Fillable Form 926

What is Form 926?

Form 926, Return by a US Transferor of Property to a Foreign Corporation, is an IRS form used to report transfers of tangible or intangible property to a foreign corporation as required under the Internal Revenue Code.

You may download a PDF copy of the 926 form on the IRS website. But you may fill it out electronically at PDFRun for your convenience.

How to fill out Form 926?

Provide the necessary information on the required fields. Make sure that the information you enter is true, accurate, and correct.

Part I - US Transferor Information

Name of Transferor

Enter the name of the transferor.

Identifying Number

Enter the transferor’s identifying number.

Item 1

Mark “Yes” to determine if the transferee is a specified 10% -owned foreign corporation that is not a controlled foreign corporation. Otherwise, mark “No.”

Item 2

Answer Items 2a and 2b if the transferor was a corporation. Otherwise, skip these items.

Item 2a

Mark “Yes” to determine if the transferor controlled by five or fewer domestic corporations if the transfer was a section 361(a) or (b) transfer. Otherwise, mark “No.”

Item 2b

Mark “Yes” to determine if the transferor remained in existence after the transfer. Otherwise, mark “No” and list the controlling shareholders and their identifying numbers in the two columns below.

Item 2c

Mark “Yes” to determine if the transferor was the parent corporation when it was a member of an affiliated group filing a consolidated return. Otherwise, mark “No” and enter the name and the employer identification number (EIN) of the parent corporation on the column below.

Item 2d

Mark “Yes” to determine if the basis adjustments under section 367(a)(4) have been made. Otherwise, mark “No.”

Item 3

Answer Items 3a to 3d if the transferor was a partner in a partnership that was the actual transferor but not treated as such under Section 367.

Item 3a

Enter the name and the EIN of the transferor’s partnership.

Item 3b

Mark “Yes” to determine if the partner picked up its pro-rata share of the gain on the transfer of partnership assets. Otherwise, mark “No.”

Item 3c

Mark “Yes” to determine if the partner is disposing of its entire interest in the partnership. Otherwise, mark “No.”

Item 3d

Mark “Yes” to determine if the partner disposed of an interest in a limited partnership that is regularly traded on an established securities market. Otherwise, mark “No.”

Part II - Transferee Foreign Corporation Information

Item 4

Enter the name of the transferee that is a foreign corporation

Item 5a

Enter the transferee’s identifying number, if any.

Item 5b

Enter the Reference ID number

Item 6

Enter the transferee’s complete address. Make sure to include the country.

Item 7

Enter the country code of the country of incorporation or organization.

Item 8

Enter the foreign law characterization.

Item 9

Mark “Yes” to determine if the transferee is a controlled foreign corporation. Otherwise, mark “No.”

Part III - Information Regarding Transfer of Property

Section A - Cash

This section has six columns, namely:

• Type of property
• (a) Date of transfer
• (b) Description of property
• (c) Fair market on the date of transfer
• (d) cost or other basis
• (e) gain recognized on transfer

You are only required to fill out columns (a) and (c). Enter the date of transfer of the cash in column (a), and the fair market value on the date of transfer in column (c).

Item 10

Mark “Yes” to determine if the cash was the only property transferred. If you marked “Yes,” skip the rest of Part III and proceed to Part IV. Otherwise, mark “No” and answer the remainder of Part III.

Section B - Other Property (other than intangible property subject to section 367(d))

This section has six columns, namely:

• Type of property
  • Stock and securities
  • Inventory
  • Other property (not listed under another category)
  • Property with built-in loss
  • Totals
• (a) Date of transfer
• (b) Description of property
• (c) Fair market on date of transfer
• (d) cost or other basis
• (e) gain recognized on transfer

Enter the appropriate information for each type of property on each column, if any. Leave column (e) blank for the “Property with built-in loss” category. Also, leave the totals of columns (a) and (b) blank.

Item 11

Mark “Yes” to determine if the transferor transfer stock or securities subject to section 367(a) to which a gain recognition agreement was filed. Otherwise, mark “No.”

