Form 8806 - Information Return For Acquisition Of Control Or Substantial Change In Capital Structure - 2003 Page 3

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Form 8806 (12-2003)
Page
return is late, up to a maximum of
Common parent of the reporting
Paperwork Reduction Act Notice. We
$100,000. The penalty will not be
corporation. If the reporting corporation
ask for the information on this form to
imposed if the corporation can show
was a subsidiary member of a
carry out the Internal Revenue laws of
that the failure to file on time was due to
consolidated group immediately prior to
the United States. You are required to
reasonable cause. Corporations that file
the reportable transaction, complete
give us the information. We need it to
late must attach a statement explaining
lines 2a and 2b.
ensure that you are complying with
the reasonable cause. Additional
these laws and to allow us to figure and
Common parent of the acquiring
penalties may apply under sections
collect the right amount of tax.
corporation. If the acquiring corporation
7203, 7206, and 7207.
You are not required to provide the
was a subsidiary member of a
information requested on a form that is
Note: Failure to file also includes the
consolidated group at the time of the
subject to the Paperwork Reduction Act
requirement to file on magnetic media as
change in control or substantial change
unless the form displays a valid OMB
required by section 6011(e) and
in capital structure, complete lines 4a
control number. Books or records
Regulations section 1.6011-2.
and 4b.
relating to a form or its instructions must
Information Returns
Part IV–Consent Election
be retained as long as their contents
may become material in the
Regarding Shareholders
A reporting corporation may elect to
administration of any Internal Revenue
A corporation required to file Form 8806
consent to the IRS publication (on the
law. Generally, tax returns and return
also must file Form 1099-CAP for certain
IRS website and/or an IRS publication)
information are confidential, as required
shareholders of record who receive cash
of information included on this form, to
by section 6103.
or other property (including stock) in
be limited to the name and address of
The time needed to complete and file
exchange for their stock in the reporting
the corporation, the date of the
this tax form will vary depending on
corporation due to the acquisition of
transaction, a description of the shares
individual circumstances. The estimated
control or the substantial change in
affected by the transaction, and the
average time is:
amount of cash and the fair market
capital structure. See Form 1099-CAP
Recordkeeping
6 hr., 42 min.
for more information.
value of any property (as reflected on
Learning about the
line 7e) provided to each class of
law or the form
2 hr., 10 min.
Specific Instructions
shareholders in exchange for a share.
Preparing and sending
See Temporary Regulations section
Employer identification number (EIN).
the form to the IRS
2 hr., 23 min.
1.6043-4T(a)(2).
An EIN must be included for each
If you have comments concerning the
Corporations that elect to consent to
corporation identified. An EIN is not
accuracy of these time estimates or
such publication are not required to file
required if the corporation does not
suggestions for making this form
Form 1099-CAP with respect to
have, and is not otherwise required to
simpler, we would be happy to hear from
shareholders that are clearing
have, an EIN.
you. You can write to the Tax Forms
organizations, or to furnish Form
Committee, Western Area Distribution
1099-CAP to such organizations. See
Center, Rancho Cordova, CA
Temporary Regulations section
95743-0001. Do not send this form to
1.6043-4T(b)(1) and (4).
this address. Instead see Where To File
on page 2.

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