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IRS Form W-2GU – Guam Wage and Tax Statement – If you’re a Guam employer or employee navigating tax season, understanding IRS Form W-2GU is essential. This specialized form, known as the Guam Wage and Tax Statement, ensures accurate reporting of wages and taxes specific to Guam’s tax system. Unlike the standard Form W-2 used for U.S. mainland wages, Form W-2GU focuses on local Guam income tax withholding while coordinating with federal social security and Medicare requirements.

In this comprehensive guide, we’ll break down everything you need to know about Form W-2GU for the 2025 tax year—including who must file it, how to complete it, key deadlines, and tips to avoid penalties. Whether you’re an employer preparing statements or an employee verifying your income, this article has you covered.

 

What Is IRS Form W-2GU?

IRS Form W-2GU is a wage and tax statement designed exclusively for Guam employers to report compensation paid to employees working in Guam. It captures total wages, tips, other compensation, and withholdings for Guam income tax, social security, and Medicare taxes. Importantly, do not use Form W-2GU to report wages subject to U.S. federal income tax withholding—those go on the standard Form W-2 instead.

This form plays a critical role in Guam’s mirror tax system, which aligns closely with U.S. federal tax rules but handles local income taxes separately. For 2025, the form includes updates from the SECURE 2.0 Act, affecting retirement plan reporting and other deferred compensation details. The OMB control number has also been revised to 1545-0029.

Key differences from the standard W-2 include:

• Box 2: Reports Guam income tax withheld, not federal income tax.
• Inapplicable boxes: 8 (allocated tips), 10 (dependent care benefits), and 15–20 (state/local tax info) are not used.
• Territorial focus: It supports Guam’s unique filing requirements under Pub. 570 (Tax Guide for Individuals With Income From U.S. Possessions).

Employees use Copy B of the form when filing their Guam income tax return, while keeping Copy C for personal records.

Who Needs to File Form W-2GU?

Guam employers must issue Form W-2GU to any employee from whom Guam income tax, social security, or Medicare tax was withheld during the year. This applies even if the employee is related to the employer or if no federal income tax was withheld.

• Employers: Any business or trade in Guam paying $600 or more in remuneration (including noncash payments) must file. This includes tips and other compensation.
• Employees: Guam residents or those earning Guam-sourced income. Nonresident aliens may have special rules under the Military Spouses Residency Relief Act (MSRRA).
• Exceptions: Clergy or religious workers exempt from social security/Medicare, and wages already reported on a standard W-2 for U.S. tax purposes.

If you’re unsure, consult IRS Publication 15 (Circular E) for territorial employment guidance.

IRS Form W-2GU Download and Printable

Download and Print: IRS Form W-2GU

How to Fill Out IRS Form W-2GU: Step-by-Step Instructions

Form W-2GU mirrors the layout of the standard W-2 but tailors reporting to Guam’s system. Download the 2025 fillable PDF from IRS.gov or order scannable copies for official filing. Use black ink for non-SSA copies and red for Copy A.

Header Section

• Box a: Employee’s full Social Security Number (SSN). Truncate to last four digits on employee copies for privacy, but use the full SSN for Copy A.
• Box b: Employer’s EIN.
• Box c: Employer’s name, address, and ZIP code.
• Box d: Optional control number for tracking.
• Boxes e and f: Employee’s name and address.

Wage and Tax Boxes

• Box 1: Total wages, tips, and other compensation (taxable for Guam purposes).
• Box 2: Guam income tax withheld—crucial for employee refunds or credits.
• Box 3: Social security wages (up to $176,100 for 2025).
• Box 4: Social security tax withheld (6.2% on Box 3).
• Box 5: Medicare wages and tips (no wage cap).
• Box 6: Medicare tax withheld (1.45% standard + 0.9% additional on wages over $200,000).
• Box 7: Social security tips.
• Box 11: Nonqualified plan distributions (include in Box 1 if taxable).
• Box 12 (a–d): Coded items like elective deferrals (Code D: up to $23,500; catch-up $7,500 for age 50+), Roth contributions (Code AA/BB), or health coverage costs (Code DD, nontaxable).
• Box 13: Checkboxes for statutory employee, retirement plan, or third-party sick pay.
• Box 14: Other—use for miscellaneous info like union dues.

File corrections using Form W-2c if errors occur, and notify employees promptly.

Filing Deadlines and Requirements for 2025

Timely filing is key to avoiding penalties, which can reach $310 per form for late furnishing to employees (increasing after December 31, 2025).

• Furnish to Employees: Send Copies B, C, and 2 by February 2, 2026 (or request a short extension via Form 15397).
• File with SSA: Submit Copy A and Form W-3SS by February 2, 2026. E-file if filing 10+ returns (mandatory; waivers via Form 8508).
• File with Guam: Send Copy 1 to Guam Department of Revenue and Taxation, P.O. Box 23607, Barrigada, GU 96921.
• Extensions: 30-day SSA extension via Form 8809 in extraordinary cases.

E-filing is encouraged through SSA’s Business Services Online (BSO) for faster processing and error checks. Paper filers must use scannable red-ink Copy A.

Common Mistakes to Avoid When Handling Form W-2GU

• Mixing Forms: Never report U.S. income tax on W-2GU—use W-2 for that.
• SSN Errors: Verify SSNs to prevent mismatches; correct via W-2c.
• Incomplete Codes: Miss Box 12 entries (e.g., retirement deferrals) at your peril—limits apply.
• Late Delivery: Employees need forms by February 2, 2026, for timely Guam returns.
• Privacy Oversights: Truncate SSNs on employee copies but not official filings.

For excess social security tax over $10,918.20, employees can claim refunds via Form 843.

FAQs About IRS Form W-2GU

What if I work in Guam but live on the mainland?

Report Guam wages on W-2GU for local taxes, but use W-2 for federal withholding. See Pub. 570 for possession income rules.

Can I e-file Form W-2GU?

Yes, via SSA’s BSO if required (10+ returns). It’s free and reduces errors.

What’s new for 2025?

Updated OMB number, SECURE 2.0 adjustments for retirement reporting, and higher penalty tiers post-2025.

Where do I get Form W-2GU?

Download from IRS.gov or order from the Online Ordering system.

Staying compliant with Form W-2GU ensures smooth tax processing for Guam’s workforce. For personalized advice, consult a tax professional or the Guam Department of Revenue and Taxation. Bookmark this guide for next year’s filings!

 

IRS Form 1096 – Annual Summary and Transmittal of U.S. Information Returns – If you’re a business owner, freelancer, or anyone making reportable payments to others, staying compliant with IRS reporting requirements is crucial to avoid penalties and ensure smooth tax processing. One key form in this process is IRS Form 1096, the Annual Summary and Transmittal of U.S. Information Returns. This form acts as a cover sheet for transmitting paper copies of various information returns, such as Forms 1099, to the IRS.

In this comprehensive guide, we’ll cover everything you need to know about Form 1096 for the 2025 tax year: what it is, who must file it, step-by-step instructions, deadlines, e-filing rules, and more. Whether you’re searching for “what is IRS Form 1096” or “how to file Form 1096,” this article has you covered with the latest IRS guidance.

 

What Is IRS Form 1096?

IRS Form 1096 is a summary and transmittal form used to send paper versions of U.S. information returns to the Internal Revenue Service (IRS). It provides a high-level overview of the total number of forms, amounts reported, and federal tax withheld, helping the IRS process your submissions efficiently.

Primarily, Form 1096 accompanies Copy A (the IRS copy) of the following information returns:

• Form 1097-BTC (Bond Tax Credit)
• Forms 1098 series (Mortgage Interest Statement, etc.)
• Forms 1099 series (e.g., 1099-MISC, 1099-NEC, 1099-INT, and the new Form 1099-DA for digital asset proceeds)
• Forms 3921 and 3922 (Exercise of Stock Options)
• Forms 5498 series (IRA Contribution Information)
• Form W-2G (Certain Gambling Winnings)

Without Form 1096, your paper filings won’t be accepted. It’s essentially the “packaging slip” for your information returns.

Key Update for 2025: The form has been revised to include Form 1099-DA, introduced under the Infrastructure Investment and Jobs Act (P.L. 117-58) to report proceeds from digital asset broker transactions, such as cryptocurrency sales. This ensures better tracking of digital economy payments.

Who Must File IRS Form 1096 in 2025?

You must file Form 1096 if you’re required to submit paper information returns listed above to the IRS. This typically includes:

• Businesses paying non-employee compensation (e.g., freelancers via Form 1099-NEC)
• Financial institutions reporting interest or dividends (Forms 1099-INT/DIV)
• Real estate professionals reporting sales (Form 1099-S)
• Anyone handling reportable payments over certain thresholds, like $600 for non-employee compensation

Note: If you’re filing 10 or more information returns of any type, e-filing is mandatory—no paper Form 1096 needed. Sole proprietors without an EIN use their SSN, but an EIN is preferred for consistency.

