Form 8804-W

What Is Form 8804-W

Form 8804-W is a partnership worksheet to calculate installment payments of tax on income connected to U.S. business activities, specifically for foreign partners. It's a compliance tool under Section 1446 of the Internal Revenue Code, ensuring that partnerships withhold and remit the correct amount of tax for their foreign partners.

Why Do I Need IRS Form 8804 W

This form is crucial for partnerships with foreign partners to compute and remit section 1446 tax installments accurately. It aids in meeting tax obligations and avoiding penalties by ensuring the correct tax amount is withheld from the income attributable to foreign partners.

How To Fill Out Form 8804 W Instructions

Part I - Determination of Installment Payments

Calculate the allocable share of effectively connected taxable income (ECTI) for all foreign partners. Determine the reductions for state and local taxes and certified foreign partner-level items. Calculate the tax on various categories of ECTI by applying the appropriate tax rates.

Part II - Adjusted Seasonal Installment Method

This is applicable if the base period percentage for any six consecutive months is at least 70%. Enter the ECTI for specified tax years and periods. Calculate the adjustments for state and local taxes and certified foreign partner-level items.

Part III - Annualized Income Installment Method

Enter the ECTI for different annualization periods. Adjust the ECTI for taxes and certified foreign partner-level items. Calculate the tax on the annualized ECTI.

Part IV - Required Installments Under Part II and/or Part III

Determine the required installments based on the smaller amounts from Parts II and III. Enter the installment amounts due on specified due dates.