February 2, 2005 --  The IRS posted the final version of Form 8858 on its website on December 11, 2004.  This form is used by certain U.S. persons that own a foreign disregarded entity (FDE), directly, or in certain circumstances, indirectly or constructively.  The form and its schedules are used to satisfy the reporting requirements of sections 6011, 6012, 6031, and 6038, and related regulations.  The form and instructions are very similar to form 5471, Information Return of U.S. Persons with respect to certain foreign corporations.  The Instructions provide for the imposition of a $10,000 penalty for every 30 day period on U.S. persons who fail to furnish all required information within 90 days of IRS notification.  This penalty is capped at $50,000.

The form is required to be attached to the tax return of the tax owner of a FDE or to the Form 5471, in the case of indirect or constructive ownership.  The form is effective for annual accounting periods of the tax owner that begin on or after January 1, 2004.

For more information, call Bill Burns at 215-564-1900 .

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