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Page 1 of 14 Instructions for Form 8865 15:18 - 5-JAN-2007

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2006 Department of the Treasury
Internal Revenue Service

Instructions for Form 8865
Return of U.S. Persons With Respect to Certain Foreign Partnerships
Section references are to the Internal Contents Page each category of filer. If you qualify under
Revenue Code unless otherwise noted. Schedule P — Acquisitions, more than one category for a particular
Contents Page Dispositions, and Changes of foreign partnership, you must submit all
What’s New . . . . . . . . . . . . . . . . . . . . 1 Interests in a Foreign the items required for each category
Partnership . . . . . . . . . . . . . . ..... 8 under which you qualify.
General Instructions . . . . . . . . . . . . . 1
Purpose of Form . . . . . . . . . . . . . . . 1 Part I — Acquisitions . . . . . . . ..... 8 Example. If you qualify as a Category
Who Must File . . . . . . . . . . . . . . . . 1 Part II — Dispositions . . . . . . . ..... 9 2 and a Category 3 filer, you must submit
Categories of Filers . . . . . . . . . . . . . 1 Part III — Change in all the schedules required of Category 2
Exceptions to Filing . . . . . . . . . . . . . 2 Proportional Interest . . . . . . ..... 9 filers (page 1 of Form 8865, Schedules A,
Relief for Category 1 and 2 Part IV — Supplemental A-2, N, and K-1) plus any additional
Filers When the Foreign Information Required To Be schedules that Category 3 filers are
Partnership Files Form 1065 Reported . . . . . . . . . . . . . . ..... 9 required to submit (Schedules A-1 and
or Form 1065-B . . . . . . . . . . . . . . . 3 Privacy Act and Paperwork O).
When To File . . . . . . . . . . . . . . . . . 3 Reduction Act Notice . . . . . . . . . . . 10 Complete a separate Form 8865 and
Definitions . . . . . . . . . . . . . . . . . . . 3 Codes for Principal Business the applicable schedules for each foreign
Penalties . . . . . . . . . . . . . . . . . . . . 4 Activity and Principal Product partnership.
Corrections to Form 8865 . . . . . . . . 4 or Service . . . . . . . . . . . . . . . . . . 10
Index . . . . . . . . . . . . . . . . . . . . . . . . 14 File the 2006 Form 8865 with your
Specific Instructions . . . . . . . . . . . . 4
income tax return for your tax year
Tax Year . . . . . . . . . . . . . . . . . . . . 4 beginning in 2006.
Identifying Numbers and What’s New
Addresses . . . . . . . . . . . . . . . . . . 4 The specific instructions for Schedules B, Categories of Filers
Schedule A — Constructive D, K, K-1, M-1, and M-2 were deleted
Ownership of Partnership from these instructions. If you are Category 1 filer. A Category 1 filer is a
Interest . . . . . . . . . . . . . . . . . . . . . 6 required to complete these schedules for U.S. person who controlled the foreign
Form 8865, use the instructions for the partnership at any time during the
Schedule A-1 — Certain Partners
corresponding schedules of Form 1065 partnership’s tax year. Control of a
of Foreign Partnership . . . . . . . . . . . 6 partnership is ownership of more than a
Schedule A-2 — Affiliation (or Form 1065-B if the foreign partnership
is an electing large partnership). See the 50% interest in the partnership. See the
Schedule . . . . . . . . . . . . . . . . . . . . 6 definition of 50% interest on page 4.
general instructions for these schedules,
Schedule B — Income on pages 6 and 7, for more information. There may be more than one Category 1
Statement — Trade or filer for a partnership for a particular
Business Income . . . . . . . . . . . . . . 6 If you are completing Then use the partnership tax year.
Schedule D — Capital Gains and Form 8865 instructions for
Losses . . . . . . . . . . . . . . . . . . . . . . 6 Forms 1065/1065-B: Category 2 filer. A Category 2 filer is a
Schedules K and K-1 — Schedule B Form 1065, Page 1/ U.S. person who at any time during the
Parts I and II of Form tax year of the foreign partnership owned
Partners’ Distributive Share
1065-B a 10% or greater interest in the
Items . . . . . . . . . . . . . . . . . . . . . . . 6 partnership while the partnership was
Schedule L — Balance Sheets Schedule D Schedule D
Schedules K and K-1 Schedules K and K-1 controlled by U.S. persons each owning
per Books . . . . . . . . . . . . . . . . . . . 7 at least 10% interests. However, if the
Schedule M-1 Schedule M-1
Schedule M — Balance Sheets Schedule M-2 Schedule M-2 foreign partnership had a Category 1 filer
for Interest Allocation . . . . . . . . . . . 7 at any time during that tax year, no
Schedule M-1 — Reconciliation of person will be considered a Category 2
Income (Loss) per Books With General Instructions filer. See the definition of a 10% interest
Income (Loss) per Return . . . . . . . . 7 on page 4.
Schedule M-2 — Analysis of Purpose of Form
Partners’ Capital Accounts . . . . . . . . 7 Use Form 8865 to report the information Category 3 filer. A Category 3 filer is a
required under section 6038 (reporting U.S. person who contributed property
Schedule N — Transactions
with respect to controlled foreign during that person’s tax year to a foreign
Between Controlled Foreign partnership in exchange for an interest in
Partnership and Partners or partnerships), section 6038B (reporting of
transfers to foreign partnerships), or the partnership (a section 721 transfer), if
Other Related Entities . . . . . . . . . . . 7 that person either:
Schedule O — Transfer of section 6046A (reporting of acquisitions,
dispositions, and changes in foreign 1. Owned directly or constructively at
Property to a Foreign
partnership interests). least a 10% interest in the foreign
Partnership . . . . . . . . . . . . . . . . . . . 8 partnership immediately after the
Part I — Transfers Reportable Who Must File contribution, or
Under Section 6038B . . . . . . . . . . 8 A U.S. person qualifying under one or 2. The value of the property
Part II — Dispositions more of the Categories of Filers (see contributed (when added to the value of
Reportable Under Section below) must complete and file Form 8865. any other property contributed to the
6038B . . . . . . . . . . . . . . . . . . . . . 8 These instructions and the Filing partnership by such person, or any
Part III — Gain Recognition Requirements for Categories of Filers related person, during the 12-month
Under Section 904(f)(3) or chart below explain the information, period ending on the date of transfer)
(f)(5)(F) . . . . . . . . . . . . . . . . . . . . 8 statements, and schedules required for exceeds $100,000.

Cat. No. 26053N
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Category of Filers
Filing Requirements for Categories of Filers
1 2 3 4

Identifying information — (page 1 of Form 8865) ⻫ ⻫ ⻫ ⻫

Schedule A — Constructive Ownership of Partnership Interest ⻫ ⻫ ⻫ ⻫

Schedule A-1 — Certain Partners of Foreign Partnership ⻫ ⻫

Schedule A-2 — Affiliation Schedule ⻫ ⻫ ⻫ ⻫

Schedule B — Income Statement — Trade or Business Income ⻫

Schedule D — Capital Gains and Losses ⻫

Schedule K — Partners’ Distributive Share Items ⻫

Schedule L — Balance Sheets per Books ⻫

Schedule M — Balance Sheets for Interest Allocation ⻫

Schedule M-1 — Reconciliation of Income (Loss) per Books With Income (Loss) per Return ⻫

Schedule M-2 — Analysis of Partners’ Capital Accounts ⻫

Schedule N — Transactions Between Controlled Foreign Partnership and Partners or Other ⻫ ⻫
Related Entities

Schedule K-1 — Partner’s Share of Income, Deductions, Credits, etc. (direct partners only) ⻫ ⻫

Schedule O — Transfer of Property to a Foreign Partnership ⻫

Schedule P — Acquisitions, Dispositions, and Changes of Interests in a Foreign Partnership ⻫

If a domestic partnership contributes Dispositions. A U.S. person that of Form 8865 if another U.S. person has
property to a foreign partnership, the disposes of a foreign partnership interest a controlling interest in capital or profits;
domestic partnership’s partners are has a reportable event if: only the latter may file the return. The
considered to have transferred a • The person owned a 10% or greater U.S. person that files the Form 8865 must
proportionate share of the contributed direct interest in the partnership before complete Item E on page 1.
property to the foreign partnership. the disposition and as a result of the The single Form 8865 to be filed must
However, if the domestic partnership files disposition the person owns less than a contain all of the information that would
Form 8865 and properly reports all the 10% direct interest (for example, from be required if each Category 1 filer filed a
required information with respect to the 10% to 8%). For purposes of this rule, a separate Form 8865. Specifically, a
contribution, its partners will not be disposition includes a decrease in a separate Schedule N and Schedule K-1
required to report the transfer. person’s direct proportional interest; or must be attached to the Form 8865 for
• Compared to the person’s direct each Category 1 filer. Also, Items B, C,
Category 3 also includes a U.S. interest when the person last had a and D on page 1 and Schedule A on page
person that previously transferred reportable event, after the disposition the 2 of Form 8865 must be completed for
appreciated property to the partnership person’s direct interest has decreased by each Category 1 filer not filing the form.
and was required to report that transfer at least a 10% interest (for example, from Attach a separate statement listing this
under section 6038B, if the foreign 21% to 11%). information to the single Form 8865.
partnership disposed of such property Changes in proportional interests.
while the U.S. person remained a direct A Category 1 filer not filing Form 8865
A U.S. person has a reportable event if must attach a statement entitled
or indirect partner in the partnership. compared to the person’s direct “Controlled Foreign Partnership
Category 4 filer. A Category 4 filer is a proportional interest the last time the Reporting” to that person’s income tax
U.S. person that had a reportable event person had a reportable event, the return.
under section 6046A during that person’s person’s direct proportional interest has
increased or decreased by at least the The statement must include the
tax year. There are three categories of
equivalent of a 10% interest in the following information:
reportable events under section 6046A:
acquisitions, dispositions, and changes in partnership. • A statement that the person qualified
as a Category 1 filer, but is not submitting
proportional interests. Special rule for a partnership
Form 8865 under the multiple Category 1
interest owned on December 31, 1999.
Acquisitions. A U.S. person that filers exception.
If the U.S. person owned at least a 10%
acquires a foreign partnership interest direct interest in the foreign partnership • The name, address, and identifying
has a reportable event if: number (if any) of the foreign partnership
on December 31, 1999, then comparisons
of which the person qualified as a
• The person did not own a 10% or should be made to the person’s direct
Category 1 filer.
greater direct interest in the partnership interest on December 31, 1999. Once the
and as a result of the acquisition, the person has a reportable event after • A statement that the filing requirement
has been or will be satisfied.
person owns a 10% or greater direct December 31, 1999, future comparisons
interest in the partnership (for example, should be made by reference to the last • The name and address of the person
filing Form 8865 for this partnership.
from 9% to 10%). For purposes of this reportable event.
rule, an acquisition includes an increase
• The Internal Revenue Service Center
in a person’s direct proportional interest Exceptions to Filing where the Form 8865 must be filed.
(see definition of change in proportional Multiple Category 1 filers. If during the A U.S. person who qualifies for
interest on page 4); or
• Compared to the person’s direct
tax year of the partnership more than one
U.S. person qualifies as a Category 1
! this exception to the Category 1
CAUTION filing requirement would still have

