Instructions for Form 8935 (3/2009)

Purpose of Form

Form 8935 is used to report payments of any money or other property made by a commercial passenger airline carrier to a qualified airline employee, defined later.

Who Must File

Every commercial passenger airline carrier that pays one or more airline payment amounts, as defined later.

When to File

File Form 8935 with the Internal Revenue Service within 90 days of the date of making the airline payment(s) to a qualified airline employee. For payments made before December 24, 2008, file Form 8935 by March 23, 2009.

How to File

File Form 8935 on paper using Form 8935-T, Transmittal of Airline Payments Reports, or electronically through the Filing Information Returns Electronically (FIRE) System.

To file electronically, you must have software that can produce a file in the proper format according to the specifications in Announcement 2009-7, 2009-10 I.R.B., available at www.irs.gov/irb/2009-10_IRB/ar10.html. The FIRE System does not provide a fill-in form option for information return reporting. The FIRE System operates 24 hours a day, 7 days a week. You may access the FIRE System via the Internet at http://fire.irs.gov. See Pub. 1220 for more information.

You may use the 2009 General Instructions for Forms 1099, 1098, 3921, 3922, 5498, and W-2G if you have questions about filing Form 8935, either on paper or electronically, with the Internal Revenue Service. Sections E through I, M, and T contain information that is equally applicable to Form 8935.

Substitute Statements to Recipients

If you are not using the official IRS form (Copy B of Form 8935) to furnish statements to recipients, see Pub. 1179 for specific rules about providing “substitute” statements to recipients. Generally, a substitute is any statement other than Copy B of Form 8935. You can develop a substitute yourself or buy it from a private printer. However, the substitutes must comply with the format and content requirements specified in Pub. 1179, available on the IRS website at www.irs.gov.

When to Furnish Forms or Statements

Furnish Copy B of Form 8935 (or a substitute statement) to recipients within 90 days of the date of making the airline payment(s) to a qualified airline employee. For payments made before December 24, 2008, furnish Copy B (or the substitute) by March 23, 2009.

Definitions

Airline payment amount. The term airline payment amount means any money or other property paid by a commercial passenger airline carrier to a qualified airline employee under the approval of an order of a Federal bankruptcy court in a case filed after September 11, 2001, and before January 1, 2007, for the employee's interest in a bankruptcy claim against the carrier, any note of the carrier (or amount paid in lieu of a note being issued), or any other fixed obligation of the carrier to pay a lump sum amount.

The amount of such payment is determined without regard to any requirement to deduct and withhold employment taxes from such payment.

An airline payment amount does not include any amount payable on the basis of the carrier's future earnings or profits.

Qualified airline employee. A qualified airline employee is a current or former employee of a commercial passenger airline carrier who participated in the carrier's defined benefit plan that is described in section 401(a) (including a trust exempt from tax under section 501(a)) that was terminated or became subject to the restrictions contained in paragraphs (2) and (3) of section 402(b) of the Pension Protection Act of 2006.

How to Get Help

If you have questions about reporting on Form 8935, you can call the Information Reporting Customer Service Site at 1-866-455-7438 (toll free), or 304-263-8700 (not toll free). For TTY/TDD equipment, call 304-579-4827 (not toll free).

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