IRS Form 926 "Return by a U.S. Transferor of Property to a Foreign Corporation"

What Is Form 926?

IRS Form 926, Return by a U.S. Transferor of Property to a Foreign Corporation, is a document developed for U.S. citizens and residents, domestic corporations, domestic estate or trusts, who must report certain transfers of property to a foreign corporation.

The document was issued by the Internal Revenue Service (IRS) - a subdivision of the U.S. Department of the Treasury on November 1, 2018. Download a fillable version of IRS Form 926 through the link below or browse more documents in our library of IRS Forms.

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IRS Form 926 Instructions

According to the Form 926 filing requirements, individuals must file the application to report any exchanges or transfer of property to foreign corporations. The transferor must file the document with their income tax return for the tax year that includes the date of transfer.

The application consists of four parts that are presented on three pages:

  1. Part I. U.S. Transferor Information. Here, the applicant must enter their full name and identifying number. According to the instructions, an individual's identifying number is their social security number, the identifying number of other types of applicants is their employer identification number. If a transferor is a corporation, then they must designate additional information which includes information about their shareholders, name of the parent corporation (if applicable), information about a partnership if a transferor was a partner there.
  2. Part II. Transferee Foreign Corporation Information. Applicants use this part of the document to designate information about the transferee, such as a transferee's name, address, country of an organization, foreign law characterization, identifying number (if any), etc. In the "foreign law characterization" line, the applicant must designate the entity classification of the foreign corporation (which is a transferee) under the laws of the country of the organization.
  3. Part III. Information Regarding Transfer of Property. This part of the document is divided into three sections: cash, other property, and intangible property subject. In every section, the applicant must fill in the gaps: typer of the property transferred, date of the transfer, description of the property, cost of the property or other basis, gain recognized on the transfer, etc.
  4. Part III. Additional Information Regarding Transfer of Property. In the last part of the application, filers must state certain types of information, which include the type of nonrecognition transaction, the transferor's interest, the total amount of the recognized gain and loss, etc.

The applicant can use the official instructions for Form 926 which were developed by the IRS to make this process easier. They provide more detailed information on how to fill out each line, as well as useful definitions and samples. For example, according to the instructions, intangible property subjects include:

  • Copyright, literary, musical, or artistic composition;
  • Trademark, trade name, or brand name;
  • Franchise, license, or contract;
  • Patent, invention, formula, process, design, pattern, or know-how;
  • Method, program, system, procedure, campaign, survey, study, forecast, estimate, customer list, or technical data;
  • Any other item the value or potential value of which is not attributable to tangible property or the services of any individual.
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Download IRS Form 926 "Return by a U.S. Transferor of Property to a Foreign Corporation"