interest when the person last had a filer, only one of these Category 1 to file a separate Form 8865 if that person
reportable event, after the acquisition the partners is required to file Form 8865. A is also subject to the filing requirements of
person’s direct interest has increased by U.S. person with a controlling interest in Category 3 or 4. This separate Form 8865
at least a 10% interest (for example, from the losses or deductions of the would include all the information required
11% to 21%). partnership is not permitted to be the filer for a Category 3 or 4 filer in addition to
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the Controlled Foreign Partnership report it as a Category 4 filer. However, • Schedule A,
Reporting statement. the acquisition will count as a reportable • Schedule A-1,
Constructive owners. See the definition event to determine if a later change in • Schedule A-2,
of constructive ownership on page 4. A your partnership interest qualifies as a • Schedule M, and
Category 1 or 2 filer that does not own a reportable event under Category 4. • Schedule N.
direct interest in the partnership and that Example. Partner A does not own an Example. Partner A is a Category 2
is required to file this form solely because interest in FPS, a foreign partnership. filer with respect to FPS, a foreign
of constructive ownership from a U.S. Partner A transfers property to FPS in partnership. If FPS completes and files a
person(s) is not required to file Form 8865 exchange for a 15% direct interest. Form 1065 for its 2006 tax year, Partner
if: Partner A qualifies as a Category 3 filer A may file with Form 8865 the Schedule
1. Form 8865 is filed by the U.S. because he transferred property to a K-1 (Form 1065) that it receives from the
person(s) through which the indirect foreign partnership and owned at least a partnership instead of Schedule K-1
partner constructively owns an interest in 10% interest in FPS immediately after the (Form 8865). Partner A must complete
the foreign partnership, contribution. Partner A is also a Category the following items and schedules on
2. The U.S. person through which the 4 filer because he did not own a 10% or Form 8865:
indirect partner constructively owns an greater direct interest in FPS and as a • The first page,
interest in the foreign partnership is also a result of the acquisition now owns a 10% • Schedule A,
constructive owner and meets all the or greater direct interest in FPS. If Partner • Schedule A-2, and
requirements of this constructive A properly reports the contribution on • Schedule N.
ownership filing exception, or Form 8865 as a Category 3 filer, Partner
A is not required to report his acquisition
When To File
3. Form 8865 is filed for the foreign
of the 15% interest in FPS as a Category Attach Form 8865 to your income tax
partnership by another Category 1 filer
4 filer. return (or, if applicable, partnership or
under the multiple Category 1 filers
exempt organization return) and file both
exception. Relief for Category 1 and 2 by the due date (including extensions) for
To qualify for the constructive Filers When the Foreign that return. If you do not have to file an
ownership filing exception, the indirect Partnership Files Form 1065 or income tax return, you must file Form
partner must file with its income tax return Form 1065-B 8865 separately with the IRS at the time
a statement entitled “Controlled Foreign and place you would be required to file an
If a foreign partnership files Form 1065, income tax return (or, if applicable, a
Partnership Reporting.” U.S. Return of Partnership Income, or partnership or exempt organization
This statement must contain the Form 1065-B, U.S. Return of Income for return). See below for penalties that may
following information: Electing Large Partnerships, for its tax apply if you do not file Form 8865 on time.
1. A statement that the indirect year, Category 1 and 2 filers may use a
partner was required to file Form 8865, copy of the completed Form 1065 or Definitions
but is not doing so under the constructive 1065-B schedules in place of the
Partnership. A partnership is the
owners exception; equivalent schedules of Form 8865.
relationship between two or more persons
2. The names and addresses of the If you file Form 8865 with an who join to carry on a trade or business,
U.S. persons whose interests the indirect electronically filed income tax return, see with each person contributing money,
partner constructively owns; and the electronic filing publications identified property, labor, or skill and each
3. The name and address of the in the instructions for your income tax expecting to share in the profits and
foreign partnership for which the indirect return for more information. losses of the business whether or not a
partner would have had to have filed The following Form 1065/1065-B formal partnership agreement is made.
Form 8865, but for this exception. schedules are equivalent to the following The term “partnership” includes a
Form 8865 schedules: limited partnership, syndicate, group,
Members of an affiliated group of
corporations filing a consolidated Forms 1065/ Form 8865 pool, joint venture, or other
return. If one or more members of an unincorporated organization, through or
1065-B
affiliated group of corporations filing a by which any business, financial
consolidated return qualify as Category 1 operation, or venture is carried on, that is
Page 1 (Parts I Schedule B not, within the meaning of the regulations
or 2 filers for a particular foreign and II of Form
partnership, the common parent under section 7701, a corporation, trust,
1065-B) estate, or sole proprietorship.
corporation may file one Form 8865 on Schedule D Schedule D
behalf of all of the members of the group A joint undertaking merely to share
Schedule K Schedule K expenses is not a partnership. Mere
required to report. Except for group
members who also qualify under the Schedule L Schedule L co-ownership of property that is
constructive owners exception, the Form Schedule M-1 Schedule M-1 maintained and leased or rented is not a
8865 must contain all the information that Schedule M-2 Schedule M-2 partnership. However, if the co-owners
would have been required to be submitted Schedule K-1 Schedule K-1 provide services to the tenants, a
if each group member filed its own Form partnership exists.
Example. Partner A is a Category 1
8865. Foreign partnership. A foreign
filer with respect to FPS, a foreign
Exception for certain trusts. Trusts partnership during the 2006 tax year. FPS partnership is a partnership that is not
relating to state and local government completes and files a Form 1065 for its created or organized in the United States
employee retirement plans are not 2006 tax year. Instead of completing or under the law of the United States or of
required to file Form 8865. Schedules B, D, K, L, M-1, M-2, and K-1 any state.
Exception for certain Category 4 filers. of Form 8865, Partner A may attach to its 50% interest. A 50% interest in a
If you qualify as a Category 3 and 4 filer Form 8865 page 1 of Form 1065 and partnership is an interest equal to:
because you contributed property to a Form 1065 Schedules D, K, L, M-1, M-2, • 50% of the capital,
foreign partnership in exchange for a 10% and K-1 (including the Schedules K-1 for • 50% of the profits, or
or greater interest in that partnership, you Partner A and all other U.S. persons • 50% of the deductions or losses.
are not required to report this transaction owning 10% or greater direct interests in For purposes of determining a 50%
under both Category 3 and 4 filing FPS). Partner A must complete the interest, the constructive ownership rules
requirements. If you properly report the following items and schedules on Form described below apply.
contribution of property under the 8865: 10% interest. A 10% interest in a
Category 3 rules, you are not required to • The first page, partnership is an interest equal to:

