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フォーム926の手順、米国外法人への財産譲渡による返還

2018年11月改定

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Department of the Treasury  
Internal Revenue Service  
Instructions for Form 926  
(Rev. November 2018)  
Return by a U.S. Transferor of Property to a Foreign Corporation  
Section references are to the Internal  
Revenue Code unless otherwise noted.  
Transfers of stock or securities  
General Instructions  
for which a gain recognition  
agreement (GRA) is filed. A U.S.  
transferor must file a Form 926 with  
respect to a transfer of stock or  
securities in all cases in which a GRA  
is filed under Regulations section  
1.367(a)-8. Provided that the initial  
GRA is timely filed (determined  
without regard to Regulations section  
1.367(a)-8(p)), then, with respect to  
the transfer of the stock or securities,  
the U.S. transferor should (1)  
Future Developments  
What's New  
For the latest information about  
developments related to Form 926  
and its instructions, such as  
Form 926, line 1 is new. For transfers  
occurring after 2017, taxpayers are  
required to specify whether a  
reportable property transfer was to a  
foreign corporation that is a  
legislation enacted after they were  
published, go to IRS.gov/Form926.  
non-controlled “specified 10%-owned  
foreign corporation” as defined in  
section 245A, which was added to the  
Code by section 14101(a) of the Tax  
Cuts and Jobs Act (TCJA) (P.L.  
115-97).  
Purpose of Form  
Use Form 926 to report certain  
transfers of tangible or intangible  
property to a foreign corporation, as  
required by section 6038B.  
complete Part I and Part II of Form  
926; (2) complete columns (a) through  
(e) of the "Stock and securities" line in  
Part III, Section B, of the form, and  
check the “Yes” box on line 11; and  
(3) complete the Supplemental Part III  
Information Required To Be Reported  
section at the end of Part III of the  
form using the Line 11 instructions  
under the Supplemental Part III  
Information Required To Be Reported  
section, later. In addition, the U.S.  
transferor must comply in all material  
respects with the terms of a GRA  
(determined without regard to  
For transfers after 2017, section  
14102(e) of the TCJA repealed the  
active trade or business exception  
under section 367. Transfers of  
tangible property (other than certain  
stock transfers) are subject to full gain  
recognition under the general rule of  
section 367(a)(1).  
Who Must File  
Generally, a U.S. citizen or resident, a  
domestic corporation, or a domestic  
estate or trust must complete and file  
Form 926 to report certain transfers of  
property to a foreign corporation that  
are described in section 6038B(a)(1)  
(A), 367(d), or 367(e). See section  
6038B and Regulations sections  
1.6038B-1 and 1.6038B-1T for more  
information.  
TCJA section 14102(d) added section  
91 to the Code. New section 91  
provides rules for transfers of foreign  
branch assets to foreign corporations  
requiring the transferor to include a  
“Transferred Loss Amount” as  
income.  
Regulations section 1.367(a)-8(p)) in  
order to satisfy its section 6038B  
reporting obligations. See Regulations  
section 1.6038B-1 for further  
Special Rules  
Transfers by a partnership. If the  
transferor is a partnership (domestic  
or foreign), the domestic partners of  
the partnership, not the partnership  
itself, are required to comply with  
section 6038B and file Form 926.  
Each domestic partner is treated as a  
transferor of its proportionate share of  
the property. See the instructions for  
line 3 for additional information.  
For transfers in tax years beginning  
after 2017, TCJA section 14221  
revised the definition of intangible  
property under section 936(h)(3)(B)  
so that it now includes goodwill, going  
concern value, workforce in place,  
and any other item the value or  
information.  
Distributions by domestic  
liquidating corporations. A  
domestic liquidating corporation must  
file a Form 926 with respect to a  
distribution of property in complete  
liquidation under section 332 to a  
foreign distributee corporation that  
meets the stock ownership  
potential value of which is not  
Transfers by spouses. Spouses  
attributable to tangible property or the  
services of an individual. The  
may file Form 926 jointly, but only if  
they file a joint income tax return.  
requirements of section 332(b). If the  
distribution qualifies for the exception  
in Regulations section 1.367(e)-2(b)  
(2)(i) or (iii), then, provided that all  
initial liquidation documents are timely  
filed (determined without regard to  
Regulations section 1.367(e)-2(f)), the  
domestic liquidating corporation  
should complete Form 926 and, in the  
Supplemental Information Required  
To Be Reported section at the end of  
Part III of the form, note that the  
definition in section 936(h)(3)(B) was  
subsequently redesignated (without  
substantive change from TCJA) as  
section 367(d)(4) by Division U, Title  
IV, section 401(d)(1)(D)(viii)(l) of the  
Consolidated Appropriations Act,  
2018, P.L. 115-141. This revision  
affects the question on Form 926,  
line 13 and the information entered on  
Form 926, Part III, Section C.  
