Instructions For Form 926
Form 926 is required for certain exchanges and transfers of property to foreign corporations. In this article, you can find instructions for form 926 for the current year.
Are you transferring property to another country? Then you must file Form 926 with the IRS to report the property transfer. This form will list the EIN of the parent corporation and the name of the affiliated group. It must be filed along with the consolidated return of the parent corporation. Keep reading for further instructions for Form 926 for the current years.
If you want to make foreign transfers, you may need to file Form 926. This form is used to report transfers of property and cash to foreign corporations. Generally, it’s required when you transfer more than $100k in cash or own more than ten percent of the foreign corporation’s stock.
You must also file Form 5471 and FINCEN Form 114 with your tax return. If you’re unsure how to file the form, talk to a tax professional to get help. If you fail to file it, you could be subject to a penalty of up to 10% of the property’s fair market value at the transfer time. However, you can avoid the penalty by demonstrating reasonable cause.
How to file Form 926?
The form will require you to enter the following:
- Your new EIN is in line 5a.
- Your old reference ID number is in line 5b.
- You may continue using the same reference ID number in subsequent years. You must enter the correct reference ID number each year.
For those who would like to see the instructions from its source, the following links are the recent Form 926 and the complete list of the Form 926 instructions published by the IRS.
