmetallic Mineral Product            336100 Motor Vehicle Mfg
Support Activities for Agriculture                   & Packaging                     Manufacturing                          336210 Motor Vehicle Body & Trailer 
and Forestry                           311800 Bakeries, Tortilla & Dry Pasta         327100 Clay Product & Refractory            Mfg
115110 Support Activities for Crop                   Mfg                             Mfg                                    336300 Motor Vehicle Parts Mfg
       Production (including cotton    311900 Other Food Mfg (including              327210 Glass & Glass Product Mfg       336410 Aerospace Product & Parts 
       ginning, soil preparation,                    coffee, tea, flavorings, &      327300 Cement & Concrete Product            Mfg
       planting, & cultivating)                      seasonings)                     Mfg                                    336510 Railroad Rolling Stock Mfg
115210 Support Activities for Animal   Beverage and Tobacco Product                  327400 Lime & Gypsum Product Mfg       336610 Ship & Boat Building
       Production (including           Manufacturing                                 327900 Other Nonmetallic Mineral       336990 Other Transportation 
       Farriers)                       312110 Soft Drink & Ice Mfg                   Product Mfg                                 Equipment Mfg
115310 Support Activities for Forestry 312120 Breweries                              Primary Metal Manufacturing            Furniture and Related Product 
Mining                                 312130 Wineries                               331110 Iron & Steel Mills & Ferroalloy Manufacturing
211120 Crude Petroleum Extraction      312140 Distilleries                           Mfg                                    337000 Furniture & Related Product 
211130 Natural Gas Extraction          312200 Tobacco Manufacturing                  331200 Steel Product Mfg From               Manufacturing
212110 Coal Mining                     Textile Mills and Textile Product             Purchased Steel                        Miscellaneous Manufacturing
212200 Metal Ore Mining                Mills                                         331310 Alumina & Aluminum              339110 Medical Equipment & 
212310 Stone Mining & Quarrying        313000 Textile Mills                          Production & Processing                     Supplies Mfg
212320 Sand, Gravel, Clay, &           314000 Textile Product Mills                  331400 Nonferrous Metal (except        339900 Other Miscellaneous 
                                                                                     Aluminum) Production & 
       Ceramic & Refractory            Apparel Manufacturing                         Processing                                  Manufacturing
       Minerals Mining & Quarrying     315100 Apparel Knitting Mills                 331500 Foundries                       Wholesale Trade
212390 Other Nonmetallic Mineral       315210 Cut & Sew Apparel                      Fabricated Metal Product               Merchant Wholesalers, Durable 
       Mining & Quarrying                            Contractors                     Manufacturing                          Goods
213110 Support Activities for Mining   315250 Cut & Sew Apparel Mfg                  332110 Forging & Stamping              423100 Motor Vehicle & Motor Vehicle 
Utilities                                            (except Contractors)            332210 Cutlery & Handtool Mfg               Parts & Supplies
                                       315990 Apparel Accessories & Other 
221100 Electric Power Generation,                    Apparel Mfg                     332300 Architectural & Structural      423200 Furniture & Home Furnishings
                                                                                     Metals Mfg                             423300 Lumber & Other Construction 
       Transmission, & Distribution    Leather and Allied Product                    332400 Boiler, Tank, & Shipping             Materials
221210 Natural Gas Distribution        Manufacturing                                 Container Mfg                          423400 Professional & Commercial 
221300 Water, Sewage, & Other          316110 Leather & Hide Tanning &               332510 Hardware Mfg                         Equipment & Supplies
       Systems                                       Finishing
221500 Combination Gas & Electric      316210 Footwear Mfg (including                332610 Spring & Wire Product Mfg       423500 Metal & Mineral (except 
Construction                                         rubber & plastics)              332700 Machine Shops; Turned                Petroleum)
                                       316990 Other Leather & Allied                 Product; & Screw, Nut, & Bolt          423600 Household Appliances & 
Construction of Buildings                            Product Mfg                     Mfg                                         Electrical & Electronic Goods
236110 Residential Building            Wood Product Manufacturing                    332810 Coating, Engraving, Heat        423700 Hardware, & Plumbing & 
                                                                                     Treating, & Allied Activities               Heating Equipment & 
       Construction                    321110 Sawmills & Wood                        332900 Other Fabricated Metal               Supplies
236200 Nonresidential Building                       Preservation                    Product Mfg                            423800 Machinery, Equipment, & 
       Construction                    321210 Veneer, Plywood, &                     Machinery Manufacturing                     Supplies
Heavy and Civil Engineering                          Engineered Wood Product                                                423910 Sporting & Recreational 
Construction                                         Mfg                             333100 Agriculture, Construction, & 
237100 Utility System Construction     321900 Other Wood Product Mfg                 Mining Machinery Mfg                        Goods & Supplies
                                                                                     333200 Industrial Machinery Mfg

