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دستورالعمل 8886

دستورالعمل های مربوط به فرم ۸۸۸۶، گزارش معاملات Disclosure

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Department of the Treasury  
Internal Revenue Service  
Instructions for Form 8886  
Reportable Transaction Disclosure Statement  
(Rev. October 2022)  
Section references are to the Internal Revenue  
during the course of a transaction is not  
required to file Form 8886 for any  
transaction other than a listed  
Definitions  
Code unless otherwise noted.  
Transaction  
Future Developments  
transaction (as defined below) or a  
transaction of interest (as defined later).  
A transaction includes all of the factual  
elements relevant to the expected tax  
For the latest information about  
treatment of any investment, entity,  
developments related to Form 8886 and  
Participation in a  
plan, or arrangement and it includes any  
its instructions, such as legislation  
series of steps carried out as part of a  
enacted after they were published, go to  
Reportable Transaction  
plan.  
A reportable transaction is a transaction  
described in one or more of the  
following categories.  
Substantially Similar  
General Instructions  
A transaction is substantially similar to  
another transaction if it is expected to  
Listed Transactions  
Which form and instructions to use.  
obtain the same or similar types of tax  
consequences and is either factually  
similar or based on the same or similar  
tax strategy. Receipt of an opinion  
regarding the tax consequences of the  
transaction is not relevant to the  
Use the latest Form 8886 with the latest  
Instructions for Form 8886 available on  
IRS.gov.  
A listed transaction is a transaction that  
is the same as or substantially similar to  
one of the types of transactions that the  
IRS has determined to be a tax  
Purpose of Form  
avoidance transaction. These  
transactions are identified by notice,  
regulation, or other form of published  
guidance as a listed transaction. For  
existing guidance, see Notice 2009-59,  
2009-31 I.R.B. 170, available at  
Use Form 8886 to disclose information  
for each reportable transaction in which  
you participated. See Participation in a  
determine if you participated in a  
reportable transaction. For more  
information on the disclosure rules, see  
Regulations section 1.6011-4.  
determination of whether the transaction  
is the same as or substantially similar to  
another transaction. Further, the term  
“substantially similar” must be broadly  
construed in favor of disclosure. See  
Regulations section 1.6011-4(c)(4) for  
examples.  
updates to this list, go to the IRS web  
and-Transactions. The listed  
Tax Benefit  
A tax benefit includes deductions,  
exclusions from gross income,  
Generally, you must file a separate  
Form 8886 for each reportable  
transactions will also be periodically  
updated in future issues of the Internal  
Revenue Bulletin. You can find a notice  
or ruling in the Internal Revenue Bulletin  
at IRS.gov/pub/irs-irbs/irbXX-YY.pdf,  
where XX is the two-digit year and YY is  
the two-digit bulletin number. For  
example, you can find Notice 2009-59,  
2009-31 I.R.B. 170, at IRS.gov/pub/irs-  
transaction. However, you may report  
more than one transaction on one form  
if the transactions are the same or  
substantially similar. See the definition  
nonrecognition of gain, tax credits,  
adjustments (or the absence of  
adjustments) to the basis of property,  
status as an entity exempt from federal  
income taxation, and any other tax  
consequences that may reduce a  
taxpayer's federal tax liability by  
affecting the amount, timing, character,  
or source of any item of income, gain,  
expense, loss, or credit.  
The fact that a transaction must be  
reported on this form does not mean the  
tax benefits from the transaction will be  
disallowed.  
Prohibited tax shelter transactions.  
Generally, the term "prohibited tax  
shelter transaction" means listed  
transactions, transactions with  
You have participated in a listed  
transaction if any of the following  
applies.  
Tax Structure  
The tax structure of a transaction is any  
fact that may be relevant to  
Your tax return reflects tax  
consequences or a tax strategy  
described in published guidance that  
lists the transaction.  
contractual protection, or confidential  
transactions. See the definitions of  
these categories below. There may be  
additional disclosure requirements for  
tax-exempt entities with respect to these  
types of transactions. If you are a  
tax-exempt entity and you are a party to  
a prohibited tax shelter transaction, you  
may be required to file Form 8886-T,  
Disclosure by Tax-Exempt Entity  
Regarding Prohibited Tax Shelter  
Transaction, in addition to filing Form  
8886. For more information, see the  
Instructions for Form 8886-T.  
understanding the purported or claimed  
federal income tax treatment of the  
transaction.  
You know or have reason to know  
that tax benefits reflected on your tax  
return are derived directly or indirectly  
from such tax consequences or tax  
strategy.  
