Instructions for Form 8918

(Rev. November 2021)

Material Advisor Disclosure Statement

Department of the Treasury

Internal Revenue Service

Section references are to the Internal Revenue 

Code unless otherwise noted.

What's New

To more quickly and accurately process 

information submitted to IRS, IRS is 

incorporating 2D Barcode technology and 

providing faster, more convenient 

submission channels like electronic fax. 

Form 8918 has been redesigned with 2D 

Barcodes placed on Page 4, which will be 

submitted with the rest of the form. 2D 

Barcodes are capable of capturing a vast 

amount of information, relieving material 

advisors of the need to submit 

attachments to ensure all required 

information is provided. Faster processing 

reduces the turnaround time for a material 

advisor to receive a reportable transaction 

number in response.

As a new practice, IRS will reject all 

Forms 8918 filed incorrectly. Please 

follow the below instructions to avoid 

form rejection:

• Only the specified current version of 

Form 8918 will be accepted:

• 2007, 2011, 2017, and 2021 versions 

will be accepted until or on June 1, 2022.

• Only 2021 version will be accepted 

after June 1, 2022.

• Form must not be handwritten.

• All instances of "See Attached" MUST 

be preceded with as much information as 

the text box will allow.

See Where To File for more information 

on submitting Form 8918 through 

electronic fax.

The IRS has created a page on 

IRS.gov for information about Form 8918 

and its instructions, at IRS.gov/Form8918. 

Information about any future 

developments affecting Form 8918 (such 

as legislation enacted after we release it) 

will be posted on that page.

Form 8918. Use the latest revision of 

Form 8918 available on IRS.gov.

General Instructions

Purpose of Form

Material advisors to any reportable 

transaction must disclose certain 

information about the reportable 

transaction by filing a Form 8918 with the 

IRS.

Note. Form 8918 replaces Form 8264, 

Application for Registration of a Tax 

Shelter.

Material advisors who file a Form 8918 

will receive a reportable transaction 

number from the IRS. Material advisors 

must provide the reportable transaction 

number to all taxpayers and material 

advisors for whom the material advisor 

acts as a material advisor. See Who Is a 

Material Advisor below. Every taxpayer 

who has participated in a reportable 

transaction (see What Is a Reportable 

Transaction, later) must also disclose the 

transaction on Form 8886, Reportable 

Transaction Disclosure Statement. For 

more information, see Form 8886 and the 

Instructions for Form 8886.

Who Must File?

Generally, every material advisor to a 

reportable transaction is required to file 

Form 8918. A material advisor can be an 

individual, trust, estate, partnership, or 

corporation. You are not required to file 

Form 8918 unless a taxpayer to whom or 

for whose benefit you provided the tax 

statement (defined below) entered into the 

reportable transaction. If you provide a tax 

statement to another material advisor, you 

are not required to file Form 8918 unless 

the reportable transaction is entered into 

by a taxpayer to whom or for whose 

benefit that material advisor provided the 

tax statement.

Who Is a Material Advisor?

You are a material advisor to a transaction 

if you:

• Provide any material aid, assistance, or 

advice with respect to the organizing, 

managing, promoting, selling, 

implementing, insuring, or carrying out any 

reportable transaction, and

• You directly or indirectly receive or 

expect to receive gross income in excess 

of the threshold amount (defined below) 

for the material aid, assistance, or advice.

You provide material aid, assistance, or 

advice with respect to the organizing, 

managing, promoting, selling, 

implementing, insuring, or carrying out any 

transaction if you make or provide a tax 

statement to or for the benefit of:

• A taxpayer who either is required to 

disclose the transaction under section 

6011 because the transaction is a listed 

transaction or a transaction of interest, or 

would have been required to disclose the 

transaction under section 6011 if the 

transaction had become a listed 

transaction or a transaction of interest 

within the period of limitations;

• A taxpayer who you know is or 

reasonably expect to be required to 

disclose the transaction under 

Regulations section 1.6011-4 because the 

transaction is or is reasonably expected to 

become a reportable transaction other 

than a listed transaction or transaction of 

interest;

• A material advisor who is required to 

disclose the transaction under section 

6111 because the transaction is a listed 

transaction or a transaction of interest; or

• A material advisor who you know is or 

reasonably expect to be required to 

disclose the transaction under section 

6111 because the transaction is or is 

reasonably expected to become a 

reportable transaction other than a listed 

transaction or transaction of interest.