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• 10% of the capital, continues after the 90-day period has Corrections to Form 8865
• 10% of the profits, or expired. The additional penalty is limited If you file a Form 8865 you later
• 10% of the deductions or losses. to a maximum of $50,000 for each failure. determine is incomplete or incorrect, file a
For purposes of determining a 10% • Any person who fails to furnish all of corrected Form 8865 with an amended
interest, the constructive ownership rules the information required within the time tax return following the instructions for the
described below apply. prescribed, will be subject to a reduction return with which you originally filed Form
Constructive ownership. For purposes of 10% of the foreign taxes available for 8865. Write “corrected” at the top of the
of determining an interest in a credit under sections 901, 902, and 960. form and attach a statement identifying
partnership, the constructive ownership If the failure continues 90 days or more and explaining the changes.
rules of section 267(c) (excluding section after the date the IRS mails notice of the
267(c)(3)) apply, taking into account that failure, an additional 5% reduction is
such rules refer to corporations and not to made for each 3-month period, or fraction
partnerships. Generally, an interest thereof, during which the failure continues Specific Instructions
owned directly or indirectly by or for a after the 90-day period has expired. See Important: All information must be in
corporation, partnership, estate, or trust section 6038(c)(2) for limits on the English. All amounts must be stated in
shall be considered as being owned amount of this penalty. U.S. dollars.
proportionately by its owners, partners or • Criminal penalties under sections 7203,
7206, and 7207 may apply for failure to If the information required in a given
beneficiaries.
file or for filing false or fraudulent section exceeds the space provided
Also, an individual is considered to within that section, attach separate sheets
information.
own an interest owned directly or to provide the remaining information,
indirectly by or for his or her family. The Additionally, any person that files using the same size and format as the
family of an individual includes only that under the constructive owners exception printed forms.
individual’s spouse, brothers, sisters, may be subject to these penalties if all the
ancestors, and lineal descendants. An requirements of the exception are not Fill in all applicable lines and
interest will be attributed from a met. Any person required to file Form schedules. All categories of filers must
nonresident alien individual under the 8865 who does not file under the multiple complete all items on page 1, with three
family attribution rules only if the person Category 1 filers exception, may be exceptions. Complete Item E only if, in
to whom the interest is attributed owns a subject to the above penalties if the other addition to filing the form on your own
direct or indirect interest in the foreign person does not file a correctly completed behalf, you are reporting information
partnership under section 267(c)(1) or (5). form and schedules. See Exceptions to about other Category 1 filers under the
U.S. person. A U.S. person is a citizen Filing on page 2. multiple Category 1 filing exception, or
or resident of the United States, a Failure to file information required of you are reporting information about
domestic partnership, a domestic Category 3 filers. Any person that fails members of your affiliated group of
corporation, and any estate or trust that is to properly report a contribution to a corporations under the consolidated
not foreign. foreign partnership that is required to be return exception. Only Category 1 and 2
reported under section 6038B and the filers are required to complete Item G6.
Control of a corporation. Control of a
regulations under that section is subject See Exceptions to Filing on page 2.
corporation is ownership of stock
to a penalty equal to 10% of the fair Answer Items G8 and G9 only if you are a
possessing more than 50% of the total
market value (FMV) of the property at the Category 1 filer.
combined voting power, or more than
50% of the total value of shares of all time of the contribution. This penalty is
classes of stock of the corporation. For subject to a $100,000 limit, unless the Tax Year
rules concerning indirect ownership and failure is due to intentional disregard. In Enter in the space below the title of Form
attribution, see Regulations section addition, the transferor must recognize 8865 the tax year of the foreign
1.6038-2(c). gain on the contribution as if the partnership that ended with or within the
contributed property had been sold for its tax year of the person filing this form.
Change in a proportional interest. A FMV. Category 1 or 2 filers must report
partner’s proportional interest in a foreign
Failure to file information required of information for the tax year of the foreign
partnership can change as a result of
Category 4 filers. Any person who fails partnership that ends with or within their
changes in other partners’ interests, for
to properly report all the information tax years. A Category 3 or 4 filer must
example, when another partner withdraws
requested by section 6046A is subject to report on Schedules O or P, respectively,
from the partnership. A partner’s
a $10,000 penalty. If the failure continues transactions that occurred during that
proportional interest can also change, for
for more than 90 days after the IRS mails filer’s tax year (rather than during the
example, by operation of the partnership
notice of the failure, an additional $10,000 partnership’s tax year).
agreement (for example, if the partnership
agreement provides that a partner’s penalty will apply for each 30-day period
(or fraction thereof) during which the Identifying Numbers and
interest in profits will change on a set date
or when the partnership has earned a failure continues after the 90-day period Addresses
specified amount of profits, then the has expired. The additional penalty shall Enter the identifying number of the person
partner’s proportional interest changes not exceed $50,000. filing this return. Use an employer
when the set date or specified amount of Treaty-based return positions. File identification number (EIN) to identify
profits is reached). Form 8833, Treaty-Based Return Position partnerships, corporations, and estates or
Disclosure Under Section 6114 or trusts. For individuals, use a social
Penalties 7701(b), to report a return position that a security number (SSN) or individual
Failure to timely submit all information treaty of the United States (such as an taxpayer identification number (ITIN).
required of Category 1 and 2 filers. income tax treaty, an estate and gift tax
Include the suite, room, or other unit
• A $10,000 penalty is imposed for each treaty, or a friendship, commerce, and
number after the street address. If the
tax year of each foreign partnership for navigation treaty):
failure to furnish the required information • Overrides or modifies any provision of Post Office does not deliver mail to the
the Internal Revenue Code and street address and the U.S. person has a
within the time prescribed. If the
information is not filed within 90 days after • Causes (or potentially causes) a P.O. box, show the box number instead.
the IRS has mailed a notice of the failure reduction of any tax incurred at any time. Foreign address. Enter the information
to the U.S. person, an additional $10,000 Failure to make such a report may in the following order: city, province or
penalty (per foreign partnership) is result in a $1,000 penalty ($10,000 in the state, and country. Follow the country’s
charged for each 30-day period, or case of a C corporation). See section practice for entering the postal code, if
fraction thereof, during which the failure 6712. any. Do not abbreviate the country name.
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Item A—Category of Filer Item F6—Principal Business (for the calendar year ending with or
Check the box for each category that Activity Code within the foreign partnership’s tax year).
describes the person filing the form. If If the foreign partnership filed Form Item G6
more than one category applies, check all 1065 or 1065-B. Enter the business code Note. Only Category 1 and 2 filers are
boxes that apply. See Categories of Filers shown in Item C of the Form 1065 or required to complete Item G6.
beginning on page 1. 1065-B filed by the partnership.
Enter the number of Forms 8858,
Item C If the foreign partnership did not file Information Return of U.S. Persons With
Form 1065 or 1065-B. Enter the Respect To Foreign Disregarded Entities,
Enter the filer’s share of nonrecourse applicable business code from the list
liabilities, partnership-level qualified attached to Form 8865. A disregarded
beginning on page 10. If the information entity is an entity that is disregarded as
nonrecourse financing, and other necessary to apply the total receipts test
liabilities. Nonrecourse liabilities are those an entity separate from its owner under
is not available, pick a principal business Regulations section 301.7701-3. The
liabilities of the partnership for which no activity code using the information you
partner bears the economic risk of loss. partnership is the tax owner of the foreign
have about the partnership. disregarded entity if it owns the assets
The extent to which a partner bears the
and liabilities of the foreign disregarded
economic risk is determined under the Item F8a—Functional Currency entity for purposes of U.S. income tax
rules of Regulations section 1.752-2. Enter the foreign partnership’s functional law.
currency. See sections 985 through 989
‘‘Qualified nonrecourse financing’’ and the regulations thereunder. If the If the foreign partnership is the tax
generally includes financing: partnership had more than one qualified owner of a foreign disregarded entity and
• For which no one is personally liable for business unit (QBU), attach a statement you are a Category 1 or 2 filer of Form
repayment, identifying each QBU, its country of 8865, complete and attach Form 8858 to
• That is borrowed for use in an activity operation, and its functional currency. A Form 8865. For more information, see the
of holding real property, and QBU is any separate and clearly identified instructions for Form 8858.
• That is borrowed from a qualified unit of a trade or business of the Item G8—Separate Units
person (defined in section 49(a)(1)(D)(iv)) partnership which maintains separate
books and records. Note. Only Category 1 filers are required
or is lent or guaranteed by a federal,
to answer Item G8.
state, or local government. Hyperinflationary exception. A
partnership that has a hyperinflationary Indicate whether the partnership
See section 465(b)(6) for more currency as its functional currency is owned any interest in a separate unit. In
information on qualified nonrecourse subject to special rules set forth in general, a separate unit is:
financing. Regulations section 1.985-3. Under these 1. A foreign branch that is owned
rules, a partnership must use the U.S. either directly by a domestic corporation
Item D—Identification of dollar as its functional currency. or indirectly by a domestic corporation
Common Parent through ownership of a partnership or
If the person filing the form is a member Item F8b—Exchange Rate trust interest,
of a consolidated group, but not the When translating functional currency to 2. An interest in a partnership, or
parent, list the name, address, and EIN of U.S. dollars, you must use the method 3. An interest in a trust.
the filer’s common parent. specified in sections 985 through 989 and See Regulations section 1.1503-2(c)(3)
the regulations thereunder. But, and (4) for more information on separate
Item E regardless of the specific method
units. Attach a statement identifying each
required, all exchange rates must be
Information about certain partners. If separate unit and its country of operation.
reported using a “divide-by convention”
you are reporting information about other rounded to at least 4 places. That is, the Item G9
persons under the multiple Category 1 exchange rate must be reported in terms Note. Only Category 1 filers are required
filers exception, or are reporting of the amount by which the functional to answer Item G9.
information about members of your currency amount must be divided in order
affiliated group of corporations under the to reflect an equivalent amount of U.S. Answer “Yes” to Item G9 if the
consolidated return exception (see dollars. As such, the exchange rate must partnership meets both of the
Exceptions to Filing on page 2), identify be reported as the units of foreign requirements shown on the form. Total
each such person in Item E. List their currency that equal one U.S. dollar, receipts is defined as the sum of gross
names, addresses, and identifying rounded to at least 4 places. Do not receipts or sales (Schedule B, line 1a); all
numbers. Also, indicate whether each report the exchange rate as the number other income reported on Schedule B
person is a Category 1 filer or Category 2 of U.S. dollars that equal one unit of (lines 4 through 7); income reported on
filer, and whether such person foreign currency. Schedule K, lines 3a, 5, 6a, and 7;
constructively owned an interest in the income or net gain reported on Schedule
Note. You must round the result to more
foreign partnership during the tax year of K, lines 8, 9a, 10 and 11; and income or
than 4 places if failure to do so would
the partnership listed at the top of page 1 net gain reported on Form 8825, lines 2,
materially distort the exchange rate or the
of Form 8865. See Constructive 19, and 20a.
equivalent amount of U.S. dollars.
ownership on page 4.
Signature
Item G2
Item F1 If the foreign partnership was required to Filer. Do not sign Form 8865 if you are
For the foreign partnership’s address, file Form 1065 or Form 1065-B for the filing it as an attachment to your income
enter the city, province or state, and the partnership’s tax year listed at the top of tax return. Sign the return only if you are
foreign country in that order. Follow the page 1 (Form 8865), check the applicable filing Form 8865 separately because you
foreign country’s practice in placing the box and enter the IRS Service Center are not required to file a U.S. income tax
postal code in the address. Do not where the form was or will be filed. Also, return. See When To File on page 3 for
abbreviate the country name. If the check the applicable box(es) if the foreign more information.
partnership receives its mail in care of a partnership was required to file Form Paid preparer. Do not sign Form 8865 or
third party (such as an accountant or 8804, Annual Return for Partnership complete the paid preparer section at the
attorney), enter “C/O” followed by the Withholding Tax (Section 1446), or Form bottom of the form if Form 8865 is filed as
third-party’s name and street address or 1042, Annual Withholding Tax Return for an attachment to an income tax return.
P.O. box. U.S. Source Income of Foreign Persons Sign Form 8865 and complete the paid
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preparer section only if Form 8865 is filed partnership tax year listed at the top of can be ordered by calling
separately. page 1, Form 8865. 1-800-829-3676.
Category 1 filers. Only Category 1 filers
must complete the ordinary income or
Schedule A—Constructive loss column. In that column, report the Schedules K and K-1—
foreign partnership’s share of ordinary Partners’ Distributive
Ownership of Partnership income (even if not received) or loss from
Interest partnerships in which the foreign Share Items
All filers must complete Schedule A. partnership owns a direct interest. The Important: You do not need to complete
Check box a if the person filing the return total amount of ordinary income or loss Schedules K or K-1 if you have attached
owns a direct interest in the foreign from each partnership must also be to Form 8865 a copy of the Schedules K
partnership. Check box b if the person included on line 4 of Schedule B. or K-1 from Form 1065 or Form 1065-B
filing the return constructively owns an filed by the foreign partnership.
interest in the foreign partnership. See
Constructive ownership on page 4. Schedule B—Income Schedule K
Schedule K is a summary schedule of all
Category 1 and 2 filers. Category 1 and Statement—Trade or of the partners’ shares of the partnership
2 filers must list the persons (U.S. and
foreign) whose interests in the foreign Business Income income, credits, deductions, etc. Only
partnership they constructively owned Important: You do not need to complete Category 1 filers must complete Schedule
during the partnership tax year. Schedule B if you have attached a copy K.
of page 1 from Form 1065, or Parts I and Schedule K-1
Category 3 and 4 filers. Category 3 and II of Form 1065-B, filed by the foreign
4 filers must list the persons (U.S. and Schedule K-1 is used to report a specific
partnership.
foreign) whose interests in the foreign partner’s share of the partnership income,
partnership they constructively owned All Category 1 filers must complete deductions, credits, etc.
during the filer’s tax year that the Schedule B.
All Category 1 and 2 filers must
reportable transfer or “reportable event”
occurred. Specific Instructions for complete Schedule K-1 for any direct
Schedule B interest they hold in the partnership. A
Category 1 or 2 filer that does not own a
For specific instructions for Schedule B,
direct interest is not required to complete
Schedule A-1—Certain see the Instructions for Form 1065. Use
Schedule K-1.
the specific instructions for Page 1 of
Partners of Foreign Form 1065, Income and Deductions. If Category 1 filers must also complete
Partnership the foreign partnership files Form 1065-B, Schedule K-1 for each U.S. person that
use the specific instructions for Parts I directly owns a 10% or greater direct
All Category 1 and certain Category 3 and II of Form 1065-B in the Instructions interest in the partnership.
filers must complete Schedule A-1. Any for Form 1065-B.
person already listed on Schedule A is Provide the partner’s beginning and
not required to be listed again on You can view or download the year-end percentage interest in
Schedule A-1. TIP instructions for Form 1065 or partnership profits, losses, capital, or
Form 1065-B at www.irs.gov/ deductions. These percentages should
Category 1 filers. Category 1 filers must include any interest constructively owned
list all U.S. persons who owned at least a formspubs. Also, these instructions can
be ordered by calling 1-800-829-3676. by the filer.
10% direct interest in the foreign
partnership during the partnership’s tax Complete boxes 1 through 20 for any
year listed at the top of page 1 of Form direct interest that the partner owns in the
8865. Schedule D—Capital partnership.
Category 3 filers. Category 3 filers must Gains and Losses Example. Partner A owns a 45%
list: direct interest in foreign partnership
Important: You do not need to complete
• each U.S. person that owned a 10% or Schedule D if you have attached to Form
(FPS). Partner A also owns 100% of the
greater direct interest in the foreign stock of a domestic corporation (DC),
8865 a copy of the Schedule D from Form which owns a 10% direct interest in FPS.
partnership during the Category 3 filer’s 1065 or Form 1065-B filed by the foreign
tax year, and Therefore, Partner A is considered to own
partnership.
• any other person related to the a 55% interest in FPS and is thus a
Category 3 filer that was a direct partner All Category 1 filers must complete Category 1 filer. When Partner A