Who Must File  
Any taxpayer, including an individual,  
trust, estate, partnership, S corporation,  
or other corporation, that participates in  
a reportable transaction and is required  
to file a federal tax return or information  
return must file Form 8886. However, a  
regulated investment company (RIC)  
(as defined in section 851) or an  
You are in a type or class of  
individuals or entities that published  
guidance treats as participants in a  
listed transaction.  
Exception. If you participated in a  
transaction that is the same as or  
substantially similar to the transaction  
described in Notice 2002-35, 2002-21  
investment vehicle that is at least 95%  
owned by one or more RICs at all times  
Sep 27, 2022  
Cat. No. 34911S  
   
I.R.B. 992, available at IRS.gov/pub/irs-  
irbs/irb02-21.pdf (tax avoidance using  
notional principal contracts), solely as a  
result of your direct or indirect interest in  
a pass-through entity, you are not  
required to disclose the transaction on  
Form 8886. For more information, see  
Notice 2006-16, 2006-9 I.R.B. 538,  
fee, related parties (as described in  
section 267(b) or 707(b)) will be treated  
as the same individual or entity.  
For individuals, at least $2 million in  
any single tax year or $4 million in any  
combination of tax years. (At least  
$50,000 for a single tax year if the loss  
arose from a section 988 transaction  
defined in section 988(c)(1) (relating to  
foreign currency transactions), whether  
or not the loss flows through from an S  
corporation or partnership).  
You have participated in a  
confidential transaction if your tax return  
reflects a tax benefit from the  
transaction and your disclosure of the  
tax treatment or tax structure of the  
transaction is limited as described  
above. If disclosure by a pass-through  
entity (partnership, S corporation, or  
trust) is limited, but disclosure by the  
partner, shareholder, or beneficiary is  
not limited, then the pass-through entity  
(but not the partner, shareholder, or  
beneficiary) has participated in the  
confidential transaction.  
For corporations (excluding S  
corporations), at least $10 million in any  
single tax year or $20 million in any  
combination of tax years.  
Confidential Transactions  
A confidential transaction is a  
transaction that is offered to you or a  
related party (as described in section  
267(b) or 707(b)) under conditions of  
confidentiality and for which you or a  
related party paid an advisor a minimum  
fee (defined below). A transaction is  
considered to be offered under  
For partnerships with only  
corporations (excluding S corporations)  
as partners (looking through any  
partners that are also partnerships), at  
least $10 million in any single tax year or  
$20 million in any combination of tax  
years, whether or not any losses flow  
through to one or more partners.  
Transactions With Contractual  
Protection  
conditions of confidentiality if the  
advisor places a limitation on your  
disclosure of the tax treatment or tax  
structure of the transaction and the  
limitation on disclosure protects the  
confidentiality of the advisor's tax  
strategies. The transaction is treated as  
confidential even if the conditions of  
confidentiality are not legally binding on  
you. See Regulations section  
A transaction with contractual protection  
is a transaction for which you have, or a  
related party (as described in section  
267(b) or 707(b)) has, the right to a full  
refund or partial refund of fees if all or  
part of the intended tax consequences  
from the transaction are not sustained. It  
also includes a transaction for which  
fees are contingent on your realization  
of tax benefits from the transaction. For  
exceptions and other details, see  
Regulations section 1.6011-4(b)(4) and  
Rev. Proc. 2007-20, 2007-7 I.R.B. 517,  
For all other partnerships and S  
corporations, at least $2 million in any  
single tax year or $4 million in any  
combination of tax years, whether or not  
any losses flow through to one or more  
partners or shareholders.  
For trusts, at least $2 million in any  
single tax year or $4 million in any  
combination of tax years, whether or not  
any losses flow through to one or more  
beneficiaries. (At least $50,000 for a  
single tax year if the loss arose from a  
section 988 transaction defined in  
section 988(c)(1) (relating to foreign  
currency transactions), whether or not  
the loss flows through from an S  
1.6011-4(b)(3) for more information.  
Minimum fee. For a corporation  
(excluding S corporations), or a  
partnership or trust in which all of the  
owners or beneficiaries are corporations  
(excluding S corporations), the  
You have participated in a  
minimum fee is $250,000. For all others,  
the minimum fee is $50,000.  
transaction with contractual protection if  
your tax return reflects a tax benefit from  
the transaction and, as described  
above, you have the right to a full or  
partial refund of fees or the fees are  
contingent. All facts and circumstances  
relating to the transaction will be  
corporation or partnership).  
