Formulaire 8918 Instructions
Instructions pour le formulaire 8918, Déclaration de divulgation du conseiller matériel
Rév. novembre 2021
Formulaires associés
- Formulaire 8918 - Énoncé de divulgation du conseiller matériel
Department of the Treasury
Internal Revenue Service
Instructions for Form 8918
Material Advisor Disclosure Statement
(Rev. November 2021)
Section references are to the Internal Revenue
Code unless otherwise noted.
Material advisors who file a Form 8918
will receive a reportable transaction
number from the IRS. Material advisors
must provide the reportable transaction
number to all taxpayers and material
advisors for whom the material advisor
acts as a material advisor. See Who Is a
Material Advisor below. Every taxpayer
who has participated in a reportable
transaction (see What Is a Reportable
Transaction, later) must also disclose the
transaction on Form 8886, Reportable
Transaction Disclosure Statement. For
more information, see Form 8886 and the
Instructions for Form 8886.
disclose the transaction under
Regulations section 1.6011-4 because the
transaction is or is reasonably expected to
become a reportable transaction other
than a listed transaction or transaction of
interest;
What's New
To more quickly and accurately process
information submitted to IRS, IRS is
incorporating 2D Barcode technology and
providing faster, more convenient
A material advisor who is required to
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disclose the transaction under section
6111 because the transaction is a listed
transaction or a transaction of interest; or
submission channels like electronic fax.
Form 8918 has been redesigned with 2D
Barcodes placed on Page 4, which will be
submitted with the rest of the form. 2D
Barcodes are capable of capturing a vast
amount of information, relieving material
advisors of the need to submit
A material advisor who you know is or
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reasonably expect to be required to
disclose the transaction under section
6111 because the transaction is or is
reasonably expected to become a
reportable transaction other than a listed
transaction or transaction of interest.
attachments to ensure all required
Who Must File?
information is provided. Faster processing
reduces the turnaround time for a material
advisor to receive a reportable transaction
number in response.
Generally, every material advisor to a
reportable transaction is required to file
Form 8918. A material advisor can be an
individual, trust, estate, partnership, or
corporation. You are not required to file
Form 8918 unless a taxpayer to whom or
for whose benefit you provided the tax
statement (defined below) entered into the
reportable transaction. If you provide a tax
statement to another material advisor, you
are not required to file Form 8918 unless
the reportable transaction is entered into
by a taxpayer to whom or for whose
benefit that material advisor provided the
tax statement.
Tax statement. Generally, a tax
statement is any statement (including
another person's statement), oral or
written, that relates to a tax aspect of a
transaction that causes the transaction to
be a reportable transaction. A tax
statement includes tax result protection
that insures some or all of the tax benefits
of a reportable transaction.
As a new practice, IRS will reject all
Forms 8918 filed incorrectly. Please
follow the below instructions to avoid
form rejection:
Only the specified current version of
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Form 8918 will be accepted:
2007, 2011, 2017, and 2021 versions
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Tax result protection Tax result
protection includes insurance company
and other third party products commonly
described as tax result insurance. For
more information, see Regulations
sections 301.6111-3(b)(2)(ii)(A) and
301.6111–3(c)(12).
will be accepted until or on June 1, 2022.
Only 2021 version will be accepted
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after June 1, 2022.
Form must not be handwritten.
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All instances of "See Attached" MUST
Who Is a Material Advisor?
be preceded with as much information as
the text box will allow.
You are a material advisor to a transaction
if you:
Threshold amount. The threshold
amount of gross income is $50,000 for a
reportable transaction that provides
substantially all of the tax benefits to
individuals (looking through any
on submitting Form 8918 through
electronic fax.
Provide any material aid, assistance, or
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advice with respect to the organizing,
managing, promoting, selling,
implementing, insuring, or carrying out any
reportable transaction, and
partnerships, S corporations, or trusts).
The determination of whether substantially
all of the tax benefits from a reportable
transaction are provided to individuals is
based on all the facts and circumstances.
Generally, if 70% or more of the tax
benefits (defined later) from a reportable
transaction are provided to individuals
(looking through any partnerships, S
corporations, or trusts) then substantially
all of the tax benefits will be considered to
be provided to individuals.