                                                                                                                                                                  27

- 28 -

Page 28 of 30               Fileid: … ions/i8865/2023/a/xml/cycle03/source                                    10:56 - 5-Jan-2024

The type and rule above prints on all proofs including departmental reproduction proofs. MUST be removed before printing.

Codes for Principal Business Activity and Principal Product or Service (Continued)
423920 Toy & Hobby Goods &           Health and Personal Care Retailers  Scenic & Sightseeing                 Activities Related to Credit 
      Supplies                       456110 Pharmacies & Drug Retailers  Transportation                       Intermediation
423930 Recyclable Materials          456120 Cosmetics, Beauty Supplies,  487000 Scenic & Sightseeing          522300 Activities Related to Credit 
423940 Jewelry, Watch, Precious      & Perfume Retailers                 Transportation                               Intermediation (including loan 
      Stone, & Precious Metals       456130 Optical Goods Retailers      Support Activities for                       brokers, check clearing, & 
423990 Other Miscellaneous Durable   446190 Other Health & Personal Care Transportation                               money transmitting)
      Goods                          Retailers                           488100 Support Activities for Air    Securities, Commodity Contracts, 
Merchant Wholesalers, Nondurable     Gasoline Stations & Fuel Dealers    Transportation                       and Other Financial Investments 
Goods                                457100 Gasoline Stations (including 488210 Support Activities for Rail   and Related Activities
424100 Paper & Paper Products        convenience stores with gas)        Transportation                       523150 Investment Banking & 
424210 Drugs & Druggists' Sundries   457210 Fuel Dealers (including      488300 Support Activities for Water          Securities Intermediation
424300 Apparel, Piece Goods, &       Heating Oil & Liquefied             Transportation                       523160 Commodity Contracts 
      Notions                        Petroleum)                          488410 Motor Vehicle Towing                  Intermediation
424400 Grocery & Related Products    Clothing & Accessories Retailers    488490 Other Support Activities for  523210 Securities & Commodity 
424500 Farm Product Raw Materials    458110 Clothing & Clothing          Road Transportation                          Exchanges
424600 Chemical & Allied Products    Accessories Retailers               488510 Freight Transportation        523900 Other Financial Investment 
424700 Petroleum & Petroleum         458210 Shoe Retailers               Arrangement                                  Activities (including portfolio 
                                                                                                                      management & investment 
      Products                       458310 Jewelry Retailers            488990 Other Support Activities for          advice)
                                                                         Transportation                       Insurance Carriers and Related 
424800 Beer, Wine, & Distilled       458320 Luggage & Leather Goods      Couriers and Messengers              Activities
      Alcoholic Beverages            Retailers                           492110 Couriers & Express Delivery   524110 Direct Life, Health, & Medical 
424910 Farm Supplies                 Sporting, Hobby, Book, Musical      Services                                     Insurance Carriers
424920 Book, Periodical, &           Instrument, & Miscellaneous         492210 Local Messengers & Local      524120 Direct Insurance (except Life, 
      Newspapers                     Retailers                           Delivery                                     Health, & Medical) Carriers
424930 Flower, Nursery Stock, &      459110 Sporting Goods Retailers     Warehousing and Storage              524210 Insurance Agencies & 
      Florists' Supplies             459120 Hobby, Toy, & Game Retailers 493100 Warehousing & Storage                 Brokerages
424940 Tobacco Products &            459130 Sewing, Needlework, & Piece  (except lessors of                   524290 Other Insurance Related 
      Electronic Cigarettes          Goods Retailers                     mini-warehouses &                            Activities (including 
424950 Paint, Varnish, & Supplies    459140 Musical Instrument &         self-storage units)                          third-party administration of 
424990 Other Miscellaneous           Supplies Retailers                                                               insurance and pension funds)
      Nondurable Goods               459210 Book Retailers & News        Information                          Funds, Trusts, and Other Financial 
Wholesale Trade Agents & Agents      Dealers (including                  Motion Picture and Sound             Vehicles
and Brokers                          newsstands)                         Recording Industries                 525100 Insurance & Employee 
425120 Wholesale Trade Agents &      459310 Florists                     512100 Motion Picture & Video                Benefit Funds
      Brokers                        459410 Office Supplies & Stationery Industries (except video             525910 Open-End Investment Funds 
                                     Retailers                           rental)                                      (Form 1120-RIC,)
Retail Trade                         459420 Gift, Novelty, & Souvenir    512200 Sound Recording Industries    525920 Trusts, Estates, & Agency 
Motor Vehicle and Parts Dealers      Retailers                           Publishing Industries                        Accounts
441110 New Car Dealers               459510 Used Merchandise Retailers   513110 Newspaper Publishers          525990 Other Financial Vehicles 
441120 Used Car Dealers              459910 Pet & Pet Supplies Retailers 513120 Periodical Publishers                 (including mortgage REITs 
441210 Recreational Vehicle Dealers  459920 Art Dealers                  513130 Book Publishers                       and closed-end investment 
                                                                                                                      funds)
441222 Boat Dealers                  459930 Manufactured (Mobile) Home   513140 Directory & Mailing List      “Offices of Bank Holding Companies” 
