I own more than 10% of a foreign partnership, but another U.S. partner is clearly Category 1. Does that mean I am not a Category 2 filer after all?
I am a U.S. investor in a foreign partnership operating in Portugal. My direct interest is about 14%, while another U.S. investor appears to control more than 50% together with related U.S. persons. We are both trying to understand our Form 8865 responsibilities before year-end.
I thought my 10% stake automatically made me a Category 2 filer, but then I read something suggesting Category 2 does not apply if the partnership had a Category 1 filer during the year. If that is true, I want to understand whether my filing burden changes or whether I still prepare the form under a different theory.
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