Even if you’re a nominee (e.g., reporting payments on behalf of others), you may need to file separate Forms 1099 and transmit them with Form 1096. Spouses aren’t required to file nominee returns for each other.

IRS Form 1096 Filing Deadlines for 2025

Timely filing is essential to avoid penalties. Deadlines for Form 1096 align with the underlying information returns for the 2025 calendar year (filed in 2026):

Information Return Type	Paper Filing Deadline (with Form 1096)	E-Filing Deadline	Recipient Copy Deadline
Most Forms 1099 (e.g., 1099-MISC, 1099-INT)	March 2, 2026	March 31, 2026	January 31, 2026
Form 1099-NEC (Nonemployee Compensation)	January 31, 2026	March 31, 2026	January 31, 2026
Forms 5498 series (IRA Contributions)	June 1, 2026	June 1, 2026	May 31, 2026
Form 1099-DA (Digital Assets)	March 2, 2026	March 31, 2026 (via IRIS portal only)	February 17, 2026

Pro Tip: Use the IRS’s designated private delivery services (PDS) for mailing to meet deadlines—check the latest PDS list on IRS.gov. Leap years don’t extend deadlines.

E-Filing vs. Paper Filing: What You Need to Know

• E-Filing: Required for 10+ returns. Use the IRS FIRE System or IRIS Taxpayer Portal (mandatory for Form 1099-DA). No Form 1096 is needed for electronic submissions—instead, totals are reported digitally.
• Paper Filing: Allowed for fewer than 10 returns. Mail Copy A forms with Form 1096 to the appropriate IRS Submission Processing Center (e.g., Austin for Alabama/Arizona; Kansas City for Alaska/California). Use flat mailers, number packages, and include Form 1096 in Package 1.

Request a waiver from e-filing only if you qualify (e.g., undue hardship). Keep records for 3–4 years.

Step-by-Step Guide: How to Complete IRS Form 1096

Download the latest Form 1096 from IRS.gov (do not print from the website for filing, as it may not scan properly—order scannable copies from the IRS).

Use a separate Form 1096 for each type of return (e.g., one for all 1099-MISC, another for 1099-INT). Here’s how to fill it out:

1. Filer’s Information (Top Section):
   • Enter your business name, street address (including suite), city/state/ZIP, contact name, phone, email, and fax.
2. Box 1: Employer Identification Number (EIN): Enter your EIN (preferred for businesses).
3. Box 2: Social Security Number (SSN): Use only if you’re a sole proprietor without an EIN. Do not enter both Box 1 and 2.
4. Box 3: Total Number of Forms: Count only correctly completed forms (exclude blanks/voids or the Form 1096 itself).
5. Box 4: Federal Income Tax Withheld: Total backup withholding (24%) from all transmitted forms.
6. Box 5: Total Amount Reported: Sum specific boxes from your forms (e.g., Box 1d + 13 from Form 1099-B; Box 1f from Form 1099-DA). No entry for Forms 1098-T, 1099-A, or 1099-G.
7. Box 6: Type of Form Being Filed: Check one box (e.g., “1099-MISC” or “1099-DA”).
8. Signature Section: Sign under penalty of perjury, include title and date. Agents sign “For: (Payer’s Name).”

For corrections, mark “CORRECTED” and file new returns—don’t mix originals and corrections unless same type.

Penalties for Late or Incorrect Filing of Form 1096

Failing to file correctly or on time can trigger significant penalties under IRC Sections 6721 and 6722. For 2025:

Days Late	Penalty per Return/Statement	Maximum Annual Penalty (Small Businesses)	Maximum Annual Penalty (Large Businesses)
Up to 30 days	$60	$1,290,500	$1,290,500
31 days to August 1	$130	$2,606,000	$2,606,000
After August 1 or not filed	$330	$3,882,000	$3,882,000
Intentional Disregard	$660+	No maximum	No maximum

Small businesses (average gross receipts ≤ $5M) get lower caps. De minimis exceptions apply for minor errors (e.g., $100 for incorrect dollar amounts). Agents signing don’t relieve payers of liability.

IRS Form 1096 Download and Printable

Download and Print: IRS Form 1096

Common Mistakes to Avoid When Filing Form 1096

• Mismatched TINs: Ensure your EIN/SSN matches other returns (e.g., Form 945).
• Incorrect Totals: Double-check Box 5 sums—errors lead to processing delays.
• Mixing Form Types: Always use separate Forms 1096 per category.
• Forgetting 1099-DA: New filers of digital assets must include it.
• Paper Quality: Use red-ink scannable forms; downloaded PDFs won’t work.

Tip: Use tax software for accuracy, and retain copies for audits.

Frequently Asked Questions (FAQs) About IRS Form 1096

What if I have zero forms to file?

Submit a Form 1096 marked with zeros if required—contact the IRS for guidance.

Can I e-file Form 1096 directly?

No, e-filing replaces it entirely for qualifying filers.

What’s the transition rule for Form 1099-K in 2025?

Third-party settlement organizations report Form 1099-K only if payments exceed $2,500 (rising to $600 in 2026).

Where do I mail paper Forms 1096?

Depends on your state—see Pub. 1220 on IRS.gov.

Final Thoughts: Stay Compliant with Form 1096

Filing IRS Form 1096 correctly ensures your information returns are processed without hitches, helping the IRS verify income and combat tax evasion. For the 2025 tax year, pay special attention to the new Form 1099-DA for digital assets and e-filing mandates.

Consult a tax professional for complex situations, and always reference official IRS resources. Download forms and instructions at IRS.gov/Form1096. File on time to keep your business penalty-free!

Last updated: December 2025. This guide is for informational purposes only—not tax advice.

 

IRS Form 1098-E – Student Loan Interest Statement – As a recent college graduate or current student loan borrower, you’re likely juggling payments while planning your financial future. One often-overlooked perk? The student loan interest deduction, which can shave up to $2,500 off your taxable income for 2025. At the heart of this tax break is IRS Form 1098-E, the Student Loan Interest Statement. This simple document from your lender could mean hundreds of dollars back in your pocket come tax time.

In this comprehensive guide, we’ll break down everything you need to know about Form 1098-E—from what it is and who gets one to eligibility rules, deduction limits, and step-by-step claiming instructions. Whether you’re filing your first return or optimizing for 2025, this article equips you with trusted insights to maximize your savings. Let’s dive in.

 

What Is IRS Form 1098-E?

IRS Form 1098-E, officially titled the Student Loan Interest Statement, is a tax form used to report the interest you’ve paid on qualified student loans during the tax year. Issued by your loan servicer or lender, it helps the IRS track this interest and allows you to claim a valuable deduction on your federal tax return.

Key Details on Form 1098-E

• Box 1: Shows the total student loan interest you paid (typically $600 or more to trigger issuance).
• Box 2: Indicates if the interest is from a federally subsidized loan.
• Other Boxes: Include your name, address, taxpayer ID, and loan details for verification.

Lenders must issue this form if you paid at least $600 in interest in the course of their business. For 2025, a “qualified student loan” includes those subsidized, guaranteed, or financed under federal, state, local government, or postsecondary education programs—or loans certified by you solely for higher education expenses.

Unlike Form 1098-T (for tuition), the 1098-E focuses exclusively on interest, making it essential for borrowers with private or federal loans like Direct Loans or PLUS Loans.

Who Should Expect to Receive a Form 1098-E?

Not everyone gets a 1098-E—it’s reserved for those who’ve paid enough interest to qualify for reporting. Here’s who typically receives one:

• Borrowers: If you made payments totaling $600+ in student loan interest during 2025, your servicer (e.g., Nelnet, MOHELA, or Aidvantage) will send it by January 31, 2026. Multiple servicers? Expect a separate form from each.
• Lenders/Filers: Financial institutions, government units, educational organizations, or other entities receiving $600+ in interest must file with the IRS.

Didn’t receive yours? Download it from your servicer’s portal (e.g., studentaid.gov for federal loans) or contact them directly. Even if under $600, you can still deduct the interest—just track it manually via statements.

Pro Tip: Federal student aid borrowers can access 1098-E forms dating back to 2019 through their Federal Student Aid account.

The Student Loan Interest Deduction: A Quick Overview

The star of the 1098-E show is the student loan interest deduction, an above-the-line adjustment that reduces your adjusted gross income (AGI) without itemizing. For 2025, you can deduct up to $2,500—or the actual interest paid, whichever is less. This includes both required payments and voluntary prepayments.

Why claim it? At a 22% tax bracket, a $2,500 deduction could save you $550. It’s available for interest on loans used for you, your spouse, or a dependent’s higher education expenses.

Eligibility Requirements for the Student Loan Interest Deduction

To qualify for the deduction in 2025, meet these IRS criteria:

• Qualified Loan: Must be for higher education costs (tuition, fees, books, etc.) at an eligible institution. Covers federal and private loans.
• Payment Obligation: You (or your spouse, if filing jointly) must be legally responsible for the interest.
• Filing Status: Cannot be married filing separately.
• Dependency Status: Neither you nor your spouse can be claimed as a dependent on someone else’s return.
• Income Limits: Your modified AGI (MAGI) must fall below phase-out thresholds (detailed below).

