Instructions for IRS Form 8918 Material Advisor Disclosure Statement

IRS Form 8918 Material Advisor Disclosure Statement

This document contains official instructions for IRS Form 8918 , Material Advisor Disclosure Statement - a tax form released and collected by the Internal Revenue Service (IRS), a subdivision of the U.S. Department of the Treasury. An up-to-date fillable IRS Form 8918 is available for download through this link.

FAQ

Q: What is Form 8918?
A: Form 8918 is the Material Advisor Disclosure Statement used to report certain information regarding material advisors to reportable transactions.

Q: Who is required to file Form 8918?
A: Material advisors who are involved in reportable transactions are required to file Form 8918.

Q: What is a material advisor?
A: A material advisor is a person who provides material advice with respect to organizing, managing, promoting, selling, implementing, or carrying out any reportable transaction.

Q: What is a reportable transaction?
A: A reportable transaction is a transaction that is identified by the IRS as a transaction of interest or a transaction that has a potential for tax avoidance or evasion.

Q: What information needs to be reported on Form 8918?
A: Form 8918 requires material advisors to disclose specific information about reportable transactions, including the identities of the parties involved and the tax benefits expected from the transaction.

Q: When is Form 8918 due?
A: Form 8918 is due on the date the material advisor becomes a material advisor with respect to the reportable transaction.

Q: How do I file Form 8918?
A: Form 8918 should be filed electronically through the IRS e-file system or by mail to the address provided in the instructions.

Q: What are the penalties for not filing Form 8918?
A: The penalties for not filing Form 8918 can be substantial, including monetary penalties and potential criminal penalties.