Instructions for Form 8275, Disclosure Statement

• Legal Form Number: 8275
• Year: 2013
• Issuer: Treasury Department
• Section: Treasury Department

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Instructions for Form 8275

(Rev. January 2021)

(For use with Form 8275 (Rev. August 2013))

Disclosure Statement

Department of the Treasury

Internal Revenue Service

Section references are to the Internal

Revenue Code unless otherwise noted.

Future Developments

For the latest information about

developments related to Form 8275

and its instructions, such as

legislation enacted after they were

published, go to IRS.gov/Form8275.

General Instructions

Purpose of Form

Form 8275 is used by taxpayers and

tax return preparers to disclose items

or positions, except those taken

contrary to a regulation, that are not

otherwise adequately disclosed on a

tax return to avoid certain penalties.

The form is filed to avoid the portions

of the accuracy-related penalty due to

disregard of rules or to a substantial

understatement of income tax for

non-tax shelter items if the return

position has a reasonable basis. It can

also be used for disclosures relating

to the economic substance penalty

and the preparer penalties for tax

understatements due to unreasonable

positions or disregard of rules.

The portion of the

accuracy-related penalty

attributable to the following

types of misconduct cannot be

avoided by disclosure on Form 8275.

•Negligence.

•Disregard of regulations.

•Any substantial understatement of

income tax on a tax shelter item.

•Any substantial or gross valuation

misstatement (including

misstatements attributable to

non-arm's length prices) under

chapter 1.

•Any substantial overstatement of

pension liabilities.

•Any substantial estate or gift tax

valuation understatements.

•Any claim of tax benefits from a

transaction lacking economic

substance (within the meaning of

section 7701(o)) or failing to meet the

CAUTION

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requirements of any similar rule of

law.

•Any otherwise undisclosed foreign

financial asset understatement.

•Any inconsistent estate basis.

Who Should File

Form 8275 is filed by individuals,

corporations, pass-through entities,

and tax return preparers. If you are

disclosing a position taken contrary to

a regulation, use Form 8275-R,

Regulation Disclosure Statement,

instead of Form 8275.

For items attributable to a

pass-through entity, disclosure should

be made on the tax return of the

entity. If the entity does not make the

disclosure, the partner (or

shareholder, etc.) can make adequate

disclosure of these items.

Exception to filing Form 8275.

Guidance is published annually in a

revenue procedure in the Internal

Revenue Bulletin that identifies

circumstances when an item reported

on a return is considered adequate

disclosure for purposes of the

substantial understatement aspect of

the accuracy-related penalty and for

avoiding the preparer's penalty

relating to understatements due to

unreasonable positions. See the

Example below. You do not have to

file Form 8275 for items that meet the

requirements listed in this revenue

procedure. This revenue procedure

can be found on the internet at

IRS.gov.

Example. Generally, you will have

met the requirements for adequate

disclosure of a charitable contribution

deduction if you complete the

contributions section of Schedule A

(Form 1040), supply all required

information, and attach all related

forms required pursuant to statute or

regulation.

How To File

File Form 8275 with your original tax

return. Keep a copy for your records.

You may be able to file Form 8275

with an amended return. See

Regulations sections 1.6662-4(f)(1)

and 1.6664-2(c)(3) for more

information.

To make adequate disclosure for

items reported by a pass-though

entity, you must complete and file a

separate Form 8275 for items

reported by each entity.

To make adequate disclosure for a

position or positions related to more

than one foreign entity, you must

complete and file a separate Form

8275 for each foreign entity.

Carryovers, carrybacks, and recur-

ring items. Carryover items must be

disclosed for the tax year in which

they originated. You do not have to file

another Form 8275 for those items for

the tax years in which the carryover is

taken into account.

Carryback items must be disclosed

for the tax year in which they

originated. You do not have to file

another Form 8275 for those items for

the tax years in which the carryback is

taken into account.

However, if you disclose items of a

recurring nature (such as depreciation

expense), you must file Form 8275 for

each tax year in which the item

occurs.

If you are disclosing a position that

is contrary to a rule, and the position

relates to a reportable transaction as

defined in Regulations section

1.6011-4(b), you must also make the

disclosure as indicated in Regulations

section 1.6011-4(d). See Form 8886,

Reportable Transaction Disclosure

Statement, and its instructions; Notice

2006-6, 2006-5 I.R.B. 385, available

at IRS.gov/irb/2006-05_IRB/

ar10.html; and Notice 2010-62,

2010-40 I.R.B. 411, available at

IRS.gov/irb/2010-40_IRB/ar09.html.

Accuracy-Related Penalty

Generally, the accuracy-related

penalty is 20% of any portion of a tax

underpayment attributable to:

Oct 20, 2020 Cat. No. 62063F