No need to itemize—claim it on your Form 1040 regardless of standard vs. itemized deductions.

2025 Income Limits and Phase-Out Ranges

The deduction isn’t one-size-fits-all; it phases out based on your MAGI (AGI before the deduction, plus certain add-backs like foreign income exclusions). For tax year 2025:

Filing Status	Full Deduction (MAGI ≤)	Partial Deduction (MAGI Between)	No Deduction (MAGI ≥)
Single/Head of Household/Qualifying Surviving Spouse	$85,000	$85,001–$100,000	$100,000
Married Filing Jointly	$170,000	$170,001–$200,000	$200,000

These limits are inflation-adjusted annually; 2025 marks a $5,000 increase for singles from 2024’s $80,000–$95,000 range. Use the IRS worksheet in Publication 970 to calculate your exact amount.

IRS Form 1098-E Download and Printable

Download and Print: IRS Form 1098-E

How to Claim the Student Loan Interest Deduction Using Form 1098-E

Ready to file? Follow these steps for your 2025 return (due April 15, 2026):

1. Gather Documents: Use Box 1 from your 1098-E(s). Add up interest from multiple loans.
2. Calculate MAGI: Start with your AGI, then adjust per IRS rules.
3. Apply the Worksheet: In Publication 970 or tax software, enter interest paid and MAGI to determine your deduction.
4. Report on Your Return: Enter the amount on Schedule 1 (Form 1040), line 21. It flows to Form 1040, line 11.
5. E-File or Mail: Most use software like TurboTax, which auto-imports 1098-E data if you grant consent.

Tax pros recommend double-checking for prepaid interest or loan origination fees, which may qualify if amortized over the loan term.

Deadlines and Filing Requirements for Form 1098-E

Timing matters:

• To Borrowers: Lenders must provide your 1098-E by January 31, 2026.
• To IRS: File by February 28, 2026 (paper) or March 31, 2026 (electronic). Use Form 1096 as transmittal.
• Electronic Option: Allowed for statements to borrowers; required for 10+ returns to IRS.

Late filing? Penalties apply, but borrowers aren’t penalized for lender delays.

Common Mistakes to Avoid with Form 1098-E and Your Deduction

Steer clear of these pitfalls to ensure smooth sailing:

• Forgetting Small Amounts: Deduct interest under $600 using bank statements—don’t rely on no form.
• Ignoring Phase-Outs: Overestimating eligibility leads to IRS adjustments and potential audits.
• Mixing Loans: Only qualified education loans count; personal loans don’t.
• Dependent Errors: If someone claims you, skip the deduction.
• Double-Dipping: Can’t claim if using employer-provided loan assistance as income exclusion.

Consult a tax advisor for complex situations, like refinanced loans or international students.

Frequently Asked Questions (FAQs) About IRS Form 1098-E

Do I need a 1098-E to claim the student loan interest deduction?

No, but it’s the easiest proof. Track payments manually if under $600.

Can parents claim the deduction if paying a child’s loan?

Only if the loan is in the parent’s name and they’re legally obligated.

Is the deduction available for private loans?

Yes, as long as they’re qualified for higher education.

What if my servicer doesn’t send a 1098-E?

Request it online or via phone; federal servicers must provide it upon request.

Has the student loan interest deduction changed for 2025?

Limits rose slightly due to inflation, but the $2,500 cap remains.

Final Thoughts: Maximize Your 2025 Tax Savings with Form 1098-E

IRS Form 1098-E isn’t just paperwork—it’s your ticket to reducing taxable income and easing the student debt burden. With up to $2,500 deductible and straightforward claiming, it’s a no-brainer for eligible borrowers. As you prep for 2025 taxes, log into your loan portal early, run the MAGI numbers, and consider free IRS tools like the Interactive Tax Assistant.

Stay proactive: Bookmark IRS.gov for updates, and if debt feels overwhelming, explore forgiveness options via studentaid.gov. Questions? A certified tax preparer can tailor advice to your situation. Here’s to smarter finances and a brighter post-grad life!

This article is for informational purposes only and not tax advice. Consult a professional for personalized guidance.

 

IRS Form 945-A – Annual Record of Federal Tax Liability – Employers and payers dealing with nonpayroll withholdings—like pensions, gambling winnings, or backup withholding—face a compliance tightrope. Miss the mark on reporting your federal tax liability, and the IRS could hit you with “averaged” failure-to-deposit penalties that inflate your bill. That’s where IRS Form 945-A, the “Annual Record of Federal Tax Liability,” comes in: a simple worksheet that tracks your monthly liabilities to verify timely deposits and match your total on Form 945.

For tax year 2025 (filed in 2026), Form 945-A remains essential for semiweekly depositors or those hitting the $100,000 monthly threshold, with no major structural changes from 2024. This SEO-optimized guide covers Form 945-A filing requirements for 2026, who must file, deadlines, step-by-step instructions, and penalty avoidance. Whether you’re a business owner or HR pro, use this to stay compliant. Download the latest at IRS.gov/Form945A.

 

What Is IRS Form 945-A?

Form 945-A is a reconciliation tool attached to Forms 945 (nonpayroll income tax withholding), 945-X (adjustments), CT-1/CT-1 X (railroad retirement taxes), or 944/944-X (small employer annual returns). It records your federal tax liability by month, based on payment dates, to prove deposits align with withholding events.

Key uses:

• Deposit Verification: IRS matches line M total to Form 945 line 3 (or equivalents) to calculate penalties.
• Semiweekly Tracking: Required for frequent depositors; prevents averaging errors.
• Amendments: File revised versions with 945-X if errors affect liability (not just math—true corrections only).

For 2025, it supports the $100,000 Next-Day Deposit Rule: Accumulate that much in a day? Switch to semiweekly for the rest of the year and 2026. No changes to the form’s core—still a two-page monthly grid.

Who Must File Form 945-A in 2026?

File Form 945-A if you’re a semiweekly schedule depositor for any part of 2025, or a monthly depositor who hit $100,000+ liability on any day in a month (triggering semiweekly status). It’s mandatory with your annual return if applicable.

Who Files Form 945-A? Quick Table (Tax Year 2025)

Depositor Type	Trigger	File With	Notes
Semiweekly (All Year)	Total 2023 Form 945/944/CT-1 > $50,000	Form 945/944/CT-1	Monthly breakdown required; line M = total tax.
Monthly → Semiweekly	$100,000+ in one day/month	Form 945/944/CT-1	Semiweekly from next day; full-year Form 945-A.
Monthly (No Switch)	Total < $50,000; no $100K day	Optional (use line 7 on return)	Skip if under thresholds.
Amendments (945-X)	Liability errors discovered	Form 945-X/CT-1 X/944-X	Amended 945-A only if changes total; write “Amended.”

Exceptions: No Form 945-A for proxy tax-only filers or if you’re purely monthly without triggers. Railroad employers use it for Tier I/II taxes.

When Is Form 945-A Due in 2026?

Attach to your 2025 return: January 31, 2026 (shifts to February 2, 2026, as Jan. 31 is a Saturday). If all deposits timely, get 10 extra days (Feb. 12). Extensions? Use Form 7004 (6 months), but pay 90% by original due to avoid penalties.

Key 2026 Filing Deadlines Table (Tax Year 2025)

Return Type	Original Due Date	Extended Due Date (Form 7004)	Notes
Form 945 (Nonpayroll Withholding)	February 2, 2026	August 3, 2026	+10 days if deposits timely.
Form 944 (Small Employers)	February 2, 2026	August 3, 2026	IRS notifies if eligible.
Form CT-1 (Railroad)	February 2, 2026	August 3, 2026	Tier I/II taxes.
Amendments (945-X)	Varies (discovery year)	N/A	File within 3 years; attach amended 945-A.

Fiscal-year filers: 15th day of 2nd month after year-end. E-file encouraged—mandatory for 10+ returns.

IRS Form 945-A Download and Prntable

Download and Print: IRS Form 945-A

How to Complete IRS Form 945-A: Step-by-Step (2025 Form)

The 2025 Form 945-A (Rev. December 2024) is a grid: Columns for daily liabilities (1–31), monthly subtotals (A–L), and year total (M). Base entries on payment/wage dates, not calendar months. Use accrual if consistent.