Transfers of cash. A U.S. person  
that transfers cash to a foreign  
corporation must report the transfer  
on Form 926 if (a) immediately after  
the transfer, the person holds, directly  
or indirectly, at least 10% of the total  
voting power or the total value of the  
foreign corporation; or (b) the amount  
of cash transferred by the person to  
the foreign corporation during the  
12-month period ending on the date of  
the transfer is more than $100,000.  
See Regulations section 1.6038B-1(b)  
(3).  
information required by Form 926 is  
contained in the statement required  
by Regulations section 1.367(e)-2(b)  
Oct 30, 2018  
Cat. No. 27037X  
(2)(i)(C)(2) or (iii)(D). In addition, the  
domestic liquidating corporation must  
comply in all material respects with  
the terms of a liquidation document  
(determined without regard to  
The transfer was taxable to the U.S. statute of limitations with respect to  
transferor under Regulations section  
the gain realized but not recognized  
on the transfer.  
1.367(a)-3(c) and such person  
properly reported the income from the  
transfer on its timely filed return  
Penalties for Failure To File  
If a taxpayer fails to comply with  
Regulations section 1.367(e)-2(f)) in  
order to satisfy its section 6038B  
reporting obligations. See specific  
instructions for lines 20a and 20b in  
Part IV—Additional Information  
(including extensions) for the tax year  
that includes the date of transfer, or  
section 6038B, the penalty equals  
10% of the fair market value of the  
property at the time of the transfer.  
The penalty will not apply if the failure  
to comply is due to reasonable cause  
and not to willful neglect. The penalty  
is limited to $100,000 unless the  
failure to comply was due to  
The transfer is considered to be to  
a foreign corporation solely by reason  
of Regulations section 1.83-6(d)(1)  
and the fair market value of the  
Regarding Transfer of Property, later,  
for more information. See Regulations property transferred did not exceed  
section 1.6038B-1 for further  
information.  
$100,000.  
b. The U.S. transferor owned 5%  
intentional disregard. Moreover, the  
period of limitations for assessment of  
tax upon the transfer of that property  
is extended to the date that is 3 years  
after the date on which the information  
required to be reported is provided.  
or more of the total voting power or  
the total value of the transferee  
foreign corporation immediately after  
the transfer and:  
Exceptions to Filing  
1. For exchanges described in  
section 354 or 356, a U.S. person  
does not have to file Form 926 if:  
The U.S. transferor is a tax-exempt  
entity and the income was not  
unrelated business income, or  
a. The U.S. person exchanges  
stock of a foreign corporation in a  
recapitalization described in section  
368(a)(1)(E), or  
Section 6662(j) Penalty  
The transfer was taxable to the U.S.  
A 40% penalty may be imposed on  
any underpayment resulting from an  
undisclosed foreign financial asset  
understatement. No penalty will be  
imposed with respect to any portion of  
an underpayment if the taxpayer can  
demonstrate that the failure to comply  
was due to reasonable cause with  
respect to such portion of the  
transferor and such person properly  
reported the income from the transfer  
on its timely filed return, or  
b. The U.S. person exchanges  
stock of a domestic or foreign  
corporation for stock of a foreign  
corporation under an asset  
The transfer is considered to be to  
a foreign corporation solely by reason  
of Regulations section 1.83-6(d)(1)  
and the fair market value of the  
property transferred did not exceed  
$100,000.  
reorganization described in section  
368(a)(1) that is not treated as an  
indirect stock transfer under  
underpayment and the taxpayer acted  
in good faith with respect to such  
portion of the underpayment. See  
sections 6662(j) and 6664(c) for  
additional information.  
Regulations section 1.367(a)-3(d).  
2. Generally, a domestic  
When and How To File  
corporation that distributes stock or  
securities of a domestic corporation  
under section 355 is not required to  
file Form 926. However, this  
Form 926 must be filed with the U.S.  
transferor's income tax return (or, if  
applicable, exempt organization  
return) for the tax year that includes  
the date of the transfer.  
Specific Instructions  
exception does not apply if the  
distribution is of stock or securities of  
a foreign controlled corporation to a  
distributee shareholder who is not a  
U.S. citizen or resident or a domestic  
corporation. See specific instructions  
for Part IV, line 21, later, for more  
information.  
Important: All information reported on  
Form 926 must be in English. All  
amounts must be stated in U.S.  
dollars. If the information required in a  
given section exceeds the space  
provided within that section, do not  
write “see attached” in the section and  
then attach all of the information on  
additional sheets. Instead, complete  
all entry spaces in the section and  
attach the remaining information on  
additional sheets. The additional  
sheets must conform with the IRS  
version of that section.  
The Form 926 filed with the  
IRS must include the  
!
CAUTION  
additional information  
required in Regulations sections  
1.6038B-1(c) through (e) and  
Temporary Regulations sections  
1.6038B-1T(c) and (d).  