Section 165 loss. For purposes of  
the above threshold amounts, a section  
165 loss is adjusted for any salvage  
value and for any insurance or other  
compensation received. However, a  
section 165 loss does not take into  
account offsetting gains, other income,  
or limitations. The full amount of a loss  
is taken into account in the year it was  
sustained, regardless of whether all or  
part of the loss enters into the  
The minimum fee includes all fees for  
a tax strategy, for advice (whether or not  
tax advice), or for the implementation of  
a transaction. Fees include payment in  
whatever form paid, whether in cash or  
in kind, for services to analyze the  
transaction (whether or not related to  
the tax consequences of the  
considered when determining whether a  
fee is refundable or contingent,  
including the right to reimbursements of  
amounts that the parties to the  
transaction), for services to implement  
the transaction, for services to  
transaction have not designated as fees  
or any agreement to provide services  
without compensation. If a pass-through  
entity (partnership, S corporation, or  
trust) has the right to a full or partial  
refund of fees or has a contingent fee  
arrangement, but the partner,  
document the transaction, and for  
services to prepare tax returns to the  
extent return preparation fees are  
unreasonable. You are treated as  
paying fees to an advisor if you know or  
should know that the amount you pay  
will be paid indirectly to the advisor,  
such as through a referral fee or  
computation of a net operating loss  
under section 172 or a net capital loss  
under section 1212 that is a carryback  
or carryover to another year. A section  
165 loss does not include any portion of  
a loss, attributable to a capital loss  
carryback or carryover from another  
year, that is treated as a deemed capital  
loss under section 1212.  
In determining whether a transaction  
results in a taxpayer claiming a loss that  
meets the threshold amounts over a  
combination of tax years as described  
above, only losses claimed in the tax  
year that the transaction is entered into  
shareholder, or beneficiary individually  
does not, then the pass-through entity  
(but not the partner, shareholder, or  
beneficiary) has participated in the  
transaction with contractual protection.  
fee-sharing arrangement. Fees do not  
include amounts paid to a person,  
including an advisor, in that person's  
capacity as a party to the transaction.  
The IRS will scrutinize all of the facts  
and circumstances in determining  
whether consideration received in  
connection with a confidential  
Loss Transactions  
A loss transaction is a transaction that  
results in your claiming a loss under  
section 165 (described later) if the  
amount of the section 165 loss is as  
follows.  
transaction constitutes fees. For  
purposes of determining the minimum  
Instructions for Form 8886 (Rev. October 2022)  
-2-  
 
and the 5 succeeding tax years are  
combined.  
transaction in the published guidance  
describing the transaction of interest.  
suspended during the period that the  
ruling request is pending.  
The types of losses included in this  
category are section 165 losses,  
including amounts deductible under a  
provision that treats a transaction as a  
sale or other disposition or otherwise  
results in a deduction under section  
165. However, this category does not  
include losses described in Rev. Proc.  
2013-11.  
Exceptions to Reportable  
Transaction Categories,  
Published Guidance  
A transaction is not considered a  
reportable transaction if the IRS makes  
a determination in published guidance  
that it is not subject to the reporting  
requirements. See Rev. Proc. 2004-67;  
Rev. Proc. 2004-68; Rev. Proc.  
Recordkeeping  
You must keep a copy of all documents  
and other records related to a reportable  
transaction. See Regulations section  
1.6011-4(g) for more details.  
When and How To File  
Attach Form 8886 to your income tax  
return or information return (including a  
partnership, S corporation, or trust  
return), including amended returns, for  
each tax year in which you participated  
in a reportable transaction. If a  
You have participated in a loss  
transaction if your tax return reflects a  
section 165 loss that equals or exceeds  
the applicable threshold amount. If you  
are a partner, shareholder, or  
2007-20; and Rev. Proc. 2013-11 for  
more information. The IRS may also  
determine by individual letter ruling that  
an individual letter ruling request  
satisfies the reporting requirements.  
See Request for Ruling, later, for more  
information on submitting a letter ruling  
request.  
reportable transaction results in a loss  
or credit carried back to a prior tax year,  
attach Form 8886 to an application for  
tentative refund (Form 1045 or 1139) or  
amended return for the carryback years.  
Initial year Form 8886 filers must file  
exact copy with OTSA. You must file  
(via mail or fax) an exact copy of an  
initial Form 8886 with the Office of Tax  
Shelter Analysis (OTSA).  
beneficiary of a pass-through entity  
(partnership, S corporation, or trust),  
you have participated in a loss  
transaction if your tax return reflects a  
section 165 loss allocable to you from  
the pass-through entity (disregarding  
netting at the entity level) that equals or  
exceeds the applicable threshold  
amount. For this purpose, a tax return is  
deemed to reflect the full amount of the  
section 165 loss allocable to the  
taxpayer, regardless of whether all or  
part of the loss enters in the  
Shareholders of Foreign  
Corporations  
Special rules apply to determine  
whether a reporting shareholder of a  
foreign corporation participated in a  
reportable transaction. A reporting  
shareholder means a U.S. shareholder  
in a controlled foreign corporation, or a  
10% shareholder (by vote or value) of a  
qualified electing fund. For all  
Via mail. You may mail the exact copy  
to:  
computation of a net operating loss  
under section 172 or net capital loss  
under section 1212 that the taxpayer  
may carry back or carry over to another  
year.  
