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IRS 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 and the economic substance penalty.

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
  • Any substantial valuation misstatement under chapter 1
  • Any substantial overstatement of pension liabilities
  • Any substantial estate or gift tax valuation understatements
  • Any claim of tax benefits from a transaction lacking economic substance (within the meaning of section 7701(o)) or failing to meet the requirements of any similar rule of law
  • Any otherwise undisclosed foreign financial asset understatement
See IRS Form 8275 Disclosure Statement and the IRS Instructions for Form 8275 for more information.

TaxAct does not support IRS Form 8275.  You must go to the IRS website at the links above to print and complete the form.

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