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IRS Form 8275 – Disclosure Statement – IRS Form 8275, known as the Disclosure Statement, is a critical tool for taxpayers and tax professionals. It helps disclose positions on a tax return that may not be fully clear, potentially avoiding costly accuracy-related penalties.

Filing Form 8275 proactively alerts the IRS to uncertain or aggressive tax positions, demonstrating good faith and reducing penalty risks if the IRS challenges the position.

 

What Is IRS Form 8275?

The IRS defines Form 8275 (Revision October 2024) as a form taxpayers and preparers use to disclose items or positions not otherwise adequately disclosed on a tax return. This disclosure avoids portions of the accuracy-related penalty under IRC Section 6662, including:

• Substantial understatement of income tax
• Disregard of rules

It applies only to non-tax-shelter items with a reasonable basis (a higher standard than “not frivolous” but lower than “substantial authority”).

Form 8275 does not apply to positions contrary to Treasury regulations—use Form 8275-R (Regulation Disclosure Statement, Revision November 2024) instead.

When Should You File Form 8275?

File Form 8275 when your tax return includes a position that:

• Lacks full support on the return itself
• Could lead to an understatement of tax
• Has a reasonable basis but might invite IRS scrutiny

Common scenarios include:

• Uncertain deductions
• Credits
• Income exclusions
• Valuation issues

Disclosure protects against the 20% accuracy-related penalty on underpayments from substantial understatements or negligence. It also helps avoid preparer penalties under Section 6694.

Disclosure does not protect against penalties for:

• Tax shelter items
• Fraud
• Positions lacking reasonable basis

For recurring items (e.g., annual depreciation), file Form 8275 each year. Carryover or carryback items from disclosed years may not require repeat filing.

Annual IRS revenue procedures (e.g., for 2024-2025) list items with automatic adequate disclosure—no Form 8275 needed if met.

Key Differences: Form 8275 vs. Form 8275-R

Aspect	Form 8275	Form 8275-R
Purpose	Disclose positions not contrary to regulations	Disclose positions contrary to Treasury regulations
When to Use	Gray-area positions with reasonable basis	Challenging validity of a regulation
Penalty Protection	Substantial understatement, disregard of rules (non-tax shelter)	Similar, but specific to regulation conflicts
Latest Revision	October 2024	November 2024

Use the wrong form, and disclosure may be invalid.

IRS Form 8275 Download and Printable

Download and Print: IRS Form 8275

How to File IRS Form 8275

1. Attach to Your Return — File with your original tax return (or qualified amended return). Keep a copy.
2. Complete the Form:
   • Part I: List disclosed items (form/schedule, line, amount).
   • Part II: Provide detailed facts and explanation of your position.
   • Part III: For pass-through entities (e.g., partnerships).
   • Use continuation sheets if needed.
3. Pass-Through Items — Disclose on the entity’s return if possible; otherwise, on your own.
4. Foreign Entities — Match reference ID from forms like Form 5471.

For corporations filing Schedule UTP (Uncertain Tax Positions), separate Form 8275 may not be needed for certain disclosures.

Benefits of Filing Form 8275

• Reduces or eliminates accuracy-related penalties if the position has reasonable basis.
• Shows good faith, potentially aiding reasonable cause defenses.
• Does not guarantee IRS acceptance but flags the issue upfront.

Risks of Not Disclosing

Without adequate disclosure, the IRS may impose a 20% penalty on underpayments from disallowed positions. Preparers face penalties for unreasonable positions.

As of December 2025, use the latest versions from IRS.gov (Form 8275 Rev. October 2024; instructions at irs.gov/form8275). Always check for updates.

Consult a tax professional for your situation—proper disclosure can save thousands in penalties.

For official guidance, visit IRS.gov/Form8275 and download the form and instructions.

 

IRS Form 461 – Limitation on Business Losses – Business owners and noncorporate taxpayers often rely on deducting losses to offset other income, but federal tax rules impose limits. IRS Form 461, Limitation on Business Losses, calculates the excess business loss (EBL) disallowance under Internal Revenue Code Section 461(l). This provision prevents excessive business losses from reducing nonbusiness income beyond a certain threshold.

As of 2025, this limitation is permanent, thanks to the One Big Beautiful Bill Act (OBBBA, P.L. 119-21), which extended and solidified the rule originally introduced by the Tax Cuts and Jobs Act (TCJA).

 

What Is the Excess Business Loss Limitation?

Section 461(l) limits deductions for net losses from trades or businesses for noncorporate taxpayers (individuals, estates, trusts, and certain exempt organizations). The rule applies after other limitations, such as:

• Basis rules
• At-risk rules (Form 6198)
• Passive activity loss rules (Form 8582)

An excess business loss occurs when aggregate trade or business deductions exceed aggregate trade or business gross income/gains plus an inflation-adjusted threshold.

Disallowed excess losses do not disappear—they become a net operating loss (NOL) carryover to future years, deductible under NOL rules (see Form 172 and Pub. 536).

Key exclusions:

• Capital gains/losses from asset sales are generally not included
• Wages from employment are treated as business income for this calculation
• Section 199A qualified business income deductions and prior NOLs are disregarded in the EBL computation

2025 Threshold Amounts

For tax year 2025, the thresholds are:

• $313,000 for single filers, heads of household, or married filing separately
• $626,000 for married filing jointly or qualifying surviving spouses

These amounts are inflation-adjusted annually (per Rev. Proc. 2024-40).

If net business losses exceed the threshold, the excess is disallowed in 2025 and carried forward as an NOL.

Who Must File Form 461?

File Form 461 if you are a noncorporate taxpayer and:

1. Net losses from all trades or businesses exceed $313,000 ($626,000 joint), or
2. Any single line (1–8) on the form shows a loss over $156,500 (half the base threshold, to catch concentrated losses).

Attach Form 461 to your return (e.g., Form 1040, 1041, or 990-T).

