Instructions For Form 8886 - Reportable Transaction Disclosure Statement (Page 4 of 7) in pdf

year, attach Form 8886 to an

with OTSA as provided in Also file

information, see section 6707A; Notice

application for tentative refund (Form

separately, above.

2005-11, 2005-7 I.R.B. 493, available

•

1045 or 1139) or amended return for

Listed Transaction entered into

the carryback years.

after August 2, 2007. If you entered

and Rev. Proc. 2007-21, 2007-9 I.R.B.

into a transaction after August 2, 2007,

613, available at

Also file separately. If this is an

that later becomes a listed transaction,

irs-irbs/irb07-09.pdf.

initial year filing of Form 8886, send an

then you must file Form 8886 with

If you have a reportable transaction

exact copy of the form to the Office of

OTSA within 90 days after the date on

understatement, an accuracy-related

Tax Shelter Analysis at the following

which the transaction became a listed

penalty may be imposed under section

address when you file the form with

transaction.

6662A. This penalty applies to the

your tax return:

•

Transaction of Interest entered

amount of the understatement that is

into after November 1, 2006. If you

Internal Revenue Service

attributable to any listed transaction and

entered into a transaction after

OTSA Mail Stop 4915

any reportable transaction (other than a

November 1, 2006, that later becomes

1973 North Rulon White Blvd.

listed transaction) with a significant tax

a transaction of interest, then you must

Ogden, Utah 84404

avoidance purpose. The penalty

file Form 8886 with OTSA within 90

increases for transactions that are not

If you file your income tax return

days after the date on which the

disclosed on Form 8886 in accordance

electronically, the copy sent to OTSA

transaction became a transaction of

with these instructions. If the

must show exactly the same

interest.

transaction is not disclosed and a

information, word for word, provided

However, the published guidance

reportable transaction understatement

with the electronically filed return and it

under which the transaction becomes a

exists, you may not have a reasonable

must be provided on the official IRS

listed transaction or transaction of

cause and good faith defense under

Form 8886 or an exact copy of the

interest may also provide the time for

section 6664(d) with respect to the

form. If you use a computer-generated

filing Form 8886. You must file Form

accuracy-related penalty under section

or substitute Form 8886, it must be an

8886 in the time and in the manner

6662A. For more information, see

exact copy of the official IRS form. See

stated above regardless of whether you

section 6662A and Notice 2005-12,

the instructions for your income tax

participated in the transaction in the

2005-7 I.R.B. 494, available at

return for information on electronic filing

year in which the transaction became a

gov/pub/irs-irbs/irb05-07.pdf.

and substitute forms.

listed transaction or transaction of

A penalty under section 6707A is

interest.

Special Filing Rules

assessed for each failure by any

individual or entity required to file a

Subsequent Loss Transactions

60-day OTSA Extension

Form 8886 if the individual or entity (a)

If a transaction becomes a loss

fails to attach Form 8886 to the

If you are a partner in a partnership,

transaction because the losses equal or

appropriate original, amended return, or

shareholder in an S corporation, or

exceed the threshold amounts

application for tentative refund, (b) fails

beneficiary of a trust who receives a

described above in Loss Transactions

to file the form with OTSA, if required,

timely Schedule K-1 less than 10

on page 2, Form 8886 must be filed as

or (c) files a form that fails to include all

calendar days before your return due

an attachment to your income tax

the information required (or includes

date (including extensions) and, based

return or information return for the first

incorrect information). The Form 8886

on receipt of the timely Schedule K-1,

tax year in which the threshold amount

must be completed in its entirety with

you determine that you participated in a

is reached and to any subsequent

all required attachments to be

reportable transaction, Form 8886 will

income tax return or information return

considered complete. Do not enter

not be considered late if you file Form

that reflects any amount of section 165

“Information provided upon request” or

8886 with OTSA within 60 days after

loss from the transaction.

“Details available upon request,” or any

the due date of your return including

similar statement in the space provided.

Multiple Disclosures

extensions.

Inclusion of any such statements

If you are required to file Form 8886,

subjects you to penalty under sections

Designation as a Listed

you must do so regardless of whether

6707A and 6662A.

Transaction and/or Transaction

you also plan to disclose the

of Interest After Filing Tax

transaction under other published

If you are required to pay a

guidance, for example, Regulations

Return

penalty under section 6707A or

section 1.6662-3(c)(2).

section 6662A, you may be

CAUTION

If a transaction becomes a listed

required to disclose them on reports

transaction or a transaction of interest

Penalties

filed with the Securities and Exchange

after you file a tax return (including an

Commission. If you do not disclose

amended return) reflecting your

There is a monetary penalty under

these penalties, you may incur

participation in the listed transaction or

section 6707A for the failure to include

additional penalties under section

transaction of interest and before the

on any return or statement any

6707A(e). For more information, see

running of the period of limitations for

information required to be disclosed

section 6707A(e) and Rev. Proc.

assessment of tax for any tax year in

under section 6011 with respect to a

2005-51, 2005-33 I.R.B. 296, available

which you participated in the listed

reportable transaction. The penalty for

at irs-irbs/irb05-33.pdf,

transaction or transaction of interest,

failure to include information with

amplified by Rev. Proc. 2007-25,

then you must file Form 8886 according

respect to a reportable transaction,

2007-12 I.R.B. 761, available at www.

to the following rules.

other than a listed transaction, is

•

irs.gov/pub/irs-irbs/irb07-12.pdf.

Listed Transaction entered into

$10,000 in the case of an individual,

before August 3, 2007. If you entered

and $50,000 in any other case. The

Previously Undisclosed

into a transaction before August 3,

penalty for failure to include information

Listed Transactions

2007, that later becomes a listed

with respect to a listed transaction is

transaction, then you must attach Form

$100,000 in the case of an individual

If you are required to disclose a listed

8886 to the first tax return you file after

and $200,000 in any other case. This

transaction and fail to do so within the

the date the transaction became a

penalty is in addition to any other

time and manner prescribed under

listed transaction. Also file Form 8886

penalty that may be imposed. For

section 6011 and the related

-4-

Instructions for Form 8886 (Rev. 3-2010)

Instructions For Form 8886 - Reportable Transaction Disclosure Statement Page 4

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