441227 Motorcycle, ATV, & All Other  Dealers                             Publishers                           and “Offices of Other Holding 
      Motor Vehicle Dealers          459990 All Other Miscellaneous      513190 Other Publishers              Companies” are located under 
441300 Automotive Parts,             Retailers (including tobacco,       513210 Software Publishers           Management of Companies 
      Accessories, & Tire Retailers  candle, & trophy retailers)                                              (Holding Companies) below.
Building Material and Garden         Nonstore Retailers                  Broadcasting & Content Providers 
                                                                         & Telecommunications
Equipment and Supplies Dealers       Nonstore retailers sell all         516100 Radio & Television            Real Estate and Rental and 
444110 Home Centers                  types of merchandise using          Broadcasting Stations                Leasing
444120 Paint & Wallpaper Stores      such methods as Internet, 
                                     mail-order catalogs,                516210 Media Streaming, Social 
444140 Hardware Retailers            interactive television, or direct   Networks, & Other Content            Real Estate
444180 Other Building Material       sales. These types of               Providers                            531110 Lessors of Residential 
      Dealers                        Retailers should select the         517000 Telecommunications                    Buildings & Dwellings 
444200 Lawn & Garden Equipment &     PBA associated with their           (including Wired, Wireless,                  (including equity REITs)
      Supplies Retailers             primary line of products sold.      Satellite, Cable & Other             531120 Lessors of Nonresidential 
                                     For example, establishments         Program Distribution,                        Buildings (except 
Food and Beverage Retailers          primarily selling prescription      Resellers, Agents, Other                     Mini-Warehouses) (including 
445110 Supermarkets and Other        and non-prescription drugs,         Telecommunications, &                        equity REITs)
      Grocery (except                select PBA code 456110              Internet Service Providers)          531130 Lessors of Mini-Warehouses 
      Convenience) Retailers         Pharmacies & Drug Retailers.        Data Processing, Web Search                  & Self-Storage Units 
445131 Convenience Retailers         Transportation and                  Portals, & Other Information                 (including equity REITs)
445132 Vending Machine Operators                                         Services                             531190 Lessors of Other Real Estate 
445230 Fruit & Vegetable Retailers   Warehousing                         518210 Computing Infrastructure              Property (including equity 
445240 Meat Retailers                Air, Rail, and Water Transportation Providers, Data Processing,                  REITs)
445250 Fish & Seafood Retailers      481000 Air Transportation           Web Hosting, & Related               531210 Offices of Real Estate Agents 
                                                                         Services                                     & Brokers
445291 Baked Goods Retailers         482110 Rail Transportation          519200 Web Search Portals,           531310 Real Estate Property 
445292 Confectionery & Nut Retailers 483000 Water Transportation         Libraries, Archives, & Other                 Managers
445298 All Other Specialty Food      Truck Transportation                Info. Services                       531320 Offices of Real Estate 
      Retailers                      484110 General Freight Trucking,    Finance and Insurance                        Appraisers
445320 Beer, Wine, & Liquor          Local                                                                    531390 Other Activities Related to 
      Retailers                      484120 General Freight Trucking,    Depository Credit Intermediation             Real Estate
Furniture and Home Furnishings       Long-Distance                       522110 Commercial Banking            Rental and Leasing Services
Retailers                            484200 Specialized Freight Trucking 522130 Credit Unions                 532100 Automotive Equipment Rental 
449110 Furniture Retailers           Transit and Ground Passenger        522180 Savings Institutions & Other          & Leasing
449121 Floor Covering Retailers      Transportation                      Depository Credit                    532210 Consumer Electronics & 
449122 Window Treatment Retailers    485110 Urban Transit Systems        Intermediation                               Appliances Rental
449129 All Other Home Furnishings    485210 Interurban & Rural Bus       Nondepository Credit                 532281 Formal Wear & Costume 
      Retailers                      Transportation                      Intermediation                               Rental
Electronics and Appliance Retailers  485310 Taxi Service                 522210 Credit Card Issuing           532282 Video Tape & Disc Rental
449210 Electronics & Appliance       485320 Limousine Service            522220 Sales Financing               532283 Home Health Equipment 
      Retailers (including           485410 School & Employee Bus        522291 Consumer Lending                      Rental
      computers)                     Transportation                      522292 Real Estate Credit (including 532284 Recreational Goods Rental
General Merchandise Retailers        485510 Charter Bus Industry         mortgage bankers &                   532289 All Other Consumer Goods 
                                                                         originators)                                 Rental
455110 Department Stores             485990 Other Transit & Ground       522299 Intl, Secondary Market, &     532310 General Rental Centers
455210 Warehouse Clubs,              Passenger Transportation            Other Nondepo. Credit                532400 Commercial & Industrial 
      Supercenters, & Other Merch    Pipeline Transportation             Intermediation                               Machinery & Equipment 
      Retailers                      486000 Pipeline Transportation                                                   Rental & Leasing