IRS Form 461 Download and Printable

Download and Print: IRS Form 461

How to Calculate Excess Business Loss on Form 461

Form 461 has three parts:

Part I: Total Income/Gain or Loss/Deduction Attributable to Trade or Business

Pulls amounts from Schedule 1 (Form 1040) lines, including:

• Nonemployee compensation
• Business income/loss (Schedule C)
• Rental real estate/partnership/S corp (Schedule E)
• Farm income/loss (Schedule F)
• Other gains/losses (Form 4797)

Adjust for non-business items.

Part II: Adjustments for Non-Trade or Business Amounts

Remove items like capital losses or personal deductions.

Part III: Limitation Calculation

• Combine adjusted business income/loss
• Subtract non-business income/gains
• Apply the threshold
• Resulting negative amount (if over threshold) = excess business loss (reported as positive income on Schedule 1, line 8p, effectively disallowing the deduction)

Special rules apply for farming vs. nonfarming losses—farming losses get priority allocation of the threshold.

Example: 2025 Excess Business Loss Calculation

Assume a married couple filing jointly with:

• $100,000 business income
• $800,000 business deductions/losses

Net business loss: $700,000

Threshold: $626,000

Allowable loss: $626,000 (offsets other income)

Excess: $74,000 → disallowed in 2025, carried forward as NOL

The couple adds $74,000 as “other income” on their return, increasing taxable income accordingly.

Planning Tips for Business Owners

• Monitor aggregate losses across all activities (sole prop, partnerships, S corps, rentals)
• Consider timing income acceleration or deduction deferral to stay under thresholds
• Track NOL carryforwards carefully—EBL-generated NOLs follow standard rules (generally no carryback, 80% income limitation in some cases)
• For pass-through entities: Limitation applies at owner level

Consult a tax professional for complex situations, especially with passive activities or multiple entities.

Sources and Further Reading

• IRS Form 461 (2025): https://www.irs.gov/pub/irs-pdf/f461.pdf
• Instructions for Form 461 (2025): https://www.irs.gov/pub/irs-pdf/i461.pdf
• IRS Newsroom: Excess Business Losses – https://www.irs.gov/newsroom/excess-business-losses
• Publication 536: Net Operating Losses

Stay compliant and maximize allowable deductions by understanding Form 461’s role in your 2025 tax return.

 

IRS Form 8332 – Release/Revocation of Release of Claim to Exemption for Child by Custodial Parent – Navigating tax rules after divorce or separation can be complex, especially when it involves claiming a child as a dependent. IRS Form 8332, officially titled Release/Revocation of Release of Claim to Exemption for Child by Custodial Parent, plays a key role for divorced or separated parents. This form allows the custodial parent to release their claim to certain child-related tax benefits, enabling the noncustodial parent to claim them instead.

Even though personal exemption deductions are suspended through 2025 under the Tax Cuts and Jobs Act, Form 8332 remains essential for accessing benefits like the Child Tax Credit (CTC) and Credit for Other Dependents (ODC). Understanding Form 8332 can help avoid IRS disputes and optimize tax savings for your family.

 

What Is IRS Form 8332 and Why Is It Important in 2025?

Form 8332 is used exclusively by the custodial parent—the parent with whom the child lived for the greater number of nights during the tax year (or the parent with higher adjusted gross income if nights are equal)—to:

• Release the claim to treat the child as a dependent for the current tax year (Part I).
• Release the claim for future tax years (Part II).
• Revoke a previous release for future tax years (Part III).

By signing this form, the custodial parent allows the noncustodial parent to claim the child as a qualifying child for specific tax benefits, including:

• Child Tax Credit (up to $2,000 per child in recent years, subject to phaseouts).
• Credit for Other Dependents ($500 per dependent).

However, Form 8332 does not transfer benefits tied to residency, such as:

• Head of Household filing status.
• Earned Income Tax Credit (EITC).
• Dependent Care Credit.

These generally remain with the custodial parent.

The noncustodial parent must attach the signed Form 8332 (or a compliant substitute) to their tax return each year they claim the benefits. For e-filed returns, it may require Form 8453.

Who Is the Custodial vs. Noncustodial Parent?

The IRS defines the custodial parent as the one with whom the child resided for more than half the year. Tiebreakers (equal nights) go to the parent with higher AGI. This determination is independent of legal custody labels in divorce decrees.

Key Rules for Divorce Decrees and Form 8332

A common misconception is that a divorce decree alone allows the noncustodial parent to claim the child. IRS rules are strict:

• For decrees executed after December 31, 2008, a divorce or separation agreement cannot substitute for Form 8332. The custodial parent must sign and provide Form 8332.
• Older decrees (post-1984 but pre-2009) may allow attaching specific pages if they unconditionally release the claim and conform to Form 8332’s substance.

Without proper documentation, the IRS will disallow the noncustodial parent’s claim, even if the decree states otherwise.

IRS Form 8332 Download and Prinable

Download and Print: IRS Form 8332

How to Complete and File Form 8332

1. Download the Form: Get the latest version (Rev. December 2025 draft available) from IRS.gov.
2. Fill Out Details:
   • Child’s name and SSN.
   • Custodial parent’s name, SSN, and signature.
   • Specify years (current, specific future, or “all future years”).
3. Separate Form per Child: Required for each qualifying child.
4. Provide to Noncustodial Parent: The custodial parent gives the signed original or copy.
5. Noncustodial Parent’s Responsibility: Attach to Form 1040 (paper) or follow e-file instructions.
6. Revocation: Complete Part III to revoke prior releases. Effective the following tax year (e.g., revoke in 2025 → effective 2026). Notify the noncustodial parent in writing.

Common Mistakes to Avoid with Form 8332

• Assuming a court order is sufficient post-2008.
• Forgetting to attach the form annually (even for multi-year releases).
• Releasing benefits without considering overall family tax impact.
• Revoking too late (no retroactive effect).

