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Department of the Treasury
Internal Revenue Service
Instructions for Form 8918

(Rev. November 2021)
Material Advisor Disclosure Statement

Section references are to the Internal Revenue Material advisors who file a Form 8918 disclose the transaction under
Code unless otherwise noted. will receive a reportable transaction Regulations section 1.6011-4 because the
number from the IRS. Material advisors transaction is or is reasonably expected to
What's New must provide the reportable transaction become a reportable transaction other
To more quickly and accurately process number to all taxpayers and material than a listed transaction or transaction of
information submitted to IRS, IRS is advisors for whom the material advisor interest;
incorporating 2D Barcode technology and acts as a material advisor. See Who Is a • A material advisor who is required to
providing faster, more convenient Material Advisor below. Every taxpayer disclose the transaction under section
submission channels like electronic fax. who has participated in a reportable 6111 because the transaction is a listed
Form 8918 has been redesigned with 2D transaction (see What Is a Reportable transaction or a transaction of interest; or
Barcodes placed on Page 4, which will be Transaction, later) must also disclose the • A material advisor who you know is or
submitted with the rest of the form. 2D transaction on Form 8886, Reportable reasonably expect to be required to
Barcodes are capable of capturing a vast Transaction Disclosure Statement. For disclose the transaction under section
amount of information, relieving material more information, see Form 8886 and the 6111 because the transaction is or is
advisors of the need to submit Instructions for Form 8886. reasonably expected to become a
attachments to ensure all required reportable transaction other than a listed
information is provided. Faster processing Who Must File? transaction or transaction of interest.
reduces the turnaround time for a material Generally, every material advisor to a
advisor to receive a reportable transaction reportable transaction is required to file Tax statement. Generally, a tax
number in response. Form 8918. A material advisor can be an statement is any statement (including
individual, trust, estate, partnership, or another person's statement), oral or
As a new practice, IRS will reject all corporation. You are not required to file written, that relates to a tax aspect of a
Forms 8918 filed incorrectly. Please Form 8918 unless a taxpayer to whom or transaction that causes the transaction to
follow the below instructions to avoid for whose benefit you provided the tax be a reportable transaction. A tax
form rejection: statement (defined below) entered into the statement includes tax result protection
• Only the specified current version of reportable transaction. If you provide a tax that insures some or all of the tax benefits
Form 8918 will be accepted: statement to another material advisor, you of a reportable transaction.
• 2007, 2011, 2017, and 2021 versions are not required to file Form 8918 unless Tax result protection Tax result
will be accepted until or on June 1, 2022. the reportable transaction is entered into protection includes insurance company
• Only 2021 version will be accepted by a taxpayer to whom or for whose and other third party products commonly
after June 1, 2022. benefit that material advisor provided the described as tax result insurance. For
• Form must not be handwritten. tax statement. more information, see Regulations
• All instances of "See Attached" MUST sections 301.6111-3(b)(2)(ii)(A) and
be preceded with as much information as Who Is a Material Advisor? 301.6111–3(c)(12).
the text box will allow. You are a material advisor to a transaction
if you: Threshold amount. The threshold
See Where To File for more information • Provide any material aid, assistance, or amount of gross income is $50,000 for a
on submitting Form 8918 through advice with respect to the organizing, reportable transaction that provides
electronic fax. managing, promoting, selling, substantially all of the tax benefits to
implementing, insuring, or carrying out any individuals (looking through any
The IRS has created a page on reportable transaction, and partnerships, S corporations, or trusts).
IRS.gov for information about Form 8918 • You directly or indirectly receive or The determination of whether substantially
and its instructions, at IRS.gov/Form8918. expect to receive gross income in excess all of the tax benefits from a reportable
Information about any future of the threshold amount (defined below) transaction are provided to individuals is
developments affecting Form 8918 (such for the material aid, assistance, or advice. based on all the facts and circumstances.
as legislation enacted after we release it) Generally, if 70% or more of the tax
will be posted on that page. You provide material aid, assistance, or benefits (defined later) from a reportable
advice with respect to the organizing, transaction are provided to individuals
Form 8918. Use the latest revision of managing, promoting, selling, (looking through any partnerships, S
Form 8918 available on IRS.gov. implementing, insuring, or carrying out any corporations, or trusts) then substantially
transaction if you make or provide a tax all of the tax benefits will be considered to
General Instructions statement to or for the benefit of: be provided to individuals.