Tax statement. Generally, a tax 

statement is any statement (including 

another person's statement), oral or 

written, that relates to a tax aspect of a 

transaction that causes the transaction to 

be a reportable transaction. A tax 

statement includes tax result protection 

that insures some or all of the tax benefits 

of a reportable transaction.

Tax result protection Tax result 

protection includes insurance company 

and other third party products commonly 

described as tax result insurance. For 

more information, see Regulations 

sections 301.6111-3(b)(2)(ii)(A) and 

301.6111–3(c)(12).

Threshold amount. The threshold 

amount of gross income is $50,000 for a 

reportable transaction that provides 

substantially all of the tax benefits to 

individuals (looking through any 

partnerships, S corporations, or trusts). 

The determination of whether substantially 

all of the tax benefits from a reportable 

transaction are provided to individuals is 

based on all the facts and circumstances. 

Generally, if 70% or more of the tax 

benefits (defined later) from a reportable 

transaction are provided to individuals 

(looking through any partnerships, S 

corporations, or trusts) then substantially 

all of the tax benefits will be considered to 

be provided to individuals.

For all other transactions, the threshold 

amount is $250,000. For listed 

transactions, the threshold amounts are 

reduced from $50,000 to $10,000 and 

from $250,000 to $25,000. For 

transactions of interest, the threshold 

amounts may be reduced as identified in 

the published guidance describing the 

transaction. Determine the threshold 

amount separately for each reportable 

Dec 07, 2021 Cat. No. 50150N
transaction. The threshold amount must 

be met independently for each transaction 

that is a reportable transaction and 

aggregation of fees among reportable 

transactions is not required.

In figuring the amount of gross income 

you receive directly, or indirectly, for 

material aid, assistance, or advice, include 

all the following.

• Fees for a tax strategy.

• Fees for advice (whether or not tax 

advice).

• Fees for implementing the reportable 

transaction.

Fees. Fees include consideration in 

whatever form paid, whether in cash or in 

kind, for:

• Services to analyze the transaction 

(whether or not related to the tax 

consequences of the transaction),

• Services to implement the transaction,

• Services to document the transaction, 

and

• Services to prepare tax returns to the 

extent return preparation fees are 

unreasonable.

A fee does not include amounts paid to 

a person, including an advisor, in that 

person's capacity as a party to the 

transaction. For example, a fee does not 

include reasonable charges for the use of 

capital or the sale or use of property.

The IRS will scrutinize carefully all of 

the facts and circumstances to determine 

if consideration received or expected to be 

received in connection with a reportable 

transaction is gross income received 

directly, or indirectly, for aid, assistance, 

or advice.

Employee exception. Generally, you are 

not considered to be a material advisor if 

you make a tax statement solely in your 

capacity as an employee, shareholder, 

partner, or agent of another person. In this 

case, any tax statement you make will be 

considered to be made by your employer, 

corporation, partnership, or principal.

However, you will be treated as a 

material advisor if you form or use an 

entity to avoid the rules of section 6111 or 

6112 or the penalties under section 6707 

or 6708.

Date you became a material advisor. 

You are a material advisor when all of the 

following have occurred (in no particular 

order).

• You make a tax statement,

• You receive (or expect to receive) gross 

income in excess of the threshold amount, 

and

• The transaction is entered into by the 

taxpayer to whom or for whose benefit you 

provided the tax statement, or in the case 

of a tax statement provided to another 

material advisor, when the transaction is 

entered into by a taxpayer to whom or for 

whose benefit that material advisor 

provided a tax statement.

If a transaction that was not a 

reportable transaction is identified as a 

listed transaction or a transaction of 

interest in published guidance after the 

occurrence of the 3 events described 

above, you will be treated as becoming a 

material advisor on the date the 

transaction is identified as a listed 

transaction or a transaction of interest.

You must make reasonable and good 

faith efforts to determine when the 

taxpayer entered into the transaction, 

even if you stop providing services before 

the taxpayer enters into the transaction.

Post-filing advice. You are not 

considered to be a material advisor 

concerning a transaction if you do not 

make or provide a tax statement about the 

transaction until after the first tax return 

reflecting tax benefit(s) of the transaction 

is filed with the IRS. This exception does 

not apply to you if it is expected the 

taxpayer will file a supplemental or 

amended return reflecting additional tax 

benefits from the transaction.