Frequently Asked Questions About Form 8332

Does Form 8332 affect child support or alimony?
No, it only impacts federal tax benefits.

Can I use it if parents were never married?
Yes, as long as parents lived apart for the last 6 months of the year.

What if the custodial parent won’t sign?
The noncustodial parent generally cannot claim the benefits without it.

Is Form 8332 still relevant in 2025?
Absolutely—while personal exemptions are $0 through 2025, it unlocks CTC and ODC.

For the most accurate guidance, consult IRS Publication 501 (Dependents, Standard Deduction, and Filing Information) and Publication 504 (Divorced or Separated Individuals), or a tax professional. Download Form 8332 and related publications directly from IRS.gov.

Proper use of Form 8332 ensures compliance and maximizes tax advantages for both parents. Always verify the latest rules on the official IRS website, as tax laws can change.

 

IRS Form 4563 – Exclusion of Income for Bona Fide Residents of American Samoa – If you’re a bona fide resident of American Samoa, you may qualify to exclude certain income from U.S. federal taxes under Internal Revenue Code (IRC) Section 931. IRS Form 4563, Exclusion of Income for Bona Fide Residents of American Samoa, allows eligible taxpayers to calculate and claim this exclusion when filing their U.S. tax return. This provision helps prevent double taxation for residents who pay taxes to the American Samoa government.

As of 2025, the rules remain governed by the latest revision of Form 4563 (September 2024) and IRS Publication 570, Tax Guide for Individuals With Income From U.S. Territories. American Samoa is unique among U.S. territories as the only one fully qualifying for this possession exclusion under Section 931.

 

What Is IRS Form 4563?

Form 4563 is a one-page IRS document used to figure the amount of qualifying income from American Samoa that you can exclude from your gross income on Form 1040 or 1040-SR. You must attach the completed Form 4563 to your federal tax return if claiming the exclusion.

The form includes:

• Questions to verify your residency status.
• Lines to report qualifying income types (e.g., wages, interest, dividends, rentals).
• A total exclusion amount on Line 15.

Key note: U.S. government employees (including military) cannot exclude income earned from federal service, even if sourced in American Samoa.

IRS Form 4563 Download and Printable

Download and Print: IRS Form 4563

Who Qualifies for the Income Exclusion?

To claim the exclusion on Form 4563, you must meet these requirements for the entire tax year:

1. Bona Fide Resident of American Samoa:
   • You must be a bona fide resident for the full taxable year (e.g., January 1 to December 31 for calendar-year filers).
   • This is determined under IRC Section 937: You have a tax home in American Samoa, a closer connection to American Samoa than to the U.S. or any foreign country, and meet presence tests (generally at least 183 days present).
   • Special rules apply for the year you move to or from American Samoa (see Publication 570).
2. Qualifying Income:
   • Income from sources within American Samoa, or
   • Income effectively connected with a trade or business in American Samoa.

Examples of sourced income:

• Wages for services performed in American Samoa.
• Interest from banks in American Samoa.
• Dividends from companies organized in American Samoa.
• Rental income from property in American Samoa.
• Gains from sale of real property in American Samoa.

Non-qualifying income includes U.S. government pay and certain investment gains under special rules.

There is a de minimis exception for temporary work in American Samoa (up to 90 days and $3,000 earned) if you’re not a bona fide resident.

How to Determine Bona Fide Residency

The IRS uses three main tests (detailed in Publication 570 and Treas. Reg. §1.937-1):

• Presence Test: Generally, present in American Samoa for at least 183 days in the year, with limited exceptions.
• Tax Home Test: Your principal place of business or employment is in American Samoa.
• Closer Connection Test: Stronger ties (family, home, voting, banking) to American Samoa than elsewhere.

If you begin or end residency during the year, file Form 8898 to notify the IRS.

How to Complete and File Form 4563

1. Download the latest Form 4563 from IRS.gov (Rev. September 2024 as of late 2025).
2. Answer residency questions (Lines 1–6).
3. Report qualifying amounts on Lines 7–14 (e.g., wages, interest, dividends).
4. Total the excludable income on Line 15.
5. Attach to your Form 1040 or 1040-SR.

Filing address: Generally, Department of the Treasury, Internal Revenue Service, Austin, TX 73301-0215 (or as specified in your return instructions).

You may still need to file a territorial return with the American Samoa Tax Office.

Important Limitations and Considerations for 2025

• No Exclusion for U.S. Federal Employees: Pay from the U.S. government is not excludable.
• Credits and Deductions: Certain deductions/credits allocable to excluded income may be limited.
• Earned Income Credit (EIC) and Others: Bona fide residents generally cannot claim EIC, ACTC, or AOTC on U.S. returns; check territorial equivalents.
• Self-Employment Tax: Excluded income may still be subject to self-employment tax (report on Form 1040-SS if no wages).

For military members: Compensation may be sourced to American Samoa under the Servicemembers Civil Relief Act (SCRA).

Where to Find More Information

• Official Form 4563 and instructions: IRS.gov/Form4563
• Publication 570 (2024 edition, applicable for 2025 filings): IRS.gov/Pub570
• IRC Section 931: Detailed in U.S. Code and regulations.

Always consult a tax professional or the IRS for your specific situation, as rules can have nuances based on individual facts.

This exclusion can significantly reduce your U.S. tax liability if you qualify—ensure accurate reporting to avoid penalties. For the 2025 tax season (filing in 2026), use the most current forms available on IRS.gov.

 

IRS Form 5500-EZ – Annual Return of A One Participant (Owners/Partners and Their Spouses) Retirement Plan or A Foreign Plan –  is a critical annual filing requirement for owners of solo or one-participant retirement plans, such as Solo 401(k)s, as well as certain foreign plans. This form ensures compliance with Internal Revenue Code reporting obligations and helps the IRS monitor retirement plan assets. Failing to file on time can result in significant penalties, making it essential for business owners and self-employed individuals to understand the rules.