in the foreign partnership during that tax Schedule D to report sales or exchanges completes Schedule K-1 for itself, Partner
year. of capital assets, capital gain A must report the distributive share of
See Regulations section 1.6038B-2(i)(4) distributions, and nonbusiness bad debts. items allocated to Partner A’s direct
for the definition of a related person. interest of 45% but not any items
Specific Instructions for allocated to DC’s 10% interest. When
Exception. Category 3 filers who only Schedule D Partner A completes Schedule K-1 for DC
transferred cash and did not own a 10% For the specific instructions for Schedule (which Partner A must do because DC
or greater interest in the transferee D, see Schedule D (Form 1065), Capital owns a direct 10% interest), Partner A
partnership after the transfer are not Gains and Losses. Schedule D and its must report on DC’s Schedule K-1 only
required to complete Schedule A-1. instructions are a separate product for items allocated to DC’s direct 10%
Form 1065. If the foreign partnership files interest.
Form 1065-B, use the instructions for Although the partnership is not subject
Schedule A-2—Affiliation Schedule D in the Instructions for Form to income tax, the partners are liable for
Schedule 1065-B. tax on their shares of the partnership
All filers must complete Schedule A-2. You can view or download the income, whether or not distributed, and
List on Schedule A-2 all partnerships TIP instructions for Schedule D (Form must include their share of such items on
(foreign or domestic) in which the foreign 1065) (the instructions are their tax returns.
partnership owned a direct interest, or a provided with the schedule) or the Allocations of income, gains, losses,
10% indirect interest (under the rules of Instructions for Form 1065-B at www.irs. deductions, or credits among the partners
section 267(c)(1) and (5)) during the gov/formspubs. Also, these instructions generally should be made according to
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the partnership agreement. See section 8865 a copy of the Schedule L from Form
704 and the regulations thereunder. 1065 or Form 1065-B filed by the foreign Schedule M-1—
partnership.
General Reporting Instructions for Reconciliation of Income
Schedule K-1
On each Schedule K-1, enter the
The balance sheets should agree with (Loss) per Books With
the partnership’s books and records.
information about the partnership and the
Attach a statement explaining any Income (Loss) per Return
partner in Parts I and II of the schedule Important: You do not need to complete
differences.
(Items A through F). For items E and F in Schedule M-1 if you have attached to
Part II of Schedule K-1, see the Form 8865 a copy of the Schedule M-1
instructions for the corresponding items L Only Category 1 filers are required to from Form 1065 or Form 1065-B filed by
and N of Schedule K-1(Form 1065) in the complete Schedule L. the foreign partnership.
instructions for Form 1065 under the
heading Specific Instructions (Schedule If you answered ‘‘Yes’’ to Item G9 on Form 8865 filers are not required to
K-1 Only). In Part III, enter the partner’s page 1 of Form 8865, you do not have to complete Schedule M-3, Net Income
distributive share of each item of income, complete Schedule L. (Loss) Reconciliation for Certain
deduction, and credit and any other Partnerships.
information the partner needs to prepare Schedule L requires balance sheets Only Category 1 filers are required to
the partner’s tax return. prepared and translated into U.S. dollars complete Schedule M-1. If you answered
Codes. In box 11 and boxes 13 through in accordance with U.S. generally ‘‘Yes’’ to Item G9 on page 1 of Form
20, identify each item by entering a code accepted accounting principles (GAAP). 8865, you do not have to complete
in the column to the left of the dollar Schedule M-1.
amount entry space. These codes are Exception. If the partnership or any
identified on the back of Schedule K-1. Specific Instructions for
qualified business unit of the partnership Schedule M-1
Attached statements. Enter an asterisk uses the dollar approximate separate
(*) after the code, if any, in the column to transactions method (DASTM), Schedule For the specific instructions for Schedule
the left of the dollar amount entry space L should reflect the tax balance sheets M-1, see the Instructions for Form 1065. If
for each item for which you have attached prepared and translated into U.S. dollars the foreign partnership files Form 1065-B,
a statement providing additional according to Regulations section use the specific instructions for Schedule
information. For those informational items 1.985-3(d). M-1 of Form 1065-B in the Instructions for
that cannot be reported as a single dollar Form 1065-B.
amount, enter the code and asterisk in
the left column and write “STMT” in the
dollar amount entry space to indicate the Schedule M—Balance Schedule M-2—Analysis
information is provided on an attached of Partners’ Capital
statement. Sheets for Interest
More than one attached statement can Allocation Accounts
be placed on the same sheet of paper All Category 1 filers must complete Important: You do not need to complete
and should be identified in alphanumeric Schedule M. Schedule M should reflect Schedule M-2 if you have attached to
order by box number followed by the the book values of the partnership’s Form 8865 a copy of the Schedule M-2
letter code (if any). For example: “Box 20, assets, as described in Temporary from Form 1065 or Form 1065-B filed by
Code T — Information Needed to Figure Regulations sections 1.861-9T(g)(2) and the foreign partnership.
Depletion — Oil and Gas” (followed by the 1.861-12T. Assets should be Only Category 1 filers are required to
information the partner needs). characterized as U.S. assets or foreign complete Schedule M-2. If you answered
Too few entry spaces on Schedule assets in one or more separate limitation ‘‘Yes’’ to Item G9 on page 1 of Form
K-1? If there are more coded items than categories as provided in Temporary 8865, you do not have to complete
the number of spaces in box 11 or boxes Regulations sections 1.861-9T(g)(3) and Schedule M-2.
13 through 20, do not enter a code or 1.861-12T. The balance sheets should be
dollar amount in the last entry space of prepared in U.S. dollars under Temporary Specific Instructions for
the box. In the last entry space, enter an Regulations section 1.861-9T(g)(2)(ii). Schedule M-2
asterisk in the left column and enter For the specific instructions for Schedule
“STMT” in the entry space to the right. Exception. If the partnership or any M-2, see the Instructions for Form 1065. If
Report the additional items on an qualified business unit of the partnership the foreign partnership files Form 1065-B,
attached statement and provide the box uses DASTM, Schedule M should reflect use the specific instructions for Schedule
number, the code, description, and dollar the tax balance sheet prepared in U.S. M-2 of Form 1065-B in the Instructions for
amount or information for each additional dollars under Regulations section Form 1065-B.
item. For example: “Box 15, Code H — 1.985-3(d). See Temporary Regulations
Work Opportunity Credit — $1,000.” section 1.861-9T(g)(2)(ii)(A)(2) for more
Specific Instructions for information on DASTM. Schedule N—Transactions
Schedules K and K-1 Between Controlled
Line 2. Enter the partnership’s foreign
For the specific instructions for Schedules
K and K-1, see the Instructions for Form
assets according to the following income Foreign Partnership and
limitation categories:
1065. If the foreign partnership files Form
• Passive income category. Partners or Other Related
1065-B, use the specific instructions for
Schedules K and K-1 of Form 1065-B in • Listed categories (attach a statement Entities
the Instructions for Form 1065-B. classifying foreign assets by the All Category 1 filers must complete
categories listed in the instructions for Schedule N and report all transactions of
Form 1065, line 16e). the foreign partnership during the tax year
Schedule L—Balance • General limitation income category. of the partnership listed on the top of
page 1 of Form 8865. A Category 1 filer
Sheets per Books See the instructions for line 16 of filing a Form 8865 for other Category 1
Important: You do not need to complete Schedule K and section 904(d) for more filers under the multiple Category 1 filers
Schedule L if you have attached to Form information. exception must complete a Schedule N
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for itself and a separate Schedule N for dates, enter the date the transfer was property received by the partnership in
each Category 1 filer not filing Form 8865. completed. exchange for that property.
Category 2 filers are required to Column (b). Enter the number of items Column (b). Enter the date that you
complete columns (a), (b), and (c) of of property transferred. transferred this property to the
Schedule N. Category 2 filers do not have Column (c). Enter the FMV of the partnership. If you are reporting the
to complete column (d). property contributed (measured as of the disposition of substituted basis property
date of the transfer). received by the partnership in a
Column (a). Use column (a) to report nonrecognition transaction in exchange
transactions between the foreign Column (d). Enter your adjusted basis in
for property previously contributed by you,
partnership and the person filing the Form the property contributed on the date of the
enter “See Attached.” Attach a statement
8865. transfer. See sections 1011 through 1016
showing both the date you transferred the
Column (d). Use column (d) to report for more information on the determination
appreciated property to the partnership
transactions between the foreign of adjusted basis.
and the date the partnership exchanged
partnership and any U.S. person with a Column (e). If you contributed the property for substituted basis property
10% or more direct interest in the foreign appreciated property, enter the method in a nonrecognition transaction. See
partnership. If such person also qualifies (traditional, traditional with curative Regulations section 1.6038B-2.
under column (b), do not report allocations, or remedial) used by the Column (c). Enter the date that the
transactions between the foreign partnership to make section 704(c) partnership disposed of the property.
partnership and that person under column allocations with respect to each item of
property. See Regulations section Column (d). Briefly describe how the
(d). Report the transactions only under
1.704-3(b), (c), and (d) for more partnership disposed of the property (for
column (b).
information on these allocation methods. example, by sale or exchange).
Lines 6 and 16. Enter distributions Column (e). Enter the amount of gain, if
received from other partnerships and Column (f). Enter the amount of gain, if
any, recognized on the transfer. See any, recognized by the partnership on the
distributions from the foreign partnership disposition of property.
for which this form is being completed. sections 721(b) and 904(f)(3).
Column (g). Enter your percentage Column (f). Enter the amount of
Lines 20 and 21. Enter the largest depreciation recapture, if any, recognized
outstanding balances during the year of interest in the partnership immediately
after the transfer. To the extent your by the partnership on the disposition of
gross amounts borrowed from, and gross property. See Regulations section
amounts lent to, the related parties percentage interest in the partnership
differs among capital, profits, losses, or 1.1245-1(e) and 1.1250-1(f).
described in columns (a) through (d). Do Column (g). Enter the amount of gain
not enter aggregate cash flows, year-end deductions, enter “See Below” and state
the different percentages. from column (e) allocated to you.
loan balances, average balances, or net
balances. Do not include open account Supplemental information required to Column (h). Enter the amount of
balances resulting from sales and be reported. Enter any information from depreciation recapture from column (f)
purchases reported under other items Part I that is required to be reported in allocated to you. See Regulations
listed on Schedule N that arise and are greater detail. Identify the applicable sections 1.1245-1(e) and 1.1250-1(f). If
collected in full in the ordinary course of column number next to the information you recognize any section 1254 recapture
business. entered in this section. In addition, if you on the partnership’s disposition of natural
contributed property to a foreign resource recapture property, enter “See
partnership as part of a wider transaction, Attached” and attach a statement
briefly describe the entire transaction. calculating the amount of recapture. See
Schedule O—Transfer of Regulations section 1.1254-5.
Property to a Foreign Part II—Dispositions
Reportable Under Section Part III—Gain Recognition
Partnership 6038B Under Section 904(f)(3) or
Note. Category 3 filers must complete Use Part II to report certain dispositions (f)(5)(F)
Schedule O. by a foreign partnership. If you were If gain recognition was required with
required to report a transfer of respect to any transfer reported in Part I
Part I—Transfers Reportable appreciated property to the partnership, under section 904(f)(3) and (f)(5)(F),
Under Section 6038B and the partnership disposes of the attach a statement identifying the transfer
Part I is used to report the transfer of property while you are still a direct or and the amount of gain recognized.
property to a foreign partnership. Provide constructive partner, you must report that
the information required in columns (a) disposition in Part II. If the partnership
through (g) with respect to each disposes of the property in a Schedule P—Acquisitions,
contribution of property to the foreign nonrecognition transaction and receives
partnership that must be reported. If you in exchange substituted basis property, Dispositions, and Changes
contributed property with a FMV greater report the subsequent disposition of the of Interests in a Foreign
than its tax basis (appreciated property), substituted basis property in the same
or intangible property, provide the manner as provided for the contributed Partnership
information required in columns (a) property. See section 7701(a)(42) for the Use Schedule P to report the acquisition,
through (g) separately with respect to definition of substituted basis property disposition, and change of interest in a
each item of property transferred (except and Regulations section 1.704-3(a)(8) for foreign partnership.
to the extent you are allowed to more information. Every Category 4 filer must complete
aggregate the property under Regulations Column (a). Provide a brief description Schedule P.
section 1.704-3(e)(2), (3), and (4)). of the property disposed of by the
Provide a general description of each partnership. If you are reporting the Part I—Acquisitions
item of property in the Supplemental disposition of substituted basis property Part I is completed by Category 4 filers
Information Required To Be Reported received by the partnership in a required to report an acquisition of an
section. For all other property contributed, nonrecognition transaction in exchange interest in a foreign partnership. See
aggregate by the categories listed in Part for appreciated property contributed by Categories of Filers beginning on page 1
I. you, enter “See Attached.” Attach a for more details about which types of
Column (a). Enter the date of the statement providing brief descriptions of acquisitions must be reported.
transfer. If the transfer was composed of both the property contributed by you to Column (a). If you acquired the interest
a series of transactions over multiple the partnership and the substituted basis in the foreign partnership by purchase,
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gift, inheritance, or in a distribution from a Column (a). Unless you disposed of the Filers beginning on page 1 for more
trust, estate, partnership, or corporation, interest by withdrawing, in whole or in details about which changes in
enter the name, address, and identifying part, from the partnership, enter the proportional interest must be reported.
number (if any), of the person from whom name, address, and identifying number (if
you acquired the interest. any) of the person to whom you Column (a). Briefly describe the event
Column (b). Enter the date of the transferred the interest in the foreign that caused your interest in the
acquisition. If the acquisition was partnership. partnership to change (for example, the
composed of a series of transactions over admission of a new partner).
Column (b). Enter the date of the
multiple dates, enter the date the disposition. If the disposition was Column (b). Enter the date of the
acquisition was completed. composed of a series of transactions over change. If the change resulted from a
Column (c). Enter the FMV of the multiple dates, enter the date the series of transactions over multiple dates,
interest you acquired in the partnership disposition was completed. enter the date the change was completed.
(measured as of the date of acquisition).
Column (d). Enter your basis in the Column (c). Enter the FMV of the Column (c). Enter the FMV of your
acquired partnership interest (measured interest you disposed of in the partnership interest in the partnership immediately
as of the date of acquisition). See (measured as of the date of disposition). before the change.
sections 722 and 742. If you recognized gain or loss on the
disposition, state the amount of gain or Column (d). Enter your basis in your
Columns (e) and (f). Enter your total loss in Part IV. See section 741. partnership interest immediately before
direct percentage interest in the the change.
partnership both before and immediately Column (d). Enter your adjusted basis in
after the acquisition. To the extent your the partnership interest disposed of Columns (e) and (f). Enter your direct
direct percentage interest in the immediately before the disposition. See percentage interest in the partnership
partnership differs among capital, profits, section 705. both before and immediately after the
losses, or deductions, enter “See Below” change. To the extent your percentage
Columns (e) and (f). Enter your total
and state the different percentages in Part interest in the partnership differs among
direct percentage interest in the
IV. capital, profits, losses, or deductions,
partnership both before and immediately
Part II—Dispositions after the disposition. To the extent your enter “See Below” and state the different
percentage interest in the partnership percentages in Part IV.
This section is completed by U.S. persons
who are Category 4 filers because they differs among capital, profits, losses, or
disposed of an interest in a foreign deductions, enter “See Below” and state Part IV—Supplemental
partnership. See Categories of Filers the different percentages in Part IV. Information Required To Be
beginning on page 1 for more details Reported
about what types of dispositions must be Part III—Change in Enter any information asked for in Part I,
reported. For each disposition reported in Proportional Interest Part II, or Part III that must be reported in
Part II, indicate in Part IV whether a This section is completed by U.S. persons detail. Identify the applicable part number
statement is required by Regulations who are Category 4 filers because their and column next to the information
section 1.751-1(a)(3) to be filed with direct proportional interest in the foreign entered in Part IV.
respect to the disposition. partnership changed. See Categories of