          28

- 29 -

Page 29 of 30              Fileid: … ions/i8865/2023/a/xml/cycle03/source                                     10:56 - 5-Jan-2024

The type and rule above prints on all proofs including departmental reproduction proofs. MUST be removed before printing.

Codes for Principal Business Activity and Principal Product or Service (Continued)
Lessors of Nonfinancial Intangible  561210 Facilities Support Services   Home Health Care Services            Other Services
Assets (except copyrighted works)   561300 Employment Services           621610 Home Health Care Services     Repair and Maintenance
533110 Lessors of Nonfinancial      561410 Document Preparation          Other Ambulatory Health Care         811110 Automotive Mechanical & 
Intangible Assets (except           Services                             Services                                  Electrical Repair & 
copyrighted works)                  561420 Telephone Call Centers        621900 Other Ambulatory Health            Maintenance
Professional, Scientific, and       561430 Business Service Centers      Care Services (including             811120 Automotive Body, Paint, 
Technical Services                  (including private mail centers      ambulance services & blood                Interior, & Glass Repair
                                    & copy shops)                        & organ banks)
Legal Services                      561440 Collection Agencies           Hospitals                            811190 Other Automotive Repair & 
541110 Offices of Lawyers           561450 Credit Bureaus                622000 Hospitals                          Maintenance (including oil 
                                                                                                                   change & lubrication shops & 
541190 Other Legal Services         561490 Other Business Support        Nursing and Residential Care              car washes)
Accounting, Tax Preparation,        Services (including                  Facilities                           811210 Electronic & Precision 
Bookkeeping, and Payroll Services   repossession services, court         623000 Nursing & Residential Care         Equipment Repair & 
541211 Offices of Certified Public  reporting, & stenotype               Facilities                                Maintenance
Accountants                         services)                            Social Assistance                    811310 Commercial & Industrial 
541213 Tax Preparation Services     561500 Travel Arrangement &          624100 Individual & Family Services       Machinery & Equipment 
541214 Payroll Services             Reservation Services                 624200 Community Food & Housing,          (except Automotive & 
541219 Other Accounting Services    561600 Investigation & Security      & Emergency & Other Relief                Electronic) Repair & 
                                    Services                             Services                                  Maintenance
Architectural, Engineering, and     561710 Exterminating & Pest Control  624310 Vocational Rehabilitation     811410 Home & Garden Equipment & 
Related Services                    Services                             Services                                  Appliance Repair & 
                                                                                                                   Maintenance
541310 Architectural Services       561720 Janitorial Services           624410 Childcare Services            811420 Reupholstery & Furniture 
541320 Landscape Architecture       561730 Landscaping Services                                                    Repair
Services                            561740 Carpet & Upholstery Cleaning  Arts, Entertainment, and 
541330 Engineering Services         Services                             Recreation                           811430 Footwear & Leather Goods 
                                                                                                                   Repair
541340 Drafting Services            561790 Other Services to Buildings & Performing Arts, Spectator Sports,   811490 Other Personal & Household 
541350 Building Inspection Services Dwellings                            and Related Industries                    Goods Repair & Maintenance
541360 Geophysical Surveying &      561900 Other Support Services        711100 Performing Arts Companies     Personal and Laundry Services
Mapping Services                    (including packaging &               711210 Spectator Sports (including   812111 Barber Shops
Geophysical) Services               convention & trade show 
541370 Surveying & Mapping (except  labeling services, &                 sports clubs & racetracks)           812112 Beauty Salons
541380 Testing Laboratories &       organizers)                          711300 Promoters of Performing Arts, 812113 Nail Salons
Services                            Waste Management and                 Sports, & Similar Events
Specialized Design Services         Remediation Services                 711410 Agents & Managers for         812190 Other Personal Care Services 
541400 Specialized Design Services  562000 Waste Management &            Artists, Athletes, Entertainers,          (including diet & weight 
(including interior, industrial,    Remediation Services                 & Other Public Figures                    reducing centers)