Item 12a

Mark “Yes” to determine if there were any assets of a foreign branch (including a branch that is a foreign disregarded entity) transferred to a foreign corporation. If you marked “Yes,” proceed to Item 12b. Otherwise, mark “No.”

Item 12b

Mark “Yes” to determine if the transferor was a domestic corporation that transferred substantially all of the assets of a foreign branch (including a branch that is a foreign disregarded entity) to a specified 10%-owned foreign corporation. If you marked “Yes,” proceed to Item 12c. Otherwise, mark “No” and skip Items 12c and 12d, and proceed to Item 13.

Item 12c

Mark “Yes” to determine if the domestic corporation was a US shareholder concerning the transferee foreign corporation immediately after the transfer. If you marked “Yes,” continue to Item 12d. Otherwise, mark “No” and go to Item 13.

Item 12d

Enter the transferred loss amount included in the gross income as required under section 91.

Item 13

Mark “Yes” to determine if the transferor transferred the property described in section 367(d)(4). Otherwise, mark “No” and skip Section C and questions 14a through 15.

Section C - Intangible Property Subject to Section 367 (d)

Section C has seven columns, namely:

• Type of property
  • Property described in section 367 (d) (4)
• (a) Date of transfer
• (b) Description of property
• (c) Useful life
• (d) Arm’s length price on date of transfer
• (e) Cost or other basis
• (f) Income Inclusion for year of transfer

Enter the appropriate information for each type of property on each column, if any. Leave the totals of columns (a), (b), and (c) blank.

Item 14a

Mark “Yes” to determine if the transferor transferred any intangible property that, at the time of the transfer, had a useful life reasonably anticipated to exceed 20 years. Otherwise, mark “No.”

Item 14b

Mark “Yes” to determine if any of the transferred intangible property had an indefinite useful life at the time of the transfer. Otherwise, mark “No.”

Item 14c

Mark “Yes” to determine if the transferor chose to apply the 20-year inclusion period provided under Regulations sections 1.367(d)-1(c)(3)(ii) for any intangible property. Otherwise, mark “No.”

Item 14d

Enter the total estimated anticipated income or cost reduction attributable to the intangible property’s or properties’ uses beyond the 20-year period if you marked “Yes” on Item 14c. Otherwise, leave this blank.

Item 15

Mark “Yes” to determine if there was any intangible property transferred considered or anticipated to be, at the time of the transfer or at any time thereafter, a platform contribution as defined Regulations section 1.482-7(c)(1). Otherwise, mark “No.”

Supplemental Part III - Information Required to be Reported

Enter any additional information required to be reported on Part III.

Part IV - Additional Information Regarding Transfer of Property

Item 16

Enter the transferor’s interest in the transferee foreign corporation before and after the transfer.

Item 17

Enter the type of nonrecognition transaction.

Item 18

Mark “Yes” to determine whether any transfer in Part III is subject to the following:

• Gain recognition under section 904 (f)(3)
• Gain recognition under 904(f)(5)(F)
• Recapture under section 1503 (d)
• Exchange gain under section 987

Otherwise, mark “No.”

Item 19

Mark “Yes” to determine if the transfer resulted from a change in entity classification. Otherwise, mark “No.”

Item 20a

Mark “Yes” to determine if a domestic corporation made a distribution of property covered by section 367(e)(2). If you marked “yes,” complete items 20b and 20c. Otherwise, mark “No.”

Item 20b

Enter the total amount of gain or loss recognized according to Regulations section 1.367(e)-2(b).

Item 20c

Mark “Yes” to determine if the domestic corporation did not recognize gain or loss on the distribution of property because the property was used in the conduct of US trade or business. Otherwise, mark “No.”

Item 21

Mark “Yes” to determine if a domestic corporation made a section 355 distribution of stock in a foreign-controlled corporation covered by section 367(e)(1). Otherwise, mark “No.”

How to file Form 926?

The Form 926 IRS should be filed with the US transferor’s income tax return for the tax year which is inclusive of the date of transfer. If you fail to file your IRS form 926, you have a penalty that is equivalent to 10% of the fair market value of the property at the time of the transfer.