Internal Revenue Service  
OTSA Mail Stop 4915  
1973 Rulon White Blvd.  
Ogden, UT 84201  
categories of reportable transactions  
except transactions of interest, a  
reporting shareholder participates in a  
reportable transaction if the foreign  
corporation would be considered to  
participate in the transaction if it were a  
domestic corporation filing a tax return  
reflecting items from the transaction. A  
reporting shareholder of a foreign  
corporation participates in a transaction  
of interest if the published guidance  
identifying the transaction includes the  
reporting shareholder among the types  
or classes of individuals or entities  
identified as participants. See  
Transactions of Interest  
A transaction of interest is a transaction  
that is the same as or substantially  
similar to one of the types of  
Via fax. You may fax the exact copy to  
844-253-2553.  
This fax number is not for general  
use; taxpayers should not use this  
number for anything besides sending  
the exact copy of Form 8886 (and  
accompanying materials). Other  
submissions received via this fax  
number will not be processed  
transactions that the IRS has identified  
by notice, regulation, or other form of  
published guidance as a transaction of  
interest. It is a transaction that the IRS  
and Treasury Department believe has a  
potential for tax avoidance or evasion,  
but for which there is not enough  
Send only one exact copy of Form  
8886 per fax  
Regulations section 1.6011-4(c)(3)(i)(G)  
for details.  
information to determine if the  
transaction should be identified as a tax  
avoidance transaction. The requirement  
to disclose transactions of interest  
applies to transactions of interest  
entered into after November 1, 2006.  
For existing guidance, see Notice  
2009-55, 2009-31 I.R.B. 170, available  
updates to this list, go to the IRS web  
A maximum of 100 pages can be  
faxed to the fax number listed above.  
Request for Ruling  
You must also file the original Form  
You may request a ruling from the IRS  
to determine whether a transaction must  
be disclosed. The request for a ruling  
must be submitted to the IRS by the  
date Form 8886 would otherwise be  
required to be filed. See Regulations  
section 1.6011-4(f). See Rev. Proc.  
2022-1, as modified by Rev. Proc.  
2022-10, for procedures to obtain  
letter rulings. The procedures are  
generally updated every year and  
you should consult the new Revenue  
Procedure issued every year. The  
potential obligation of the taxpayer to  
disclose the transaction will not be  
8886 with your tax return.  
The IRS will not provide a  
confirmation or receipt. Please check  
your fax transmission log to verify that  
all the Form 8886 pages were sent.  
Keep a copy of your fax transmission  
log as your confirmation or receipt.  
The IRS may issue a new, or update the  
existing, notice, regulation, or other form  
of guidance that identifies a transaction  
as a transaction of interest.  
The fax cover sheet should include  
the following.  
Subject: Form 8886  
Sender's name, title, phone number,  
address  
You have participated in a  
Taxpayer's name  
transaction of interest if you are one of  
the types or classes of individuals or  
entities identified as participants in the  
Date  
Instructions for Form 8886 (Rev. October 2022)  
-3-  
     
Number of pages faxed (including  
8886 to the first tax return you file after  
penalty for failure to include information  
cover sheet)  
the date the transaction became a listed with respect to a reportable transaction  
Do not include sensitive information on  
the cover sheet, such as employer  
identification number or social security  
number.  
information.  
Electronic return filers. If you file your  
income tax return electronically, the  
exact copy you send (mail or fax) to  
OTSA must show exactly the same  
information, word for word, provided  
with the electronically filed return and it  
must be provided on the official IRS  
Form 8886 or an exact copy of the form.  
If you use a computer-generated or  
substitute Form 8886, it must be an  
exact copy of the official IRS form. See  
the instructions for your income tax  
return for information on electronic filing  
and substitute forms.  
transaction. Also file Form 8886 with  
OTSA as provided in Initial year Form  
OTSA, earlier.  
is 75% of the reduction in the tax  
reported on the income tax return as a  
result of participation in the transaction  
or that would result if the transaction  
were respected for federal tax  
Listed transaction entered into  
after August 2, 2007. If you entered  
into a transaction after August 2, 2007,  
that later becomes a listed transaction,  
then you must file Form 8886 with  
OTSA within 90 days after the date on  
which the transaction became a listed  
transaction.  
purposes, but not less than $5,000 in  
the case of an individual and $10,000 in  
any other case. The annual maximum  
penalty for failure to disclose a  
reportable transaction, other than a  
listed transaction, cannot exceed  
$10,000 in the case of an individual, and  
$50,000 in any other case. The  
Transaction of interest entered  
into after November 1, 2006. If you  
maximum annual penalty for failure to  
include information with respect to a  
entered into a transaction after  
November 1, 2006, that later becomes a listed transaction is $100,000 in the  
transaction of interest, then you must file case of an individual and $200,000 in  
Form 8886 with OTSA within 90 days  
after the date on which the transaction  
became a transaction of interest.  
any other case. This penalty is in  
addition to any other penalty that may  
be imposed. For information, see  
section 6707A and Regulations section  
301.6707A-1.  