The IRS has created a page on
IRS.gov for information about Form 8918
Information about any future
You directly or indirectly receive or
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expect to receive gross income in excess
for the material aid, assistance, or advice.
developments affecting Form 8918 (such
as legislation enacted after we release it)
will be posted on that page.
You provide material aid, assistance, or
advice with respect to the organizing,
managing, promoting, selling,
Form 8918. Use the latest revision of
implementing, insuring, or carrying out any
transaction if you make or provide a tax
statement to or for the benefit of:
General Instructions
Purpose of Form
Material advisors to any reportable
transaction must disclose certain
information about the reportable
transaction by filing a Form 8918 with the
IRS.
A taxpayer who either is required to
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For all other transactions, the threshold
disclose the transaction under section
6011 because the transaction is a listed
transaction or a transaction of interest, or
would have been required to disclose the
transaction under section 6011 if the
transaction had become a listed
amount is $250,000. For listed
transactions, the threshold amounts are
reduced from $50,000 to $10,000 and
from $250,000 to $25,000. For
transactions of interest, the threshold
amounts may be reduced as identified in
the published guidance describing the
transaction. Determine the threshold
amount separately for each reportable
transaction or a transaction of interest
within the period of limitations;
Note. Form 8918 replaces Form 8264,
Application for Registration of a Tax
Shelter.
A taxpayer who you know is or
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reasonably expect to be required to
Dec 07, 2021
Cat. No. 50150N
transaction. The threshold amount must
be met independently for each transaction
that is a reportable transaction and
aggregation of fees among reportable
transactions is not required.
whose benefit that material advisor
provided a tax statement.
What Is a Reportable
Transaction?
If a transaction that was not a
A reportable transaction is a transaction
described in one or more of the following
categories. See Regulations section
1.6011-4(b) for more information.
reportable transaction is identified as a
listed transaction or a transaction of
interest in published guidance after the
occurrence of the 3 events described
In figuring the amount of gross income
you receive directly, or indirectly, for
material aid, assistance, or advice, include above, you will be treated as becoming a
Listed Transactions
all the following.
material advisor on the date the
transaction is identified as a listed
transaction or a transaction of interest.
Fees for a tax strategy.
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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 avoidance
transaction.
Fees for advice (whether or not tax
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advice).
You must make reasonable and good
Fees for implementing the reportable
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faith efforts to determine when the
transaction.
taxpayer entered into the transaction,
even if you stop providing services before
the taxpayer enters into the transaction.
Fees. Fees include consideration in
These transactions are identified by
notice, regulation, or other form of
published guidance as a listed
transaction. See Notice 2009-59 for
guidance.
whatever form paid, whether in cash or in
kind, for:
Post-filing advice. You are not
Services to analyze the transaction
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considered to be a material advisor
concerning a transaction if you do not
make or provide a tax statement about the
transaction until after the first tax return
reflecting tax benefit(s) of the transaction
is filed with the IRS. This exception does
not apply to you if it is expected the
taxpayer will file a supplemental or
amended return reflecting additional tax
benefits from the transaction.
(whether or not related to the tax
consequences of the transaction),
Services to implement the transaction,
Services to document the transaction,
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Go to IRS.gov/Businesses/
Transactions for the latest information and
guidance.
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and
Services to prepare tax returns to the
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extent return preparation fees are
unreasonable.
Confidential Transactions
A fee does not include amounts paid to
a person, including an advisor, in that
person's capacity as a party to the
A confidential transaction is a transaction
that is offered to a taxpayer or related
party (as described in section 267(b) or
707(b)) under conditions of confidentiality
and for which the taxpayer (or related
party) paid an advisor a minimum fee
(defined below).
Definitions
Transaction
transaction. For example, a fee does not
include reasonable charges for the use of
capital or the sale or use of property.
A transaction includes all factual elements
relevant to the expected tax treatment of
an investment, entity, plan, or
The IRS will scrutinize carefully all of
the facts and circumstances to determine
if consideration received or expected to be
received in connection with a reportable
transaction is gross income received
directly, or indirectly, for aid, assistance,
or advice.
arrangement and it includes any series of
steps carried out as part of a plan.
