Form 926
Form 926 reports property transfers to foreign corporations by C corporations.
Deadline for this form has passed. Contact us if you've missed the deadline.
Purpose of Form 926
Form 926 is vital for C corporations as it facilitates reporting property transfers to foreign corporations.
It enables the IRS to monitor and track C corporations' investments in foreign entities, ensuring adherence to tax laws.
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Mandatory for
U.S. corporations acquiring 10% or more of a foreign corporation's voting power or value must file Form 926.
Penalties
The penalty amount is based on property value: $10,000 or 10%, whichever is higher.
Due date
Within 90 days of acquiring a substantial amount of stock or assets in a foreign corporation, a C Corporation must file Form 926.
FAQs
The same federal return every US C-Corp files. There is no Delaware-specific version of Form 1120.
What Delaware adds is franchise tax and an annual report, which are state obligations separate from the federal return. Companies often conflate the two and miss one of them.
A corporation incorporated in Delaware and taxed under subchapter C, meaning it pays tax at the entity level and can have unlimited shareholders, including foreign ones, across multiple stock classes.
It is the structure US investors expect. Our Delaware C-Corp guide covers what it involves.
Yes. It attaches to the corporate return and goes through IRS e-file with it.
Because it rides on the return, a late or amended 1120 carries the 926 with it. Confirm it was actually included rather than assuming. Our Form 926 guide.
It reports transfers of property, including cash above a threshold, from a US person to a foreign corporation.
Funding your Indian subsidiary from the US parent can trigger it. The penalty is a percentage of the transferred value, so it is worth checking before the wire goes out. Our Form 926 guide.
Every domestic C-Corp, every year, including companies with no revenue and no activity. Some other entities elect corporate treatment and file it too.
The zero-revenue case is the one founders get wrong. Our Form 1120 page covers who files and what the return needs.
Form 1040 is your personal return. Form 1120 is your company's corporate return, filed by the C-Corp as a separate taxpayer.
Owning a C-Corp does not merge the two. The company files its own return and pays its own tax, and you file personally on salary or dividends you receive.
Charitable organisations, social welfare organisations, social clubs, trade associations, labour organisations, veterans' organisations, and political organisations, among others the IRS lists.
Exempt status does not mean no filing. Most still submit an annual information return on Form 990 or one of its variants. More on US tax obligations.
You file an amended return correcting the error. Small arithmetic mistakes are often caught and adjusted by the IRS, which sends a notice rather than requiring an amendment.
Errors that change taxable income need fixing properly. Our Form 1120 page covers what the return requires.
Still have questions?
Reach out to our support team if you have any additional questions regarding filing.
