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

Return of U.S. Persons With Respect to Certain Foreign Partnerships
2023 Form 8865
Form

8865

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

2023

Attach to your tax return.
Go to www.irs.gov/Form8865 for instructions and the latest information.

Information furnished for the foreign partnership’s tax year
beginning
, 2023, and ending
, 20

Department of the Treasury
Internal Revenue Service

Attachment
Sequence No. 865

Filer’s identification number

Name of person filing this return

A Category of filer (see Categories of Filers in the instructions and check applicable box(es)):

Filer’s address (if you aren’t filing this form with your tax return)

1

2

3

4

B Filer’s tax year beginning

C

OMB No. 1545-1668

Filer’s share of liabilities: Nonrecourse $

, 20

, and ending

Qualified nonrecourse financing $

D

If filer is a member of a consolidated group but not the parent, enter the following information about the parent:

E
F

Name
EIN
Address
Check if any excepted specified foreign financial assets are reported on this form. See instructions
Information about certain other partners (see instructions)
(1) Name

G1

(2) Address

, 20

Other $

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(3) Identification number

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(4) Check applicable box(es)
Category 1

Category 2

Constructive owner

2(a) EIN (if any)

Name and address of foreign partnership

2(b) Reference ID number (see instructions)
3 Country under whose laws organized
4

H
1

Date of
organization

5 Principal place of
business

6 Principal business
activity code number

7 Principal business
activity

Provide the following information for the foreign partnership’s tax year:
Name, address, and identification number of agent (if any) in the
United States

8a Functional currency

8b Exchange rate
(see instructions)

2 Check if the foreign partnership must file:
Form 1042

Form 8804

Form 1065

Service Center where Form 1065 is filed:

3

5

4 Name and address of person(s) with custody of the books and records of the
foreign partnership, and the location of such books and records, if different

Name and address of foreign partnership’s agent in country of
organization, if any

6

During the tax year, did the foreign partnership pay or accrue any interest or royalty for which the deduction
allowed under section 267A? See instructions . . . . . . . . . . . . . . . . . . . .
If “Yes,” enter the total amount of the disallowed deductions . . . . . . . . . . . . . . . .
Is the partnership a section 721(c) partnership, as defined in Regulations section 1.721(c)-1(b)(14)? . . . . .

7

Were any special allocations made by the foreign partnership?

8

Enter the number of Forms 8858, Information Return of U.S. Persons With Respect to Foreign Disregarded Entities
(FDEs) and Foreign Branches (FBs), attached to this return. See instructions
. . . . . . . . . . . . .
How is this partnership classified under the law of the country in which it’s organized?
. .

9
10a

b
11

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is not
Yes
. .
. . $
. .
Yes
Yes
. . .

No
No
No

Does the filer have an interest in the foreign partnership, or an interest indirectly through the foreign partnership, that’s a
separate unit under Regulations section 1.1503(d)-1(b)(4) or part of a combined separate unit under Regulations section
1.1503(d)-1(b)(4)(ii)? If “No,” skip question 10b . . . . . . . . . . . . . . . . . . . . . .

Yes

No

If “Yes,” does the separate unit or combined separate unit have a dual consolidated loss, as defined in Regulations
section 1.1503(d)-1(b)(5)(ii)? . . . . . . . . . . . . . . . . . . . . . . . . . . .

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Yes

No

.

Yes

No

Does this partnership meet both of the following requirements?
1. The partnership’s total receipts for the tax year were less than $250,000.

2. The value of the partnership’s total assets at the end of the tax year was less than $1 million.
If “Yes,” don’t complete Schedules L, M-1, and M-2.
For Privacy Act and Paperwork Reduction Act Notice, see the separate instructions.