Definitions

Transaction

A transaction includes all factual elements 

relevant to the expected tax treatment of 

an investment, entity, plan, or 

arrangement and it includes any series of 

steps carried out as part of a plan.

Substantially Similar

A transaction is substantially similar to 

another transaction if it is expected to 

obtain the same or similar types of tax 

consequences and is either factually 

similar or based on the same or similar tax 

strategy.

Receipt of an opinion regarding the tax 

consequences of the transaction is not 

relevant to determine if the transaction is 

the same as or substantially similar to 

another transaction. The term 

substantially similar must be broadly 

construed in favor of disclosure. See 

Regulations section 1.6011-4(c)(4) for 

examples.

Tax Benefit

A tax benefit includes deductions, 

exclusions from gross income, 

nonrecognition of gain, tax credits, 

adjustments (or the absence of 

adjustments) to the basis of property, 

status as an entity exempt from federal 

income taxation, and any other tax 

consequences that may reduce a 

taxpayer's federal tax liability by affecting 

the amount, timing, character, or source of 

any item of income, gain, expense, loss, 

or credit.

What Is a Reportable 

Transaction?

A reportable transaction is a transaction 

described in one or more of the following 

categories. See Regulations section 

1.6011-4(b) for more information.

Listed Transactions

A listed transaction is a transaction that is 

the same as or substantially similar to one 

of the types of transactions that the IRS 

has determined to be a tax avoidance 

transaction.

These transactions are identified by 

notice, regulation, or other form of 

published guidance as a listed 

transaction. See Notice 2009-59 for 

guidance.

Go to IRS.gov/Businesses/

Corporations/Abusive-Tax-Shelters-AndTransactions for the latest information and 

guidance.

Confidential Transactions

A confidential transaction is a transaction 

that is offered to a taxpayer or related 

party (as described in section 267(b) or 

707(b)) under conditions of confidentiality 

and for which the taxpayer (or related 

party) paid an advisor a minimum fee 

(defined below).

A transaction is considered to be 

offered under conditions of confidentiality 

if the advisor who is paid a minimum fee 

places a limitation on the disclosure of the 

tax treatment or tax structure of the 

transaction and the limitation on 

disclosure protects the confidentiality of 

the advisor's tax strategies. The 

transaction is treated as confidential even 

if the conditions of confidentiality are not 

legally binding on the taxpayer. See 

Regulations section 1.6011-4(b)(3) for 

more information.

Minimum fee. For a corporation 

(excluding S corporations), or a 

partnership or trust in which all of the 

owners or beneficiaries are corporations 

(excluding S corporations), the minimum 

fee is $250,000. For all others, the 

minimum fee is $50,000.

The minimum fee includes all fees for a 

tax strategy, for advice (whether or not tax 

advice), or for the implementation of a 

transaction. Fees include payment in 

whatever form paid, whether in cash or in 

kind, for services to analyze the 

transaction (whether or not related to the 

tax consequences of the transaction), for 

services to implement the transaction, for 

services to document the transaction, and 

for services to prepare tax returns to the 

extent return preparation fees are 

unreasonable. A taxpayer is treated as 

-2- Instructions for Form 8918 Rev. 11-2021
paying fees to an advisor if the taxpayer 

knows or should know that the amount it 

pays will be paid indirectly to the advisor, 

such as through a referral fee or 

fee-sharing arrangement. Fees do not 

include amounts paid to a person, 

including an advisor, in that person's 

capacity as a party to the transaction. The 

IRS will scrutinize all of the facts and 

circumstances in determining whether 

consideration received in connection with 

a confidential transaction constitutes fees. 

For purposes of determining the minimum 

fee, related parties (as described in 

section 267(b) or 707(b)) will be treated as 

the same individual or entity.

Transactions With Contractual 

Protection

A transaction with contractual protection is 

a transaction for which the taxpayer, or a 

related party (as described in sections 

267(b) or 707(b)), has the right to a full 

refund or partial refund of fees if all or part 

of the intended tax consequences from 

the transaction are not sustained. It also 

includes a transaction for which fees are 

contingent on the taxpayer's realization of 

tax benefits from the transaction. See 

Regulations section 1.6011-4(b)(4) and 

Rev. Proc. 2007-20 for the latest 

information and guidance.

Loss Transactions

A loss transaction is a transaction that 

results in the taxpayer claiming a loss 

under section 165 (described later) if the 

amount of the section 165 loss is as 

follows.

