Form 8847 Credit for Contributions to Selected Community Developme

2006 Form 8847, Credit for Contributions to Selected Community Development
Corporations

Purpose: This is the first circulated draft of the 2006 Form 8847 for your review and
comments. See the next page for a discussion of the major changes.
TPCC Meeting: None, but may be arranged if requested.
Prior Version: The 2005 Form 8847 is available at:
http://www.irs.gov/pub/irs-pdf/f8847.pdf
Other Products: Circulations of draft tax forms, instructions, notices, and publications
are posted at:
http://taxforms.web.irs.gov/draft_products.html
Comments: Please email, call, or fax any comments by June 5, 2006.
David Jeffrey Buchanan
Tax Forms and Publications
SE:W:CAR:MP:T:B:P
Email: David.J.Buchanan@irs.gov
Phone: 202-622-3085
Fax: 202-622-3262
Memo of Major Changes for Form 8847

Overall, the changes made to Form 8847, Credit for Contributions to Selected
Community Development Corporations, have been made to support the redesign of Form
3800, General Business Credit.
We are changing this form from an annual use form to a continuous use form. Therefore,
the revision date changes from a specific year (“2006”) to a month/date format (“Rev.
December 2006).
The form will no longer be separated into parts. Therefore, the designations “Part I” and
“Part II” have been deleted. Line 4 will now be the last line on the form. A partnership or
S corporation will report the amount from line 4 on Schedule K of their applicable return.
All other filers of Form 8847 will report the amount from line 4 on line 1x of Form 3800.
We have revised the instructions to match the changes made to the form. Part II of the
instructions has been deleted.

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I.R.S. SPECIFICATIONS
TO BE REMOVED BEFORE PRINTING
INSTRUCTIONS TO PRINTER
FORM 8847, PAGE 1 of 2
MARGINS: TOP 13 mm (1⁄ 2 "), CENTER SIDES.
PRINTS: HEAD TO HEAD
PAPER: WHITE WRITING, SUB. 20
INK:BLACK
FLAT SIZE: 203 mm (8") 3 279 mm (11")
PERFORATE: (NONE)
DO NOT PRINT — DO NOT PRINT — DO NOT PRINT — DO NOT PRINT

8847

(Rev. December 2006)

Date

Name(s) shown on return

Revised proofs
requested

OMB No. 1545-1416

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©

Attachment
Sequence No.

Attach to your tax return.

1

2

Multiply line 1 by 5% (.05)

2

3

Credit for contributions to selected community development corporations from partnerships and
S corporations

3

Add lines 2 and 3. Partnerships and S corporations, report this amount on Schedule K; all others,
report this amount on the applicable line of Form 3800 (e.g., line 1x of the 2006 Form 3800)

4

For Paperwork Reduction Act Notice, see back of form.

100

Identifying number

Total qualified community development corporation (CDC) contributions from Part I of
Schedules A (Form 8847)

4

Signature

O.K. to print

Credit for Contributions to Selected Community
Development Corporations

Department of the Treasury
Internal Revenue Service (99)

1

Action

Cat. No. 16149K

Form

8847

(Rev. 12-2006)

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I.R.S. SPECIFICATIONS
TO BE REMOVED BEFORE PRINTING
INSTRUCTIONS TO PRINTER
FORM 8847, PAGE 2 of 2
MARGINS: TOP 13 mm (1⁄ 2 "), CENTER SIDES.
PRINTS: HEAD TO HEAD
PAPER: WHITE WRITING, SUB. 20
INK:BLACK
FLAT SIZE: 203 mm (8") 3 279 mm (11")
PERFORATE: (NONE)
DO NOT PRINT — DO NOT PRINT — DO NOT PRINT — DO NOT PRINT

Form 8847 (Rev. 12-2006)

General Instructions
Section references are to the Internal
Revenue Code unless otherwise noted.

What’s New
● The tax liability limit is no longer
figured on this form; instead, it must be
figured on Form 3800, General Business
Credit.
● Taxpayers that are not partnerships or
S corporations, and whose only source
of this credit is from those pass-through
entities, are not required to complete or
file this form. Instead, they can report
this credit directly on line 1x of Form
3800.
● The IRS will revise this December
2006 version of the form only when
necessary. Continue to use this version
for tax years beginning after 2005 until a
new revision is issued.

Purpose of Form
Use Form 8847 to claim the credit for
qualified contributions made to selected
community development corporations
(CDCs).

How the Credit Is Figured
The credit is figured over a 10-year
credit period beginning with the tax year
the qualified CDC contribution was
made. The credit for each tax year in the
credit period is 5% of the qualified CDC
contribution (see below). The credit is
part of the general business credit and
is figured under section 13311 of the
Revenue Reconciliation Act of 1993.

Page

A qualified CDC contribution is any
transfer of cash to a selected CDC
before June 30, 1999, that is available
for use by the CDC for at least 10 years
and was designated by the CDC as a
qualified contribution for purposes of the
credit. Selected CDCs furnished each
contributor a Schedule A (Form 8847),
Receipt for Contribution to a Selected
Community Development Corporation
(CDC), with Part I of Schedule A
completed.
Selected CDCs were announced in
HUD News Release No. 94-94, dated
June 30, 1994.

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Specific Instructions
Line 1

You are not required to attach copies of
Schedule A (Form 8847) to your tax
return, but you may do so. You must
keep all original Schedules A (Form
8847) for 3 years after the due date
(including extensions) of your tax return
for the last tax year in the 10-year credit
period.
Paperwork Reduction Act Notice. We
ask for the information on this form to
carry out the Internal Revenue laws of
the United States. You are required to
give us the information. We need it to
ensure that you are complying with
these laws and to allow us to figure and
collect the right amount of tax.

Printed on recycled paper

2

You are not required to provide the
information requested on a form that is
subject to the Paperwork Reduction Act
unless the form displays a valid OMB
control number. Books or records
relating to a form or its instructions must
be retained as long as their contents
may become material in the
administration of any Internal Revenue
law. Generally, tax returns and return
information are confidential, as required
by section 6103.
The time needed to complete and file
this form will vary depending on
individual circumstances. The estimated
burden for individual taxpayers filing this
form is approved under OMB control
number 1545-0074 and is included in
the estimates shown in the instructions
for their individual income tax return. The
estimated burden for all other taxpayers
who file this form is shown below.
Recordkeeping
5 hr., 15 min.
Learning about
the law or
the form
24 min.
Preparing and
sending the
form to the IRS
30 min.
If you have comments concerning the
accuracy of these time estimates or
suggestions for making this form
simpler, we would be happy to hear
from you. See the instructions for the tax
return with which this form is filed.