Specific Instructions

Table of Contents

Be sure to supply all of the information requested in Parts I and II and, if applicable, Part III. Your disclosure will be considered adequate if you file Form 8275-R and supply the information requested in detail.

Use Part IV on page 2 if you need more space for Part I or II. Indicate the corresponding part and line number from page 1. You can use a continuation sheet(s) if you need additional space. Be sure to put your name and identifying number on each sheet.

Reference ID number.   If you are filing Form 8275-R to disclose a position related to a foreign entity for which an information return (such as Form 5471) is filed, enter on Form 8275-R the same reference ID number for the foreign entity that is entered on the information return.

  If you are filing Form 8275-R to report a position or positions related to multiple foreign entities, file a separate Form 8275-R for each foreign entity.

Part I

Column (a).   Enter a detailed citation for each regulation for which you have taken a contrary position.

Column (b).   Identify the item by name.

  If any item you disclose is from a pass-through entity, you must identify the item as such. If you disclose items from more than one pass-through entity, you must complete a separate Form 8275-R for each entity. Also, see How To File on page 1.

Column (c).   Enter a complete description of the item(s) you are disclosing.

Example.

If an entertainment expense was reported in column (b), then list in column (c) “theater tickets, catering expenses, and banquet hall rentals.

  If you claim the same tax treatment for a group of similar items in the same tax year, enter a description identifying the group of items you are disclosing rather than a separate description of each item within the group.

Columns (d) through (f).   Enter the location of the item(s) by identifying the form number or schedule and the line number in columns (d) and (e) and the amount of the item(s) in column (f).

Part II

Your disclosure must include:

  1. A description of the relevant facts affecting the tax treatment of the item. To satisfy this requirement, you must include information that reasonably can be expected to apprise the IRS of the identity of the item, its amount, and the nature of the controversy or potential controversy. Information concerning the nature of the controversy can include a description of the legal issues presented by the facts, and

  2. A statement explaining why you believe this regulation to be invalid.

Unless provided otherwise in the General Instructions above, your disclosure will not be considered adequate unless (1) and (2) above are provided using Form 8275-R. For example, your disclosure will not be considered adequate if you attach a copy of an acquisition agreement to your tax return to disclose the issues involved in determining the basis of certain acquired assets. If Form 8275-R is not completed and attached to the return, the disclosure will not be considered valid even if the information in (1) and (2) above is provided using another method, such as a different form or an attached letter.

Part III

Line 4.   Contact your pass-through entity if you do not know where its return was filed. However, for partners and S corporation shareholders, information for line 4 can be found on the Schedule K-1 that you received from the partnership or S corporation.

  If the pass-through entity filed its return electronically using e-file, enter “e-file” on line 4.


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