Instructions for IRS Form 8992 U.S. Shareholder Calculation of Global Intangible Low-Taxed Income (Gilti)

IRS Form 8992 U.S. Shareholder Calculation of Global Intangible Low-Taxed Income (Gilti)

This document contains official instructions for IRS Form 8992 , U.S. Shareholder Calculation of Global Intangible Low-Taxed Income (Gilti) - a tax form released and collected by the Internal Revenue Service (IRS), a subdivision of the U.S. Department of the Treasury. An up-to-date fillable IRS Form 8992 is available for download through this link.

FAQ

Q: What is Form 8992?
A: Form 8992 is used to calculate Global Intangible Low-Taxed Income (GILTI) for U.S. shareholders.

Q: Who needs to file Form 8992?
A: U.S. shareholders who own stock in a Controlled Foreign Corporation (CFC) need to file Form 8992.

Q: What is Global Intangible Low-Taxed Income (GILTI)?
A: GILTI is a category of income earned by U.S. shareholders from their ownership of stock in a CFC.

Q: How is GILTI calculated?
A: GILTI is calculated using a complex formula that takes into account certain deductions and a specified return on tangible assets.

Q: Why is Form 8992 important?
A: Form 8992 is important for U.S. shareholders to determine their GILTI liability and properly report their income to the IRS.

Q: Is Form 8992 the only form required for GILTI reporting?
A: No, in addition to Form 8992, U.S. shareholders may need to file Form 5471, Schedule H, and Schedule G to report their GILTI.

Q: When is the deadline to file Form 8992?
A: The deadline to file Form 8992 is typically the same as the taxpayer's income tax return due date, including extensions.

Q: Are there any penalties for not filing Form 8992?
A: Yes, failing to file Form 8992 or reporting incorrect information can result in penalties, including monetary fines.