                                                                         711510 Independent Artists, Writers, 812210 Funeral Homes & Funeral 
graphic, & fashion design)          Educational Services                 & Performers                              Services
Computer Systems Design and         611000 Educational Services          Museums, Historical Sites, and       812220 Cemeteries & Crematories
Related Services                    (including schools, colleges,        Similar Institutions                 812310 Coin-Operated Laundries & 
541511 Custom Computer              & universities)                      712100 Museums, Historical Sites, &       Drycleaners
Programming Services                                                     Similar Institutions                 812320 Drycleaning & Laundry 
541512 Computer Systems Design      Health Care and Social                                                         Services (except 
                                                                         Amusement, Gambling, and 
Services                            Assistance                           Recreation Industries                     Coin-Operated)
541513 Computer Facilities          Offices of Physicians and Dentists   713100 Amusement Parks & Arcades     812330 Linen & Uniform Supply
Management Services                                                      713200 Gambling Industries           812910 Pet Care (except Veterinary) 
541519 Other Computer Related       621111 Offices of Physicians (except                                           Services
Services                            mental health specialists)           713900 Other Amusement &             812920 Photofinishing
Other Professional, Scientific, and 621112 Offices of Physicians, Mental Recreation Industries 
Technical Services                  Health Specialists                   (including golf courses, skiing      812930 Parking Lots & Garages
541600 Management, Scientific, &    621210 Offices of Dentists           facilities, marinas, fitness         812990 All Other Personal Services
                                                                         centers, & bowling centers)
Technical Consulting                Offices of Other Health                                                   Religious, Grantmaking, Civic, 
Services                            Practitioners                        Accommodation and Food               Professional, and Similar 
                                                                                                              Organizations
541700 Scientific Research &        621310 Offices of Chiropractors      Services                             813000 Religious, Grantmaking, 
Development Services                621320 Offices of Optometrists       Accommodation                             Civic, Professional, & Similar 
541800 Advertising & Public         621330 Offices of Mental Health      721110 Hotels (except Casino Hotels)      Organizations (including 
Relations, & Related Services       Practitioners (except                & Motels                                  condominium and 
541910 Marketing Research & Public  Physicians)                                                                    homeowners associations)
Opinion Polling                     621340 Offices of Physical,          721120 Casino Hotels
541920 Photographic Services        Occupational & Speech                721191 Bed & Breakfast Inns          Other
541930 Translation & Interpretation Therapists, & Audiologists           721199 All Other Traveler            999999 Unclassified Establishments 
Services                            621391 Offices of Podiatrists        Accommodation                             (unable to classify)
541940 Veterinary Services          621399 Offices of All Other          721210 RV (Recreational Vehicle) 
541990 All Other Professional,      Miscellaneous Health                 Parks & Recreational Camps
Scientific, & Technical             Practitioners                        721310 Rooming & Boarding Houses, 
Services                            Outpatient Care Centers              Dormitories, & Workers’ 
Management of Companies             621410 Family Planning Centers       Camps
                                    621420 Outpatient Mental Health &    Food Services and Drinking Places
(Holding Companies)                 Substance Abuse Centers              722300 Special Food Services 
551111 Offices of Bank Holding      621491 HMO Medical Centers           (including food service 
Companies                           621492 Kidney Dialysis Centers       contractors & caterers)
551112 Offices of Other Holding     621493 Freestanding Ambulatory       722410 Drinking Places (Alcoholic 
Companies                           Surgical & Emergency                 Beverages)
Administrative and Support and      Centers                              722511 Full Service Restaurants
                                    621498 All Other Outpatient Care     722513 Limited Service Restaurants
Waste Management and                Centers                              722514 Cafeterias, Grill Buffets, 
Remediation Services                Medical and Diagnostic               Buffets
                                    Laboratories                         722515 Snack & Nonalcoholic 
Administrative and Support          621510 Medical & Diagnostic          Beverage Bars
Services                            Laboratories
561110 Office Administrative 
Services

