This is archived information that pertains only to the 2006 Tax Year. If you
are looking for information for the current tax year, go to the Tax Prep Help Area.
Corporations making a section 965 election (defined below) must use these instructions to complete all portions of their tax
returns affected by
the election. These pages contain many instructions that supplement information provided in other tax forms and instructions
issued prior to this
instruction booklet.
For additional information, see Notice 2005-10, 2005-6 I.R.B. 474; Notice 2005-38, 2005-22 I.R.B. 1100; Notice 2005-64, 2005-36
I.R.B. (page number
not available at time of printing), and any subsequent guidance issued by the IRS and Treasury with respect to section 965.
A corporate U.S. shareholder of a controlled foreign corporation (CFC) uses Form 8895 to elect the 85% dividends received
deduction (DRD) provided
under section 965 (section 965 election) and to compute the DRD. The corporation may make the election for:
-
Its last tax year that begins before October 22, 2004, or
-
Its first tax year that begins during the one-year period beginning on October 22, 2004.
The corporation makes the section 965 election by attaching Form 8895 to its timely filed tax return (including extensions)
for such tax year.
However, a corporation that filed its return before Form 8895 was made available in final form need not file the form with
an amended return, but
should retain the information requested on the form to be made available to the IRS upon request.
See Notice 2005-10, Section 2, Notice 2005-38, Section 5, and Notice 2005-64, Section 3, for more information.
