Three U.S. owners all qualify as Category 1 filers. Does each of us file the full Form 8865 package separately?
We have a foreign partnership with three U.S. owners, each above the relevant ownership threshold, so it looks like more than one of us may qualify as a Category 1 filer. We are trying to avoid duplicate filings that all say the same thing, but we also do not want to rely on an exception we do not understand and create a bigger penalty problem.
The question is whether there is a genuine single-filing exception for multiple Category 1 filers and, if so, whether the non-filing owners still have to attach something to their own returns. The filing instructions seem more layered than the quick online summaries suggest.
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