However, the published guidance  
under which the transaction becomes a  
listed transaction or transaction of  
interest may also provide the time for  
filing Form 8886. You must file Form  
8886 in the time and in the manner  
stated above regardless of whether you  
participated in the transaction in the  
year in which the transaction became a  
listed transaction or transaction of  
interest.  
If you have a reportable transaction  
understatement, an accuracy-related  
penalty may be imposed under section  
6662A. This penalty applies to the  
amount of the understatement that is  
attributable to any listed transaction and  
any reportable transaction (other than a  
listed transaction) with a significant tax  
avoidance purpose. The penalty  
Special Filing Rules  
60-Day OTSA Extension  
If you are a partner in a partnership,  
shareholder in an S corporation, or  
beneficiary of a trust who receives a  
timely Schedule K-1 less than 10  
calendar days before your return due  
date (including extensions) and, based  
on receipt of the timely Schedule K-1,  
you determine that you participated in a  
reportable transaction, Form 8886 will  
not be considered late if you file Form  
8886 with OTSA within 60 days after the  
due date of your return including  
extensions.  
increases for transactions that are not  
disclosed on Form 8886 in accordance  
with these instructions. If the transaction  
is not disclosed and a reportable  
Subsequent Loss Transactions  
If a transaction becomes a loss  
transaction understatement exists, you  
may not have a reasonable cause and  
good faith defense under section  
6664(d) with respect to the  
transaction because the losses equal or  
exceed the threshold amounts  
described earlier in Loss Transactions,  
Form 8886 must be filed as an  
accuracy-related penalty under section  
6662A. For more information, see  
section 6662A and Notice 2005-12,  
2005-7 I.R.B. 494, available at  
attachment to your income tax return or  
information return for the first tax year in  
which the threshold amount is reached  
and to any subsequent income tax  
return or information return that reflects  
any amount of section 165 loss from the  
transaction.  
Designation as a Listed  
Transaction and/or Transaction of  
Interest After Filing Tax Return  
A penalty under section 6707A is  
assessed for each failure by any  
individual or entity required to file a  
Form 8886 if the individual or entity (a)  
fails to attach Form 8886 to the  
If a transaction becomes a listed  
transaction or a transaction of interest  
after you file a tax return (including an  
amended return) reflecting your  
Multiple Disclosures  
appropriate original return, amended  
return, or application for tentative  
refund; (b) fails to file the form with  
OTSA, if required; or (c) files a form that  
fails to include all the information  
required (or includes incorrect  
If you are required to file Form 8886,  
you must do so regardless of whether  
you also plan to disclose the transaction  
under other published guidance, for  
example, Regulations section  
1.6662-3(c)(2).  
participation in the listed transaction or  
transaction of interest and before the  
running of the period of limitations for  
assessment of tax for any tax year in  
which you participated in the listed  
transaction or transaction of interest,  
then you must file Form 8886 according  
to the following rules.  
information). The Form 8886 must be  
completed in its entirety with all required  
attachments to be considered complete.  
Do not enter “Information provided upon  
request” or “Details available upon  
request,” or any similar statement in the  
space provided. Inclusion of any such  
statements subjects you to penalty  
under sections 6707A and 6662A.  
Penalties  
There is a monetary penalty under  
section 6707A for the failure to include  
on any return or statement any  
Listed transaction entered into  
before August 3, 2007. If you entered  
into a transaction before August 3,  
2007, that later becomes a listed  
information required to be disclosed  
under section 6011 with respect to a  
reportable transaction. Generally, the  
transaction, then you must attach Form  
Instructions for Form 8886 (Rev. October 2022)  
-4-  
If you are required to pay a  
penalty under section 6707A or  
section 6662A, you may be  
include the following statement signed  
under penalties of perjury by the  
“See Attached” on the form and provide  
all the information on an attached  
statement.  
!
CAUTION  
taxpayer and, if applicable, the paid  
preparer of Form 8886: “Under penalties  
of perjury, I declare that I have  
required to disclose them on reports  
filed with the Securities and Exchange  
Commission. If you do not disclose  
these penalties, you may incur  
Item A  
examined this reportable transaction  
disclosure statement and, to the best of  
my knowledge and belief, this  
If you file more than one Form 8886 with  
your return, sequentially number each of  
these forms and enter the statement  
number for this Form 8886 (for example,  
statement number 1 of 3).  
additional penalties under section  
6707A(e). For more information, see  
section 6707A(e) and Rev. Proc.  