• A taxpayer who either is required to For all other transactions, the threshold
Purpose of Form disclose the transaction under section amount is $250,000. For listed
Material advisors to any reportable 6011 because the transaction is a listed transactions, the threshold amounts are
transaction must disclose certain transaction or a transaction of interest, or reduced from $50,000 to $10,000 and
information about the reportable would have been required to disclose the from $250,000 to $25,000. For
transaction by filing a Form 8918 with the transaction under section 6011 if the transactions of interest, the threshold
IRS. transaction had become a listed amounts may be reduced as identified in
transaction or a transaction of interest the published guidance describing the
Note. Form 8918 replaces Form 8264, within the period of limitations; transaction. Determine the threshold
Application for Registration of a Tax • A taxpayer who you know is or amount separately for each reportable
Shelter. reasonably expect to be required to

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transaction. The threshold amount must whose benefit that material advisor What Is a Reportable
be met independently for each transaction provided a tax statement.
Transaction?
that is a reportable transaction and If a transaction that was not a A reportable transaction is a transaction
aggregation of fees among reportable reportable transaction is identified as a described in one or more of the following
transactions is not required. listed transaction or a transaction of categories. See Regulations section
In figuring the amount of gross income interest in published guidance after the 1.6011-4(b) for more information.
you receive directly, or indirectly, for occurrence of the 3 events described
material aid, assistance, or advice, include above, you will be treated as becoming a
all the following. material advisor on the date the Listed Transactions
• Fees for a tax strategy. transaction is identified as a listed A listed transaction is a transaction that is
• Fees for advice (whether or not tax transaction or a transaction of interest. the same as or substantially similar to one
advice). You must make reasonable and good of the types of transactions that the IRS
• Fees for implementing the reportable faith efforts to determine when the has determined to be a tax avoidance
transaction. taxpayer entered into the transaction, transaction.
Fees. Fees include consideration in even if you stop providing services before
whatever form paid, whether in cash or in the taxpayer enters into the transaction. These transactions are identified by
notice, regulation, or other form of
kind, for: Post-filing advice. You are not published guidance as a listed
• Services to analyze the transaction considered to be a material advisor transaction. See Notice 2009-59 for
(whether or not related to the tax concerning a transaction if you do not guidance.
consequences of the transaction), make or provide a tax statement about the
• Services to implement the transaction, transaction until after the first tax return Go to IRS.gov/Businesses/
• Services to document the transaction, reflecting tax benefit(s) of the transaction Corporations/Abusive-Tax-Shelters-And-
and is filed with the IRS. This exception does Transactions for the latest information and
• Services to prepare tax returns to the not apply to you if it is expected the guidance.
extent return preparation fees are taxpayer will file a supplemental or
unreasonable. amended return reflecting additional tax
A fee does not include amounts paid to benefits from the transaction. Confidential Transactions
a person, including an advisor, in that A confidential transaction is a transaction
person's capacity as a party to the Definitions
that is offered to a taxpayer or related
transaction. For example, a fee does not Transaction party (as described in section 267(b) or
include reasonable charges for the use of A transaction includes all factual elements 707(b)) under conditions of confidentiality
capital or the sale or use of property. relevant to the expected tax treatment of and for which the taxpayer (or related
The IRS will scrutinize carefully all of an investment, entity, plan, or party) paid an advisor a minimum fee
the facts and circumstances to determine arrangement and it includes any series of (defined below).
if consideration received or expected to be steps carried out as part of a plan.
received in connection with a reportable A transaction is considered to be
transaction is gross income received offered under conditions of confidentiality
directly, or indirectly, for aid, assistance, Substantially Similar if the advisor who is paid a minimum fee
or advice. A transaction is substantially similar to places a limitation on the disclosure of the
another transaction if it is expected to tax treatment or tax structure of the
Employee exception. Generally, you are obtain the same or similar types of tax transaction and the limitation on
not considered to be a material advisor if consequences and is either factually disclosure protects the confidentiality of
you make a tax statement solely in your similar or based on the same or similar tax the advisor's tax strategies. The
capacity as an employee, shareholder, strategy. transaction is treated as confidential even
partner, or agent of another person. In this if the conditions of confidentiality are not
case, any tax statement you make will be Receipt of an opinion regarding the tax legally binding on the taxpayer. See
considered to be made by your employer, consequences of the transaction is not Regulations section 1.6011-4(b)(3) for
corporation, partnership, or principal. relevant to determine if the transaction is more information.
