Suppose a US taxpayer owns 1% of a foreign partnership to which they have contributed <$100k. Their ownership percentage didn't change during the tax year. Does the taxpayer still have to file Form 8865?
They don't own 50% (so they don't fit category 1), they don't own 10% (so they don't fit category 2), they don't own 10% and they contributed less than $100k (so they don't fit category 3), and there was no 10% acquisition/disposition/change in proportional interest (so they don't fit category 4). If they have to file Form 8865, which category do they report as/which schedules do they have to complete? If they don't have to file Form 8865, how do they report - just using the foreign K-1 with no EIN?
I am in a similar situation - would appreciate any feedback from the community on how to address this particular situation.
Found some information on the following website:
In-case anyone else is having this situation.