Printable Form 2026

IRS Instruction 926 – IRS Forms, Instructions, Pubs 2026

IRS Instruction 926 – IRS Forms, Instructions, Pubs 2026 – If you are a U.S. citizen, resident, domestic corporation, estate, or trust transferring property (including cash, stock, intangibles, or other assets) to a foreign corporation, you may need to file IRS Form 926. This form enforces information reporting under Internal Revenue Code (IRC) sections 6038B, 367(d), and 367(e).

The official Instructions for Form 926 (Revised November 2018) remain the current version as of February 2026, with no subsequent revisions issued by the IRS. Download the latest PDF directly from the IRS: https://www.irs.gov/pub/irs-pdf/i926.pdf.

This comprehensive guide summarizes the key requirements, who must file, exceptions, step-by-step completion instructions, penalties, and special rules—drawn exclusively from the official IRS instructions and irs.gov resources. Always consult a qualified tax professional for your specific situation, as this is for informational purposes only and is not tax or legal advice.

What Is IRS Form 926 and Why Is It Required?

Form 926, titled “Return by a U.S. Transferor of Property to a Foreign Corporation,” reports certain transfers of tangible or intangible property to a foreign corporation. The IRS uses the form to monitor cross-border transactions that could trigger gain recognition or other tax consequences under the outbound transfer rules in sections 367 and 6038B.

Key purpose: To provide detailed information on the transferor, transferee, property transferred, fair market value (FMV), basis, and any recognized gain or income inclusions.

Failure to file can result in substantial penalties and extension of the statute of limitations.

Who Must File Form 926?

Generally, any of the following U.S. persons (U.S. transferors) must file if they make a reportable transfer:

  • U.S. citizen or resident individual
  • Domestic corporation
  • Domestic estate or trust

Reportable transfers include those described in section 6038B(a)(1)(A), 367(d), or 367(e).

Special rules apply in these cases:

  • Partnership transfers — Domestic partners (not the partnership) file for their proportionate share of the property transferred.
  • Spousal transfers — Spouses may file a joint Form 926 only if they file a joint income tax return.
  • Cash transfers — Reportable if (1) the U.S. person owns ≥10% (voting power or value) of the foreign corporation immediately after the transfer, or (2) cash transferred during the 12-month period ending on the transfer date exceeds $100,000.
  • Gain Recognition Agreement (GRA) transfers of stock or securities — Form 926 is always required when a GRA is filed under Treas. Reg. §1.367(a)-8.
  • Section 332 liquidating distributions by a domestic corporation to a foreign parent — Filing is required.

Line 1 note (post-2017 requirement): Indicate whether the transferee is a “specified 10%-owned foreign corporation” (as defined in section 245A(b)(1)) that is not a controlled foreign corporation (CFC) under section 957(a).

Major Exceptions to Filing Form 926

You generally do not need to file if:

  1. The exchange qualifies under section 354 or 356 and involves:
    • Recapitalization of foreign corporation stock (section 368(a)(1)(E)), or
    • Asset reorganization not treated as an indirect stock transfer.
  2. A domestic corporation distributes domestic corporation stock/securities under section 355 (with limited exceptions for foreign controlled corporations).
  3. Stock or securities transfers under section 367(a) where the U.S. transferor meets specific ownership (<5% or ≥5%) and nonrecognition/taxable reporting conditions, or the FMV does not exceed $100,000 in certain cases.

Always review the full exceptions in the instructions, as they are narrowly applied.

When and Where to File Form 926?

File Form 926 with your timely filed income tax return (or exempt organization return) for the tax year that includes the date of the transfer. Attach it to Form 1120, 1040, 1041, etc., as applicable.

The form must include all supplemental information required by the regulations (Treas. Reg. §§1.6038B-1(c)–(e) and Temp. Treas. Reg. §§1.6038B-1T(c)–(d)).

Penalties for Non-Compliance

  • Section 6038B penalty: 10% of the FMV of the unreported property (capped at $100,000 unless due to intentional disregard).
  • Reasonable cause exception applies (not willful neglect).
  • Statute of limitations for the transfer is extended by 3 years after the required information is furnished.
  • Accuracy-related penalty under section 6662(j): Up to 40% on underpayments attributable to undisclosed foreign financial asset understatements.