• For individuals, at least $2 million in any 

single tax year or $4 million in any 

combination of tax years. (At least 

$50,000 for a single tax year if the loss 

arose from a section 988 transaction 

defined in section 988(c)(1) (relating to 

foreign currency transactions), whether or 

not the loss flows through from an S 

corporation or partnership).

• For corporations (excluding S 

corporations), at least $10 million in any 

single tax year or $20 million in any 

combination of tax years.

• For partnerships with only corporations 

(excluding S corporations) as partners 

(looking through any partners that are also 

partnerships), at least $10 million in any 

single tax year or $20 million in any 

combination of tax years, whether or not 

any losses flow through to one or more 

partners.

• For all other partnerships and S 

corporations, at least $2 million in any 

single tax year or $4 million in any 

combination of tax years, whether or not 

any losses flow through to one or more 

partners or shareholders.

• For trusts, at least $2 million in any 

single tax year or $4 million in any 

combination of tax years, whether or not 

any losses flow through to one or more 

beneficiaries. (At least $50,000 for a single 

tax year if the loss arose from a section 

988 transaction defined in section 988(c)

(1) (relating to foreign currency 

transactions), whether or not the loss 

flows through from an S corporation or 

partnership).

Section 165 loss. For this purpose, a 

section 165 loss is adjusted for any 

salvage value and for any other insurance 

compensation received. However, a 

section 165 loss does not include 

offsetting gains, other income or 

limitations. The full amount of a section 

165 loss is included in the year it occurred, 

regardless of whether all or part of it is 

included in computing a net operating loss 

(under section 172) or a net capital loss 

(under section 1212) that is a carryback or 

carryover to another year. A section 165 

loss does not include any portion of a loss 

attributable to a capital loss carryback or 

carryover from another year that is treated 

as a deemed capital loss under section 

1212.

To determine if a transaction results in 

a taxpayer claiming a loss that meets the 

threshold amounts over a combination of 

tax years, only losses claimed in the tax 

year the transaction is entered into and the 

5 succeeding tax years are combined.

The types of losses included in this 

category are section 165 losses (including 

amounts deductible under a provision that 

treats a transaction as a sale or other 

disposition or otherwise results in a 

deduction under section 165). However, 

this category does not include losses 

described in Rev. Proc. 2013-11 (or future 

published guidance).

Transactions of Interest

A transaction of interest is a transaction 

that is the same as or substantially similar 

to one of the types of transactions that the 

IRS has identified by notice, regulation, or 

other form of published guidance as a 

transaction of interest. It is a transaction 

that the IRS and Treasury Department 

believe has a potential for tax avoidance 

or evasion, but for which there is not 

enough information to determine if the 

transaction should be identified as a tax 

avoidance transaction. The requirement to 

disclose transactions of interest applies to 

transactions of interest entered into after 

November 1, 2006. See Notice 2009-55, 

Notice 2016-66, and Notice 2017-08 for 

the latest information and guidance. The 

IRS may issue a new or update an existing 

notice, regulation, or other form of 

guidance that identifies a transaction as a 

transaction of interest.

Eliminated Categories

 

Transactions with a brief asset holding 

period. The disclosure requirement for 

this category has been eliminated for 

transactions entered into after August 2, 

2007. However, this does not relieve 

taxpayers of any disclosure obligations for 

brief asset holding transactions that were 

entered into before August 3, 2007. The 

rules for brief asset holding period 

reportable transactions entered into 

before August 3, 2007, are contained in 

Regulations section 1.6011-4 in effect 

prior to August 3, 2007.

Transactions with a significant 

book-tax difference. The disclosure 

requirement for this category has been 

eliminated. Transactions with a significant 

book-tax difference that would have been 

required to be disclosed with returns due 

on dates (including extensions) after 

January 5, 2006, are no longer reportable 

transactions.

However, this does not relieve 

taxpayers of any disclosure obligations for 

significant book-tax difference 

transactions that should have been 

disclosed on a return with a due date prior 

to January 6, 2006. See Notice 2006-06.

Exceptions to Reportable 

Transaction Categories, Published 

Guidance

A transaction is not considered a 

reportable transaction if the IRS makes a 

determination in published guidance that it 

is not subject to the reporting 

requirements. For more information, see 

the following.

• Rev. Proc. 2004-67;

• Rev. Proc. 2004-68;

• Rev. Proc. 2007-20; and

• Rev. Proc. 2013-11.