                                                                                                                                                29

- 30 -

Page 30 of 30              Fileid: … ions/i8865/2023/a/xml/cycle03/source                     10:56 - 5-Jan-2024

The type and rule above prints on all proofs including departmental reproduction proofs. MUST be removed before printing.

Index
 
                                          Foreign Partnership 6                     Schedule G (Form 8865). Statement of 
10% interest 6                            Future Developments  1                     Application of the Gain Deferral Method 
50% interest 6                                                                       Under Section 721(c)   12
                                          G                                         Schedule H (Form 8865). Acceleration 
A                                                                                    Events and Exceptions Reporting 
                                          General Instructions 1                     Relating to Gain Deferral Method Under 
Acquisitions 4                            General Reporting Instructions for         Section 721(c) 14
Analysis of partners' capital accounts 18   Schedule K-1  17                        Schedule N. Transactions Between 
Attached statements     17                                                           Controlled Foreign Partnership and 
                                                                                     Partners or Other Related Entities   18
                                          H                                         Schedule O (Form 8865). Transfer of 
B                                         Hyperinflationary Exception 9              Property to a Foreign Partnership    19
Balance sheets per books      18                                                    Schedule P (Form 8865). Acquisitions, 
                                          I                                          Dispositions, and Changes of Interests 
                                                                                     in a Foreign Partnership 20
C                                         Identifying Numbers and Addresses   8     Schedules K-2 (Form 8865), Partners’ 
Categories of Filers 3                                                               Distributive Share Items—International, 
  Category 1 filer 3 9 11,  ,             L                                          and K-3 (Form 8865), Partner’s Share of 
  Category 2 filer 3 9,                                                              Income, Deductions, Credits, 
  Category 3 filer 3 9 11,  ,             List of Codes Used in Schedule K-1 (Form   etc.—International   18
                                            8865) 22
  Category 4 filer 4 9,                                                             Schedules K, Partners' Distributive Share 
                                                                                     Items and K-1 (Form 8865), Partner’s 
Change in a Proportional Interest 6       P                                          Share of Income, Deductions, Credits, 
Changes in Proportional Interests 4                                                  Etc. 16
Consolidated Return     8                 Partnership 6                             Specific Instructions 7
Constructive Ownership        6           Penalties 7
Control of a Corporation      6           Purpose of Form 2                         T
Corrections to Form 8865      7
                                          R                                         Tax Year 8
                                                                                    Treaty-based Return Positions        7
D                                         Relief for Category 1 and 2 filers 5
Definitions 6                                                                       U
Dispositions 4                            S
                                                                                    U.S. Person 6
                                          Schedule A-1. Certain partners of Foreign 
E                                           Partnership 11
Exceptions for Filing:                    Schedule A-2. Foreign Partners of Section W
  Category 4 filers 5                       721(c) Partnership 11                   What’s New  1
Exceptions to Filing 4                    Schedule A-3. Affiliation Schedule  12    When To File 5
  Constructive owners   4                 Schedule A. Constructive Ownership of     Who Must File 2
                                            Partnership Interest 11
  Multiple Category 1 filers  4           Schedule B. Income Statement–Trade or 
                                            Business Income    12
F                                         Schedule D. Capital Gains and Losses   12
Foreign Address    8

            30

PDF file checksum: 614286249

(Plugin #1/9.12/13.0)