A transaction is considered to be
offered under conditions of confidentiality
if the advisor who is paid a minimum fee
places a limitation on the disclosure of the
tax treatment or tax structure of the
transaction and the limitation on
Substantially Similar
A transaction is substantially similar to
another transaction if it is expected to
obtain the same or similar types of tax
consequences and is either factually
similar or based on the same or similar tax
strategy.
Employee exception. Generally, you are
not considered to be a material advisor if
you make a tax statement solely in your
capacity as an employee, shareholder,
partner, or agent of another person. In this
case, any tax statement you make will be
considered to be made by your employer,
corporation, partnership, or principal.
However, you will be treated as a
material advisor if you form or use an
entity to avoid the rules of section 6111 or
6112 or the penalties under section 6707
or 6708.
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 the taxpayer. See
Regulations section 1.6011-4(b)(3) for
more information.
Receipt of an opinion regarding the tax
consequences of the transaction is not
relevant to determine if the transaction is
the same as or substantially similar to
another transaction. The term
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 minimum
fee is $250,000. For all others, the
minimum fee is $50,000.
substantially similar must be broadly
construed in favor of disclosure. See
Regulations section 1.6011-4(c)(4) for
examples.
Date you became a material advisor.
You are a material advisor when all of the
following have occurred (in no particular
order).
Tax Benefit
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
A tax benefit includes deductions,
You make a tax statement,
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exclusions from gross income,
You receive (or expect to receive) gross
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nonrecognition of gain, tax credits,
adjustments (or the absence of
income in excess of the threshold amount,
and
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 transaction is entered into by the
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transaction (whether or not related to the
tax consequences of the transaction), for
services to implement the transaction, for
services to document the transaction, and
taxpayer to whom or for whose benefit you
provided the tax statement, or in the case
of a tax statement provided to another
material advisor, when the transaction is
entered into by a taxpayer to whom or for
the amount, timing, character, or source of for services to prepare tax returns to the
any item of income, gain, expense, loss,
or credit.
extent return preparation fees are
unreasonable. A taxpayer is treated as
Instructions for Form 8918 Rev. 11-2021
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paying fees to an advisor if the taxpayer
knows or should know that the amount it
pays will be paid indirectly to the advisor,
such as through a referral fee or
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
Eliminated Categories
Transactions with a brief asset holding
period. The disclosure requirement for
this category has been eliminated for
transactions entered into after August 2,
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
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 transaction constitutes fees.
For purposes of determining the minimum
fee, related parties (as described in
section 267(b) or 707(b)) will be treated as
the same individual or entity.
transactions), whether or not the loss
flows through from an S corporation or
partnership).
Section 165 loss. For this purpose, a
section 165 loss is adjusted for any
salvage value and for any other insurance
compensation received. However, a
section 165 loss does not include
reportable transactions entered into
before August 3, 2007, are contained in
Regulations section 1.6011-4 in effect
prior to August 3, 2007.
offsetting gains, other income or
limitations. The full amount of a section
165 loss is included in the year it occurred,
regardless of whether all or part of it is
included in computing 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.
Transactions with a significant
book-tax difference. The disclosure
requirement for this category has been
eliminated. Transactions with a significant
book-tax difference that would have been
required to be disclosed with returns due
on dates (including extensions) after
January 5, 2006, are no longer reportable
transactions.
Transactions With Contractual
Protection
A transaction with contractual protection is
a transaction for which the taxpayer, or a
related party (as described in sections
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 the taxpayer's realization of
tax benefits from the transaction. See
Regulations section 1.6011-4(b)(4) and
Rev. Proc. 2007-20 for the latest
However, this does not relieve
taxpayers of any disclosure obligations for
significant book-tax difference
To determine if a transaction results in
a taxpayer claiming a loss that meets the
threshold amounts over a combination of
tax years, only losses claimed in the tax
year the transaction is entered into and the
5 succeeding tax years are combined.
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 (or future
published guidance).
transactions that should have been
disclosed on a return with a due date prior
to January 6, 2006. See Notice 2006-06.
information and guidance.
