IRS · Official form

Form 8991, Tax on Base Erosion Payments of Taxpayers With Substantial Gross Receipts

Form 8991 is how large corporations figure the base erosion and anti-abuse tax (BEAT) on deductible payments to foreign related parties. Fill in the official IRS PDF below and download it.

Fill out 8991 in the editor Download the blank PDF Quick fill on this page

This is the genuine IRS PDF, unmodified. Source: IRS official page.

What is 8991?

Form 8991, Tax on Base Erosion Payments of Taxpayers With Substantial Gross Receipts, computes the base erosion minimum tax amount under section 59A. It applies to corporations with very large average annual gross receipts, generally 500 million dollars or more, whose deductible payments to foreign related parties exceed a percentage of their total deductions.

The form walks through the gross receipts test, the base erosion percentage test, modified taxable income, and the final BEAT liability. Its schedules list base erosion payments by type and detail waived deductions.

Who files 8991?

Corporations with average annual gross receipts at or above the section 59A threshold
Corporate groups whose base erosion percentage meets the applicable test
U.S. subsidiaries of foreign groups making large deductible payments to foreign affiliates
Taxpayers that must demonstrate on the record that BEAT does not apply to them

How to fill out 8991

Enter the corporation’s name and EIN, then complete the gross receipts test using the three prior tax years.
Compute the base erosion percentage from base erosion tax benefits and total deductions.
List base erosion payments by category on Schedule A, including payments for services, interest, and depreciable property.
Figure modified taxable income and the base erosion minimum tax amount in the remaining parts.
Download the completed PDF and attach it to the corporation’s income tax return, such as Form 1120.

Quick fill 8991 on this page

Prefer to see the form itself while you type? Open 8991 in the editor to fill it on the actual pages, add a signature, and download.

These are the form's own fields, in the order they appear on the pages. Fill in what you know; anything left blank stays a fillable field in the PDF, so you can finish it in any PDF reader. Nothing you type here is sent to IRS.

Page 1 42 fields

For tax year beginning

,20 (enter 2-digit year). , 20

, and ending

, 20 (enter 2-digit year). , 20

Name

Employer identification number (EIN)

Check box if this form is being filed by a taxpayer with which another taxpayer has been aggregated under Regulations section 1.59A-2(c)

Row: 1a. Gross receipts of the taxpayer (see instructions). Column: (a). First Preceding Tax Year.

Row: 1a. Gross receipts of the taxpayer (see instructions). Column: (b). Second Preceding Tax Year.

Row: 1a. Gross receipts of the taxpayer (see instructions). Column: (c). Third Preceding Tax Year.

Row: 1b. Gross receipts from partnerships. Column: (a). First Preceding Tax Year.

Row: 1b. Gross receipts from partnerships. Column: (b). Second Preceding Tax Year.

Row: 1b. Gross receipts from partnerships. Column: (c). Third Preceding Tax Year.

Row: 1c. Gross receipts of all other persons treated as 1 person pursuant to Regulations section 1.59A-2(c). Column: (a). First Preceding

Row: 1c. Gross receipts of all other persons treated as 1 person pursuant to Regulations section 1.59A-2(c). Column: (b). Second Preceding

Row: 1c. Gross receipts of all other persons treated as 1 person pursuant to Regulations section 1.59A-2(c). Column: (c). Third Preceding

Row: 1d. Gross receipts. Combine lines 1a through 1c. Column: (a). First Preceding Tax Year.

Row: 1d. Gross receipts. Combine lines 1a through 1c. Column: (b). Second Preceding Tax Year.

Row: 1d. Gross receipts. Combine lines 1a through 1c. Column: (c). Third Preceding Tax Year.

1e. Gross receipts of first, second, and third preceding tax years. Combine columns (a), (b), and (c) of line 1d.

1f. 3-year average annual gross receipts (see instructions).

Yes. Continue to line 2.

No. STOP here and attach this form to your tax return.

2a. Base erosion tax benefit (from Schedule A, line 15, column (a-2)).

2b. Amount of deductions allowed under chapter 1 of the Internal Revenue Code.