Essential Sections and Line Highlights

1. Heading: EIN, name (match your return), calendar year (2025).
2. January–December Grids (Lines 1–31 per Month): Enter daily liabilities (e.g., Line 1: Jan 1 withholding). Subtotals: A (Jan), B (Feb), etc.
   • Lines 1–15: Days 1–15.
   • Lines 16–31: Days 16–31 (or 28/30/31).
   • Monthly Total: Add daily lines (e.g., Line A = Jan total).
3. Line M: Sum A–L (must = Form 945 line 3 or equivalent).
4. Special Rules:
   • $100K Switch: Record pre-switch on monthly lines; post-switch daily.
   • Adjustments: Ignore prior-year fixes (use 945-X); no credits here.
   • Example: Withheld $52K on Jan 6, $35K Jan 20 → Jan 6: $52K (Line 6); Jan 20: $35K (Line 20); Total Jan: $87K (Line A).

Pro Tip: Sequence: Daily first, then subtotals. Software like QuickBooks auto-populates from ledgers. For amendments, copy prior form and adjust—IRS refigures penalties.

E-Filing Requirements for Form 945-A

E-file with your return via IRS-approved software (e.g., TaxBandits, TaxZerone)—voluntary but recommended for accuracy. Paper OK, but e-file processes in 2–4 weeks vs. 8–12. Attach PDF if needed.

Recent Changes to Form 945-A for 2026 Filings

The December 2024 revision (used for 2025) is stable—no big shifts:

• Deposit Thresholds: Monthly if 2023 total ≤ $50K; semiweekly > $50K.
• Penalty Inflation: FTD minimum $510 (up from $485) if >60 days late.
• EO 14247: Direct deposit refunds now available (March 2025 update).
• No Form Changes: Core grid intact; monitor for 2025 drafts.

Penalties for Late or Incomplete Form 945-A Filing

IRS uses Form 945-A to enforce deposits—errors trigger:

• Failure-to-Deposit (FTD): 2–15% of underpayment (averaged if no 945-A).
• Failure-to-File: 5% monthly (max 25%); minimum $510.
• Late Payment: 0.5% monthly (max 25%) + 7% interest.
• Trust Fund Recovery: 100% personal liability for withheld taxes.

Abate for reasonable cause (e.g., first-time abatement via Form 843). Respond to CP15/CP215 notices promptly.

Best Practices for Form 945-A Compliance in 2026

• Track Daily: Use payroll software for withholding logs; reconcile monthly.
• Switch Alerts: Monitor for $100K days—notify IRS if semiweekly.
• Amend Smartly: Only for true errors; file with 945-X to reduce FTD.
• E-File Tools: TaxBandits or OnPay for auto-calc; retain 4+ years.
• Pro Help: CPA for multi-entity; review Pub. 15 for rules.

Conclusion: Nail Your Deposits with Form 945-A in 2026

IRS Form 945-A is your shield against deposit penalties, ensuring withholdings on nonpayroll payments—like pensions or backups—align with Form 945’s total. With February 2, 2026, deadlines, semiweekly filers: Attach now to avoid averaged FTD hits up to 15%.

Download the 2025 form/instructions at IRS.gov/Form945A. Questions? Call Business Hotline at 800-829-4933. Compliant withholding: Peace of mind for payers.

Last updated: December 2025. Verify IRS sources for advice.

 

IRS Form 8879-TE – IRS E-file Signature Authorization for a Tax Exempt Entity – Every nonprofit, private foundation, political organization, or trust that e-files a Form 990, 990-PF, 990-T, 1120-POL, 5227, 4720, 5330, or 8868 now relies on IRS Form 8879-TE — the official electronic signature authorization that has almost completely replaced the old paper Form 8453-TE.

For tax year 2024 returns filed in 2025, Form 8879-TE is the REQUIRED method when an Electronic Return Originator (ERO), paid preparer, or software provider transmits your exempt-organization return. This one-page form lets an authorized officer electronically sign the return and authorize direct debit payments — all without printing, scanning, or mailing anything to the IRS.

This SEO-optimized 2025 guide explains exactly who must use Form 8879-TE, deadlines, step-by-step completion, differences from 8453-TE, and how to avoid the most common (and expensive) mistakes.

 

What Is IRS Form 8879-TE?

Form 8879-TE, “IRS e-file Signature Authorization for a Tax Exempt Entity,” is the electronic equivalent of a wet-ink signature for exempt-organization returns. By signing it, an officer:

• Declares the return is true, correct, and complete
• Authorizes the ERO/transmitter to submit it to the IRS
• Authorizes electronic funds withdrawal (EFW) for any balance due or extension payment

The IRS never wants to see the signed 8879-TE — your ERO retains it for 3 years. The form is not mailed and is not attached to the e-filed return.

Who Must Use Form 8879-TE in 2025?

Situation	Required Form
E-filing any 990 series, 990-T, 1120-POL, 5227, 4720, 5330, 8038-CP, or 8868	8879-TE
Using a paid preparer or software that transmits for you	8879-TE
Self-preparing and self-transmitting (e.g., Tax990 direct e-file)	8879-TE still required (officer signs electronically in software)
Paper filing (rare hardship waiver)	Form 8453-TE instead

Key rule: If an ERO is involved in any way, you must use Form 8879-TE. Form 8453-TE is now limited to extremely rare cases where the IRS specifically requests a paper signature.

IRS Form 8879-TE Download and Printable

Download and Print: IRS Form 8879-TE

2025 Deadlines – Same as Your Return

Return Type	Original Due Date (Calendar Year)	With Extension
Forms 990, 990-EZ, 990-PF, 990-T, 1120-POL	May 15, 2025	Nov 17, 2025
Form 5227 (Split-Interest Trust)	April 15, 2025	Oct 15, 2025
Forms 4720, 5330	Varies by excise event	6 months
Form 8868 extension payment	Same as original return date	N/A

The 8879-TE must be signed before the return is transmitted.

Step-by-Step: How to Complete Form 8879-TE (2024 Form Used in 2025)

The 2024 form is current as of February 2025)

1. Part I – Tax Return Information
   • Line 1: Check the box for the form being filed (e.g., Form 990)
   • Line 2: EIN and name of the organization
   • Line 3: Total assets (from Form 990 Part X, line 16, column B)
   • Line 4: Balance due or extension payment amount (if any)
2. Part II – Declaration of Officer
   • Officer prints name, title, and date
   • Officer personally signs (wet ink or secure electronic signature in software)
   • Checks box consenting to electronic funds withdrawal (if paying)
3. Part III – Declaration of Electronic Return Originator (ERO)
   • ERO firm name, PTIN, date, and signature
   • ERO retains the completed form for 3 years

Most modern software (Tax990, ExpressTaxExempt, TurboTax Nonprofit, Thomson Reuters ONESOURCE) lets the officer sign electronically with a PIN or knowledge-based authentication — no printing required.

Form 8879-TE vs. Form 8453-TE – Quick Comparison

Feature	8879-TE (2025 Standard)	8453-TE (Rare)
Electronic signature allowed	Yes	No (wet ink only)
Mailed to IRS	Never	Only if IRS requests
Used with paid preparer/ERO	Required	Not allowed
Direct debit authorization	Yes	Yes
Retention period	3 years by ERO	3 years by organization

Bottom line: In 2025, 99% of filers will use 8879-TE.

Common Mistakes That Trigger IRS Rejections

• Officer signs after transmission → return rejected
• Wrong EIN or form type checked → immediate rejection
• Balance-due amount on line 4 doesn’t match the return → rejection + late-payment penalty
• Using old 8453-TE when ERO is involved → automatic rejection
• Not retaining signed copy → $280+ penalty if audited

Best Practices for 2025 Filings

1. Sign 8879-TE the same day you approve the final return
2. Use software with built for exempt orgs (Tax990, ExpressTaxExempt, File990) — they auto-generate and store the form
3. If paying by EFW, verify bank info twice — bounced payments accrue 7% interest + penalties
4. Keep the signed PDF in your permanent records (cloud + backup recommended)
5. For board approval: Have the officer sign only after board review and vote

Conclusion: Make 8879-TE Your 2025 E-File Superpower

IRS Form 8879-TE is the simple, secure, and now-required way every tax-exempt entity authorizes its 2025 e-filings. One signature replaces mountains of paper, speeds processing to 24–48 hours for acknowledgments, and keeps you fully compliant with the Taxpayer First Act mandates.

Download the current form at → IRS.gov/Form8879TE
Top-rated e-file providers that handle 8879-TE automatically: Tax990, ExpressTaxExempt, File990.org

File by May 15, 2025 (or your extended deadline) — and let your officer sign electronically with confidence.

Last updated: December 2025 | Sources: IRS Form 8879-TE Instructions (2024), IR-2024-28 (Feb 2025 e-file expansion), Pub. 4163

 

IRS Form 8453-TE – Tax Exempt Entity Declaration and Signature for E-file – In an era where digital efficiency is king, tax-exempt organizations are increasingly mandated to e-file their returns to streamline IRS processing and reduce errors. Enter IRS Form 8453-TE, the “Tax Exempt Entity Declaration and Signature for Electronic Filing”—a critical authentication tool that verifies the integrity of your electronic submission. For tax year 2024 (filed in 2025), this form ensures compliance for nonprofits, foundations, and trusts, authorizing everything from third-party transmissions to electronic payments.

