Fillable Form 8275

What is Form 8275?

Form 8275, Disclosure Statement, is a form used by taxpayers to disclose items or positions taken on a tax return that are not adequately disclosed or substantiated or may be considered contrary to IRS rules and/or treasury regulations.

This form is often used by tax return preparers to avoid the accuracy-related penalty that the IRS substantial authority might impose for understatements of income tax resulting from negligence or disregard of rules or regulations. By filing Form 8275, taxpayers provide a detailed explanation of the item or position, thereby offering transparency and a defense against certain penalties on a reasonable basis.

How do I fill out Form 8275?

A fillable copy of Form 8275 can be found here.

Names on Return

Enter the names as indicated on your tax return.

Identifying Number

Enter the ID number as shown on your tax return.

Foreign Entity

Enter the following information if you are filing this form in relation to information regarding a foreign entity:

• Name of Foreign Entity
• Employer’s ID Number, if any
• Reference ID Number

Part I - General Information

Enter the following information in the relevant columns for each item or group of items you are declaring.

• Rev., Rul., Rev., Proc., etc.
• Item or Group of Items
• Detailed Description of Items
• Form or Schedule
• Line Number
• Amount

Part II - Detailed Explanation

Enter a detailed explanation for each item in the spaces provided.

Part III - Information about Pass-Through Entity

Complete this section only if you are making adequate disclosure for a pass-through item.

Enter the following information about the pass-through entity:

• Name, Address, and ZIP Code
• Identifying Number
• Tax Year
• Internal Revenue Service Center where the pass-through entity filed its return.

Part IV - Explanations

Continue any and all relevant explanations from Parts I and/or II of this form here.

Frequently Asked Questions (FAQs)

Can Form 8275 be used for disclosing all types of tax positions?

Yes, Form 8275 can be used to disclose a wide range of tax positions, including deductions, credits, income reporting, and transaction characterizations. It is designed to address any position that might be considered questionable by the IRS.

What is the difference between Form 8275 and Form 8275-R?

Form 8275 is used for general disclosures of potentially questionable tax positions, while Form 8275-R, Regulation Disclosure Statement, is specifically for positions that are contrary to IRS regulations. Form 8275-R requires a detailed legal argument against the validity or applicability of a regulation.

Why might a taxpayer use Form 8275-R?

A taxpayer might use Form 8275-R when they believe a specific IRS regulation is invalid or should not apply to their situation. This form is used to disclose and justify positions that directly challenge existing regulations.

What are the legal requirements for filing Form 8275?

There are no specific legal requirements mandating the filing of Form 8275, but it is recommended for taxpayers who want to avoid penalties for taking potentially disputable positions. The form must be filed with the taxpayer’s return.

Can Form 8275 be filed electronically?

Yes, Form 8275 can be filed electronically along with the taxpayer’s electronic tax return. This facilitates timely and efficient submission to the IRS.

Is Form 8275 applicable to both individuals and businesses?

Yes, both individuals and businesses can use Form 8275 to disclose potentially questionable tax positions. The form is designed to apply to all types of taxpayers.

What is the penalty for not filing Form 8275 when required?

There is no specific penalty for not filing Form 8275, but failure to disclose questionable positions may result in accuracy-related penalties if the IRS later challenges those positions. Filing the form can prevent such penalties.

What type of supporting documentation is needed for Form 8275?

Supporting documentation for Form 8275 includes detailed descriptions of the relevant facts, the tax treatment being claimed, and any legal or regulatory references that support the taxpayer’s position. This helps substantiate the disclosed items.

Can Form 8275 be used to disclose positions related to foreign income?

Yes, Form 8275 can be used to disclose positions related to foreign income or other international tax issues. It applies to any tax position that might be questioned by the IRS.

How does Form 8275 affect the IRS audit process?

Form 8275 can affect the IRS audit process by preemptively addressing potentially contentious items, potentially reducing the scope and duration of an audit. It provides the IRS with necessary explanations upfront.

What is the IRS’s stance on positions disclosed via Form 8275?

The IRS reviews the disclosed positions and considers the taxpayer’s explanations when determining the validity of the position. While disclosure does not guarantee acceptance, it demonstrates the taxpayer's good faith.

Can Form 8275 be amended after filing?

Yes, Form 8275 can be amended if the taxpayer needs to provide additional information or correct previous disclosures. The amended form should be filed with an amended tax return.

Is there a specific deadline for filing Form 8275?

Form 8275 should be filed with the original or amended tax return. There is no separate deadline beyond the tax return filing deadlines.

Does filing Form 8275 guarantee that the IRS will not impose penalties?

Filing Form 8275 does not guarantee that the IRS will not impose penalties, but it significantly reduces the risk by showing that the taxpayer acted in good faith. The form provides a basis for the taxpayer's position.

What happens if the IRS disagrees with a position disclosed on Form 8275?

If the IRS disagrees with a position disclosed on Form 8275, they may still challenge the position and potentially impose penalties. However, the disclosure can provide a defense against penalties if the taxpayer shows reasonable cause.