However, you will be treated as a the same as or substantially similar to Minimum fee. For a corporation
material advisor if you form or use an another transaction. The term (excluding S corporations), or a
entity to avoid the rules of section 6111 or substantially similar must be broadly partnership or trust in which all of the
6112 or the penalties under section 6707 construed in favor of disclosure. See owners or beneficiaries are corporations
or 6708. Regulations section 1.6011-4(c)(4) for (excluding S corporations), the minimum
Date you became a material advisor. examples. fee is $250,000. For all others, the
You are a material advisor when all of the minimum fee is $50,000.
following have occurred (in no particular Tax Benefit The minimum fee includes all fees for a
order). A tax benefit includes deductions, tax strategy, for advice (whether or not tax
• You make a tax statement, exclusions from gross income, advice), or for the implementation of a
• You receive (or expect to receive) gross nonrecognition of gain, tax credits, transaction. Fees include payment in
income in excess of the threshold amount, adjustments (or the absence of whatever form paid, whether in cash or in
and adjustments) to the basis of property, kind, for services to analyze the
• The transaction is entered into by the status as an entity exempt from federal transaction (whether or not related to the
taxpayer to whom or for whose benefit you income taxation, and any other tax tax consequences of the transaction), for
provided the tax statement, or in the case consequences that may reduce a services to implement the transaction, for
of a tax statement provided to another taxpayer's federal tax liability by affecting services to document the transaction, and
material advisor, when the transaction is the amount, timing, character, or source of for services to prepare tax returns to the
entered into by a taxpayer to whom or for any item of income, gain, expense, loss, extent return preparation fees are
or credit. unreasonable. A taxpayer is treated as

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paying fees to an advisor if the taxpayer combination of tax years, whether or not Eliminated Categories
knows or should know that the amount it any losses flow through to one or more
pays will be paid indirectly to the advisor, beneficiaries. (At least $50,000 for a single
such as through a referral fee or tax year if the loss arose from a section Transactions with a brief asset holding
fee-sharing arrangement. Fees do not 988 transaction defined in section 988(c) period. The disclosure requirement for
include amounts paid to a person, (1) (relating to foreign currency this category has been eliminated for
including an advisor, in that person's transactions), whether or not the loss transactions entered into after August 2,
capacity as a party to the transaction. The flows through from an S corporation or 2007. However, this does not relieve
IRS will scrutinize all of the facts and partnership). taxpayers of any disclosure obligations for
circumstances in determining whether brief asset holding transactions that were
consideration received in connection with Section 165 loss. For this purpose, a entered into before August 3, 2007. The
a confidential transaction constitutes fees. section 165 loss is adjusted for any rules for brief asset holding period
For purposes of determining the minimum salvage value and for any other insurance reportable transactions entered into
fee, related parties (as described in compensation received. However, a before August 3, 2007, are contained in
section 267(b) or 707(b)) will be treated as section 165 loss does not include Regulations section 1.6011-4 in effect
the same individual or entity. offsetting gains, other income or prior to August 3, 2007.
limitations. The full amount of a section
165 loss is included in the year it occurred, Transactions with a significant
Transactions With Contractual regardless of whether all or part of it is book-tax difference. The disclosure
Protection included in computing a net operating loss requirement for this category has been
A transaction with contractual protection is (under section 172) or a net capital loss eliminated. Transactions with a significant
a transaction for which the taxpayer, or a (under section 1212) that is a carryback or book-tax difference that would have been
related party (as described in sections carryover to another year. A section 165 required to be disclosed with returns due
267(b) or 707(b)), has the right to a full loss does not include any portion of a loss on dates (including extensions) after
refund or partial refund of fees if all or part attributable to a capital loss carryback or January 5, 2006, are no longer reportable
of the intended tax consequences from carryover from another year that is treated transactions.
the transaction are not sustained. It also as a deemed capital loss under section However, this does not relieve
includes a transaction for which fees are 1212. taxpayers of any disclosure obligations for
contingent on the taxpayer's realization of To determine if a transaction results in significant book-tax difference
tax benefits from the transaction. See a taxpayer claiming a loss that meets the transactions that should have been
Regulations section 1.6011-4(b)(4) and threshold amounts over a combination of disclosed on a return with a due date prior
Rev. Proc. 2007-20 for the latest tax years, only losses claimed in the tax to January 6, 2006. See Notice 2006-06.
