Form 926 is the return a U.S. citizen, resident, domestic corporation, estate or trust files to report certain transfers of property to a foreign corporation. That includes cash: you report a cash transfer if you hold at least 10% of the foreign company right after it, or if you've put in more than $100,000 over the 12 months ending on the transfer date. It's attached to your income tax return for the year of the transfer.
Most people meet this form when they fund a company they've set up abroad, or put cash into a foreign startup. Everything below comes from the IRS Instructions for Form 926 and the form itself (both Rev. November 2018, the current revision), checked in October 2026.
When a cash transfer must be reported
Cash is where most individual filers come in, so it's worth getting this test right. You report a cash transfer to a foreign corporation if either of these is true:
| Test | Report the cash transfer if... |
|---|---|
| Ownership | Immediately after the transfer, you hold directly or indirectly at least 10% of the total voting power or total value of the foreign corporation |
| Amount | The cash you transferred to that foreign corporation in the 12 months ending on the date of the transfer is more than $100,000, as of October 2026 |
The amount test is a 12-month look-back ending on the date of each transfer, not a calendar year. So several smaller transfers spread across two calendar years can still add up to more than $100,000 inside one 12-month window and trigger the form, even if no single tax year saw that much.
Other transfers that need Form 926
- Transfers of property described in section 6038B(a)(1)(A), section 367(d) or section 367(e) to a foreign corporation.
- Transfers of stock or securities where you file a gain recognition agreement. The instructions say Form 926 is required in all cases where a GRA is filed.
- Transfers of intangible property. Since the 2017 tax law, intangibles include goodwill, going concern value and workforce in place, so moving a business into a foreign company usually counts.
The 2017 law also repealed the old active trade or business exception, so transfers of tangible property to a foreign corporation generally trigger full gain recognition under section 367(a)(1). That's a tax consequence, not just a reporting one, and it's the reason to plan a transfer before you make it.
Special rules on who files
| Situation | Who files |
|---|---|
| The transferor is a partnership (U.S. or foreign) | Each domestic partner, for their share of the property. The partnership itself doesn't file |
| Spouses make the transfer | They can file one Form 926 jointly, but only if they file a joint income tax return |
| Small stock transfers | A transferor who owned less than 5% of the foreign company afterwards may be excused in some reorganizations; see the Exceptions to Filing section |
How to fill it in
- Part I: your details. Line 1 asks whether the foreign company is a specified 10%-owned foreign corporation that isn't a controlled foreign corporation.
- Part II: the foreign corporation's name, identifying number and country.
- Part III: what you transferred. Section A is cash, Section B is other property, Section C is intangible property under section 367(d). If cash was the only thing transferred, skip the rest of Part III.
- Part IV: your interest in the foreign corporation before and after the transfer.
- Report everything in English and in U.S. dollars, as the instructions require.
- Attach the form to your income tax return for the year of the transfer.
If the foreign company you're funding is one you control, you'll likely also be filing Form 5471 for it, and if you hold foreign financial assets above the thresholds, Form 8938 may apply too. Form 926 doesn't replace either.
The penalty for not filing
If you fail to comply, the penalty is 10% of the fair market value of the property at the time of the transfer. It's capped at $100,000 unless the failure was due to intentional disregard, and it doesn't apply if you can show reasonable cause and no willful neglect, as of October 2026.
The part people miss is the statute of limitations. If you don't file, the period for the IRS to assess tax on that transfer is extended to 3 years after the date you finally provide the information. A missing Form 926 keeps that year open.
Common situations, and what usually applies
| Situation | What to check |
|---|---|
| You set up a company abroad and fund it with cash | You'll usually own 10% or more afterwards, so the cash transfer is reportable |
| You invest cash in a foreign startup for a small stake | Under 10% ownership, it's reportable only if your cash into that company over the 12 months to the transfer is more than $100,000 |
| You move an existing business, its customers or its brand into a foreign company | Intangible property rules under section 367(d) apply, and Section C of Part III is where it's reported |
| You transfer shares and sign a gain recognition agreement | Form 926 is required in every case where a GRA is filed |
| Your partnership makes the transfer | You, as a domestic partner, file for your share |
Keep a running log of every transfer to each foreign company, with the date and amount. It's the only way to answer the 12-month question accurately when the next transfer happens.
Foreign investment funds are a different trap, and our PFIC reporting guide covers them in plain terms.
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The verdict
If you're putting cash into a foreign company, run the two tests every time: will you own 10% or more afterwards, and have you put in more than $100,000 in the last 12 months? If either answer is yes, file Form 926 with that year's return. For anything beyond cash, especially a business or intangible property, get advice first, because the tax result can be bigger than the paperwork.
If the foreign business is a branch rather than a company, our guide to foreign branches explains the separate reporting.
Frequently asked questions
Who has to file Form 926?
A U.S. citizen or resident, a domestic corporation, or a domestic estate or trust that makes certain transfers of property, including cash, to a foreign corporation.
Do I need to file Form 926 for a cash transfer?
Yes if you hold at least 10% of the foreign corporation right after the transfer, or if you transferred more than $100,000 to it in the 12 months ending on the transfer date.
When is Form 926 due?
It's attached to your income tax return for the year of the transfer, so it's due when that return is due.
What is the penalty for not filing Form 926?
10% of the fair market value of the property at the time of transfer, limited to $100,000 unless the failure was due to intentional disregard.
Can married couples file one Form 926?
Yes, spouses can file Form 926 jointly, but only if they also file a joint income tax return.
Does a partnership file Form 926?
No. When a partnership transfers property, its domestic partners file Form 926 for their proportionate share.