With e-filing now required for most tax-exempt entities under the Taxpayer First Act, understanding Form 8453-TE filing requirements is non-negotiable. This SEO-optimized guide covers eligibility, deadlines, step-by-step instructions, and tips to avoid penalties. Whether you’re filing a Form 990 or 990-T, download the 2024 form at IRS.gov/Form8453TE and stay ahead of the curve.

 

What Is IRS Form 8453-TE?

Form 8453-TE serves as the official declaration and signature for electronically filed tax-exempt returns, confirming that the filer has reviewed the return and authorizes its transmission. It’s not a standalone tax return but a supporting document that:

• Authenticates the Return: Verifies the electronic Forms 990, 990-EZ, 990-PF, 990-T, 1120-POL, 4720, 8868, 5227, 5330, and 8038-CP.
• Authorizes Transmissions: Permits an Electronic Return Originator (ERO) or Intermediate Service Provider (ISP) to send the return via a third-party transmitter.
• Enables Electronic Payments: Allows direct debit for taxes owed on Forms 990-PF, 990-T, 1120-POL, 4720, 5330, or 8868 with payment.

For 2024 filings, the form aligns with expanded e-filing mandates from the Taxpayer First Act (P.L. 116-25), covering more entities than ever. No major structural changes for 2025, but always check IRS.gov for updates as of February 19, 2025.

Who Must File Form 8453-TE in 2025?

Any tax-exempt entity e-filing one of the specified forms must complete and retain Form 8453-TE. This includes:

• Nonprofits and Charities: Filing Forms 990, 990-EZ, or 990-T (e.g., for unrelated business income).
• Private Foundations: Submitting Form 990-PF.
• Political Organizations: Using Form 1120-POL.
• Trusts and Plans: For Forms 5227 (split-interest trusts), 4720 (excise taxes), 5330 (pension plans), or 8038-CP (continuing care entities).
• Extension Requests: Form 8868 with electronic payment.

Key rule: If using an ERO for signing, opt for Form 8879-TE instead. Retain the signed 8453-TE for 3 years—don’t mail it unless requested. Foreign entities or those with paper attachments (e.g., Schedules K) may need to paper-file the entire package.

Form 8453-TE Applicability Table (Tax Year 2024)

Form Type	E-File Required?	8453-TE Needed?	Notes
Form 990/990-EZ	Yes (most orgs)	Yes	Authenticates annual info returns.
Form 990-PF	Yes	Yes	Includes payment authorization.
Form 990-T	Yes ($1,000+ UBTI)	Yes	For unrelated business income tax.
Form 8868	Yes (with payment)	Yes	Extension with electronic debit.
Form 8879-TE Alternative	N/A	No	For ERO electronic signature.

E-filing is mandatory for returns with total assets ≥$10M or ≥250 returns annually.

When Is Form 8453-TE Due in 2025?

Submit the electronic return (with 8453-TE authentication) by the due date of the underlying form. Retain your copy—no mailing required. For calendar-year filers: May 15, 2025 (Forms 990 series); April 15, 2025 (trusts like 5227).

Key 2025 Filing Deadlines Table

Form	Original Due Date (Calendar-Year)	Extended Due Date (Form 8868)
Forms 990, 990-EZ, 990-PF, 990-T	May 15, 2025	November 17, 2025
Form 1120-POL	March 17, 2025	September 15, 2025
Forms 4720, 5227, 5330	November 15, 2025 (if fiscal June 30)	6 months from original
Form 8868 (Extension)	Same as underlying form	N/A (extends return)
Form 8038-CP	Varies by issuance	6 months

*Notes: Holidays/weekends shift to next business day. E-file extensions via Form 8868 don’t require 8453-TE unless payment is due.

IRS Form 8453-TE Download and Printable

Download and Print: IRS Form 8453-TE

How to Complete IRS Form 8453-TE: Step-by-Step (2024 Form)

The 2024 Form 8453-TE is a simple 3-page document. Complete it after preparing the electronic return but before transmission. Use black ink; sign manually (no electronic signature here—use 8879-TE for that).

Part I: Type of Return and Return Information

• Line 1: Check the box for your form (e.g., Form 990).
• Line 2: Enter EIN, name, address.
• Line 3: Total assets (from return, e.g., Form 990 Part X line 16, column B).
• Line 4: Tax period (e.g., 2024).
• Line 5: Amount from return (e.g., Form 990 line 15 for revenue).

Part II: Declaration of Officer or Person Subject to Tax

• Line 6: Officer’s name, title, SSN/ITIN, phone.
• Line 7: Signature and date—certify review and accuracy.
• Line 8: Check for state disclosure consent (IRS Fed/State program).

Part III: Declaration of Electronic Return Originator (ERO) and Paid Preparer (If Any)

• Line 9: ERO’s name, EIN/PTIN, firm details, phone.
• Line 10: ERO signature and date.
• Line 11: Paid preparer’s name, PTIN, firm details, signature, date.

Pro Tip: Scan and retain the signed form as a PDF. For electronic funds withdrawal (EFW), enter bank routing/account in the software—8453-TE authorizes it. Use tax software like Tax990 for auto-population.

E-Filing Requirements for Form 8453-TE

Mandatory e-filing applies to all listed forms under the Taxpayer First Act (since 2020). Use IRS-approved providers (e.g., ExpressTaxExempt, Tax990) via Modernized e-File (MeF). Benefits: Faster acknowledgments (24–48 hours), reduced errors, and secure transmission. Paper filing only if granted a waiver (rare; apply via Rev. Proc. 2018-17).

Recent Changes to Form 8453-TE for 2025 Filings

As of February 19, 2025, no major revisions to the 2024 form—it’s stable for 2025 use. Key notes:

• Expanded Scope: Taxpayer First Act added Forms 5227, 5330, and 8038-CP.
• No 2025 Updates: IRS confirms no changes; 2024 PDF current.
• Digital Signatures: Shift to Form 8879-TE for EROs using IP PINs.
• EFW Enhancements: Direct debit for extensions with payment.

Monitor IRS.gov for drafts post-February 2025.

Penalties for Late or Incomplete Form 8453-TE Filing

Errors can cascade:

• Late E-File: $20–$120/day (max $12,000–$60,000 based on size).
• Unauthorized Transmission: Return rejection; refile penalties.
• Missing Signature: Invalid filing; 5% monthly on tax due (max 25%).
• EFW Mismatch: Bounced payment fees + interest (7% compounded).

Reasonable cause (e.g., technical glitch) may abate; request via letter.

Best Practices for Form 8453-TE Compliance in 2025

• Review Thoroughly: Officer must verify return accuracy before signing.
• Choose Wisely: Use 8879-TE for ERO electronic signing; 8453-TE for ISP-only.
• Software First: Tools like TurboTax Nonprofit auto-generate and e-file.
• Retain Securely: Store signed PDF 3+ years; respond to IRS requests within 10 days.
• Train Staff: Ensure officers understand declarations to avoid personal liability.
• State Sync: Check for state e-file mandates (e.g., CA, NY require copies).

Proactive e-filing cuts processing from 8–12 weeks (paper) to 2–4 weeks.

Conclusion: Streamline Your E-File with Form 8453-TE in 2025

IRS Form 8453-TE is the secure handshake between your tax-exempt entity and the IRS, enabling fast, compliant e-filing for Forms 990 and beyond. With May 15, 2025, deadlines for most nonprofits, prepare now—authorize transmissions, sign declarations, and authorize payments to avoid delays.

Download the 2024 form and instructions at IRS.gov/Form8453TE. For assistance, contact the Exempt Organizations hotline at 877-829-5500. E-file smarter: Compliance without the hassle.

Last updated: December 2025. Consult official IRS sources for tailored advice.

 

IRS Form 990-T (Schedule A) – Unrelated Business Taxable Income From an Unrelated Trade or Business – Tax-exempt organizations like nonprofits, charities, and trusts often generate income from activities outside their mission—think advertising sales, facility rentals, or merchandise vending. While exempt from federal income tax on mission-related revenue, unrelated business taxable income (UBTI) is fair game for the IRS. Enter IRS Form 990-T Schedule A, the mandatory attachment to Form 990-T that breaks down UBTI for each separate unrelated trade or business, ensuring accurate taxation and compliance.

For tax year 2024 (filed in 2025), Schedule A consolidates prior schedules (e.g., for advertising or parking income) into one streamlined form, with new lines for credit adjustments. This SEO-optimized guide covers Form 990-T Schedule A filing requirements, who must file, deadlines, step-by-step instructions, and updates. Nonprofits with $1,000+ in gross UBTI: Don’t risk penalties—e-file by May 15, 2025. Download the 2024 form at IRS.gov/Form990T.

 

What Is IRS Form 990-T Schedule A?

Schedule A (Form 990-T), “Unrelated Business Taxable Income From an Unrelated Trade or Business,” calculates UBTI separately for each distinct activity under Regulations section 1.512(a)-6. This “silo” approach—mandated since 2020—prevents losses from one business offsetting profits in another, potentially increasing your tax bill.