3. A U.S. person that transfers  
stock or securities under section  
367(a) does not have to file Form 926  
if either a or b below applies.  
a. The U.S. transferor owned less  
than 5% of both the total voting power  
and the total value of the transferee  
foreign corporation immediately after  
the transfer and:  
Other Forms That May Be  
Required  
Persons filing this form may be  
required to file FinCEN Form 114,  
Report of Foreign Bank and Financial  
Accounts (FBAR).  
A U.S. transferor that is required to  
The U.S. transferor qualified for  
enter into a GRA under section 367 to  
nonrecognition treatment with respect qualify for nonrecognition treatment  
to the transfer, or  
must file Form 8838, Consent To  
Extend the Time To Assess Tax  
Under Section 367—Gain  
The U.S. transferor is a tax-exempt  
entity and the income was not  
unrelated business income, or  
Recognition Agreement, to extend the  
Instructions for Form 926 (Rev. 11-2018)  
-2-  
the controlling shareholders and their  
identifying numbers.  
below) you have assigned to the  
transferee foreign corporation.  
Part I—U.S. Transferor  
Information  
Identifying number. The identifying  
number of an individual is his or her  
social security number (SSN). The  
identifying number of all others is their  
employer identification number (EIN).  
Line 1. Check the “Yes” box on  
line 1 if the transferee is a specified  
10%-owned foreign corporation that is  
not a controlled foreign corporation  
(as defined in section 957(a)).  
A specified 10%-owned foreign  
corporation is defined in section  
245A(b)(1) as any foreign corporation  
with respect to which any domestic  
corporation is a U.S. shareholder. A  
controlled foreign corporation is  
defined in section 957(a) as any  
foreign corporation if, on any day  
during the tax year of such foreign  
corporation, U.S. shareholders own  
(within the meaning of section  
A “reference ID number” is a  
number established by or on behalf of  
the U.S. transferor identified at the top  
of page 1 of the form that is assigned  
to the transferee foreign corporation  
with respect to which Form 926  
reporting is required. These numbers  
are used to uniquely identify the  
transferee foreign corporation in order  
to keep track of the entity from tax  
year to tax year. The reference ID  
number must meet the requirements  
set forth below.  
Line 2c. If the transferor was a  
member of an affiliated group filing a  
consolidated tax return (see sections  
1501 through 1504), but was not the  
parent corporation, list the name and  
EIN of the parent corporation and file  
Form 926 with the parent  
corporation's consolidated return.  
Line 2d. If the answer to line 2d is  
"Yes," and if the asset is transferred in  
an exchange described in section  
361(a) or (b), attach the following.  
A statement that the conditions set  
forth in the second sentence of  
section 367(a)(4) and any regulations  
under that section have been  
satisfied.  
Note. Because reference ID numbers  
are established by or on behalf of the  
U.S. person filing Form 926, there is  
no need to apply to the IRS to request  
a reference ID number or for  
An explanation of any basis or other  
adjustments made pursuant to section  
367(a)(4) and any regulations  
thereunder.  
permission to use these numbers.  
Note. In general, the reference ID  
number assigned to a transferee  
foreign corporation on Form 926 has  
relevance only to Form 926 and  
should not be used with respect to the  
transferee foreign corporation on  
other IRS forms.  
Requirements. The reference ID  
number must be alphanumeric  
(defined below) and no special  
characters or spaces are permitted.  
The length of a given reference ID  
number is limited to 50 characters.  
Line 3. If a partnership (whether  
foreign or domestic) transfers property  
to a foreign corporation in an  
958(a)), or are considered to own by  
applying the rules of ownership of  
section 958(b), more than 50% of (1)  
the total combined voting power of all  
classes of stock of such corporation  
entitled to vote, or (2) the total value of  
the stock of such corporation.  
Check the “No” box on line 1 and  
check the “Yes” box in Part II, line 9, if  
the transferee foreign corporation is a  
controlled foreign corporation.  
Line 2a. If you answered “Yes” to  
question 2a and the asset is stock,  
section 367(a)(4) may require basis  
adjustments. If you answered “No” to  
question 2a and the asset is a tangible  
asset, the transfer is taxable under  
sections 367(a)(1) and (a)(4). If the  
asset transferred is an intangible  
asset, see section 367(d) and its  
regulations.  
If you answered “No” to question  
2a: If the U.S. transferor is owned  
directly by more than five domestic  
corporations immediately before the  
reorganization, but some combination  
of five or fewer domestic corporations  
controls the U.S. transferor, the U.S.  
transferor must designate the five or  
fewer domestic corporations that  
comprise the control group. List these  
designated corporations on Form 926,  
line 2b.  
exchange described in section 367(a)  
(1), then any U.S. person that is a  
partner in the partnership shall be  
treated as having transferred a  
proportionate share of the property in  
an exchange described in section  
367(a)(1). A U.S. person's  
proportionate share of partnership  
property shall be determined under  
the rules and principles of sections  
701 through 761 and the regulations  
thereunder. See Temporary  
For these purposes, the term  
“alphanumeric” means the entry can  
be alphabetical, numeric, or any  
combination of the two.  
