Form 8865 Filing for Foreign Partnerships
Form 8865 is required from US persons who control or have significant interests in foreign partnerships. It's similar in scope to Form 5471 for corporations, requiring detailed partnership financial information, schedule K-1 equivalent disclosures, and analysis of whether any Subpart F or PFIC issues arise through the partnership. The penalty for non-filing starts at $10,000 per form per year.
Get started with your filingWho this is for
- ✓ US citizens or green card holders who control a foreign partnership (50%+ ownership)
- ✓ US persons who own 10%+ of a foreign partnership where a US person acquires or disposes of an interest
- ✓ Those with interests in foreign LLPs, foreign partnerships, or joint ventures classified as partnerships
- ✓ US persons who are general partners in a foreign limited partnership
What this filing may involve
Every situation is different. The forms below commonly apply — your specific filing may vary.
- 1 Form 8865 — Return of US Persons with Respect to Certain Foreign Partnerships
- 2 Schedule K-1 equivalent — partner's share of income, deductions, and credits
- 3 Form 1040 incorporating partnership income flow-through
- 4 Form 1116 — Foreign Tax Credit on partnership income taxed abroad
Documents usually needed
- 📄 Foreign partnership financial statements
- 📄 Partnership agreement and ownership percentages
- 📄 Country of formation and type of partnership entity
- 📄 Records of any US persons with interests in the partnership
- 📄 Prior year Form 8865 (if applicable)
How Nomadic.Tax works
AI-assisted preparation with licensed professional review — every time.
We determine your filing category based on your ownership percentage and control
Required schedules are prepared from the partnership financial statements
Partnership income is correctly incorporated into your Form 1040
A licensed CPA with international partnership experience reviews and files the complete package
When human review matters
- ⓘ Like Form 5471, Form 8865 has multiple categories with different filing requirements based on ownership level
- ⓘ Foreign partnerships can create complex passive activity and self-employment income issues
- ⓘ Transfers of property to or from a foreign partnership may trigger additional reporting
[INSERT: customer testimonial, e.g. "US partner in an international joint venture in Singapore, saved money and stress using Nomadic.Tax"]
- US partner in an international joint venture, Singapore
Relevant plans
Choose the package that best fits your situation, or view all plans.
- ✓ Everything in Premier
- ✓ Foreign Earned Income Exclusion (Form 2555)
- ✓ Foreign Tax Credit (Form 1116)
- ✓ FBAR filing (FinCEN 114) included
- ✓ Everything in Expat
- ✓ Schedules D & E for investments and rentals
- ✓ Foreign asset reporting (Form 8938)
- ✓ FBAR filing (FinCEN 114) included
Frequently asked questions about Form 8865 Filing for Foreign Partnerships
Who needs to file Form 8865?
US persons who: (1) control a foreign partnership (Category 1), (2) own 10%+ and the partnership had a contribution or acquisition event (Category 2), (3) have a 10%+ interest at any time during the year (Category 3 or 4), or (4) are required to file as a Category 5 constructive owner.
How is partnership income taxed in the US?
Partnership income flows through to the US partner's return and is taxed at individual rates. Self-employment income from an active partnership interest may be subject to SE tax. Passive income from a passive partnership interest may be subject to net investment income tax.