information and guidance. year the transaction is entered into and the
5 succeeding tax years are combined. Exceptions to Reportable
Loss Transactions The types of losses included in this Transaction Categories, Published
category are section 165 losses (including
A loss transaction is a transaction that amounts deductible under a provision that Guidance
results in the taxpayer claiming a loss treats a transaction as a sale or other A transaction is not considered a
under section 165 (described later) if the disposition or otherwise results in a reportable transaction if the IRS makes a
amount of the section 165 loss is as deduction under section 165). However, determination in published guidance that it
follows. this category does not include losses is not subject to the reporting
• For individuals, at least $2 million in any described in Rev. Proc. 2013-11 (or future requirements. For more information, see
single tax year or $4 million in any published guidance). the following.
combination of tax years. (At least • Rev. Proc. 2004-67;
$50,000 for a single tax year if the loss • Rev. Proc. 2004-68;
arose from a section 988 transaction Transactions of Interest
• Rev. Proc. 2007-20; and
defined in section 988(c)(1) (relating to A transaction of interest is a transaction • Rev. Proc. 2013-11.
foreign currency transactions), whether or that is the same as or substantially similar
not the loss flows through from an S to one of the types of transactions that the The IRS may also determine by
corporation or partnership). IRS has identified by notice, regulation, or individual letter ruling that an individual
• For corporations (excluding S other form of published guidance as a letter ruling request satisfies the reporting
corporations), at least $10 million in any transaction of interest. It is a transaction requirements. See Request for Ruling
single tax year or $20 million in any that the IRS and Treasury Department below for more details on submitting a
combination of tax years. believe has a potential for tax avoidance letter ruling request.
• For partnerships with only corporations or evasion, but for which there is not
(excluding S corporations) as partners enough information to determine if the Request for Ruling
(looking through any partners that are also transaction should be identified as a tax You may request a ruling from the IRS to
partnerships), at least $10 million in any avoidance transaction. The requirement to determine whether a specific transaction
single tax year or $20 million in any disclose transactions of interest applies to is a reportable transaction. The potential
combination of tax years, whether or not transactions of interest entered into after obligation of a material advisor and the
any losses flow through to one or more November 1, 2006. See Notice 2009-55, taxpayer to disclose the transaction will
partners. Notice 2016-66, and Notice 2017-08 for not be suspended during the period that
• For all other partnerships and S the latest information and guidance. The the ruling request is pending. Therefore,
corporations, at least $2 million in any IRS may issue a new or update an existing even if you have a ruling request with the
single tax year or $4 million in any notice, regulation, or other form of IRS, you must still complete and file this
combination of tax years, whether or not guidance that identifies a transaction as a form in order to avoid potential penalties.
any losses flow through to one or more transaction of interest. See Rev. Proc. 2017-1 for information on
partners or shareholders. ruling requests.
• For trusts, at least $2 million in any
single tax year or $4 million in any

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When To File transaction. A material advisor is not opinions, relating to each reportable
The material advisor's disclosure required to identify an entity or individual transaction that are material to an
statement must be filed with the Office of on the list if the entity or individual entered understanding of the intended tax
Tax Shelter Analysis (OTSA) by the last into a listed transaction or a transaction of treatment or tax structure of that
day of the month that follows the end of interest more than 6 years before the transaction that the material advisor or any
the calendar quarter in which the advisor transaction was identified in published related party or agent of the material
became a material advisor with respect to guidance as a listed transaction or a advisor has shown or provided to any
the reportable transaction or in which transaction of interest. A separate list must individual or entity (or to their
circumstances occur to require an be prepared and maintained for each representatives, tax advisors, or agents)
amended disclosure statement. See Date transaction or group of substantially who acquired or may acquire an interest in
you became a material advisor., earlier. similar transactions. the transaction. However, you are not
required to retain earlier drafts of a
Where To File The list must be maintained for 7 years document if you retain a copy of the final
following the earlier of the date on which document (or, if there is no final
For electronic fax (only to be used for the material advisor last made a tax document, the most recent draft of the
Form 8918 and related attachments; statement relating to the transaction, or document) and the final document (or
other items will not be processed): the date the transaction was last entered most recent draft) contains all the
please fax to: 1-844-253-5607 (this is into, if known. Upon IRS's written request, information in the earlier drafts of such
toll-free). The fax cover sheet should each material advisor who is responsible document that is material to an
include the following: for maintaining a list must furnish the list to understanding of the purported tax
• Subject: Form 8918 the IRS. The list must be maintained in a treatment or the tax structure of the
• Sender's name, title, phone number, form that enables the IRS to determine transaction.
