Controlled foreign partnerships (CFPs) have been used as popular tax planning vehicles for many multinational companies. Our e8865 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 8865 compliance requires complex calculations: partner allocations, sourcing by foreign tax credit categories of income, population to Form 8865, Schedule K-1s, and other attachment schedules depending on the content of the return.
Additionally, since CFPs may have been used as part of check-the-box planning, consolidation of many 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 CFP.
Tax Series e8865 makes preparation of Form 8865 intuitive and efficient. By allowing the import of data with an easy-to-use validation processes, Tax Series simplifies data validation and return production processes. Further, using Tax Series’ standard income sourcing and expense apportionment module, the foreign source income and partner allocation is made simple and easy to follow.
- 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 helps 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 partner allocation calculations using direct sourcing and apportionment methods
- Provides foreign source income tracking and corresponding expense apportionments
- 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