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1040ez Income Tax Form

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1040ez Income Tax Form

1040ez income tax form Internal Revenue Bulletin:  2009-36  September 8, 2009  Rev. 1040ez income tax form Proc. 1040ez income tax form 2009-37 Table of Contents SECTION 1. 1040ez income tax form PURPOSE SECTION 2. 1040ez income tax form BACKGROUND SECTION 3. 1040ez income tax form SCOPE SECTION 4. 1040ez income tax form ELECTION PROCEDURES SECTION 5. 1040ez income tax form REQUIRED INFORMATION STATEMENT SECTION 6. 1040ez income tax form EFFECTIVE DATE SECTION 7. 1040ez income tax form TRANSITION RULE SECTION 8. 1040ez income tax form PAPERWORK REDUCTION ACT DRAFTING INFORMATION SECTION 1. 1040ez income tax form PURPOSE . 1040ez income tax form 01 This revenue procedure provides the exclusive procedures for taxpayers to make an election to defer recognizing discharge of indebtedness income (“COD income”) under § 108(i) of the Internal Revenue Code. 1040ez income tax form . 1040ez income tax form 02 This revenue procedure also requires taxpayers making the § 108(i) election to provide additional information on returns beginning with the taxable year following the taxable year for which the taxpayer makes the election. 1040ez income tax form This revenue procedure describes the time and manner of providing this additional information. 1040ez income tax form . 1040ez income tax form 03 The Internal Revenue Service and Treasury Department intend to issue additional guidance under § 108(i) that may include regulations addressing matters in this revenue procedure. 1040ez income tax form Taxpayers should be aware that these regulations may be retroactive. 1040ez income tax form See § 7805(b)(2). 1040ez income tax form This revenue procedure may be modified to provide procedures consistent with additional guidance. 1040ez income tax form SECTION 2. 1040ez income tax form BACKGROUND . 1040ez income tax form 01 Section 108(i), Generally. 1040ez income tax form Section 108(i) was added to the Code by § 1231 of the American Recovery and Reinvestment Tax Act of 2009, Pub. 1040ez income tax form L. 1040ez income tax form No. 1040ez income tax form 111-5, 123 Stat. 1040ez income tax form 338. 1040ez income tax form In general, § 108(i) provides that, at the election of a taxpayer, COD income realized in connection with a reacquisition after December 31, 2008, and before January 1, 2011, of an applicable debt instrument is includible in gross income ratably over a 5-taxable-year inclusion period, beginning with the taxpayer’s fourth or fifth taxable year following the taxable year of the reacquisition. 1040ez income tax form Generally, if a taxpayer makes a § 108(i) election and reacquires (or is treated as reacquiring) the applicable debt instrument generating the COD income for a new debt instrument with original issue discount (“OID”), then interest deductions for this OID also are deferred, as provided in § 108(i)(2). 1040ez income tax form The OID deferral rule, however, does not apply if the amount of OID is less than a de minimis amount, as determined under § 1273(a)(3) and § 1. 1040ez income tax form 1273-1(d) of the Income Tax Regulations. 1040ez income tax form The OID deferral rule in § 108(i)(2) applies at the entity level for a pass-through entity. 1040ez income tax form For example, a partnership (and therefore its partners) may not deduct currently the OID described in § 108(i)(2)(A)(i). 1040ez income tax form A taxpayer must take into account any item of income or deduction deferred under § 108(i), and not previously taken into account, in the taxable year in which certain events occur (such as the liquidation of the taxpayer and upon other events specified in administrative guidance). 1040ez income tax form See § 108(i)(5)(D). 1040ez income tax form The rule regarding acceleration of deferred COD income and OID deductions also applies in the case of certain dispositions by persons holding ownership interests in pass-through entities. 1040ez income tax form Section 108(i)(5)(D)(ii). 1040ez income tax form For purposes of § 108(i), regulated investment companies (as defined in § 851(a)) and real estate investment trusts (as defined in § 856(a)) are not pass-through entities. 1040ez income tax form . 1040ez income tax form 02 Applicable Debt Instrument. 1040ez income tax form Section 108(i)(3)(A) defines the term “applicable debt instrument” to mean any debt instrument issued by a C corporation or by any other person in connection with the conduct of a trade or business by that person. 1040ez income tax form The term “debt instrument” means any bond, debenture, note, certificate, or any other instrument or contractual arrangement constituting indebtedness within the meaning of § 1275(a)(1). 1040ez income tax form Section 108(i)(3)(B). 1040ez income tax form For purposes of § 108(i), in the case of an intercompany obligation (as defined in § 1. 1040ez income tax form 1502-13(g)(2)(ii)), an applicable debt instrument includes only an instrument for which COD income is realized upon the instrument’s deemed satisfaction under § 1. 1040ez income tax form 1502-13(g)(5). 1040ez income tax form . 1040ez income tax form 03 Reacquisition. 1040ez income tax form Section 108(i)(4)(A) defines the term “reacquisition” to mean, with respect to any applicable debt instrument, any acquisition of the debt instrument by the debtor that issued (or is otherwise the obligor under) the debt instrument, or a person related to the debtor under § 108(e)(4). 1040ez income tax form The term “acquisition” includes an acquisition of the debt instrument for cash or other property, the exchange of the debt instrument for another debt instrument (including an exchange resulting from a modification of the debt instrument), the exchange of the debt instrument for corporate stock or a partnership interest, the contribution of the debt instrument to capital, and the complete forgiveness of the indebtedness by the holder of the debt instrument. 1040ez income tax form See § 108(i)(4)(B). 1040ez income tax form The term “acquisition” also includes an indirect acquisition within the meaning of § 1. 1040ez income tax form 108-2(c) if a direct acquisition of the debt instrument would qualify for an election under § 108(i). 1040ez income tax form For example, if a corporation acquires debt of a partnership that the partnership issued in connection with its trade or business, and the partnership and corporation become related within six months of the corporation’s acquisition of the debt, the indirect acquisition is an acquisition for which an election under § 108(i) may be made. 1040ez income tax form . 1040ez income tax form 04 General Requirements for the Section 108(i) Election. 1040ez income tax form Section 108(i)(5)(B) provides, in general, that a taxpayer makes the § 108(i) election by including a statement that clearly identifies the applicable debt instrument with the return of tax imposed for the taxable year in which the reacquisition of the instrument occurs. 1040ez income tax form (For purposes of this revenue procedure, a return of tax or income tax return includes an information return, and a taxpayer includes a person that files an information return. 1040ez income tax form ) The statement must include the amount of income to which § 108(i)(1) applies and other information the Service may prescribe. 1040ez income tax form Once made, a § 108(i) election is irrevocable and, except as provided in section 7 of this revenue procedure, may not be modified. 1040ez income tax form . 1040ez income tax form 05 Section 108(i) Elections Made by Pass-through Entities. 1040ez income tax form In the case of COD income realized by a pass-through entity from the reacquisition of an applicable debt instrument, the pass-through entity makes the § 108(i) election. 1040ez income tax form Section 108(i)(5)(B)(iii). 1040ez income tax form . 1040ez income tax form 06 Additional Information on Subsequent Years’ Returns. 1040ez income tax form Section 108(i)(7) authorizes the Service to issue guidance necessary or appropriate for applying § 108(i), including requiring reporting the election and other information on returns of tax for subsequent taxable years. 1040ez income tax form . 1040ez income tax form 07 Exclusivity. 1040ez income tax form Section 108(i)(5)(C) provides that if a taxpayer elects to apply § 108(i) to an applicable debt instrument, § 108(a)(1)(A), (B), (C), and (D) do not apply to COD income deferred under § 108(i). 1040ez income tax form . 1040ez income tax form 08 Allocation of Deferred COD Income on Partnership Indebtedness. 1040ez income tax form Section 4. 1040ez income tax form 04(3) of this revenue procedure describes how a partnership may elect under § 108(i) to defer a portion of the COD income realized from the reacquisition of an applicable debt instrument. 1040ez income tax form If a partnership elects to defer all or any portion of COD income realized from the reacquisition of an applicable debt instrument, all of the COD income with respect to that debt instrument, without regard to § 108(i), is allocated to the partners in the partnership immediately before the reacquisition in the manner in which the income would be included in the distributive shares of these partners under § 704 and the regulations thereunder, including § 1. 1040ez income tax form 704-1(b)(2)(iii). 1040ez income tax form Each partner’s share of this COD income is the partner’s COD income amount (“COD income amount”). 1040ez income tax form The partner’s COD income amount that is deferred under § 108(i) is the partner’s deferred amount (“deferred amount”). 1040ez income tax form The partner’s COD income amount that is not deferred and is included in the partner’s distributive share of partnership income for the taxable year of the partnership in which the reacquisition occurs is the partner’s included amount (“included amount”). 1040ez income tax form . 1040ez income tax form 09 Partner’s Deferred § 752 Amount. 1040ez income tax form A decrease in a partner’s share of a partnership liability resulting from the reacquisition of an applicable debt instrument that is not treated as a current distribution of money to the partner under § 752 by reason of § 108(i)(6) is the partner’s deferred § 752 amount (“deferred § 752 amount”). 