 

What Is Form 5500-EZ?

Form 5500-EZ, titled “Annual Return of A One-Participant (Owners/Partners and Their Spouses) Retirement Plan or A Foreign Plan,” is used to report information about retirement plans that cover only the business owner(s) and their spouses, or certain foreign plans not subject to ERISA Title I reporting. It satisfies filing obligations under Internal Revenue Code section 6058(a).

Unlike the full Form 5500 (for larger plans) or Form 5500-SF (for small plans with employees), Form 5500-EZ is specifically for “one-participant plans.” Since 2021, one-participant plans can no longer use Form 5500-SF.

Who Must File Form 5500-EZ?

You must file Form 5500-EZ if your plan is a one-participant plan and meets these criteria:

• One-Participant Plan Definition: Covers solely the business owner (and spouse) who owns the entire business, or partners (and their spouses) in a partnership. This includes Solo 401(k)s, profit-sharing plans, or defined benefit plans for self-employed individuals. (2% S-corporation shareholders are treated as partners.)
• Asset Threshold: Required if total plan assets exceed $250,000 at the end of the plan year (combine assets from all one-participant plans maintained by the employer). No filing is needed if assets are $250,000 or less, unless it’s the final plan year (plan termination).
• Foreign Plans: Certain plans maintained outside the U.S. primarily for nonresident aliens, if the employer deducts contributions on a U.S. tax return.

Always file for the final plan year, regardless of assets.

IRS Form 5500-EZ Download and Printable

Download and Print: IRS Form 5500-EZ

Filing Requirements and Deadlines for 2025

• Due Date: Last day of the 7th month after the plan year ends (e.g., July 31, 2026, for calendar-year 2025 plans).
• Extension: File Form 5558 for an automatic 2.5-month extension.
• Electronic vs. Paper Filing:
  • Electronic filing is available via the DOL’s EFAST2 system (recommended for confirmation of receipt).
  • Mandatory Electronic Filing: For plan years beginning on or after January 1, 2024 (including 2025), if you file at least 10 returns of any type with the IRS in the calendar year, you must file Form 5500-EZ electronically via EFAST2.
  • Otherwise, paper filing with the IRS is allowed.
  • Waivers for undue hardship are available on a case-by-case basis.
• Where to File:
  • Electronic: Through EFAST2 (efast.dol.gov).
  • Paper: Mail to the IRS (address in instructions).

Note: Information from one-participant or foreign plans is not publicly disclosed, unlike larger plan filings.

How to Complete and File Form 5500-EZ

The form is relatively straightforward, requiring basic plan information, assets, liabilities, and participant counts. Key sections include:

• Plan identifier, employer details, and asset values.
• For defined benefit plans, retain (but do not attach) Schedule SB if applicable.

Use the current year’s form and instructions from IRS.gov. For 2025 plan years, refer to the latest IRS instructions (typically released early in the year).

Penalties for Late or Non-Filing

Penalties can reach $250 per day (no maximum in some cases). However, relief options include:

• IRS Late Filer Penalty Relief Program: File paper returns with specific markings for reduced or waived penalties.
• Avoid penalties by filing on time or seeking extensions.

Key Changes and Tips for 2025

• The electronic filing threshold dropped to 10 returns starting in 2024, affecting more filers in 2025.
• Always check for updates on IRS.gov, as forms and rules can change annually.
• If your plan grows to include employees, switch to Form 5500 or 5500-SF.

For official guidance, download the latest Form 5500-EZ and instructions from the IRS website (irs.gov/forms-pubs/about-form-5500-ez). Consult a tax professional for personalized advice, especially if combining plans or dealing with loans/investments.

Staying compliant with Form 5500-EZ protects your retirement plan and avoids costly IRS penalties. File accurately and on time!

 

IRS Form 8282 – Donee Information Return (Sale, Exchange or Other Disposition of Donated Property) – IRS Form 8282, known as the Donee Information Return (Sale, Exchange, or Other Disposition of Donated Property), is a critical compliance tool for charitable organizations. It ensures transparency when non-cash donated property is sold or otherwise disposed of shortly after receipt. This form helps the IRS monitor whether high-value donations are used as intended, protecting the integrity of charitable contribution deductions.

As of 2025, requirements remain consistent with prior years, based on official IRS guidance. Charitable organizations (donees) must file this form under specific circumstances to avoid penalties.

 

What Is IRS Form 8282?

The IRS requires donee organizations—typically tax-exempt charities—to file Form 8282 when they dispose of charitable deduction property within three years of the original donation date. Disposition includes selling, exchanging, consuming, or otherwise transferring the property.

The form reports details to the IRS and provides a copy to the original donor. This allows the IRS (and potentially the donor) to verify if the property was used for the charity’s exempt purpose or sold prematurely, which could affect the donor’s prior tax deduction.

Key source: IRS About Form 8282.

When Must You File Form 8282?

File Form 8282 if all these conditions apply:

• The property qualifies as charitable deduction property: Non-cash items (other than cash or publicly traded securities) with a claimed value over $5,000 per item or group of similar items. The original donee must have signed Section B of the donor’s Form 8283 (Noncash Charitable Contributions).
• The donee (original or successor) disposes of the property within 3 years of the original receipt date.
• No exceptions apply (see below).

Filing deadline: Submit within 125 days after the disposition date. Provide Copy A to the IRS and Copy B to the original donor.

Exceptions—no filing required if:

• The property’s appraised value was $500 or less (if properly identified on the donor’s Form 8283).
• The property was consumed or distributed free of charge for charitable purposes (e.g., food to the needy).
• The disposition resulted from unintended circumstances (e.g., natural disaster), with proper certification on the form.

Successor donees (if property transfers to another charity within the 3-year period) must also comply if they dispose of it.

Source: IRS charitable organizations guidance and Form 8282 PDF (Rev. October 2021, current as of 2025).