The IRS may also determine by 

individual letter ruling that an individual 

letter ruling request satisfies the reporting 

requirements. See Request for Ruling 

below for more details on submitting a 

letter ruling request.

Request for Ruling

You may request a ruling from the IRS to 

determine whether a specific transaction 

is a reportable transaction. The potential 

obligation of a material advisor and the 

taxpayer to disclose the transaction will 

not be suspended during the period that 

the ruling request is pending. Therefore, 

even if you have a ruling request with the 

IRS, you must still complete and file this 

form in order to avoid potential penalties. 

See Rev. Proc. 2017-1 for information on 

ruling requests.

Instructions for Form 8918 Rev. 11-2021 -3-
When To File

The material advisor's disclosure 

statement must be filed with the Office of 

Tax Shelter Analysis (OTSA) by the last 

day of the month that follows the end of 

the calendar quarter in which the advisor 

became a material advisor with respect to 

the reportable transaction or in which 

circumstances occur to require an 

amended disclosure statement. See Date 

you became a material advisor., earlier.

Where To File

For electronic fax (only to be used for 

Form 8918 and related attachments; 

other items will not be processed): 

please fax to: 1-844-253-5607 (this is 

toll-free). The fax cover sheet should 

include the following:

• Subject: Form 8918

• Sender's name, title, phone number, 

street address

• Material Advisor’s name

• Date

• Number of pages faxed (including 

cover sheet)

Do not include sensitive information on 

the cover sheet, such as Employer 

Identification Number or Social Security 

Number.

Fax may not exceed 100 pages.

If you do not have access to electronic 

fax, mail your completed Form 8918 to:

Internal Revenue Service

OTSA Mail Stop 4915

1973 Rulon White Blvd.

Ogden, Utah 84201

A receipt will be provided confirming 

form submission.

Furnishing a Reportable 

Transaction Number

Receipt of a reportable transaction 

number does not indicate that the IRS has 

reviewed, examined, or approved the 

transaction.

Material advisors must provide the 

reportable transaction number to all 

taxpayers and material advisors for whom 

the material advisor acts as a material 

advisor. The reportable transaction 

number must be provided when the 

transaction is entered into, or, if the 

transaction is entered into before the 

material advisor received the reportable 

transaction number, within 60 calendar 

days from the date the reportable 

transaction number is mailed to the 

material advisor.

Requirement to Keep Lists

Generally, a material advisor must 

maintain a list identifying each entity or 

individual to whom the advisor was a 

material advisor to a reportable 

transaction. A material advisor is not 

required to identify an entity or individual 

on the list if the entity or individual entered 

into a listed transaction or a transaction of 

interest more than 6 years before the 

transaction was identified in published 

guidance as a listed transaction or a 

transaction of interest. A separate list must 

be prepared and maintained for each 

transaction or group of substantially 

similar transactions.

The list must be maintained for 7 years 

following the earlier of the date on which 

the material advisor last made a tax 

statement relating to the transaction, or 

the date the transaction was last entered 

into, if known. Upon IRS's written request, 

each material advisor who is responsible 

for maintaining a list must furnish the list to 

the IRS. The list must be maintained in a 

form that enables the IRS to determine 

without undue delay or difficulty the 

information required to be maintained for 

each list. See Regulations section 

301.6112-1 for more information.

Note. Go to IRS.gov/Businesses/

Corporations/Abusive-Tax-Shelters-AndTransactions for the latest information and 

guidance.

Contents of the list. Each list must 

contain the following.

1. An itemized statement containing:

a. The name of each reportable 

transaction, the citation to the notice 

number or published guidance number 

identifying the transaction if the 

transaction is a listed transaction or 

transaction of interest, and the reportable 

transaction number obtained under 

section 6111;

b. The name, address, and identifying 

number of each individual or entity 

required to be included on the list;

c. The date on which each individual 

or entity entered into the reportable 

transaction, if known;

d. The amount invested in the 

reportable transaction by each individual 

or entity, if known;

e. A summary or schedule of the tax 

treatment that each individual or entity is 

intended or expected to derive from 

participation in the reportable transaction; 

and

f. The name of each other material 

advisor to the transaction, if known.

2. A detailed description of the 

reportable transaction that describes both 

the tax structure and the purported tax 

treatment.

3. A copy of any designation 

agreement to which the material advisor is 

a party. See Line 5 for more information.

