Instructions For Form 8886-T - Disclosure By Tax-Exempt Entity Regarding Prohibited Tax Shelter Transaction Page 3
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4after May 17, 2006, but before
plan entity) for each failure to timely
attachments. Do not simply write
January 1, 2007, to reduce its own
file Form 8886-T in accordance with
“See Attached.” If the information
federal tax liability, Form 8886-T is
its instructions and Temporary
required exceeds the space provided,
due on or before the later of
Regulations section 1.6033-5T. Form
complete as much information as
November 5, 2007, or the date the
8886-T must be completed in its
possible in the available space and
first tax return (whether an original or
entirety with all required attachments
attach the remaining information on
an amended return) is filed reflecting
to be considered complete. Do not
additional sheets. The additional
a reduction or elimination of the
enter “Information provided upon
sheets must be in the same order as
tax-exempt entity’s liability for
request” or “Details available upon
the lines to which they correspond.
applicable federal employment,
request,” or any similar statement in
You must also include the entity
excise, or unrelated business income
the space provided. Inclusion of any
name and identifying number at the
taxes derived directly or indirectly
such statements subjects the
top of each additional sheet.
from tax consequences or tax
tax-exempt entity (for a non-plan
Line 1
strategy described in published
entity) or the entity manager (for a
guidance that lists the transaction.
plan entity) to penalty. See section
Check the box which indicates the
6652(c) for more information.
type of tax-exempt entity that is a
No disclosure is required for any
party to a prohibited tax shelter
prohibited tax shelter transaction
Public Inspection
transaction.
entered into by a tax-exempt entity on
A completed Form 8886-T is
or before May 17, 2006. Although
Line 2
available for public inspection as
there is no disclosure requirement for
required under section 6104(b).
transactions entered into before May
Check the box for all categories that
18, 2006, certain tax-exempt entities
apply to the transaction being
may be liable for an excise tax. See
reported. The categories of prohibited
Specific Instructions
Form 4720, Return of Certain Excise
tax shelter transactions (listed,
Taxes Under Chapters 41 and 42 of
confidential, and transaction with
the Internal Revenue Code and
contractual protection) are described
Name and Address
accompanying instructions.
on pages 1 and 2. Do not report more
Enter the name and address of the
than one transaction on this form. If
Where To File
tax-exempt entity. Include the suite,
the transaction is substantially similar
room, or other unit number after the
to a listed transaction, check the box
Send the return to the:
street address. If the Post Office does
next to “listed transaction.” See
Department of the Treasury
not deliver mail to the street address,
Substantially similar on page 2. If you
Internal Revenue Service Center
show the P.O. box number instead of
checked the listed transaction box,
Ogden, UT 84201-0027
the street address. The name and
you must also identify the transaction
address should be the same as
on line 3.
Penalties
shown on other forms filed with the
If the transaction is a listed
IRS.
There is a monetary penalty under
!
transaction or substantially
section 6652(c) for the failure to
similar to a listed transaction,
Employer Identification
CAUTION
disclose information required under
you must check the listed transaction
section 6033(a)(2) with respect to a
Number (EIN)
box in addition to any others that may
prohibited tax shelter transaction. The
apply.
Enter the employer identification
penalty for failure to include
number of the tax-exempt entity. In
information with respect to a
Line 3
the case of a fully self-directed
prohibited tax shelter transaction is
qualified plan, or an IRA (or other
If you selected “listed transaction” on
$100 for each day during which such
savings arrangement) that does not
line 2, provide a brief identifying
failure continues, not to exceed
have and is not required to obtain an
description of the listed transaction
$50,000 for each required disclosure.
EIN, leave the EIN box blank. Do not
and identify the notice, revenue
In addition, the IRS is authorized to
enter a social security number.
ruling, regulation (for example,
make a written demand on the entity
Regulations section 1.643(a)-8 or
or entity manager specifying a future
Who Must Sign
Notice 2003-81 modified and
date by which the required disclosure
supplemented by Notice 2007-71,
must be filed. If there is a failure to
Non-plan entity. The director,
2007-35 I.R.B 472), announcement,
comply with this demand, there is an
trustee, officer, or other official
or other published guidance that
additional penalty in the amount of
authorized to sign for the non-plan
identified the listed transaction. See
$100 per day after the expiration of
entity (defined on page 1) must sign
the notices below or later IRS
the time specified in the demand, not
Form 8886-T.
guidance identifying listed
to exceed $10,000 for each required
Plan entity. For plan entities
transactions.
disclosure. In the case of a non-plan
(defined on page 1), the entity
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entity (defined on page 1), the penalty
Notice 2004-67, 2004-41 I.R.B.
manager (defined on page 2) must
is imposed on the tax-exempt entity.
600;
sign Form 8886-T.
•
In the case of a plan entity (defined
Notice 2005-13, 2005-9 I.R.B. 630;
on page 1), the penalty is imposed on
and
How To Complete
•
the entity manager. See section
Notice 2007-57, 2007-29 I.R.B. 87.
Form 8886-T
6652(c) for more information.
Line 4
A penalty is assessed to the
In order to be considered complete,
tax-exempt entity (for a non-plan
Form 8886-T must be completed in
Provide the complete names and
entity) or to the entity manager (for a
its entirety with all required
addresses of all other parties
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