Looking for a Form 8275 Templates? Download it for free!

Department of the Treasury

Instructions for Form 8275

Internal Revenue Service

(Rev. August 2007)

(Use with the May 2001 revision of Form 8275.)

Disclosure Statement

8275-R, Regulation Disclosure

which they originated. You do not

What’s New

Statement, instead of Form 8275.

have to file another Form 8275 for

those items for the tax years in which

Changes have been made to the

For items attributable to a

the carryover is taken into account.

penalties for tax return preparers as a

pass-through entity, disclosure should

result of P.L. 110-28, section 8246.

be made on the tax return of the

Carryback items must be disclosed

For more information, see Tax Return

entity. If the entity does not make the

for the tax year in which they

Preparer Penalties on page 2.

disclosure, the partner (or

originated. You do not have to file

shareholder, etc.) may make

another Form 8275 for those items for

General Instructions

adequate disclosure of these items.

the tax years in which the carryback

Exception to filing Form 8275.

is taken into account.

Section references are to the Internal

Guidance is published annually in a

Revenue Code unless otherwise

However, if you disclose items of a

revenue procedure in the Internal

noted.

recurring nature (such as

Revenue Bulletin. This can be found

depreciation expense), you must file

on the Internet at The

Purpose of Form

Form 8275 for each tax year in which

revenue procedure identifies

the item occurs.

Form 8275 is used by taxpayers and

circumstances when an item reported

income tax return preparers to

on a return is considered adequate

If you are disclosing a position that

disclose items or positions, except

disclosure for purposes of the

is contrary to a rule, and the position

those taken contrary to a regulation,

substantial understatement aspect of

relates to a reportable transaction as

that are not otherwise adequately

the accuracy-related penalty and for

defined in Regulations section

disclosed on a tax return to avoid

avoiding the preparer’s penalty

1.6011-4(b), you must also make the

certain penalties. The form is filed to

relating to understatements due to

disclosure required by Regulations

avoid the portions of the

unrealistic positions. See the

section 1.6011-4(b). See Form 8886,

accuracy-related penalty due to

Example below. You do not have to

Reportable Transaction Disclosure

disregard of rules or to a substantial

file Form 8275 for items that meet the

Statement, its instructions, and

understatement of income tax for

requirements listed in this revenue

Rev. Proc. 2004-45, which is on page

non-tax shelter items if the return

procedure.

140 of Internal Revenue Bulletin

position has a reasonable basis. It

Example. Generally, you will

2004-31 at

can also be used for disclosures

have met the requirements for

irb04-31.pdf.

relating to preparer penalties for

adequate disclosure of a charitable

understatements due to unrealistic

contribution deduction if you complete

Accuracy-Related

positions or disregard of rules.

the contributions section of Schedule

Penalty

A (Form 1040) and supply all the

The portion of the

required information. If you make a

Generally, the accuracy-related

accuracy-related penalty

contribution of property other than

penalty is 20% of any portion of a tax

attributable to the following

CAUTION

cash that is over $500, the form

underpayment attributable to:

types of misconduct cannot be

required by the Schedule A

avoided by disclosure on Form 8275.

1. Negligence or disregard of rules

instructions must be attached to your

•

or regulations,

Negligence.

return.

•

2. Any substantial understatement

Disregard of rules or regulations.

•

of income tax,

How To File

Any substantial understatement of

3. Any substantial valuation

income tax.

File Form 8275 with your original tax

•

misstatement under chapter 1 of the

Any substantial valuation

return. Keep a copy for your records.

Internal Revenue Code,

misstatement under chapter 1.

You may be able to file Form 8275

•

4. Any substantial overstatement

Any substantial overstatement of

with an amended return. See

of pension liabilities, or

pension liabilities.

Regulations sections 1.6662-4(f) and

•

5. Any substantial estate or gift tax

Any substantial estate or gift tax

1.6664-2(c)(3) for more information.

valuation understatement.

valuation understatements.

To make adequate disclosure for

items reported by a pass-through

However, the penalty is 40% of

Who Should File

entity, you must complete and file a

any portion of a tax underpayment

separate Form 8275 for items

Form 8275 is filed by individuals,

attributable to one or more gross

reported by each entity.

corporations, pass-through entities,

valuation misstatements in (3), (4), or

and income tax return preparers. If

Carrybacks, carryovers, and

(5) above if the applicable dollar

you are disclosing a position taken

recurring items. Carryover items

limitation under section 6662(h)(2) is

contrary to a regulation, use Form

must be disclosed for the tax year in

met.

Cat. No. 62063F

Instructions For Form 8275 - Disclosure Statement - Department Of The Treasury - 2007

Related Articles

Related forms

Related Categories