Figure the partnership's effectively connected taxable income using the definition on page 2. Enter the total effectively connected taxable income allocable to foreign partners on line 4.

Partnership effectively connected taxable income on which a foreign partner is exempt from U.S. tax by a treaty or other reciprocal agreement is not allocable to that partner and is exempt from withholding under section 1446. However, this exemption from section 1446 withholding must be reported on Form 8805. See instructions for line 8b of Form 8805 on page 6.

Enter on line 6b the amount of section 1446 tax withheld by the subsidiary partnership (see Tiered Partnerships above). The amount withheld will be shown on line 10 of the Form 8805 the partnership receives from the subsidiary partnership. If the partnership receives a Form 1042-S from a subsidiary PTP, the amount withheld will be shown in box 7 of the Form 1042-S. (Box 1 of the Form 1042-S will show income code 27.)

Line 6c applies only to partnerships treated as foreign persons and subject to withholding under section 1445(a) or 1445(e)(1) upon the disposition of a U.S. real property interest.

Enter on line 6c the amount of tax withheld under section 1445(a) and shown on Form 8288-A, Statement of Withholding on Dispositions by Foreign Persons of U.S. Real Property Interests, for the tax year in which the partnership disposed of the U.S. real property interest.

Also enter on line 6c the amount of section 1445(e)(1) tax withheld on a distribution by a domestic trust to the partnership with respect to the disposition of a U.S. real property interest by the trust. The amount withheld will be shown in box 7 of the Form 1042-S the partnership receives from the trust. (Box 1 of the Form 1042-S will show income code 25 or 26.)

For both of the situations described above, do not enter more than the amount allocable to foreign partners (as defined in section 1446(e)). Enter amounts allocable to U.S. partners on line 13 of Schedules K and K-1 (Form 1065). For Form 1065-B, enter amounts on line 16 of Schedule K and in box 9 of Schedule K-1.

A partnership must pay the withholding tax for a foreign partner even if it does not have a U.S. TIN for that partner. See Taxpayer Identifying Number on page 1 for details on obtaining a U.S. TIN.

Check the box on this line if any of the partnership's effectively connected taxable income is treated as not allocable to the foreign partner identified on line 1a and therefore exempt from section 1446 withholding because the income is exempt from U.S. tax for that foreign partner by a treaty, reciprocal exemption, or a provision of the Internal Revenue Code.

A partnership without a U.S. EIN must obtain one and must pay any section 1446 withholding tax due. If the partnership has not received an EIN by the time it files Form 8813, indicate on line 1 of Form 8813 the date the partnership applied for its EIN. On receipt of its EIN, the partnership must immediately send that number to the IRS using the address as shown in Where To File on page 1 of these instructions.