4. Copies of any additional written 

materials, including tax analyses or 

opinions, relating to each reportable 

transaction that are material to an 

understanding of the intended tax 

treatment or tax structure of that 

transaction that the material advisor or any 

related party or agent of the material 

advisor has shown or provided to any 

individual or entity (or to their 

representatives, tax advisors, or agents) 

who acquired or may acquire an interest in 

the transaction. However, you are not 

required to retain earlier drafts of a 

document if you retain a copy of the final 

document (or, if there is no final 

document, the most recent draft of the 

document) and the final document (or 

most recent draft) contains all the 

information in the earlier drafts of such 

document that is material to an 

understanding of the purported tax 

treatment or the tax structure of the 

transaction.

Dissolution or liquidation of material 

advisor. Generally, if a material advisor 

dissolves or liquidates before completion 

of the 7-year list maintenance period, the 

person responsible under state law for 

winding up the entity's affairs must 

prepare, maintain, and furnish each 

component of the list on behalf of the 

entity, unless the entity submits the list to 

OTSA within 60 days after the dissolution 

or liquidation. See Regulations section 

301.6112-1(d) for more information.

Penalties

Penalty for Failure To Furnish 

Information Regarding Reportable 

Transactions

A penalty may be imposed if you are 

required to file Form 8918 and you fail to 

file the return on or before the due date, or 

file false or incomplete information about a 

reportable transaction.

The penalty is $50,000 for reportable 

transactions other than listed transactions. 

The penalty imposed for listed 

transactions is the greater of:

• $200,000, or

• 50 percent of the gross income from 

providing aid, assistance, or advice about 

the listed transaction before the date the 

return is filed. If the failure is intentional, 

the percentage is 75%.

For more information, see section 

6707. Form 8918 must be completed in its 

entirety with all required attachments to be 

considered complete. Stating that 

“Information will be provided upon 

request” or that “Details are available upon 

request,” or any similar statement in the 

space provided, is not considered a 

description and may cause your 

disclosure statement to be treated as 

incomplete.

-4- Instructions for Form 8918 Rev. 11-2021
Note. See Rev. Proc. 2007-21, 

superseded by T.D. 9686 and updated by 

Announcement 2016-01. See Regulations 

section 301.6707-1 for more information.

Penalty for Failure To Maintain 

Required Lists

Any person who is required to maintain a 

list and fails to make the list available 

within 20 business days of an IRS written 

request must pay a penalty of $10,000 for 

each day of the failure after the 20th 

business day. The penalty may be 

assessed for failure to maintain the list in a 

form that enables the IRS to determine 

without undue delay or difficulty the 

information required.

Other Penalties

Section 6700 imposes penalties for 

promoting abusive tax shelters and related 

activities.

Section 6701 imposes penalties for 

aiding and abetting an understatement of 

tax liability.

Section 7203 imposes penalties for the 

willful failure to file a return, supply 

information, or pay tax.

Section 7206 imposes penalties for 

tax-related fraud and false statements.

Section 7207 imposes penalties for 

submitting fraudulent returns, statements, 

or other documents.

Specific Instructions

How To Complete Form 8918

In order to be considered complete, Form 

8918 must be completed and submitted in 

its entirety. To be considered complete, 

the information provided on the form must 

describe the expected tax treatment and 

all potential tax benefits expected to result 

from the transaction, describe any tax 

result protection with respect to the 

transaction, and identify and describe the 

transaction in sufficient detail for the IRS 

to be able to understand the tax structure 

of the reportable transaction. A Form 

8918 containing a statement that 

information will be provided upon 

request is not considered a complete 

disclosure statement.

There are two ways to speed up the 

processing of Form 8918:

1. by thoroughly providing all required 

information upon initial submission, and

2. by providing all information within 

the form itself, rather than through 

attachments.

To help with this, Form 8918 has been 

redesigned to accommodate more 

information within the form itself (including 

line 13), rendering attachments less 

necessary. If, however, the information 

you wish to provide exceeds the 

expanded space provided, complete as 

much information as possible in the 

available space and attach the remaining 

information on additional sheets. 

Attachments must adhere to the following 

guidelines:

• Do not write “See Attached” on the 

form and provide all the information 

on an attached statement.

• The additional sheets must be in the 

same order as the lines to which they 

correspond.

• You must include your name and 

identifying number at the top of each 

additional sheet.