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Privacy Act and Paperwork Reduction Act Notice. We ask for the information on this form to carry out the Internal Revenue laws
of the United States. Sections 6038, 6038B, and 6046A require you to provide this information. Section 6109 requires you to provide
your identifying number (SSN, EIN, or PTIN). We need this information to ensure that you are complying with the revenue 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 and related schedule will vary depending on individual circumstances. The
estimated burden for individual taxpayers filing this form is approved under OMB control number 1545 – 0074 and is included in the
estimates shown in the instructions for their individual income tax return. The estimated burden for all other taxpayers who file this
form is shown below.
Learning about the Preparing, copying, assembling and
Form Recordkeeping law or the form sending the form to the IRS
8865 89 hr., 21 min. 23 hr., 16 min. 36 hr., 26 min.
Schedule K-1 (Form 8865) 10 hr., 31 min. 35 min. 48 min.
Schedule O (Form 8865) 12 hr., 12 min. 2 hr., 22 min. 2 hr., 41 min.
Schedule P (Form 8865) 5 hr., 15 min. 35 min. 42 min.

If you have comments concerning the accuracy of these time estimates or suggestions for making this form and related
schedules simpler, we would be happy to hear from you. See the instructions for the tax return with which this form is filed. If you do
not have to file a tax return, see the instructions for the return you would be required to file.