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Cat. No. 25852A

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Form 8865 (2023)

Page 2

Form 8865 (2023)

12a

Is the filer of this Form 8865 claiming a foreign-derived intangible income (FDII) deduction (under section 250) with
respect to any transaction with the foreign partnership? If “Yes,” complete lines 12b, 12c, and 12d. See instructions . .

b

Enter the amount of gross receipts derived from all sales of general property to the foreign partnership that the filer
included in its computation of foreign-derived deduction eligible income (FDDEI) . . . . . . . . . . . .

c

Enter the amount of gross receipts derived from all sales of intangible property to the foreign partnership that the filer
included in its computation of FDDEI . . . . . . . . . . . . . . . . . . . . . . . . .

d

Enter the amount of gross receipts derived from all services provided to the foreign partnership that the filer included in
its computation of FDDEI . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

13

Enter the number of foreign partners subject to section 864(c)(8) as a result of transferring all or a portion of an interest in
the partnership or of receiving a distribution from the partnership . . . . . . . . . . . . . . . . .

14

At any time during the tax year were any transfers between the partnership and its partners subject to the disclosure
requirements of Regulations section 1.707-8?. . . . . . . . . . . . . . . . . . . . . . .

No

Yes

No

Under penalties of perjury, I declare that I have examined this return, including accompanying schedules and statements, and to the best of my knowledge
and belief, it is true, correct, and complete. Declaration of preparer (other than general partner or limited liability company member) is based on all
information of which preparer has any knowledge.

Sign Here Only
if You’re Filing
This Form
Separately and
Not With Your
Tax Return.

Paid
Preparer
Use Only

Yes

Date

Signature of general partner or limited liability company member
Print/Type preparer’s name

Preparer’s signature

Date

Check
if PTIN
self-employed

Firm’s name

Firm’s EIN

Firm’s address

Phone no.

Schedule A

Constructive Ownership of Partnership Interest. Check the boxes that apply to the filer. If you check
box b, enter the name, address, and U.S. taxpayer identification number (if any) of the person(s) whose
interest you constructively own. See instructions.
a

b

Owns a direct interest

Name

Schedule A-1

Address

Check if
foreign
person

Identification number (if any)

Check if
direct
partner

Certain Partners of Foreign Partnership (see instructions)
Name

Schedule A-2

Owns a constructive interest

Address

Check if
foreign
person

Identification number (if any)

Foreign Partners of Section 721(c) Partnership (see instructions)

Name of foreign
partner

Address

Country of
organization
(if any)

U.S. taxpayer
identification number
(if any)

Percentage interest

Check if related to
U.S. transferor

Capital

Profits

%
%

Does the partnership have any other foreign person as a direct partner?

Schedule A-3

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%
%
Yes

No

Affiliation Schedule. List all partnerships (foreign or domestic) in which the foreign partnership owns a
direct interest or indirectly owns a 10% interest.
Name

Address

EIN
(if any)

Total ordinary
income or loss

Check if
foreign
partnership

Form 8865 (2023)

Page 3

Form 8865 (2023)

Schedule B

Income Statement—Trade or Business Income

Deductions

Income (Loss)

Tax and Payment

Deductions (see instructions for limitations)