2c. Base erosion tax benefits resulting from reductions in insurance premiums reported on Schedule A, line 8, column (a-2).

2d. Base erosion tax benefits resulting from reductions in gross receipts reported on Schedule A, line 10, column (a-2).

2e. Add lines 2c and 2d.

2f. Total deductions for amounts paid or accrued for services to which the exception under Regulations section 1.59A-3(b)(3)(i) applies

2g. Qualified derivative payments excepted by Regulations section 1.59A-6(b).

2h. Total deductions allowed under sections 172, 245A, and 250 for the tax year.

2i. Does the taxpayer elect to waive deductions in accordance with Regulations section 1.59A-3(c)(6)(i)? Amount.

Yes. Complete Schedule B. Enter the amount from line 15 of Schedule B.

No. Enter -0-.

2j. Deductions for exchange losses from section 988 transactions described in Regulations section 1.59A-2(e)(3)(i i)(D).

2k. Deductions for T L A C securities and foreign T L A C securities described in Regulations section 1.59A-2(e)(3)(i i)(E).

2l. Reinsurance losses incurred and claims payments described in Regulations section 1.59A-2(e)(3)(i i)(F).

2m. Combine lines 2f through 2l.

2n. Total deductions. Subtract line 2m from the sum of line 2b and line 2e.

2o. Base erosion percentage. Divide line 2a by line 2n

Yes. Continue to Part II.

No. STOP after completing Part I, Part V, and Schedule A (and, if necessary, Schedule B), and

Page 2 28 fields

Page 2. Part I I. Modified Taxable Income (M T I). 3a. Taxable income after net operating loss (see instructions).

3b. Base erosion tax benefits for the tax year from Schedule A, line 15, column (b-2).

3c. Base erosion percentage of the net operating loss deduction allowed under section 172 for the tax year (see instructions).

3d. M T I (see instructions).

Part I I I. Regular Tax Liability Adjusted for Purposes of Computing Base Erosion Minimum Tax Amount. 4a. Regular tax liability.

4b. Allowed credits, as adjusted (from Schedule C, line 7).

4c. Regular tax liability adjusted for purposes of computing base erosion minimum tax amount. Subtract line 4b from line 4a.

Part I V. Computation of Base Erosion Minimum Tax Amount. 5a. M T I (from line 3d).

5b. B E A T Tax rate applicable for current tax year

5c. Base erosion minimum tax. Multiply line 5a by line 5b.

5d. Regular tax liability adjusted for purposes of computing base erosion minimum tax amount (from line 4c).

5e. Base erosion minimum tax amount. Subtract line 5d from line 5c. If zero or less, enter 0.

6. Does the taxpayer elect to use financial statements per Regulations section 1.59A-3(b)(4)(i)(D) for purposes of calculating interest

of calculating interest expense allocable to a foreign corporation’s effectively connected income? No

7. In the current year, did the taxpayer capitalize to inventory, or include in cost of goods sold (C O G S), costs for any payment to a

for any payment to a related foreign party that the taxpayer treated as a deduction in any prior tax year? No

8. If "Yes" for line 7, enter the following: Row: a. Column: (i). Amount Capitalized or Included in C O G S.

Row: a. Column: (i i). Description of Item.

Row: a. Column: (i i i). Line Item Reported on in Prior Year.

Row: a. Column: (i v). Tax Year Form 3115 Was Filed.

Row: b. Column: (i). Amount Capitalized or Included in C O G S.

Row: b. Column: (i i). Description of Item.

Row: b. Column: (i i i). Line Item Reported on in Prior Year.

Row: b. Column: (i v). Tax Year Form 3115 Was Filed.

Row: c. Column: (i). Amount Capitalized or Included in C O G S.

Row: c. Column: (i i). Description of Item.

Row: c. Column: (i i i). Line Item Reported on in Prior Year.

Row: c. Column: (i v). Tax Year Form 3115 Was Filed.

Page 3 50 fields

Page 4 32 fields

Column: (a-1). Aggregate Group’s Base Erosion Payments.

Row: 9a. Nonqualified derivative payments. Column: (a-2). Aggregate Group’s Base Erosion Tax Benefits.

