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Department of the Treasury
Instructions for Form 8918 Internal Revenue Service

(Rev. June 2017)
Material Advisor Disclosure Statement
(For use with Form 8918 (Rev. December 2011) or later revision)

Section references are to the Internal Revenue Who Is a Material Advisor? more information, see Regulations
Code unless otherwise noted. sections 301.6111-3(b)(2)(ii)(A) and
You are a material advisor to a transaction
if you: 301.6111–3(c)(12).
What's New
Provide any material aid, assistance, or Threshold amount. The threshold
The IRS has created a page on IRS.gov advice with respect to the organizing, amount of gross income is $50,000 for a
for information about Form 8918 and its managing, promoting, selling, reportable transaction that provides
instructions, at IRS.gov/Form8918. implementing, insuring, or carrying out any substantially all of the tax benefits to
Information about any future reportable transaction, and individuals (looking through any
developments affecting Form 8918 (such You directly or indirectly receive or partnerships, S corporations, or trusts).
as legislation enacted after we release it) expect to receive gross income in excess The determination of whether substantially
will be posted on that page. of the threshold amount (defined below) all of the tax benefits from a reportable
Form 8918. Use the latest revision of for the material aid, assistance, or advice. transaction are provided to individuals is
Form 8918 available on IRS.gov. based on all the facts and circumstances.
You provide material aid, assistance, or Generally, if 70% or more of the tax
General Instructions advice with respect to the organizing, benefits (defined later) from a reportable
managing, promoting, selling, transaction are provided to individuals
Purpose of Form implementing, insuring, or carrying out any (looking through any partnerships, S
Material advisors to any reportable transaction if you make or provide a tax corporations, or trusts) then substantially
transaction must disclose certain statement to or for the benefit of: all of the tax benefits will be considered to
information about the reportable A taxpayer who either is required to be provided to individuals.
transaction by filing a Form 8918 with the disclose the transaction under section For all other transactions, the threshold
IRS. 6011 because the transaction is a listed amount is $250,000. For listed
transaction or a transaction of interest, or transactions, the threshold amounts are
Note. Form 8918 replaces Form 8264, would have been required to disclose the reduced from $50,000 to $10,000 and
Application for Registration of a Tax transaction under section 6011 if the from $250,000 to $25,000. For
Shelter. transaction had become a listed transactions of interest, the threshold
transaction or a transaction of interest amounts may be reduced as identified in
Material advisors who file a Form 8918 within the period of limitations; the published guidance describing the
will receive a reportable transaction A taxpayer who you know is or transaction. Determine the threshold
number from the IRS. Material advisors reasonably expect to be required to amount separately for each reportable
must provide the reportable transaction disclose the transaction under transaction. The threshold amount must
number to all taxpayers and material Regulations section 1.6011-4 because the be met independently for each transaction
advisors for whom the material advisor transaction is or is reasonably expected to that is a reportable transaction and
acts as a material advisor. See Who Is a become a reportable transaction other aggregation of fees among reportable
Material Advisor below. Every taxpayer than a listed transaction or transaction of transactions is not required.
who has participated in a reportable interest;
transaction (see What Is a Reportable A material advisor who is required to In figuring the amount of gross income
Transaction, later) must also disclose the disclose the transaction under section you receive directly, or indirectly, for
transaction on Form 8886, Reportable 6111 because the transaction is a listed material aid, assistance, or advice, include
Transaction Disclosure Statement. For transaction or a transaction of interest; or all the following.
more information, see Form 8886 and the A material advisor who you know is or Fees for a tax strategy.
Instructions for Form 8886. reasonably expect to be required to Fees for advice (whether or not tax
disclose the transaction under section advice).
Who Must File? Fees for implementing the reportable
6111 because the transaction is or is
Generally, every material advisor to a reasonably expected to become a transaction.
reportable transaction is required to file reportable transaction other than a listed Fees. Fees include consideration in
Form 8918. A material advisor can be an transaction or transaction of interest. whatever form paid, whether in cash or in
individual, trust, estate, partnership, or
corporation. You are not required to file Tax statement. Generally, a tax kind, for:
Form 8918 unless a taxpayer to whom or statement is any statement (including Services to analyze the transaction
for whose benefit you provided the tax another person's statement), oral or (whether or not related to the tax
statement (defined below) entered into the written, that relates to a tax aspect of a consequences of the transaction),
reportable transaction. If you provide a tax transaction that causes the transaction to Services to implement the transaction,
statement to another material advisor, you be a reportable transaction. A tax Services to document the transaction,
are not required to file Form 8918 unless statement includes tax result protection and
the reportable transaction is entered into that insures some or all of the tax benefits Services to prepare tax returns to the
by a taxpayer to whom or for whose of a reportable transaction. extent return preparation fees are
unreasonable.
benefit that material advisor provided the Tax result protection Tax result
tax statement. protection includes insurance company A fee does not include amounts paid to
and other third party products commonly a person, including an advisor, in that
described as tax result insurance. For person's capacity as a party to the