Material Advisor Identifying 

Information

Individuals. If the material advisor is an 

individual, enter the first name, middle 

initial (if any), and last name; the social 

security number; the phone number; and 

the complete address.

Entities. If the material advisor is an 

entity, enter the full name of the entity as 

shown on its income tax return, the 

employer identification number, and the 

complete address. See Item A for contact 

information.

Item A

Contact information. If the material 

advisor is an entity, list the name of a 

contact person along with a contact 

telephone number. If the material advisor 

is an individual, you may disregard this 

line.

Item B

Protective disclosure. Indicate if you 

are filing on a protective basis by checking 

the appropriate box. If you are uncertain if 

a transaction must be disclosed, check the 

“Yes” box and disclose the transaction in 

accordance with these instructions.

On line 6a, you must explain why you 

are filing the disclosure on a protective 

basis. Generally, the IRS will not treat 

disclosure statements filed on a protective 

basis any differently than other disclosure 

statements filed on Form 8918. An 

incomplete form containing a statement 

that information will be provided on 

request is not a complete disclosure 

statement. For a protective disclosure to 

be effective, you must properly complete 

Form 8918 and provide all required 

information. See How To Complete Form 

8918, earlier, for more information.

Item C

Answer “Yes” if this is the original Form 

8918 for this reportable transaction. If this 

is an amendment to a previously filed 

Form 8918 for the reportable transaction, 

answer “No” and enter the reportable 

transaction number previously provided 

for the reportable transaction by the IRS.

Amended statement. An amended 

statement must be filed if information 

previously provided is no longer accurate, 

if additional information that was not 

disclosed becomes available, or if there 

are material changes to the transaction.

Line 1

Enter the name, if any, by which the 

transaction is known or commonly referred 

to by either yourself or published 

guidance. If no name exists, provide a 

short identifying description of this 

transaction that distinguishes it from other 

reportable transactions in which you have 

participated (or may participate in the 

future). Do not report more than one 

transaction on this form unless the 

transactions are the same or substantially 

similar. See Substantially Similar, earlier.

Line 2

Check the box(es) for all categories that 

apply to the transaction being reported. 

The reportable transaction categories are 

described under What Is a Reportable 

Transaction, earlier.

If the transaction is a listed 

transaction, you must check the 

listed transaction box in addition 

to any others that apply.

Line 3

Identify the notice, revenue ruling, 

regulation (for example, Notice 2003-81, 

modified and supplemented by Notice 

2007-71), announcement, or other 

published guidance that identified the 

transaction as a listed transaction or 

transaction of interest. For listed 

transactions, identify the guidance as 

shown in Notice 2009-59 or later IRS 

guidance.

Line 4

Enter the latest of the following dates.

• The date you made a tax statement with 

regard to the transaction.

• The date you received or had an 

expectation that you would receive gross 

income in excess of the threshold amount 

(defined earlier).

• The date the transaction was entered 

into by the taxpayer.

• The date the transaction became a 

listed transaction or transaction of interest.

The latest of these dates is the date you 

became a material advisor. See Date you 

became a material advisor, earlier.

Line 5

If more than one material advisor is 

required to disclose a reportable 

transaction under this section, the material 

advisors may designate by written 

agreement a single material advisor to 

CAUTION

!

Instructions for Form 8918 Rev. 11-2021 -5-
disclose the transaction. The transaction 

must be disclosed by the last day of the 

month following the end of the calendar 

quarter that includes the earliest date on 

which a material advisor who is a party to 

the agreement became a material advisor 

to the transaction.

The designation of one material 

advisor to disclose the transaction 

does not relieve the other material 

advisors of the obligation to disclose the 

transaction to the IRS in accordance with 

these instructions, if the designated 

material advisor fails to disclose the 

transaction to the IRS in a timely manner.

Line 6a

Provide a concise statement indicating 

your role as a material advisor to this 

transaction. See Who Is a Material 

Advisor, earlier. If you are filing a 

protective disclosure, you must explain 

why you believe you are not a material 

advisor. If you need more space, follow 

the instructions under How To Complete 

Form 8918, earlier.

Lines 7a and 7b

Check the box(es) for all categories that 

apply to the transaction being reported. 

Indicate the related parties that are 

needed and how they are related. Indicate 

the role of tax-exempt entities if they are 

required for the transaction. In addition, if 

a foreign entity is required, indicate how 

and why the foreign entity is used, along 

with which country is used if a particular 

country is required for the transaction. If 

you need more space, follow the 

instructions under How To Complete Form 

8918, earlier.

