When does Form 5472 need a separate Part VIII for cost sharing?
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File a separate Part VIII for each qualifying cost sharing arrangement in which the reporting corporation was a controlled participant during the tax year. Enter the number of Parts VIII attached on line 1k.
What to check
The IRS instructions refer to the definitions in Treasury Regulation section 1.482-7. Part IV separately lists cost sharing transaction payments on lines 12 and 26, and platform contribution payments on lines 11 and 25. Review the arrangement-level information and transaction lines on their own terms.
Example
A reporting corporation was a controlled participant in two qualifying arrangements during the year. Its records should support two Parts VIII and a count of two on line 1k.
Before you proceed
- Identify the signed arrangements and participants.
- Check that each arrangement meets the regulatory definition.
- Match the attachments to the count on line 1k.
Does sharing an ordinary office expense trigger Part VIII?
First check whether the arrangement meets the section 1.482-7 definition and the company was a controlled participant.
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