Exceptions to Reportable
Transaction Categories, Published
Guidance
Loss Transactions
A loss transaction is a transaction that
results in the taxpayer claiming a loss
under section 165 (described later) if the
amount of the section 165 loss is as
follows.
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
For individuals, at least $2 million in any
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requirements. For more information, see
the following.
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).
Rev. Proc. 2004-67;
Rev. Proc. 2004-68;
Rev. Proc. 2007-20; and
Rev. Proc. 2013-11.
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Transactions of Interest
A transaction of interest is a transaction
that is the same as or substantially similar
to one of the types of 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 information to determine if the
transaction should be identified as a tax
The IRS may also determine by
individual letter ruling that an individual
letter ruling request satisfies the reporting
requirements. See Request for Ruling
below for more details on submitting a
letter ruling request.
For corporations (excluding S
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corporations), at least $10 million in any
single tax year or $20 million in any
combination of tax years.
For partnerships with only corporations
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Request for Ruling
(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.
You may request a ruling from the IRS to
avoidance transaction. The requirement to determine whether a specific transaction
disclose transactions of interest applies to
transactions of interest entered into after
November 1, 2006. See Notice 2009-55,
Notice 2016-66, and Notice 2017-08 for
the latest information and guidance. The
is a reportable transaction. The potential
obligation of a material advisor and the
taxpayer to disclose the transaction will
not be suspended during the period that
the ruling request is pending. Therefore,
For all other partnerships and S
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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.
IRS may issue a new or update an existing even if you have a ruling request with the
notice, regulation, or other form of
guidance that identifies a transaction as a
transaction of interest.
IRS, you must still complete and file this
form in order to avoid potential penalties.
See Rev. Proc. 2017-1 for information on
ruling requests.
For trusts, at least $2 million in any
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single tax year or $4 million in any
Instructions for Form 8918 Rev. 11-2021
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transaction. A material advisor is not
required to identify an entity or individual
on the list if the entity or individual entered
into a listed transaction or a transaction of
interest more than 6 years before the
transaction was identified in published
guidance as a listed transaction or a
opinions, relating to each reportable
transaction that are material to an
understanding of the intended tax
treatment or tax structure of that
When To File
The material advisor's disclosure
statement must be filed with the Office of
Tax Shelter Analysis (OTSA) by the last
day of the month that follows the end of
the calendar quarter in which the advisor
became a material advisor with respect to
the reportable transaction or in which
circumstances occur to require an
transaction that the material advisor or any
related party or agent of the material
advisor has shown or provided to any
transaction of interest. A separate list must individual or entity (or to their
be prepared and maintained for each
transaction or group of substantially
similar transactions.
representatives, tax advisors, or agents)
who acquired or may acquire an interest in
the transaction. However, you are not
required to retain earlier drafts of a
document if you retain a copy of the final
document (or, if there is no final
document, the most recent draft of the
document) and the final document (or
most recent draft) contains all the
information in the earlier drafts of such
document that is material to an
amended disclosure statement. See Date
you became a material advisor., earlier.
The list must be maintained for 7 years
following the earlier of the date on which
the material advisor last made a tax
statement relating to the transaction, or
the date the transaction was last entered
into, if known. Upon IRS's written request,
each material advisor who is responsible
for maintaining a list must furnish the list to
the IRS. The list must be maintained in a
form that enables the IRS to determine
without undue delay or difficulty the
Where To File
For electronic fax (only to be used for
Form 8918 and related attachments;
other items will not be processed):
please fax to: 1-844-253-5607 (this is
toll-free). The fax cover sheet should
include the following:
understanding of the purported tax
treatment or the tax structure of the
transaction.
Subject: Form 8918
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Sender's name, title, phone number,
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street address
Material Advisor’s name
Date
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•
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information required to be maintained for
each list. See Regulations section
Dissolution or liquidation of material
advisor. Generally, if a material advisor
dissolves or liquidates before completion
of the 7-year list maintenance period, the
person responsible under state law for
winding up the entity's affairs must
Number of pages faxed (including
301.6112-1 for more information.
cover sheet)
Transactions for the latest information and
guidance.