Regulations section 1.367(a)-1T(c)  
(3).  
The same reference ID number  
must be used consistently from tax  
year to tax year with respect to a given  
transferee foreign corporation. If for  
any reason a reference ID number  
falls out of use (for example, the  
transferee foreign corporation no  
longer exists due to disposition or  
liquidation), the reference ID number  
used for that transferee foreign  
Line 3d. For the definition of  
“regularly traded on an established  
securities market,” see Temporary  
Regulations section 1.367(a)-1T(c)(3)  
(ii)(D). If the answer to line 3d is “Yes,”  
the rules of Temporary Regulations  
section 1.367(a)-1T(c)(3)(ii)(C) apply.  
Part II—Transferee  
Foreign Corporation  
Information  
corporation cannot be used again for  
another transferee foreign corporation  
for purposes of Form 926 reporting.  
Line 5b, Reference ID number. A  
reference ID number is required on  
line 5b only in cases where no EIN  
was entered on line 5a for the  
There are some situations that  
warrant correlation of a new reference  
ID number with a previous reference  
ID number when assigning a new  
reference ID number to a transferee  
foreign corporation. For example:  
transferee foreign corporation.  
However, filers are permitted to enter  
both an EIN and a reference ID  
number. If applicable, enter on line 5b  
the reference ID number (defined  
Line 2b. If the transferor went out of  
existence pursuant to the transfer (for  
example, as in a reorganization  
In the case of a merger or  
acquisition, a Form 926 filer must use  
a reference ID number which  
described in section 368(a)(1)(C)), list  
Instructions for Form 926 (Rev. 11-2018)  
-3-  
correlates the previous reference ID  
number with the new reference ID  
number assigned to the transferee  
foreign corporation; or  
a controlled foreign corporation  
immediately after the transfer.  
Stock and securities. In column  
(b), for each stock or security, provide  
the class or type and the name of the  
issuing corporation. See the Line 11  
instructions in the Supplemental Part  
III Information Required To Be  
Part III—Information  
Regarding Transfer of  
Property  
In the case of an entity  
classification election that is made on  
behalf of a transferee foreign  
Reported section, later, for additional  
reporting requirements.  
Information in Part III is reported in  
three sections. Collectively, the three  
sections capture information with  
regard to all of the properties  
corporation on Form 8832,  
Regulations section 301.6109-1(b)(2)  
(v) requires the transferee foreign  
corporation to have an EIN for this  
election. For the first year that Form  
926 is filed after an entity  
Property with built-in loss.  
Complete columns (a) through (d)  
including the description of each item  
transferred with a built-in loss that is  
realized but not recognized. Section  
367(a)(1) requires gain recognition  
attributed to transferred property  
(other than intangible property subject  
to section 367(d) or certain stock  
transfers under section 367(a) if  
certain conditions are met); however,  
such gain recognized on the  
transferred. The properties covered  
by each section, respectively, are:  
Cash (“Section A”),  
classification election is made on  
behalf of the transferee foreign  
Other property (other than  
intangible property subject to section  
367(d)) (“Section B”), and  
corporation on Form 8832, you must  
enter the new EIN on line 5a and the  
old reference ID number on line 5b. In  
subsequent years, the Form 926 filer  
may continue to enter both the EIN  
and the reference ID number, but  
must enter at least the EIN on line 5a.  
Intangible property subject to  
section 367(d) (“Section C”).  
For information that generally must  
be included for a transfer described in  
section 6038B(a)(1)(A), see the  
beginning of the Supplemental Part III  
Information Required To Be Reported  
section, later.  
transferred property may not be  
reduced or netted by realized losses  
attributed to transferred built-in loss  
property. No loss is allowed under  
section 367(a)(1) for transferred  
built-in loss property.  
If the transfer was a distribution of  
property in complete liquidation under  
section 332, you must complete  
columns (a) through (d) as described  
above. You may use any built-in  
losses under section 367(e)(2) to  
reduce the overall recognized gain  
from the liquidating distribution, but  
not below zero, for purposes of  
determining the amount entered on  
line 20b in Part IV. See Regulations  
section 1.367(e)-2(b)(1)(ii)(B) for the  
overall loss limitation.  
In the case of a merger or  
acquisition, you must correlate the  
reference ID numbers as follows: New  
reference ID number [space] Old  
reference ID number. If there is more  
than one old reference ID number,  
you must enter a space between each  
such number. As indicated above, the  
length of a given reference ID number  
is limited to 50 characters and each  
number must be alphanumeric with no  
special characters.  
