Instructions for Form 8804-W

2026

Instructions for Form 8804-W

(WORKSHEET)

Installment Payments of Section 1446 Tax for Partnerships

Section references are to the Internal Revenue Code

unless otherwise noted.

Future Developments

For the latest information about developments related to

Form 8804-W and its instructions, such as legislation

enacted after they were published, go to IRS.gov/

Form8804W.

General Instructions

Purpose of Form

Partnerships that have effectively connected taxable

income (ECTI) allocable to foreign partners can use the

Form 8804-W (WORKSHEET) to determine the proper

estimated section 1446 tax payments.

Who Must Make Estimated Section

1446 Tax Payments

Partnerships must generally make installment payments of

estimated section 1446 tax if the aggregate tax on the

ECTI that is allocable to all foreign partners will be $500 or

more.

When To Make Estimated Section

1446 Tax Payments

The installments are due by the 15th day of the 4th, 6th,

9th, and 12th months of the partnership’s tax year. If any

date falls on a Saturday, Sunday, or legal holiday, the

installment is due on the next regular business day.

Underpayment of Estimated Section

1446 Tax

A partnership that doesn’t make estimated section 1446

tax payments when due may be subject to an

underpayment penalty for the period of underpayment.

See Schedule A (Form 8804) for details.

How To Make Estimated Section 1446

Tax Payments

A partnership that is required to make an installment

payment of section 1446 tax may submit payment by filing

Form 8813, Partnership Withholding Tax Payment

Voucher (Section 1446), with a check or money order, or

transmit payment through the Electronic Federal Tax

Payment System (EFTPS). If using EFTPS, Forms 8804

and 8805 must still be filed (and Form 8813, as

applicable). See instructions to Forms 8804 and 8804-C.

For more information on EFTPS, go to EFTPS.gov.

Oct 23, 2025

Furthermore, the partnership is generally required to

notify each foreign partner of the section 1446 tax paid on

the partner’s behalf within 10 days of the installment

payment due date or, if paid later, the date the installment

payment is made. See Regulations section 1.1446-3(d)(1)

(i) for information that must be included in the notification

and for exceptions to the notification requirement.

Refiguring Estimated Section 1446

Tax

If, after the partnership figures and makes an installment

payment of estimated section 1446 tax, it finds that its

section 1446 tax liability for the year will be more or less

than originally estimated, it may have to refigure its

required installments. If earlier installments were

underpaid, the partnership may owe a penalty for

underpayment of estimated tax. An immediate catch-up

payment should be made to reduce the amount of any

penalty resulting from the underpayment of any earlier

installments, whether caused by a change in estimate,

failure to make a payment, or a mistake.

Specific Instructions

Part I—Determination of Installment

Payments

Complete Form 8804-W for each installment payment of

section 1446 tax based on the information available at the

time of the installment payment.

Lines 1 Through 6—Current-Year Safe Harbor

Lines 1a, 1e, 1i, 1m, and 1q. To determine the allocable

share of ECTI for all foreign partners, see Effectively

Connected Taxable Income in the Instructions for Forms

8804, 8805, and 8813. Enter on lines 1i, 1m, and 1q the

specified types of ECTI allocable to those partners who

would be entitled to use a preferential rate on such income

or gain (see Regulations section 1.1446-3(a)(2)). For

tiered partnerships, see Regulations section 1.1446-5.

A partner may be entitled to use a preferential rate on

the following types of income or gain.

1. Line 1i—See section 1(h)(4) and the instructions for

Schedule D (Form 1040), line 18, for more information

regarding 28% rate gain.

2. Line 1m—See section 1(h)(6) and the instructions

for Schedule D (Form 1040), line 19, for more information

regarding unrecaptured section 1250 gain.

3. Line 1q—Adjusted net capital gain is net capital

gain, as defined in section 1222(11), reduced (but not

Instructions for Form 8804-W (2026) Catalog Number 51675X

Department of the Treasury Internal Revenue Service www.irs.gov

below zero) by the sum of (a) unrecaptured section 1250

gain, and (b) 28% rate gain, plus qualified dividend

income. See section 1(h)(3).

If the partnership has net ordinary loss, net short-term

capital loss, or net 28% rate loss, each net loss should be

netted against the appropriate categories of income and

gain to determine the amounts of income and gain to be

entered on lines 1a, 1e, 1i, 1m, and 1q, respectively. Don’t

enter a negative number on line 1a, 1e, 1i, 1m, or 1q. See

section 1(h) and Notice 97-59, 1997-45 I.R.B. 7, available

at IRS.gov/pub/irs-irbs/irb97-45.pdf, for rules for netting

gains and losses.