IRS Form 8282 Download and Printable

Download and Print: IRS Form 8282

Connection to Form 8283: Noncash Charitable Contributions

Form 8282 ties directly to Form 8283, which donors file for non-cash contributions over $500 (with appraisal required over $5,000).

• Donors attach Form 8283 to their tax return.
• The donee signs the acknowledgment on Form 8283, confirming receipt and agreeing to potential Form 8282 filing if disposed early.
• Early disposition may limit the donor’s deduction or trigger recapture of prior benefits.

This linkage prevents overvaluation or misuse of donations.

Source: Instructions for Form 8283 (Rev. December 2024).

Who Files Form 8282 and Key Requirements

• Original donee: The first charity receiving the property—completes identifying information and disposition details.
• Successor donee: A subsequent charity—provides info on previous donees.

Requirements include:

• Donor details (name, EIN/address if available).
• Property description, vehicle identification if applicable, date received, and disposition details (date, amount received).
• Certification if property was used for exempt purposes or disposition was unintended.

Penalties for non-filing or incomplete forms: Generally $50 per form, with higher penalties for fraudulent statements (up to $10,000).

How to File Form 8282

1. Download the latest Form 8282 from IRS.gov (current revision: October 2021; check for updates).
2. Complete required parts based on original or successor status.
3. File paper copies (no e-filing available).
4. Send to the IRS and donor within 125 days.

For transfers to another charity: Provide the successor with Form 8283 copy and filed Form 8282 within 15 days.

Why Compliance Matters in 2025

Proper handling of Form 8282 maintains donor trust, avoids IRS penalties, and supports valid charitable deductions. No major changes occurred for 2025—thresholds ($5,000+ claimed value) and timelines (3 years/125 days) remain unchanged.

Charities should track high-value donations and disposition dates. Donors receiving a Form 8282 copy may need to review prior returns.

For the latest details, visit IRS.gov or consult a tax professional.

Sources: Internal Revenue Service official pages, Form 8282 PDF, Instructions for Form 8283 (December 2024 revision), and Publication 526 (Charitable Contributions, updated 2024-2025).

 

IRS Form 8849 – Claim for Refund of Excise Taxes – is an essential IRS form that allows eligible taxpayers to request refunds for certain federal excise taxes paid, primarily related to fuels but also extending to other excise categories. This form helps businesses, vendors, purchasers, and other entities recover overpaid or refundable excise taxes on items like gasoline, diesel, kerosene, alternative fuels, and more, often for nontaxable uses, exemptions, or duplicate payments.

The form is particularly relevant for those in transportation, farming, aviation, government, nonprofit sectors, or fuel-related industries where excise taxes apply but specific uses qualify for relief.

 

Who Can File Form 8849?

Form 8849 is available to various parties who have paid excise taxes and meet IRS criteria for a refund. Common filers include:

• Ultimate purchasers of fuels (e.g., businesses or individuals using gasoline, diesel, kerosene, aviation fuel, or liquefied petroleum gas (LPG) for nontaxable purposes).
• Registered ultimate vendors selling undyed diesel fuel, undyed kerosene, aviation kerosene, gasoline, or aviation gasoline to exempt buyers.
• Producers, sellers, or users of biodiesel mixtures, renewable diesel mixtures, or alternative fuels claiming credits.
• Persons paying a duplicate section 4081 tax on taxable fuel (where a prior tax was also paid and reported).
• Registered credit card issuers for certain sales to state/local governments or nonprofit educational organizations.
• Other taxpayers claiming refunds for excise taxes reported on forms like Form 720 (Quarterly Federal Excise Tax Return), Form 2290 (Heavy Highway Vehicle Use Tax), Form 730 (Monthly Tax Return for Wagers), or Form 11-C.

Nonprofit organizations (e.g., schools, colleges, or government entities) may qualify for refunds on fuels used for exempt purposes. Note: Form 8849 is not for adjusting prior excise tax liabilities (use Form 720-X instead) or claiming credits already reported on other forms like Form 4136 or Form 2290.

Key Schedules on Form 8849

Form 8849 itself serves as the main claim document, but you attach one or more specific schedules depending on your claim type. Only attach schedules for which you’re claiming a refund—multiple schedules may require separate Forms 8849 in some cases (e.g., Schedules 2, 3, 5, and 8 cannot be combined with others).

• Schedule 1 (Nontaxable Use of Fuels): For ultimate purchasers claiming refunds on gasoline, gasohol, aviation gasoline, diesel fuel, kerosene, aviation fuel (non-gasoline), and LPG used in nontaxable ways (e.g., off-highway, farming, export).
• Schedule 2 (Sales by Registered Ultimate Vendors): For registered vendors claiming refunds on sales of undyed diesel/kerosene, aviation kerosene, gasoline, or aviation gasoline to exempt users.
• Schedule 3 (Certain Fuel Mixtures and the Alternative Fuel Credit): For claims related to biodiesel/renewable diesel mixtures and alternative fuel credits/sales/uses. (Use the January 2023 revision for any allowable 2024 claims through April 11, 2025; check IRS for 2025 updates.)
• Schedule 5 (Section 4081(e) Claims): For refunds of a second (duplicate) section 4081 tax paid on the same taxable fuel.
• Schedule 6 (Other Claims): Catch-all for refunds not covered by other schedules, including overpayments or refunds from Forms 720, 2290, 730, or 11-C (e.g., vehicle destroyed, stolen, sold, or low-mileage scenarios for heavy highway vehicle tax).
• Schedule 8 (Registered Credit Card Issuers): For registered credit card issuers claiming refunds on certain taxable fuel sales to governments or nonprofits.

Each schedule requires details like the claim period, gallons involved, tax rate, type of use (from a table on the form), and refund amount.