Income

Caution: Include only trade or business income and expenses on lines 1a through 22 below. See the instructions for more information.
1 a Gross receipts or sales . . . . . . . . . . . . . . .
1a
b Less returns and allowances . . . . . . . . . . . . .
1b
1c
2
Cost of goods sold . . . . . . . . . . . . . . . . . . . . . . . . .
2
3
Gross profit. Subtract line 2 from line 1c
. . . . . . . . . . . . . . . . . .
3
4
Ordinary income (loss) from other partnerships, estates, and trusts (attach statement) . . . .
4
5
Net farm profit (loss) (attach Schedule F (Form 1040))
. . . . . . . . . . . . . .
5
6
Net gain (loss) from Form 4797, Part II, line 17 (attach Form 4797)
. . . . . . . . . .
6
7
Other income (loss) (attach statement) . . . . . . . . . . . . . . . . . . .
7
8
Total income (loss). Combine lines 3 through 7 . . . . . . . . . . . . . . . .
8
9
Salaries and wages (other than to partners) (less employment credits) . . . . . . . . .
9
10
Guaranteed payments to partners
. . . . . . . . . . . . . . . . . . . .
10
11
Repairs and maintenance . . . . . . . . . . . . . . . . . . . . . . .
11
12
Bad debts . . . . . . . . . . . . . . . . . . . . . . . . . . . .
12
13
Rent . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
13
14
Taxes and licenses . . . . . . . . . . . . . . . . . . . . . . . . .
14
15
Interest (see instructions) . . . . . . . . . . . . . . . . . . . . . . .
15
16 a Depreciation (if required, attach Form 4562) . . . . . . . .
16a
b Less depreciation reported elsewhere on return . . . . . . .
16b
16c
17
Depletion (Don’t deduct oil and gas depletion.) . . . . . . . . . . . . . . . .
17
18
Retirement plans, etc. . . . . . . . . . . . . . . . . . . . . . . . .
18
19
Employee benefit programs . . . . . . . . . . . . . . . . . . . . . .
19
20
Other deductions (attach statement) . . . . . . . . . . . . . . . . . . . .
20
21
Total deductions. Add the amounts shown in the far right column for lines 9 through 20 . . .
21
22
Ordinary business income (loss) from trade or business activities. Subtract line 21 from line 8 .
22
23
Reserved for future use . . . . . . . . . . . . . . . . . . . . . . . .
23
24
Reserved for future use . . . . . . . . . . . . . . . . . . . . . . . .
24
25
Reserved for future use . . . . . . . . . . . . . . . . . . . . . . . .
25
26
Reserved for future use . . . . . . . . . . . . . . . . . . . . . . . .
26
27
Reserved for future use . . . . . . . . . . . . . . . . . . . . . . . .
27
28
Reserved for future use . . . . . . . . . . . . . . . . . . . . . . . .
28
29
Reserved for future use . . . . . . . . . . . . . . . . . . . . . . . .
29
30
Reserved for future use . . . . . . . . . . . . . . . . . . . . . . . .
30
Total amount
Schedule K
Partners’ Distributive Share Items
1
Ordinary business income (loss) (Schedule B, line 22) . . . . . . . . . . . . . .
1
2
Net rental real estate income (loss) (attach Form 8825)
. . . . . . . . . . . . .
2
3a Other gross rental income (loss)
. . . . . . . . . . .
3a
b Expenses from other rental activities (attach statement) . . . .
3b
c Other net rental income (loss). Subtract line 3b from line 3a . . . . . . . . . . . .
3c
4
Guaranteed payments: a Services
4a
b Capital
4b
c Total. Add line 4a and line 4b . . . . . . . . . . . . . . . . . . . . .
4c
5
Interest income . . . . . . . . . . . . . . . . . . . . . . . . . .
5
6
Dividends and dividend equivalents: a Ordinary dividends . . . . . . . . . . .
6a
b Qualified dividends . .
6b
c Dividend equivalents . .
6c
7
Royalties . . . . . . . . . . . . . . . . . . . . . . . . . . . .
7
8
Net short-term capital gain (loss) (attach Schedule D (Form 1065)) . . . . . . . . . .
8
9a Net long-term capital gain (loss) (attach Schedule D (Form 1065)) . . . . . . . . . .
9a
b Collectibles (28%) gain (loss)
. . . . . . . . . . . .
9b
c Unrecaptured section 1250 gain (attach statement)
. . . . .
9c
10
Net section 1231 gain (loss) (attach Form 4797) . . . . . . . . . . . . . . . .
10
11
Other income (loss) (see instructions) (1) Type
(2) Amount
11(2)
12
Section 179 deduction (attach Form 4562) . . . . . . . . . . . . . . . . .
12
13a Contributions . . . . . . . . . . . . . . . . . . . . . . . . . .
13a
b Investment interest expense . . . . . . . . . . . . . . . . . . . . . .
13b
13c(2)
(2) Amount
c Section 59(e)(2) expenditures: (1) Type
d Other deductions (see instructions) (1) Type
(2) Amount
13d(2)