Lines 1b, 1f, 1j, 1n, and 1r. Enter the reduction amounts

for state and local taxes under Regulations section

1.1446-6(c)(1)(iii). See Reductions for State and Local

Taxes in the Instructions for Forms 8804, 8805, and 8813

for additional information. The netting rules under section

1(h) and Notice 97-59 must be considered in determining

the category of income the reduction amounts offset.

when determining any penalty due on Schedule A (Form

8804).

If the partnership begins using the prior-year safe

harbor method and it determines later in the tax year

(based upon the standard option annualization method,

described later in these instructions) that it won’t meet the

50% of ECTI requirement described in the last bulleted

item above, it can make all subsequent installment

payments using the standard option annualization method

and it won’t be subject to the penalty determined on

Schedule A (Form 8804). This change in method must be

disclosed in a statement attached to the Form 8804 filed

by the partnership for the current tax year. The statement

must include enough information to allow the IRS to

determine whether the change was appropriate.

Lines 1c, 1g, 1k, 1o, and 1s. Enter the reduction

amounts resulting from certified partner-level items

received from foreign partners using Form 8804-C,

Certificate of Partner-Level Items to Reduce Section 1446

Withholding. See Certification of Deductions and Losses

in the Instructions for Forms 8804, 8805, and 8813 for

additional information. The netting rules under section

1(h) and Notice 97-59 must be considered in determining

the category of income the reduction amounts offset.

If the partnership begins using the prior-year safe

harbor method and switches to the current-year safe

harbor (because the partnership doesn’t qualify for the

relief described in the previous paragraph (that is, using

the standard option annualization method) or the

partnership chooses not to continue using it), in order to

avoid an underpayment penalty on the current installment

payment, the partnership must pay the sum of (a) the

current installment payment based on the current year

safe harbor, plus (b) the sum of the amount by which the

current-year safe harbor exceeds the prior-year safe

harbor amount paid in for each prior installment period

during which it qualified for the prior-year safe harbor.

Line 8—Prior-Year Safe Harbor

Line 9

Enter the total section 1446 tax that would have been due

for 2025, applying the 2025 rates (see the 2025 Form

8804-W for the 2025 rates), on ECTI allocable to all

foreign partners for 2025, without any reductions for state

and local taxes under Regulations section 1.1446-6(c)(1)

(iii) or certified partner-level items. For the partnership’s

first installment payment, if the 2025 Form 8804 hasn’t yet

been filed, an estimate is acceptable. However, if the

partnership later determines that this estimate is incorrect,

see Refiguring Estimated Section 1446 Tax, earlier.

Complete line 8 only if all of the following apply.

• The prior tax year consisted of 12 months.

• The partnership timely files (including extensions) a

U.S. return of partnership income (for example, Form

1065) for the prior year.

• The amount of ECTI for the prior tax year is not less

than 50% of the ECTI expected for the current tax year.

Furthermore, the Form 8804 on which the current-year

ECTI will be reported must be timely filed.

If any of the above doesn’t apply, skip line 8 and enter

the amount from line 7 on line 9.

If the partnership qualifies to use the prior-year safe

harbor and chooses that method, it must use that method

to pay each of its installments during the tax year.

Furthermore, for each installment payment, the average of

that installment and prior installments during the tax year

must be at least 25% of the amount that satisfies the

partnership’s section 1446 tax liability under the prior-year

safe harbor. If the partnership doesn’t satisfy both of these

requirements, it won’t qualify for the prior-year safe harbor

2

Enter the smaller of line 7 or line 8. However, if, for any

installment payment, line 7 is smaller than line 8 and you

enter that smaller line 7 amount on line 9, you won’t qualify

for the prior-year safe harbor when determining any

penalty due on Schedule A (Form 8804) (see the line 8

instructions, earlier). Therefore, in that case, for any

subsequent installment payment during the tax year, don’t

use the line 8 amount.

Line 10—Installment Due Dates

Calendar-year taxpayers. Enter the 15th day of the 4th,

6th, 9th, and 12th months for the partnership’s calendar

year in columns (a) through (d). If the regular due date

falls on a Saturday, Sunday, or legal holiday, enter the next

business day.

Fiscal-year taxpayers. Enter the 15th day of the 4th, 6th,

9th, and 12th months of the partnership’s tax year in

columns (a) through (d). If the regular due date falls on a

Saturday, Sunday, or legal holiday, enter the next business

day.

