Instructions For Form 8886 - Reportable Transaction Disclosure Statement (Page 5 of 7) in pdf

regulations, then under section

Initial year filer. If this is the first year

Specific Instructions

that you are filing a Form 8886 to

6501(c)(10) the period to assess any

disclose this transaction, check this box

tax with respect to the listed transaction

and file a duplicate copy of the form

will be extended beyond the normal

How To Complete

with OTSA (see When and How To File

assessment period until one year after

above).

Form 8886

the earlier of either:

•

Protective disclosure. You may

The date you disclose the transaction

In order to be considered complete,

indicate that you are filing on a

by filing Form 8886 in the manner

Form 8886 must be completed in its

protective basis by checking this box

entirety with all required attachments.

prescribed in Rev. Proc. 2005-26,

(under the option provided in

To be considered complete, the

2005-17 I.R.B. 965, available at www.

Regulations section 1.6011-4(f)).

information provided on the form must

irs.gov/pub/irs-irbs/irb05-17.pdf (or

Generally, the IRS will not treat a Form

describe the expected tax treatment

subsequently published guidance), or

8886 filed on a protective basis any

and all potential tax benefits expected

•

The date that a material advisor

differently than other Forms 8886. An

to result from the transaction, describe

provides the information required under

incomplete form containing a statement

any tax result protection with respect to

section 6112 in response to a request

that information will be provided on

the transaction, and identify and

request is not a complete disclosure

by the IRS under section 6112.

describe the transaction in sufficient

statement. For a protective disclosure

detail for the IRS to be able to

to be effective, you must properly

Section 6501(c)(10) is effective for

understand the tax structure of the

complete and file Form 8886 and

tax years with respect to which the

reportable transaction and identify all

provide all required information. See

parties involved in the transaction. A

limitations period on assessment did

How To Complete Form 8886 above.

Form 8886 containing a statement that

not expire prior to October 22, 2004.

information will be provided upon

Section 6501(c)(10) does not revive an

Line 1a

request is not considered a complete

assessment period that expired prior to

disclosure statement. If Form 8886 is

Enter the name, if any, by which the

October 22, 2004. For more

not completed in accordance with these

transaction is known or commonly

information, see Rev. Proc. 2005-26.

instructions and Regulations section

referred to. If no name exists, provide a

1.6011-4, you will not be considered to

short identifying description of this

If you are filing Form 8886 to

have complied with the disclosure

transaction that distinguishes it from

disclose a previously undisclosed listed

requirements. If you receive one or

other reportable transactions in which

transaction for purposes of section

more reportable transaction numbers

you have participated (or may

6501(c)(10), submit the form and a

for a reportable transaction, you must

participate in the future). If you are

cover letter to the Internal Revenue

include the reportable transaction

reporting more than one transaction

Service Center where your original tax

numbers on Form 8886.

and the transactions have different

return was filed. Write across the top of

names, enter all names in the space

If the information required exceeds

page 1 of each Form 8886 the following

provided. If additional space is needed,

the space provided, complete as much

statement: “Section 6501(c)(10)

write “See Additional List” and attach a

information as possible in the available

list.

Disclosure” followed by the tax year

space and attach the remaining

and tax return to which the disclosure

If you are filing Form 8886 to

information on additional sheets. The

statement applies. For example, if the

disclose a transaction with a significant

additional sheets must be in the same

Form 8886 relates to your Form 1040

book-tax difference that was due prior

order as the lines to which they

for the 2002 tax year, you must include

to January 6, 2006, write “book-tax

correspond. You must also include your

the following statement: “Section

difference” in parentheses after the

name and identifying number at the top

name of the transaction on line 1a. If

6501(c)(10) Disclosure; 2002 Form

of each additional sheet. Do not write

any other disclosure category also

1040” on the form. The cover letter

“See Attached” on the form and provide

applies, check the appropriate box(es)

must identify the tax return to which the

all the information on an attached

on line 2.

disclosure statement relates and

statement.

include the following statement signed

Line 1b

under penalties of perjury by the

Item A

taxpayer and, if applicable, the paid

Enter the first year that you participated

If you file more than one Form 8886

preparer of Form 8886: “Under

in this transaction in year format

with your return, sequentially number

penalties of perjury, I declare that I

(YYYY). If you are reporting for more

each of these forms and enter the

have examined this reportable

than one transaction, enter all initial

statement number for this Form 8886

years in the space provided. If

transaction disclosure statement and, to

(for example, statement number 1 of 3).

additional space is needed, write “See

the best of my knowledge and belief,

Additional List” and attach a list.

this reportable transaction disclosure

Item B

statement is true, correct, and

Note. This may not be the same as

Enter the form number and year of the

complete. Declaration of preparer

the year for which you are disclosing a

tax return with which this Form 8886 is

(other than the taxpayer) is based on all

reportable transaction.

filed (for example, Form 1040). If the

information of which the preparer has

tax return has a calendar tax year,

Line 1c

any knowledge.” Separate Forms 8886

enter the year shown on the return (for

and separate cover letters must be

Enter the 9 digit and/or 11 digit number

example, 2007). If it is a fiscal year

submitted for each tax year for which

provided to you. This number may be

return, enter the date the fiscal year

you participated in the undisclosed

referred to as a registration number or

ends using the MM/DD/YYYY format

listed transaction. You must also submit

reportable transaction number.

(for example, 06/30/2008).

a copy of the form and cover letter

Reportable transactions can have more

simultaneously to OTSA at the OTSA

than one number. If you have more

Item C

address indicated on page 4. See Rev.

than one number for this transaction,

Proc. 2005-26 for additional guidance.

Check all the box(es) that apply.

include all numbers in the space

-5-

Instructions for Form 8886 (Rev. 3-2010)

Instructions For Form 8886 - Reportable Transaction Disclosure Statement Page 5

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