How do I generate Form 8804 and allocate to a foreign partner the tax calculated on Form 8804 with Form 8805?
- Make applicable entries on screen 8804 to produce Form 8804, Annual Return for Partnership Withholding Tax.
- On the K1 screen for the foreign partner(s), ensure that the Foreign Partner check box is selected.
The software will allocate the percentage of the tax calculated on Form 8804 to each of the foreign partners on Form 8805. Drake Tax allocates the percentage based on a calculation of ownership of all partner’s listed as foreign partners on the K1 screen(s). Overrides are available on the 8805 / Item M tab of the partner's K1 screen. If an entry is made on line 9, Foreign partner's allocable percentage for 8804 items, the percentage entered there determines the withholding tax allocated and tax credit available to the foreign partner (Form 8805, Foreign Partner's Information Statement of Section 1446 Withholding Tax).
Note that four copies of Form 8805 will show in view for each foreign partner as follows:
- Copy A - IRS- attach to Form 8804
- Copy B - Partner - keep for your records
- Copy C - Partner- attach to your federal tax return
- Copy D - Withholding Agent
Forms 8804 and 8805 must be paper-filed on or before the 15th day of the third month following the close of the partnership's tax year-- March 15 for a calendar year filer. The Forms must be mailed to:
Internal Revenue Service Center
P.O. Box 409101
Ogden, UT 84409