street address without undue delay or difficulty the
• Material Advisor’s name information required to be maintained for Dissolution or liquidation of material
• Date each list. See Regulations section advisor. Generally, if a material advisor
• Number of pages faxed (including 301.6112-1 for more information. dissolves or liquidates before completion
cover sheet)
of the 7-year list maintenance period, the
Do not include sensitive information on Note. Go to IRS.gov/Businesses/ person responsible under state law for
the cover sheet, such as Employer Corporations/Abusive-Tax-Shelters-And- winding up the entity's affairs must
Identification Number or Social Security Transactions for the latest information and prepare, maintain, and furnish each
Number. guidance. component of the list on behalf of the
Contents of the list. Each list must entity, unless the entity submits the list to
Fax may not exceed 100 pages. OTSA within 60 days after the dissolution
contain the following.
or liquidation. See Regulations section
If you do not have access to electronic 1. An itemized statement containing: 301.6112-1(d) for more information.
fax, mail your completed Form 8918 to: a. The name of each reportable
Internal Revenue Service transaction, the citation to the notice Penalties
OTSA Mail Stop 4915 number or published guidance number Penalty for Failure To Furnish
1973 Rulon White Blvd. identifying the transaction if the
Ogden, Utah 84201 transaction is a listed transaction or Information Regarding Reportable
transaction of interest, and the reportable Transactions
transaction number obtained under A penalty may be imposed if you are
A receipt will be provided confirming section 6111; required to file Form 8918 and you fail to
form submission.
b. The name, address, and identifying file the return on or before the due date, or
Furnishing a Reportable number of each individual or entity file false or incomplete information about a
Transaction Number required to be included on the list; reportable transaction.
Receipt of a reportable transaction c. The date on which each individual
number does not indicate that the IRS has or entity entered into the reportable The penalty is $50,000 for reportable
reviewed, examined, or approved the transaction, if known; transactions other than listed transactions.
The penalty imposed for listed
transaction. d. The amount invested in the transactions is the greater of:
reportable transaction by each individual • $200,000, or
Material advisors must provide the or entity, if known; • 50 percent of the gross income from
reportable transaction number to all
taxpayers and material advisors for whom e. A summary or schedule of the tax providing aid, assistance, or advice about
the material advisor acts as a material treatment that each individual or entity is the listed transaction before the date the
advisor. The reportable transaction intended or expected to derive from return is filed. If the failure is intentional,
number must be provided when the participation in the reportable transaction; the percentage is 75%.
transaction is entered into, or, if the and
transaction is entered into before the f. The name of each other material For more information, see section
material advisor received the reportable advisor to the transaction, if known. 6707. Form 8918 must be completed in its
entirety with all required attachments to be
transaction number, within 60 calendar 2. A detailed description of the considered complete. Stating that
days from the date the reportable reportable transaction that describes both “Information will be provided upon
transaction number is mailed to the the tax structure and the purported tax request” or that “Details are available upon
material advisor. treatment. request,” or any similar statement in the
Requirement to Keep Lists 3. A copy of any designation space provided, is not considered a
Generally, a material advisor must agreement to which the material advisor is description and may cause your
maintain a list identifying each entity or a party. See Line 5 for more information. disclosure statement to be treated as
individual to whom the advisor was a 4. Copies of any additional written incomplete.
material advisor to a reportable materials, including tax analyses or

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Note. See Rev. Proc. 2007-21, line 13), rendering attachments less answer “No” and enter the reportable
superseded by T.D. 9686 and updated by necessary. If, however, the information transaction number previously provided
Announcement 2016-01. See Regulations you wish to provide exceeds the for the reportable transaction by the IRS.
section 301.6707-1 for more information. expanded space provided, complete as
Amended statement. An amended
much information as possible in the
statement must be filed if information
Penalty for Failure To Maintain available space and attach the remaining
previously provided is no longer accurate,
information on additional sheets.
if additional information that was not
Required Lists Attachments must adhere to the following
disclosed becomes available, or if there
Any person who is required to maintain a guidelines:
are material changes to the transaction.
