Reporting And Paying Tax On Partnership Withholding

Three forms are required for reporting and paying over tax withheld on effectively connected income allocable to foreign partners.

Form 8804

Form 8804, Annual Return for Partnership Withholding Tax (Section 1446).

The withholding tax liability of the partnership for its tax year is reported on Form 8804. Form 8804 is also a transmittal form for Forms 8805. Any additional withholding tax owed for the partnership’s tax year is paid (in U. S. currency) with Form 8804. A Form 8805 for each foreign partner must be attached to Form 8804, whether or not any withholding tax was paid.

File Form 8804 by the 15th day of the 3rd month (4th Month for partnership tax years beginning before January 1, 2016) after the close of the partnership’s tax year. However, a partnership made up of all nonresident alien partners has until the 15th day of the 6th month after the close of the partnership’s tax year to file.

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