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

Form 8876 (Rev. 12-2013)

Page

Privacy Act and Paperwork Reduction Act

Late payment of tax. Generally, the penalty

• Finds that the transfer of structured

Notice. We ask for the information on this

settlement payment rights does not

for not paying tax when due is 1 /2 of 1% of

form to carry out the Internal Revenue laws of

contravene any federal or state statute or the

the unpaid amount, up to a maximum of 25%,

the United States. We need it to figure and

order of any court or responsible

for each month or part of a month the tax

collect the right amount of tax. If you do not

administrative authority, and is in the best

remains unpaid. The penalty is imposed on

file a return, do not provide the information we

interest of the payee, taking into account the

the net amount due. This penalty will not be

ask for, or provide fraudulent information, you

welfare and support of the payee’s

imposed if you have reasonable cause for not

may be subject to penalties.

dependents; and

paying on time.

Our legal right to ask for information is

• Is issued under the authority of an

Additional Information

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

applicable state statute by an applicable state

regulations, which require you to file a return

For more details, see section 5891 and

court, or by the responsible administrative

or statement with us for any tax for which you

authority (if any) that has exclusive jurisdiction

Regulations section 157.5891-1.

are liable. Your response is mandatory under

over the underlying action or proceeding that

Specific Instructions

these sections. Section 6109 requires you to

was resolved by means of the structured

provide your identifying number. You must fill

settlement.

Name and address. Enter the name shown

in all parts of the form that apply to you.

on your most recently filed federal income tax

Who Must File

You are not required to provide the

return. If the Post Office does not deliver mail

Generally, you must file Form 8876 if you

information requested on a form that is

to the street address and you have a P.O.

acquire directly or indirectly structured

subject to the Paperwork Reduction Act

box, show the box number instead of the

settlement payment rights in a structured

unless the form displays a valid OMB control

street address.

settlement factoring transaction entered into

number. Books or records relating to a form

Foreign Address. Follow the country's

after February 21, 2002. However, do not file

or its instructions must be retained as long as

practice for entering the postal code. In some

Form 8876 if the transfer of structured

their contents may become material in the

countries the postal code may come before

settlement payment rights was approved in

administration of any Internal Revenue law.

the city or town name. Enter the full name of

advance in a qualified order, as no excise tax

We ask for the information on this form to

the country using uppercase letters in English.

is due.

carry out the tax laws of the United States.

Identifying number. If you are an individual,

When To File

Generally, tax returns and return

enter your social security number. Other filers

information are confidential, as required by

File Form 8876 by the 90th day following the

should enter their employer identification

section 6103. However, section 6103 allows

receipt of structured settlement payment

number.

or requires the IRS to disclose or give the

rights in a structured settlement factoring

Line 5. Tax paid with Form 7004. If you filed

information shown on your tax return to

transaction.

Form 7004 for the payment rights received on

others as described there. For example, we

If you need more time, file Form 7004,

the date shown on the top of this Form 8876,

may disclose your tax information to the

Application for Automatic Extension of Time

enter the amount of tax paid, if any, when you

Department of Justice to enforce the tax laws,

To File Certain Business Income Tax,

filed that extension application.

both civil and criminal, and to cities, states,

Information, and Other Returns, by the due

the District of Columbia, and U.S.

Line 6. Tax due. Make your check or money

date of Form 8876. Form 7004 does not

commonwealths or possessions to administer

order payable to “United States Treasury.”

extend the time for payment of tax.

their tax laws. We may also disclose this

Write your name, address, identifying number,

information to other countries under a tax

and “Form 8876” on the check or money

Where To File

treaty, to federal and state agencies to

order.

Send Form 8876 to the following address:

enforce federal nontax criminal laws, or to

Line 7. Overpayment. The IRS will refund the

federal law enforcement and intelligence

Internal Revenue Service Center

amount on line 7 (to the extent you owe no

agencies to combat terrorism.

Cincinnati, OH 45999

other taxes).

The time needed to complete and file this

Rounding Off to Whole Dollars

Signature. For information on who must sign

form will vary depending on individual

Form 8876, see the instructions for the

You can round off cents to whole dollars on

circumstances. The estimated average time is:

signature section of your federal income tax

your return and schedules. If you do round to

Recordkeeping

3 hr., 6 min.

return.

whole dollars, you must round all amounts. To

Learning about the law

round, drop amounts under 50 cents and

Paid Preparer Use Only

or the form

1 hr., 12 min.

increase amounts from 50 to 99 cents to the

next dollar. For example, $1.39 becomes $1

Preparing, copying,

A paid preparer must sign Form 8876 and

and $2.50 becomes $3.

assembling, and sending

provide the information in the Paid Preparer

the form to the IRS

1 hr., 17 min.

If you have to add two or more amounts to

Use Only section at the end of the form if the

figure the amount to enter on a line, include

preparer was paid to prepare the form and is

If you have comments concerning the

cents when adding the amounts and round off

not an employee of the filing entity. The

accuracy of these time estimates or

only the total.

preparer must give you a copy of the form in

suggestions for making this form simpler, we

addition to the copy to be filed with the IRS.

would be happy to hear from you. You can

Amended Return

send your comments from

If you are a paid preparer, enter your

To amend a previously filed Form 8876, file a

formspubs/. Click on “More Information” and

Preparer Tax Identification Number (PTIN) in

corrected Form 8876 and write “Amended” at

then on “Comment on Tax Forms and

the space provided. If you work for a tax

the top of the form.

Publications.” You can also write to:

preparation firm, you must also enter the

firm's name, address, and EIN. However, you

Interest and Penalties

Internal Revenue Service

cannot use the PTIN of the tax preparation

Tax Forms and Publications

Interest. Interest is charged on taxes not paid

firm in place of your PTIN.

1111 Constitution Ave. NW

by the due date at a rate determined under

IR-6526

section 6621.

You can apply for a PTIN online or by filing

Washington, DC 20224

Late filing of return. Generally, a penalty of

Form W-12, IRS Paid Preparer Tax

Do not send the tax form to this address.

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

Identification Number (PTIN) Application and

Instead, see Where To File, earlier.

maximum of 25%, is imposed on the net

Renewal. For more information about applying

amount due if Form 8876 is not filed when

for a PTIN online, visit the IRS website at

due. This penalty will not be imposed if you

ptin.

have reasonable cause for not filing on time.

If you do, attach an explanation.

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

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