list and fails to make the list available • Do not write “See Attached” on the
within 20 business days of an IRS written form and provide all the information Line 1
request must pay a penalty of $10,000 for on an attached statement. Enter the name, if any, by which the
each day of the failure after the 20th • The additional sheets must be in the transaction is known or commonly referred
business day. The penalty may be same order as the lines to which they to by either yourself or published
assessed for failure to maintain the list in a correspond. guidance. If no name exists, provide a
form that enables the IRS to determine • You must include your name and short identifying description of this
without undue delay or difficulty the identifying number at the top of each transaction that distinguishes it from other
information required. additional sheet. reportable transactions in which you have
Material Advisor Identifying participated (or may participate in the
Other Penalties future). Do not report more than one
Information
Section 6700 imposes penalties for transaction on this form unless the
promoting abusive tax shelters and related Individuals. If the material advisor is an transactions are the same or substantially
activities. individual, enter the first name, middle similar. See Substantially Similar, earlier.
initial (if any), and last name; the social
Section 6701 imposes penalties for security number; the phone number; and Line 2
aiding and abetting an understatement of the complete address. Check the box(es) for all categories that
apply to the transaction being reported.
tax liability. Entities. If the material advisor is an The reportable transaction categories are
entity, enter the full name of the entity as described under What Is a Reportable
Section 7203 imposes penalties for the shown on its income tax return, the Transaction, earlier.
willful failure to file a return, supply employer identification number, and the
information, or pay tax. complete address. See Item A for contact If the transaction is a listed
Section 7206 imposes penalties for information. ! transaction, you must check the
CAUTION listed transaction box in addition
tax-related fraud and false statements. Item A to any others that apply.
Section 7207 imposes penalties for Contact information. If the material
submitting fraudulent returns, statements, advisor is an entity, list the name of a Line 3
or other documents. contact person along with a contact Identify the notice, revenue ruling,
telephone number. If the material advisor regulation (for example, Notice 2003-81,
Specific Instructions is an individual, you may disregard this modified and supplemented by Notice
line. 2007-71), announcement, or other
How To Complete Form 8918 published guidance that identified the
Item B
In order to be considered complete, Form transaction as a listed transaction or
8918 must be completed and submitted in Protective disclosure. Indicate if you transaction of interest. For listed
its entirety. To be considered complete, are filing on a protective basis by checking transactions, identify the guidance as
the information provided on the form must the appropriate box. If you are uncertain if shown in Notice 2009-59 or later IRS
describe the expected tax treatment and a transaction must be disclosed, check the guidance.
all potential tax benefits expected to result “Yes” box and disclose the transaction in Line 4
from the transaction, describe any tax accordance with these instructions.
Enter the latest of the following dates.
result protection with respect to the On line 6a, you must explain why you • The date you made a tax statement with
transaction, and identify and describe the are filing the disclosure on a protective regard to the transaction.
transaction in sufficient detail for the IRS basis. Generally, the IRS will not treat • The date you received or had an
to be able to understand the tax structure disclosure statements filed on a protective expectation that you would receive gross
of the reportable transaction. A Form basis any differently than other disclosure income in excess of the threshold amount
8918 containing a statement that statements filed on Form 8918. An (defined earlier).
information will be provided upon incomplete form containing a statement • The date the transaction was entered
request is not considered a complete that information will be provided on into by the taxpayer.
disclosure statement. request is not a complete disclosure • The date the transaction became a
There are two ways to speed up the statement. For a protective disclosure to listed transaction or transaction of interest.
processing of Form 8918: be effective, you must properly complete The latest of these dates is the date you
Form 8918 and provide all required became a material advisor. See Date you
1. by thoroughly providing all required information. See How To Complete Form became a material advisor, earlier.
information upon initial submission, and 8918, earlier, for more information.
2. by providing all information within Line 5
the form itself, rather than through Item C
If more than one material advisor is
attachments. Answer “Yes” if this is the original Form required to disclose a reportable
8918 for this reportable transaction. If this transaction under this section, the material
To help with this, Form 8918 has been is an amendment to a previously filed advisors may designate by written
redesigned to accommodate more Form 8918 for the reportable transaction, agreement a single material advisor to
information within the form itself (including

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disclose the transaction. The transaction Line 9 a. Agreements.
must be disclosed by the last day of the Identify the types of financial instruments b. Property transfers and acquisitions.
month following the end of the calendar required by the transaction (loan, stocks, c. Liability assumptions.
quarter that includes the earliest date on bonds, notes, original issue discounts, d. Obligation fulfillment.
which a material advisor who is a party to domestic and foreign currency
the agreement became a material advisor agreements, swaps, futures, notional e. Sales.
to the transaction. principal contracts, options, input or risk f. Entity formation or dissolution.