2005-51, 2005-33 I.R.B. 296, available  
amplified by Rev. Proc. 2007-25,  
2007-12 I.R.B. 761, available at  
reportable transaction disclosure  
statement is true, correct, and complete.  
Declaration of preparer (other than the  
taxpayer) is based on all information of  
which the preparer has any knowledge.”  
Separate Forms 8886 and separate  
cover letters must be submitted for each  
tax year for which you participated in the  
undisclosed listed transaction. You  
must also submit a copy of the form and  
cover letter simultaneously to OTSA at  
the OTSA address under When and  
How To File, earlier. See Rev. Proc.  
2005-26 for additional guidance.  
Item B  
Enter the form number and year of the  
tax return with which this Form 8886 is  
filed (for example, Form 1040). If the tax  
return has a calendar tax year, enter the  
year shown on the return (for example,  
2007). If it is a fiscal year return, enter  
the date the fiscal year ends using the  
MM/DD/YYYY format (for example,  
06/30/2008).  
Previously Undisclosed Listed  
Transactions  
If you are required to disclose a listed  
transaction and fail to do so within the  
time and manner prescribed under  
section 6011 and the related  
regulations, then under section 6501(c)  
(10) the period to assess any tax with  
respect to the listed transaction will be  
extended beyond the normal  
Item C  
Specific Instructions  
Check all the box(es) that apply.  
Initial year filer. If this is the first year  
that you are filing a Form 8886 to  
disclose this transaction, check this box  
and file a duplicate copy of the form with  
OTSA (see When and How To File,  
earlier).  
How To Complete  
assessment period until 1 year after the  
earlier of either:  
Form 8886  
In order to be considered complete,  
Form 8886 must be completed in its  
entirety with all required attachments.  
To be considered complete, the  
The date you disclose the transaction  
by filing Form 8886 in the manner  
prescribed in Rev. Proc. 2005-26,  
2005-17 I.R.B. 965, available at  
subsequently published guidance); or  
Protective disclosure. You may  
indicate that you are filing on a  
information provided on the form must  
describe the expected tax treatment  
and all potential tax benefits expected to  
result from the transaction, describe any  
tax result protection with respect to the  
transaction, and identify and describe  
the transaction in sufficient detail for the  
IRS to be able to understand the tax  
structure of the reportable transaction  
protective basis by checking this box  
(under the option provided in  
The date that a material advisor  
provides the information required under  
section 6112 in response to a request  
by the IRS under section 6112.  
Regulations section 1.6011-4(f)).  
Generally, the IRS will not treat a Form  
8886 filed on a protective basis any  
differently from other Forms 8886. An  
incomplete form containing a statement  
that information will be provided on  
request is not a complete disclosure  
statement. For a protective disclosure to  
be effective, you must properly  
Section 6501(c)(10) is effective for  
tax years with respect to which the  
limitations period on assessment did not and identify all parties involved in the  
expire prior to October 22, 2004.  
transaction. A Form 8886 containing a  
statement that information will be  
Section 6501(c)(10) does not revive an  
assessment period that expired prior to  
provided upon request is not considered  
complete and file Form 8886 and  
provide all required information. See  
October 22, 2004. For more information, a complete disclosure statement. If  
see Rev. Proc. 2005-26.  
Form 8886 is not completed in  
accordance with these instructions and  
Regulations section 1.6011-4, you will  
not be considered to have complied with  
the disclosure requirements. If you  
receive one or more reportable  
transaction numbers for a reportable  
transaction, you must include the  
reportable transaction numbers on Form  
8886.  
If you are filing Form 8886 to disclose  
a previously undisclosed listed  
Line 1a  
transaction for purposes of section  
6501(c)(10), submit the form and a  
cover letter to the Internal Revenue  
Service Center where your original tax  
return was filed. Write across the top of  
page 1 of each Form 8886 the following  
statement: “Section 6501(c)(10)  
Enter the name, if any, by which the  
transaction is known or commonly  
referred to. If no name exists, provide a  
short identifying description of this  
transaction that distinguishes it from  
other reportable transactions in which  
you have participated (or may  
Disclosure” followed by the tax year and  
tax return to which the disclosure  
statement applies. For example, if the  
Form 8886 relates to your Form 1040  
for the 2002 tax year, you must include  
the following statement: “Section  
If the information required exceeds  
the space provided, complete as much  
information as possible in the available  
space and attach the remaining  
participate in the future). If you are  
reporting more than one transaction and  
the transactions have different names,  
enter all names in the space provided. If  
additional space is needed, write “See  
Additional List” and attach a list.  
information on additional sheets. The  
additional sheets must be in the same  
order as the lines to which they  
6501(c)(10) Disclosure; 2002 Form  
1040” on the form. The cover letter must correspond. You must also include your  
identify the tax return to which the  
disclosure statement relates and  
name and identifying number at the top  
of each additional sheet. Do not write  
Instructions for Form 8886 (Rev. October 2022)  
-5-  
 
advisor, in that person's capacity as a  
party to the transaction.  