1040ez income tax form A partner’s deferred § 752 amount may not exceed the lesser of (i) the partner’s deferred amount or (ii) gain that the partner would recognize in the year of reacquisition under § 731 as a result of the reacquisition absent § 108(i)(6). 1040ez income tax form To determine the amount of gain the partner would recognize under clause (ii) of the preceding sentence, the amount of any deemed distribution of money under § 752(b) resulting from the decrease in the partner’s share of a reacquired applicable debt instrument that is treated as an advance or draw of money under § 1. 1040ez income tax form 731-1(a)(1)(ii) is determined as if no COD income resulting from the reacquisition of the applicable debt instrument is deferred under § 108(i). 1040ez income tax form See Rev. 1040ez income tax form Rul. 1040ez income tax form 92-97, 1992-2 C. 1040ez income tax form B. 1040ez income tax form 124, and Rev. 1040ez income tax form Rul. 1040ez income tax form 94-4, 1994-1 C. 1040ez income tax form B. 1040ez income tax form 195. 1040ez income tax form A partner’s deferred § 752 amount is treated as a distribution of money to the partner under § 752 at the same time, and to the extent remaining in the same amount, as the partner recognizes the COD income deferred under § 108(i). 1040ez income tax form . 1040ez income tax form 10 Allocation of Deferred COD Income on S Corporation Indebtedness. 1040ez income tax form For purposes of § 108(i), an S corporation’s COD income deferred under § 108(i) is shared pro rata only among those shareholders that are shareholders of the S corporation immediately before the reacquisition transaction. 1040ez income tax form . 1040ez income tax form 11 Deferred COD Income, Earnings and Profits, and Alternative Minimum Taxable Income. 1040ez income tax form (1) In general. 1040ez income tax form The Service and Treasury Department intend to issue regulations regarding the computation of a corporation’s earnings and profits with respect to COD income and OID deductions that are deferred under § 108(i). 1040ez income tax form These regulations generally will provide that deferred COD income increases earnings and profits in the taxable year that it is realized and not in the taxable year or years that the deferred COD income is includible in gross income. 1040ez income tax form OID deductions deferred under § 108(i) generally will decrease earnings and profits in the taxable year or years in which the deduction would be allowed without regard to § 108(i). 1040ez income tax form COD income and OID deductions that are deferred increase or decrease adjusted current earnings under § 56(g)(4) in the taxable year or years that the income or deduction is includible or deductible in determining taxable income. 1040ez income tax form See § 1. 1040ez income tax form 56(g)-1(c)(1). 1040ez income tax form (2) Exceptions for certain special status corporations. 1040ez income tax form The Service and Treasury Department intend to issue regulations providing that in the case of regulated investment companies and real estate investment trusts, COD income deferred under § 108(i) generally increases earnings and profits in the taxable year or years in which the deferred COD income is includible in gross income and not in the year that the deferred COD income is realized. 1040ez income tax form OID deductions deferred under § 108(i) generally decrease earnings and profits in the taxable year or years that the deferred OID deductions are deductible. 1040ez income tax form . 1040ez income tax form 12 Extension of Time to Make Election. 1040ez income tax form Under § 301. 1040ez income tax form 9100-1 of the Procedure and Administration Regulations, the Service may grant an extension of time to make a regulatory election. 1040ez income tax form An election is a regulatory election if the due date is prescribed by regulation or other published guidance of general applicability. 1040ez income tax form Section 301. 1040ez income tax form 9100-2(a) provides an automatic 12-month extension from the due date for making certain regulatory elections. 1040ez income tax form SECTION 3. 1040ez income tax form SCOPE This revenue procedure applies to taxpayers that realize COD income from a reacquisition after December 31, 2008, and before January 1, 2011, of an applicable debt instrument, as provided in § 108(i). 1040ez income tax form SECTION 4. 1040ez income tax form ELECTION PROCEDURES . 1040ez income tax form 01 In General. 1040ez income tax form (1) A taxpayer within the scope of this revenue procedure makes the § 108(i) election by— (a) Attaching a statement meeting the requirements of section 4. 1040ez income tax form 05 of this revenue procedure to the taxpayer’s timely filed (including extensions) original federal income tax return for the taxable year in which the reacquisition of the applicable debt instrument occurs, and (b) If applicable, satisfying the additional requirements of section 4. 1040ez income tax form 07, 4. 1040ez income tax form 08, 4. 1040ez income tax form 09, or 4. 1040ez income tax form 10 of this revenue procedure. 1040ez income tax form (2) The Service grants an automatic extension of 12 months from the due date prescribed in section 4. 1040ez income tax form 01(1)(a) of this revenue procedure for making the § 108(i) election. 1040ez income tax form The rules that apply to an automatic extension under § 301. 1040ez income tax form 9100-2(a) apply to this automatic extension. 1040ez income tax form . 1040ez income tax form 02 Section 108(i) Elections Made by Members of Consolidated Groups. 1040ez income tax form The common parent of a consolidated group makes the § 108(i) election on behalf of all members of the group. 1040ez income tax form See § 1. 1040ez income tax form 1502-77(a). 1040ez income tax form . 1040ez income tax form 03 Aggregation Rule. 1040ez income tax form A taxpayer within the scope of this revenue procedure may treat two or more applicable debt instruments that are part of the same issue and that are reacquired during the same taxable year as one applicable debt instrument for purposes of this revenue procedure. 1040ez income tax form A pass-through entity may not treat two or more applicable debt instruments as one applicable debt instrument under this section 4. 1040ez income tax form 03 if the owners and their ownership interests in the pass-through entity immediately prior to the reacquisition of each applicable debt instrument are not identical. 1040ez income tax form . 1040ez income tax form 04 Partial Elections. 1040ez income tax form (1) A taxpayer within the scope of this revenue procedure may make an election for any portion of COD income realized from the reacquisition of any applicable debt instrument. 1040ez income tax form Thus, for example, if a taxpayer realizes $100 of COD income from the reacquisition of an applicable debt instrument, the taxpayer may elect under § 108(i)(1) to defer only $40 of the $100 of COD income. 1040ez income tax form The taxpayer may exclude from income the portion of COD income that the taxpayer does not elect to defer under § 108(i) ($60 in this example) under § 108(a)(1)(A), (B), (C), or (D), if applicable. 1040ez income tax form (2) A taxpayer is not required to make an election for the same portion of COD income arising from each applicable debt instrument that it reacquires, but may make an election for different portions of COD income arising from different applicable debt instruments (whether or not part of the same issue). 1040ez income tax form Thus, for example, if a taxpayer realizes $100 of COD income from the reacquisition of an applicable debt instrument (Instrument A) and $100 of COD income from the reacquisition of a different applicable debt instrument (Instrument B), the taxpayer may elect to defer all or a portion of the COD income associated with Instrument A and none or a different portion of the COD income associated with Instrument B. 1040ez income tax form (3) A partnership that elects to defer less than all of the COD income realized from the reacquisition of an applicable debt instrument may determine, in any manner, the portion, if any, of a partner’s COD income amount that is the partner’s deferred amount and the portion, if any, of a partner’s COD income amount that is the partner’s included amount. 1040ez income tax form Thus, for example, one partner’s deferred amount may be zero while another partner’s deferred amount may equal that partner’s COD income amount (or any portion thereof). 1040ez income tax form A partner may exclude from income the partner’s included amount under § 108(a)(1)(A), (B), (C), or (D), if applicable. 1040ez income tax form The provisions of this section 4. 1040ez income tax form 04(3) apply for purposes of § 108(i) only and are not intended as an interpretation of or a change to existing law under § 704. 1040ez income tax form . 1040ez income tax form 05 Contents of Election Statement. 1040ez income tax form A statement meets the requirements of this section 4. 1040ez income tax form 05 if the statement— (1) Label. 1040ez income tax form States “Section 108(i) Election” across the top. 1040ez income tax form (2) Required information. 1040ez income tax form Provides, for each applicable debt instrument the reacquisition of which generates COD income that the taxpayer is electing to defer under § 108(i)— (a) The name and taxpayer identification numbers, if any, of the issuer or issuers of the applicable debt instrument; (b) A general description of the applicable debt instrument (including the issue and maturity dates) and, in the case of any person other than a C corporation, a general description of the person’s trade or business to which the applicable debt instrument is connected; (c) A general description of the reacquisition transaction or transactions generating the COD income (including the date(s) of the transaction(s)); (d) The total amount of COD income for the applicable debt instrument that results from the reacquisition (in the case of a partnership, the aggregate of the partners’ COD income amounts) and a general description of the manner in which this amount is calculated; (e) The amount of COD income for the applicable debt instrument that the taxpayer is electing to defer under § 108(i); (f) In the case of a partnership, a list of partners that have a deferred amount, their identifying information and each partner’s deferred amount; and in the case of an S corporation, a list of shareholders with COD income deferred under § 108(i), their identifying information and each shareholder’s share of the S corporation’s deferred COD income; and (g) In cases in which a new debt instrument is issued or deemed issued in exchange for the applicable debt instrument (including exchanges under § 108(e)(4), § 108(i)(2)(B), and § 1. 