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Foreign divisional consolidations

Automatic Foreign Form Creation during TAS Compute

Beginning in tax year 2009, in income tax binders with an entity type of
Parent, Subsidiary
 and
Divisional Consolidation
 and an international filing type of
Foreign Entity
 the system creates a single Form 8858. Similar to the Form 5471 and 8865, the TAS Consolidation process (rather than Organizer Consolidation) accumulates amounts from the member binders and transfers the combined results to the consolidated binder’s Form 8858 Organizer.
A single instance of the following forms is automatically populated by TAS for tax year 2009 and later binders:
Foreign Subsidiary
8865
5471
8858
Foreign Parent
8865
5471
8858
Foreign Divisional Consolidation
8865
5471
8858
Foreign Corporate Single Entity
8865
5471
Foreign Division
8858
FTC Division
8858
note
The creation of forms is contingent on the International Filing Type and Entity Type of the binder. The binder’s foreign entity type (Controlled Foreign Corporation, Foreign Partnership or 10/50 Company) does not impact form population but does affect the e-filing checkbox.
The following chart summarizes where an 8858 can be created and how it is populated:
International Filing Type
Number Allowed per Binder
Parent
Sub
Divisional Consolidation
Corporate Single Entity
Division
Top Con / Sub Con / Elim
Foreign Entity
One (TAS Created)
Yes
Yes
Yes
No
Yes
No
Foreign Tax Credit
One (TAS Created)
No
No
No
No
Yes
No
Foreign Tax Credit
Multiple (User Created)
Yes
Yes
No
Yes
No
No
None
Multiple (User Created)
Yes
Yes
No
Yes
Yes
No
During a TAS consolidation and compute the following information is transferred to hidden fields in the Form 8858 Organizer when the
Update Organizer with Federal TAS
 box is checked:
  • Page 1 Foreign Disregarded Entity information from Entity and Binder Properties
  • Schedule C Income Statement
  • Schedule C-1 Section 987 Gain or Loss Information
  • Schedule F Balance Sheet
  • Schedule H Current Earnings and Profits
TAS always transfers functional currency to the Form 8858 for all foreign divisional consolidations. By default, local currency is transferred for all other entity types. To transfer functional currency instead of local currency to Form 8858, go to the binder’s Properties, select the International tab and check
Transfer Functional Currency to Form 8858
.
Any data manually entered in Organizer overrides the information transferred from TAS. Use the
Tax Forms
 tab to review the 8858.

This article applies to:

  • PRODUCT: ONESOURCE Income Tax
  • Return type: 1120 Corporation,international
  • Subject: Tax Accounting System

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