e-Filing Tip: Form 8886, Reportable Transaction Disclosure Statement
Previously, Form 8886 needed to be e-filed in XML format as part of the electronically filed return. Now, it can also be attached as a PDF.
Taxpayers required to file electronically can provide the Form 8886 in either XML as part of the electronic return file or as a PDF attachment. Taxpayers electing to include Form 8886 as a PDF attachment must use the most current version of the form as posted on IRS.gov, Forms and Pubs, and the file should be described as "Form 8886". Additionally, they are required to send copies of all of the initial year filings of Form 8886 to the Office of Tax Shelter Analysis (OTSA) at:
Internal Revenue Service
OTSA Mail Stop 4915
1973 North Rulon White Boulevard
Ogden, Utah 84404
The instructions to the Form 8886 indicate that “If you file your income tax return electronically, the copy sent to OTSA must show exactly the same information, word for word, provided with the electronically filed return and it must be provided with the official IRS Form 8886. If you use a computer-generated or substitute Form 8886, it must be an exact copy of the official IRS form.”
Additionally, the instructions tell taxpayers “Do not simply write ‘See Attached.’ If the information required exceeds the space provided, complete as much information as possible in the available space and attach the remaining information on additional sheets”
If a taxpayer required to electronically file its 1120 or 1120S income tax return follows the directions itemized below, the copy provided to OTSA will be deemed to have met the requirements in the instructions of showing exactly the same information, providing it on the official IRS Form 8886 and completing as much information as possible in the available space.
- The taxpayer will print a copy of all initial year filing Forms 8886 attached to the 2005 tax return before the return is converted to XML and send the copies to OTSA at the address above (also found in the instructions).
- Copies must print on a facsimile of the IRS Form 8886, even if the forms, once printed, do not have the same number of lines in each section as the paper form as a result of the IRS schemas.
- If the taxpayer’s approved e-file software automatically limits the amount of information on the Form 8886 to the number of lines on the printed form, and the software automatically creates an attachment with all of the required data, the Form 8886 with “See Attached” and the generated attachments will be accepted, provided the attachments are properly indexed and attached to the copy of Form 8886 being sent to OTSA.