If additional row(s) are needed to  
enter information for a property  
category in a Section in Part III,  
provide the information in the same  
format as required for the row in the  
Section at issue in the Supplemental  
Part III Information Required To Be  
Reported section. For each property  
category with such additional row(s),  
in the Section enter “See  
Note. This correlation requirement  
applies only to the first year the new  
reference ID number is used.  
Supplemental” under column (b),  
Description of Property, on the last  
row of the property category and enter  
in the remaining columns on that last  
row the aggregated amounts from the  
corresponding columns on the  
additional rows.  
Line 6, Address. Enter the  
information in the following order: city,  
province or state, and country. Follow  
the country's practice for entering the  
postal code, if any. Do not abbreviate  
the country name; however, if you file  
electronically, please follow the  
convention specified.  
In general, the following  
instructions apply to columns (a)  
through (e).  
For distributions covered by section  
367(e)(2), see the instructions for  
lines 20a through 20c, later.  
Column (a), Date of transfer. Enter  
the first date on which title to,  
possession of, or rights to the use of  
the property passed for U.S. income  
tax purposes. See Temporary  
Section A  
Section A captures information  
regarding cash.  
Line 7. Enter the two-letter country  
code (from the list at IRS.gov/  
countrycodes) of the transferee  
foreign corporation's country of  
incorporation or organization.  
Regulations section 1.6038B-1T(b)(4)  
for additional information.  
Line 10. If cash was the only property  
transferred, skip the remainder of Part Column (b), Description of proper-  
Line 8. List the entity classification  
(for example, partnership,  
III and proceed to Part IV.  
ty. Provide a description of the  
property transferred.  
Section B  
corporation, etc.) of the transferee  
foreign corporation under the laws of  
the country of incorporation or  
organization.  
Column (c), Fair market value on  
date of transfer. Enter the fair  
market value of the property  
transferred (measured as of the date  
of transfer).  
Section B captures information  
regarding property (other than cash  
and intangible property subject to  
section 367(d)) that is subject to full  
gain recognition under the general  
rule of section 367(a)(1).  
Line 9. See section 957(a) to  
determine whether the corporation is  
Instructions for Form 926 (Rev. 11-2018)  
-4-  
foreign corporation. The transferred  
loss amount determined under  
section 91(b) is:  
1. The sum of losses incurred by  
the foreign branch or FDE after  
December 31, 2017, and before the  
transfer and with respect to which a  
deduction was allowed to the U.S.  
transferor, reduced by;  
Column (d), Cost or other basis.  
Enter the adjusted basis in the  
Column (a), Date of transfer. Enter  
the first date on which title to,  
property transferred on the date of the  
transfer. See sections 1011 through  
1016 for more information for the  
determination of adjusted basis.  
possession of, or rights to the use of  
the property passed for U.S. income  
tax purposes. See Temporary  
Regulations section 1.6038B-1T(b)(4)  
for additional information.  
Column (e), Gain recognized on  
transfer. Enter the gain recognized  
on the transfer of each property.  
Column (b), Description of proper-  
ty. Provide a separate description for  
each identified intangible, including  
each identified (i) patent, invention,  
formula, process, design, pattern, or  
know-how; (ii) copyright, literary,  
musical, or artistic composition; (iii)  
trademark, trade name, or brand  
name; (iv) franchise, license, or  
contract; (v) method, program,  
2. The sum of:  
Line 11. Indicate whether a gain  
recognition agreement was filed  
pursuant to Regulations section  
1.367(a)-8 for a transfer of stock or  
securities. If “Yes,” complete the  
Supplemental Part III Information  
Required To Be Reported section at  
the end of Part III using the Line 11  
instructions under the Supplemental  
Part III Information Required To Be  
Reported section, later.  
Line 12a. Check “Yes” to line 12a if  
any of the property transferred to a  
foreign corporation consisted of  
assets of a foreign branch (or a  
branch that is a foreign disregarded  
entity (FDE)). If you check “Yes,”  
continue to line 12b; otherwise skip  
lines 12b through 12d.  
Line 12b. Check “Yes” to line 12b if  
the property transferred to a specified  
10%-owned foreign corporation  
consisted of substantially all of the  
assets of a foreign branch (or a  
branch that is an FDE). If you check  
“Yes” to line 12b, you must complete  
line 12c. See the definition of  
specified 10%-owned foreign  
corporation in the instructions to  
line 1, earlier; however, for these  
purposes, the definition applies  
without regard to whether the  
corporation is a controlled foreign  
corporation.  
Line 12c. Check “Yes” to line 12c if  
the transferor was a domestic  
corporation and immediately after the  
transfer the domestic corporation was  
a U.S. shareholder (10%-or-more  
shareholder) with respect to the  
transferee foreign corporation. If  
“Yes,” continue to line 12d; otherwise  
skip line 12d.  
a. Any taxable income of such  
branch for a tax year after the tax year  
in which the loss was incurred and  
through the close of the tax year of the  
transfer, and  
b. Any amount recognized under  
section 904(f)(3) resulting from the  
transfer.  
system, procedure, campaign, survey,  
study, forecast, estimate, customer  
list, or technical data; (vi) any  
See section 91(c) and the transition  
rule provided by TCJA section  
14102(d)(4) for a possible reduction  
of the transferred loss amount in  
certain circumstances.  
