Instructions For Form 8831 printable pdf download

Form 8831 (Rev. 12-2008)

Page

organization after March 31, 1988

General Instructions

organization. A pass-through entity must

(unless the transfer was made under a

file Form 8831 and pay the tax due

binding contract in effect on that date).

under section 860E(e)(6) by the 15th day

Section references are to the Internal

File a separate Form 8831 for each

of the 4th month following the close of

Revenue Code unless otherwise noted.

transfer of a residual interest.

its tax year in which the disqualified

person is a record holder. If the due

What’s New

You will be relieved of the liability for

date falls on a Saturday, Sunday, or

the tax if you obtain an affidavit from the

Paid preparers are required to sign Form

legal holiday, file on the next day that is

transferee signed under penalties of

8831 and provide the information

not a Saturday, Sunday, or legal holiday.

perjury that either furnishes the

required in the new signature block at

transferee’s social security number or

If more time is needed, use Form

the bottom of the return. For more

7004, Application for Automatic

states that the transferee is not a

information, see the instructions for the

Extension of Time To File Certain

disqualified organization, provided you

“signature” section of your federal

do not have actual knowledge at the

Business Income Tax, Information, and

income tax return.

time of the transfer that the affidavit is

Other Returns, to request an extension

of time to file Form 8831. However,

false.

Purpose of Form

Form 7004 does not extend the time for

A pass-through entity must file Form

payment of tax.

Use Form 8831 to report and pay:

8831 if it is liable for the tax in Part II

under section 860E(e)(6). The entity must

The excise tax due under section

Where To File

pay this tax if, at any time during the

860E(e)(1) on any transfer of a residual

entity’s tax year, excess inclusions from

interest in a REMIC to a disqualified

File Form 8831 at the following address:

organization,

a residual interest in a REMIC are

Department of the Treasury

allocable to an interest in the entity for

The amount due under Regulations

Internal Revenue Service

which the record holder is a disqualified

section 1.860E-2(a)(7)(ii) if the tax under

Cincinnati, OH 45999

organization. The tax applies to excess

section 860E(e)(1) is to be waived, or

Rounding Off to Whole

inclusions for periods after March 31,

The excise tax due under section

1988, but only to the extent the

Dollars

860E(e)(6) on pass-through entities with

inclusions are allocable either to an

interests held by disqualified

You may round off cents to whole

interest in the pass-through entity

organizations. All interests in an electing

dollars on your returns and schedules.

acquired after March 31, 1988, or to a

large partnership are treated as held by

If you do round to whole dollars, you

residual interest acquired by the

disqualified organizations (see section

must round all amounts. To round,

pass-through entity after March 31,

774(e) for details).

drop amounts under 50 cents and

1988. Any interest acquired under a

increase amounts from 50 to 99 cents

binding contract in effect on March 31,

Definitions

to the next dollar. For example, $1.39

1988, is treated as acquired before that

becomes $1 and $2.50 becomes $3.

date. A real estate investment trust,

A disqualified organization is:

regulated investment company, common

If you have to add two or more

The United States, any state or

amounts to figure the amount to enter

trust fund, or publicly traded partnership

political subdivision thereof, any foreign

is subject to the tax due under section

on a line, include cents when adding the

government, any international

860E(e)(6) only for tax years beginning

amounts and round off only the total.

organization, or any of their agencies or

after 1988.

Amended Return

instrumentalities (except for certain

Generally, a pass-through entity is not

taxable instrumentalities described in

subject to the excise tax under section

To amend a previously filed Form 8831,

section 168(h)(2)(D) and the Federal

860E(e)(6) if it obtains an affidavit from

file a corrected Form 8831 marked

Home Loan Mortgage Corporation);

the record holder signed under penalties

“Amended” at the top of the form.

Any tax-exempt organization (other

of perjury that either furnishes the record

than a farmers’ cooperative described in

holder’s social security number or states

Signature

section 521), unless that organization is

that the record holder is not a

subject to the unrelated business

See the instructions for the “Signature”

disqualified organization. The affidavit

income tax; and

section of your federal income tax

provides relief for any period during

Any cooperative described in section

return.

which the pass-through entity does not

1381(a)(2)(C).

have actual knowledge that the affidavit

Interest and Penalties

is false. However, this relief does not

A pass-through entity is a regulated

apply to electing large partnerships.

investment company, real estate

Interest. Interest is charged on taxes

investment trust, common trust fund,

A pass-through entity that owes both

not paid by the due date. Interest is also

partnership, trust, estate, or a

the excise tax in Part I under section

charged on certain penalties. The

cooperative described in section 1381. A

860E(e)(1) (or the amount due under

interest charged is figured at a rate

person holding an interest in a

Regulations section 1.860E-2(a)(7)(ii)) and

determined under section 6621.

pass-through entity as a nominee for

the excise tax in Part II under section

Late filing penalty. Generally, a penalty

another person is also treated as a

860E(e)(6) must file a separate form for

of 5% a month or part of a month, up to

pass-through entity.

each tax.

a maximum of 25%, is imposed on the

Who Must File

net amount of tax due if the excise tax

When To File

return is not filed when due.

You must file Form 8831 if you are liable

For the excise tax due under section

Late payment penalty. Generally, the

for the excise tax in Part I under section

860E(e)(1), file Form 8831 and pay the

penalty for not paying tax when due is

860E(e)(1) (or the amount due under

tax by April 15 of the year following the

⁄

of 1% of the unpaid tax, up to a

Regulations section 1.860E-2(a)(7)(ii))

calendar year in which the residual

maximum of 25%, for each month or

because you transferred a residual

interest is transferred to a disqualified

part of a month the tax remains unpaid.

interest in a REMIC to a disqualified

Instructions For Form 8831

Related Articles

Related forms

Related Categories