8886 Reportable Transaction Disclosure Statement

2007 Form 8886, Reportable Transaction Disclosure Statement
Purpose: This is the first circulated draft of the 2007 Form 8886 for your review and
comments. See below for a discussion of the major changes.
TPCC Meeting: None, but one may be arranged if requested.
Prior Version: The 2005 Form 8886 (most recent prior version) is available at:
http://www.irs.gov/pub/irs-pdf/f8886.pdf
Instructions: The Instructions for Form 8886 will be circulated at a later date. The 2005
instructions are available at:
http://www.irs.gov/pub/irs-pdf/i8886.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, fax, call, or mail any comments by July 18, 2007 to Anthony
Ferrise at the address listed below and to the reviewer, Daniel Brooks at
Daniel.v.Brooks@irs.gov.
Anthony Ferrise
Tax Forms and Publications
SE:W:CAR:MP:T:T:V
Email: Anthony.J.Ferrise@irs.gov
Phone: 202-927-9565
Fax: 202-622-8210
Major Changes to the 2007 Form 8886
1. At the request of the Office of Tax Shelter Analysis, several changes were made
to Form 8886 to gather additional information with respect to “reportable
transactions” under IRC Section 6011 and Treas Reg. Section 1.6011-4. This has
resulted in multiple changes to the content and layout of this form. Additionally,
Notice 2006, 2006-5 IRB 385, removed the book-tax difference category of
reportable transactions effective for transactions with a significant book-tax
difference that otherwise would have to be disclosed by taxpayers under § 1.60114 on Form 8886 (or on Schedule M-3)on or after January 6, 2006. Accordingly,
the boxes under Line 2 have been revised to reflect this deletion.
2. A parenthetical clarifying that an individual taxpayer should include his or her last
name, first name and middle initial has been added following the text on the line
beginning “Name(s) shown on return”.
3. Line A has been deleted and replaced with Lines A and B.

4. Old Line B has been re-numbered Line C.
5. In Line 1c, the term “Material advisor” has been changed to “Reportable
transaction”.
6. On line 2 box e (significant book-tax difference) has been removed pursuant to
Notice 2006-6 and accordingly, box f (brief asset holding period) has been
relabeled box e.
7. Line 3 has been reworded to clarify that the published guidance number is being
requested if the transaction in question is a listed transaction.
8. Line 4 has been reworded to include the same or substantially similar
transactions.
9. All parts of Line 5 have been deleted and replaced with new Line 5. In part these
changes reflect a reconfiguration of how information was requested, the addition
of a question concerning (where applicable) the date a Schedule K-1 was
received, and utilizing language (“participated” rather than “invested”) more
consistent with Treas. Reg. Section 1.6011-4(a).
10. Line 6a and 6b have each been modified by the additional of two additional
boxes, one for identifying number and an additional box for Fees paid.
11. Lines 7a and 7b generally replace lines 7, 8 and 9 of the existing form. Among
other things line 7a specifically identifies 4 new categories of tax benefits (capital
loss, ordinary loss, deferral and other) not expressly enumerated on the existing
form.
12. Line 8 of the revised form requires the identification of all tax exempt, foreign
and related entities and individuals. This is a significant change from line 7 of the
existing form which provided only for identification of parties to a listed
transaction.

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I.R.S. SPECIFICATIONS

TO BE REMOVED BEFORE PRINTING

INSTRUCTIONS TO PRINTERS
Form 8886, PAGE 1 of 2
MARGINS: TOP 13 mm (1⁄ 2 "), CENTER SIDES. PRINTS: HEAD TO FOOT
PAPER: WHITE WRITING, SUB. 20. INK: BLACK
FLAT SIZE: 216 mm (8 1⁄ 2 ") x 559 mm (22") FOLD TO: 216 mm (8 1⁄ 2 ") x 279 mm (11")
PERFORATE: (ON FOLD)

Date

DO NOT PRINT — DO NOT PRINT — DO NOT PRINT — DO NOT PRINT

Form

8886

Action

Date

O.K. to print
Revised proofs
requested

Reportable Transaction Disclosure Statement

(Rev. December 2007)

©

Department of the Treasury
Internal Revenue Service

©

Signature

OMB No. 1545-1800

Attach to your tax return.
See separate instructions.