Jun 09, 2017 Cat. No. 50150N

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

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the transaction are not sustained. It also as a deemed capital loss under section significant book-tax difference
includes a transaction for which fees are 1212. transactions that should have been
contingent on the taxpayer's realization of To determine if a transaction results in disclosed on a return with a due date prior
tax benefits from the transaction. See a taxpayer claiming a loss that meets the to January 6, 2006. See Notice 2006-06.
Regulations section 1.6011-4(b)(4) and threshold amounts over a combination of
Rev. Proc. 2007-20 for the latest tax years, only losses claimed in the tax Exceptions to Reportable
information and guidance. year the transaction is entered into and the Transaction Categories, Published
5 succeeding tax years are combined.
Guidance
Loss Transactions The types of losses included in this
A loss transaction is a transaction that category are section 165 losses (including A transaction is not considered a
results in the taxpayer claiming a loss amounts deductible under a provision that reportable transaction if the IRS makes a
under section 165 (described later) if the treats a transaction as a sale or other determination in published guidance that it
amount of the section 165 loss is as disposition or otherwise results in a is not subject to the reporting
follows. deduction under section 165). However, requirements. For more information, see
For individuals, at least $2 million in any this category does not include losses the following.
single tax year or $4 million in any described in Rev. Proc. 2013-11 (or future Rev. Proc. 2004-67;
combination of tax years. (At least published guidance). Rev. Proc. 2004-68;
$50,000 for a single tax year if the loss Rev. Proc. 2007-20; and
Rev. Proc. 2013-11.
arose from a section 988 transaction Transactions of Interest
defined in section 988(c)(1) (relating to The IRS may also determine by
foreign currency transactions), whether or A transaction of interest is a transaction
not the loss flows through from an S that is the same as or substantially similar individual letter ruling that an individual
corporation or partnership). to one of the types of transactions that the letter ruling request satisfies the reporting
For corporations (excluding S IRS has identified by notice, regulation, or requirements. See Request for Ruling
corporations), at least $10 million in any other form of published guidance as a below for more details on submitting a
single tax year or $20 million in any transaction of interest. It is a transaction letter ruling request.
combination of tax years. that the IRS and Treasury Department
For partnerships with only corporations believe has a potential for tax avoidance Request for Ruling
(excluding S corporations) as partners or evasion, but for which there is not You may request a ruling from the IRS to
(looking through any partners that are also enough information to determine if the determine whether a specific transaction
partnerships), at least $10 million in any transaction should be identified as a tax is a reportable transaction. The potential
single tax year or $20 million in any avoidance transaction. The requirement to obligation of a material advisor and the
combination of tax years, whether or not disclose transactions of interest applies to taxpayer to disclose the transaction will
any losses flow through to one or more transactions of interest entered into after not be suspended during the period that
partners. November 1, 2006. See Notice 2009-55, the ruling request is pending. Therefore,
For all other partnerships and S Notice 2016-66, and Notice 2017-08 for even if you have a ruling request with the
corporations, at least $2 million in any the latest information and guidance. The IRS, you must still complete and file this
single tax year or $4 million in any IRS may issue a new or update an existing form in order to avoid potential penalties.
combination of tax years, whether or not notice, regulation, or other form of See Rev. Proc. 2017-1 for information on
any losses flow through to one or more guidance that identifies a transaction as a ruling requests.
partners or shareholders. transaction of interest. When To File
For trusts, at least $2 million in any The material advisor's disclosure
single tax year or $4 million in any Eliminated Categories statement must be filed with the Office of
combination of tax years, whether or not Tax Shelter Analysis (OTSA) by the last
any losses flow through to one or more Transactions with a brief asset holding day of the month that follows the end of
beneficiaries. (At least $50,000 for a single period. The disclosure requirement for the calendar quarter in which the advisor
tax year if the loss arose from a section this category has been eliminated for became a material advisor with respect to
988 transaction defined in section 988(c) transactions entered into after August 2, the reportable transaction or in which
(1) (relating to foreign currency 2007. However, this does not relieve circumstances occur to require an
transactions), whether or not the loss taxpayers of any disclosure obligations for amended disclosure statement. See Date
flows through from an S corporation or brief asset holding transactions that were you became a material advisor., earlier.
partnership). entered into before August 3, 2007. The
rules for brief asset holding period Where To File
Section 165 loss. For this purpose, a reportable transactions entered into In order to file, mail your completed Form
section 165 loss is adjusted for any before August 3, 2007, are contained in 8918 to:
salvage value and for any other insurance Regulations section 1.6011-4 in effect
compensation received. However, a prior to August 3, 2007. Internal Revenue Service
section 165 loss does not include OTSA Mail Stop 4915
offsetting gains, other income or Transactions with a significant
limitations. The full amount of a section book-tax difference. The disclosure 1973 Rulon White Blvd.
165 loss is included in the year it occurred, requirement for this category has been Ogden, Utah 84201
regardless of whether all or part of it is eliminated. Transactions with a significant
included in computing a net operating loss book-tax difference that would have been Furnishing a Reportable
(under section 172) or a net capital loss required to be disclosed with returns due Transaction Number
(under section 1212) that is a carryback or on dates (including extensions) after
carryover to another year. A section 165 January 5, 2006, are no longer reportable Receipt of a reportable transaction
loss does not include any portion of a loss transactions. number does not indicate that the IRS has
reviewed, examined, or approved the
attributable to a capital loss carryback or However, this does not relieve transaction.
carryover from another year that is treated taxpayers of any disclosure obligations for