Row: 9a. Nonqualified derivative payments. Column: (b-1). Taxpayer’s Base Erosion Payments.

Row: 9a. Nonqualified derivative payments. Column: (b-2). Taxpayer’s Base Erosion Tax Benefits.

Row: 9a. Nonqualified derivative payments. Column: (Check all applicable boxes in columns (c), (d), and (e) below). (c). Any 25% Owner of

Row: 9a. Nonqualified derivative payments. Column: (Check all applicable boxes in columns (c), (d), and (e) below). (d). Person Related

Row: 9a. Nonqualified derivative payments. Column: (Check all applicable boxes in columns (c), (d), and (e) below). (e). Any Other Person

Row: 9b. Qualified derivative payments excepted by Regulations section 1.59A-6(b)

Row: 10. Payments reducing gross receipts made to surrogate foreign corporation. Column: (a-1). Aggregate Group’s Base Erosion Payments.

Row 10. Payments reducing gross receipts made to surrogate foreign corporation. Column: (a-2). Aggregate Group’s Base Erosion Tax Benefits.

Row: 10. Payments reducing gross receipts made to surrogate foreign corporation. Column: (b-1). Taxpayer’s Base Erosion Payments.

Row: 10. Payments reducing gross receipts made to surrogate foreign corporation. Column: (b-2). Taxpayer’s Base Erosion Tax Benefits.

Row: 10. Payments reducing gross receipts made to surrogate foreign corporation. Column: (Check all applicable boxes in columns (c), (d),

Row: 11. Other payments - Specify. Column: (a-1). Aggregate Group’s Base Erosion Payments.

Row: 11. Other payments - Specify. Column: (a-2). Aggregate Group’s Base Erosion Tax Benefits.

Row: 11. Other payments - Specify. Column: (b-1). Taxpayer’s Base Erosion Payments.

Row: 11. Other payments - Specify. Column: (b-2). Taxpayer’s Base Erosion Tax Benefits.

Row: 11. Other payments - Specify. Column: (Check all applicable boxes in columns (c), (d), and (e) below). (c). Any 25% Owner of the

Row: 11. Other payments - Specify. Column: (Check all applicable boxes in columns (c), (d), and (e) below). (d). Person Related Under

Row: 11. Other payments - Specify. Column: (Check all applicable boxes in columns (c), (d), and (e) below). (e). Any Other Person Related

Row: 12. Combine lines 2 through 11. Column: (a-1). Aggregate Group’s Base Erosion Payments.

Row: 12. Combine lines 2 through 11. Column: (a-2). Aggregate Group’s Base Erosion Tax Benefits.

Row: 12. Combine lines 2 through 11. Column: (b-1). Taxpayer’s Base Erosion Payments.

Row: 12. Combine lines 2 through 11. Column: (b-2). Taxpayer’s Base Erosion Tax Benefits.

Row: 13. Base erosion tax benefits related to payments reported on lines 2 through 11, on which tax is imposed by section 871, 881, or

Row: 14. Portion of base erosion tax benefits reported on lines 2 through 11, on which tax is imposed by section 871 or 881, with respect

Row: 15. Total base erosion tax benefits. Subtract the sum of line 13 and line 14 from line 12. Enter the amount from column (a-2) on Part

Page 5 120 fields

Column: (a) Description of item or property to which the deduction relates.

Row: 1. Column: (b) Date on which, or period in which, the waived deduction was paid or accrued.

Row: 1. Column: (c) Provision of Code and regulations, as applicable, that allows the deduction for which this election relates.

Row: 1. Column: (d) Line number on the controlled group member tax return where the deduction is reported.

Row: 1. Column: (e) Name of foreign related party that is or will be the recipient of the payment that generates the deduction.

Row: 1. Column: (f) Taxpayer identification number of foreign related party.

Row: 1. Column: (g) Country of organization of the foreign related party.

Row: 1. Column: (h) Amount of deduction claimed for the tax year with respect to the item or property.

Row: 1. Column: (i) Amount of deduction being waived for the tax year with respect to the item or property.

Row: 2. Column: (a) Description of item or property to which the deduction relates.

Row: 2. Column: (b) Date on which, or period in which, the waived deduction was paid or accrued.