Form 8865 (2023)

Page 4

Form 8865 (2023)

Other Information

Alternative
Minimum Tax
(AMT) Items

International

Credits

SelfEmployment

Schedule K

Partners’ Distributive Share Items (continued)

14a
b
c
15a
b
c
d
e
f

Net earnings (loss) from self-employment . . . . . . . . . . .
Gross farming or fishing income
. . . . . . . . . . . . .
Gross nonfarm income . . . . . . . . . . . . . . . .
Low-income housing credit (section 42(j)(5)) . . . . . . . . . .
Low-income housing credit (other) . . . . . . . . . . . . .
Qualified rehabilitation expenditures (rental real estate) (attach Form 3468)
Type
Other rental real estate credits (see instructions)
Type
Other rental credits (see instructions)
Other credits (see instructions)
Type

16

Attach Schedule K-2 (Form 8865), Partners’ Distributive Share Items—International, and
check this box to indicate that you are reporting items of international tax relevance . . .

17a
b
c
d
e
f
18a
b
c
19a
b
20a
b
c
21

Post-1986 depreciation adjustment . . . . .
Adjusted gain or loss . . . . . . . . . .
Depletion (other than oil and gas) . . . . . .
Oil, gas, and geothermal properties—gross income
Oil, gas, and geothermal properties—deductions .
Other AMT items (attach statement) . . . . .
Tax-exempt interest income . . . . . . . .
Other tax-exempt income
. . . . . . . .
Nondeductible expenses . . . . . . . . .
Distributions of cash and marketable securities . .
Distributions of other property . . . . . . .
Investment income
. . . . . . . . . .
Investment expenses . . . . . . . . . .
Other items and amounts (attach statement)
Total foreign taxes paid or accrued . . . . . .

Schedule L

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14a
14b
14c
15a
15b
15c
15d
15e
15f

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17a
17b
17c
17d
17e
17f
18a
18b
18c
19a
19b
20a
20b

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21

Balance Sheets per Books. (Not required if Item H11, page 1, is answered “Yes.”)
Assets

1
2a
b
3
4
5
6
7a
b
8
9a
b
10a
b
11
12a
b

Total amount

Beginning of tax year
(a)
(b)

End of tax year
(c)

(d)

Cash . . . . . . . . . . . . .
Trade notes and accounts receivable . . .
Less allowance for bad debts . . . . . .
Inventories
. . . . . . . . . . .
U.S. Government obligations . . . . . .
Tax-exempt securities . . . . . . . .
Other current assets (attach statement) . . .
Loans to partners (or persons related to partners)
Mortgage and real estate loans . . . . .
Other investments (attach statement) . . .
Buildings and other depreciable assets . . .
Less accumulated depreciation . . . . .
Depletable assets . . . . . . . . .
Less accumulated depletion . . . . . .
Land (net of any amortization) . . . . . .
Intangible assets (amortizable only) . . . .
Less accumulated amortization . . . . .
Form 8865 (2023)

Page 5

Form 8865 (2023)

Schedule L

Balance Sheets per Books. (Not required if Item H11, page 1, is answered “Yes.”) (continued)
Beginning of tax year
(a)
(b)

End of tax year
(c)

(d)

13
14

Other assets (attach statement) . . . .
Total assets . . . . . . . . . . .
Liabilities and Capital
15
Accounts payable . . . . . . . . .
16
Mortgages, notes, bonds payable in less than 1 year
17
Other current liabilities (attach statement) .
18
All nonrecourse loans . . . . . . . .
19a Loans from partners (or persons related to partners)
b Mortgages, notes, bonds payable in 1 year or more
20
Other liabilities (attach statement) . . . .
21
Partners’ capital accounts . . . . . .
22
Total liabilities and capital . . . . . .

