Instructions for Form 8275-R, Regulation Disclosure Statement

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

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Instructions for

Form 8275-R

(Rev. January 2021)

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

Regulation 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-R

and its instructions, such as

legislation enacted after they were

published, go to IRS.gov/Form8275R.

General Instructions

Purpose of Form

Form 8275-R is used by taxpayers

and tax return preparers to disclose

positions taken on a tax return that are

contrary to Treasury regulations. The

form is filed to avoid the portions of

the accuracy-related penalty due to

disregard of regulations 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 positions taken contrary to

regulations.

The portion of the

accuracy-related penalty

attributable to the following

types of misconduct cannot be

avoided by disclosure on Form

8275-R.

•Negligence.

•Disregard of rules.

•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

CAUTION

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substance (within the meaning of

section 7701(o)) or failing to meet the

requirements of any similar rule of

law.

•Any otherwise undisclosed foreign

financial asset understatement.

Because of the importance to the

self-assessment system of disclosing

positions contrary to regulations, the

requirements for making such

disclosures are stringent.

•The disclosure is adequate only if it

is made separately on a Form

8275-R.

•The penalty for reckless or

intentional disregard of a regulation

can be avoided by disclosure only if

the position represents a good-faith

challenge to the validity of the

regulation and has a reasonable

basis.

Instead of Form 8275-R, use Form

8275, Disclosure Statement, for the

disclosure of items or positions which

are not contrary to regulations but

which are not otherwise adequately

disclosed.

Who Should File

Form 8275-R is filed by individuals,

corporations, pass-through entities,

and tax return preparers.

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.

How To File

When a return position is contrary to

regulations, you must file Form

8275-R. File all Forms 8275-R with

your original tax return. Keep a copy

for your records. You may also be

able to file Forms 8275-R 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-through

entity, you must complete and file a

separate Form 8275-R 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-R for each foreign entity.

Carryovers, carrybacks, and recur-

ring items. Carryover items must be

disclosed in the tax year in which they

originated. You do not have to file

another Form 8275-R 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-R for those items

for the tax years in which the

carryback is taken into account.

However, if you disclose items that

are of a recurring nature (such as

depreciation expense), you must file

Form 8275-R for each tax year in

which the item occurs.

If you are disclosing a position that

is contrary to a regulation, 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:

1. Negligence or disregard of rules

or regulations;

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