CP282 notice explained, in the IRS’s own words

What this notice is about

You received this notice because you indicated on your Form 1065, U.S. Return of Partnership Income, or Form1065-B, U.S. Return of Income for Electing Large Partnerships, that you have foreign partners.

Generally, when a foreign person engages in a trade or business in the United States, all income from sources in the United States connected with the conduct of that trade or business is considered to be Effectively Connected Taxable Income (ECTI). A partnership (foreign or domestic) that has income effectively connected with a U.S. trade or business (or income treated as effectively connected) must pay a withholding tax on the ECTI that it allocates to its foreign partners (Section 1446 of the Internal Revenue Code). The partnership, or a withholding agent for the partnership, must pay the withholding tax. A partnership that must pay the withholding tax but fails to do so may be liable for the payment of the tax plus any penalties and interest.

What you need to do if you determine you are liable for withholding:

• Complete the appropriate forms.
• If you are not a publicly traded partnership, use:
• Form 8804, Annual Return for Partnership Withholding Tax (Section 1446) PDF
• Form 8805, Foreign Partner's Information Statement of Section 1446 Withholding Tax PDF
• Form 8813, Partnership Withholding Tax Payment Voucher (Section 1446) PDF
• If you are a publicly traded partnership, use:
• Form 1042, Annual Withholding Tax Return for U.S. Source Income of Foreign Persons PDF
• Form 1042-T, Annual Summary and Transmittal of Forms 1042-S PDF
• Form 1042-S, Foreign Person's U.S. Source Income Subject to Withholding PDF
• Mail your forms to:

Internal Revenue Service

P.O. Box 409101

Ogden, UT 84409

If you determine you're not liable for withholding:

• Write ”not liable” on the notice
• Don’t write that you have no taxable income
• Send the notice to the address at the top of the notice

If you already filed the appropriate forms:

• Write on the notice the names of the forms you already filed
• Send the notice to the address at the top of the notice

You may want to

• Obtain the forms and instructions you need from our website
• Publication 515, Withholding of Tax on Nonresident Aliens and Foreign Entities

Reference tools

• Publication 1, Your Rights as a Taxpayer
• Publication 17, Your Federal Income Tax
• Full list of tax forms and instructions

Need help?

• You can authorize someone to contact the IRS on your behalf.
• If you can’t find what you need online, call the IRS number on your notice or letter. If you didn’t receive a letter or notice, use telephone assistance.
• If you can't resolve the penalty on your own, contact Taxpayer Advocate Service, an independent organization within IRS.

Related CP notices

• CP283 notice
• CP283C notice
• CP284 notice
• CP286 notice
• CP287 notice
• CP288 notice