How to File Form 8849

1. Gather Information: Provide your name, EIN (or SSN if applicable), address, income tax year-end month, and daytime phone (optional). Sign under penalties of perjury, confirming no duplicate claims.
2. Complete Schedules: Attach only relevant ones with supporting details. Use separate Forms 8849 for incompatible schedules.
3. Filing Methods:
   • Paper: Mail to IRS addresses based on schedules (e.g., Cincinnati, OH for Schedules 1/6; Covington, KY for others). Use U.S. Postal Service for P.O. boxes.
   • Electronic: Optional e-filing available through IRS-approved Modernized e-File (MeF) providers for Schedules 1, 2, 3, 5, 6, and 8. Check with providers for availability and fees.
4. Deadlines: Generally, file within 3 years from the taxable year for certain claims (e.g., annual claims by governments or exempt organizations). Specific fuel claims often follow the statute of limitations under IRC section 6511. Consult Pub. 510 for details.
5. Include Refund in Income: If you deducted the excise tax earlier, report the refund as gross income (cash method: year received; accrual method: year of fuel use/sale).

Important Tips and Considerations

• Do not use Form 8849 for credits claimed elsewhere (e.g., on Form 4136 for income tax) or liability adjustments.
• Processing delays occur if information is incomplete, EIN/SSN is wrong, or procedures aren’t followed.
• For nontaxable fuel uses, reference the form’s Type of Use Table (codes 1–16, e.g., farm use, export).
• Always verify eligibility and amounts using IRS Publication 510, Excise Taxes (latest revision March 2025), which covers fuel taxes, credits, refunds, nontaxable uses, and reporting in detail.
• Check the official IRS page for updates: https://www.irs.gov/forms-pubs/about-form-8849. Download the current Form 8849 and schedules from irs.gov (note: the base form is Rev. August 2014, with schedule-specific revisions; e.g., Schedule 6 instructions Rev. October 2025).

Filing Form 8849 correctly can provide significant tax relief for qualifying excise tax overpayments or exemptions. For complex situations, consult a tax professional or the IRS Business & Specialty Tax Line at 1-800-829-4933. Always rely on official IRS sources for the most accurate, up-to-date guidance.

IRS Form 8849 Download and Prinable

Download and Print: IRS Form 8849

IRS Form 8886 – Reportable Transaction Disclosure Statement – IRS Form 8886, Reportable Transaction Disclosure Statement, is a critical compliance tool required by the Internal Revenue Service (IRS) for taxpayers participating in certain transactions that may have potential for tax avoidance. Filing this form promotes transparency and helps the IRS identify potentially abusive tax strategies. As of 2025, the requirements remain governed by Treasury Regulations section 1.6011-4, with the latest form revision from December 2019 and instructions from October 2022.

Understanding Form 8886 is essential for individuals, corporations, partnerships, and other entities to avoid significant penalties. This article covers what constitutes a reportable transaction, who must file, how to complete and submit the form, and recent updates.

 

What Is a Reportable Transaction?

A reportable transaction is any transaction that the IRS identifies as having a potential for tax avoidance or evasion. Taxpayers who participate in such transactions and file a U.S. tax return must disclose details using Form 8886.

The IRS defines five main categories of reportable transactions under Reg. § 1.6011-4:

1. Listed Transactions — Transactions identical or substantially similar to those the IRS has specifically identified as tax avoidance schemes through notices, regulations, or other guidance.
2. Transactions of Interest — Transactions that the IRS believes may have potential for abuse but lacks sufficient information to classify as listed (e.g., certain micro-captive insurance arrangements designated in 2025 final regulations).
3. Confidential Transactions — Transactions offered under conditions of confidentiality.
4. Transactions with Contractual Protection — Transactions where fees are refundable or contingent on the tax benefits being sustained.
5. Loss Transactions — Transactions resulting in significant Section 165 losses exceeding thresholds (e.g., $2 million for corporations in a single year).

Note: The former “book-tax difference” category has been largely eliminated or modified in recent years.

Recent examples include partnership related-party basis-shifting transactions designated as transactions of interest in January 2025 final regulations, and updates to micro-captive insurance rules.

Who Must File Form 8886?

Any taxpayer (including individuals, trusts, estates, partnerships, S corporations, and C corporations) who participates in a reportable transaction and is required to file a federal tax return must disclose it.

• Participation includes direct involvement or allocation through pass-through entities (e.g., partners report their share of losses).
• Material advisors may have separate disclosure obligations on Form 8918.
• Protective disclosures are allowed if uncertainty exists about whether a transaction qualifies.

Form 8886 must be filed for each tax year in which participation occurs, even if benefits span multiple years.

IRS Form 8886 Download and Printable

Download and Print: IRS Form 8886

How to File IRS Form 8886

Filing Requirements

• Attach Form 8886 to your annual tax return (e.g., Form 1040, 1120, 1065).
• For the initial year of disclosure for a specific transaction, send a separate copy to the Office of Tax Shelter Analysis (OTSA).
  • Fax option (ongoing as of 2025): 844-253-2553.
  • Mail alternative: Internal Revenue Service, OTSA Mail Stop 4915, 1973 North Rulon White Boulevard, Ogden, Utah 84404.
• Electronic filing: If e-filing your return, ensure the OTSA copy matches exactly and uses the official form.
• Use the most current version available on IRS.gov

Key Information Required on Form 8886

• Description of the transaction and expected tax benefits.
• Identities of parties involved (promoters, advisors).
• Type of reportable transaction (check applicable boxes).
• Tax result protection details, if any.
• Detailed explanation allowing the IRS to understand the tax structure.

Incomplete disclosures (e.g., “information provided upon request”) are invalid.

For the latest form and instructions, visit IRS.gov/Form8886.

Penalties for Non-Compliance

Failure to properly file Form 8886 can trigger severe penalties under IRC Section 6707A:

• The penalty is 75% of the decrease in tax resulting from the transaction.
• Minimums: $5,000 for individuals; $10,000 for others.
• Maximums: $100,000 for individuals; $200,000 for others (higher for listed transactions: up to $200,000/$400,000).
• Additional accuracy-related penalties under Section 6662A may apply.
• The IRS may rescind penalties in cases of reasonable cause, especially if a late but complete disclosure is filed promptly.

