Instructions For Form 8918 - 2011 (Page 5 of 6) in pdf

Line 4

On line 6a, you must explain why you

principal contracts, options, input or risk

are filing the disclosure on a protective

hedges, etc.). If you need more space,

Enter the latest of the following dates.

basis. Generally, the IRS will not treat

follow the instructions under How to

•

The date you made a tax statement

disclosure statements filed on a protective

Complete Form 8918, earlier.

with regard to the transaction.

basis any differently than other disclosure

•

The date you received or had an

Line 10

statements filed on Form 8918. An

expectation that you would receive gross

incomplete form containing a statement

Check all the boxes that apply for the tax

income in excess of the threshold amount

that information will be provided on

benefits expected from the transaction. A

(defined earlier).

request is not a complete disclosure

tax benefit includes deductions,

•

The date the transaction was entered

statement. For a protective disclosure to

exclusions from gross income,

into by the taxpayer.

be effective, you must properly complete

nonrecognition of gain, tax credits,

•

Form 8918 and provide all required

The date the transaction became a

adjustments (or the absence of

information. See How to Complete Form

listed transaction or transaction of

adjustments) to the basis of property,

8918, earlier, for more information.

interest.

status as an entity exempt from federal

The latest of these dates is the date you

income taxation, and any other tax

Item C

became a material advisor. See Date you

consequences that may reduce a

Answer “Yes” if this is the original Form

became a material advisor, earlier.

taxpayer’s federal tax liability by affecting

8918 for this reportable transaction. If this

the amount, timing, character, or source

Line 5

is an amendment to a previously filed

of any item of income, gain, expense, loss

Form 8918 for the reportable transaction,

or credit. Check the “Other” box for tax

If more than one material advisor is

answer “No” and enter the reportable

benefits not specifically described by a

required to disclose a reportable

transaction number previously provided

box and identify the tax benefit(s) in the

transaction under this section, the

for the reportable transaction by the IRS.

space provided. If you need more space,

material advisors may designate by

follow the instructions under How to

The reportable transaction number is a

written agreement a single material

Complete Form 8918, earlier.

9-digit or 11-digit number and was

advisor to disclose the transaction. The

formerly known as a tax shelter

transaction must be disclosed by the last

Line 13

registration number or registration

day of the month following the end of the

number.

calendar quarter that includes the earliest

Describe all of the relevant facts about

date on which a material advisor who is a

the reportable transaction including the

Amended statement. An amended

party to the agreement became a material

following.

statement must be filed if information

advisor to the transaction.

previously provided is no longer accurate,

1. Tax benefits causing the

if additional information that was not

transaction to be reportable.

The designation of one material

disclosed becomes available, or if there

2. Years affected by the transaction.

advisor to disclose the transaction

are material changes to the transaction.

3. Steps of the transaction including:

does not relieve the other material

CAUTION

Line 1

advisors of the obligation to disclose the

a. Agreements.

transaction to the IRS in accordance with

b. Property transfers and acquisitions.

Enter the name, if any, by which the

these instructions, if the designated

transaction is known or commonly

c. Liability assumptions.

material advisor fails to disclose the

referred to by either yourself or published

d. Obligation fulfillment.

transaction to the IRS in a timely manner.

guidance. If no name exists, provide a

e. Sales.

short identifying description of this

Line 6a

f. Entity formation or dissolution.

transaction that distinguishes it from other

g. Other relevant events. Other

reportable transactions in which you have

Provide a concise statement indicating

relevant events may include but are not

participated (or may participate in the

your role as a material advisor to this

limited to tax result protection. Tax result

future). Do not report more than one

transaction. See Who is a Material

protection includes insurance company

transaction on this form unless the

Advisor, earlier. If you are filing a

and other third party products commonly

transactions are the same or substantially

protective disclosure, you must explain

described as tax result insurance.

similar. See Substantially Similar, earlier.

why you believe you are not a material

advisor. If you need more space, follow

4. Nature of the transaction (cash,

Line 2

the instructions under How to Complete

loan, service, other).

Check the box(es) for all categories that

Form 8918, earlier.

5. Purpose of each step in

apply to the transaction being reported.

accomplishing the tax benefits and

Lines 7a and 7b

The reportable transaction categories are

consequences.

described under What is a Reportable

Check the box(es) for all categories that

6. Where and how each party to the

Transaction, earlier.

apply to the transaction being reported.

transaction (entered on lines 7a, 7b, and

Indicate the related parties that are

If the transaction is a listed

8a and 8b) is used, including their roles.

needed and how they are related.

transaction, you must check the

7. The economic and business

Indicate the role of tax-exempt entities if

listed transaction box in addition to

reasons for the transaction and its

CAUTION

they are required for the transaction. In

any others that apply.

structure (describe market or business

addition, if a foreign entity is required,

conditions creating the tax benefit or

Line 3

indicate how and why the foreign entity is

consequence and its financial reporting, if

used, along with what country is used if a

Identify the notice, revenue ruling,

known).

particular country is required for the

regulation (for example, Regulations

8. How the financial instruments

transaction. If you need more space,

section 1.643(a)-8 or Notice 2003-81,

(entered on line 9) are used in the

follow the instructions under How to

2003-51 I.R.B. 1 modified and

transaction.

Complete Form 8918, earlier.

supplemented by Notice 2007-71,

9. How the Internal Revenue Code

2007-35 I.R.B. 472), announcement, or

Line 9

sections (entered on line 12) enable you

other published guidance that identified

to obtain the tax treatment.

the transaction as a listed transaction or

Identify the types of financial instruments

transaction of interest. For listed

required by the transaction (loan, stocks,

transactions, identify the guidance as

bonds, notes, original issue discounts,

If you need more space, follow the

shown in Notice 2009-59, 2009-31 I.R.B.

domestic and foreign currency

instructions under How to Complete Form

170 or later IRS guidance.

agreements, swaps, futures, notional

8918, earlier.

-5-

Instructions for Form 8918 Rev. 12-2011

Instructions For Form 8918 - 2011 Page 5

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