Key purposes:

• Report Gross Income & Deductions: By NAICS code, for activities like sales, rentals, or investments.
• Compute Net UBTI: Subtract allowable expenses; aggregate positives on Form 990-T, Part I, line 1.
• Handle Specifics: Includes sections for exploited activities, controlled entities, and advertising.

Unlike Form 990-T (the main return for UBIT liability), Schedule A is filed one per unrelated trade or business. For 2024, it integrates all prior sub-schedules, simplifying prep while adding lines for nonrefundable credits.

Who Must File Form 990-T Schedule A in 2025?

Any tax-exempt organization filing Form 990-T for $1,000+ gross UBTI must attach a separate Schedule A for each unrelated trade or business. This includes:

• 501(c)(3) Charities: E.g., museum gift shops or event sponsorships.
• 501(c)(4)–(c)(7) Groups: Social clubs with bar sales.
• Title-Holding Corporations: Under section 501(c)(2).
• Trusts & IRAs: 401(a) trusts, IRAs, Roth IRAs, ESAs, or Archer MSAs with passive income.
• State Colleges/Universities: Dorm rentals or concessions.

Exceptions: No Schedule A if filing only for proxy tax (lobbying) or certain refunds (e.g., RIC/REIT gains). Consolidated filers (e.g., under section 1501) aggregate but still silo by business.

Who Files Schedule A? Quick Threshold Table (Tax Year 2024)

Organization Type	Gross UBTI Threshold	Schedule A Required?	Notes
501(c)(3) Charities	$1,000+	Yes (per business)	Includes parking, advertising.
Social Clubs (501(c)(7))	$1,000+	Yes	Bar/facility income.
IRAs/401(a) Trusts	$1,000+	Yes	Passive investments.
Proxy Tax Only	$0	No	Complete Form 990-T, lines 1–3 only.
No UBTI	N/A	No	No Form 990-T needed.

File even if net UBTI is zero—gross triggers reporting.

When Is Form 990-T Schedule A Due in 2025?

Attach to Form 990-T: 15th day of the 5th month after your tax year ends (most: May 15, 2025 for calendar-year). Trusts/IRAs: 15th day of the 4th month (April 15, 2025). E-file mandatory for tax years ending after Dec. 31, 2020.

Key 2025 Filing Deadlines Table (Tax Year 2024)

Organization Type	Original Due Date	Extended Due Date (Form 8868)
Calendar-Year Charities/Clubs	May 15, 2025	November 17, 2025
Calendar-Year Trusts/IRAs	April 15, 2025	October 15, 2025
Fiscal-Year End June 30, 2024	November 17, 2024	May 15, 2025
Fiscal-Year End Sept. 30, 2024	February 17, 2025	August 15, 2025

*Notes: Weekends/holidays shift to next business day. Pay 100% tax by original due to avoid penalties; extension via Form 8868 (now elective for territories/states). Estimated tax if $500+ owed.

IRS Form 990-T (Schedule A) Download and Printable

Download and Print: IRS Form 990-T (Schedule A)

How to Complete Form 990-T Schedule A: Step-by-Step (2024 Form)

Use the 2024 Schedule A; one per NAICS-coded business (Item C: 6-digit code, e.g., 541800 for advertising). Complete all Schedules A first, then sum positives on Form 990-T, Part I, line 1. Accrual method preferred; attach statements for details.

Part I: Unrelated Business Activity

• Item A: Unrelated business code (NAICS, e.g., 711100 for sports events).
• Item B: Description (e.g., “Concession sales at games”).
• Item C: 6-digit NAICS code.

Part II: Income

• Lines 1–5: Gross receipts ($), cost of goods sold, etc. (e.g., Line 3: Gross profit).
• Lines 6–10: Investment income (dividends, interest); exclude related-party.
• Line 11: Total gross income (sum lines 3–10).

Part III: Expenses

• Lines 12–17: Deductions (salaries, repairs, depreciation—attach Form 4562).
• Line 18: Net UBTI (line 11 minus line 17; positive to Form 990-T).

Parts IV–X: Specific Adjustments

• Part IV: NOL deduction (separate silos; carryforward only).
• Part V: Charitable contributions (up to 10% UBTI).
• Part VI: Controlled entities (50%+ ownership; include rents).
• Part VII: Exploited exempt activities (e.g., trade shows; report net).
• Part VIII: Advertising in periodicals (circulation >500; 80% reader-supported).
• Part IX: Other (e.g., parking lots; attach computation).

Pro Tip: Use Form 2220 for underpayment penalty. Software like Tax990 auto-generates from books.

E-Filing Requirements for Schedule A

Mandatory e-filing for Form 990-T (and attachments) since 2021—use IRS-approved providers (e.g., Tax990, ExpressTaxExempt). Paper rejected; benefits: Faster refunds (6–8 weeks), error validation.

Recent Changes to Form 990-T Schedule A for 2025 Filings

The 2024 form (filed 2025) streamlines with:

• Credit Lines: Part II line 4a (reducible UBTI) and Part III line 3a (non-reducible) for nonrefundable credits (e.g., Form 3800).
• Extension Update: Form 8868 now covers territories/states; elective payment election.
• AMT Exception: No Form 4626 for exempt orgs (Oct. 2024 relief).
• No Major Overhauls: Core silos intact; monitor for 2025 inflation (e.g., NOL limits).

Penalties for Late or Incomplete Schedule A Filing

• Failure to File: $25/day (max $15,000 or 5% gross income); minimum $510 if >60 days late.
• Late Payment: 0.5% monthly (max 25%) + 7% interest.
• Incomplete Silos: IRS reclassifies, increasing tax; 20% accuracy penalty.
• Revocation Risk: 3-year non-filing revokes exempt status.

Abate for reasonable cause (e.g., disaster); state UBIT may add fees.

Best Practices for Schedule A Compliance in 2025

• Silo Early: Track activities by NAICS quarterly; use software for NOL silos.
• Deduct Aggressively: Allocate direct expenses; indirect via reasonable method.
• E-File Proactively: Providers like TaxZerone auto-include Schedule A.
• Audit-Proof: Retain 7+ years of records; consult CPA for controlled entities.
• Minimize UBTI: Structure rentals as mission-related; review investments.

Conclusion: Master UBTI Reporting with Schedule A in 2025

IRS Form 990-T Schedule A ensures tax-exempt orgs pay their due on unrelated income—potentially $1,000s in liability if silos aren’t managed. With May 15, 2025, deadlines and e-filing mandates, prepare now to avoid penalties and focus on your mission.

Download the 2024 form/instructions at IRS.gov/Form990T. For help, call the Exempt Organizations hotline at 877-829-5500 or see Pub. 598. Compliant filing: Tax-smart philanthropy.

Last updated: December 2025. Verify IRS sources for advice.

 

IRS Form 8997 – Initial and Annual Statement of Qualified Opportunity Fund (QOF) Investments – The Qualified Opportunity Zone (QOZ) program, revitalized by the One Big Beautiful Bill Act (OBBBA) in July 2025, continues to drive billions in investments into economically distressed communities—offering tax deferrals, basis step-ups, and permanent gain exclusions for savvy investors. But unlocking these benefits requires meticulous reporting. IRS Form 8997, the “Initial and Annual Statement of Qualified Opportunity Fund (QOF) Investments,” is your annual compliance checkpoint, tracking holdings, deferrals, and dispositions to avoid audits and penalties.

For tax year 2024 (filed in 2025), Form 8997 remains essential for deferring gains until December 31, 2026, or earlier sale. With OBBBA’s permanent extension effective for post-2026 investments—including rolling 5-year deferrals and new Qualified Rural Opportunity Funds (QROFs)—this guide covers Form 8997 filing requirements for 2025, updates, and strategies. Download the 2024 form at IRS.gov/Form8997.

 

What Is IRS Form 8997?

Form 8997 provides the IRS with a “snapshot” of your QOF investments: holdings at year-start/end, new deferrals, and sales. It’s required annually for any QOF interest held during the year, even if no activity occurs. Key benefits it supports:

• Deferral: Postpone tax on eligible capital gains (e.g., from stock/real estate sales) invested in a QOF within 180 days.
• Step-Ups: 10% basis increase after 5 years (permanent for post-2026 investments); up to 30% for QROFs.
• Exclusion: Permanent exclusion of post-investment appreciation after 10 years (capped at 30-year FMV).

Under pre-OBBBA rules (for 2024), deferrals end December 31, 2026. OBBBA shifts to rolling 5-year deferrals post-2026, with states redesignating zones every 10 years starting July 1, 2026. File with your federal return (e.g., Form 1040); attach to Schedule D via Form 8949 for dispositions.

Who Must File Form 8997 in 2025?

