Form 926, Return by a U.S. Transferor of Property to a Foreign Corporation
Form 926 reports certain transfers of cash or property by a U.S. person to a foreign corporation, as required under section 6038B. Fill in the official IRS PDF below and download it.
This is the genuine IRS PDF, unmodified. Source: IRS official page.
What is 926?
Form 926, Return by a U.S. Transferor of Property to a Foreign Corporation, is an information return filed by U.S. citizens, residents, domestic corporations, and domestic estates or trusts that transfer property to a foreign corporation in certain exchanges described in sections 6038B, 367(d), and 367(e). It identifies the transferor, the foreign corporation, and the property transferred.
Cash transfers are also reportable when the U.S. person owns at least 10 percent of the foreign corporation after the transfer or the cash transferred during the year exceeds the amount in the instructions. Penalties for not filing can reach a percentage of the property’s value, so the form matters even though it usually involves no tax due with it.
Who files 926?
- U.S. citizens or residents who transfer property to a foreign corporation in a covered exchange
- Domestic corporations contributing assets to foreign subsidiaries
- Domestic estates and trusts making covered transfers
- U.S. persons whose cash contributions to a foreign corporation meet the ownership or dollar tests
How to fill out 926
- Complete Part I with the transferor’s information and answer the questions about related transfers.
- Identify the transferee foreign corporation in Part II, including its country of incorporation.
- Describe the transfer in Part III: the date, the type of property, its fair market value, and basis.
- Answer the Part IV questions about the nature of the transfer and any intangibles subject to section 367(d).
- Download the finished PDF and attach it to your income tax return for the year of the transfer.
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Frequently asked questions
Do I need to file Form 926 for a cash-only transfer?
Sometimes. A cash transfer is reportable if immediately after it you hold at least 10 percent of the foreign corporation by vote or value, or your cash transfers to that corporation during the 12-month period exceed the threshold in the instructions.
What is the penalty for not filing?
Generally 10 percent of the fair market value of the property transferred, subject to a cap, unless the failure is due to reasonable cause. The statute of limitations on the transfer can also stay open, so filing on time protects you.
Is Form 926 the same as Form 5471?
No. Form 926 reports specific transfers of property to a foreign corporation. Form 5471 is an annual information return about ownership of certain foreign corporations. The same transaction can trigger both filings.