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The form you are looking for begins on the next page of this file. Before viewing it, please see 
the important update information below.

                                  New Mailing Addresses
Addresses for mailing certain forms have changed since the forms were last published. The new mailing 
addresses are shown below.
Mailing address for Forms 706‐ A, 706‐ GS(D), 706‐ GS(T), 706‐ NA, 706‐QDT, 8612, 8725, 8831, 8842, 8892, 
8924, 8928:

Department of the Treasury 
Internal Revenue Service Center 
Kansas City, MO 64999

Mailing address for Forms 2678, 8716, 8822-B, 8832, 8855:

Taxpayers in the States Below                             Mail the Form to This Address
Connecticut, Delaware, District of Columbia, Georgia, 
Illinois, Indiana,Kentucky, Maine, Maryland,              Department of the Treasury 
Massachusetts, Michigan, New Hampshire, New Jersey,       Internal Revenue Service Center 
New York, North Carolina, Ohio, Pennsylvania, Rhode       Kansas City, MO 64999
Island, South Carolina, Vermont, Virginia, West Virginia, 
Wisconsin
Alabama, Alaska, Arizona, Arkansas, California, 
Colorado, Florida, Hawaii, Idaho, Iowa, Kansas,           Department of the Treasury 
Louisiana, Minnesota, Mississippi, Missouri, Montana,     Internal Revenue Service Center 
Nebraska, Nevada, New Mexico, North Dakota,               Ogden, UT 84201
Oklahoma, Oregon, South Dakota, Tennessee, Texas, 
Utah, Washington, Wyoming

This update supplements these forms’ instructions. Filers should rely on this update for the changes described, 
which will be incorporated into the next revision of the forms’ instructions.

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Form   (Rev. December 2015)8725
Department of the Treasury         ▶  Information about Form 8725 and its instructions is at www.irs.gov/form8725.
Internal Revenue Service 
Date of initial receipt of greenmail  . .      . . . . . . . . .                     . .    . . . . . . . . .  ▶
            Name of person receiving greenmail                                                                           Identifying number 
Please  
Type        Number, street, and room or suite no. (If a P.O. box, see instructions.) 
or   
Print       City or town, province or state, country, and ZIP or foreign postal code 

A      Enter the date you entered into the agreement to transfer the stock  .                   . . . . . . . ▶

       Enter the name of the corporation whose stock is being acquired from you ▶
Tax Computation (see instructions) 
       Net sales price  .        . .  . .      . . . . . . . . .                     . .    . . . . . . . . . .         .

            (a) Date acquired                    (b) Number of shares                         (c) Cost or other basis        

     a 

     b 

     c 

     d 

     e 

     f Column (b) total .        . .  .                                                  

       Column (c) total .        . .  . .      . . . . . . . . .                     . .    . . . . . . . . . .         .  
       Gain. Subtract line 2g from line 1. If zero or less, enter -0- .                .    . . . . . . . . . .         .
       Other income            . . .  . .      . . . . . . . . .                     . .    . . . . . . . . . .         .
       Total gain and other income. Add lines 3 and 4. See instructions.                      . . . . . . . . .         .  
       Tax. Multiply line 5 by 50% (.50)  .        . . . . . . .                     . .    . . . . . . . . . .         .
       Less: Tax paid with Form 7004 .           . . . . . . . .                     . .    . . . . . . . . . .         .  

       Tax due. Subtract line 7 from line 6. If zero or less, enter -0-  .                  . . . . . . . . . .         .

