Form 8804
Annual partnership return reporting US withholding on partnership ECI allocated to foreign partners.
Definition
Form 8804 is filed by US partnerships with foreign partners reporting partnership withholding on foreign partners shares of ECI. Companion to Form 8805 (partner-level reporting).
Context
Relevant for multi-member LLCs taxed as partnerships with foreign partners and US ECI.
Example
A US-formed multi-member LLC has a foreign partner and US-source ECI. The LLC files Form 8804 reporting withholding tax on the foreign partner allocable share.
Common pitfalls
- Partnership withholding rate is generally the highest individual/corporate rate.
- Failure to withhold triggers partnership-level liability.