A statement in the K1 mentioned form 926 and I'm wondering if the client has a filing requirement. Common sense says, no, it's a publicly traded company, but I'm not sure.
I'm reading the instructions, but now I'm regretting skipping so many classes to go to Pink Floyd Concerts, as I am having trouble understanding them:
926 instructions say:
Exceptions to Filing
For exchanges described in section 354 or 356, a U.S. person does not have to file Form 926 if:
The U.S. person exchanges stock of a foreign corporation in a recapitalization described in section 368(a)(1)(E), or
The U.S. person exchanges stock of a domestic or foreign corporation for stock of a foreign corporation under an asset reorganization described in section 368(a)(1) that is not treated as an indirect stock transfer under Regulations section 1.367(a)-3(d).
Generally, a domestic corporation that distributes stock or securities of a domestic corporation under section 355 is not required to file Form 926. However, this exception does not apply if the distribution is of stock or securities of a foreign controlled corporation to a distributee shareholder who is not a U.S. citizen or resident or a domestic corporation. See specific instructions for Part IV, line 21, later, for more information.
A U.S. person that transfers stock or securities under section 367(a) does not have to file Form 926 if either a or b below applies.
The U.S. transferor owned less than 5% of both the total voting power and the total value of the transferee foreign corporation immediately after the transfer and:
The U.S. transferor qualified for nonrecognition treatment with respect to the transfer, or
The U.S. transferor is a tax-exempt entity and the income was not unrelated business income, or
The transfer was taxable to the U.S. transferor under Regulations section 1.367(a)-3(c) and such person properly reported the income from the transfer on its timely filed return (including extensions) for the tax year that includes the date of transfer, or
The transfer is considered to be to a foreign corporation solely by reason of Regulations section 1.83-6(d)(1) and the fair market value of the property transferred did not exceed $100,000.The U.S. transferor owned 5% or more of the total voting power or the total value of the transferee foreign corporation immediately after the transfer and:
The U.S. transferor is a tax-exempt entity and the income was not unrelated business income, or
The transfer was taxable to the U.S. transferor and such person properly reported the income from the transfer on its timely filed return, or
The transfer is considered to be to a foreign corporation solely by reason of Regulations section 1.83-6(d)(1) and the fair market value of the property transferred did not exceed $100,000.