Material advisors face separate penalties for non-disclosure.

Recent Updates and Changes (as of 2025)

• In January 2025, the IRS issued final regulations on micro-captive insurance transactions, classifying some as listed and others as transactions of interest.
• Certain basis-shifting transactions in partnerships were designated as transactions of interest.
• Ongoing fax option for OTSA copies (introduced temporarily but still available).
• No major form revisions since 2019, but always check IRS.gov for updates.

The IRS continues to refine reportable transaction rules following court decisions requiring Administrative Procedure Act compliance for designations.

Conclusion

Filing IRS Form 8886 is a proactive step to ensure compliance and avoid costly penalties when engaging in complex transactions. If you’re unsure whether a transaction qualifies as reportable, consider a protective filing or consult a tax professional. For official guidance, refer directly to IRS resources, including the Instructions for Form 8886 and Reg. § 1.6011-4.

Staying informed on reportable transactions helps maintain good standing with the IRS while navigating legitimate tax planning opportunities.

 

IRS Form 926 – Return by a U.S. Transferor of Property to a Foreign Corporation – In an increasingly global economy, U.S. taxpayers frequently engage in cross-border transactions, including transferring property to foreign corporations. These transfers can trigger significant U.S. tax reporting obligations under Internal Revenue Code (IRC) Section 6038B. The primary tool for compliance is IRS Form 926, titled Return by a U.S. Transferor of Property to a Foreign Corporation.

This form helps the IRS monitor outbound property transfers to prevent tax avoidance, ensure proper gain recognition where required, and track potential shifts of assets or income outside U.S. taxing jurisdiction. Understanding Form 926 is essential for individuals, domestic corporations, partnerships, and trusts involved in international business or investments.

 

 

What Is IRS Form 926?

Form 926 is an informational return used to report specific transfers of property (tangible or intangible) by a U.S. person to a foreign corporation in transactions that qualify for nonrecognition of gain or loss under U.S. tax rules (such as IRC Sections 351, 354, 356, 361, or similar provisions). It is required under IRC Section 6038B(a)(1)(A), as well as Sections 367(d) and 367(e) in certain cases.

The form discloses details about the transferor, transferee foreign corporation, type and value of property transferred, any gain recognized, and ownership interests before and after the transfer. It must generally be attached to the U.S. transferor’s timely filed federal income tax return for the year that includes the transfer date.

Key updates in recent years include expanded reporting for cash transfers and questions about whether the foreign corporation is a “specified 10%-owned foreign corporation” (relevant post-2017 Tax Cuts and Jobs Act changes under Section 245A).

As of the latest available IRS information (with the most recent form revision from November 2018 still in use, and no major new revision noted for 2025), the requirements remain consistent.

Who Must File Form 926?

U.S. persons required to file include:

• U.S. citizens or residents
• Domestic corporations
• Domestic estates or trusts

A “U.S. person” transfers property to a foreign corporation in a reportable transaction if it qualifies under Section 6038B(a)(1)(A).

Special rules apply:

• Partnerships — If a partnership (domestic or foreign) transfers property, the domestic partners (not the partnership) must file Form 926 for their proportionate share.
• Spouses — They may file jointly if they file a joint income tax return.
• Cash transfers — Reportable if: (a) immediately after the transfer, the U.S. person holds (directly or indirectly) at least 10% of the voting power or value of the foreign corporation, or (b) cash transferred exceeds $100,000 in the 12-month period ending on the transfer date.

Exceptions exist where no filing is required, such as:

• The transfer is fully taxable and properly reported on a timely return.
• Certain low-value transfers deemed to a foreign corporation under specific regs (fair market value ≤ $100,000).
• Some stock/security transfers qualifying under special rules (e.g., with a filed Gain Recognition Agreement under Section 367(a)).

Always consult the latest IRS instructions to confirm exceptions.

When and Where to File Form 926

File Form 926 with your federal income tax return (e.g., Form 1040, 1120, etc.) for the tax year that includes the transfer date. Attach it to the return.

• Due date — Aligns with your income tax return deadline (typically April 15 for individuals, with extensions available).
• Electronic filing — Generally attached as a PDF if e-filing; paper filing may be required in some cases.
• Late filing — Can extend the statute of limitations on your entire return until Form 926 is filed.

Key Information Required on Form 926

The form is divided into parts:

• Part I: U.S. Transferor Information (name, EIN/SSN, address, etc.).
• Part II: Transferee Foreign Corporation Information (name, address, country, entity classification, ownership percentages before/after transfer).
• Part III: Information on the Transfer (type of property, date, fair market value, adjusted basis, gain/loss recognized, whether cash only, intangible property details, etc.).
• Part IV: Additional Questions (e.g., distributions under Section 367(e), liquidations, etc.).

Detailed schedules may be required for intangible property (Section 367(d)), built-in loss property, or gain recognition agreements.

IRS Form 926 Download and Printable

Download and print: IRS Form 926

Penalties for Non-Compliance

Failure to file Form 926 (or filing incompletely/inaccurately) can result in severe penalties under IRC Section 6038B(c):

• General penalty — 10% of the fair market value of the transferred property (capped at $100,000).
• Intentional disregard — Uncapped penalty.
• Reasonable cause relief — The IRS may waive penalties if you show reasonable cause and good faith (e.g., first-time oversight with prompt correction).

Non-filing also keeps the statute of limitations open on your return, allowing IRS assessments indefinitely until compliance.

Why Form 926 Matters: Tax Implications and Compliance Tips

Form 926 supports broader international tax rules under Section 367, which can trigger gain recognition on outbound transfers to prevent “trafficking” in built-in gains without U.S. tax. It also intersects with other reporting like Form 5471 (for controlling interests in foreign corporations) or FBAR/FinCEN Form 114 (for foreign accounts).