Row: 2. Column: (c) Provision of Code and regulations, as applicable, that allows the deduction for which this election relates.

Row: 2. Column: (d) Line number on the controlled group member tax return where the deduction is reported.

Row: 2. Column: (e) Name of foreign related party that is or will be the recipient of the payment that generates the deduction.

Row: 2. Column: (f) Taxpayer identification number of foreign related party.

Row: 2. Column: (g) Country of organization of the foreign related party.

Row: 2. Column: (h) Amount of deduction claimed for the tax year with respect to the item or property.

Row: 2. Column: (i) Amount of deduction being waived for the tax year with respect to the item or property.

Row: 3. Column: (a) Description of item or property to which the deduction relates.

Row: 3. Column: (b) Date on which, or period in which, the waived deduction was paid or accrued.

Row: 3. Column: (c) Provision of Code and regulations, as applicable, that allows the deduction for which this election relates.

Row: 3. Column: (d) Line number on the controlled group member tax return where the deduction is reported.

Row: 3. Column: (e) Name of foreign related party that is or will be the recipient of the payment that generates the deduction.

Row: 3. Column: (f) Taxpayer identification number of foreign related party.

Row: 3. Column: (g) Country of organization of the foreign related party.

Row: 3. Column: (h) Amount of deduction claimed for the tax year with respect to the item or property.

Row: 3. Column: (i) Amount of deduction being waived for the tax year with respect to the item or property.

Row: 4. Column: (a) Description of item or property to which the deduction relates.

Row: 4. Column: (b) Date on which, or period in which, the waived deduction was paid or accrued.

Row: 4. Column: (c) Provision of Code and regulations, as applicable, that allows the deduction for which this election relates.

Row: 4. Column: (d) Line number on the controlled group member tax return where the deduction is reported.

Row: 4. Column: (e) Name of foreign related party that is or will be the recipient of the payment that generates the deduction.

Row: 4. Column: (f) Taxpayer identification number of foreign related party.

Row: 4. Column: (g) Country of organization of the foreign related party.

Row: 4. Column: (h) Amount of deduction claimed for the tax year with respect to the item or property.

Row: 4. Column: (i) Amount of deduction being waived for the tax year with respect to the item or property.

Row: 5. Column: (a) Description of item or property to which the deduction relates.

Row: 5. Column: (b) Date on which, or period in which, the waived deduction was paid or accrued.

Row: 5. Column: (c) Provision of Code and regulations, as applicable, that allows the deduction for which this election relates.

Row: 5. Column: (d) Line number on the controlled group member tax return where the deduction is reported.

Row: 5. Column: (e) Name of foreign related party that is or will be the recipient of the payment that generates the deduction.

Row: 5. Column: (f) Taxpayer identification number of foreign related party.

Row: 5. Column: (g) Country of organization of the foreign related party.

Row: 5. Column: (h) Amount of deduction claimed for the tax year with respect to the item or property.

Row: 5. Column: (i) Amount of deduction being waived for the tax year with respect to the item or property.

Row: 6. Column: (a) Description of item or property to which the deduction relates.

Row: 6. Column: (b) Date on which, or period in which, the waived deduction was paid or accrued.

Row: 6. Column: (c) Provision of Code and regulations, as applicable, that allows the deduction for which this election relates.

Row: 6. Column: (d) Line number on the controlled group member tax return where the deduction is reported.

Row: 6. Column: (e) Name of foreign related party that is or will be the recipient of the payment that generates the deduction.

Row: 6. Column: (f) Taxpayer identification number of foreign related party.

Row: 6. Column: (g) Country of organization of the foreign related party.

Row: 6. Column: (h) Amount of deduction claimed for the tax year with respect to the item or property.

Row: 6. Column: (i) Amount of deduction being waived for the tax year with respect to the item or property.

Row: 7. Column: (a) Description of item or property to which the deduction relates.

Row: 7. Column: (b) Date on which, or period in which, the waived deduction was paid or accrued.

Row: 7. Column: (c) Provision of Code and regulations, as applicable, that allows the deduction for which this election relates.

Row: 7. Column: (d) Line number on the controlled group member tax return where the deduction is reported.

