965-B

Corporate and Real Estate Investment Trust (REIT) Report of Net 965 Tax Liability and Electing REIT Report of 965 Amounts

Agency
IRS
Revision
Rev. January 2021
Fillable fields
272
Pages
2
Official source
IRS form page
Checked
October 21, 2026
Fill 965-B online
Page 1 of form 965-B

Form 965-B: Corporate and REIT Report of Net 965 Tax Liability

Form 965-B, Corporate and Real Estate Investment Trust (REIT) Report of Net 965 Tax Liability and Electing REIT Report of 965 Amounts, is used by corporate taxpayers and REITs. The IRS page says it reports a taxpayer's net 965 tax liability for each tax year in which a taxpayer accounts for section 965 amounts.

The instructions call it a cumulative report: it shows how the net 965 tax liability was figured, whether it is paid in installments, each payment made, and any transfers or adjustments, until the liability is paid in full. An electing REIT also uses Part III to track the section 965 amounts it takes into account over an 8-year period.

Form 965-B is filed with the taxpayer's income tax return, not on its own. Individuals have a separate report, Form 965-A. You can fill out Form 965-B free in your browser on this page and download it without an account.

What's on Form 965-B

Header and amended report box

The name of the taxpayer or REIT, the identifying number, the taxable year of reporting, and a box to check if this is an amended report.

Part I, columns (a) to (d)

The year of the section 965(a) inclusion or liability assumed, net tax liability with all 965 amounts, net tax liability without 965 amounts, and the difference, which is the net 965 tax liability.

Part I, columns (e) to (i)

Whether an installment election was made, the amount paid in full in year 1 or paid in installments, amounts transferred out, transferred in or adjusted, and the other party's identification number.

Part II: payments made

A record of the net 965 tax liability paid by the taxpayer: Paid for Year 1 through Paid for Year 8, the amount remaining unpaid, the amount paid for the reporting year, and totals.

Part III: electing REIT report

Lines 1a through 4b for the 2017 to 2020 section 965(a) inclusion and section 965(c) deduction, with the amount elected, the portion for each of years 1 through 8, the amount remaining and this year's portion.

Lines 5 through 8

Open lines in Parts I and II for other amounts of net 965 tax liability, such as installment liabilities transferred in. The form says to attach additional sheets if more lines are needed.

How to fill out Form 965-B

  1. 1

    Amended report box

    The instructions say to check it when Form 965-B is filed with an amended return that changes section 965 reporting, and on any amended Form 965-B filed with Form 1139 for an NOL carryback.

  2. 2

    Part I, columns (b) to (d)

    Column (b) is net income tax liability with all section 965 amounts included, column (c) is the same liability without section 965, and column (d) is the excess of (b) over (c).

  3. 3

    Part I, columns (e) to (g)

    Check Yes if an election under section 965(h) to pay in installments over 8 years was made, then enter the column (d) amount in column (g). If No, enter it in column (f) instead.

  4. 4

    Part I, columns (h) and (i)

    A liability transferred out goes in column (h) as a negative number, a liability transferred in as a positive number on lines 5 to 8, and later adjustments such as audit changes as positive or negative. Column (i) holds the other party's identification number.

  5. 5

    Part II: payments

    The instructions give the general installment schedule: 8% in each of years 1 to 5, 15% in year 6, 20% in year 7 and 25% in year 8. Actual payments are reported, column (j) shows what is left unpaid and column (k) only this year's payment.

  6. 6

    Part III: electing REITs only

    Column (b) is the amount the election covers, columns (c) to (j) the portion taken into account each year on the same 8-year schedule, column (k) the amount remaining and column (l) this year's portion.

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Where it goes, timing and extra lines

Where it goes

The instructions say to file Form 965-B with the taxpayer's income tax return for the reporting year. If that return is filed electronically, Form 965-B is filed with it.

Deadline

It is due with the income tax return, by the return's due date including any extensions. The instructions add that the first installment payment is due by the return's due date without extension.

Every year until paid

The instructions say the form is completed for every tax year in which any net 965 tax liability is outstanding and not fully paid at any point in the year, and for every year an electing REIT still has amounts to take into account.

More lines

The form says to attach additional sheets if more lines are needed. The instructions say an additional Form 965-B is used if lines 5 through 8 are not enough.

Tax year 2020 entries

For tax year 2020, the instructions say corporations carry Part I, column (d), line 4 and Part II, column (k), line 4 to Form 1120, Schedule J, or the matching line of other corporate returns.

Related forms

Who files Form 965-B?

  • Corporations with a net 965 tax liability

    The instructions say any corporate taxpayer that has a net 965 tax liability for a tax year, or any net 965 tax liability still unpaid at any time during a tax year, files the form.

  • Electing REITs

    A REIT that elected to take its section 965(a) inclusion and section 965(c) deduction into account over 8 years files the form and completes Part III for each year amounts remain.

  • Transferees that assumed a liability

    A taxpayer that assumed, as transferee, the installment payment liability of another taxpayer reports it on lines 5 through 8 of Part I. The instructions point to Form 965-C for transfer agreements.

  • Corporations carrying back a net operating loss

    The instructions say a taxpayer applying for a tentative refund from an NOL carryback to a section 965 year includes an amended Form 965-B with Form 1139.

  • Individuals use Form 965-A

    Form 965-B is the corporate and REIT report. The IRS lists Form 965-A, Individual Report of Net 965 Tax Liability, as a separate form.

The instructions say the form should be used by corporate taxpayers and REITs. It is completed by the corporation or REIT and goes to the IRS with its income tax return.

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Questions about Form 965-B

Who uses Form 965-B?

The instructions say corporate taxpayers and REITs. Individuals have a separate form, Form 965-A.

Is Form 965-B filed on its own?

No. It is filed with the taxpayer's income tax return for the reporting year, by that return's due date including extensions.

What is the net 965 tax liability?

The instructions define it as the excess of net income tax liability figured with all section 965 amounts over net income tax liability figured without section 965.

What is the installment schedule?

The instructions list 8% of the net 965 tax liability in each of years 1 through 5, 15% in year 6, 20% in year 7 and 25% in year 8. Actual payments are reported if they differ.

Which part do REITs complete?

A REIT that elected to account for its section 965 amounts over time completes Part III. The form says such REITs fill out Part III.

When is the amended report box checked?

When the form goes with an amended return that changes section 965 reporting, and on an amended Form 965-B filed with Form 1139 after an NOL carryback to a section 965 year.