Form 8275 - Disclosure Statement

Article ID: 58975  

Form 8275 - Disclosure Statement

Form 8275 is used by taxpayers and tax return preparers to disclose items or positions, except those taken contrary to a regulation, that are not otherwise adequately disclosed on a tax return to avoid certain penalties. The form is filed to avoid the portions of the accuracy-related penalty due to disregard of rules or to a substantial understatement of income tax for non-tax shelter items if the return position has a reasonable basis. It can also be used for disclosures relating to preparer penalties for understatements due to unreasonable positions or disregard of rules.
Caution: The portion of the accuracy-related penalty attributable to the following types of misconduct cannot be avoided by disclosure on Form 8275:
  • Negligence
  • Disregard of regulations
  • Any substantial understatement of income tax on a tax shelter item.
  • Any substantial valuation misstatement under chapter 1.
  • Any substantial overstatement of pension liabilities.
  • Any substantial estate or gift tax valuation understatements.
For more information see IRS Instructions for Form 8275.

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