Line 11

Enter 25% (0.25) of line 9 in columns (a) through (d). If the

partnership uses the annualized income installment

method or the adjusted seasonal installment method, then

enter the amount from line 43.

Annualized income installment method and/or adjusted seasonal installment method. If the partnership’s

ECTI is expected to vary during the year because, for

example, it operates its business on a seasonal basis, it

may be able to lower the amount of one or more required

Instructions for Form 8804-W (2026)

installments by using the annualized income installment

method and/or the adjusted seasonal installment method.

For example, a ski shop, which receives most of its

income during the winter months, may be able to benefit

from using one or both of these methods in figuring one or

more of its required installments.

To use one or both of these methods, complete Part II

and/or Part III of the form. If those Parts are used for any

payment date, those Parts must be used for all

subsequent payment due dates. To arrive at the amount of

each required installment, Part IV automatically selects

the smallest of (a) the annualized income installment (if

applicable), (b) the adjusted seasonal installment (if

applicable), or (c) the current-year safe harbor (increased

by any recapture of a reduction in a required installment

under section 6655(e)(1)(B)).

Line 12

Include on line 12 any 2025 overpayment that the

partnership chose to credit against its 2026 tax. The

overpayment is credited against unpaid required

installments in the order in which the installments are

required to be paid.

Also, include on line 12 the following.

• Section 1446 tax withheld and paid by another

partnership because the partnership preparing this Form

8804-W was a partner in that partnership during the tax

year. See the instructions for Form 8804, line 6b and

line 6c, in the Instructions for Forms 8804, 8805, and

8813.

• Section 1445(a) or 1445(e)(1) tax withheld from or paid

by the partnership filing Form 8804-W during the tax year

for a disposition of a U.S. real property interest. See the

instructions for Form 8804, line 6d and line 6e, in the

Instructions for Forms 8804, 8805, and 8813.

• Section 1446(f)(1) tax withheld from the partnership

filing Form 8804-W during the tax year for a disposition of

an interest in a partnership engaged in the conduct of a

U.S. trade or business. See the instructions for Form

8804, lines 6f and 6g, in the Instructions for Forms 8804,

8805, and 8813.

The partnership generally enters these amounts in the

column that corresponds to the installment period for

which these amounts were paid or withheld. However, if

the partnership learns about the payments or withholding

in a subsequent installment period, the partnership can

claim them in that period.

Parts II Through IV

If only the adjusted seasonal installment method (Part II) is

used, complete Parts II and IV. If only the annualized

income installment method (Part III) is used, complete

Parts III and IV. If both methods are used, complete all

three Parts. Enter in each column on line 11 the amounts

from the corresponding column of line 43.

Caution: Don’t figure any required installment until after

the end of the month preceding the due date for that

installment.

Extraordinary items. Generally, under the annualized

income installment method, extraordinary items must be

taken into account after annualizing the ECTI for the

Instructions for Form 8804-W (2026)

annualization period. Similar rules apply in determining

ECTI under the adjusted seasonal installment method. An

extraordinary item includes:

• Any item identified in Regulations section 1.1502-76(b)

(2)(ii)(C)(1), (2), (3), (4), (7), and (8);

• A section 481(a) adjustment; and

• Net gain or loss from the disposition of 25% or more of

the fair market value of the partnership’s business assets

during the tax year.

These extraordinary items must be accounted for in the

appropriate annualization period. However, a section

481(a) adjustment (unless the partnership makes the

alternative choice under Regulations section 1.6655-2(f)

(3)(ii)(C)) is treated as an extraordinary item occurring on

the first day of the tax year in which the item is taken into

account in determining ECTI.

For more information regarding extraordinary items,

see Regulations section 1.6655-2(f)(3)(ii) and the

examples in Regulations section 1.6655-2(f)(3)(vii). Also,

see Regulations section 1.6655-3(d)(3).

De minimis rule. Extraordinary items identified above

resulting from a particular transaction that total less than

$1 million (other than a section 481(a) adjustment) can be

annualized using the general rules of Regulations section

1.6655-2(f) or, if the partnership chooses, can be taken

into account after annualizing the ECTI for the

annualization period.

Part II—Adjusted Seasonal

Installment Method

Note: Part II doesn’t reflect the lower preferential rates

permitted under Regulations section 1.1446-3(a)(2).