Using the list of activities and codes below, purchases raw materials and supplies them to a
Codes for Principal Business determine from which activity the business derives subcontractor to produce the finished product, but
Activity and Principal Product the largest percentage of its “total receipts.” Total retains title to the product, the business is
receipts is defined as the sum of gross receipts or considered a manufacturer and must use one of the
or Service sales (Schedule B, line 1a); all other income manufacturing codes (311110 – 339900).
reported on Schedule B, lines 4 through 7; income
This list of Principal Business Activities and their Once the Principal Business Activity is
reported on Schedule K, lines 3a, 5, 6a, and 7;
associated codes is designed to classify an determined, enter the six-digit code from the list
income or net gain reported on Schedule K, lines 8,
enterprise by the type of activity in which it is below on page 1, Item F6. Also enter a brief
9a, 10, and 11; and income or net gain reported on
engaged to facilitate the administration of the description of the business activity in Item F7.
Form 8825, lines 2, 19, and 20a. If the business
Internal Revenue Code. These Principal Business
Activity Codes are based on the North American
Industry Classification System.

Code Code Code Code
Agriculture, Forestry, Fishing 115210 Support Activities for Animal Specialty Trade Contractors 312140 Distilleries
and Hunting Production 238100 Foundation, Structure, & 312200 Tobacco Manufacturing
115310 Support Activities For Building Exterior Contractors Textile Mills and Textile Product
Crop Production Forestry (including framing carpentry,
111100 Oilseed & Grain Farming Mills
masonry, glass, roofing, & 313000 Textile Mills
111210 Vegetable & Melon Farming Mining siding)
(including potatoes & yams) 314000 Textile Product Mills
211110 Oil & Gas Extraction 238210 Electrical Contractors
111300 Fruit & Tree Nut Farming Apparel Manufacturing
212110 Coal Mining 238220 Plumbing, Heating, &
111400 Greenhouse, Nursery, & Air-Conditioning Contractors 315100 Apparel Knitting Mills
Floriculture Production 212200 Metal Ore Mining 315210 Cut & Sew Apparel
238290 Other Building Equipment
111900 Other Crop Farming 212310 Stone Mining & Quarrying Contractors
Contractors
(including tobacco, cotton, 212320 Sand, Gravel, Clay, & 315220 Men’s & Boys’ Cut & Sew
238300 Building Finishing
sugarcane, hay, peanut, Ceramic & Refractory Apparel Mfg
Contractors (including
sugar beet & all other crop Minerals Mining & Quarrying 315230 Women’s & Girls’ Cut & Sew
drywall, insulation, painting,
farming) 212390 Other Nonmetallic Mineral wallcovering, flooring, tile, & Apparel Mfg
Animal Production Mining & Quarrying finish carpentry) 315290 Other Cut & Sew Apparel Mfg
112111 Beef Cattle Ranching & 213110 Support Activities for Mining 238900 Other Specialty Trade 315990 Apparel Accessories & Other
Farming Contractors (including site Apparel Mfg
112112 Cattle Feedlots Utilities preparation) Leather and Allied Product
112120 Dairy Cattle & Milk 221100 Electric Power Generation, Manufacturing
Production Transmission & Distribution Manufacturing 316110 Leather & Hide Tanning &
112210 Hog & Pig Farming 221210 Natural Gas Distribution Food Manufacturing Finishing
112300 Poultry & Egg Production 221500 Combination Gas & Electric 311110 Animal Food Mfg 316210 Footwear Mfg (including
112400 Sheep & Goat Farming 221300 Water, Sewage & Other 311200 Grain & Oilseed Milling rubber & plastics)
112510 Animal Aquaculture (including Systems 311300 Sugar & Confectionery 316990 Other Leather & Allied
shellfish & finfish farms & Product Mfg Product Mfg
hatcheries) Construction 311400 Fruit & Vegetable Preserving Wood Product Manufacturing
112900 Other Animal Production Construction of Buildings & Specialty Food Mfg 321110 Sawmills & Wood
Forestry and Logging 236110 Residential Building 311500 Dairy Product Mfg Preservation
113110 Timber Tract Operations Construction 311610 Animal Slaughtering and 321210 Veneer, Plywood, &
113210 Forest Nurseries & Gathering 236200 Nonresidential Building Processing Engineered Wood Product
of Forest Products Construction 311710 Seafood Product Preparation Mfg
113310 Logging Heavy and Civil Engineering & Packaging 321900 Other Wood Product Mfg
Fishing, Hunting and Trapping Construction 311800 Bakeries & Tortilla Mfg Paper Manufacturing
114110 Fishing 237100 Utility System Construction 311900 Other Food Mfg (including 322100 Pulp, Paper, & Paperboard
237210 Land Subdivision coffee, tea, flavorings & Mills
114210 Hunting & Trapping
237310 Highway, Street, & Bridge seasonings) 322200 Converted Paper Product Mfg
Support Activities for Agriculture
Construction Beverage and Tobacco Product Printing and Related Support
and Forestry
237990 Other Heavy & Civil Manufacturing Activities
115110 Support Activities for Crop
Engineering Construction 312110 Soft Drink & Ice Mfg 323100 Printing & Related Support
Production (including cotton
ginning, soil preparation, 312120 Breweries Activities
planting, & cultivating) 312130 Wineries

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Page 11 of 14 Instructions for Form 8865 15:18 - 5-JAN-2007

The type and rule above prints on all proofs including departmental reproduction proofs. MUST be removed before printing.

