Fillable Form 8991

What is Form 8991?

Form 8891, Tax on Base Erosion Payments of Taxpayers With Substantial Gross Receipts, is used by taxpayers in the United States to determine their base erosion minimum tax for the current tax year.

Taxpayers must use Schedule A to determine the amount of base erosion payments and base erosion tax benefits for purposes of the following:

• Determining the taxpayer’s base erosion percentage
• Determining the applicable taxpayer’s modified taxable income

Taxpayers must use Schedule B to report the amount of deductions being waived for the tax year and they must use Schedule C to determine the credits that reduce regular tax liability in computing the base erosion minimum tax amount.

How to fill out Form 8991?

Taxpayers from the United States can download and print a PDF copy of IRS Form 8991 from the Internal Revenue Service (IRS) website that they can manually complete. They can also fill out IRS Form 8991 electronically on PDFRun.

To fill out the IRS 8991 Form, you must provide the following information:

For tax year beginning

Enter the date of the beginning tax year.

Month

Enter the month of the beginning tax year.

Year

Enter the beginning year.

Tax year ending

Enter the date of the ending tax year.

Month

Enter the month of the ending tax year.

Year

Enter the ending year.

Name

Enter your full legal name.

Employer identification number (EIN)

Enter your employer identification number (EIN).

Part I. Applicable Taxpayer Determination

Aggregated Taxpayer

Mark the box if you are filling out this form as an aggregated taxpayer. If you have marked the box, you are required to attach a statement listing all of the full legal names and employer identification numbers (EIN) of all separate taxpayers taken into account in the determination of 1 person.

Line 1a

Enter your gross receipts for the first, second, and third preceding tax years in columns a, b, and c.

Line 1b

Enter your gross receipts from your partnerships for the first, second, and third preceding tax years in columns a, b, and c.

Line 1c

Enter the gross receipts of all other persons treated as 1 person for the first, second, and third preceding tax years in columns a, b, and c.

Line 1d

Enter the total amount of your gross receipts for the first, second, and third preceding tax years in columns a, b, and c by adding all of the amounts in lines 1a through 1c.

Line 1e

Enter the total amount of your gross receipts for all three years by adding all of the amounts in columns a, b, and c.

Line 1f

Enter the amount of your 3-year average annual gross receipts in column c.

Line 1g

Mark YES if the amount on line 1f is $500 million or more; otherwise, mark NO. if you have marked YES, you may proceed to line 2. If you have marked NO, stop filling out this form and attach it to your tax return.

Line 2a

Enter your base erosion tax benefit in column c.

Line 2b

Enter the total amount of deductions allowed in column c.

Line 2c

Enter your base erosion tax benefits resulting from reductions in insurance premiums.

Line 2d

Enter your base erosion tax benefits resulting from reductions in gross receipts.

Line 2e

Add the amounts in lines 2c and 2d and enter the total amount in column c.

Line 2f

Enter the total deductions for the amounts you have paid or accrued for certain services.

Line 2g

Enter the total amount of qualified derivative payments.

Line 2h

Enter the total amount of deductions allowed for the tax year.

Line 2i

Mark YES if you are electing to waive deductions in accordance with the regulations; otherwise, mark NO. If you have marked YES, you are required to complete Schedule B. If you have marked NO, enter “-0-.”

Line 2j

Enter the total amount of deductions for exchange losses.

Line 2k

Enter the total amount of deductions for total loss-absorbing capacity (TLAC) securities and foreign TLAC securities.

Line 2l

Enter the total amount of reinsurance losses incurred and claims payments.

Line 2m

Add the amounts in lines 2f through 2l and enter the total amount.

Line 2n

Enter the total amount of deductions.

Line 2o

Enter the total base erosion percentage by dividing the amount in line 2a by the amount in line 2n.

Line 2p

Mark YES if your base tax erosion percentage in line 2o is 3% or higher; otherwise, mark NO. If you have marked YES, you may proceed to part II. If you have marked NO, you must stop filling out this form after completing part I and Schedule A.

Part II. Modified Taxable Income (MTI)

Line 3a

Enter the total amount of your taxable income after deducting the net operating loss.

Line 3b

Enter your base erosion tax benefits for the tax year.

Line 3c

Enter the base erosion percentage of your net operating loss deduction.

Line 3d

Enter the total amount of your modified taxable income.

Part III. Regular Tax Liability Adjusted for Purposes of Computing Base Erosion Minimum Tax Amount

Line 4a

Enter your regular tax liability.

Line 4b

Enter your allowed credits.

Line 4c

Enter the total amount of your adjusted regular tax liability.

Part IV. Computation of Base Erosion Minimum Tax Amount

Line 5a

Enter your modified taxable income.

Line 5b

Enter your base erosion and anti-abuse tax (BEAT) tax rate that is applicable for the current tax year.

Line 5c

Multiply the amount in line 5a by the amount in line 5b and enter the total amount.

Line 5d

Enter your regular tax liability that has been adjusted for computation.

