Instructions For Form 8886 - Reportable Transaction Disclosure Statement
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7Instructions for Form 8886
Department of the Treasury
Internal Revenue Service
(Rev. August 2017)
Reportable Transaction Disclosure Statement
For use with Form 8886 (Rev. March 2011) or later revision
Who Must File
Section references are to the Internal Revenue
a prohibited tax shelter transaction, you
Code unless otherwise noted.
may be required to file Form 8886-T,
Any taxpayer, including an individual,
Disclosure by Tax-Exempt Entity
trust, estate, partnership, S corporation,
Future Developments
Regarding Prohibited Tax Shelter
or other corporation, that participates in
Transaction, in addition to filing Form
a reportable transaction and is required
For the latest information about
8886. For more information, see the
to file a federal tax return or information
developments related to Form 8886 and
Instructions for Form 8886-T.
its instructions, such as legislation
return must file Form 8886. However, a
regulated investment company (RIC)
enacted after they were published, go to
Definitions
(as defined in section 851) or an
IRS.gov/Form8886.
investment vehicle that is at least 95%
Transaction
Future revisions of Form 8886. The
owned by one or more RICs at all times
IRS will revise the March 2011 version
A transaction includes all of the factual
during the course of a transaction is not
of Form 8886 only when necessary.
elements relevant to the expected tax
required to file Form 8886 for any
Continue to use the 2011 version of
treatment of any investment, entity,
transaction other than a listed
Form 8886 until a new revision is
plan, or arrangement and it includes any
transaction (as defined below) or a
issued.
series of steps carried out as part of a
transaction of interest (as defined later).
plan.
What's New
Participation in a
Substantially Similar
Reportable Transaction
The mailing address for the Office of
A transaction is substantially similar to
Tax Shelter Analysis (OTSA) has been
another transaction if it is expected to
A reportable transaction is a transaction
updated. See
When and How To
File,
obtain the same or similar types of tax
described in one or more of the
later.
consequences and is either factually
following categories.
similar or based on the same or similar
General Instructions
Listed Transactions
tax strategy. Receipt of an opinion
A listed transaction is a transaction that
regarding the tax consequences of the
Purpose of Form
is the same as or substantially similar to
transaction is not relevant to the
one of the types of transactions that the
determination of whether the transaction
Use Form 8886 to disclose information
IRS has determined to be a tax
is the same as or substantially similar to
for each reportable transaction in which
avoidance transaction. These
another transaction. Further, the term
you participated. See
Participation in a
transactions are identified by notice,
“substantially similar”must be broadly
Reportable
Transaction, later, to
regulation, or other form of published
construed in favor of disclosure. See
determine if you participated in a
guidance as a listed transaction. For
Regulations section 1.6011-4(c)(4) for
reportable transaction. For more
existing guidance, see Notice 2009-59,
examples.
information on the disclosure rules, see
2009-31 I.R.B. 170, available at
Regulations section 1.6011-4.
Tax Benefit
IRS.gov/pub/irs-irbs/irb09-31.pdf. For
Generally, you must file a separate
A tax benefit includes deductions,
updates to this list, go to the IRS web
Form 8886 for each reportable
exclusions from gross income,
page at
IRS.gov/businesses/
transaction. However, you may report
nonrecognition of gain, tax credits,
corporations/abusive-tax-shelters-and-
more than one transaction on one form
adjustments (or the absence of
transactions. The listed transactions will
if the transactions are the same or
adjustments) to the basis of property,
also be periodically updated in future
substantially similar. See the definition
status as an entity exempt from federal
issues of the Internal Revenue Bulletin.
of
substantially similar
below.
income taxation, and any other tax
You can find a notice or ruling in the
consequences that may reduce a
Internal Revenue Bulletin at
The fact that a transaction must be
taxpayer's federal tax liability by
IRS.gov/pub/irs-irbs/irbXX-YY.pdf,
reported on this form does not mean the
affecting the amount, timing, character,
where XX is the two-digit year and YY is
tax benefits from the transaction will be
or source of any item of income, gain,
the two-digit bulletin number. For
disallowed.
expense, loss, or credit.
example, you can find Notice 2009-59,
Prohibited tax shelter transactions.
2009-31 I.R.B. 170, at
IRS.gov/pub/irs-
Tax Structure
Generally, the term "prohibited tax
irbs/irb09-31.pdf.
The tax structure of a transaction is any
shelter transaction" means listed
You have participated in a listed
fact that may be relevant to
transactions, transactions with
transaction if any of the following
understanding the purported or claimed
contractual protection, or confidential
applies.
federal income tax treatment of the
transactions. See the definitions of
Your tax return reflects tax
transaction.
these categories below. There may be
consequences or a tax strategy
additional disclosure requirements for
described in published guidance that
tax-exempt entities with respect to these
lists the transaction.
types of transactions. If you are a
tax-exempt entity and you are a party to
Sep 01, 2017
Cat. No. 34911S
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