Fillable Form 8876 - Excise Tax On Structured Settlement Factoring Transactions (Page 2 of 2) in pdf

Form 8876 (Rev. 12-2011)

Page

• Finds that the transfer of structured

due. This penalty will not be imposed if

You are not required to provide the

settlement payment rights does not

you have reasonable cause for not filing on

information requested on a form that is

contravene any federal or state statute or

time. If you do, attach an explanation.

subject to the Paperwork Reduction Act

the order of any court or responsible

unless the form displays a valid OMB

Late payment of tax. Generally, the

administrative authority, and is in the best

control number. Books or records relating

penalty for not paying tax when due is

interest of the payee, taking into account

to a form or its instructions must be

of 1% of the unpaid amount, up to a

the welfare and support of the payee’s

retained as long as their contents may

maximum of 25%, for each month or part

dependents and

become material in the administration of

of a month the tax remains unpaid. The

any Internal Revenue law. We ask for the

penalty is imposed on the net amount due.

information on this form to carry out the

• Is issued under the authority of an

This penalty will not be imposed if you

tax laws of the United States. We need it

applicable state statute by an applicable

have reasonable cause for not paying on

to figure and collect the right amount of

state court, or by the responsible

time.

tax. If you do not file a return, do not

administrative authority (if any) that has

Additional Information

provide the information we ask for, or

exclusive jurisdiction over the underlying

provide fraudulent information, you may

action or proceeding that was resolved by

For more details, see section 5891 and

be charged penalties and be subject to

means of the structured settlement.

Regulations section 157.5891-1.

criminal prosecution.

Who Must File

Generally, tax returns and return

Specific Instructions

information are confidential, as required by

Generally, you must file Form 8876 if you

section 6103. However, section 6103

acquire directly or indirectly structured

Name and address. Enter the name

allows or requires the Internal Revenue

settlement payment rights in a structured

shown on your most recently filed federal

Service to disclose or give the information

settlement factoring transaction entered

income tax return. Include the suite, room,

shown on your tax return to others as

into after February 21, 2002. However, do

apartment, or other unit number after the

described in the Code. For example, we

not file Form 8876 if the transfer of

street address. If the Post Office does not

may disclose your tax information to the

structured settlement payment rights was

deliver mail to the street address and the

Department of Justice to enforce the tax

approved in advance in a qualified order,

taxpayer has a P.O. box, show the box

laws, both civil and criminal, and to cities,

as no excise tax is due.

number instead of the street address.

states, the District of Columbia, U.S.

Identifying number. If you are an

When To File

commonwealths or possessions, and

individual, enter your social security

certain foreign governments to carry out

number. Other filers should enter their

File Form 8876 by the 90th day following

their laws. We may also disclose this

employer identification number.

the receipt of structured settlement

information to other countries under a tax

payment rights in a structured settlement

Line 5. Tax paid with Form 7004. If you

treaty, to federal and state agencies to

factoring transaction.

enforce federal nontax criminal laws, or to

filed Form 7004 for the payment rights

federal law enforcement and intelligence

received on the date shown on the top of

If you need more time, file Form 7004,

agencies to combat terrorism.

this Form 8876, enter the amount of tax

Application for Automatic Extension of

paid, if any, when you filed that extension

Time To File Certain Business Income Tax,

Please keep this notice with your

application.

Information, and Other Returns, by the due

records. It may help you if we ask you for

date of Form 8876. Form 7004 does not

other information. If you have any

Line 6. Tax due. Make your check or

extend the time for payment of tax.

questions about the rules for filing and

money order payable to “United States

giving information, please call or visit any

Treasury.” Write your name, address,

Where To File

Internal Revenue Service office.

identifying number, and “Form 8876” on

the check or money order.

The time needed to complete and file

File Form 8876 with the Internal Revenue

this form will vary depending on individual

Line 7. Overpayment. The IRS will refund

Service Center, Cincinnati, OH 45999.

circumstances. The estimated average

the amount on line 7 (to the extent you

Rounding Off to Whole

time is:

owe no other taxes).

Dollars

Recordkeeping .

3 hr., 6 min.

Signature. For information on who must

sign Form 8876, see the instructions for

Learning about the law

You can round off cents to whole dollars

the signature section of your federal

or the form

. 1 hr., 12 min.

on your return and schedules. If you do

income tax return.

Preparing, copying, assembling, and

round to whole dollars, you must round all

sending the form to the IRS 1 hr., 17 min.

amounts. To round, drop amounts under

Privacy Act and Paperwork Reduction

50 cents and increase amounts from 50 to

Act Notice. These Acts require that when

If you have comments concerning the

99 cents to the next dollar. For example,

accuracy of these time estimates or

we ask you for information we must first

$1.39 becomes $1 and $2.50 becomes $3.

suggestions for making this form simpler,

tell you our legal right to ask for the

If you have to add two or more amounts

we would be happy to hear from you. You

information, why we are asking for it, and

to figure the amount to enter on a line,

can write to the Internal Revenue Service,

how it will be used. We must also tell you

Tax Products Coordinating Committee,

include cents when adding the amounts

what could happen if we do not receive it

SE:W:CAR:MP:T:M:S, 1111 Constitution

and round off only the total.

and whether your response is voluntary,

Ave. NW, IR-6526, Washington, DC 20224.

required to obtain a benefit, or mandatory

Amended Return

Do not send the tax form to this address.

under the law.

Instead, see Where To File on this page.

Our legal right to ask for information is

To amend a previously filed Form 8876,

sections 6001, 6011, and 6012(a) and their

file a corrected Form 8876 and write

regulations, which require you to file a

“Amended” at the top of the form.

return or statement with us for any tax for

Interest and Penalties

which you are liable. Your response is

mandatory under these sections. Section

Interest. Interest is charged on taxes not

6109 requires you to provide your

paid by the due date at a rate determined

identifying number. This is so we know

under section 6621.

who you are, and can process your return

and other papers. You must fill in all parts

Late filing of return. Generally, a penalty

of the tax form that apply to you.

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

maximum of 25%, is imposed on the net

amount due if Form 8876 is not filed when

Form 8876 - Excise Tax On Structured Settlement Factoring Transactions Page 2

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