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Form 965C: Transfer Agreement Under Section 965(h)(3)
IRS Form 965-C is a Transfer Agreement Under Section 965(h)(3) used to document an agreement between eligible taxpayers. It must be filed within 30 days of the covered acceleration event.
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IRS Form 965C - Transfer Agreement Under Section 965(h)(3)
IRS Form 965-C is a Transfer Agreement Under Section 965(h)(3) used to document an agreement between eligible taxpayers. It must be filed within 30 days of the covered acceleration event.
Risk Radar
Scan points- 1Failure to check 'Yes' on Line 6 (Part V) means the transferee does not meet requirements for a valid transfer agreement.
- 2Filing without the complete legal name for either the transferor or transferee in Part I/Part II.
- 3Not checking 'Yes' on Line 6 (Part V) to confirm ability to pay remaining liability.
- 4Failing to sign Part VI by an authorized representative of the eligible section 965(h) transferor.
- 5Omitting the required Taxpayer identification number from either Part I or Part II.
Plain English
This form creates a formal contract between two parties when one transfers ownership of certain foreign income to another party under IRS rules. By filing Form 965-C, both the transferor and transferee confirm they meet the necessary legal requirements for this agreement. Properly completing and filing this document means they are considered to have entered into a valid transfer agreement.
Submission Date
- Filing date: 2020-01-28 22:13:27
- Preparation window: collect IDs, supporting records, and signatures in advance.
- Final review: verify names, dates, and required fields before submission.
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Glossary Terms
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What this form is for
- Use this form when an eligible section 965(h) transferor and an eligible section 965(h) transferee enter into a transfer agreement under section 965(h)(3).
- Do not use this form if the taxpayers are not eligible section 965(h) transferor or eligible section 965(h) transferee with respect to a covered acceleration event.
- Check Regulations section 1.965-7(g)(10) for rules on computing the net 965 tax liability.
Form selector
Use this form or another form?
Taxpayers receiving income from foreign corporations
To document the transfer agreement under Section 965(h)(3) following a covered acceleration event.
✓ Check Part I and Part II for entity details
Entities requiring an installment payment assumption
To record the transferee's commitment to annual installments for the section 965(h) net tax liability assumed.
✓ Check Line 5 in Part V
Taxpayers whose agreement must be signed corporately
If either party is a corporation, the signing must include the corporate name followed by the officer's signature and title.
✓ Check Signatures section on Page 2
Deadline or filing window
The filing window begins with a covered acceleration event. The original Form 965-C must be mailed within 30 days of that event. If the net tax liability changes later, an amended transfer agreement is not required and should not be filed.
Checklist
What you need before filling it out
Transfer Agreement
Completion of Form 965-C · Part I & II
Next Installment Payment Due Date
Specific date entered by the transferee · Line 5 (Part V)
Transferee Ability To Pay
Check box on Line 6 (Part V) · Part V
Leverage Ratio Exceeds Three to One
Check box on Line 7 (Part V) · Part V
Transferor Authority
Signature in Part VI · Signer's declaration section
Transferee Authority
Signature in Part VI · Transferee signature block
Before you submit
- 1Verify that both the eligible section 965(h) transferor and eligible section 965(h) transferee have completed Form 965-C.
- 2Confirm the form is dated December 2019 (or later).
- 3Enter the specific date the next installment payment is due by the transferee on Line 5.
- 4Check the 'Yes' box on Line 6 if the eligible section 965(h) transferee can make the remaining payments.
- 5Check the 'Yes' box on Line 7 if the leverage ratio of the eligible section 965(h) transferee exceeds three to one.
- 6Ensure the transferor signature in Part VI is authorized for the entity listed in Part I.
- 7Confirm that under penalties of perjury, all declarations regarding Parts I, III, and IV (Transferor) are true.
How to file this form
- 1Complete Part I by entering the eligible section 965(h) transferor's information.
- 2Complete Part II by entering the eligible section 965(h) transferee's information.
- 3Fill out Parts III and IV (not detailed in this summary but required) and complete all sections of Part V, including checking Line 6 and Line 7.
- 4Sign and date Part VI, ensuring corporate names are included if applicable for both the transferor and transferee.
- 5Mail the original Form 965-C to IRS’s Memphis Compliance Service Collection Operations within 30 days of the covered acceleration event.
Known limitations
- 1Form 965-C must be used by an eligible section 965(h) transferor and an eligible section 965(h) transferee to enter into a transfer agreement under section 965(h)(3).
- 2The form is required specifically with respect to a covered acceleration event.
- 3If the section 965(h) net tax liability is adjusted or changed on an amended return after the due date for filing the transfer agreement, an amended transfer agreement is not required and should not be filed.
Field map
Compact field-by-field guide
General Info
2 items
Full legal name and taxpayer identification number (SSN or EIN).
Current mailing address.
Details
2 items
Complete all applicable sections of this form according to the official IRS instructions.