Instructions for Form 8918 Rev. 06-2017 -3-

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Material advisors must provide the d. The amount invested in the The penalty imposed for listed
reportable transaction number to all reportable transaction by each individual transactions is the greater of:
taxpayers and material advisors for whom or entity, if known; $200,000, or
the material advisor acts as a material e. A summary or schedule of the tax 50 percent of the gross income from
advisor. The reportable transaction treatment that each individual or entity is providing aid, assistance, or advice about
number must be provided when the intended or expected to derive from the listed transaction before the date the
transaction is entered into, or, if the participation in the reportable transaction; return is filed. If the failure is intentional,
transaction is entered into before the and the percentage is 75%.
material advisor received the reportable
transaction number, within 60 calendar f. The name of each other material For more information, see section
days from the date the reportable advisor to the transaction, if known. 6707. Form 8918 must be completed in its
transaction number is mailed to the 2. A detailed description of the entirety with all required attachments to be
material advisor. reportable transaction that describes both considered complete. Stating that
the tax structure and the purported tax “Information will be provided upon
Requirement to Keep Lists treatment. request” or that “Details are available upon
Generally, a material advisor must 3. A copy of any designation request,” or any similar statement in the
maintain a list identifying each entity or agreement to which the material advisor is space provided, is not considered a
individual to whom the advisor was a a party. See Line 5 for more information. description and may cause your
material advisor to a reportable disclosure statement to be treated as
transaction. A material advisor is not 4. Copies of any additional written
required to identify an entity or individual materials, including tax analyses or incomplete.
on the list if the entity or individual entered opinions, relating to each reportable Note. See Rev. Proc. 2007-21,
into a listed transaction or a transaction of transaction that are material to an superseded by T.D. 9686 and updated by
interest more than 6 years before the understanding of the intended tax Announcement 2016-01. See Regulations
transaction was identified in published treatment or tax structure of that section 301.6707-1 for more information.
guidance as a listed transaction or a transaction that the material advisor or any
transaction of interest. A separate list must related party or agent of the material
be prepared and maintained for each advisor has shown or provided to any Penalty for Failure To Maintain
transaction or group of substantially individual or entity (or to their Required Lists
similar transactions. representatives, tax advisors, or agents) Any person who is required to maintain a
who acquired or may acquire an interest in list and fails to make the list available
The list must be maintained for 7 years the transaction. However, you are not within 20 business days of an IRS written
following the earlier of the date on which required to retain earlier drafts of a request must pay a penalty of $10,000 for
the material advisor last made a tax document if you retain a copy of the final each day of the failure after the 20th
statement relating to the transaction, or document (or, if there is no final business day. The penalty may be
the date the transaction was last entered document, the most recent draft of the assessed for failure to maintain the list in a
into, if known. Upon IRS's written request, document) and the final document (or form that enables the IRS to determine
each material advisor who is responsible most recent draft) contains all the without undue delay or difficulty the
for maintaining a list must furnish the list to information in the earlier drafts of such information required.
the IRS. The list must be maintained in a document that is material to an
form that enables the IRS to determine understanding of the purported tax
without undue delay or difficulty the treatment or the tax structure of the Other Penalties
information required to be maintained for transaction. Section 6700 imposes penalties for
each list. See Regulations section promoting abusive tax shelters and related
301.6112-1 for more information. Dissolution or liquidation of material activities.
advisor. Generally, if a material advisor
Note. Go to IRS.gov/Businesses/ dissolves or liquidates before completion Section 6701 imposes penalties for
Corporations/Abusive-Tax-Shelters-And- of the 7-year list maintenance period, the aiding and abetting an understatement of
Transactions for the latest information and person responsible under state law for tax liability.
guidance. winding up the entity's affairs must
prepare, maintain, and furnish each Section 7203 imposes penalties for the
Contents of the list. Each list must component of the list on behalf of the willful failure to file a return, supply
contain the following. entity, unless the entity submits the list to information, or pay tax.
1. An itemized statement containing: OTSA within 60 days after the dissolution
a. The name of each reportable or liquidation. See Regulations section
transaction, the citation to the notice 301.6112-1(d) for more information. Section 7206 imposes penalties for
tax-related fraud and false statements.
number or published guidance number
identifying the transaction if the Penalties
Section 7207 imposes penalties for
transaction is a listed transaction or Penalty for Failure To Furnish submitting fraudulent returns, statements,
transaction of interest, and the reportable Information Regarding Reportable or other documents.
transaction number obtained under
section 6111; Transactions
b. The name, address, and identifying A penalty may be imposed if you are Specific Instructions
number of each individual or entity required to file Form 8918 and you fail to How To Complete Form 8918
required to be included on the list; file the return on or before the due date, or
file false or incomplete information about a In order to be considered complete, Form
c. The date on which each individual reportable transaction. 8918 must be completed in its entirety with
or entity entered into the reportable all required attachments. To be
transaction, if known; The penalty is $50,000 for reportable considered complete, the information
transactions other than listed transactions. provided on the form must describe the
expected tax treatment and all potential

