Consolidated Form 8992 for Tax Year 2019

 

Pursuant to Regulations section 1.1502-51(b), each member of a consolidated group who is a United States shareholder (“U.S. shareholder”) of any controlled foreign corporation (“CFC”) includes in gross income the member’s GILTI inclusion amount.  Regulations section 1.6038-5(a) generally provides that each United States person who is a U.S. shareholder of any CFC must make an annual return on Form 8992, U.S. Shareholder Calculation of Global Intangible Low-Taxed Income (GILTI).  Therefore, taxpayers that file a consolidated return may have to include more than one Form 8992 if more than one member of the consolidated group is a U.S. shareholder of a CFC.  However, the Modernized e-File Schema limits the number of Forms 8992 to two instances, and any returns that are e-filed and include more than two Forms 8992 will be rejected.

Consolidated filers with more than two Forms 8992

For tax years of foreign corporations beginning after December 31, 2018, and tax years of U.S. shareholders in which or with which such tax year of the foreign corporation ends, taxpayers required to file a consolidated return (“consolidated filers”) with more than one Form 8992 may file a single, consolidated Form 8992 (Rev. January 2020), following these instructions:
Form 8992, Part I, line 1: Enter the consolidated tested income.
Form 8992, Part I, line 2: Enter the consolidated tested loss.
Form 8992, Part II, line 2: Enter 10% of consolidated Qualified Business Asset Investment (QBAI).
Form 8992, Part II, line 3a: Enter the sum of each member’s pro rata share of the tested interest expense of each of its CFCs (i.e., the amount described in Regulations section 1.1502-51(e)(5)(i)).
Form 8992, Part II, line 3b: Enter the sum of each member’s pro rata share of the tested interest income of each of its CFCs (i.e., the amount described in Regulations section 1.1502-51(e)(5)(ii)).
Form 8992, Part II, line 3c: Enter the consolidated specified interest expense.  
Form 8992, Part II, line 5: Enter the sum of each member’s GILTI inclusion amount.
Form 8992, Schedule A: In lieu of following the instructions for consolidated groups included in the instructions to Form 8992, Schedule A, complete a single Schedule A that includes the CFCs owned by all members who are U.S. shareholders.  Enter the following information on Schedule A with respect to each CFC owned by a member that is a U.S. shareholder:

  • Enter the CFC’s name and EIN or reference ID in columns (a) and (b).
  • Enter the CFC’s tested income or tested loss in columns (c) and (d).  Also enter the totals for these columns on line 1.
  • Enter the member’s pro rata share of the tested income, tested loss, qualified business asset investment (“QBAI”), tested interest income, and tested interest expense of such CFC in columns (e), (f), (g), (i), and (j), respectively.  Also enter the totals for these columns on line 1.  
  • Enter the member’s pro rata share of the tested loss QBAI amount of such CFC in column (h).  Also enter the total for this column on line 1. 
  • Enter in column (k) the ratio of (i) the member’s pro rata share of the tested income of such CFC, to (ii) such member’s aggregate tested income (see Form 8992, Schedule A, column (k)).  Also enter the total for this column on line 1.
  • Enter in column (l) the product equal to (i) the ratio described immediately above, multiplied by (ii) such member’s GILTI inclusion amount (see Form 8992, Schedule A, column (l)).  Also enter the total for this column on line 1.


If two or more members own an interest in the same CFC, report each ownership interest on a separate line. 
Also attach a PDF file that shows the name and EIN of the U.S. shareholder who owns the CFC identified in columns (a) and (b) of each line of Schedule A.   Label this PDF as “F8992 Sch A, Associating U.S. Shareholder Name and EIN with CFC Information Provided on Schedule A.”
Additionally, provide in a PDF attached to the consolidated Form 8992 the following information for each member of the consolidated group who is a U.S. shareholder of any CFC.  Label this PDF as “F8992 Sch A, U.S. Shareholder-Level Calculations.”

  • Name and EIN of U.S. shareholder.
  • GILTI allocation ratio, as defined in Regulations section 1.1502-51(e)(10), for each U.S. shareholder.
  • Aggregate tested income.  For each U.S. shareholder, enter the sum of all amounts entered on Schedule A, column (e), for that U.S. shareholder.
  • Aggregate tested loss.  For each U.S. shareholder, enter the sum of all amounts entered on Schedule A, column (f), for that U.S. shareholder.
  • Allocable share of consolidated tested loss.  For each U.S. shareholder, multiply the GILTI allocation ratio for that shareholder by the consolidated tested loss.
  • Sum of pro rata shares of QBAI.  For each U.S. shareholder, enter the sum of all amounts entered on Schedule A, column (g), for that U.S. shareholder.
  • Allocable share of consolidated QBAI.  For each U.S. shareholder, multiply the GILTI allocation ratio for that shareholder by the consolidated QBAI.
  • Deemed tangible income return.  For each U.S. shareholder, enter 10% of the shareholder’s allocable share of consolidated QBAI.
  • Sum of pro rata shares of tested interest income.  For each U.S. shareholder, enter the sum of all amounts entered on Schedule A, column (i), for that U.S. shareholder.
  • Sum of pro rata shares of tested interest expense.  For each U.S. shareholder, enter the sum of all amounts entered on Schedule A, column (j), for that U.S. shareholder.
  • Allocable share of consolidated specified interest expense.  For each U.S. shareholder, multiply the GILTI allocation ratio for that shareholder by the consolidated specified interest expense.
  • GILTI inclusion amount.  For each U.S. shareholder, subtract the shareholder’s allocable share of consolidated tested loss from the shareholder’s aggregate tested income.  This is the shareholder’s net CFC tested income.  For each U.S. shareholder, multiply the shareholder’s allocable share of consolidated QBAI by 10%.  This is the shareholder’s deemed tangible income return.  Subtract the shareholder’s allocable share of consolidated specified interest expense from the shareholder’s deemed tangible income return.  This is the shareholder’s net deemed tangible income return.  Subtract the shareholder’s net deemed tangible income return from the shareholder’s net CFC tested income.  This is the shareholder’s GILTI inclusion amount.  


Taxpayers who are consolidated filers and have more than two Forms 8992 but choose not to file a consolidated Form 8992 should attach Forms 8992 in excess of two in PDFs attached to their return.  Label each of these PDF attachments as “Form8992” and also include the name of the U.S. shareholder.

Consolidated filers with one or two Forms 8992

Consolidated filers with one or two Forms 8992 should e-File their consolidated return and may include either a consolidated Form 8992 and PDF, following the instructions above, or a Form 8992 for each member.