Any taxpayer holding a QOF investment at any point in 2024 must file, including:

• Individuals: Deferring personal capital gains.
• Pass-Throughs: Partnerships/S corps report on Form 1065/1120-S; allocate to owners via K-1 (who file individually).
• C Corporations: Direct filers.
• Estates/Trusts: For qualifying investments.

No filing if no QOF held in 2024. Foreign taxpayers? Additional rules apply (see instructions). Even “mixed-fund” investments (qualified + non-qualified portions) require full reporting.

QOF Investor Filing Thresholds Table (Tax Year 2024)

Investor Type	QOF Held in 2024?	File Form 8997?	Additional Forms
Individual (Form 1040)	Yes	Yes	Form 8949/Schedule D for deferrals/dispositions
Partnership (Form 1065)	Yes	Yes (aggregate)	K-1 to partners; self-certify QOF on Form 8996
S Corp (Form 1120-S)	Yes	Yes	K-1 to shareholders
C Corp (Form 1120)	Yes	Yes	Direct reporting
No Holdings	N/A	No	N/A

QOFs self-certify annually via Form 8996 (attached to their return).

When Is Form 8997 Due in 2025?

Attach to your timely filed 2024 federal return (including extensions). For calendar-year filers: April 15, 2025 (or October 15 extended). Fiscal-year? Align with your return due date.

Key 2025 Filing Deadlines Table

Tax Year End	Original Due Date	Extended Due Date (Form 7004/4868)
December 31, 2024	April 15, 2025	October 15, 2025
June 30, 2025	October 15, 2025	April 15, 2026
QOF Self-Cert (Form 8996)	Same as above	Same as above

Amendments: File Form 1040-X with revised 8997 if needed. Late filing risks penalty abatement denial.

IRS Form 8997 Download and Pintable

Download and Print: IRS Form 8997

How to Complete IRS Form 8997: Step-by-Step (2024 Form)

The 2024 form has four parts; use one per QOF if multiple. Gather Form 1099-B (from QOF), prior-year 8997, and investment records. Report in U.S. dollars.

Part I: QOF Investments at Beginning of Tax Year

• Columns (a)–(g): List each QOF (name, EIN, acquisition date, deferred gain amount, basis, FMV at start, holding period if >5 years).
• Carry from prior-year Part IV.

Part II: QOF Investments Acquired During Tax Year

• Lines 1–5: New investments (QOF details, deferral election date, gain deferred, basis invested).
• Line 6: Total new deferrals (report on Form 8949, column (g) adjustment code “R”).

Part III: QOF Investments Disposed During Tax Year

• Columns (a)–(h): Sales/exchanges (QOF, disposition date, proceeds, basis, gain recognized—including deferred portion).
• Check if no 1099-B received; attach computation.
• Flow to Form 8949/Schedule D.

Part IV: QOF Investments at End of Tax Year

• Summarize holdings (from Parts I/II minus III); carry to next year’s Part I.
• Totals from (e)–(f) to Schedule D if applicable.

Pro Tip: For >5-year holds, adjust basis per instructions (10% step-up). E-file supported; software like TurboTax integrates with Schedule D.

E-Filing Requirements for Form 8997

E-file with your return via IRS Modernized e-File (MeF)—mandatory for most (10+ forms). Paper OK for small filers; mail to IRS per instructions. Faster processing; auto-checks for QOF EINs.

Recent Changes to Form 8997 for 2025 Filings

The 2024 form is unchanged structurally, but OBBBA impacts reporting:

• Permanent Extension: No 2026 sunset; rolling 5-year deferrals post-2026 (recognition at sale or 5 years).
• QROFs: New rural funds with 30% step-up (vs. 10% for QOFs); 50% substantial improvement (from 100%) effective July 4, 2025.
• Zone Redesignations: States propose July 1, 2026; effective January 1, 2027—track for future investments.
• No Interim Gain Deferral: Post-2026 sales don’t auto-defer unless new election.
• Reporting Enhancements: New Sections 6039K/L require QOF/QOZB annual filings post-July 4, 2025.

For 2024, stick to legacy rules; 2025 forms may add QROF lines.

Penalties for Late or Incomplete Form 8997 Filing

Non-compliance erodes benefits:

• Failure to File: $10,000+ per year (Section 6651); escalates for continued failure.
• Incomplete Reporting: Disallowed deferrals; 20% accuracy penalty on underpaid tax.
• QOF Non-Certification: Loss of qualified status; retroactive taxation.

Reasonable cause waives; abate via letter. Audits focus on basis adjustments.

Best Practices for Form 8997 Compliance in 2025

• Track Annually: Use QOF statements for accurate FMV/basis; reconcile with K-1s.
• Elect Deferral Timely: Within 180 days; note on 8949.
• Leverage OBBBA: Plan rural QROFs for enhanced step-ups; monitor zone redesigns.
• Software/Pro Help: TurboTax for individuals; CPA for pass-throughs/complex holds.
• Retain Records: 7+ years of docs, including 1099-Bs and elections.

Conclusion: Secure QOZ Benefits with Form 8997 in 2025

IRS Form 8997 is the guardian of your QOF investments—ensuring deferrals up to December 31, 2026 (legacy) or rolling 5 years (post-OBBBA), plus step-ups and exclusions. With April 15, 2025, deadlines and permanent program life, file accurately to sustain economic impact and tax savings.

Download the 2024 form/instructions at IRS.gov/Form8997. For guidance, review Pub. 544 or call 800-829-1040. Invest in zones—report with confidence.

Last updated: December 2025. Consult IRS sources or a tax advisor for advice.

 

IRS Form 8995-A (Schedule A) – Specified Service Trades or Businesses – If your business involves law, medicine, consulting, or other “specified service trades or businesses” (SSTBs), the Qualified Business Income (QBI) deduction—up to 20% of your pass-through income—can be a game-changer. But SSTBs face strict phase-out rules based on your taxable income, potentially reducing or eliminating the benefit entirely. Schedule A (Form 8995-A) is the IRS worksheet that computes this “applicable percentage” during the phase-in range, ensuring you claim the right amount.

For tax year 2024 (filed in 2025), SSTB phase-outs start at $191,950 (single) or $383,900 (married filing jointly), fully eliminating the deduction above $241,950/$483,900. This SEO-optimized guide covers eligibility, thresholds, line-by-line instructions, and tips to maximize your deduction before it sunsets after 2025. Download the form at IRS.gov/Form8995A.

 

What Is Schedule A (Form 8995-A) for SSTBs?

Schedule A (Form 8995-A) calculates the phase-in reduction for QBI from SSTBs when your taxable income (before the QBI deduction) falls in the phase-out range. SSTBs are professional services where the principal asset is the reputation or skill of employees/owners, like health, law, accounting, or performing arts.

• Full Deduction: Below threshold ($191,950 single/$383,900 joint for 2024)—100% applicable percentage.
• Phase-In: In range ($191,951–$241,950 single/$383,901–$483,900 joint)—gradual reduction via applicable percentage.
• No Deduction: Above upper limit—0% for SSTB QBI.

Attach to Form 8995-A (used when income > thresholds or complex scenarios); flows to Part I, line 2. PTP SSTB income also phases out here. No changes for 2025 filings beyond inflation adjustments.

Who Must File Schedule A (Form 8995-A) in 2025?

Complete Schedule A if:

• Your trade/business is an SSTB.
• Taxable income > threshold but ≤ upper limit (phase-in range).
• You have QBI from the SSTB (positive or loss).

Use one per SSTB; aggregate if eligible (but can’t aggregate SSTB with non-SSTB). Below threshold? Skip to Form 8995. Above upper? SSTB QBI = $0.

SSTB Examples Table

Field	SSTB?	Notes
Law Firm	Yes	Legal services.
Medical Practice	Yes	Health services.
Accounting Firm	Yes	Accounting/bookkeeping.
Consulting (Management)	Yes	If reputation-based.
Retail Store	No	Goods sales.
Engineering (Non-Health)	Partial	If <10% gross receipts from SSTB services (de minimis rule).

De minimis: <10% SSTB services if gross receipts ≤$25M; <5% if >$25M.

2024–2025 QBI SSTB Phase-Out Thresholds

Thresholds adjust annually for inflation. For 2024 (filed 2025):

Filing Status	Threshold (Full 100%)	Phase-In Range (0–100% Reduction)	Upper Limit (0% Deduction)
Single/Head of Household	$191,950	$191,951–$241,950	$241,951+
Married Filing Jointly	$383,900	$383,901–$483,900	$483,901+

For 2025 (filed 2026): $197,300 single/$394,600 joint (phase-in to $247,300/$494,600). Range width: $50,000 single/$100,000 joint.

IRS Form 8995-A (Schedule A) Download and Printable

Download and Print: IRS Form 8995-A (Schedule A)

When Is Schedule A (Form 8995-A) Due in 2025?

Attach to Form 8995-A with your 2024 Form 1040 by April 15, 2025 (or October 15 extended). No separate deadline—deduction reduces AGI on Schedule 1, line 13.