Enter the relevant dollar amount if this form involves tax calculation.
Certification
1 items
Read and acknowledge any certifications required by this form.
Signatures
1 items
Sign and date. Unsigned forms cannot be processed.
Almost done reviewing the fields?
Fillable formOpen in Editor->The current edition is December 2019, and instructions direct users to IRS.gov/Form965C for the latest information regarding developments related to Form 965-C.
What changed or needs a fresh check
- Edition date — confirm the revision date reads December 2019.
- Form number — confirm the form is Form 965-C.
- Mailing address — confirm the original must be mailed to IRS’s Memphis Compliance Service Collection Operations.
- Signature — confirm both transferor and transferee signatures are present in Part VI.
Quick Facts
Downloads
After you file
- 1Keep a copy of Form 965-C.
- 2The original Form 965-C must be mailed to the IRS’s Memphis Compliance Service Collection Operations within 30 days of the covered acceleration event.
- 3If the eligible section 965(h) transferee checks 'No' on Line 6 (Part V), they do not meet the requirements for a valid transfer agreement.
- 4The eligible section 965(h) transferee must make an annual installment payment for the assumed net tax liability by the due date of their income tax return.
Sources
- SRCInstructions p.1 — The purpose of Form 965-C is for an eligible section 965(h) transferor and transferee to enter into a transfer agreement under section 965(h)(3).
- SRCInstructions p.1 — Filing deadline: Within 30 days of the covered acceleration event, mail the original Form 965-C to IRS’s Memphis Compliance Service Collection Operations.
- SRCInstructions p.2 — Line 5 requires entering the date the next installment payment is due by the transferee.
- SRCInstructions p.1 — Part I (Transferor) requires the complete legal name, taxpayer identification number, and street address or post office box.
- SRCInstructions p.2 — Line 6 confirms if the eligible section 965(h) transferee can make the remaining payments required under section 965(h).
- SRCForm p.1 — The form is titled Transfer Agreement Under Section 965(h)(3) and has an OMB No. of 1545-0123.
- SRCInstructions p.1 — If the net tax liability is adjusted on an amended return after the due date, an amended transfer agreement should not be filed.
Common confusion points
Who needs to file Form 965-C?
The eligible section 965(h) transferor and the eligible section 965(h) transferee must both file it.
When is the deadline for filing?
Within 30 days of the covered acceleration event, the original Form 965-C must be mailed to the IRS’s Memphis Compliance Service Collection Operations.
What if my tax liability changes later?
If the net tax liability is adjusted on an amended return after the due date, do not file an amended transfer agreement; simply make the adjustment on the return.
Does the transferee have to pay annually?
Yes, the eligible section 965(h) transferee must make an annual installment payment for the assumed section 965(h) net tax liability by their income tax return due date.
When checking Part V, what does 'leverage ratio exceeds three to one' mean?
This is a specific condition checked on Line 7; check 'Yes' if the eligible section 965(h) transferee’s leverage ratio is greater than 3:1.
What information must be provided for each party?
Part I requires the transferor's legal name, TIN, and address. Part II requires the transferee's legal name, TIN, and address.
Workflow map
Related forms and next steps
Before
Current
After
Often used with
⚠ If something goes wrong
- An amended Form 965-C is not required if the liability changes, but the return itself must be amended.
Questions about IRS Form 965C
What is IRS Form 965C used for?
This form creates a formal contract between two parties when one transfers ownership of certain foreign income to another party under IRS rules. By filing Form 965-C, both the transferor and transferee confirm they meet the necessary legal requirements for this agreement. Properly completing and filing this document means they are considered to have entered into a valid transfer agreement.
Who must file IRS Form 965C?
The eligible section 965(h) transferor and the eligible section 965(h) transferee must file Form 965-C with respect to a covered acceleration event.
What information does IRS Form 965C require?
Part I provides identifying information for the transferor, while Part II details the transferee's name and address. The form also collects specific data on payment ability (Parts V) and agreement terms (Part VI).
When is IRS Form 965C due?
The original Form 965-C must be mailed within 30 days of the covered acceleration event.
Where do I file IRS Form 965C?
The original Form 965-C must be mailed to the IRS’s Memphis Compliance Service Collection Operations. If the net tax liability is adjusted on an amended return after the due date, an amended agreement is not required and should not be filed.
How do I complete IRS Form 965C?
First, the eligible section 965(h) transferor fills out Part I and the transferee completes Part II. Next, the parties complete Parts III (not fully detailed here), IV, and V to confirm payment ability. Finally, both sign in Part VI, declaring under penalties of perjury that they have examined the form.
What happens if IRS Form 965C is filed incorrectly?
If the eligible section 965(h) transferor and transferee do not properly complete and file Form 965-C with respect to a covered acceleration event, they will not be considered to have entered into a proper transfer agreement under section 965(h)(3).
Who needs to file Form 965-C?
The eligible section 965(h) transferor and the eligible section 965(h) transferee must both file it.
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