Codes for Principal Business Activity and Principal Product or Service (continued)
Code Code Code Code
Petroleum and Coal Products 334310 Audio & Video Equipment 424940 Tobacco & Tobacco Products Sporting Goods, Hobby, Book, and
Manufacturing Mfg 424950 Paint, Varnish, & Supplies Music Stores
324110 Petroleum Refineries 334410 Semiconductor & Other 424990 Other Miscellaneous 451110 Sporting Goods Stores
(including integrated) Electronic Component Mfg Nondurable Goods 451120 Hobby, Toy, & Game Stores
324120 Asphalt Paving, Roofing, & 334500 Navigational, Measuring, Wholesale Electronic Markets and 451130 Sewing, Needlework, & Piece
Saturated Materials Mfg Electromedical, & Control Agents and Brokers Goods Stores
324190 Other Petroleum & Coal Instruments Mfg 425110 Business to Business 451140 Musical Instrument &
Products Mfg 334610 Manufacturing & Reproducing Electronic Markets Supplies Stores
Chemical Manufacturing Magnetic & Optical Media 425120 Wholesale Trade Agents & 451211 Book Stores
325100 Basic Chemical Mfg Electrical Equipment, Appliance, and Brokers 451212 News Dealers & Newsstands
325200 Resin, Synthetic Rubber, & Component Manufacturing
451220 Prerecorded Tape, Compact
Artificial & Synthetic Fibers & 335100 Electric Lighting Equipment Retail Trade Disc, & Record Stores
Filaments Mfg Mfg
Motor Vehicle and Parts Dealers General Merchandise Stores
325300 Pesticide, Fertilizer, & Other 335200 Household Appliance Mfg
441110 New Car Dealers 452110 Department Stores
Agricultural Chemical Mfg 335310 Electrical Equipment Mfg
441120 Used Car Dealers 452900 Other General Merchandise
325410 Pharmaceutical & Medicine 335900 Other Electrical Equipment & Stores
Mfg Component Mfg 441210 Recreational Vehicle Dealers
441221 Motorcycle Dealers Miscellaneous Store Retailers
325500 Paint, Coating, & Adhesive Transportation Equipment
Mfg Manufacturing 441222 Boat Dealers 453110 Florists
325600 Soap, Cleaning Compound, & 336100 Motor Vehicle Mfg 441229 All Other Motor Vehicle 453210 Office Supplies & Stationery
Toilet Preparation Mfg Dealers Stores
336210 Motor Vehicle Body & Trailer
325900 Other Chemical Product & Mfg 441300 Automotive Parts, 453220 Gift, Novelty, & Souvenir
Preparation Mfg Accessories, & Tire Stores Stores
336300 Motor Vehicle Parts Mfg
Plastics and Rubber Products Furniture and Home Furnishings 453310 Used Merchandise Stores
336410 Aerospace Product & Parts
Manufacturing Mfg Stores 453910 Pet & Pet Supplies Stores
326100 Plastics Product Mfg 336510 Railroad Rolling Stock Mfg 442110 Furniture Stores 453920 Art Dealers
326200 Rubber Product Mfg 336610 Ship & Boat Building 442210 Floor Covering Stores 453930 Manufactured (Mobile) Home
Nonmetallic Mineral Product 442291 Window Treatment Stores Dealers
336990 Other Transportation
Manufacturing Equipment Mfg 442299 All Other Home Furnishings 453990 All Other Miscellaneous Store
327100 Clay Product & Refractory Stores Retailers (including tobacco,
Furniture and Related Product candle, & trophy shops)
Mfg Manufacturing Electronics and Appliance Stores
327210 Glass & Glass Product Mfg 443111 Household Appliance Stores Nonstore Retailers
337000 Furniture & Related Product
327300 Cement & Concrete Product Manufacturing 443112 Radio, Television, & Other 454110 Electronic Shopping &
Mfg Electronics Stores Mail-Order Houses
Miscellaneous Manufacturing
327400 Lime & Gypsum Product Mfg 443120 Computer & Software Stores 454210 Vending Machine Operators
339110 Medical Equipment &
327900 Other Nonmetallic Mineral Supplies Mfg 443130 Camera & Photographic 454311 Heating Oil Dealers
Product Mfg 339900 Other Miscellaneous Supplies Stores 454312 Liquefied Petroleum Gas
Primary Metal Manufacturing Manufacturing Building Material and Garden (Bottled Gas) Dealers
331110 Iron & Steel Mills & Ferroalloy Equipment and Supplies Dealers 454319 Other Fuel Dealers
Mfg Wholesale Trade 444110 Home Centers 454390 Other Direct Selling
331200 Steel Product Mfg from 444120 Paint & Wallpaper Stores Establishments (including
Merchant Wholesalers, Durable door-to-door retailing, frozen
Purchased Steel Goods 444130 Hardware Stores food plan providers, party
331310 Alumina & Aluminum 423100 Motor Vehicle & Motor 444190 Other Building Material plan merchandisers, &
Production & Processing Vehicle Parts & Supplies Dealers coffee-break service
331400 Nonferrous Metal (except 423200 Furniture & Home 444200 Lawn & Garden Equipment & providers)
Aluminum) Production & Furnishings Supplies Stores
Processing 423300 Lumber & Other Construction Food and Beverage Stores Transportation and
331500 Foundries Materials 445110 Supermarkets and Other Warehousing
Fabricated Metal Product 423400 Professional & Commercial Grocery (except Air, Rail, and Water Transportation
Manufacturing Equipment & Supplies Convenience) Stores
481000 Air Transportation
332110 Forging & Stamping 423500 Metal & Mineral (except 445120 Convenience Stores
Petroleum) 482110 Rail Transportation
332210 Cutlery & Handtool Mfg 445210 Meat Markets
423600 Electrical & Electronic Goods 483000 Water Transportation
332300 Architectural & Structural 445220 Fish & Seafood Markets
Metals Mfg 423700 Hardware, & Plumbing & Truck Transportation
445230 Fruit & Vegetable Markets
332400 Boiler, Tank, & Shipping Heating Equipment & 484110 General Freight Trucking,
445291 Baked Goods Stores Local
Container Mfg Supplies
445292 Confectionery & Nut Stores 484120 General Freight Trucking,
332510 Hardware Mfg 423800 Machinery, Equipment, &
Supplies 445299 All Other Specialty Food Long-distance
332610 Spring & Wire Product Mfg Stores
332700 Machine Shops; Turned 423910 Sporting & Recreational 484200 Specialized Freight Trucking
Goods & Supplies 445310 Beer, Wine, & Liquor Stores Transit and Ground Passenger
Product; & Screw, Nut, & Bolt
Mfg 423920 Toy & Hobby Goods & Health and Personal Care Stores Transportation
332810 Coating, Engraving, Heat Supplies 446110 Pharmacies & Drug Stores 485110 Urban Transit Systems
Treating, & Allied Activities 423930 Recyclable Materials 446120 Cosmetics, Beauty Supplies, 485210 Interurban & Rural Bus
332900 Other Fabricated Metal 423940 Jewelry, Watch, Precious & Perfume Stores Transportation
Product Mfg Stone, & Precious Metals 446130 Optical Goods Stores 485310 Taxi Service
Machinery Manufacturing 423990 Other Miscellaneous Durable 446190 Other Health & Personal 485320 Limousine Service
333100 Agriculture, Construction, & Goods Care Stores 485410 School & Employee Bus
Mining Machinery Mfg Merchant Wholesalers, Nondurable Gasoline Stations Transportation
333200 Industrial Machinery Mfg Goods 447100 Gasoline Stations (including 485510 Charter Bus Industry
333310 Commercial & Service 424100 Paper & Paper Products convenience stores with gas) 485990 Other Transit & Ground
Industry Machinery Mfg 424210 Drugs & Druggists’ Sundries Clothing and Clothing Accessories Passenger Transportation
333410 Ventilation, Heating, 424300 Apparel, Piece Goods, & Stores Pipeline Transportation
Air-Conditioning, & Notions 448110 Men’s Clothing Stores 486000 Pipeline Transportation
Commercial Refrigeration 424400 Grocery & Related Products 448120 Women’s Clothing Stores Scenic & Sightseeing Transportation
Equipment Mfg 424500 Farm Product Raw Materials 448130 Children’s & Infants’ Clothing 487000 Scenic & Sightseeing
333510 Metalworking Machinery Mfg 424600 Chemical & Allied Products Stores Transportation
333610 Engine, Turbine & Power 424700 Petroleum & Petroleum 448140 Family Clothing Stores Support Activities for Transportation
Transmission Equipment Mfg Products 448150 Clothing Accessories Stores 488100 Support Activities for Air
333900 Other General Purpose 424800 Beer, Wine, & Distilled 448190 Other Clothing Stores Transportation
Machinery Mfg Alcoholic Beverages 448210 Shoe Stores 488210 Support Activities for Rail
Computer and Electronic Product 424910 Farm Supplies 448310 Jewelry Stores Transportation
Manufacturing 424920 Book, Periodical, & 448320 Luggage & Leather Goods 488300 Support Activities for Water
334110 Computer & Peripheral Newspapers Stores Transportation
Equipment Mfg 424930 Flower, Nursery Stock, & 488410 Motor Vehicle Towing
334200 Communications Equipment Florists’ Supplies
Mfg

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Page 12 of 14 Instructions for Form 8865 15:18 - 5-JAN-2007

The type and rule above prints on all proofs including departmental reproduction proofs. MUST be removed before printing.