Line 1b  
Line 3  
Enter the first year that you participated  
in this transaction in year format  
(YYYY). If you are reporting for more  
than one transaction, enter all initial  
years in the space provided. If  
Identify the notice, revenue ruling,  
regulation, announcement, or other  
published guidance that identified the  
transaction as a listed transaction or a  
transaction of interest. For listed  
transactions, identify the guidance as  
shown in Notice 2009-59, or later IRS  
guidance.  
Line 7a  
Please check the box representing the  
type of tax benefit the transaction will  
reflect on your tax return. There may be  
more than one tax benefit to your  
transaction. A tax benefit includes, but is  
not limited to, the following: deductions,  
exclusions from gross income,  
additional space is needed, write “See  
Additional List” and attach a list.  
Note. This may not be the same as the  
year for which you are disclosing a  
reportable transaction.  
Line 4  
nonrecognition of gain, tax credits,  
adjustments (or absence of  
Do not report more than one transaction  
on this form unless the transactions are  
the same or substantially similar. See  
adjustments) to the basis of property,  
status as an entity exempt from federal  
income taxation, and any other tax  
consequences that may reduce a  
taxpayer's federal income tax liability by  
affecting the amount, timing, character,  
or source of any item of income, gain,  
expense, loss, or credit. Check the  
“Other” box for tax benefits not  
Line 1c  
Enter the 9-digit and/or 11-digit number  
provided to you. This number may be  
referred to as a registration number or  
reportable transaction number and may  
begin with the letters “MA.” Reportable  
transactions can have more than one  
number. If you have more than one  
number for this transaction, include all  
numbers in the space provided. If  
Line 5  
If you participated in the transaction  
through other entities, indicate whether  
each entity is a partnership, S  
corporation, or trust. In addition, if the  
entity is foreign, check the box for  
“Foreign.” On line 5b, provide the full  
name of the entity. On line 5c, enter the  
entity's EIN (if known). Use hyphens  
when entering the EIN. On line 5d, enter  
the date you received the Schedule K-1  
from the entity. Enter “none” if  
specifically identified by a box and  
identify the tax benefits in the space  
provided (for example, status as an  
entity exempt from federal income  
taxation). If you need more space,  
follow the instructions under How To  
Complete Form 8886, earlier.  
additional space is needed, write “See  
Additional List” and attach a list.  
Reportable transaction numbers  
(formerly known as tax shelter  
registration numbers or registration  
numbers) are issued to material  
advisors who file a statement disclosing  
a reportable transaction under section  
6111. Material advisors are required to  
provide this number to investors/  
advisees.  
Schedule K-1 was not received. If you  
are reporting more than one entity, use  
a separate column for each entity.  
Attach additional sheets for more than  
two entities.  
Line 7b  
Tax benefit(s) from the transaction is the  
total anticipated dollar amount of all  
items checked in line 7a, over the entire  
anticipated life of the transaction.  
Line 6  
Line 2  
Enter the name, address, and social  
security number (SSN) or EIN (if known)  
for each individual or entity to whom you  
paid a fee with regard to the transaction  
if that individual or entity promoted,  
solicited, or recommended your  
Line 7c  
Check the box(es) for all categories that  
apply to the transaction being reported.  
The reportable transaction categories  
are described under Participation in a  
Enter the number of tax years you  
anticipate it will take for you to claim the  
above total tax benefits from this  
transaction.  
participation in the transaction, or  
Line 7d  
Note. The category for brief asset  
holding period has been eliminated for  
transactions entered into on or after  
August 3, 2007. However, this does not  
relieve taxpayers of any disclosure  
obligations for brief asset holding  
transactions that were entered into  
before August 3, 2007. The rules for  
brief asset holding period reportable  
transactions entered into before August  
3, 2007, are contained in Regulations  
section 1.6011-4 in effect prior to  
August 3, 2007.  
provided tax advice related to the  
Total investment or basis in the  
transaction is the total of the amounts  
you paid related to this transaction that  
includes cash, fair market value of  
property or services transferred or  
acquired, adjustments to basis,  
valuation of notes, obligations, shares,  
or other securities.  
transaction. Also, enter the approximate  
fees paid to each of the individuals or  
entities. These fees include payment in  
whatever form, whether in cash or in  
kind, for a tax strategy or for advice  
(whether or not tax advice). Fees also  
include consideration for services to:  
Analyze the transaction (whether or  
not related to the tax consequences of  
the transaction),  
Line 7e  
Implement the transaction,  
Describe the reportable transaction you  
entered into and the relevant facts and  
tax benefits for all affected years that  
caused the transaction to be reportable.  
