Wednesday, 17 May 2017

IRS issues draft instructions for Form 8975

The IRS on February 24 released draft instructions for draft Form 8975, Country-by-Country Report, and accompanying draft Schedule A, Tax Jurisdiction and Constituent Entity Information, that were issued in December 2016. These draft forms and instructions are based on Action 13 of the Base Erosion and Profit Shifting (BEPS) project undertaken by the Organization for Economic Cooperation and Development (OECD). The IRS is accepting comments on the draft forms and instructions, and plans to finalize them by June 2017.
The final country-by-country (CbC) reporting regulations, found in Treas. Reg. §1.6038-4 (TD 9773), provide the basic rules and definitions to be used when filling out Form 8975 and accompanying Schedule A. Nevertheless, gaps in the regulations persist, and these draft instructions, though not final or binding authority, appear to clarify some of those issues.

Source & more info: Deloitte