What it is. An information return covering a foreign disregarded entity (FDE), such as a foreign LLC or Luxembourg S.à r.l. that has checked the box to be ignored, or a foreign branch (a business run abroad without a separate entity). Because the US treats the FDE's income as its owner's, the form shows what's inside it.
Who has to file. US persons that are the tax owner of an FDE or operate a foreign branch, directly or through other entities, and US persons that must file a 5471 or 8865 for a foreign corporation or partnership that itself owns an FDE or branch. Real estate and credit funds that hold non-US assets through checked-the-box holding companies run into it constantly.
When it's due. Attached to the filer's income tax return (or its 5471/8865), by that return's due date including extensions. Missing it can mean a $10,000 penalty per form, plus a reduction in foreign tax credits.
Worked example
A US real estate fund owns a Dutch B.V. that has elected (on Form 8832) to be disregarded, and the B.V. owns an office building in Amsterdam. The fund attaches a Form 8858 for the B.V. to its 1065 each year.
Where you'll see it: Cross-border holding structures, check-the-box elections, and foreign tax credit work.
Full explainer: Form 8858 and foreign disregarded entities →
Full explainer: check-the-box elections and Form 8832 →
Full explainer: Section 987 currency gain or loss on foreign branches →
See all 53 terms in the glossary
This glossary is general information, simplified for learning. It is not tax, legal or investment advice, and real structures turn on facts and documents not shown here.