What is the IRS Form 926?
Updated on February 06, 2026
Published by
Table of Contents
IRS Form 926 Explained: When It’s Required for US Expats
If you’re moving assets, setting up a business overseas, or shifting ownership of assets into a foreign company, this form deserves a closer look. Catching it early is far easier than fixing it later.
At a high level, Form 926 is about reporting, not paying tax. It’s used when a US person transfers property to a foreign corporation. Many expats trigger it while starting a business overseas, funding a foreign startup, or moving assets out of the US as part of a restructuring.
What is IRS Form 926?
IRS Form 926 is an information return used to report specific types of property transfers from a US person to a foreign corporation, such as capital contributions or asset transfers into a foreign company. The form exists under Internal Revenue Code section 6038B.
Inside the form, you’ll find sections that ask for:
- Details about the US transferor: Your name, address, and taxpayer identification number
- Details about the foreign corporation: The company’s name, country of incorporation, and basic identifying information
- Description of the property transferred: What was transferred (cash, assets, intellectual property, shares, or business assets)
- Fair market value and transfer date: The value of the property at the time of transfer and when it occurred
- Ownership after the transfer: How much of the foreign corporation you owned immediately after the transaction
- Type of transaction: Whether the transfer was part of a capital contribution, reorganization, or another non-recognition event
Form 926 does not calculate tax. It does not create a payment by itself. Instead, it documents what was transferred, when it happened, and what the US person owns afterward. That information is used by the IRS to track offshore ownership and to monitor whether taxes may apply later, even if no tax is due at the time of the transfer.
Who needs to file IRS Form 926?
US citizens and green card holders who transfer property to a foreign corporation generally need to file Form 926. Living abroad does not change your status as a US taxpayer. If you are a US person and you contribute property to a non-US company, Form 926 may apply regardless of where you live.
In practice, expats commonly encounter Form 926 when they:
- Set up a company outside the US
- Inject capital into an existing foreign company
- Transfer assets or intellectual property to an overseas business
- Reorganize a business structure involving a foreign entity
Many people assume these are local or foreign transactions. From the IRS’s perspective, they are still cross-border events involving a US person.
What types of property are included in IRS Form 926?
The IRS defines “property” broadly. It includes far more than physical assets. This is where most misunderstandings happen, so it helps to see it laid out clearly.
Property types covered by IRS Form 926 in 2026
|
Type of property |
Included in Form 926? |
Common expat examples |
What this usually triggers |
|
Cash |
Yes |
Funding a foreign company |
Filing is required once transfers exceed US$100,000 or you own 10%+ right after the transfer |
|
Tangible property |
Yes |
Overseas real estate, equipment |
Property must be valued and reported |
|
Intangible property |
Yes (high scrutiny) |
Software, trademarks, goodwill |
Often reviewed closely by the IRS |
|
Securities or shares |
Yes |
Transferring stock to a foreign entity |
Filing depends on ownership percentage |
|
Business assets |
Yes |
Moving an operating business abroad |
Often involves multiple reporting forms |
Cash is explicitly included. So are intangible assets like software, brand value, or customer lists. In fact, intangible property is one of the areas the IRS watches most closely.
Note: There is a common misconception that “no cash” means “no filing.” However, Form 926 can still apply when you transfer non-cash property, like shares, equipment, or intellectual property, to a foreign corporation under the IRS rules.
Not sure how to file Form 926?
Let us help.
When is IRS Form 926 required?
Form 926 is required when a US person transfers property to a foreign corporation in a type of transfer that the IRS requires to be reported. These rules are set out in the tax law, but you don’t need to know the code sections to understand when filing is required.
For cash transfers, you must report the transfer if either:
- You own at least 10% of the foreign corporation immediately after the transfer, or
- Your cash transfers to that corporation exceed US$100,000 during the 12-month period ending on the transfer date.
What surprises many expats is that profit doesn’t matter here. You can transfer assets at cost. You can complete a tax-free restructuring. You can receive nothing in return. Form 926 may still be required.
When IRS Form 926 is not required
Not every cross-border transfer triggers Form 926. Situations where the form is generally not required include:
- Small cash transfers that stay below reporting thresholds
- Transfers that do not involve a foreign corporation
- Certain personal-use situations in which assets are not contributed to or used by a foreign corporation may fall outside the reporting rules.