Row: 7. Column: (e) Name of foreign related party that is or will be the recipient of the payment that generates the deduction.

Row: 7. Column: (f) Taxpayer identification number of foreign related party.

Row: 7. Column: (g) Country of organization of the foreign related party.

Row: 7. Column: (h) Amount of deduction claimed for the tax year with respect to the item or property.

Row: 7. Column: (i) Amount of deduction being waived for the tax year with respect to the item or property.

Row: 8. Column: (a) Description of item or property to which the deduction relates.

Row: 8. Column: (b) Date on which, or period in which, the waived deduction was paid or accrued.

Row: 8. Column: (c) Provision of Code and regulations, as applicable, that allows the deduction for which this election relates.

Row: 8. Column: (d) Line number on the controlled group member tax return where the deduction is reported.

Row: 8. Column: (e) Name of foreign related party that is or will be the recipient of the payment that generates the deduction.

Row: 8. Column: (f) Taxpayer identification number of foreign related party.

Row: 8. Column: (g) Country of organization of the foreign related party.

Row: 8. Column: (h) Amount of deduction claimed for the tax year with respect to the item or property.

Row: 8. Column: (i) Amount of deduction being waived for the tax year with respect to the item or property.

Row: 9. Column: (a) Description of item or property to which the deduction relates.

Row: 9. Column: (b) Date on which, or period in which, the waived deduction was paid or accrued.

Row: 9. Column: (c) Provision of Code and regulations, as applicable, that allows the deduction for which this election relates.

Row: 9. Column: (d) Line number on the controlled group member tax return where the deduction is reported.

Row: 9. Column: (e) Name of foreign related party that is or will be the recipient of the payment that generates the deduction.

Row: 9. Column: (f) Taxpayer identification number of foreign related party.

Row: 9. Column: (g) Country of organization of the foreign related party.

Row: 9. Column: (h) Amount of deduction claimed for the tax year with respect to the item or property.

Row: 9. Column: (i) Amount of deduction being waived for the tax year with respect to the item or property.

Row: 10. Column: (a) Description of item or property to which the deduction relates.

Row: 10. Column: (b) Date on which, or period in which, the waived deduction was paid or accrued.

Row: 10. Column: (c) Provision of Code and regulations, as applicable, that allows the deduction for which this election relates.

Row: 10. Column: (d) Line number on the controlled group member tax return where the deduction is reported.

Row: 10. Column: (e) Name of foreign related party that is or will be the recipient of the payment that generates the deduction.

Row: 10. Column: (f) Taxpayer identification number of foreign related party.

Row: 10. Column: (g) Country of organization of the foreign related party.

Row: 10. Column: (h) Amount of deduction claimed for the tax year with respect to the item or property.

Row: 10. Column: (i) Amount of deduction being waived for the tax year with respect to the item or property.

Row: 11. Column: (a) Description of item or property to which the deduction relates.

Row: 11. Column: (b) Date on which, or period in which, the waived deduction was paid or accrued.

Row: 11. Column: (c) Provision of Code and regulations, as applicable, that allows the deduction for which this election relates.

Row: 11. Column: (d) Line number on the controlled group member tax return where the deduction is reported.

Row: 11. Column: (e) Name of foreign related party that is or will be the recipient of the payment that generates the deduction.

Row: 11. Column: (f) Taxpayer identification number of foreign related party.

Row: 11. Column: (g) Country of organization of the foreign related party.

Row: 11. Column: (h) Amount of deduction claimed for the tax year with respect to the item or property.

Row: 11. Column: (i) Amount of deduction being waived for the tax year with respect to the item or property.

Row: 12. Column: (a) Description of item or property to which the deduction relates.

Row: 12. Column: (b) Date on which, or period in which, the waived deduction was paid or accrued.

Row: 12. Column: (c) Provision of Code and regulations, as applicable, that allows the deduction for which this election relates.

Row: 12. Column: (d) Line number on the controlled group member tax return where the deduction is reported.

Row: 12. Column: (e) Name of foreign related party that is or will be the recipient of the payment that generates the deduction.

Row: 12. Column: (f) Taxpayer identification number of foreign related party.

