This entails attaching Form 8275
, Disclosure Statement, to the return.
In the absence of a Schedule UTP, and in the case of an item or position other than one that is contrary to a regulation, disclosure must be made on Form 8275
. If the position is contrary to a regulation, disclosure must be made on Form 8275-R.
A taxpayer who knowingly takes a position contrary to published IRS guidance may, however, want to file a Form 8275
with her return, as positions that have a reasonable basis and are adequately disclosed are not subject to substantial understatement penalties [IRC section 6662(d)(2)(B)(ii); Treasury Regulations section 66624].
Consider disclosing certain return positions with Form 8275
, Disclosure Statement, or 8275-R, Regulation Disclosure Statement, where applicable.
If a position was disclosed in the return, either as set forth in an annual revenue procedure or on a Form 8275
or 8275-R, the preparer was not subject to penalty if the position was not frivolous.
Accordingly, a taxpayer may choose to disclose the abandonment loss on Form 8275
to minimize the imposition of possible penalties under I.R.C.
Alternatively, if the position has a reasonable basis, penalties can be avoided by disclosure on a Form 8275
, Disclosure Statement.
This additional disclosure is achieved only by completing Form 8275
, Disclosure Statement, Form 8275-R, Regulation Disclosure Statement, or Schedule UTP, Uncertain Tax Position Statement, which must be attached to the return.
In that case, he suggested using a Form 8275
to disclose and explain the gaps in the information and detail which information has been provided by the trustee.
A long-term trend demands more and more transparency from large taxpayers, they assert, citing as examples Form 8275
(see box on p.
He attached Form 8275
, Disclosure Statement, and wrote on it, without citing any particular case, that the Court of Appeals for the Eleventh Circuit had held that attorneys' fees were not taxable income.
Properly complete and file a disclosure Form 8275
or Form 8275R or disclose in the return in accordance with the annual revenue procedure described in Regs.