Do not include sensitive information on
the cover sheet, such as Employer
Identification Number or Social Security
Number.
prepare, maintain, and furnish each
component of the list on behalf of the
entity, unless the entity submits the list to
OTSA within 60 days after the dissolution
or liquidation. See Regulations section
301.6112-1(d) for more information.
Contents of the list. Each list must
Fax may not exceed 100 pages.
contain the following.
If you do not have access to electronic
fax, mail your completed Form 8918 to:
1. An itemized statement containing:
a. The name of each reportable
transaction, the citation to the notice
number or published guidance number
identifying the transaction if the
transaction is a listed transaction or
transaction of interest, and the reportable
transaction number obtained under
section 6111;
b. The name, address, and identifying
number of each individual or entity
required to be included on the list;
c. The date on which each individual
or entity entered into the reportable
transaction, if known;
d. The amount invested in the
reportable transaction by each individual
or entity, if known;
e. A summary or schedule of the tax
treatment that each individual or entity is
intended or expected to derive from
participation in the reportable transaction;
and
Penalties
Internal Revenue Service
OTSA Mail Stop 4915
1973 Rulon White Blvd.
Ogden, Utah 84201
Penalty for Failure To Furnish
Information Regarding Reportable
Transactions
A penalty may be imposed if you are
required to file Form 8918 and you fail to
file the return on or before the due date, or
file false or incomplete information about a
reportable transaction.
A receipt will be provided confirming
form submission.
Furnishing a Reportable
Transaction Number
Receipt of a reportable transaction
number does not indicate that the IRS has
reviewed, examined, or approved the
transaction.
The penalty is $50,000 for reportable
transactions other than listed transactions.
The penalty imposed for listed
transactions is the greater of:
$200,000, or
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Material advisors must provide the
reportable transaction number to all
taxpayers and material advisors for whom
the material advisor acts as a material
advisor. The reportable transaction
number must be provided when the
transaction is entered into, or, if the
transaction is entered into before the
material advisor received the reportable
transaction number, within 60 calendar
days from the date the reportable
transaction number is mailed to the
material advisor.
50 percent of the gross income from
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providing aid, assistance, or advice about
the listed transaction before the date the
return is filed. If the failure is intentional,
the percentage is 75%.
For more information, see section
6707. Form 8918 must be completed in its
entirety with all required attachments to be
considered complete. Stating that
“Information will be provided upon
request” or that “Details are available upon
request,” or any similar statement in the
space provided, is not considered a
description and may cause your
f. The name of each other material
advisor to the transaction, if known.
2. A detailed description of the
reportable transaction that describes both
the tax structure and the purported tax
treatment.
Requirement to Keep Lists
3. A copy of any designation
agreement to which the material advisor is
Generally, a material advisor must
maintain a list identifying each entity or
individual to whom the advisor was a
material advisor to a reportable
disclosure statement to be treated as
incomplete.
4. Copies of any additional written
materials, including tax analyses or
Instructions for Form 8918 Rev. 11-2021
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Note. See Rev. Proc. 2007-21,
line 13), rendering attachments less
necessary. If, however, the information
you wish to provide exceeds the
expanded space provided, complete as
much information as possible in the
available space and attach the remaining
information on additional sheets.
Attachments must adhere to the following
guidelines:
answer “No” and enter the reportable
transaction number previously provided
for the reportable transaction by the IRS.
superseded by T.D. 9686 and updated by
Announcement 2016-01. See Regulations
section 301.6707-1 for more information.
Amended statement. An amended
statement must be filed if information
previously provided is no longer accurate,
if additional information that was not
disclosed becomes available, or if there
are material changes to the transaction.
Penalty for Failure To Maintain
Required Lists
Any person who is required to maintain a
list and fails to make the list available
within 20 business days of an IRS written
request must pay a penalty of $10,000 for
each day of the failure after the 20th
business day. The penalty may be
assessed for failure to maintain the list in a
form that enables the IRS to determine
without undue delay or difficulty the
information required.
Do not write “See Attached” on the
•
form and provide all the information
on an attached statement.