CAUTION

!

Line 9

Identify the types of financial instruments 

required by the transaction (loan, stocks, 

bonds, notes, original issue discounts, 

domestic and foreign currency 

agreements, swaps, futures, notional 

principal contracts, options, input or risk 

hedges, etc.). If you need more space, 

follow the instructions under How To 

Complete Form 8918, earlier.

Line 10

Check all the boxes that apply for the tax 

benefits expected from the transaction. A 

tax benefit includes deductions, 

exclusions from gross income, 

nonrecognition of gain, tax credits, 

adjustments (or the absence of 

adjustments) to the basis of property, 

status as an entity exempt from federal 

income taxation, and any other tax 

consequences that may reduce a 

taxpayer's federal tax liability by affecting 

the amount, timing, character, or source of 

any item of income, gain, expense, loss, 

or credit. Check the “Other” box for tax 

benefits not specifically described by a 

box and identify the tax benefit(s) in the 

space provided. If you need more space, 

follow the instructions under How To 

Complete Form 8918, earlier.

Line 13

Describe all of the relevant facts about the 

reportable transaction including the 

following.

1. Tax benefits causing the 

transaction to be reportable.

2. Years affected by the transaction.

3. Steps of the transaction including:

a. Agreements.

b. Property transfers and acquisitions.

c. Liability assumptions.

d. Obligation fulfillment.

e. Sales.

f. Entity formation or dissolution.

g. Other relevant events. Other 

relevant events may include but are not 

limited to tax result protection. Tax result 

protection includes insurance company 

and other third party products commonly 

described as tax result insurance.

4. Nature of the transaction (cash, 

loan, service, other).

5. Purpose of each step in 

accomplishing the tax benefits and 

consequences.

6. Where and how each party to the 

transaction (entered on lines 7a, 7b, and 

8a and 8b) is used, including their roles.

7. The economic and business 

reasons for the transaction and its 

structure (describe market or business 

conditions creating the tax benefit or 

consequence and its financial reporting, if 

known).

8. How the financial instruments 

(entered on line 9) are used in the 

transaction.

9. How the Internal Revenue Code 

sections (entered on line 12) enable you to 

obtain the tax treatment.

If you need more space, follow the 

instructions under How To Complete Form 

8918, earlier.

Privacy Act and Paperwork Reduction Act Notice. We ask for the information on this form to carry out the Internal Revenue laws 

of the United States. You are required to give us the information. We need it to ensure that you are complying with these laws. We may 

give the information to the Department of Justice and to other federal agencies, as provided by law. We may give it to cities, states, the 

District of Columbia, and U.S. commonwealths or possessions to carry out their tax laws. We may also disclose this information to 

other countries under a tax treaty, to federal and state agencies to enforce federal nontax criminal laws, or to federal law enforcement 

and intelligence agencies to combat terrorism. A penalty may be imposed if you are required to file this return and fail to file by the due 

date or provide incomplete or false information.

Our authority to ask for information is section 6111 and its regulations, which require you to file a return or statement with us with 

respect to any reportable transaction for which you are a material advisor. Your response is mandatory under these sections. Section 

6109 requires that you provide your identifying number on what you file. This is so we know who you are, and can process your return 

and other papers. You must fill in all parts of the tax form that apply to you.

You are not required to provide the information requested on a form that is subject to the Paperwork Reduction Act unless the form 

displays a valid OMB control number. Books or records relating to a form or its instructions must be retained as long as their contents 

may become material in the administration of any Internal Revenue law. Generally, tax returns and return information are confidential, 

as required by section 6103.

The time needed to complete and file this form will vary depending on individual circumstances. The estimated average time is:

Recordkeeping ............................................... 8 hr., 7 min.

Learning about the law or the form .................................... 3 hr., 4 min.

Preparing, copying, assembling, and sending the form to the IRS ................. 3 hr., 20 min.

Comments. Go to IRS.gov/UAC/Comment-On-Tax-Forms-And-Publications to provide any comments. You can also send your 

comments to the Internal Revenue Service, Tax Forms and Publications Division, 1111 Constitution Ave. NW, IR-6526, Washington, 

DC 20224. DO NOT SEND THE FORM TO THIS ADDRESS. Instead, see Where To File, earlier.

-6- Instructions for Form 8918 Rev. 11-2021