The Inland Revenue Service has published, on 23 February 2017, draft version of instructions for forms that multinational enterprise (MNE) groups are to use in filing information on a country-by-country basis.

Form 8975 and Schedules A (Form 8975) are used by filers described under Who Must File to report annually certain information with respect to the filer’s U.S. MNE group on a country-by-country basis. The filer must list the U.S. MNE group’s business entities, indicating each entity’s tax jurisdiction (if any), country of organization and main business activity, and provide financial and employee information for each tax jurisdiction in which the U.S. MNE does business. The financial information includes revenues, profits, income taxes paid and accrued, stated capital, accumulated earnings, and tangible assets other than cash. Form 8975 and its Schedules A (Form 8975) must be filed with the IRS with the income tax return of the ultimate parent entity of a U.S. MNE group for the tax year in or within which the reporting period covered by the Form 8975 ends.

The IRS clarifies that this is an early release draft of an IRS tax form, instructions, or publication, which the IRS is providing for taxpayer’s information as a courtesy. There is no need to file draft forms. Also, the taxpayer should not rely on draft instructions and publications for filing as these are still subject to possible amendment. In addition, forms generally are subject to approval by the Office of Management and Budget (OMB) before they can be officially released. Drafts of instructions and publications are usually subject to some changes before being officially released.