These were omitted because, for most taxpayers, the

income reported in Part II will be predominantly (or

exclusively) ordinary income. If the partnership wishes to

consider lower preferential rates for Part II (and if the

requirements outlined in the Note in the line 31

instructions are met), it should prepare a statement that

appropriately expands lines 15 and 22 through 25 to show

the applicable special types of income or gain and the

applicable percentages (see, for example, lines 33 and 34

of this Form 8804-W). Also, Part II, lines 15 and 22

through 25, don’t provide the separate entries for

corporate and non-corporate partners necessary to apply

the rates on lines 25a and 25b. A partnership with

corporate and non-corporate partners completing Part II

should prepare a statement that appropriately expands

lines 15 and 22 through 25 to show the amounts allocable

to both types of partners.

Complete this part only if the partnership’s base period

percentage for any 6 consecutive months of the tax year

equals or exceeds 70%. Figure the base period

percentage using the 6-month period in which the

partnership normally receives the largest part of its ECTI.

The base period percentage for any period of 6

consecutive months is the average of the three

percentages figured by dividing the ECTI for the

corresponding 6-consecutive-month period in each of the

3 preceding tax years by the ECTI for each of their

respective tax years.

3

Example. An amusement park with a calendar year as

its tax year receives the largest part of its ECTI during a

6-month period, May through October. To figure its base

period percentage for this 6-month period, the amusement

park figures its ECTI for each May–October period in

2023, 2024, and 2025. It then divides the ECTI for each

May–October period by the total ECTI for that particular

tax year. The resulting percentages are 69% (0.69) for

May–October 2023, 74% (0.74) for May–October 2024,

and 67% (0.67) for May–October 2025. Because the

average of 69% (0.69), 74% (0.74), and 67% (0.67) is

70% (0.70), the base period percentage for May–October

2026 is 70% (0.70). Therefore, the amusement park

qualifies for the adjusted seasonal installment method.

Line 15

If the partnership has certain extraordinary items, special

rules apply. Don’t include on line 15 the de minimis

extraordinary items that the partnership chooses to

include on line 22b. See Extraordinary items, earlier.

Line 22b

If the partnership has certain extraordinary items of $1

million or more from a transaction, or a section 481(a)

adjustment, special rules apply. Include these amounts on

line 22b for the appropriate period. Also, include on

line 22b the de minimis extraordinary items that the

partnership chooses to exclude from line 15. See

Extraordinary items, earlier.

Line 23

Enter the reduction to the line 22c amount for state and

local taxes under Regulations section 1.1446-6(c)(1)(iii)

and for certified foreign partner-level items submitted

under Regulations section 1.1446-6. See Certification of

Deductions and Losses in the Instructions for Forms 8804,

8805, and 8813 for additional information.

Part III—Annualized Income

Installment Method

Line 30—Annualization Periods

Enter in the space on line 30, columns (a) through (d),

respectively, the annualization periods that the partnership

is using, based on the options listed below. For example, if

the partnership elects Option 1, enter on line 30 the

annualization periods 2, 4, 7, and 10, in columns (a)

through (d), respectively.

Caution: Use Option 1 or Option 2 only if the partnership

elected to use one of these options by filing Form 8842,

Election To Use Different Annualization Periods for

Corporate Estimated Tax, on or before the due date of the

first required installment payment. Once made, the

election is irrevocable for the particular tax year.

1st Installment

2nd Installment

3rd Installment

Standard

Option

3

3

6

9

Option 1

2

4

7

10

Option 2

3

5

8

11

4

Line 31—ECTI Allocable to All Foreign Partners

Enter on lines 31a through 31e the ECTI allocable to all

foreign partners for the months entered for each

annualization period in columns (a) through (d) on line 30.

To determine the allocable share of ECTI for all foreign

partners, see Effectively Connected Taxable Income in the

Instructions for Forms 8804, 8805, and 8813.

If the partnership has certain extraordinary items,

special rules apply. Don’t include on line 31a, 31b, 31c,

31d, or 31e the de minimis extraordinary items that the

partnership chooses to include on line 33a, 33e, 33i, 33m,

or 33q, respectively. See Extraordinary items, earlier.

Note: Enter on lines 31c through 31e the specified types

of ECTI (a) allocable to those partners who would be

entitled to use a preferential rate on such income or gain

(see Regulations section 1.1446-3(a)(2)), and (b) for

whom the partnership has sufficient documentation to

meet the requirements of Regulations section 1.1446-3(a)

(2)(ii).

A partner may be entitled to use a preferential rate on

the following types of income or gain.

1. Line 31c—See section 1(h)(4) and the instructions

for Schedule D (Form 1040), line 18, for more information

regarding 28% rate gain.

2. Line 31d—See section 1(h)(6) and the instructions

for Schedule D (Form 1040), line 19, for more information

regarding unrecaptured section 1250 gain.

