What is Form 8975?
Form 8975, known as the Country-by-Country Report, is a tax document that U.S. multinational companies must complete to disclose financial data for each country they operate in. This form plays a crucial role in helping tax authorities monitor compliance with international tax laws and combat base erosion and profit shifting (BEPS). It requires detailed information, such as revenue, taxes paid, and economic activities for each country. By promoting transparency, it aids tax authorities in identifying tax issues, ensuring fair taxation, and minimizing the chances of tax evasion.
What is Form 8975 used for?
Form 8975 plays a crucial role in global tax reporting. Here’s what it’s used for:
- Reporting Obligations: Helps U.S. Multinational Enterprises meet IRS requirements.
- Transparency: Enhances understanding of multinational tax practices by detailing income and taxes across jurisdictions.
- Risk Assessment: Aids tax authorities in identifying transfer pricing issues and BEPS risks.
- Compliance: Promotes accurate reporting, reducing the chances of penalties on taxes owed.
How to fill out Form 8975?
- 1
Ensure the form reflects the correct tax year and reporting period.
- 2
Check the 'amended report' box if applicable.
- 3
Verify the number of attached Schedules A (Form 8975) is correct.
- 4
Enter the reporting entity's name in Part I, section 1a.
- 5
Provide the reporting role code in Part I, section 1b.
- 6
Include the two-digit ISO country code for each entity in Schedule A.
- 7
File the form electronically through the IRS Modernized e-File system in XML format if possible.
Who is required to fill out Form 8975?
Ultimate parent entities of U.S. multinational enterprise (MNE) groups are responsible for completing Form 8975 if their group’s combined revenue exceeds $850 million.
Tax authorities use Form 8975 to collect financial data and details about employees and non-cash tangible assets, enhancing transparency in international taxation.
When is Form 8975 not required?
Form 8975 is not required if the U.S. MNE group's annual revenue was under $850 million for the previous reporting period. Entities without international related party dealings or those not facing transfer pricing risks may also be exempt. Always check with tax authorities for specific circumstances regarding exemptions.
When is Form 8975 due?
The deadline for Form 8975 aligns with the due date of the ultimate parent entity’s income tax return, including any extensions. Calendar-year taxpayers typically file by April 15, with an extension available until October 15. Fiscal-year taxpayers must file based on their tax year-end, such as a June 30 year-end, which has a standard due date of September 15 and an extended deadline of March 15.
How to get a blank Form 8975?
To get a blank Form 8975, the Country-by-Country Report issued by the Internal Revenue Service (IRS), simply visit our platform. We have a pre-loaded version ready for you to fill out. Remember, our website assists with filling and downloading forms, but it does not support filing.
Do you need to sign Form 8975?
No, you do not need to sign Form 8975. This reporting form is designed to collect specific information about your multinational enterprise group and does not require a signature. For the most accurate and up-to-date information, it's recommended to check the latest updates. After filling out the form using PDF Guru, you can download it for your records, but remember that submission or online sharing is not supported.
Where to file Form 8975?
Form 8975 can be submitted electronically or by mail. For electronic filing, attach it to your income tax return using the Modernized e-File (MeF) system.
If you choose to file by mail, send a copy of page 1 of Form 8975 to the IRS. Follow the instructions for your specific income tax return and use the address for paper submissions.