1040ez income tax form 1001-3), the issuer’s name, the issuer’s taxpayer identification number, if any, a general description of the new debt instrument and whether the new debt instrument has OID, and if the new debt instrument has OID, a schedule of the OID that the issuer expects to accrue each taxable year on the instrument and the amount of OID that the issuer expects to defer under § 108(i)(2) each taxable year. 1040ez income tax form . 1040ez income tax form 06 Supplemental information. 1040ez income tax form The statement described in section 4. 1040ez income tax form 05 of this revenue procedure may specify for each applicable debt instrument an amount greater than the amount identified in section 4. 1040ez income tax form 05(2)(e) of this revenue procedure that the taxpayer elects to defer under § 108(i) in the event the Service subsequently concludes that the taxpayer understated the amount of COD income described in section 4. 1040ez income tax form 05(2)(d) of this revenue procedure. 1040ez income tax form This additional amount of COD income the taxpayer elects to defer may be described as the entire additional COD income, or as a percentage of any additional COD income. 1040ez income tax form If the taxpayer is a partnership, the partnership must specify each partner’s share of the partnership’s additional COD income that would be deferred (the partner’s additional deferred amount), which the partnership may describe for each partner as the partner’s entire share of the partnership’s additional COD income or as a percentage of the partner’s share of the partnership’s additional COD income. 1040ez income tax form If the taxpayer is an S corporation, the S corporation must specify each shareholder’s share of the S corporation’s additional COD income that would be deferred, which the S corporation may describe for each shareholder as the shareholder’s entire share of the S corporation’s additional COD income or as a percentage of the shareholder’s share of the S corporation’s additional COD income. 1040ez income tax form In the case of partnerships and S corporations, the additional COD income and the portion of additional COD income that would be deferred are allocated or determined as provided in sections 2. 1040ez income tax form 08, 2. 1040ez income tax form 10 and, if applicable, 4. 1040ez income tax form 04(3) of this revenue procedure, respectively, as if the additional COD income was realized. 1040ez income tax form . 1040ez income tax form 07 Additional Requirements for Certain Partnerships Making a § 108(i) Election. 1040ez income tax form The rules of this section 4. 1040ez income tax form 07 apply to partnerships other than partnerships described in section 4. 1040ez income tax form 10 of this revenue procedure. 1040ez income tax form (1) Information filing on Schedule K-1 (Form 1065 and Form 1065-B). 1040ez income tax form For the taxable year in which the § 108(i) election is made, the partnership must report on the Schedule K-1 (Form 1065 or Form 1065-B), Partner’s Share of Income, Deductions, Credits, etc. 1040ez income tax form , in the manner specified in the instructions to the forms, for each partner § 108(i) information on an aggregate basis for all applicable debt instruments for which a § 108(i) election is made. 1040ez income tax form Partnerships reporting § 108(i) information on the 2008 Schedule K-1 (Form 1065 or Form 1065-B) must report for each partner on an aggregate basis for all applicable debt instruments for which a § 108(i) election is made: (a) The partner’s deferred amount that the partner must include in income in the current taxable year under § 108(i)(1) or § 108(i)(5)(D)(i) or (ii), in box 11 (“other income”) using code F for Schedule K-1 (Form 1065) or in box 9 (“other”) using code U for Schedule K-1 (Form 1065-B); (b) The partner’s share of the partnership’s OID deduction deferred under § 108(i)(2)(A)(i) that is allowable as a deduction in the current taxable year under § 108(i)(2)(A)(ii) or § 108(i)(5)(D)(i) or (ii), in box 13 (“other deductions”) using code W for Schedule K-1 (Form 1065) or in box 9 (“other”) using code U for Schedule K-1 (Form 1065-B); (c) The partner’s deferred amount that has not been included in income in the current or prior taxable years, in box 20 (“other information”) using code X for Schedule K-1 (Form 1065) or in box 9 (“other”) using code U for Schedule K-1 (Form 1065-B); (d) The partner’s share of the partnership’s OID deduction deferred under § 108(i)(2)(A)(i) that has not been deducted in the current or prior taxable years, in box 20 (“other information”) using code X for Schedule K-1 (Form 1065) or in box 9 (“other”) using code U for Schedule K-1 (Form 1065-B); (e) The partner’s deferred § 752 amount that is treated as a distribution of money to the partner under § 752 in the current taxable year, in box 20 (“other information”) using code X for Schedule K-1 (Form 1065) or in box 9 (“other”) using code U for Schedule K-1 (Form 1065-B); and (f) The partner’s deferred § 752 amount remaining as of the end of the current taxable year, in box 20 (“other information”) using code X for Schedule K-1 (Form 1065) or in box 9 (“other”) using code U for Schedule K-1 (Form 1065-B). 1040ez income tax form (2) Election information statement provided to partners. 1040ez income tax form The partnership must attach to the Schedule K-1 (Form 1065 or Form 1065-B) provided to each partner for the taxable year in which the § 108(i) election is made a statement satisfying the requirements of this section 4. 1040ez income tax form 07(2). 1040ez income tax form The partnership should not attach these statements to the Schedules K-1 that are filed with the Service, but must retain these statements, and each partner must retain that partner’s statement, in their respective books and records. 1040ez income tax form A statement meets the requirements of this section 4. 1040ez income tax form 07(2) if the statement— (a) Label. 1040ez income tax form States “Section 108(i) Election Information Statement for Partners” across the top. 1040ez income tax form (b) Required information. 1040ez income tax form Clearly identifies for each applicable debt instrument to which an election under § 108(i) applies— (i) The partner’s COD income amount, the partner’s deferred amount, and the partner’s included amount; (ii) The partner’s deferred amount that the partner must include in income in the current taxable year under § 108(i)(5)(D)(i) or (ii); (iii) The partner’s share of the partnership’s OID deduction deferred under § 108(i)(2)(A)(i) in the current taxable year; (iv) The partner’s share of the partnership’s OID deduction deferred under § 108(i)(2)(A)(i) that is allowable as a deduction in the current taxable year under § 108(i)(5)(D)(i) or (ii); (v) The partner’s share of each liability of the partnership described in section 4. 1040ez income tax form 05(2)(g) of this revenue procedure; (vi) The partner’s share of the decrease in the partnership liability that results from the reacquisition of the applicable debt instrument; (vii) The partner’s share of the decrease in the partnership liability that results from the reacquisition of the applicable debt instrument that is treated as a distribution of money to the partner under § 752 in the current taxable year; (viii) The partner’s deferred § 752 amount as described in section 2. 1040ez income tax form 09 of this revenue procedure; (ix) The partner’s additional deferred amount as described in section 4. 1040ez income tax form 06 of this revenue procedure; and (x) The date of the reacquisition transaction generating the COD income. 1040ez income tax form (c) If a partner fails to provide the written statement required by section 4. 1040ez income tax form 07(3) of this revenue procedure, the partnership must indicate that the amounts described in section 4. 1040ez income tax form 07(2)(b)(vii) and (viii) of this revenue procedure cannot be calculated because the partner did not provide the information necessary to report these amounts. 1040ez income tax form (3) Partner reporting requirements. 1040ez income tax form The partnership must make reasonable efforts prior to making a § 108(i) election to secure from each partner with a deferred amount for which it does not have the information necessary to compute the partner’s basis in its partnership interest (and its deferred § 752 amount as described in section 2. 1040ez income tax form 09 of this revenue procedure) a written statement signed under penalties of perjury that includes this information. 1040ez income tax form Each partner with a deferred amount must provide this written statement to the partnership within 30 days of the date of request by the partnership. 1040ez income tax form A partner’s failure to comply with this reporting requirement does not invalidate the partnership’s election under § 108(i) for an applicable debt instrument only if the partnership makes reasonable efforts before making the § 108(i) election to obtain the written statement from the partner and otherwise complies with the requirements of section 4 of this revenue procedure. 1040ez income tax form If a partner provides its written statement under this section 4. 1040ez income tax form 07(3) after the partnership has provided to the partner the Section 108(i) Election Information Statement for Partners, the partnership must provide to the partner a revised Section 108(i) Election Information Statement for Partners reporting the information required under section 4. 1040ez income tax form 07(2)(b)(vii) and (viii) of this revenue procedure and report the partner’s deferred § 752 amount on the partner’s Schedule K-1 (Form 1065 or Form 1065-B) in subsequent taxable years. 1040ez income tax form . 1040ez income tax form 08 Additional Requirements for an S Corporation Making a § 108(i) Election. 1040ez income tax form (1) Information filing on Schedule K-1 (Form 1120S). 