Tax Year End	Original Due Date	Extended Due Date
Dec. 31, 2024	April 15, 2025	October 15, 2025

How to Complete Schedule A (Form 8995-A): Step-by-Step (2024 Form)

Use the 2024 Schedule A; one per SSTB. Complete Schedule D first if patron reduction applies. Enter on Form 8995-A, line 2 (or Schedule C, line 2 if wage-limited).

Line-by-Line Guide

1. Name/TIN: SSTB name and EIN/SSN.
2. QBI or (Loss): Net QBI from SSTB (from Part I or K-1 Box 20, Code Z). Losses carry forward but phase separately.
3. Qualified PTP Income or (Loss): If PTP SSTB (K-1 Box 20, Code AC).
4. Total: Line 2 + 3.
5. Taxable Income Before QBI: From Form 8995-A, line 26.
6. Threshold: $191,950 single/$383,900 joint.
7. Excess: Line 5 – 6 (if negative, 100% applicable; skip to line 11).
8. Phase-In Range: $50,000 single/$100,000 joint.
9. Ratio: Line 7 ÷ 8 (e.g., 0.50 = 50% phased).
10. Applicable %: 1.00 – line 9 (e.g., 0.50 = 50% deductible).
11. Adjusted QBI: Line 4 × line 10 (positive only; enter on Form 8995-A, line 2/4 or Schedule C). 12–15: Repeat for up to 3 more SSTBs; total on line 16.

Pro Tip: For losses, applicable % applies when allowed in taxable income. Use software for multi-SSTB calcs.

Recent Changes to Schedule A (Form 8995-A) for 2025 Filings

No structural updates to Schedule A for 2024 (filed 2025)—focus remains on phase-in ratio. Key notes:

• Threshold Inflation: 2024 figures as above; 2025 at $197,300/$394,600 (Rev. Proc. 2024-40).
• No Extension Yet: QBI sunsets post-2025; proposals (e.g., Ways & Means) for 23% rate/permanence pending.
• Negative Dividends Fix: Exclude negatives on Form 8995-A, line 34 (since 2021).

Monitor IRS.gov for 2025 drafts.

Penalties for Errors on Schedule A

• Underclaim: Miss phase-in = 20% accuracy penalty on understated tax.
• Incorrect %: Audit risk high; IRS matches K-1s.
• Late Filing: 5% monthly on tax due (max 25%).

Abate for reasonable cause; amend via 1040-X.

Best Practices for Schedule A Compliance in 2025

• Classify Early: Review if SSTB (Pub. 535); de minimis for hybrid.
• Income Planning: Bunch deductions to stay below threshold.
• Aggregate Non-SSTB: Boost via Schedule B (can’t mix with SSTB).
• Software: TurboTax/H&R Block auto-phases; retain K-1s/worksheets 3+ years.
• Pro Help: CPA for PTPs or multi-entity.

Conclusion: Navigate SSTB Phase-Outs with Schedule A in 2025

IRS Form 8995-A Schedule A ensures fair QBI access for SSTBs in the phase-in range—potentially saving $38,000+ on $383,900 joint income. With thresholds at $383,900 (2024) rising to $394,600 (2025), review now before the April 15, 2025, deadline.

Download at IRS.gov/Form8995A; see Pub. 535. Consult a tax advisor—optimize before sunset.

Last updated: December 2025. Verify IRS sources.

 

IRS Form 8995 – Qualified Business Income Deduction Simplified Computation – If you own a sole proprietorship, partnership, S-corp, LLC, or rental property, the Section 199A Qualified Business Income (QBI) Deduction is one of the biggest tax breaks still available in 2025 — letting you deduct up to 20% of your business income directly from taxable income.
For most taxpayers with 2024 taxable income under $383,900 (married filing jointly) or $191,950 (single), the calculation is simple and uses IRS Form 8995 — the simplified version of the QBI worksheet.

No W-2 wage limits. No unadjusted basis calculations. No aggregation headaches. Just a fast 20% deduction.

This SEO-optimized 2025 guide explains exactly who can use Form 8995, the 2024 income thresholds, step-by-step instructions, common mistakes, and how to claim thousands in savings when you file in 2025.

 

What Is IRS Form 8995?

Form 8995, “Qualified Business Income Deduction Simplified Computation,” is the easy-button version of the QBI deduction for taxpayers whose taxable income falls below the phase-out thresholds or who have only non-SSTB income.

• Automatically gives you the full 20% of qualified business income + REIT dividends + PTP income.
• No need to report W-2 wages or property basis (that’s Form 8995-A territory).
• Flows straight to Form 1040, Schedule 1, line 13 → reduces your taxable income dollar-for-dollar.

The deduction expires after December 31, 2025, unless Congress extends it — so 2024 (filed in 2025) is one of your last guaranteed chances.

2024 Income Thresholds – Who Gets the Simple Form 8995?

Filing Status	2024 Taxable Income (before QBI)	Form Required
Single / Head of Household	≤ $191,950	Form 8995 (full 20%)
Married Filing Jointly	≤ $383,900	Form 8995 (full 20%)
Single / HoH	$191,951 – $241,950	Form 8995-A (phase-in rules)
MFJ	$383,901 – $483,900	Form 8995-A (phase-in rules)
Above upper limits	Any amount	Form 8995-A (wage/property limits apply)

Good news for 2025 filings: The thresholds are inflation-adjusted every year. IRS Rev. Proc. 2024-40 set the 2024 numbers shown above (the same ones you’ll use on your 2024 return filed in 2025).

IRS Form 8995 Download and Printable

Download and Print: IRS Form 8995

Who Qualifies for the Full 20% on Form 8995?

You can use the simplified Form 8995 if all of these are true:

• 2024 taxable income (Form 1040 line 15) is below the threshold above.
• You have positive qualified business income from a U.S. trade or business.
• Your business is not a specified service trade or business (SSTB) — or if it is, your income is low enough that the SSTB restriction hasn’t started phasing in.
• You are not a patron of an agricultural/horticultural cooperative (they use Schedule D on 8995-A).

Eligible sources:

• Schedule C (sole prop)
• Schedule E (rental real estate that rises to trade/business level or meets safe harbor)
• Schedule F (farming)
• Schedule K-1 from partnerships, S-corps, trusts (Box 20, codes Z, AA, AB, AC)

Step-by-Step: How to Fill Out Form 8995 (2024 Form, Filed in 2025)

The 2024 Form 8995 is only one page with 17 lines.

Line	What to Enter (2024 Example)
1	Total QBI from all activities (add up K-1 Box 20 code Z amounts + Schedule C profit)
2	QBI losses carried forward from prior years (usually $0)
3	Total QBI (line 1 + line 2)
4	Qualified REIT dividends (K-1 Box 20 code AB)
5	Qualified PTP income (K-1 Box 20 code AC)
6	Total QBI + REIT + PTP (lines 3 + 4 + 5)
7	20% × line 6 → tentative deduction
8	Your 2024 taxable income (Form 1040 line 15)
9	Net capital gain (Form 1040 line 16)
10	Line 8 minus line 9
11	20% × line 10
12	Lesser of line 7 or line 11 → this is your actual deduction
15	Transfer amount from line 12 to Form 1040 Schedule 1 line 13

That’s it. TurboTax, H&R Block, TaxAct, and FreeTaxUSA all auto-populate this from your K-1s and schedules.

Common Mistakes That Cost Taxpayers Thousands

• Forgetting to include REIT dividends or PTP income on lines 4–5
• Using Form 8995 when your income is above the threshold → IRS will reject or reduce the deduction
• Including negative QBI (losses) without carrying them forward correctly
• Thinking rental income never qualifies → it can if you meet the 250-hour safe harbor (Notice 2019-07)

2025 Filing Deadlines & Tips

Event	Date
2024 Tax Return Due	April 15, 2025
Extension (Form 4868)	October 15, 2025
Form 8995 must be attached to return	Same as above

Pro tips:

• E-file — Form 8995 is fully supported electronically.
  Keep your K-1s — the IRS matches Box 20 codes exactly.
  If you’re close to the threshold, run both Form 8995 and 8995-A to see which gives the bigger deduction.

Conclusion: Claim Up to $38,390 Off Your Taxes with Form 8995 in 2025

For millions of small-business owners and landlords with 2024 taxable income under $383,900 (MFJ) or $191,950 (single), IRS Form 8995 delivers a straightforward 20% deduction — often worth $10,000–$30,000+ — with almost no extra paperwork.

Don’t leave this money on the table. When you file your 2024 return in 2025, make sure Form 8995 is included.

Download the official 2024 Form 8995 and instructions at → IRS.gov/Form8995
Free filing software with built-in QBI calculator: IRS Free File, TurboTax, TaxAct, and more.

File by April 15, 2025 — and keep the 20% break while it lasts!

Last updated: December 2025 | Sources: IRS Form 8995 & 8995-A Instructions (2024), Rev. Proc. 2024-40, Pub. 535