If the transferred loss amount is  
zero or less, enter zero on line 12d (no  
transferred loss amount is required to  
be recognized by the U.S. transferor  
on the transfer under section 91).  
If the transferred loss amount is  
greater than zero, enter the amount as  
a positive number on line 12d and  
report this amount as other income on  
Form 1120, page 1, line 10 (other  
income) or on the corresponding line  
of the applicable 1120-series form.  
Identify the amount as “Section 91  
Transferred Loss Amount.” See also  
the Line 12d instructions under the  
Supplemental Part III Information  
Required To Be Reported section,  
later, for additional information that  
must be reported.  
goodwill, going concern value, or  
workforce in place (including its  
composition and terms and conditions  
(contractual or otherwise) of its  
employment); or (vii) any other item  
the value or potential value of which is  
not attributable to tangible property or  
the services of any individual.  
Column (c), Useful life. Enter the  
useful life for each intangible. The  
useful life of intangible property is  
defined under Regulations section  
1.367(d)-1(c)(3)(i). If the useful life of  
intangible property is indefinite, enter  
“indefinite.” Regulations section  
1.367(d)-1(c)(3)(ii) is not relevant to  
the determination of the useful life  
entered in column (c).  
Column (d), Arm’s length price on  
date of transfer. Generally, if a U.S.  
person transfers intangible property  
subject to section 367(d), such person  
shall, over the useful life of the  
property, annually include in gross  
income an amount that represents an  
appropriate arm’s length charge for  
use of the property. The appropriate  
charge is determined in accordance  
with the provisions of section 482 and  
the regulations thereunder. See  
Temporary Regulations section  
1.367(d)-1T(c)(1). For each intangible  
reported in Section C, provide the  
arm’s length price on the date of  
transfer. See the instructions below  
for information that must be included  
in the Supplemental Part III  
Section C  
Section C captures information  
regarding transfers of intangible  
property subject to section 367(d).  
Property described in section  
367(d)(4). Complete columns (a)  
through (f) for each identified  
transferred section 367(d)(4)  
intangible. See the related instructions  
for Section C under the Supplemental  
Part III Information Required To Be  
Reported section at the end of Part III,  
later, for additional information that  
you must report.  
Line 12d. Under section 91, the U.S.  
transferor must include in gross  
income an amount equal to the  
transferred loss amount, if any, as  
defined in section 91(b) upon a  
transfer of substantially all of the  
Information Required To Be Reported  
section.  
In general, the following  
assets of a foreign branch (including a instructions apply to columns (a)  
foreign branch that is an FDE) to a  
through (f).  
Instructions for Form 926 (Rev. 11-2018)  
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section 367(d), to reflect amounts  
that, but for the choice to increase  
annual inclusions, would have been  
required to be included following the  
end of the 20-year period. To apply  
this 20-year inclusion period, a  
Column (e), Cost or other basis.  
Enter the adjusted basis in the  
Additional Section rows. If you  
need additional rows to enter  
property transferred on the date of the  
transfer. See sections 1011 through  
1016 for more information for the  
determination of adjusted basis.  
information for a property category in  
a Section in Part III, provide the  
information in the same format as  
required for the row in the Section at  
issue in the Supplemental Part III  
Information Required To Be Reported  
section. See the beginning of the Part  
III instructions, earlier, for how to  
incorporate the information from the  
additional rows.  
taxpayer must attach a statement  
titled “Application of the 20-year  
Inclusion Period to Section 367(d)  
Transfer” to a timely filed original  
federal income tax return (including  
extensions) for the year of the  
Column (f), Income inclusion for  
year of transfer. A U.S. person who  
transfers property subject to section  
367(d) is treated as having sold such  
property in exchange for payments  
which are contingent upon the  
transfer. See Regulations section  
1.367(d)-1(c)(3)(ii). If the answer to  
line 14c is “Yes,” see the Line 14c and  
Line 14d instructions below for  
productivity, use, or disposition of  
such property and receiving amounts  
annually over the useful life of the  
property that represent an appropriate  
arm’s length charge for use of the  
property. For each intangible  
Line 11. If the answer to the line 11  
question is “Yes,” for any stock or  
securities transferred, provide a  
general description of the corporation  
issuing the stock or securities. See  
Regulations section 1.6038B-1(c)(4)  
(ii).  
