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.