1040ez income tax form For the taxable year in which the § 108(i) election is made, the S corporation must report on the Schedule K-1 (Form 1120S), Shareholder’s Share of Income, Deductions, Credits, etc. 1040ez income tax form , in the manner specified in the instructions to the forms, for each shareholder § 108(i) information on an aggregate basis for all applicable debt instruments for which a § 108(i) election is made. 1040ez income tax form S corporations reporting § 108(i) information on the 2008 Schedule K-1 (Form 1120S) must report for each shareholder, on an aggregate basis for all applicable debt instruments for which a § 108(i) election is made, the shareholder’s share of the S corporation’s: (a) COD income deferred under § 108(i) that the shareholder must include in income in the current taxable year under § 108(i)(1) or § 108(i)(5)(D)(i) or (ii), in box 10 (“other income”) using code E; (b) OID deduction deferred under § 108(i)(2)(A)(i) that is allowable as a deduction in the current taxable year under § 108(i)(2)(A)(ii), or § 108(i)(5)(D)(i) or (ii), in box 12 (“other deductions”) using code S; (c) COD income deferred under § 108(i) that has not been included in income in the current or prior taxable years, in box 17 (“other information”) using code T; and (d) OID deduction deferred under § 108(i)(2)(A)(i) that has not been deducted in the current or prior taxable years, in box 17 (“other information”) using code T. 1040ez income tax form (2) Election information statement provided to shareholders. 1040ez income tax form The S corporation must attach to the Schedule K-1 (Form 1120S) provided to each shareholder for the taxable year in which the § 108(i) election is made, a statement satisfying the requirements of this section 4. 1040ez income tax form 08(2). 1040ez income tax form The S corporation should not attach these statements to the Schedules K-1 that are filed with the Service, but must retain these statements, and each shareholder must retain that shareholder’s statement, in their respective books and records. 1040ez income tax form A statement meets the requirements of this section 4. 1040ez income tax form 08(2) if the statement— (a) Label. 1040ez income tax form States “Section 108(i) Election Information Statement for Shareholders” across the top. 1040ez income tax form (b) Required information. 1040ez income tax form Clearly identifies for each applicable debt instrument to which an election under § 108(i) applies, the shareholder’s share of the S corporation’s— (i) COD income that the S corporation elects to defer under § 108(i); (ii) COD income deferred under § 108(i) that the shareholder must include in income in the current taxable year under § 108(i)(5)(D)(i) or (ii); (iii) OID deduction deferred under § 108(i)(2)(A)(i) in the current taxable year; (iv) OID deduction deferred under § 108(i)(2)(A)(i) that is allowable as a deduction in the current taxable year under § 108(i)(5)(D)(i) or (ii); and (v) Additional COD income that would be deferred as described in section 4. 1040ez income tax form 06 of this revenue procedure. 1040ez income tax form . 1040ez income tax form 09 Section 108(i) Elections Made on Behalf of Certain Foreign Corporations. 1040ez income tax form The controlling domestic shareholder(s) (or common parent of the controlling domestic shareholder(s), if applicable) of a controlled foreign corporation or a noncontrolled § 902 corporation not otherwise required to file a return of tax may make the § 108(i) election on behalf of the foreign corporation by satisfying the requirements of § 1. 1040ez income tax form 964-1(c)(3). 1040ez income tax form Each controlling domestic shareholder must attach a statement identifying the foreign corporation and satisfying the requirements of section 4. 1040ez income tax form 05 of this revenue procedure and, if applicable, section 4. 1040ez income tax form 06 of this revenue procedure, to its federal income tax return for the taxable year ending within or with the taxable year of the foreign corporation for which the § 108(i) election is made. 1040ez income tax form . 1040ez income tax form 10 Section 108(i) Elections Made By Certain Foreign Partnerships. 1040ez income tax form The rules of this section 4. 1040ez income tax form 10 apply to a foreign partnership making a § 108(i) election that is not otherwise required to file a federal partnership return (“nonfiling foreign partnership”). 1040ez income tax form See § 1. 1040ez income tax form 6031(a)-1(b). 1040ez income tax form (1) A nonfiling foreign partnership making the election must attach a statement satisfying the requirements of section 4. 1040ez income tax form 05 of this revenue procedure and, if applicable, section 4. 1040ez income tax form 06 of this revenue procedure, to a partnership return satisfying the requirements of § 1. 1040ez income tax form 6031(a)-1(b)(5) it files with the Service. 1040ez income tax form In addition, a nonfiling foreign partnership must include in the information required in section 4. 1040ez income tax form 05(2)(d) and (e) of this revenue procedure the aggregate amounts for all partners as well as the aggregate amounts for all U. 1040ez income tax form S. 1040ez income tax form persons (as defined in § 7701(a)(30)) and controlled foreign corporation(s) that are partners with deferred amounts in the nonfiling foreign partnership (“affected partners”). 1040ez income tax form (2) The nonfiling foreign partnership must make the election, in accordance with § 1. 1040ez income tax form 6031(a)-1(b)(5), by the date provided in section 4. 1040ez income tax form 01(1)(a) of this revenue procedure, as if it had a filing obligation for the taxable year in which the reacquisition of the applicable debt instrument occurs. 1040ez income tax form (3) For each affected partner, the partnership must file with the Service a Schedule K-1 (Form 1065) and report on the Schedule K-1 (Form 1065) for the affected partner as provided in section 4. 1040ez income tax form 07(1) of this revenue procedure. 1040ez income tax form Except for this § 108(i) information, the partnership need not complete Part III of the Schedule K-1 (Form 1065). 1040ez income tax form The partnership must provide a copy of the respective Schedule K-1 (Form 1065) to each affected partner and must also attach to the Schedule K-1 (Form 1065) provided to each affected partner a statement satisfying the requirements of section 4. 1040ez income tax form 07(2) of this revenue procedure by the date provided in section 4. 1040ez income tax form 01(1)(a) of this revenue procedure. 1040ez income tax form The partnership should not attach any statement described in section 4. 1040ez income tax form 07(2) of this revenue procedure to the Schedules K-1 that are filed with the Service. 1040ez income tax form However, the partnership must retain the statements provided to the affected partners, and each affected partner must retain that partner’s statement, in their respective books and records. 1040ez income tax form (4) The partnership and each affected partner must satisfy the requirements of section 4. 1040ez income tax form 07(3) of this revenue procedure. 1040ez income tax form . 1040ez income tax form 11 Protective § 108(i) Election. 1040ez income tax form (1) In general. 1040ez income tax form A taxpayer may make a protective election under § 108(i) for an applicable debt instrument if the taxpayer concludes that a particular transaction does not result in the realization of COD income, reports the transaction on its federal income tax return in a manner consistent with the taxpayer’s conclusion, and would be within the scope of this revenue procedure if the taxpayer’s conclusion were incorrect. 1040ez income tax form If the Service at any time determines the taxpayer’s conclusion that the particular transaction does not result in the realization of COD income is incorrect, the taxpayer’s protective election is treated as a valid, irrevocable election under § 108(i). 1040ez income tax form Thus, if a taxpayer makes a protective election, the Service subsequently may require the taxpayer to report COD income deferred pursuant to the valid and irrevocable protective election even if the statute of limitations has expired for the year in which the COD income was realized and the protective election was made. 1040ez income tax form A taxpayer makes a protective election by attaching a statement satisfying the requirements of this section 4. 1040ez income tax form 11(1) to the taxpayer’s original federal income tax return within the period described in section 4. 1040ez income tax form 01(1)(a) of this revenue procedure. 1040ez income tax form The taxpayer also must attach the election to its federal income tax return in each of the 8 or 9 taxable years, as applicable, following the taxable year of the election. 1040ez income tax form A statement meets the requirements of this section 4. 1040ez income tax form 11(1) if the statement— (a) States “Section 108(i) Protective Election” across the top; (b) Provides the information required under section 4. 1040ez income tax form 05(2)(a), (b), and (c) of this revenue procedure; (c) Provides that the amounts described in sections 4. 1040ez income tax form 05(2)(d) and (e) of this revenue procedure are zero; and (d) Provides the information described in section 4. 1040ez income tax form 06 of this revenue procedure. 1040ez income tax form (2) Statements provided to shareholders and partners. 1040ez income tax form (a) For each applicable debt instrument, a partnership or S corporation that makes a protective election must attach to the Schedule K-1 (Form 1065, Form 1065-B, or Form 1120S) it provides each of its partners or shareholders, as the case may be, for the taxable year in which the protective election is made a statement containing the information described in section 4. 1040ez income tax form 11(1)(b) of this revenue procedure (an S corporation need not provide its shareholders with the date(s) of the transaction(s) that would constitute the reacquisition transaction or transactions) and the partner’s or shareholder’s share of the additional COD income that would be deferred as described in section 4. 1040ez income tax form 11(1)(d) of this revenue procedure. 1040ez income tax form (b) The partnership or S corporation should not attach the statements described in this section 4. 1040ez income tax form 11(2) to the Schedules K-1 that are filed with the Service but must retain these statements, and each partner and shareholder must retain that partner’s or shareholder’s statement, in their respective books and records. 1040ez income tax form . 1040ez income tax form 12 Election-Year Reporting by Tiered Pass-Through Entities. 