Form 8865 Reporting of Foreign Partnership Income and Navigating Rules for Allocable Share of Foreign Income

Recording of a 110-minute CPE webinar with Q&A

Conducted on Thursday, August 3, 2017
Recorded event now available

This webinar will provide tax advisers and return preparers with insights on handling complex challenges when completing Form 8865 and its associated schedules. The panel will explain approaches for correctly identifying taxpayer category, determining allocable share of foreign income, and avoiding serious, but common, mistakes.


Filing Form 8865 requires presentation of data that ranges from simple to highly complex on the return and its associated Schedules A, B, C, K, L and N. Correctly completing the form involves hours of intensive work, from proper recordkeeping to compiling data and correctly following IRS regs and instructions.

The IRS’ emphasis on international tax compliance makes accurate compliance with this return a much greater priority. Though in past years the IRS imposed penalties for late or non-filing selectively, the Service started automatically imposing hefty penalties on late and non-filers in the past few years.

Our panel of experienced tax advisers will explain the nuances, audit red flags and common pitfalls involved in completing Form 8865 and its schedules. They will offer lessons from the field to arm you with the knowledge and tools to efficiently confront and overcome the reporting and compliance challenges.

Listen as our panel identifies and explains the most difficult aspects of preparing Form 8865 for reporting foreign partnership income. The panel will outline approaches for you to properly identify taxpayer category, determine allocable share of foreign income, and stay ahead of potential audit red flags and common errors.


  1. Purpose of Form 8865
  2. IRS enforcement and audit environment to date
  3. Preparation of Form 8865
  4. Schedules
  5. Difficult compliance issues related to Form 8865


The panel will prepare you to:

  • Understand the purpose of Form 8865, the categories of U.S. persons required to file, and gather data to correctly determine allocable share of partnership income
  • Report the income and expense statements and balance sheets for taxpayers with 10% or more interest in a foreign partnership or flow-through LLC
  • Grasp key U.S. international tax reporting rules and obligations of U.S. persons with interests in foreign partnerships
  • Avoid audit red flags and common, serious errors that the Service looks for in Form 8865 and its schedules

Learning Objectives

Upon completing this webinar, you will be able to:

  • Determine how to arrive at correct data to complete IRS Form 8865
  • Indicate the criteria and reporting requirements for foreign entities to elect their classification for U.S. tax purposes
  • Identify the various Schedules of IRS Form 8865 and their uses
  • Recognize the key U.S. international tax reporting rules and obligations of U.S. persons with interests in foreign partnerships
  • Distinguish between the audit red flags and common, serious errors that the IRS looks for in Form 8865 and its Schedules when net investment income tax must be calculated on IRS Form 8960


Alison N. Dougherty, J.D., LL.M., Director
Aronson, Rockville, Md.

Ms. Dougherty has extensive experience assisting clients with U.S. tax reporting and compliance for offshore assets and foreign accounts. She specializes in international tax compliance, planning and structuring as a subject matter leader of her firm's international tax practice. Her responsibilities include U.S. Federal and multi-state tax compliance for C corporations, S corporations, partnerships and individuals. She also provides transactional tax planning and structuring services.

Charles K. Kolstad, Partner
Mitchell Silberberg & Knupp, Los Angeles

Mr. Kolstad focuses his practice on international tax, corporate, and partnership matters. He assists clients in tax and corporate planning relating to the acquisition, disposition and restructuring of businesses, corporations and partnerships both domestically and internationally. He has advised numerous clients, accountants and business managers on dealing with unreported foreign financial accounts and foreign trusts, as well as the reporting requirements for U.S. tax payers with international business operations. Mr. Kolstad also advises foreign individuals moving to the U.S. on pre-immigration, income, gift and estate tax planning opportunities.

EA Credit

Enrolled Agent credit processing is available for an additional fee per person.

EA Processing $5.00


Recorded Event

Includes full event recording plus handouts.

Note: Self-study CPE and EA credits are not offered on recorded events.

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Program Materials

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Program Materials

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Strafford is an IRS approved continuing education provider and this course is approved for 2 enrolled agent (EA) credit hours.

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Customer Reviews

I liked the concentration on specific issues and examples.

Edita Rimalovsky

Komisar Brady & Co.

Excellent seminar! It was efficient and the important topics were covered at just the right pace; no time was wasted covering information that the participants already knew.

Rhonda G. Williams, CPA

Barraclough & Associates

I liked the fact that there was more than one person presenting the material. It's nice to hear multiple perspectives.

Matt Bristow

Cover & Rossiter

I loved the tools and handouts. Every CPE class should offer these kind of tools.

Jackie Meyer

Sample and Bailey

I appreciated the flow of the information offered and the ease at which I could follow the handouts.

Larry Bruck

WISS & Company

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