Row: 12. Column: (g) Country of organization of the foreign related party.

Row: 12. Column: (h) Amount of deduction claimed for the tax year with respect to the item or property.

Row: 12. Column: (i) Amount of deduction being waived for the tax year with respect to the item or property.

Row: 13. Column: (a) Description of item or property to which the deduction relates.

Row: 13. Column: (b) Date on which, or period in which, the waived deduction was paid or accrued.

Row: 13. Column: (c) Provision of Code and regulations, as applicable, that allows the deduction for which this election relates.

Row: 13. Column: (d) Line number on the controlled group member tax return where the deduction is reported.

Row: 13. Column: (e) Name of foreign related party that is or will be the recipient of the payment that generates the deduction.

Row: 13. Column: (f) Taxpayer identification number of foreign related party.

Row: 13. Column: (g) Country of organization of the foreign related party.

Row: 13. Column: (h) Amount of deduction claimed for the tax year with respect to the item or property.

Row: 13. Column: (i) Amount of deduction being waived for the tax year with respect to the item or property.

14. Totals from attachment, if necessary. (h) Amount of deduction claimed for the tax year with respect to the item or property.

14. (i) Amount of deduction being waived for the tax year with respect to the item or property.

15. Total deductions waived per Regulations section 1.59A-3(c)(6)(i). Add the amounts in column (i). Enter the result here and on Part I,

Page 6 16 fields

1. Total credits allowed in current year (see instructions).

2. Credits for increasing research activities from Form 3800 (see instructions).

3. Total allowed credit for increasing research activities for current year. Enter the amount of research credit reported on Form 3800,

4. Enter smaller of Schedule C, Part I I, Line 11; or Part I I I, Line 16.

5. Limitation of applicable section 38 credits. Multiply line 4 by 80% (0.80).

6. Adjustments to allowed credits. Add lines 3 and 5.

7. Credits allowed against regular tax in computing B E M T A. Subtract line 6 from line 1. Enter here and on Form 8991, Line 4b.

8. Low-income housing credit from Form 3800 (see instructions).

9. Renewable electricity production credit from Form 3800 (see instructions).

10. Investment credit but only to extent of energy credit property under section 48 from Form 3800 (see instructions).

11. Total allowed applicable section 38 credits for current year. Enter the amount of applicable credits reported on Form 3800, Part I I,

Part I I I. B E M T A Determined Without Adjustment for Applicable Section 38 Credits. 12. Base erosion minimum tax (Form 8991, line 5c).

13. Regular tax liability (Form 8991, line 4a).

14. Subtract Schedule C, Part I, line 3, from line 1.

15. Regular tax adjusted for credits that offset B E M T A. Subtract line 14 from line 13.

16. Base erosion minimum tax determined without adjustment for applicable section 38 credits. Subtract line 15 from line 12; if zero or

Lock the PDF after filling (values become permanent, fields are removed)

Processed on our own servers, never sent to a third-party service. Files are deleted automatically after two hours, and you can delete them sooner from the result screen.

Frequently asked questions

Who is subject to the BEAT?

Generally corporations, other than RICs, REITs, and S corporations, with average annual gross receipts of at least 500 million dollars over the prior three years and a base erosion percentage above the applicable threshold. Both tests must be met before BEAT applies.

What counts as a base erosion payment?

Broadly, an amount paid or accrued to a foreign related party for which a deduction is allowed, such as interest, royalties, or service fees, plus certain payments to acquire depreciable property. Some payments, like most cost of goods sold, are excluded. The instructions define each category.

Form 8991, Tax on Base Erosion Payments of Taxpayers With Substantial Gross Receipts

What is 8991?

Who files 8991?

How to fill out 8991

Quick fill 8991 on this page

Frequently asked questions

Related forms

Form 8992, U.S. Shareholder Calculation of Global Intangible Low-Taxed Income (GILTI)

Form 8993, Section 250 Deduction for Foreign-Derived Intangible Income (FDII) and GILTI

Form 5472, Information Return of a 25% Foreign-Owned U.S. Corporation or a Foreign Corporation Engaged in a U.S. Trade or Business