1040ez income tax form (1) A partnership required to file a U. 1040ez income tax form S. 1040ez income tax form partnership return other than under § 1. 1040ez income tax form 6031(a)-1(b)(5), or an S corporation, that receives a Schedule K-1 (Form 1065 or Form 1065-B) reflecting its share of any items listed in section 4. 1040ez income tax form 07(1) of this revenue procedure, must report on the Schedules K-1 (Form 1065, Form 1065-B, or Form 1120S) to its partners or shareholders, as the case may be, each partner’s or shareholder’s share of those items (an S corporation only reports to its shareholders the items described in section 4. 1040ez income tax form 07(1)(a) through (d) of this revenue procedure). 1040ez income tax form (2) If a partnership described in section 4. 1040ez income tax form 12(1) of this revenue procedure receives a statement described in sections 4. 1040ez income tax form 07(2) or 4. 1040ez income tax form 10(3) of this revenue procedure or this section 4. 1040ez income tax form 12(2), it must provide each of its partners a statement containing the partner’s share of each of the items listed on each statement received by the partnership, including the information described in section 4. 1040ez income tax form 07(2)(b)(x) of this revenue procedure. 1040ez income tax form If an S corporation receives a statement described in sections 4. 1040ez income tax form 07(2) or 4. 1040ez income tax form 10(3) of this revenue procedure or this section 4. 1040ez income tax form 12(2), it must provide each of its shareholders a statement containing the shareholder’s share of each of the items listed on each statement received by the S corporation that are described in section 4. 1040ez income tax form 07(2)(b)(i), (ii), (iii), (iv) and (ix) of this revenue procedure. 1040ez income tax form The partnership or S corporation must attach this statement or statements to the Schedule K-1 (Form 1065, Form 1065-B, or Form 1120S) that it provides to each of its partners or shareholders, as the case may be, for the taxable year of the partnership or S corporation. 1040ez income tax form The partnership or S corporation should not attach these statements to the Schedules K-1 that are filed with the Service but must retain these statements, and each partner and shareholder must retain that partner’s or shareholder’s statement, in their respective books and records. 1040ez income tax form (3) A partnership that receives a statement described in this section 4 identifying its COD income amount with respect to an applicable debt instrument must allocate its COD income amount, without regard to § 108(i), to the partners in the partnership immediately before the reacquisition transaction in the manner in which the income would be included in the distributive shares of these partners under § 704 and the regulations thereunder, including § 1. 1040ez income tax form 704-1(b)(2)(iii). 1040ez income tax form The partnership may determine in any manner the portion, if any, of a partner’s COD income amount that is the partner’s deferred amount and the portion, if any, of a partner’s COD income amount that is the partner’s included amount. 1040ez income tax form No partner’s deferred amount with respect to an applicable debt instrument may exceed its COD income amount with respect to the applicable debt instrument, and the aggregate of deferred amounts of its partners with respect to an applicable debt instrument must equal the partnership’s deferred amount with respect to the applicable debt instrument. 1040ez income tax form The partnership allocates amounts described in section 4. 1040ez income tax form 06 of this revenue procedure under this section 4. 1040ez income tax form 12(3) as if the additional COD income was realized. 1040ez income tax form (4) The deferred § 752 amount for partners in a partnership making a § 108(i) election is calculated only for the partnership’s direct partners. 1040ez income tax form No further adjustment to the deferred § 752 amount is made to reflect the basis or other attributes of partners that are indirect partners in the partnership. 1040ez income tax form (5) If an S corporation receives a statement described in this section 4 identifying its COD income amount, deferred amount, included amount or additional COD income that would be deferred with respect to an applicable debt instrument, these amounts are shared pro rata only among those shareholders that are shareholders in the S corporation immediately before the reacquisition transaction. 1040ez income tax form (6) This paragraph 4. 1040ez income tax form 12(6) provides the rules for Category 1 and Category 2 filers of Form 8865, Return of U. 1040ez income tax form S. 1040ez income tax form Persons With Respect to Certain Foreign Partnerships, as defined in the instructions for Form 8865, if the foreign partnership, for which the Category 1 or Category 2 filer has a filing requirement, receives a Schedule K-1 (Form 1065 or Form 1065-B) reflecting the partnership’s share of any items listed in section 4. 1040ez income tax form 07(1) of this revenue procedure, or a statement described in sections 4. 1040ez income tax form 07(2) or 4. 1040ez income tax form 10(3) of this revenue procedure (because the foreign partnership owns an interest directly or indirectly in another partnership in which an election was made under § 108(i) with respect to that foreign partnership’s distributive share from the other entity). 1040ez income tax form (a) For each partner for whom the Category 1 filer is required to complete a Schedule K-1 (Form 8865) (which includes the Category 1 filer itself), the Category 1 filer must: (i) Include the information described in section 4. 1040ez income tax form 07(1) of this revenue procedure in the Schedule K-1 (Form 8865) that the Category 1 filer files with the Service and completes for the partner; (ii) Produce a statement containing the partner’s share of the items listed on each statement received by the partnership; and (iii) Attach the statement described in section 4. 1040ez income tax form 12(6)(a)(ii) of this revenue procedure to each Schedule K-1 (Form 8865) that it is required to provide to a partner of the foreign partnership. 1040ez income tax form (b) A Category 2 filer must include its share of the information described in section 4. 1040ez income tax form 07(1) on the Schedule K-1 (Form 8865) that it is required to complete. 1040ez income tax form Category 2 filers also must complete a statement containing their share of the items listed on each statement received by the partnership. 1040ez income tax form (c) The Category 1 and Category 2 filers should not attach the statements described in sections 4. 1040ez income tax form 12(6)(a)(ii) and 4. 1040ez income tax form 12(6)(b) of this revenue procedure, respectively, to the Schedules K-1 that are filed with the Service. 1040ez income tax form However, Category 1 filers must retain the statements they complete and each partner must retain its own statement, in their respective books and records. 1040ez income tax form (7) If as a result of § 108(i)(5)(D)(ii), a partner of a partnership described in section 4. 1040ez income tax form 12(1) of this revenue procedure or a shareholder of an S corporation described in section 4. 1040ez income tax form 12(1) of this revenue procedure must recognize items deferred under § 108(i), the partnership or S corporation must report these items on the Schedule K-1 (Form 1065, Form 1065-B, or Form 1120S) and statements provided to the partner or shareholder pursuant to section 4. 1040ez income tax form 12(1) and (2) of this revenue procedure. 1040ez income tax form Similar rules apply to Category 1 and Category 2 filers (Form 8865) described in section 4. 1040ez income tax form 12(6) of this revenue procedure. 1040ez income tax form (8) The provisions of section 4. 1040ez income tax form 12(2), (3), (5) and (6) of this revenue procedure also apply to a statement received that is described in section 4. 1040ez income tax form 11(2) of this revenue procedure, except that the information that must be provided are those items described in section 4. 1040ez income tax form 11(1)(b) of this revenue procedure (an S corporation need not provide its shareholders with the date(s) of the transaction(s) that would constitute the reacquisition transaction or transactions) and the share of the partner or shareholder in the amounts described in section 4. 1040ez income tax form 11(1)(d) of this revenue procedure. 1040ez income tax form SECTION 5. 1040ez income tax form REQUIRED INFORMATION STATEMENT . 1040ez income tax form 01 Annual Information Statements. 1040ez income tax form Pursuant to § 108(i)(7)(B), a taxpayer that makes an election under § 108(i) (except for a protective election under section 4. 1040ez income tax form 11(1) of this revenue procedure) must attach a statement meeting the requirements of section 5. 1040ez income tax form 02 of this revenue procedure to its federal income tax return for each taxable year beginning with the taxable year following the taxable year for which the taxpayer makes the election and ending with the first taxable year in which all items deferred under § 108(i) have been recognized. 1040ez income tax form . 1040ez income tax form 02 Contents of Statement. 1040ez income tax form A statement meets the requirements of this section 5. 1040ez income tax form 02 if the statement— (1) Label. 1040ez income tax form States “Section 108(i) Information Statement” across the top; (2) Required information. 1040ez income tax form Clearly identifies for each applicable debt instrument to which an election under § 108(i) applies— (a) COD income deferred under § 108(i) that is included in income in the current taxable year under § 108(i)(1); (b) COD income deferred under § 108(i) that is included in income in the current taxable year under § 108(i)(5)(D), including a description and date of the acceleration event described in § 108(i)(5)(D); (c) COD income deferred under § 108(i) that has not been included in income in the current or prior taxable years (in the case of a partnership, the aggregate of the partners’ deferred amounts that have not been included in income in the current or prior taxable years, and in the case of an S corporation, the S corporation’s COD income deferred under § 108(i) that has not been included in income in the current or prior taxable years); (d) OID deduction deferred under § 108(i)(2)(A)(i) that is allowable as a deduction in the current taxable year under § 108(i)(2)(A)(ii); (e) OID deduction deferred under § 108(i)(2)(A)(i) that is allowable as a deduction in the current taxable year under § 108(i)(5)(D); and (f) OID deduction deferred under § 108(i)(2)(A)(i) that has not been deducted in the current or prior taxable years. 