Lines 12b–d. If the answer to lines  
12b and 12c is “Yes,” provide the  
following information.  
information that must be included in  
the Supplemental Part III Information  
Required To Be Reported section at  
the end of Part III of the form.  
transferred, enter the amount included  
in income under section 367(d) on the  
income tax return for the year of the  
transfer. If the amount reported in  
column (d) as the arm’s length price  
for intangible property is an allocation  
of an amount determined based on an  
aggregate analysis, enter the  
Supplemental Part III  
Information Required To Be  
Reported  
Information to be generally repor-  
ted for a transfer described in sec-  
tion 6038B(a)(1)(A). Provide a  
general description of the transfer and  
any wider transaction of which it forms  
a part, including a chronology of the  
transfers involved and an  
Describe the foreign branch whose  
property is transferred.  
Describe the property of the foreign  
branch, including its adjusted basis  
and fair market value.  
inclusion amount in column (f) that  
corresponds to the allocated amount  
reported in column (d). If no amount is  
so included, enter “0.” Include in the  
amount entered in column (f) gain  
recognized as a result of making an  
election to treat a transfer of certain  
intangible property as a sale under  
Temporary Regulations section  
Set forth a detailed calculation of  
the transferred loss amount. Provide,  
on a year-by-year basis, amounts of  
the losses generated by such foreign  
branch after December 31, 2017, as  
well as any income amounts  
identification of the other parties to the  
transaction to the extent known. See  
Temporary Regulations section  
1.6038B-1T(c)(2)(ii).  
Provide a description of the  
consideration received by the U.S.  
person making the transfer. The  
description should identify:  
generated after such loss year.  
Provide the amount, if any,  
1.367(d)-1T(g)(2). The amount  
recognized under section 904(f)(3) on  
account of the transfer.  
entered in column (f) should reflect  
the application of Regulations section  
1.367(d)-1(c)(3)(ii), if properly chosen.  
See line 14c and related instructions  
below. See also the Line 14c  
Set forth a detailed summary of the  
gain (other than the section 91  
transferred loss amount) recognized  
by the transferor, including any  
section 367(a)(1) gain recognized on  
the transfer of property. See section  
91(c).  
The property comprising the  
consideration and the total fair market  
value of the items; and  
instructions under the Supplemental  
Part III Information Required To Be  
Reported section, later, for additional  
information that must be reported.  
In the case of stock or securities,  
the class, type, amount, and  
characteristics of the interest  
received.  
Set forth a calculation of the net  
Line 14c. In cases where the useful  
life of the transferred intangible  
sum of the previously deducted losses  
incurred by such foreign branch for  
tax years before January 1, 2018, that  
would have been recaptured under  
section 367(a)(3)(C), as determined  
without regard to the repeal of the  
section 367(a)(3) active trade or  
business exception. See the transition  
rule provided by TCJA section  
14102(d)(4).  
See Temporary Regulations  
sections 1.6038B-1T(c)(3) and  
1.6038B-1T(d)(1)(iii).  
Information to be reported. When  
providing any information in the  
Supplemental Part III Information  
Required To Be Reported section,  
indicate the Section, column, row, and  
line for which the information is being  
provided.  
property is indefinite or reasonably  
anticipated to be more than 20 years,  
a taxpayer may, instead of including  
amounts in income during the entire  
useful life of the intangible property,  
choose in the year of transfer to  
increase annual inclusions during the  
20-year period beginning with the first  
year in which the U.S. transferor takes  
into account income pursuant to  
Instructions for Form 926 (Rev. 11-2018)  
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rise to the reporting obligation (for  
example, section 332, 351, 354, 356,  
or 361).  
Line 18a. If gain recognition was  
required under section 904(f)(3) with  
respect to any transfer reported in  
Part III, attach a statement identifying  
the transfer and the amount of gain  
recognized.  
complete liquidation under section  
332 to a foreign corporation that  
meets the stock ownership  
Section C, column (d). Provide a  
brief explanation of how you  
determined the arm’s length price on  
the date of transfer for each  
intangible.  
Section C, column (f). If you  
included an amount greater than zero,  
provide a brief explanation of how you  
figured the income inclusion for the  
year of the transfer. Provide and  
explain the calculation of the annual  
deemed payment. See Temporary  
Regulations section 1.6038B-1T(d)(1)  
(v).  
Line 14c. If the answer to the line 14c  
question is “Yes,” describe the  
property for which the transferor  
chose to apply the 20-year inclusion  
period. See Regulations sections  
1.6038B-1(d)(1)(iv) and 1.367(d)-1(c)  
(3)(ii).  
Explain how you figured the  
increase to the deemed payment rate  
for property transferred. See  
requirements of section 332(b) with  
respect to stock in the domestic  
liquidating corporation.  
If the answer to line 20a is "Yes,"  
complete lines 20b and 20c and  
provide the following information in  
the Supplemental Part III Information  
Required To Be Reported section.  
Preface this supplemental information  
on the form with the heading “Section  
367(e)(2) Information.”  