Line 1
Enter the name, if any, by which the
transaction is known or commonly referred
to by either yourself or published
The additional sheets must be in the
•
same order as the lines to which they
correspond.
guidance. If no name exists, provide a
short identifying description of this
You must include your name and
•
identifying number at the top of each
additional sheet.
transaction that distinguishes it from other
reportable transactions in which you have
participated (or may participate in the
future). Do not report more than one
transaction on this form unless the
Material Advisor Identifying
Information
Individuals. If the material advisor is an
individual, enter the first name, middle
initial (if any), and last name; the social
security number; the phone number; and
the complete address.
Other Penalties
Section 6700 imposes penalties for
promoting abusive tax shelters and related
activities.
transactions are the same or substantially
Line 2
Section 6701 imposes penalties for
aiding and abetting an understatement of
tax liability.
Check the box(es) for all categories that
apply to the transaction being reported.
The reportable transaction categories are
described under What Is a Reportable
Transaction, earlier.
Entities. If the material advisor is an
entity, enter the full name of the entity as
shown on its income tax return, the
employer identification number, and the
complete address. See Item A for contact
information.
Section 7203 imposes penalties for the
willful failure to file a return, supply
information, or pay tax.
If the transaction is a listed
transaction, you must check the
!
Section 7206 imposes penalties for
tax-related fraud and false statements.
CAUTION
listed transaction box in addition
Item A
to any others that apply.
Contact information. If the material
advisor is an entity, list the name of a
contact person along with a contact
telephone number. If the material advisor
is an individual, you may disregard this
line.
Section 7207 imposes penalties for
submitting fraudulent returns, statements,
or other documents.
Line 3
Identify the notice, revenue ruling,
regulation (for example, Notice 2003-81,
modified and supplemented by Notice
2007-71), announcement, or other
published guidance that identified the
transaction as a listed transaction or
transaction of interest. For listed
transactions, identify the guidance as
shown in Notice 2009-59 or later IRS
guidance.
Specific Instructions
How To Complete Form 8918
Item B
In order to be considered complete, Form
8918 must be completed and submitted in
its entirety. To be considered complete,
the 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
Protective disclosure. Indicate if you
are filing on a protective basis by checking
the appropriate box. If you are uncertain if
a transaction must be disclosed, check the
“Yes” box and disclose the transaction in
accordance with these instructions.
On line 6a, you must explain why you
are filing the disclosure on a protective
basis. Generally, the IRS will not treat
disclosure statements filed on a protective
basis any differently than other disclosure
statements filed on Form 8918. An
Line 4
Enter the latest of the following dates.
The date you made a tax statement with
•
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. A Form
8918 containing a statement that
information will be provided upon
request is not considered a complete
disclosure statement.
regard to the transaction.
The date you received or had an
•
expectation that you would receive gross
income in excess of the threshold amount
(defined earlier).
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 complete
Form 8918 and provide all required
information. See How To Complete Form
8918, earlier, for more information.
The date the transaction was entered
•
into by the taxpayer.
The date the transaction became a
•
There are two ways to speed up the
listed transaction or transaction of interest.
The latest of these dates is the date you
became a material advisor. See Date you
became a material advisor, earlier.
processing of Form 8918:
1. by thoroughly providing all required
information upon initial submission, and
2. by providing all information within
the form itself, rather than through
attachments.
Line 5
Item C
If more than one material advisor is
required to disclose a reportable
Answer “Yes” if this is the original Form
8918 for this reportable transaction. If this
is an amendment to a previously filed
Form 8918 for the reportable transaction,
transaction under this section, the material
advisors may designate by written
agreement a single material advisor to
To help with this, Form 8918 has been
redesigned to accommodate more
information within the form itself (including
Instructions for Form 8918 Rev. 11-2021
-5-
disclose the transaction. The transaction
must be disclosed by the last day of the
month following the end of the calendar
quarter that includes the earliest date on
which a material advisor who is a party to
the agreement became a material advisor
to the transaction.
a. Agreements.
Line 9
b. Property transfers and acquisitions.
c. Liability assumptions.
d. Obligation fulfillment.
e. Sales.