3. Line 31e—Adjusted net capital gain is net capital

gain, as defined in section 1222(11), reduced (but not

below zero) by the sum of (a) unrecaptured section 1250

gain, and (b) 28% rate gain, plus qualified dividend

income. See section 1(h)(3).

If the partnership has net ordinary loss, net short-term

capital loss, or net 28% rate loss, each net loss should be

netted against the appropriate categories of income and

gain to determine the amounts of income and gain to be

entered on lines 31a through 31e, respectively. Don’t enter

a negative number on lines 31a through 31e. See section

1(h) and Notice 97-59 for rules for netting gains and

losses.

Line 32—Annualization Amounts

Enter the annualization amounts for the option used on

line 30. For example, if the partnership elects Option 1,

enter on line 32 the annualization amounts 6, 3, 1.71429,

and 1.2 in columns (a) through (d), respectively.

1st Installment

2nd Installment

3rd Installment

4th Installment

Standard

Option

4

4

2

1.33333

Option 1

6

3

1.71429

1.2

Option 2

4

2.4

1.5

1.09091

4th Installment

Lines 33a, 33e, 33i, 33m, and 33q

If the partnership has certain extraordinary items that total

$1 million or more from a particular transaction, or a

section 481(a) adjustment, special rules apply. Include

these amounts on line 33a, 33e, 33i, 33m, or 33q,

Instructions for Form 8804-W (2026)

depending upon the type of income against which the item

applies, for the appropriate period. Also, include on

line 33a, 33e, 33i, 33m, or 33q the de minimis

extraordinary items that the partnership chooses to

exclude from line 31a, 31b, 31c, 31d, or 31e, respectively.

See Extraordinary items, earlier.

Enter on lines 33i, 33m, and 33q the specified types of

ECTI if the partner would be entitled to use a preferential

rate on the income or gain (see Regulations section

1.1446-3(a)(2)).

1. Line 33i—See section 1(h)(4) and the instructions

for Schedule D (Form 1040), line 18, for more information

regarding 28% rate gain.

2. Line 33m—See section 1(h)(6) and the instructions

for Schedule D (Form 1040), line 19, for more information

regarding unrecaptured section 1250 gain.

3. Line 33q—Adjusted net capital gain is net capital

gain, as defined in section 1222(11), reduced (but not

below zero) by the sum of (a) unrecaptured section 1250

gain, and (b) 28% rate gain, plus qualified dividend

income. See section 1(h)(3).

Lines 33b, 33f, 33j, 33n, and 33r

Enter the reduction amounts for state and local taxes

under Regulations section 1.1446-6(c)(1)(iii). See

Reductions for State and Local Taxes in the Instructions

for Forms 8804, 8805, and 8813 for additional information.

The netting rules under section 1(h) and Notice 97-59

must be considered in determining the category of income

the reduction amounts offset.

Lines 33c, 33g, 33k, 33o, and 33s

Enter the reduction amounts resulting from certified

partner-level items received from foreign partners using

Form 8804-C. See Certification of Deductions and Losses

in the Instructions for Forms 8804, 8805, and 8813 for

additional information. The netting rules under section

1(h) and Notice 97-59 must be considered in determining

the category of income the reduction amounts offset.

Part IV—Required Installments Under

Part II and/or Part III

Line 38

Before completing line 38 in columns (b) through (d),

complete lines 39 through 43 in each of the preceding

columns. For example, complete lines 39 through 43 in

column (a) before completing line 38 in column (b).

Line 43—Required Installments

For each installment, enter the smaller of line 39 or line 42

on line 43. Also, enter the result on line 11.

Paperwork Reduction Act Notice. Your use of this form is optional. It is provided to aid the partnership in determining

its tax liability.

You aren’t required to provide the information requested on a form that is subject to the Paperwork Reduction Act

unless the form displays a valid OMB control number. Books or records relating to a form or its instructions must be

retained as long as their contents may become material in the administration of any Internal Revenue law. Generally, tax

returns and return information are confidential, as required by section 6103.

The time needed to complete and file this form will vary depending on individual circumstances. The estimated burden

for business taxpayers filing this form is approved under OMB control number 1545-0123.

If you have comments concerning the accuracy of these time estimates or suggestions for making this form simpler,

we’d be happy to hear from you. You can send us comments through IRS.gov/FormComments. Or, you can write to the

Internal Revenue Service, Tax Forms and Publications, 1111 Constitution Ave. NW, IR-6526, Washington, DC 20224.

Don’t send the tax form to this office. Instead, keep the form for your records.

Instructions for Form 8804-W (2026)

5