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tax benefits expected to result from the Item C Line 5
transaction, describe any tax result Answer “Yes” if this is the original Form If more than one material advisor is
protection with respect to the transaction, 8918 for this reportable transaction. If this required to disclose a reportable
and identify and describe the transaction is an amendment to a previously filed transaction under this section, the material
in sufficient detail for the IRS to be able to Form 8918 for the reportable transaction, advisors may designate by written
understand the tax structure of the answer “No” and enter the reportable agreement a single material advisor to
reportable transaction. A Form 8918 transaction number previously provided disclose the transaction. The transaction
containing a statement that information will for the reportable transaction by the IRS. must be disclosed by the last day of the
be provided upon request is not month following the end of the calendar
considered a complete disclosure Amended statement. An amended
quarter that includes the earliest date on
statement. statement must be filed if information
which a material advisor who is a party to
previously provided is no longer accurate,
the agreement became a material advisor
If the information required exceeds the if additional information that was not
to the transaction.
space provided, complete as much disclosed becomes available, or if there
information as possible in the available are material changes to the transaction. The designation of one material
space and attach the remaining ! advisor to disclose the transaction
information on additional sheets. The Line 1 CAUTION does not relieve the other material
additional sheets must be in the same Enter the name, if any, by which the advisors of the obligation to disclose the
order as the lines to which they transaction is known or commonly referred transaction to the IRS in accordance with
correspond. You must also include your to by either yourself or published these instructions, if the designated
name and identifying number at the top of guidance. If no name exists, provide a material advisor fails to disclose the
each additional sheet. Do not write “See short identifying description of this transaction to the IRS in a timely manner.
Attached” on the form and provide all the transaction that distinguishes it from other
information on an attached statement. reportable transactions in which you have Line 6a
Material Advisor Identifying participated (or may participate in the Provide a concise statement indicating
future). Do not report more than one your role as a material advisor to this
Information transaction on this form unless the transaction. See Who Is a Material
Individuals. If the material advisor is an transactions are the same or substantially Advisor, earlier. If you are filing a
individual, enter the first name, middle similar. See Substantially Similar, earlier. protective disclosure, you must explain
initial (if any), and last name; the social Line 2 why you believe you are not a material
security number; the phone number; and advisor. If you need more space, follow
the complete address. Check the box(es) for all categories that
apply to the transaction being reported. the instructions under How To Complete
Entities. If the material advisor is an The reportable transaction categories are Form 8918, earlier.
entity, enter the full name of the entity as described under What Is a Reportable Lines 7a and 7b
shown on its income tax return, the Transaction, earlier. Check the box(es) for all categories that
employer identification number, and the
complete address. See Item A for contact If the transaction is a listed apply to the transaction being reported.
information. ! transaction, you must check the Indicate the related parties that are
CAUTION listed transaction box in addition needed and how they are related. Indicate
Item A to any others that apply. the role of tax-exempt entities if they are
required for the transaction. In addition, if
Contact information. If the material a foreign entity is required, indicate how
advisor is an entity, list the name of a Line 3
contact person along with a contact Identify the notice, revenue ruling, and why the foreign entity is used, along
telephone number. If the material advisor regulation (for example, Notice 2003-81, with which country is used if a particular
is an individual, you may disregard this modified and supplemented by Notice country is required for the transaction. If
line. 2007-71), announcement, or other you need more space, follow the
published guidance that identified the instructions under How To Complete Form
Item B transaction as a listed transaction or 8918, earlier.
Protective disclosure. Indicate if you transaction of interest. For listed Line 9
are filing on a protective basis by checking transactions, identify the guidance as
the appropriate box. If you are uncertain if shown in Notice 2009-59 or later IRS Identify the types of financial instruments
a transaction must be disclosed, check the guidance. required by the transaction (loan, stocks,
bonds, notes, original issue discounts,
“Yes” box and disclose the transaction in Line 4 domestic and foreign currency
accordance with these instructions. agreements, swaps, futures, notional
Enter the latest of the following dates.
On line 6a, you must explain why you The date you made a tax statement with principal contracts, options, input or risk
are filing the disclosure on a protective regard to the transaction. hedges, etc.). If you need more space,
basis. Generally, the IRS will not treat The date you received or had an follow the instructions under How To
disclosure statements filed on a protective expectation that you would receive gross Complete Form 8918, earlier.
basis any differently than other disclosure income in excess of the threshold amount Line 10
statements filed on Form 8918. An (defined earlier).
Check all the boxes that apply for the tax
incomplete form containing a statement The date the transaction was entered
that information will be provided on into by the taxpayer. benefits expected from the transaction. A
tax benefit includes deductions,
request is not a complete disclosure The date the transaction became a
statement. For a protective disclosure to listed transaction or transaction of interest. exclusions from gross income,
nonrecognition of gain, tax credits,
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 adjustments (or the absence of
adjustments) to the basis of property,
information. See How To Complete Form became a material advisor, earlier.
8918, earlier, for more information. status as an entity exempt from federal
income taxation, and any other tax