Best practices:

• Consult a tax professional specializing in international tax before any transfer.
• Maintain detailed records of basis, valuations, and ownership.
• Check for related forms (e.g., Form 8832 for entity classification).
• Stay updated via IRS.gov, as rules can evolve (e.g., post-TCJA clarifications).

Conclusion

IRS Form 926 plays a critical role in U.S. international tax compliance, ensuring transparency for property transfers to foreign corporations. Whether you’re incorporating overseas, contributing assets to a foreign entity, or transferring intellectual property, ignoring this requirement can lead to substantial penalties and extended audit exposure.

For the most accurate guidance, visit the official IRS pages:

• About Form 926
• Form 926 Filing Requirement
• Download the latest Form 926 and instructions directly from IRS.gov.

If you’re facing a potential Form 926 filing, seek advice from a qualified tax advisor to navigate the complexities and avoid costly mistakes. Proper reporting protects your interests and maintains compliance with U.S. tax laws.

 

IRS Form 4506-B – Request for a Copy of Exempt Organization IRS Application or Letter – IRS Form 4506-B is an essential tool for anyone needing official copies of a tax-exempt organization’s exemption application or determination letter from the Internal Revenue Service (IRS). This form, titled “Request for a Copy of Exempt Organization IRS Application or Letter,” allows requesters to obtain publicly disclosable documents related to an organization’s tax-exempt status under IRC Section 501(c) or similar provisions.

As of the latest revision (May 2024), Form 4506-B is used exclusively for these purposes and cannot be substituted for requests involving annual returns like Form 990 (use Form 4506-A instead). This guide covers everything you need to know about IRS Form 4506-B, including its purpose, when to use it, how to complete it, and current submission details based on official IRS sources.

 

What Is IRS Form 4506-B Used For?

Form 4506-B enables individuals, nonprofits, grantors, researchers, or businesses to request:

• The organization’s exemption application (e.g., Form 1023, 1023-EZ, 1024, 1024-A, including supporting documents like articles of incorporation or bylaws).
• The most recently issued exemption determination letter.
• An affirmation letter (a currently dated IRS letter confirming the organization’s ongoing tax-exempt status, often used for donors or grantors).
• Other publicly disclosable items (e.g., Form 8940 requests or group exemption documents).

This form is particularly useful when verifying an organization’s tax-exempt status, especially if the original determination letter is lost or outdated. Note that determination letters issued on or after January 1, 2014, are freely available for download via the IRS Tax Exempt Organization Search (TEOS) tool at irs.gov/teos—no need for Form 4506-B in those cases.

Form 4506-B is not for requesting copies of annual information returns (Form 990 series) or notices; use Form 4506-A for those.

When Should You Use IRS Form 4506-B?

Common scenarios include:

• A nonprofit needs a replacement copy of its determination letter for grant applications or banking.
• Donors or funders require proof of current exempt status (request an affirmation letter).
• Researchers or due diligence professionals need the full exemption application packet.
• Pre-2014 determination letters, which are not on TEOS.

Exempt organizations are required to make these documents available for public inspection, so you can also request them directly from the organization before contacting the IRS.

IRS Form 4506-B Download and Printable

Download and Print: IRS Form 4506-B

How to Fill Out IRS Form 4506-B: Step-by-Step Guide

Download the latest Form 4506-B (Rev. May 2024) and instructions from irs.gov. The form is fillable PDF and must be completed using Adobe Acrobat Reader for electronic submission.

1. Requester Information (Line 1): Provide your name, phone number, date, and full mailing address (including street, city, state, ZIP, and country if applicable).
2. Exempt Organization Information (Line 2): Enter the organization’s official name (as approved for exemption), address, and Employer Identification Number (EIN). Use the exact name to avoid delays. Submit a separate form for each organization.
3. Category of Requester (Line 3): Check one box (e.g., individual, commercial user, etc.).
4. Reason for Request (Line 4): Non-commercial requesters must explain how the documents will be used (e.g., “verification for grant application”). This helps qualify for reduced fees.
5. Items Requested (Line 5): Check the appropriate boxes:
   • Application for exemption (includes supporting docs).
   • Exemption determination letter only.
   • Affirmation letter.
   • Other (specify details).
6. Submission: Use the “Submit Form” button in the PDF to email it directly to the IRS. The submission is not encrypted, so avoid including sensitive personal data beyond what’s required.

Processing typically takes up to 60 days. If longer, contact IRS Customer Account Services at 877-829-5500 (do not resubmit).

Fees and Costs for IRS Form 4506-B Requests

There is no filing fee for Form 4506-B itself, but copying charges apply:

• Non-commercial requesters: First 100 pages free; $0.20 per page thereafter.
• Commercial users: $0.20 per page (no free pages).

The IRS will bill you after processing. If costs exceed $250, prepayment may be required.

Alternatives to Form 4506-B

• Recent Determination Letters: Search and download free from TEOS at irs.gov/teos (2014 and later).
• Annual Returns: View or download from TEOS (2017 and later) or request via Form 4506-A.
• Direct from Organization: Nonprofits must provide copies upon request (often for a reasonable fee).

Key Updates and Tips for 2025

The current version of Form 4506-B is from May 2024, with no major revisions announced for 2025 as of late 2025. Always check irs.gov for the latest form. Electronic submission via the PDF’s submit button remains the preferred method for efficiency.

For affirmation letters confirming current status (especially useful for older organizations), specifically check that box on the form.

Sources: Official IRS website (irs.gov/forms-pubs/about-form-4506-a, irs.gov/pub/irs-pdf/f4506b.pdf, irs.gov/pub/irs-pdf/i4506b.pdf, and irs.gov/charities-non-profits).

If you need copies of exempt organization documents, starting with TEOS and then using Form 4506-B ensures you get accurate, official IRS records efficiently. Consult a tax professional for complex situations.