The designation of one material hedges, etc.). If you need more space, g. Other relevant events. Other
! advisor to disclose the transaction follow the instructions under How To relevant events may include but are not
CAUTION does not relieve the other material Complete Form 8918, earlier. limited to tax result protection. Tax result
advisors of the obligation to disclose the protection includes insurance company
transaction to the IRS in accordance with Line 10
and other third party products commonly
these instructions, if the designated Check all the boxes that apply for the tax described as tax result insurance.
material advisor fails to disclose the benefits expected from the transaction. A
transaction to the IRS in a timely manner. tax benefit includes deductions, 4. Nature of the transaction (cash,
exclusions from gross income, loan, service, other).
Line 6a nonrecognition of gain, tax credits, 5. Purpose of each step in
Provide a concise statement indicating adjustments (or the absence of accomplishing the tax benefits and
your role as a material advisor to this adjustments) to the basis of property, consequences.
transaction. See Who Is a Material status as an entity exempt from federal 6. Where and how each party to the
Advisor, earlier. If you are filing a income taxation, and any other tax transaction (entered on lines 7a, 7b, and
protective disclosure, you must explain consequences that may reduce a 8a and 8b) is used, including their roles.
why you believe you are not a material taxpayer's federal tax liability by affecting
advisor. If you need more space, follow the amount, timing, character, or source of 7. The economic and business
the instructions under How To Complete any item of income, gain, expense, loss, reasons for the transaction and its
Form 8918, earlier. or credit. Check the “Other” box for tax structure (describe market or business
benefits not specifically described by a conditions creating the tax benefit or
Lines 7a and 7b box and identify the tax benefit(s) in the consequence and its financial reporting, if
Check the box(es) for all categories that space provided. If you need more space, known).
apply to the transaction being reported. follow the instructions under How To 8. How the financial instruments
Indicate the related parties that are Complete Form 8918, earlier. (entered on line 9) are used in the
transaction.
needed and how they are related. Indicate Line 13 9. How the Internal Revenue Code
the role of tax-exempt entities if they are
required for the transaction. In addition, if Describe all of the relevant facts about the sections (entered on line 12) enable you to
a foreign entity is required, indicate how reportable transaction including the obtain the tax treatment.
and why the foreign entity is used, along following.
with which country is used if a particular 1. Tax benefits causing the If you need more space, follow the
country is required for the transaction. If transaction to be reportable. instructions under How To Complete Form
8918, earlier.
you need more space, follow the 2. Years affected by the transaction.
instructions under How To Complete Form 3. Steps of the transaction including:
8918, earlier.

Privacy Act and 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. We may
give the information to the Department of Justice and to other federal agencies, as provided by law. We may give it to cities, states, the
District of Columbia, and U.S. commonwealths or possessions to carry out their tax laws. We may also disclose this information to
other countries under a tax treaty, to federal and state agencies to enforce federal nontax criminal laws, or to federal law enforcement
and intelligence agencies to combat terrorism. A penalty may be imposed if you are required to file this return and fail to file by the due
date or provide incomplete or false information.
Our authority to ask for information is section 6111 and its regulations, which require you to file a return or statement with us with
respect to any reportable transaction for which you are a material advisor. Your response is mandatory under these sections. Section
6109 requires that you provide your identifying number on what you file. This is so we know who you are, and can process your return
and other papers. You must fill in all parts of the tax form that apply to you.
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 average time is:
Recordkeeping . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8 hr., 7 min.
Learning about the law or the form . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 hr., 4 min.
Preparing, copying, assembling, and sending the form to the IRS . . . . . . . . . . . . . . . . . 3 hr., 20 min.

Comments. Go to IRS.gov/UAC/Comment-On-Tax-Forms-And-Publications to provide any comments. You can also send your
comments to the Internal Revenue Service, Tax Forms and Publications Division, 1111 Constitution Ave. NW, IR-6526, Washington,
DC 20224. DO NOT SEND THE FORM TO THIS ADDRESS. Instead, see Where To File, earlier.

-6- Instructions for Form 8918 Rev. 11-2021

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