Line 5e

Enter the total amount of your base erosion minimum tax.

Schedule A. Base Erosion Payments and Base Erosion Tax Benefits

The instructions stated below will apply to all of the lines in this section except for lines 1, 2, 5b, 9b, 13, 14, and 15.

Mark the boxes on columns c, d, and e which are applicable for each line. You may select:

• Column c - any 25% owner of the taxpayer
• Column d - person related under sections 276(b) or 707(b)(1) to the taxpayer or any 25% owner of the taxpayer
• Column e - any person related within the meaning of section 482 to the taxpayer

Financial Statements

Mark YES if you have elected to use financial statements; otherwise, mark NO.

Line 1

This space is reserved for future use and must be left blank.

Line 2

This space is reserved for future use and must be left blank.

Line 3

Enter the group’s base erosion payments, erosion tax benefits, your base erosion benefits, and your erosion tax benefits for the purchases or creations of property rights for any intangibles in columns a-1 through b-2.

Line 4

Enter the group’s base erosion payments, erosion tax benefits, your base erosion benefits, and your erosion tax benefits for your rents, royalties, and license fees in columns a-1 through b-2.

Line 5a

Enter the group’s base erosion payments, erosion tax benefits, your base erosion benefits, and your erosion tax benefits for the compensation paid for services not accepted by regulations in columns a-1 through b-2.

Line 5b

Enter the amount of compensation in U.S. dollars.

Line 6

Enter the group’s base erosion payments, erosion tax benefits, your base erosion benefits, and your erosion tax benefits for the interest expense in columns a-1 through b-2.

Line 7

Enter the group’s base erosion payments, erosion tax benefits, your base erosion benefits, and your erosion tax benefits for the payments for the purchase of tangible personal property in columns a-1 through b-2.

Line 8

Enter the group’s base erosion payments, erosion tax benefits, your base erosion benefits, and your erosion tax benefits for the premiums paid or accrued for insurance and reinsurance in columns a-1 through b-2.

Line 9a

Enter the group’s base erosion payments, erosion tax benefits, your base erosion benefits, and your erosion tax benefits for the nonqualified derivative payments in columns a-1 through b-2.

Line 9b

Enter the amount of qualified derivative payments in U.S. dollars.

Line 10

Enter the group’s base erosion payments, erosion tax benefits, your base erosion benefits, and your erosion tax benefits for the payments reducing gross receipts made to surrogate foreign corporations in columns a-1 through b-2.

Line 11

Enter the group’s base erosion payments, erosion tax benefits, your base erosion benefits, and your erosion tax benefits for other payments in columns a-1 through b-2.

Line 12

Add all of the amounts in lines 3 through 11.

Line 13

Enter your base erosion tax benefits in columns a-2 and b-2.

Line 14

Enter the portion of your reported base erosion tax benefits in columns a-2 and b-2.

Line 15

Enter the total amount of your base erosion tax benefits in columns a-2 and b-2.

Schedule B. Waiver of Deductions

The instructions stated below will apply to all of the columns in this section.

Enter following information in lines 1 through 13:

1. Description of item or property to which the deduction relates
2. Date on which the waived deduction was paid or accrued
3. Provision of code and regulations that allows the deduction for which this election relates
4. Line number on the controlled group member tax return where the deduction is reported
5. Name of foreign-related part that is the recipient of the payment that generates the deduction
6. Taxpayer identification number (TIN) of foreign-related party
7. Country of organization of the foreign-related party
8. Amount of deduction claimed for the tax year with respect to the item or property

Line 14

Enter the totals from your attachment in columns h and i.

Line 15

Enter the total deductions waived per regulation in column i.

Schedule C. Credits Reducing Regular Tax Liability in Computing Base Erosion Minimum Tax Amount (BEMTA)

Part I. Credits Allowed Against Regular Tax

Line 1

Enter the total credits allowed in the current year.

Line 2

Enter the credits for increasing research activities.

Line 3

Enter the total allowed credit for increasing research activities for the current year.

Line 4

Enter the smaller amount between Schedule C, Part II, line 11 or Part III, line 16.

Line 5

Enter the limitation of applicable section 38 credits.

Line 6

Enter the adjustments to your allowed credits.

Line 7

Enter the total amount of credits allowed against regular tax in computing BEMTA.

Part II. Applicable Section 38 Credits

Line 8

Enter your low-income housing credit.

Line 9

Enter your renewable electricity production credit.

Line 10

Enter your investment credit.

Line 11

Enter the total amount of allowed applicable section 38 credits for the current year.

Part III. BEMTA Determined Without Adjustment for Applicable Section 38 Credits

Line 12

Enter your base erosion minimum tax.

Line 13

Enter your regular tax liability.

Line 14

Subtract the amount in Schedule C, Part I, line 3 from the amount in line 1 and enter the total amount.

Line 15

Enter your regular tax adjusted for credits that offset BEMTA.

Line 16

Enter your base erosion minimum tax determined without adjustment for applicable section 38 credits.