Line 18b. If gain recognition was  
required under section 904(f)(5)(F)  
with respect to any transfer reported  
in Part III, attach a statement  
identifying the transfer and the  
amount of gain recognized.  
A description, including the  
adjusted tax basis and fair market  
value, of all property distributed by the  
distributing corporation (regardless of  
whether the distribution of the  
property qualifies for nonrecognition  
treatment).  
Line 18c. If recapture was required  
under section 1503(d) (dual  
consolidated loss) with respect to any  
transfer reported in Part III, attach a  
statement identifying the transfer and  
the amount of recapture. See section  
1503(d) and the regulations  
If the answer to line 20c is "Yes," an  
identification of the items of property  
for which nonrecognition treatment is  
claimed under Regulations section  
1.367(e)-2(b)(2)(ii) or (iii), as  
applicable.  
thereunder.  
Line 18d. If exchange gain  
recognition was required under  
section 987 with respect to any  
transfer reported in Part III, attach a  
statement identifying the transfer and  
the amount of exchange gain  
recognized. See Regulations section  
1.987-5.  
Line 19. If this transfer resulted from  
a change in entity classification (a  
deemed transfer resulting from a  
classification change on Form 8832,  
Entity Classification Election, or a  
termination of a section 1504(d)  
election), check the “Yes” box. If the  
transfer was an actual transfer of  
property to a foreign corporation,  
check the “No” box.  
Regulations sections 1.6038B-1(d)(1)  
(iv) and 1.367(d)-1(c)(3)(ii). The  
explanation should include how you  
figured the deemed payment rate for  
each period of the useful life of the  
intangible property and the 20-year  
inclusion period.  
Line 14d. If the answer to the  
question on line 14c is “Yes,” explain  
how you estimated the anticipated  
income or cost reduction attributable  
to the property’s (or properties’) use  
beyond the 20-year period. See  
Regulations section 1.6038B-1(d)(1)  
(iv).  
Line 20b. If the answer to line 20a is  
“Yes,” enter the total amount of gain or  
loss recognized according to  
Regulations section 1.367(e)-(2)(b).  
Under section 367(e)(2), you may not  
recognize loss in excess of gain on  
the distribution. If realized losses  
exceed recognized losses on  
transferred property, the loss is  
recognized on a pro rata basis and  
used to offset recognized gain on  
other transferred property in the  
category of assets (that is, capital or  
ordinary), but not below zero. Enter  
the net amount on line 20b.  
Part IV— Additional  
Information Regarding  
Transfer of Property  
Line 20a. Check the “Yes” box on  
line 20a if the domestic corporation  
(domestic liquidating corporation)  
made a distribution of property in  
Line 17. List the type of  
nonrecognition transaction that gave  
Instructions for Form 926 (Rev. 11-2018)  
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intangible property do not qualify for  
controlled corporation to a foreign  
Line 20c. If the answer to line 20c is  
“Yes,” see Regulations section  
nonrecognition and thus are subject to corporation. Section 367(e)(1) and  
gain recognition.  
Regulations section 1.367(e)-1  
require the distributing domestic  
corporation to recognize gain (not  
loss) on the distribution. See  
1.367(e)-2(b)(2)(i) for further guidance  
on the conditions for nonrecognition  
for distributions of certain qualifying  
property and additional reporting  
documentation that is required.  
Line 21. Check “Yes” to line 21 if the  
transferor is a domestic corporation  
that makes a section 355 distribution  
(or so much of section 356 as relates  
to section 355) of stock in a foreign  
Regulations section 1.367(e)-1(b) for  
the computation of recognized gain.  
Distributions of section 367(d)(4)  
Paperwork Reduction Act Notice. We ask for the information on this form to carry out the Internal Revenue laws of the  
United States. You are required to give us the information. We need it to ensure that you are complying with these laws  
and to allow us to figure and collect the right amount of tax.  
You are not required to provide the information requested on a form that is subject to the Paperwork Reduction Act  
unless the form displays a valid OMB control number. Books or records relating to a form or its instructions must be  
retained as long as their contents may become material in the administration of any Internal Revenue law. Generally, tax  
returns and return information are confidential, as required by section 6103.  
The time needed to complete and file this form will vary depending on individual circumstances. The estimated burden  
for individual and business taxpayers filing this form is approved under OMB control numbers 1545-0074 and  
1545-0123. The estimated burden for all other taxpayers who file this form is shown below.  
Recordkeeping. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  
Learning about the law or the form . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  
Preparing the form . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  
Sending the form to the IRS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  
18 hr., 10 min.  
7 hr., 50 min.  
15 hr., 00 min.  
1 hr., 52 min.  
If you have comments concerning the accuracy of these time estimates or suggestions for making this form simpler,  
we would be happy to hear from you. See the instructions for the tax return with which this form is filed.  
Instructions for Form 926 (Rev. 11-2018)  
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