Schedule M

Balance Sheets for Interest Allocation
(a)
Beginning of
tax year

1
2

Total U.S. assets . .
Total foreign assets:
a Passive category . .
b General category . .
c Other (attach statement)

Schedule M-1

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Reconciliation of Income (Loss) per Books With Income (Loss) per Return. (Not required if Item
H11, page 1, is answered “Yes.”)

1

Net income (loss) per books .

2

Income included on Schedule K,
lines 1, 2, 3c, 5, 6a, 7, 8, 9a, 10,
and 11, not recorded on books
this tax year (itemize):
$

3

Guaranteed payments (other
than health insurance) . . .

4

Expenses recorded on books
this tax year not included on
Schedule K, lines 1 through
13d, and 21 (itemize):
a Depreciation $
b Travel and entertainment $

5

Add lines 1 through 4 .

Schedule M-2
1
2

3
4

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6

Income recorded on books this tax
year not included on Schedule K,
lines 1 through 11 (itemize):
a Tax-exempt interest $

7

Deductions included on Schedule
K, lines 1 through 13d, and 21, not
charged against book income this
tax year (itemize):

a Depreciation $

8
9

Add lines 6 and 7 . . . . .
Income (loss). Subtract line 8
from line 5 . . . . . . .

Analysis of Partners’ Capital Accounts. (Not required if Item H11, page 1, is answered “Yes.”)

Balance at beginning of tax year
Capital contributed:
a Cash . . .
b Property . .
Net income (loss) per books .
Other increases (itemize): $

6
7

8
9
5

(b)
End of
tax year

Add lines 1 through 4 .

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Distributions: a Cash
. .
b Property .
Other decreases (itemize): $

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Add lines 6 and 7 . . . . .
Balance at end of tax year.
Subtract line 8 from line 5 . .
Form 8865 (2023)

Page 6

Form 8865 (2023)

Schedule N

Transactions Between Controlled Foreign Partnership and Partners or Other Related Entities

Important: Complete a separate Form 8865 and Schedule N for each controlled foreign partnership. Enter the totals for each type of
transaction that occurred between the foreign partnership and the persons listed in columns (a) through (d).
Transactions
of
foreign partnership

(a) U.S. person
filing this return

1
2

Sales of inventory . . . .
Sales of property rights (patents,
trademarks, etc.) . . . . .

3

6
7

Compensation received for
technical,
managerial,
engineering, construction, or
like services . . . . . . .
Commissions received . .
Rents, royalties, and license
fees received
. . . . .
Distributions received . . .
Interest received . . . .

8

Other .

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9

Add lines 1 through 8 .

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4
5

10
11
12
13

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(c) Any other foreign
corporation or partnership
controlling or controlled
by the U.S. person filing
this return

(d) Any U.S. person with a
10% or more direct interest
in the controlled foreign
partnership (other than the
U.S. person filing this return)

Purchases of inventory . .
Purchases of tangible property
other than inventory
. . .
Purchases of property rights
(patents, trademarks, etc.) .

16
17

Compensation
paid
for
technical,
managerial,
engineering, construction, or
like services . . . . . .
Commissions paid . . . .
Rents, royalties, and license
fees paid . . . . . . .
Distributions paid . . . .
Interest paid . . . . . .

18

Other .

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19

Add lines 10 through 18 .

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20

Amounts borrowed (enter the
maximum
loan
balance
during the tax year). See
instructions . . . . . .

21

Amounts loaned (enter the
maximum
loan
balance
during the tax year). See
instructions . . . . . .

14
15

(b) Any domestic
corporation or partnership
controlling or controlled
by the U.S. person filing
this return

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Form 8865 (2023)