1040ez income tax form (3) Election attached. 1040ez income tax form Includes a copy of the election statement described in section 4. 1040ez income tax form 05 of this revenue procedure. 1040ez income tax form . 1040ez income tax form 03 Additional Annual Reporting Requirements for Certain Partnerships. 1040ez income tax form The rules of this section 5. 1040ez income tax form 03 apply to partnerships other than partnerships described in section 5. 1040ez income tax form 05 of this revenue procedure. 1040ez income tax form (1) In general. 1040ez income tax form A partnership that makes an election under § 108(i) (except for a protective election under section 4. 1040ez income tax form 11(1) of this revenue procedure) must attach to its federal income tax returns the statements required under section 5. 1040ez income tax form 01 of this revenue procedure. 1040ez income tax form In addition, for each taxable year in which a statement is required under section 5. 1040ez income tax form 01 of this revenue procedure, the partnership must report on the Schedule K-1 (Form 1065 or Form 1065-B) for each partner § 108(i) information in the manner described in section 4. 1040ez income tax form 07(1) of this revenue procedure. 1040ez income tax form (2) Annual information statements provided to partners. 1040ez income tax form The partnership must attach to the Schedule K-1 (Form 1065) provided to each partner for each taxable year in which a statement is required under section 5. 1040ez income tax form 01 of this revenue procedure, a statement meeting the requirements of this section 5. 1040ez income tax form 03(2). 1040ez income tax form The partnership should not attach these statements to the Schedules K-1 that are filed with the Service, but must retain these statements, and each partner must retain that partner’s statement, in their respective books and records. 1040ez income tax form A statement meets the requirements of this section 5. 1040ez income tax form 03(2) if the statement— (a) Label. 1040ez income tax form States “Section 108(i) Annual Information Statement for Partners” across the top of the statement. 1040ez income tax form (b) Required information. 1040ez income tax form Clearly identifies for each applicable debt instrument to which a § 108(i) election applies— (i) The partner’s deferred amount that has not been included in income as of the end of the prior taxable year; (ii) The partner’s deferred amount that the partner must include in income in the current taxable year under § 108(i)(1); (iii) The partner’s deferred amount that the partner must include in income in the current taxable year under § 108(i)(5)(D)(i) or (ii); (iv) The partner’s deferred amount that has not been included in income in the current or prior taxable years; (v) The partner’s share of the partnership’s OID deduction deferred under § 108(i)(2)(A)(i) in the current taxable year; (vi) The partner’s share of the partnership’s OID deduction deferred under § 108(i)(2)(A)(i) that is allowable as a deduction in the current taxable year under § 108(i)(2)(A)(ii); (vii) The partner’s share of the partnership’s OID deduction deferred under § 108(i)(2)(A)(i) that is allowable as a deduction in the current taxable year under § 108(i)(5)(D)(i) or (ii); (viii) The partner’s share of the partnership’s OID deduction deferred under § 108(i)(2)(A)(i) that has not been deducted in the current or prior taxable years; and (ix) The partner’s deferred § 752 amount that is treated as a distribution of money to the partner under § 752 in the current taxable year and any remaining deferred § 752 amount. 1040ez income tax form If a partner fails to provide the written statement required by section 4. 1040ez income tax form 07(3) of this revenue procedure, the partnership must indicate that the amounts described in this section 5. 1040ez income tax form 03(2)(b)(ix) cannot be calculated because the partner did not provide the information necessary to report these amounts. 1040ez income tax form . 1040ez income tax form 04 Additional Annual Reporting Requirements for an S Corporation. 1040ez income tax form (1) In general. 1040ez income tax form An S corporation that makes an election under § 108(i) (except for a protective election under section 4. 1040ez income tax form 11(1) of this revenue procedure) must attach to its federal income tax returns the statements required under section 5. 1040ez income tax form 01 of this revenue procedure. 1040ez income tax form In addition, for each taxable year in which a statement is required under section 5. 1040ez income tax form 01 of this revenue procedure, the S corporation must report on the Schedule K-1 (Form 1120S) for each shareholder § 108(i) information in the manner described in section 4. 1040ez income tax form 08(1) of this revenue procedure. 1040ez income tax form (2) Annual information statements provided to shareholders. 1040ez income tax form The S corporation must attach to the Schedule K-1 (Form 1120S) provided to each shareholder for each taxable year in which a statement is required under section 5. 1040ez income tax form 01 of this revenue procedure a statement meeting the requirements of this section 5. 1040ez income tax form 04(2). 1040ez income tax form The S corporation should not attach these statements to the Schedules K-1 that are filed with the Service, but must retain these statements, and each shareholder must retain that shareholder’s statement, in their respective books and records. 1040ez income tax form A statement meets the requirements of this section 5. 1040ez income tax form 04(2) if the statement— (a) Label. 1040ez income tax form States “Section 108(i) Annual Information Statement for Shareholders” across the top; (b) Required information. 1040ez income tax form Clearly identifies for each applicable debt instrument to which an election under § 108(i) applies, the shareholder’s share of the S corporation’s— (i) COD income deferred under § 108(i) that has not been included in income as of the end of the prior taxable year; (ii) COD income deferred under § 108(i) that the shareholder must include in income in the current taxable year under § 108(i)(1); (iii) COD income deferred under § 108(i) that the shareholder must include in income in the current taxable year under § 108(i)(5)(D)(i) or (ii); (iv) COD income deferred under § 108(i) that has not been included in income in the current or prior taxable years; (v) OID deduction deferred under § 108(i)(2)(A)(i) in the current taxable year; (vi) OID deduction deferred under § 108(i)(2)(A)(i) that is allowable as a deduction in the current taxable year under § 108(i)(2)(A)(ii); (vii) OID deduction deferred under § 108(i)(2)(A)(i) that is allowable as a deduction in the current taxable year under § 108(i)(5)(D)(i) or (ii); and (viii) OID deduction deferred under § 108(i)(2)(A)(i) that has not been deducted in the current or prior taxable years. 1040ez income tax form . 1040ez income tax form 05 Additional Annual Reporting Requirements for Certain Foreign Partnerships. 1040ez income tax form (1) The rules of this section 5. 1040ez income tax form 05 apply to nonfiling foreign partnerships. 1040ez income tax form (2) A nonfiling foreign partnership that makes an election under § 108(i) (except for a protective election under section 4. 1040ez income tax form 11(1) of this revenue procedure) must file federal income tax returns with the Service containing the information under § 1. 1040ez income tax form 6031(a)-1(b)(5) for each taxable year in which a statement is required by section 5. 1040ez income tax form 01 of this revenue procedure. 1040ez income tax form (3) The nonfiling foreign partnership must attach to its federal income tax returns the statements required under section 5. 1040ez income tax form 01 of this revenue procedure, but only for that portion of the COD income allocated to affected partners. 1040ez income tax form (4) For each taxable year in which a statement is required under section 5. 1040ez income tax form 01 of this revenue procedure, the nonfiling foreign partnership must provide each affected partner a Schedule K-1 (Form 1065) reporting § 108(i) information in the manner described in section 4. 1040ez income tax form 07(1) of this revenue procedure. 1040ez income tax form Except for this § 108(i) information, the partnership need not complete Part III of the Schedule K-1 (Form 1065). 1040ez income tax form The partnership must provide each affected partner with a copy of the Schedule K-1 (Form 1065) by the date provided in § 1. 1040ez income tax form 6031(b)-1T(b). 1040ez income tax form The partnership must attach the Schedules K-1 (Form 1065) to the federal income tax returns filed with the Service pursuant to section 5. 1040ez income tax form 05(2) of this revenue procedure. 1040ez income tax form (5) For each taxable year for which a statement is required under section 5. 1040ez income tax form 01 of this revenue procedure, the nonfiling foreign partnership must attach to each affected partner’s Schedule K-1 (Form 1065) a statement meeting the requirements of section 5. 1040ez income tax form 03(2) of this revenue procedure. 1040ez income tax form The partnership should not attach these statements to the Schedules K-1 that are filed with the Service, but must retain the statements, and each partner must retain that partner’s statement, in their respective books and records. 1040ez income tax form . 1040ez income tax form 06 Information Statements Made on Behalf of Certain Foreign Corporations. 1040ez income tax form Each controlling domestic shareholder must attach a statement identifying the foreign corporation and meeting the requirements of section 5. 1040ez income tax form 02 of this revenue procedure to the shareholder’s federal income tax return for each taxable year for which a statement is required under section 5. 1040ez income tax form 01 of this revenue procedure. 1040ez income tax form . 1040ez income tax form 07 Additional Annual Reporting Requirements for Tiered Pass-Through Entities. 1040ez income tax form (1) A partnership required to file a U. 1040ez income tax form S. 1040ez income tax form partnership return other than under § 1. 