TL;DR: The disclosure a US person files about a foreign partnership they control, own a big slice of, or put money into.

What it is. The partnership counterpart to the 5471: an information return about a foreign partnership, such as a Cayman or Luxembourg fund vehicle taxed as a partnership.

Who has to file. US persons in four categories: those who control the partnership (more than 50%); 10% partners when US 10% partners together control it; US persons who contribute property worth more than $100,000 in a year, or who own 10% or more after contributing; and US persons whose stake crosses 10% up or down.

When it's due. Attached to the filer's income tax return, by its due date including extensions. The base penalty is $10,000 per form, and failing to report a contribution can add a penalty of 10% of the property's value (capped at $100,000 unless the failure was intentional).

Who files Form 8865A US person who controls, holds 10% of, or contributes to a foreign partnership attaches Form 8865 to its return.US partnercontrol / 10% /contributorForm 8865attached to ownreturnIRSinformation only
The trigger is control, a 10% stake, or a big contribution.

Worked example

A US pension plan commits $50m to a Cayman fund taxed as a partnership. Its first capital call is $5m, more than $100,000, so it files Form 8865 for that year's contribution.

Where you'll see it: Investing in or running non-US fund vehicles, especially parallel funds and feeders.

Code: IRC §§ 6038, 6038B, 6046A; Instructions for Form 8865 · Related: Form 5471, Form 8858, Schedule K-1 (and K-3), DRE (disregarded entity)

Full explainer: the four filer categories and their schedules →

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.