Foreign disregarded entities (FDEs) have been used as popular tax planning vehicles for many multinational companies. Our e8858 sub-module allows such companies to perform the necessary calculations to complete the forms required by the IRS to be filed with U.S. consolidated federal returns.
Form 8858 compliance requires complex calculations – sourcing by either foreign tax credit categories or item of income depending on its parent, inclusion of its financial data to its parents (Forms 5471, 8865, 1065 and 1120), population to Form 8858, and other attachment schedules depending on the content of the return.
Additionally, since FDEs may have been used as part of a check-the-box planning method, consolidation of many of the check-the-box branches adds further complexities. In many cases, it requires complex currency translation because many of the check-the-box branches do not have the same functional currency as their parent FDE.
General Features
- Contains step-by-step set up screens that walk users through the initial set-up process
- Provides step-by-step input screens that walk first time users through the return process
- Offers flexible and efficient data imports that help users set the system up quickly
- Performs automatic translation of financial data and consolidation
- Handles unlimited general ledger systems, charts of accounts, and currencies
- Lets users map data into a standardized chart of account format
- Provides the ability to create time-saving automatic adjustments
- Allows applicable data to carry seamlessly from area to area; thereby reducing duplication of efforts and potential errors by letting users work in multiple tax areas with ease
- Provides multi-year capabilities that allows users to easily access prior and future years data for comparing prior and current year data, auditing, or planning
- Produces fast and efficient calculations that alert users to the process stage status
- Provides foreign source income tracking and corresponding expense apportionments
- Provides automated inclusion of FDE results to the parent return
Review Capabilities
- Offers diagnostics that indicate if errors exist
- Generates easy to navigate forms for online review quickly
- Provides a comprehensive set of reports that lets users track and review every step of the single entity as well as the consolidated calculation process
- Creates easy to understand reports that users can print and/or integrate with Microsoft® Excel®
- Offers the ability to create a print binder and attach other forms, if needed