Form 8886, or Reportable Transaction Disclosure Statement is used to track participation in transactions the IRS considers potentially abusive. Our editable Form 8886 lets you type every entry cleanly, check your numbers, and download a print-ready copy.
Form 8886
2019
Trusted by accountants
Official IRS form
Filed annually
How to Fill Out Form 8886
- Open the blank Form 8886 in our editor.
- Enter the statement number, tax year, and return form at the top.
- Name the transaction and check its category on Line 2.
- List the entities, advisors, and fees tied to the arrangement.
- Describe the expected tax benefits and total investment on Lines 7a–7e.
- Review every entry, then download Form 8886.
What Is Form 8886 Used For?
Form 8886 is used to disclose each reportable transaction you took part in during the tax year. The IRS sorts these into five categories:
- Listed transactions
- Confidential transactions
- Transactions with contractual protection
- Loss transactions
- Transactions of interest
A typical Form 8886 example is a partnership claiming a $2 million loss.
Who Should Use Form 8886?
IRS Form 8886 applies to any taxpayer who participated in a reportable transaction and files a federal tax or information return, including individuals, trusts, estates, partnerships, S corporations, and corporations. As for the Form 8886 filing threshold for individuals, it starts at a $2 million section 165 loss in a single year.
When Is Form 8886 Due?
The Form 8886 due date matches the return that reports the transaction, extensions included, for every year you participated. First-time filers send an identical copy to the Office of Tax Shelter Analysis. A transaction listed after you entered it triggers a separate filing within 90 days.
What Happens If Form 8886 Is Not Submitted?
If Form 8886 is not submitted, you may subject to penalties. Form 8886 penalties fall under section 6707A: i.e. 75% of the tax reduction claimed, with a $5,000 floor for individuals and $10,000 for other filers. Annual caps run to $10,000 and $50,000, rising to $100,000 and $200,000 for listed transactions. Accuracy penalties can add on top.
How and Where Do I File Form 8886?
You meet the Form 8886 filing requirements by attaching the statement to your return, filed electronically or on paper. The first year, mail an exact copy to the IRS Office of Tax Shelter Analysis, OTSA Mail Stop 4915, 1973 Rulon White Blvd., Ogden, UT 84201. The Form 8886 instructions cover the narrower deadlines.
How to Get Your Form 8886
1Open the fillable Form 8886
2Fill out your transaction and tax benefit details
3Download Form 8886 to your device
Frequently asked questions
#1. How do I get a blank Form 8886?
You get a blank Form 8886 in one of two ways. Either pull the printable Form 8886 from the IRS forms library or from pdf.net. Both give you the same official layout, and you can fill them out easily in our online PDF editor.
#2. Can I submit the Form 8886 electronically?
Yes, you can submit Form 8886 electronically as an attachment to an e-filed return, and the IRS accepts it alongside the rest of your filing. The exact copy owed to the Office of Tax Shelter Analysis in your first year of participation still needs to go by mail, and it has to match what you transmitted.
#3. What if my Form 8886 is missing information?
If your Form 8886 is missing information, the IRS can treat it as incomplete and apply the same penalty as a failure to file. Reopen the copy you saved, fill the gaps, and attach a corrected statement to an amended return rather than waiting for a notice to arrive.
#4. Can I fill out my Form 8886 online?
Yes, you can fill out Form 8886 online using pdf.net. Open it, type into every field, and revise entries as your numbers shift, which helps when a tax benefit figure changes late. There is no need for software installation, printer, and scanner.
#5. Is this form free?
The form is free to access and edit. Open it, enter your transaction details, and adjust them as many times as you need at no cost, including across separate sessions. However, saving the completed file to your device requires a subscription.
#6. Can I correct mistakes on Form 8886?
Yes, you can correct mistakes on Form 8886 by filing a revised disclosure with an amended return for the year in question. Keep the copy you saved, edit only the fields that were wrong, and resubmit promptly.
#7. How long does it take to process Form 8886?
There is no specific processing time for Form 8886. The IRS logs the disclosure with its Office of Tax Shelter Analysis rather than approving or rejecting it, so no confirmation arrives.
#8. Does Form 8886 need to be signed?
No, Form 8886 doesn’t need to be signed because it goes with a return you have already signed under penalty of perjury. However, an exception applies when certain previously undisclosed listed transactions call for a signed cover letter.