1040ez income tax form 6031(a)-1(b)(5), or an S corporation, that receives a Schedule K-1 (Form 1065 or Form 1065-B) described in the second sentence of section 5. 1040ez income tax form 03(1) of this revenue procedure reflecting its share of any § 108(i) information must report on the Schedules K-1 (Form 1065, Form 1065-B, or Form 1120S) to its partners or shareholders, as the case may be, each partner’s or shareholder’s share of those items (an S corporation only reports to its shareholders the items described in section 4. 1040ez income tax form 07(1)(a) through (d) of this revenue procedure). 1040ez income tax form (2) If a partnership described in section 5. 1040ez income tax form 07(1) of this revenue procedure receives a statement described in sections 5. 1040ez income tax form 03(2) or 5. 1040ez income tax form 05(5) of this revenue procedure or this section 5. 1040ez income tax form 07(2), it must provide each of its partners a statement containing the partner’s share of each of the items listed on each statement received by the partnership. 1040ez income tax form If an S corporation receives a statement described in sections 5. 1040ez income tax form 03(2) or 5. 1040ez income tax form 05(5) of this revenue procedure or this section 5. 1040ez income tax form 07(2), it must provide each of its shareholders a statement containing the shareholder’s share of each of the items listed on each statement received by the S corporation that are described in section 5. 1040ez income tax form 03(2)(b)(i) through (viii) of this revenue procedure. 1040ez income tax form The partnership or S corporation must attach the statement or statements to the Schedule K-1 (Form 1065 or Form 1065-B) or Schedule K-1 (Form 1120S) that is provided to each of its partners or shareholders, as the case may be, for the taxable year of the partnership or S corporation. 1040ez income tax form The partnership or S corporation should not attach these statements to the Schedules K-1 that are filed with the Service, but must retain these statements, and each partner and shareholder must retain that partner’s or shareholder’s statement, in their respective books and records. 1040ez income tax form (3) This paragraph 5. 1040ez income tax form 07(3) provides the rules for persons described in section 4. 1040ez income tax form 12(6) of this revenue procedure if the foreign partnership, for which the Category 1 or 2 filer has a filing requirement, receives a Schedule K-1 (Form 1065 or Form 1065-B) reflecting the partnership’s share of any items described in the second sentence of section 5. 1040ez income tax form 03(1) of this revenue procedure, or a statement described in sections 5. 1040ez income tax form 03(2) or 5. 1040ez income tax form 05(5) of this revenue procedure (because the foreign partnership owns an interest directly or indirectly in another partnership in which an election was made under § 108(i) with respect to that foreign partnership’s distributive share from the other entity). 1040ez income tax form (a) For each partner for whom the Category 1 filer is required to complete a Schedule K-1 (Form 8865) (which includes the Category 1 filer itself), the Category 1 filer must: (i) Include the information described in section 4. 1040ez income tax form 07(1) of this revenue procedure in the Schedule K-1 (Form 8865) that the Category 1 filer files with the Service and completes for the partner; (ii) Produce a statement containing the partner’s share of the items listed on each statement received by the partnership; and (iii) Attach the statement described in section 5. 1040ez income tax form 07(3)(a)(ii) of this revenue procedure to each Schedule K-1 (Form 8865) that it is required to provide to a partner of the foreign partnership. 1040ez income tax form (b) A Category 2 filer must include its share of the information described in section 4. 1040ez income tax form 07(1) on the Schedule K-1 (Form 8865) that it is required to complete. 1040ez income tax form Category 2 filers also must complete a statement containing their share of the items listed on each statement received by the partnership. 1040ez income tax form (c) The Category 1 and Category 2 filers should not attach the statements described in sections 5. 1040ez income tax form 07(3)(a)(ii) and 5. 1040ez income tax form 07(3)(b) of this revenue procedure, respectively, to the Schedules K-1 that are filed with the Service. 1040ez income tax form However, Category 1 filers must retain the statements they complete and each partner must retain its own statement, in their respective books and records. 1040ez income tax form (4) If as a result of § 108(i)(5)(D)(ii), a partner of a partnership described in section 5. 1040ez income tax form 07(1) of this revenue procedure or a shareholder of an S corporation described in section 5. 1040ez income tax form 07(1) of this revenue procedure must recognize items deferred under § 108(i), the partnership or S corporation must report these items on the Schedule K-1 (Form 1065, Form 1065-B, or Form 1120S) and statements provided to the partner or shareholder pursuant to section 5. 1040ez income tax form 07(1) and (2) of this revenue procedure. 1040ez income tax form Similar rules apply to Category 1 and Category 2 filers (Form 8865) described in section 4. 1040ez income tax form 12(6) of this revenue procedure. 1040ez income tax form SECTION 6. 1040ez income tax form EFFECTIVE DATE This revenue procedure is effective for reacquisitions of applicable debt instruments in taxable years ending after December 31, 2008. 1040ez income tax form SECTION 7. 1040ez income tax form TRANSITION RULE . 1040ez income tax form 01 Noncomplying Election. 1040ez income tax form Except as otherwise provided in this section 7. 1040ez income tax form 01, the Service will treat a § 108(i) election as effective if a taxpayer files an election with the taxpayer’s federal income tax return filed on or before September 16, 2009, using any reasonable procedure to make the election. 1040ez income tax form However, an election that does not comply with section 4 of this revenue procedure will not be effective unless the taxpayer on or before November 16, 2009, files an amended return for the taxable year of the election and complies with the requirements of section 4 of this revenue procedure. 1040ez income tax form . 1040ez income tax form 02 Modification of Election. 1040ez income tax form A taxpayer that files a § 108(i) election on or before September 16, 2009, may modify that election by filing an amended return on or before November 16, 2009 (for example, to modify the amount of COD income the taxpayer elects to defer). 1040ez income tax form To be effective, a modification of an election described in the preceding sentence must satisfy the requirements for an election described in section 4 of this revenue procedure. 1040ez income tax form . 1040ez income tax form 03 Notations. 1040ez income tax form A taxpayer that files the amended return on paper must write “Section 108(i) Election” on the top of the first page. 1040ez income tax form A taxpayer that files the amended return electronically should indicate “Section 108(i) Election” on the return. 1040ez income tax form See Publication 4163, Modernized e-File (MeF) Information for Authorized IRS e-file Providers for Business Returns Tax Year 2008 for more details. 1040ez income tax form SECTION 8. 1040ez income tax form PAPERWORK REDUCTION ACT The collection of information contained in this revenue procedure has been reviewed and approved by the Office of Management and Budget in accordance with the Paperwork Reduction Act (44 U. 1040ez income tax form S. 1040ez income tax form C. 1040ez income tax form 3507) under control number 1545-2147. 1040ez income tax form An agency may not conduct or sponsor, and a person is not required to respond to, a collection of information unless the collection of information displays a valid OMB control number. 1040ez income tax form The collection of information in this revenue procedure is in sections 4, 5 and 7. 1040ez income tax form This information is required to determine the amount of income and deductions a taxpayer elects to defer and to track those amounts until the taxpayer has reported all deferred income and deductions on the taxpayer’s tax return. 1040ez income tax form This information will be used during examination to verify that a taxpayer has correctly deferred income and deductions. 1040ez income tax form The collection of information is required to obtain a benefit. 1040ez income tax form The likely respondents are C corporations, shareholders of S corporations, partners of partnerships, and other individuals engaged in a trade or business, that reacquire applicable debt instruments in 2009 or 2010. 1040ez income tax form The estimated total annual reporting burden is 300,000 hours. 1040ez income tax form The estimated annual burden per respondent varies from 1 to 8 hours, depending on individual circumstances, with an estimated average of 6 hours. 1040ez income tax form The estimated number of respondents is 50,000. 1040ez income tax form Books or records relating to a collection of information must be retained as long as their contents may become material in the administration of any internal revenue law. 1040ez income tax form Generally, tax returns and return information are confidential, as required by § 6103. 1040ez income tax form DRAFTING INFORMATION The principal authors of this revenue procedure are Megan A. 1040ez income tax form Stoner of the Office of Associate Chief Counsel (Passthroughs & Special Industries) and Craig Wojay of the Office of Associate Chief Counsel (Income Tax & Accounting). 1040ez income tax form For further information regarding this revenue procedure, contact Megan A. 1040ez income tax form Stoner at (202) 622-3070 for questions involving partnerships and S corporations, William E. 1040ez income tax form Blanchard at (202) 622-3950 for questions involving OID, Ronald M. 1040ez income tax form Gootzeit at (202) 622-3860 for questions involving foreign entities, Robert Rhyne at (202) 622-7790 for questions involving earnings and profits and consolidated groups, and Craig Wojay at (202) 622-4920 for questions on § 108(i) generally (not toll-free calls). 1040ez income tax form Prev  Up  Next   Home   More Internal Revenue Bulletins
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What's Hot