Describe each step of the transaction,  
including all information known to you.  
Include in your description other parties  
to the transaction and, if known,  
Document the transaction, or  
Prepare tax returns to the extent the  
If the transaction is a listed  
return preparation fees are  
unreasonable.  
transaction or transaction of  
!
CAUTION  
interest, you must check the  
listed transaction box or transaction of  
interest box in addition to any others  
that may apply.  
You are also treated as paying fees  
to an advisor if you know or should  
know that an amount you paid will be  
paid indirectly to the advisor, such as  
through a referral fee or fee-sharing  
arrangement. A fee does not include  
amounts paid to a person, including an  
assumptions of liabilities or other  
obligations, satisfaction of liabilities or  
obligations, sales of property or  
interests in property, the formation and  
Instructions for Form 8886 (Rev. October 2022)  
-6-  
dissolution of entities, and any  
If you checked box 2c, describe the  
control number. Books or records  
relating to a form or its instructions must  
be retained as long as their contents  
may become material in the  
agreements between or among parties  
terms of the contractual protection. See  
to the transaction. Also describe any tax Regulations section 1.6011-4(b)(4) for  
result protection with respect to the  
transaction. The term “tax result  
protection” includes insurance company  
and other third-party products  
more details.  
administration of any Internal Revenue  
law. Generally, tax returns and return  
information are confidential, as required  
by section 6103.  
If you checked box 2d, explain how  
you calculated the basis of the asset for  
which there was a loss.  
commonly described as tax result  
insurance. Include, if known, the  
relevant dates and the amounts  
involved in the steps described.  
Amounts involved include cash, fair  
market value of property or services  
transferred or acquired, adjustments to  
basis, valuation of notes, obligations,  
shares, or other securities. Describe, if  
known, the relationship between the  
steps of the transaction and how each  
step relates to why the transaction is  
reportable. Your description should  
include the relevance, if known, of any  
party (including but not limited to  
participants in the transaction) listed in  
line 8.  
If you need more space, follow the  
instructions under How To Complete  
Form 8886, earlier.  
The time needed to complete and file  
this form will vary depending on  
individual circumstances. The estimated  
burden for individual taxpayers filing this  
form is approved under OMB control  
number 1545-0074 and is included in  
the estimates shown in the instructions  
for their individual income tax return.  
The estimated burden for all other  
taxpayers who file this form is shown  
below.  
Line 8  
List all individuals involved in the  
transaction. List all tax-exempt, foreign,  
or related entities involved in the  
transaction. Check the applicable  
box(es) for the type of entity. Attach  
additional sheets where appropriate.  
Provide all information, including the  
name, EIN or SSN (include hyphens),  
and address, if known.  
Recordkeeping .  
Learning about the law or  
the form.  
Preparing, copying,  
assembling, and sending  
the form to the IRS  
.
.
.
.
.
.
10 hr., 16 min.  
4 hr., 50 min.  
Include a brief description of each  
listed individual's and each entity's  
involvement in the transaction  
.
.
.
.
.
.
.
.
.
.
.
Describe the economic and business  
reasons for the transaction and its  
structure. Describe market or business  
conditions creating the tax benefit(s) or  
consequence(s) and the transaction's  
financial reporting, if known.  
(purchaser, lender, seller, broker, etc.).  
Provide the country of incorporation or  
existence for each foreign entity, if  
known. Describe the relationship  
between you and any related entity and  
between or among any related entities  
(as described in section 267(b) or  
707(b)).  
.
.
.
.
6 hr., 25 min.  
If you have comments concerning the  
accuracy of these time estimates or  
suggestions for making this form  
simpler, we would be happy to hear  
from you. You can send us comments  
from IRS.gov/FormComments. Or you  
can write to the Internal Revenue  
Service, Tax Forms and Publications,  
1111 Constitution Ave. NW, IR-6526,  
Washington, DC 20224.  
If you checked box 2b, explain how  
your disclosure of information  
concerning the transaction was limited  
(for example, by contract or verbal  
agreement) and the nature and extent of  
the disclosure limitations. See  
Regulations section 1.6011-4(b)(3) for  
more details.  
Paperwork Reduction Act Notice.  
You are not required to provide the  
information requested on a form that is  
subject to the Paperwork Reduction Act  
unless the form displays a valid OMB  
Instructions for Form 8886 (Rev. October 2022)  
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