       Overpayment. Subtract line 6 from line 7  .       . . . .                     . .    . . . . . . . . . .         .
Under penalties of perjury, I declare that I have examined this return, including accompanying schedules and statements, and to the best of my knowledge and belief, it is 
true, correct, and complete. Declaration of preparer (other than taxpayer) is based on all information of which preparer has any knowledge. 
▲                                                                                                                      ▲
                                                                                                                        Title (if any) 
            Print/Type preparer’s name                                                                                                          PTIN

            Firm’s name      ▶                                                                                         Firm's EIN  ▶
            Firm's address  ▶                                                                                          Phone no.
                                                                                                                                            Form 8725 (Rev. 12-2015)

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Form 8725 (Rev. 12-2015) Page 2
General Instructions When To File Identifying number. If you are an
Section references are to the Internal File Form 8725 by the 90th day following individual,enter your social security
Revenue Code. receipt of any portion of the greenmail. If number. If you are anonresident or
you need more time to file, use Form resident alien and you do nothave and
Future Developments 7004, Application for Automatic are not eligible for a social security
For the latest information about Extension of Time To File Certain number, enter your individual taxpayer
developments related to Form 8725 and Business Income Tax, Information, and identification number (ITIN). Other filers
its instructions, such as legislation Other Returns, by the due date of Form should enter their employer identification
enacted after they were published, go to 8725. Form 7004 does not extend the number.
www.irs.gov/form8725. time for payment of tax. Tax Computation
Purpose of Form Where To File Line 1. Enter the net proceeds received
Use Form 8725 to report and pay the File Form 8725 at the following address: from the sale of the stocksubject to the
excise tax.
50% excise tax imposed under section Internal Revenue Service Center
5881 on the gain or other income Cincinnati, OH 45999 Column 2(a). For each separate
realized on the receipt of greenmail acquisition of stock subject to theexcise
(defined below). Greenmail is considered Rounding Off to Whole tax, enter the date acquired (for
received when the gain or other income Dollars example, the trade date for stock traded
onan exchange or over the counter).
is realized under your method of You may show money items on the See section1223 for special rules on
accounting regardless of whether the return as whole dollars. To do so, drop determining theholding period of stock
gain or other income is recognized. any amount less than 50 cents and received in anexchange, for stock that
Definitions increase any amount from 50 cents has the same basisin whole or in part as
through 99 cents to the next higher it would have in thehands of another
Greenmail. The term “greenmail” means dollar. person, for stock subject to the “wash
anyamount a corporation (or any person
acting in concert with a corporation) Amended Return sale” rules of section 1091, etc.
pays to a shareholder to directly or To amend a previously filed Form 8725, Column 2(c). The costor other basis of
indirectly acquire its stock if: file a corrected Form 8725 and write stock is generally the cost ofthe stock
1. The shareholder held the stock (as “Amended” at the top of the form. plus purchase commissions. If you
determined under section 1223) for less inherited the stock, received it as a gift,
than 2 years before entering into the Attachments received it in a tax-free exchange, orre-
agreement to make the transfer, If more space is needed, attach separate acquired stock in a “wash sale”
2. At some time during the 2-year sheets to Form 8725. Be sure to put your transactionsubject to the rules of
period ending on the date of acquisition, name and identifying number on each section 1091, you maynot be able to
the shareholder, any person acting in sheet. use the actual cash cost as the basis. If
concert with the shareholder, or any you do not use cash cost, attach an
person related to either of them (see Signature explanation of your basis. Be sure to
Related person, later), made or See the instructions for the Signature adjustyour basis by subtracting all the
threatened to make a public tender offer section of your federal income tax return. nontaxabledistributions you received
before the sale.Also adjust your basis
for stock of the corporation, and Interest and Penalties for any stock splits.For more
3. The acquisition was made under an Interest. Interest is charged on taxes not information, see Pub. 551, Basis of
offer that was not made on the same paid by the due date at a rate Assets.
terms to all shareholders. determinedunder section 6621. Line 4. If you realized anyother income
Note. Payments made in connection Late filing of return. A penalty of 5% a that is subject to the excise tax,enter
with (orin transactions related to) an month or part of a month, up to a the amount of the income on line 4.
acquisition aretreated as payments maximumof 25%, is imposed on the net Line 5. Youmust include the recognized
made for the acquisitionof the stock. amount due ifForm 8725 is not filed portion of theamount on line 5 as
Indirect acquisition of stock. Stock is when due. income on your federalincome tax
deemed to have been acquired indirectly Late payment of tax. Generally, the return.
bythe issuing corporation if such stock penaltyfor not paying tax when due is ½ Line 6. You may not claim a deduction
is soldto an entity related to the issuing of 1% ofthe unpaid amount, up to a on your federal income tax return for the
corporation(for example, a controlled maximum of25%, for each month or amount shown on line 6.
subsidiary). part of a month thetax remains unpaid. If you filedForm 7004, enter the
Public tender offer. The term “public The penalty is imposedon the net Line 7.
tenderoffer” means any offer to amount due. amount of tax paid, ifany, when you filed
purchase orotherwise acquire stock or that form.
assets in acorporation if the offer was Specific Instructions Line 8. You must pay the tax due infull
when you file Form 8725. Make your
required to befiled or registered with any Name and address. Enter the name check or money order payable to the
federal or stateagency regulating shownon your most recently filed “UnitedStates Treasury.” Write your
securities. federal income tax return. Include the name, address,identifying number, and
Related person. A person is considered room, suite, apartment, or other unit “Form 8725” on thecheck or money
related to another person if the number after the street address. If the order.
relationshipbetween such persons Post Office does not deliver mail to the
would result in lossesdisallowed under street address and the taxpayer has a Line 9. The IRS will refund theamount
section 267 or 707(b). P.O. box, show the box number instead on line 9 if you owe no other taxes.
Who Must File of the street address.
You must file Form 8725 if you are liable
for the excise tax on greenmail under
section 5881. File a separate Form 8725
for each agreement made to transfer
stock.