Here you'll find items of current interest — new programs, recent guidance or timely reminders.


Fuel Tax Credit Extensions: Frequently Asked Questions

These Q&As tell taxpayers how to claim the credits for qualifying sales or uses during 2012. It also describes changes to the cellulosic biofuel credit for 2013.


Legislation

In the past few years, there have been several laws passed that have tax implications. For more information, visit our pages on:


For Same-Sex Couples and Certain Domestic Partners

The following questions and answers provide information to individuals of the same sex who are lawfully married (same-sex spouses). 

Additional information may be found in: 

The following questions and answers provide information to individuals of the same sex and opposite sex who are in registered domestic partnerships, civil unions, or other similar formal relationships that are not marriages under state law. These individuals are not considered as married or spouses for federal tax purposes.

Additional information on these issues may be found in Notice 2013-61, Revenue Ruling 2013-17 and news release IR-2013-72, Treasury and IRS Announce That All Legal Same-Sex Marriages Will Be Recognized For Federal Tax Purposes; Ruling Provides Certainty, Benefits and Protections Under Federal Tax Law for Same-Sex Married Couples. 


Tax Return Preparer Requirements

The IRS has undertaken several initiatives to reach tax return preparers with education and enforcement. All paid preparers must register with the IRS and obtain a Preparer Tax Identification Number (PTIN). Find out more.


Consumer Alerts

‪Please note that the IRS does not initiate contact with taxpayers by email to request personal or financial information. This includes any type of electronic communication, such as text messages and social media channels.

  • ‪If you get an unsolicited email that appears to be from the IRS, please report it by sending it to phishing@irs.gov. ‪
  • If you find a suspicious website that claims to be the IRS, please send the site’s URL by email to phishing@irs.gov, using the subject line: suspicious website.

For more information on phishing scams, please see Suspicious e-Mails and Identity Theft.

March 2014
New Email Phishing Scam

The IRS has been alerted to a new email phishing scam. The emails appear to be from the IRS Taxpayer Advocate Service and include a bogus case number and the following message:

“Your reported 2013 income is flagged for review due to a document processing error. Your case has been forwarded to the Taxpayer Advocate Service for resolution assistance. To avoid delays processing your 2013 filing contact the Taxpayer Advocate Service for resolution assistance.”

The recipient is directed to click on links that supposedly provide information about the "advocate" assigned to their case or that let them "review reported income."  The links lead to web pages that solicit personal information.

Taxpayers who get these messages should not respond to the email or click on the links. Instead, they should forward the scam emails to the IRS at phishing@irs.gov. For more information, visit the IRS's Report Phishing web page.

The Taxpayer Advocate Service is a legitimate IRS organization that helps taxpayers resolve federal tax issues that have not been resolved through the normal IRS channels. The IRS, including TAS, does not initiate contact with taxpayers by email, texting or any social media.

November 2013
Typhoon Haiyan Relief Scams

Possible scams are taking place in the wake of Typhoon Haiyan. On Nov. 8, 2013, Typhoon Haiyan — known as Yolanda in the Philippines — made landfall in the central Philippines, bringing strong winds and heavy rains that have resulted in flooding, landslides, and widespread damage.

Following major disasters, it is common for scam artists to impersonate charities to get money or private information from well-intentioned taxpayers. Such fraudulent schemes may involve contact by telephone, social media, email or in-person solicitations.

October 2013
Telephone Scam Now Making the Rounds

The IRS warns consumers about a sophisticated phone scam targeting taxpayers, including recent immigrants, throughout the country. Victims are told they owe money to the IRS and it must be paid promptly through a pre-loaded debit card or wire transfer. If the victim refuses to cooperate, they are then threatened with arrest, deportation or suspension of a business or driver’s license. Characteristics of this scam include:

  • Scammers use fake names and IRS badge numbers. They generally use common names and surnames to identify themselves.
  • Scammers may be able to recite the last four digits of a victim’s Social Security Number.
  • Scammers spoof the IRS toll-free number on caller ID to make it appear that it’s the IRS calling.
  • Scammers sometimes send bogus IRS emails to some victims to support their bogus calls.
  • Victims hear background noise of other calls being conducted to mimic a call site.
  • After threatening victims with jail time or driver’s license revocation, scammers hang up and others soon call back pretending to be from the local police or DMV, and the caller ID supports their claim.

If you know you owe taxes or you think you might owe taxes, call the IRS at 1-800-829-1040. If you know you don’t owe taxes or have no reason to think that you owe any taxes (for example, you’ve never received a bill or the caller made some bogus threats as described above), call and report the incident to the Treasury Inspector General for Tax Administration at 1-800-366-4484. 

October 2012
Don't Fall for Phony IRS Websites

The IRS warns consumers about a new tax scam that uses a website that mimics the IRS e-Services online registration page.

‪The actual IRS e-Services page offers web-based products for tax preparers, not the general public. The phony web page looks almost identical to the real one.

The IRS gets many reports of fake websites like this. Criminals use these sites to lure people into providing personal and financial information that may be used to steal the victim’s money or identity. Typically, identity thieves empty the victim’s financial accounts, run up charges on the victim’s existing credit cards or apply for new loans, credit cards, services or benefits in the victim’s name.

‪The address of the official IRS website is www.irs.gov. Don’t be misled by sites claiming to be the IRS but ending in .com, .net, .org or other designations instead of .gov.

The IRS website has information that can help you protect yourself from tax scams of all kinds. Search the site using the term: phishing.


Interim Changes to the ITIN Application Process

Effective June 22, 2012, the IRS has made interim changes that affect the Individual Taxpayer Identification Number (ITIN) application process. Some of the information below, including the documentation requirements for individuals seeking an ITIN, has been superseded by these changes. Taxpayers and their representatives should review these changes, which are further explained in these Frequently Asked Questions, before requesting an ITIN.

On Oct. 2, 2012, the IRS implemented clarifying changes to its temporary procedures for issuing ITINs for noncitizens with tax Extensions and many foreign students.

Beginning Jan. 1, 2013, the IRS implemented improvements to the Individual Taxpayer Identification Number (ITIN) application process. These changes were developed based on an extensive review and feedback from a variety of stakeholders. The updated ITIN procedures build on changes announced last summer and fall to better protect the integrity of the ITIN application process and strengthen the refund process. Read about the new program changes and check out the latest frequently asked questions for more information.


Help for Victims of Ponzi Investment Schemes

If you've been the victim of a Ponzi scheme, find out more about how it affects your tax situation. We also have some new Q&As about distributions received from a trustee/receiver.


Principal Reduction Alternative Under the Home Affordable Modification Program

Find the answers to your tax questions on the Principal Reduction Alternative under the Home Affordable Modification Program (HAMP), which was established by the Departments of the Treasury and Housing and Urban Development to help distressed homeowners lower their monthly mortgage payments. The Principal Reduction Alternative does not apply to loans that are owned or guaranteed by Fannie Mae or Freddie Mac.


Tax Scams

Don't fall victim to tax scams. Remember — if it sounds too good to be true, it probably is. If you know of a tax fraud, you can report it to the IRS by sending completed Form 3949-A, Information Referral, to Internal Revenue Service, Fresno, CA 93888. Download the form or call 1-800-829-3676 to order by mail.

For recent scams, see:

  • IR-2014-16, IRS Releases the “Dirty Dozen” Tax Scams for 2014; Identity Theft, Phone Scams Lead List
  • IR-2013-33, IRS Releases the Dirty Dozen Tax Scams for 2013
  • IR-2012-23, IRS Releases the Dirty Dozen Tax Scams for 2012
  • IR-2011-73, IRS Urges Taxpayers to Avoid Becoming Victims of Tax Scam
  • IR-2011-39, Don’t Fall Prey to the 2011 Dirty Dozen Tax Scams

Education is the best way to avoid the pitfalls of these “too good to be true” tax scams. For additional information, see:


Phishing Scams

The IRS does not send taxpayers unsolicited emails about their tax accounts, tax situations or personal tax issues. If you receive such an email, most likely it's a scam.

IRS impersonation schemes flourish during filing season. These schemes may take place via phone, fax, Internet sites, social networking sites and particularly email. 

Many impersonations are identity theft scams that try to trick victims into revealing personal and financial information that can be used to access their financial accounts. Some email scams contain attachments or links that, when clicked, download malicious code (virus) that infects your computer or direct you to a bogus form or site posing as a genuine IRS form or web site. 

Some impersonations may be commercial Internet sites that consumers unknowingly visit, thinking they're accessing the genuine IRS website, www.IRS.gov. However, such sites have no connection to the IRS.

For more information on scams and what to do if you're subject to one, see: 


Tax Avoidance Transactions

Read up on the IRS's campaign against abusive tax avoidance transactions. Taxpayers with unreported income relating to offshore transactions who wish to voluntarily disclose the information to the IRS can find information on the process.


Why Pay Taxes? The Truth about Frivolous Tax Arguments

The Truth About Frivolous Tax Arguments (PDF 405K) addresses some of the more common false "legal" arguments made by individuals and groups who oppose compliance with the federal tax laws. These arguments are grouped under six general categories, with variations within each category. Each contention is briefly explained, followed by a discussion of the legal authority that rejects the contention. The second section deals with frivolous arguments encountered in collection due process cases. The final section illustrates penalties imposed on those pursuing frivolous cases.

 

Page Last Reviewed or Updated: 28-Mar-2014

The 1040ez Income Tax Form

1040ez income tax form 15. 1040ez income tax form   Examination and Appeal Procedures If your excise tax return is examined and you disagree with the findings, you can get information about audit and appeal procedures from Publication 556, Examination of Returns, Appeal Rights, and Claims for Refund. 1040ez income tax form An unagreed case involving an excise tax covered in this publication differs from other tax cases in that you can only contest it in court after payment of the tax by filing suit for a refund in the United States District Court or the United States Court of Federal Claims. 1040ez income tax form Prev  Up  Next   Home   More Online Publications