Form 8804 Will Apply Tax Rates in Effect in 2012 to Fiscal Year Partnerships in 2013 (Ann. 2013-30)

Form 8804 Will Apply Tax Rates in Effect in 2012 to Fiscal Year Partnerships in 2013 (Ann. 2013-30)

Posted on 04/25/2013 by CCH

The IRS has announced that the 2012 Form 8804, Annual Return for Partnership Withholding Tax, continues to apply the tax rates in effect in 2012 for purposes of determining the amount of Code Sec. 1446 withholding tax for partnerships that have effectively connected taxable income (ECTI) allocable to a foreign partner. Foreign partners in a fiscal year partnership with a tax year ending in 2013 must pay tax on their distributive share of the partnership’s ECTI based on the tax rates in effect in the tax year of their inclusion as determined under Code Sec. 706(a) . This guidance is effective for partnership tax years beginning in 2012.