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Form 8725 (Rev. 12-2015) Page 3
Paid Preparer Use Only Privacy Act and Paperwork Reduction be retained as long as their contents
A paid preparer must sign Form 8725 Act Notice. We ask for the information may become material in the
and provide the information in the Paid on thisform to carry out the Internal administration of any Internal Revenue
Preparer Use Only section at the end of Revenue laws ofthe United States. We law. Generally, tax returns and return
the form if the preparer was paid to need it to ensure that youare complying information are confidential, as required
prepare the form and is not an employee with these laws and to allowus to figure by section 6103.
of the filing entity. The preparer must and collect the right amount oftax. The time needed to complete and file
give you a copy of the form in addition to Section 6109 requires you to provide this form will vary depending on
the copy to be filed with the IRS. your identifying number. Routine uses of individual circumstances. The estimated
If you are a paid preparer, enter your this information include giving it to the average time is:
Preparer Tax Identification Number Department of Justice for civil and Recordkeeping . . . . 5 hr., 30 min.
(PTIN) in the space provided. Include criminal litigation, and to cities, states, Learning about the law
your complete address. If you work for a the District of Columbia, and U.S. or the form . . . . . . . . 1 hr.
firm, you also must enter the firm’s name commonwealths and possessions for Preparing, copying, assembling,
and the EIN of the firm. However, you use in administering their tax laws. We and sending the form to
cannot use the PTIN of the tax may also disclose this information to the IRS . . . . . . 1 hr., 7 min.
preparation firm in place of your PTIN. other countries under a tax treaty, to If you have comments concerning the
federal and state agencies to enforce
You can apply for a PTIN online or by federal nontax criminal laws, or to accuracy of these time estimates or
filing Form W-12, IRS Paid Preparer Tax federal law enforcement and intelligence suggestions for making this form
Identification Number (PTIN) Application agencies to combat terrorism. Failure to simpler, we would be happy to hear from
and Renewal. For more information provide this information in a timely you. You can send your comments to:
about applying for a PTIN online, visit the manner or providing false or fraudulent Internal Revenue Service
IRS website at www.irs.gov/ptin. information may subject you to penalties. Tax Forms and Publications
You are not required to provide the SE:W:CAR:MP:TFP
information requested on a form that is 1111 Constitution Ave., NW, IR-6526
subject to the Paperwork Reduction Act Washington, DC 20224
unless the form displays a valid OMB DO NOT send Form 8725 to this
control number. Books or records address. Instead, see Where To File
relating to a form or its instructions must earlier.

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