Codes for Principal Business Activity and Principal Product or Service (continued)
Code Code Code Code
488490 Other Support Activities for Securities, Commodity Contracts, Lessors of Nonfinancial Intangible 561440 Collection Agencies
Road Transportation and Other Financial Investments and Assets (except copyrighted works) 561450 Credit Bureaus
488510 Freight Transportation Related Activities 533110 Lessors of Nonfinancial 561490 Other Business Support
Arrangement 523110 Investment Banking & Intangible Assets (except Services (including
488990 Other Support Activities for Securities Dealing copyrighted works) repossession services, court
Transportation 523120 Securities Brokerage reporting, & stenotype
Couriers and Messengers 523130 Commodity Contracts Professional, Scientific, and services)
492110 Couriers Dealing Technical Services 561500 Travel Arrangement &
492210 Local Messengers & Local 523140 Commodity Contracts Legal Services Reservation Services
Delivery Brokerage 541110 Offices of Lawyers 561600 Investigation & Security
523210 Securities & Commodity Services
Warehousing and Storage 541190 Other Legal Services
Exchanges 561710 Exterminating & Pest Control
493100 Warehousing & Storage Accounting, Tax Preparation,
523900 Other Financial Investment Services
(except lessors of Bookkeeping, and Payroll Services
miniwarehouses & Activities (including portfolio 561720 Janitorial Services
management & investment 541211 Offices of Certified Public
self-storage units) Accountants 561730 Landscaping Services
advice) 561740 Carpet & Upholstery Cleaning
Insurance Carriers and Related 541213 Tax Preparation Services
Information Services
Activities 541214 Payroll Services
Publishing Industries (except 561790 Other Services to Buildings &
524140 Direct Life, Health, & Medical 541219 Other Accounting Services Dwellings
Internet)
Insurance & Reinsurance Architectural, Engineering, and 561900 Other Support Services
511110 Newspaper Publishers Carriers Related Services
511120 Periodical Publishers (including packaging &
524150 Direct Insurance & 541310 Architectural Services labeling services, &
511130 Book Publishers Reinsurance (except Life, 541320 Landscape Architecture convention & trade show
511140 Directory & Mailing List Health & Medical) Carriers Services organizers)
Publishers 524210 Insurance Agencies & 541330 Engineering Services Waste Management and
511190 Other Publishers Brokerages 541340 Drafting Services Remediation Services
511210 Software Publishers 524290 Other Insurance Related 541350 Building Inspection Services 562000 Waste Management &
Motion Picture and Sound Activities (including Remediation Services
third-party administration of 541360 Geophysical Surveying &
Recording Industries Mapping Services
insurance and pension funds)
512100 Motion Picture & Video 541370 Surveying & Mapping (except Educational Services
Industries (except video Funds, Trusts, and Other Financial 611000 Educational Services
Vehicles Geophysical) Services
rental) (including schools, colleges,
525100 Insurance & Employee 541380 Testing Laboratories
512200 Sound Recording Industries & universities)
Benefit Funds Specialized Design Services
Broadcasting (except Internet)
525910 Open-End Investment Funds 541400 Specialized Design Services
515100 Radio & Television (including interior, industrial, Health Care and Social
(Form 1120-RIC)
Broadcasting
525920 Trusts, Estates, & Agency graphic, & fashion design) Assistance
515210 Cable & Other Subscription Computer Systems Design and Offices of Physicians and Dentists
Programming Accounts
525930 Real Estate Investment Related Services 621111 Offices of Physicians (except
Internet Publishing and 541511 Custom Computer mental health specialists)
Trusts (Form 1120-REIT)
Broadcasting Programming Services 621112 Offices of Physicians, Mental
525990 Other Financial Vehicles
516110 Internet Publishing & 541512 Computer Systems Design Health Specialists
(including closed-end
Broadcasting Services 621210 Offices of Dentists
investment funds)
Telecommunications 541513 Computer Facilities Offices of Other Health Practitioners
“Offices of Bank Holding Companies”
517000 Telecommunications and “Offices of Other Holding Management Services 621310 Offices of Chiropractors
(including paging, cellular, Companies” are located under 541519 Other Computer Related
satellite, cable & other 621320 Offices of Optometrists
Management of Companies (Holding Services 621330 Offices of Mental Health
program distribution, Companies) below.
resellers, & other Other Professional, Scientific, and Practitioners (except
telecommunications) Technical Services Physicians)
Internet Service Providers, Web Real Estate and Rental and 541600 Management, Scientific, & 621340 Offices of Physical,
Search Portals, and Data Processing Leasing Technical Consulting Occupational & Speech
Services Therapists, & Audiologists
Services Real Estate
541700 Scientific Research & 621391 Offices of Podiatrists
518111 Internet Service Providers 531110 Lessors of Residential Development Services 621399 Offices of All Other
518112 Web Search Portals Buildings & Dwellings
541800 Advertising & Related Miscellaneous Health
518210 Data Processing, Hosting, & 531114 Cooperative Housing Services Practitioners
Related Services 531120 Lessors of Nonresidential 541910 Marketing Research & Public Outpatient Care Centers
Other Information Services Buildings (except Opinion Polling
Miniwarehouses) 621410 Family Planning Centers
519100 Other Information Services 541920 Photographic Services
(including news syndicates & 531130 Lessors of Miniwarehouses & 621420 Outpatient Mental Health &
Self-Storage Units 541930 Translation & Interpretation Substance Abuse Centers
libraries) Services
531190 Lessors of Other Real Estate 621491 HMO Medical Centers
Property 541940 Veterinary Services 621492 Kidney Dialysis Centers
Finance and Insurance 541990 All Other Professional,
Depository Credit Intermediation 531210 Offices of Real Estate Agents 621493 Freestanding Ambulatory
& Brokers Scientific, & Technical Surgical & Emergency
522110 Commercial Banking Services
531310 Real Estate Property Centers
522120 Savings Institutions Managers 621498 All Other Outpatient Care
522130 Credit Unions 531320 Offices of Real Estate Management of Companies Centers
522190 Other Depository Credit Appraisers (Holding Companies) Medical and Diagnostic Laboratories
Intermediation 531390 Other Activities Related to 551111 Offices of Bank Holding 621510 Medical & Diagnostic
Nondepository Credit Intermediation Real Estate Companies Laboratories
522210 Credit Card Issuing Rental and Leasing Services 551112 Offices of Other Holding Home Health Care Services
522220 Sales Financing 532100 Automotive Equipment Rental Companies
621610 Home Health Care Services
522291 Consumer Lending & Leasing Other Ambulatory Health Care
522292 Real Estate Credit (including 532210 Consumer Electronics & Administrative and Support Services
mortgage bankers & Appliances Rental and Waste Management and 621900 Other Ambulatory Health
originators) 532220 Formal Wear & Costume Remediation Services Care Services (including
522293 International Trade Financing Rental Administrative and Support Services ambulance services & blood
522294 Secondary Market Financing 532230 Video Tape & Disc Rental 561110 Office Administrative & organ banks)
522298 All Other Nondepository 532290 Other Consumer Goods Services Hospitals
Credit Intermediation Rental 561210 Facilities Support Services 622000 Hospitals
Activities Related to Credit 532310 General Rental Centers 561300 Employment Services Nursing and Residential Care
Intermediation 532400 Commercial & Industrial 561410 Document Preparation Facilities
522300 Activities Related to Credit Machinery & Equipment Services 623000 Nursing & Residential Care
Intermediation (including loan Rental & Leasing 561420 Telephone Call Centers Facilities
brokers, check clearing, &
money transmitting) 561430 Business Service Centers
(including private mail centers
& copy shops)

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Page 13 of 14 Instructions for Form 8865 15:18 - 5-JAN-2007

The type and rule above prints on all proofs including departmental reproduction proofs. MUST be removed before printing.

Codes for Principal Business Activity and Principal Product or Service (continued)
Code Code Code Code
Social Assistance 713900 Other Amusement & 811120 Automotive Body, Paint, 812320 Drycleaning & Laundry
624100 Individual & Family Services Recreation Industries Interior, & Glass Repair Services (except
624200 Community Food & Housing, (including golf courses, skiing 811190 Other Automotive Repair & Coin-Operated)
& Emergency & Other Relief facilities, marinas, fitness Maintenance (including oil 812330 Linen & Uniform Supply
Services centers, & bowling centers) change & lubrication shops & 812910 Pet Care (except Veterinary)
624310 Vocational Rehabilitation car washes) Services
Services Accommodation and Food 811210 Electronic & Precision 812920 Photofinishing
624410 Child Day Care Services Services Equipment Repair & 812930 Parking Lots & Garages
Accommodation Maintenance
812990 All Other Personal Services
811310 Commercial & Industrial
Arts, Entertainment, and 721110 Hotels (except Casino Hotels)
Machinery & Equipment Religious, Grantmaking, Civic,
Recreation & Motels Professional, and Similar
(except Automotive &
Performing Arts, Spectator Sports, 721120 Casino Hotels Electronic) Repair & Organizations
and Related Industries 721191 Bed & Breakfast Inns Maintenance 813000 Religious, Grantmaking,
711100 Performing Arts Companies 721199 All Other Traveler 811410 Home & Garden Equipment & Civic, Professional, & Similar
Accommodation Appliance Repair & Organizations (including
711210 Spectator Sports (including condominium and
sports clubs & racetracks) 721210 RV (Recreational Vehicle) Maintenance
Parks & Recreational Camps homeowners associations)
711300 Promoters of Performing Arts, 811420 Reupholstery & Furniture
Sports, & Similar Events 721310 Rooming & Boarding Houses Repair
711410 Agents & Managers for Food Services and Drinking Places 811430 Footwear & Leather Goods
Artists, Athletes, Entertainers, 722110 Full-Service Restaurants Repair
& Other Public Figures 722210 Limited-Service Eating 811490 Other Personal & Household
711510 Independent Artists, Writers, Places Goods Repair & Maintenance
& Performers 722300 Special Food Services Personal and Laundry Services
Museums, Historical Sites, and (including food service 812111 Barber Shops
Similar Institutions contractors & caterers) 812112 Beauty Salons
712100 Museums, Historical Sites, & 722410 Drinking Places (Alcoholic 812113 Nail Salons
Similar Institutions Beverages) 812190 Other Personal Care
Amusement, Gambling, and Services (including diet &
Recreation Industries Other Services weight reducing centers)
713100 Amusement Parks & Arcades Repair and Maintenance 812210 Funeral Homes & Funeral
713200 Gambling Industries 811110 Automotive Mechanical & Services
Electrical Repair & 812220 Cemeteries & Crematories
Maintenance 812310 Coin-Operated Laundries &
Drycleaners

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Page 14 of 14 Instructions for Form 8865 15:18 - 5-JAN-2007

The type and rule above prints on all proofs including departmental reproduction proofs. MUST be removed before printing.

Index

Changes in Proportional H Schedules K and K-1 – Partners’
10% interest . . . . . . . . . . . . . . . . . . 3 Interests . . . . . . . . . . . . . . . . . . . . 2 Hyperinflationary Exception . . . . 5 Shares of Income, Deductions,
50% interest . . . . . . . . . . . . . . . . . . 3 Consolidated Return . . . . . . . . . . . 5 Credits, Etc. . . . . . . . . . . . . . . . . . 6
Constructive Ownership . . . . . . . . 4 I
A Control of a Corporation . . . . . . . 4 Identifying Numbers and T
Acquisitions . . . . . . . . . . . . . . . . . . . 2 Corrections to Form 8865 . . . . . . 4 Addresses . . . . . . . . . . . . . . . . . . 4 Tax Year . . . . . . . . . . . . . . . . . . . . . . 4
Analysis of partners’ capital Treaty-based Return
accounts . . . . . . . . . . . . . . . . . . . . 7 D Positions . . . . . . . . . . . . . . . . . . . . 4
P
Definitions . . . . . . . . . . . . . . . . . . . . 3 Partnership . . . . . . . . . . . . . . . . . . . 3
B Dispositions . . . . . . . . . . . . . . . . . . . 2 Penalties . . . . . . . . . . . . . . . . . . . . . . 4 U
Balance sheets per books . . . . . . 7 Purpose of Form . . . . . . . . . . . . . . 1 U.S. Person . . . . . . . . . . . . . . . . . . . 4
E
C Exceptions to Filing . . . . . . . . . . . . 2 R W
Categories of Filers . . . . . . . . . . . . 1 Relief for Category 1 and 2 What’s new . . . . . . . . . . . . . . . . . . . 1
Category 1 filer . . . . . . . . . 1, 5, 6 F filers . . . . . . . . . . . . . . . . . . . . . . . . 3 When To File . . . . . . . . . . . . . . . . . . 3
Category 2 filer . . . . . . . . . . . . 1, 5 Foreign Address . . . . . . . . . . . . . . . 4 Who Must File . . . . . . . . . . . . . . . . . 1
Category 3 filer . . . . . . . . . 1, 5, 6 Foreign Partnership . . . . . . . . . . . 3
Category 4 filer . . . . . . . . . . . . 2, 5
S ■
Schedule B – Income
Change in a Proportional
G Statement – Trade or Business
Interest . . . . . . . . . . . . . . . . . . . . . 4
General Reporting Instructions for Income . . . . . . . . . . . . . . . . . . . . . 6
Schedule K-1 . . . . . . . . . . . . . . . 7

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