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consequences that may reduce a a. Agreements. 6. Where and how each party to the
taxpayer's federal tax liability by affecting b. Property transfers and acquisitions. transaction (entered on lines 7a, 7b, and
the amount, timing, character, or source of 8a and 8b) is used, including their roles.
any item of income, gain, expense, loss, c. Liability assumptions.
7. The economic and business
or credit. Check the “Other” box for tax d. Obligation fulfillment. reasons for the transaction and its
benefits not specifically described by a e. Sales. structure (describe market or business
box and identify the tax benefit(s) in the f. Entity formation or dissolution. conditions creating the tax benefit or
space provided. If you need more space, consequence and its financial reporting, if
follow the instructions under How To g. Other relevant events. Other
Complete Form 8918, earlier. relevant events may include but are not known).
limited to tax result protection. Tax result 8. How the financial instruments
Line 13 protection includes insurance company (entered on line 9) are used in the
Describe all of the relevant facts about the and other third party products commonly transaction.
reportable transaction including the described as tax result insurance. 9. How the Internal Revenue Code
following. 4. Nature of the transaction (cash, sections (entered on line 12) enable you to
1. Tax benefits causing the loan, service, other). obtain the tax treatment.
transaction to be reportable. 5. Purpose of each step in If you need more space, follow the
2. Years affected by the transaction. accomplishing the tax benefits and instructions under How To Complete Form
3. Steps of the transaction including: consequences. 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. 06-2017

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