Attachment
Sequence No.

Name(s) shown on return (individuals enter last name, first name, middle initial)

137

Identifying number

Number, street, and room or suite no.

City or town, state, and ZIP code

If you are filing more than one Form 8886 with your tax return, sequentially number each Form 8886 and
© Statement number
enter the statement number for this Form 8886
of
©
Enter the form number of the tax return that this form is attached to or relates to

A
B

©

Enter the year of the tax return with which this form is filed or relates to
Is this Form 8886 being filed with an amended tax return (see instructions)?
C

Check the box(es) that apply (see instructions).

Initial year filer

Yes

No

Protective disclosure

1a Name of reportable transaction
1b Initial year participated in transaction

2

1c Reportable transaction or tax shelter registration number
(9 digits or 11 digits)

Identify the type of reportable transaction. Check all boxes that apply (see instructions).
a
b

Listed
Confidential

c
d

Contractual protection
Loss

e

Brief asset holding period

3

If you checked box 2a, enter the published guidance number for the listed transaction

©

4

Enter the number of same as or substantially similar transactions reported on this form

©

5

If you participated in the transaction through another entity, check all applicable boxes and provide the information below for the
entity (see instructions). (Attach additional sheets, if necessary.)
a Type of entity:

b Name
c Employer
known

Partnership
S Corporation
Trust
Foreign
©

identification

number

(EIN),

d Date Schedule K-1 received from entity
(enter “none” if Schedule K-1
received)
6

Partnership
S Corporation
Trust
Foreign

if
©
not
©

Enter below the name and address of each person to whom you paid a fee with regard to the transaction if that person promoted,
solicited, or recommended your participation in the transaction, or provided tax advice related to the transaction. (Attach additional
sheets, if necessary.)
a Name

Identifying number (if known)

Fees paid
$

Number, street, and room or suite no.
City or town, state, and ZIP code
b Name

Identifying number (if known)

Fees paid
$

Number, street, and room or suite no.
City or town, state, and ZIP code
For Paperwork Reduction Act Notice, see separate instructions.

Cat. No. 34654G

Form

8886

(Rev. 12-2007)

8
I.R.S. SPECIFICATIONS
TO BE REMOVED BEFORE PRINTING
INSTRUCTIONS TO PRINTERS
FORM 8886, 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: 216 mm (81⁄ 2 ") 3 279 mm (11")
PERFORATE: (NONE)
DO NOT PRINT — DO NOT PRINT — DO NOT PRINT — DO NOT PRINT

Form 8886 (Rev. 12-2007)

7

Page

2

Facts
a Identify the type of tax benefit generated by the transaction. Check all the boxes that apply (see instructions).
Deductions
Capital loss
Ordinary loss

Exclusions from gross income
Nonrecognition of gain
Adjustments to basis

Tax credits
Deferral
Absence of adjustments to basis

Other

b Further describe the amount and nature of the expected tax benefits generated by the transaction for all affected years. Include
facts of each step of the transaction that relate to the expected tax benefits including the amount and nature of your investment.
Include in your description your participation in the transaction and all related transactions regardless of the year in which they
were entered into.

Identify all tax exempt, foreign, and related entities and individuals involved in the transaction. Check the appropriate box(es) (see
instructions). Include their name(s), identifying number(s), address(es), and a brief description of their involvement. For each foreign
entity, identify their country of incorporation or existence. For each related entity, describe how they are related. (Attach additional
sheets, if necessary.)

8

a Type of entity:

Tax-exempt

Foreign

Related

Tax-exempt

Foreign

Related

Identifying number

Name
Address
Description

b

Type of entity:

Identifying number

Name
Address
Description

Printed on recycled paper

Form

8886

(Rev. 12-2007)