CCH Axcess Tax

8865 Crossover Functionality

You can prepare 8865 in one return, and then access and file those from another return. Also, from one return you can access Forms 8865 from many other returns using your current return as a master or combined return for e-file or paper filing purposes. A Form 8865 prepared this way is called a “crossover 8865.”

A return accesses Forms 8865 in another return by using Foreign > 8865 Automated Feature worksheet . You can use this feature across five systems such as Partnership, S Corporation, Corporation, Individual, and Exempt Organization. The capability to send an 8865 from one system to another and file it, include both automated and non-automated 8865, We will call the top unit (filing entity) as 8865 reporting entity.

The additional 8865 level forms we included this year are 4797, 8825, 4562, Sch F, and 3468. These are 8865 versions of corresponding return level forms.

Cross over 8865 will read TS code to flag an 8865 for spouse or for taxpayer. For this reason, the TS code will not be limited to just 1040 return types. TS code is located under Foreign > 8865 worksheet > U.S Filer Information section, line 9 .

In a married filing joint 1040 return, when both taxpayer and spouse are partners in the same partnership, we default to the position that only one 8865 may be necessary with K1 for both taxpayer and spouse included considering attribution rules. However, if you take a different position and would like to attach two separate automated 8865s, you create two versions of the partnership return and flag one of those with a TS code of S. Then, link both versions to the 1040 return.

Electronic Filing Crossover 8865

Form 8865 created through crossover feature will be available for e-filing.

Additional forms 4797, 8825, 4562, Sch F, and 3468 behind Form 8865, will not be available for e-filing since the IRS has no schema for those. However, Form 8865 will still qualify for e-filing and transmit when these forms are present. Please note this exception is only for the 8865 version of these forms.

When you export the 8865 reporting entity return, only the top return will export. The crossover feature already includes 8865 with that return and in the e-file.

A standalone 8865 will not export since it can not be transmitted to IRS. Please see additional detail on 8865 automation under topic 8865 Automation using 1065 calculation.

Standalone 8865 is created when you select General, > Return Options section > line 20 titled Print options 1065, 1065-B, and 8865,select code 2 . 8865 stand alone could be used when Federal 1065 is not intended to be filed out of this return, but just the 1065 level calculation is to be used to generate 8865.