Identify the types of financial instruments
required by the transaction (loan, stocks,
bonds, notes, original issue discounts,
domestic and foreign currency
agreements, swaps, futures, notional
principal contracts, options, input or risk
hedges, etc.). If you need more space,
follow the instructions under How To
Complete Form 8918, earlier.
f. Entity formation or dissolution.
The designation of one material
g. Other relevant events. Other
relevant events may include but are not
limited to tax result protection. Tax result
protection includes insurance company
and other third party products commonly
described as tax result insurance.
advisor to disclose the transaction
!
CAUTION
does not relieve the other material
advisors of the obligation to disclose the
transaction to the IRS in accordance with
these instructions, if the designated
material advisor fails to disclose the
transaction to the IRS in a timely manner.
Line 10
Check all the boxes that apply for the tax
benefits expected from the transaction. A
tax benefit includes deductions,
4. Nature of the transaction (cash,
loan, service, other).
exclusions from gross income,
5. Purpose of each step in
accomplishing the tax benefits and
consequences.
6. Where and how each party to the
transaction (entered on lines 7a, 7b, and
8a and 8b) is used, including their roles.
7. The economic and business
reasons for the transaction and its
structure (describe market or business
conditions creating the tax benefit or
consequence and its financial reporting, if
known).
8. How the financial instruments
(entered on line 9) are used in the
transaction.
nonrecognition of gain, tax credits,
adjustments (or the absence of
Line 6a
Provide a concise statement indicating
your role as a material advisor to this
transaction. See Who Is a Material
Advisor, earlier. If you are filing a
protective disclosure, you must explain
why you believe you are not a material
advisor. If you need more space, follow
the instructions under How To Complete
Form 8918, earlier.
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. Check the “Other” box for tax
benefits not specifically described by a
box and identify the tax benefit(s) in the
space provided. If you need more space,
follow the instructions under How To
Complete Form 8918, earlier.
Lines 7a and 7b
Check the box(es) for all categories that
apply to the transaction being reported.
Indicate the related parties that are
needed and how they are related. Indicate
the role of tax-exempt entities if they are
required for the transaction. In addition, if
a foreign entity is required, indicate how
and why the foreign entity is used, along
with which country is used if a particular
country is required for the transaction. If
you need more space, follow the
Line 13
9. How the Internal Revenue Code
sections (entered on line 12) enable you to
obtain the tax treatment.
Describe all of the relevant facts about the
reportable transaction including the
following.
If you need more space, follow the
instructions under How To Complete Form
8918, earlier.
1. Tax benefits causing the
transaction to be reportable.
2. Years affected by the transaction.
3. Steps of the transaction including:
instructions under How To Complete Form
8918, earlier.
Privacy Act and Paperwork Reduction Act Notice. We ask for the information on this form to carry out the Internal Revenue laws
of the United States. You are required to give us the information. We need it to ensure that you are complying with these laws. We may
give the information to the Department of Justice and to other federal agencies, as provided by law. We may give it to cities, states, the
District of Columbia, and U.S. commonwealths or possessions to carry out their tax laws. We may also disclose this information to
other countries under a tax treaty, to federal and state agencies to enforce federal nontax criminal laws, or to federal law enforcement
and intelligence agencies to combat terrorism. A penalty may be imposed if you are required to file this return and fail to file by the due
date or provide incomplete or false information.
Our authority to ask for information is section 6111 and its regulations, which require you to file a return or statement with us with
respect to any reportable transaction for which you are a material advisor. Your response is mandatory under these sections. Section
6109 requires that you provide your identifying number on what you file. This is so we know who you are, and can process your return
and other papers. You must fill in all parts of the tax form that apply to you.
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 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 administration of any Internal Revenue law. Generally, tax returns and return information are confidential,
as required by section 6103.
The time needed to complete and file this form will vary depending on individual circumstances. The estimated average time is:
Recordkeeping
Learning about the law or the form
Preparing, copying, assembling, and sending the form to the IRS
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Comments. Go to IRS.gov/UAC/Comment-On-Tax-Forms-And-Publications to provide any comments. You can also send your
comments to the Internal Revenue Service, Tax Forms and Publications Division, 1111 Constitution Ave. NW, IR-6526, Washington,
Instructions for Form 8918 Rev. 11-2021
-6-