Form 8804 (2020)

What Is Form 8804 Used For

Tax Form 8804, or the "Annual Return for Partnership Withholding Tax," plays a crucial role in the United States tax system. This form is primarily used by partnerships that have income effectively connected with a trade or business within the United States and are withholding taxes on foreign partners' share of that income. Form 8804 serves as an annual summary tax return that reports the total liability for the withholding tax under section 1446 for the partnership's tax year.

When to Use Form 8804

Form 8804 is applicable in various situations related to partnerships and their foreign partners:

• Partnerships consisting of foreign partners must use this form to comply with the tax obligations imposed by section 1446.
• Partnerships that receive income connected to a U.S. business should file Form 8804 to report and pay withheld taxes.
• In cases where a partnership disposes of a U.S. real property interest and withholds tax under section 1445, Form 8804 is also necessary.
• If a partnership has withheld any tax on effectually connected taxable income from a foreign partner, this form is used to report the annual total of such withholdings.

How To Fill Out Form 8804 Instructions

Filling out IRS Form 8804 involves a detailed step-by-step process:

• Start by entering the partnership's name, address, Employer Identification Number (EIN), and the tax year information at the top of the form.
• Proceed to Part I, where all the tax year withholding tax liability must be computed. Enter the effectively connected taxable income and the applicable tax rates.
• In Part II, calculate the total tax liability for the year, including any adjustments from credits or previously paid installments.
• Complete Part III by reporting any payments the partnership may have made over the tax year, including the total tax deposited with Form(s) 8813 and any balance due or overpayment.
• An authorized person within the partnership must sign and date Form 8804.
• Ensure that all the necessary schedules and statements are attached, like Schedule A (Form 8804) if applicable, to report the withholding tax based on effectively connected taxable income allocable to foreign partners.