That said, the line between “personal” and “corporate” can blur quickly when businesses are involved. If a foreign company is in the picture, assumptions tend to break down.
When in doubt, this is one of those forms where asking early beats fixing it later.
Common IRS Form 926 scenarios for US expats
If you’re building or funding something overseas, Form 926 often comes along for the ride. Here are the situations where expats most often run into it.
Common expat scenarios
|
Situation |
Form 926 required? |
Reason |
|
Starting a foreign company |
Yes |
Property contribution |
|
Funding a foreign startup |
Often yes (depends on amount transferred and ownership after funding) |
Cash threshold applies |
|
Transferring IP overseas |
Yes |
Intangible property rules |
|
Tax-free reorganization |
Yes |
Reporting still required |
|
No money exchanged |
Possibly |
Fair market value still counts |
How IRS Form 926 is filed
Here’s a step-by-step guide to file IRS Form 926 for the 2025 tax year (filed in 2026), based on IRS guidance:
- Gather the details you’ll need:
- Your info (name, address, SSN/ITIN/EIN)
- The foreign corporation’s info (name, country of incorporation, address)
- Date of transfer
- What you transferred (cash, equipment, shares, IP, etc.)
- Fair market value of what you transferred on the transfer date
- What you received in return (if anything)
- Your ownership percentage after the transfer
- Download the current Form 926 and instructions from the IRS
-
The form and instructions are in PDF format, available on the official website.
-
- Fill out the form and add any required statements
- Some situations require extra statements attached to your return (the Form 926 instructions call these out for specific lines/transactions). If a line asks for a statement, treat that as mandatory documentation because missing statements are treated as incomplete filings
- Attach Form 926 to your 2025 US income tax return
- Form 926 is not filed on its own. Instead, it is submitted together with your regular US tax return for the year in which the transfer happened.
For example, if you transferred property to a foreign company at any point in 2025, Form 926 is filed with your 2025 US tax return, which is filed in 2026.
- Form 926 is not filed on its own. Instead, it is submitted together with your regular US tax return for the year in which the transfer happened.
Note: Because it ties into ownership and asset reporting, Form 926 often appears alongside other international forms. That’s normal. It’s part of a larger set of IRS reporting requirements that document foreign ownership and asset transfers, rather than a standalone form.
When to file Form 926
For most individual taxpayers:
- The standard filing deadline for a 2025 tax return is April 15, 2026.
- If you live outside the US, you automatically receive an extension to June 15, 2026, although interest can still apply.
- If you file a further extension, the final deadline moves to October 15, 2026.
Form 926 follows the same deadline as your tax return, including any extensions you claim.
Penalties for not filing IRS Form 926
Penalties can apply even when no tax is due. The standard penalty is 10% of the fair market value of the property transferred, capped at US$100,000 per transfer, unless the IRS determines there was intentional disregard.
There’s also a quieter risk. Failure to file Form 926 can keep the statute of limitations open longer on related items. If the required information isn’t provided, the IRS can extend the assessment period, generally until 3 years after the missing information is filed.
This is why Form 926 is often described as “low visibility, high consequence.” It doesn’t feel urgent until it suddenly is.
How IRS Form 926 interacts with other US expat tax forms
Form 926 rarely exists in isolation. It often shows up alongside other international reporting forms because they all deal with foreign ownership and offshore value. Depending on the situation, that may include:
- Forms reporting ownership in foreign corporations
- Asset disclosure forms tied to foreign financial accounts
- Reporting tied to broader offshore compliance rules
The key point is not memorizing every form number. It’s understanding that Form 926 is part of a system, not a standalone requirement. When one form applies, others often follow.
FAQs
-
What if I transferred property to a foreign company years ago and didn’t file Form 926?
This happens more often than people expect, especially with early-stage startups or informal business setups abroad. If the transfer occurred in a prior year and Form 926 was required but not filed, the issue doesn’t fix itself over time. Late filing may still be possible, but penalties and reasonable-cause arguments depend on the facts. The key is to address it proactively rather than waiting for the IRS to notice through another form.
-
Does Form 926 apply if the foreign company is owned only by me?
-
What if I transferred property in stages instead of all at once?
-
Is Form 926 required if the foreign company never made money?
-
Do I need to file Form 926 every year once it applies?
-
Can filing Form 926 trigger an audit?
Prefer to talk it through? Schedule your free callback today.
Spread the word. Please share… 👉
