Form 8275 - Disclosure Statement
Form 8275, known as the Disclosure Statement, is used by taxpayers and tax return preparers to disclose tax positions that are not otherwise adequately disclosed on a tax return. This form helps avoid certain penalties, including portions of the accuracy-related penalty for substantial understatement of income tax or disregard of rules, provided the position has a reasonable basis.
Purpose and Use
- Used to disclose items or positions that are not adequately disclosed on the tax return.
- Helps avoid penalties related to substantial understatement of income tax or disregard of rules.
- Required for positions taken contrary to a regulation (use Form 8275-R instead).
- Must be filed with the original tax return or a qualified amended return.
Who Should File
- Individuals
- Corporations
- Pass-through entities
- Tax return preparers
Key Instructions
- Part I: Identify the rule being contradicted (if any) and name the item. For pass-through entities, identify the entity and file a separate Form 8275 for each.
- Part II: Provide a detailed description of the facts affecting the tax treatment, including the identity of the item, its amount, and the nature of the controversy.
- Part III (if applicable): Include additional information as required.
- Part IV: Use for additional space if needed, referencing the part and line number from page 1.
Filing Requirements
- File Form 8275 with your original tax return. Keep a copy for your records.
- You may file with an amended return under certain conditions (see Regulations sections 1.6662-4(f)(1) and 1.6664-2(c)(3)).
- For disclosures related to multiple foreign entities, file a separate Form 8275 for each entity.
- If filing for a foreign entity with an information return (e.g., Form 5471), use the same reference ID number on Form 8275.
Important Notes
- Adequate disclosure must include all required information in detail. Simply attaching documents (e.g., acquisition agreements) is not sufficient.
- If you filed Schedule UTP (Form 1120), you may not need to file Form 8275 for certain disclosures.
- Disclosure does not avoid penalties for negligence or fraud.
Source:
Form 8275 - Disclosure Statement
Instructions for Form 8275 (Rev. October 2024)
Disclaimer: Always verify details with official Federal or State Department of Revenue Forms and Instructions.