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926
Return by a U.S. Transferor of Property
OMB No. 1545-0026
to a Foreign Corporation
Form
(Rev. November 2018)
Go to www.irs.gov/Form926 for instructions and the latest information.
Attachment
Department of the Treasury
128
Attach to your income tax return for the year of the transfer or distribution.
Sequence No.
Internal Revenue Service
Part I
U.S. Transferor Information (see instructions)
Name of transferor
Identifying number (see instructions)
1
Is the transferee a specified 10%-owned foreign corporation that is not a controlled foreign corporation? .
Yes
No
2
If the transferor was a corporation, complete questions 2a through 2d.
a If the transfer was a section 361(a) or (b) transfer, was the transferor controlled (under section 368(c)) by
Yes
No
five or fewer domestic corporations? .
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b Did the transferor remain in existence after the transfer?
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Yes
No
If not, list the controlling shareholder(s) and their identifying number(s).
Controlling shareholder
Identifying number
c If the transferor was a member of an affiliated group filing a consolidated return, was it the parent
corporation? .
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Yes
No
If not, list the name and employer identification number (EIN) of the parent corporation.
Name of parent corporation
EIN of parent corporation
d Have basis adjustments under section 367(a)(4) been made? .
Yes
No
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3
If the transferor was a partner in a partnership that was the actual transferor (but is not treated as such under section 367),
complete questions 3a through 3d.
a List the name and EIN of the transferor’s partnership.
Name of partnership
EIN of partnership
b Did the partner pick up its pro rata share of gain on the transfer of partnership assets?
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Yes
No
c Is the partner disposing of its entire interest in the partnership? .
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Yes
No
d Is the partner disposing of an interest in a limited partnership that is regularly traded on an established
Yes
No
securities market? .
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Part II
Transferee Foreign Corporation Information (see instructions)
4
Name of transferee (foreign corporation)
5a Identifying number, if any
6
Address (including country)
5b Reference ID number
(see instructions)
7
Country code of country of incorporation or organization (see instructions)
8
Foreign law characterization (see instructions)
9
Is the transferee foreign corporation a controlled foreign corporation? .
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Yes
No
926
For Paperwork Reduction Act Notice, see separate instructions.
Form
(Rev. 11-2018)
Cat. No. 16982D
926
Return by a U.S. Transferor of Property
OMB No. 1545-0026
to a Foreign Corporation
Form
(Rev. November 2018)
Go to www.irs.gov/Form926 for instructions and the latest information.
Attachment
Department of the Treasury
128
Attach to your income tax return for the year of the transfer or distribution.
Sequence No.
Internal Revenue Service
Part I
U.S. Transferor Information (see instructions)
Name of transferor
Identifying number (see instructions)
1
Is the transferee a specified 10%-owned foreign corporation that is not a controlled foreign corporation? .
Yes
No
2
If the transferor was a corporation, complete questions 2a through 2d.
a If the transfer was a section 361(a) or (b) transfer, was the transferor controlled (under section 368(c)) by
Yes
No
five or fewer domestic corporations? .
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b Did the transferor remain in existence after the transfer?
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Yes
No
If not, list the controlling shareholder(s) and their identifying number(s).
Controlling shareholder
Identifying number
c If the transferor was a member of an affiliated group filing a consolidated return, was it the parent
corporation? .
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Yes
No
If not, list the name and employer identification number (EIN) of the parent corporation.
Name of parent corporation
EIN of parent corporation
d Have basis adjustments under section 367(a)(4) been made? .
Yes
No
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3
If the transferor was a partner in a partnership that was the actual transferor (but is not treated as such under section 367),
complete questions 3a through 3d.
a List the name and EIN of the transferor’s partnership.
Name of partnership
EIN of partnership
b Did the partner pick up its pro rata share of gain on the transfer of partnership assets?
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Yes
No
c Is the partner disposing of its entire interest in the partnership? .
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Yes
No
d Is the partner disposing of an interest in a limited partnership that is regularly traded on an established
Yes
No
securities market? .
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Part II
Transferee Foreign Corporation Information (see instructions)
4
Name of transferee (foreign corporation)
5a Identifying number, if any
6
Address (including country)
5b Reference ID number
(see instructions)
7
Country code of country of incorporation or organization (see instructions)
8
Foreign law characterization (see instructions)
9
Is the transferee foreign corporation a controlled foreign corporation? .
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Yes
No
926
For Paperwork Reduction Act Notice, see separate instructions.
Form
(Rev. 11-2018)
Cat. No. 16982D
2
Form 926 (Rev. 11-2018)
Page
Part III
Information Regarding Transfer of Property (see instructions)
Section A—Cash
(a)
(b)
(c)
(d)
(e)
Type of
Date of
Description of
Fair market value on
Cost or other
Gain recognized on
property
transfer
property
date of transfer
basis
transfer
Cash
10
Was cash the only property transferred? .
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Yes
No
If “Yes,” skip the remainder of Part III and go to Part IV.
Section B
Other Property (other than intangible property subject to section 367(d))
(a)
(b)
(c)
(d)
(e)
Type of
Date of
Description of
Fair market value on
Cost or other
Gain recognized on
property
transfer
property
date of transfer
basis
transfer
Stock and
securities
Inventory
Other property
(not listed under
another category)
Property with
built-in loss
Totals
11
Did the transferor transfer stock or securities subject to section 367(a) with respect to which a gain
Yes
No
recognition agreement was filed? .
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12
a
Were any assets of a foreign branch (including a branch that is a foreign disregarded entity) transferred to a
foreign corporation?
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If “Yes,” go to line 12b.
b Was the transferor 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? .
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Yes
No
If “Yes,” continue to line 12c. If “No,” skip lines 12c and 12d, and go to line 13.
c Immediately after the transfer, was the domestic corporation a U.S. shareholder with respect to the
transferee foreign corporation? .
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If “Yes,” continue to line 12d. If “No,” skip line 12d, and go to line 13.
d Enter the transferred loss amount included in gross income as required under section 91
$
13
Did the transferor transfer property described in section 367(d)(4)? .
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If “No,” skip Section C and questions 14a through 15.
Section C
Intangible Property Subject to Section 367(d)
(f)
(a)
(b)
(c)
(d)
Type of
(e)
Income inclusion
Date of
Description of
Useful
Arm’s length price
property
Cost or other basis
for year of transfer
transfer
property
life
on date of transfer
(see instructions)
Property described
in sec. 367(d)(4)
Totals
926
Form
(Rev. 11-2018)
3
Form 926 (Rev. 11-2018)
Page
14a Did the transferor transfer any intangible property that, at the time of the transfer, had a useful life
reasonably anticipated to exceed 20 years?
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b At the time of the transfer, did any of the transferred intangible property have an indefinite useful life?
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Yes
No
c Did the transferor choose to apply the 20-year inclusion period provided under Regulations section
1.367(d)-1(c)(3)(ii) for any intangible property? .
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d If the answer to line 14c is “Yes,” enter the total estimated anticipated income or cost reduction attributable
to the intangible property’s, or properties’, as applicable, use(s) beyond the 20-year period described in
$
Regulations section 1.367(d)-1(c)(3)(ii)
15
Was any intangible property transferred considered or anticipated to be, at the time of the transfer or at any
Yes
No
time thereafter, a platform contribution as defined in Regulations section 1.482-7(c)(1)? .
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Supplemental Part III Information Required To Be Reported (see instructions)
Part IV
Additional Information Regarding Transfer of Property (see instructions)
16
Enter the transferor’s interest in the transferee foreign corporation before and after the transfer.
(a) Before
% (b) After
%
17
Type of nonrecognition transaction (see instructions)
18
Indicate whether any transfer reported in Part III is subject to any of the following.
a Gain recognition under section 904(f)(3) .
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b Gain recognition under section 904(f)(5)(F) .
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No
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c Recapture under section 1503(d) .
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d Exchange gain under section 987 .
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19
Yes
No
Did this transfer result from a change in entity classification? .
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20a Did a domestic corporation make a distribution of property covered by section 367(e)(2)? See instructions .
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No
If “Yes,” complete lines 20b and 20c.
b Enter the total amount of gain or loss recognized pursuant to Regulations section 1.367(e)-2(b)
$
c Did the domestic corporation not recognize gain or loss on the distribution of property because the
property was used in the conduct of U.S. trade or business under Regulations section 1.367(e)-2(b)(2)? .
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21
Did a domestic corporation make a section 355 distribution of stock in a foreign controlled corporation
covered by section 367(e)(1)? See instructions
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No
926
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(Rev. 11-2018)
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