Step-by-Step Instructions for Completing Form 926

All information must be in English and amounts in U.S. dollars. Use additional sheets that mirror the form layout if space is insufficient (do not simply write “see attached”).

Part I – U.S. Transferor Information

  • Enter your name, address, and identifying number (SSN or EIN).
  • Line 1: Check “Yes” if transferee is a specified 10%-owned foreign corporation (non-CFC).
  • Lines 2a–2d: Answer questions about the transferor’s status, control group, consolidated return, and section 367(a)(4) basis adjustments (attach statements if required).
  • Line 3: Partnership-related questions.

Part II – Transferee Foreign Corporation Information

  • Lines 5a/5b: EIN (if any) and/or self-assigned reference ID number (alphanumeric, ≤50 characters, consistent across years).
  • Line 6: Address.
  • Line 7: Country code.
  • Line 8: Entity classification under foreign law.
  • Line 9: CFC status immediately after transfer.

Part III – Information Regarding Transfer of Property

Divided into three sections:

Section A – Cash

  • Line 10: Report total cash; skip rest of Part III if cash only.

Section B – Other Property (non-intangibles subject to 367(d))

  • Columns (a)–(e): Date of transfer, description, FMV, adjusted basis, gain recognized.
  • Special rules for stock/securities, built-in loss property, foreign branch assets (lines 11–12d, including section 91 transferred loss amount).

Section C – Intangible Property Subject to Section 367(d)

  • Columns (a)–(f): Date, detailed description (patents, copyrights, goodwill, etc.), useful life, arm’s-length price, basis, income inclusion for the year.
  • Lines 14c/14d: 20-year inclusion election (attach statement if elected).

Supplemental Part III Information
Required general description of the transaction, consideration received, and detailed explanations for GRAs, foreign branches (section 91), arm’s-length pricing, etc. Indicate the specific section/column/row referenced.

Part IV – Additional Information Regarding Transfer of Property

  • Line 17: Type of nonrecognition transaction (e.g., §351, §332, §355).
  • Lines 18a–18d: Various recapture or gain recognition triggers (attach statements).
  • Line 19: Entity classification change?
  • Lines 20a–20c: Section 332 liquidations (net recognized gain/loss, nonrecognition qualifications).
  • Line 21: Section 355 distributions involving foreign controlled corporations.

Special Considerations in 2026

  • Foreign branch transfers — Section 91 requires recognition of “transferred loss amount” for post-2017 losses when substantially all assets move to a foreign corporation.
  • Gain Recognition Agreements — Strict compliance required; Form 926 supplements the GRA.
  • TCJA impacts — Post-2017 rules for specified 10%-owned foreign corporations and branch loss recapture are fully embedded in the form.
  • No major form or instruction changes since 2018; continue using the November 2018 version.

Frequently Asked Questions (FAQs)

  • Do I need to file Form 926 for a small cash transfer?
    Only if the $100,000 12-month threshold or 10% ownership test is met.
  • Can I file electronically?
    Form 926 is attached to your e-filed return where supported.
  • What if the foreign corporation has no EIN?
    Use a self-assigned reference ID number.
  • Is Form 926 required for contributions to a foreign disregarded entity?
    It depends on whether the transfer is treated as to a foreign corporation under the rules.

Final Advice

Properly completing and filing IRS Form 926 is essential for avoiding penalties and maintaining compliance with U.S. international tax rules. The requirements are technical and fact-specific—especially for intangibles, GRAs, liquidations, and foreign branch transfers.

Action steps:

  1. Download the official form and instructions: Form 926 and Instructions.
  2. Review your transaction against the “Who Must File” and exceptions sections.
  3. Complete all parts accurately and attach required supplemental statements.
  4. Consult a tax advisor or international tax specialist familiar with sections 367 and 6038B.

Staying compliant protects you from penalties and keeps your tax filings current. For the most up-to-date information, always check IRS.gov or the latest Form 926 products.

This guide is based on IRS Instructions for Form 926 (Rev. November 2018) and irs.gov pages as of February 2026. Tax laws can change; verify with official sources or a professional.