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New Mailing Addresses

Addresses for mailing certain forms have changed since the forms were last published. The new mailing 

addresses are shown below.

Mailing address for Forms 706‐A, 706‐GS(D), 706‐GS(T), 706‐NA, 706‐QDT, 8612, 8725, 8831, 8842, 8892, 

8924, 8928:

Department of the Treasury 

Internal Revenue Service Center 

Kansas City, MO 64999

Mailing address for Forms 2678, 8716, 8822-B, 8832, 8855:

Taxpayers in the States Below Mail the Form to This Address

Connecticut, Delaware, District of Columbia, Georgia, 

Illinois, Indiana,Kentucky, Maine, Maryland, 

Massachusetts, Michigan, New Hampshire, New Jersey, 

New York, North Carolina, Ohio, Pennsylvania, Rhode 

Island, South Carolina, Vermont, Virginia, West Virginia, 

Wisconsin

Department of the Treasury 

Internal Revenue Service Center 

Kansas City, MO 64999

Alabama, Alaska, Arizona, Arkansas, California, 

Colorado, Florida, Hawaii, Idaho, Iowa, Kansas, 

Louisiana, Minnesota, Mississippi, Missouri, Montana, 

Nebraska, Nevada, New Mexico, North Dakota, 

Oklahoma, Oregon, South Dakota, Tennessee, Texas, 

Utah, Washington, Wyoming

Department of the Treasury 

Internal Revenue Service Center 

Ogden, UT 84201

This update supplements these forms’ instructions. Filers should rely on this update for the changes described, 

which will be incorporated into the next revision of the forms’ instructions.
Form 8725

(Rev. December 2015)

Department of the Treasury 

Internal Revenue Service 

▶ Information about Form 8725 and its instructions is at www.irs.gov/form8725.

Date of initial receipt of greenmail . . . . . . . . . . . . . . . . . . . . . . ▶

Please 

Type 

or 

Print 

Name of person receiving greenmail Identifying number 

Number, street, and room or suite no. (If a P.O. box, see instructions.) 

City or town, province or state, country, and ZIP or foreign postal code 

A Enter the date you entered into the agreement to transfer the stock . . . . . . . . ▶

Enter the name of the corporation whose stock is being acquired from you ▶

Tax Computation (see instructions) 

Net sales price . . . . . . . . . . . . . . . . . . . . . . . . . . .

 (a) Date acquired (b) Number of shares (c) Cost or other basis 

a 

b 

c 

d 

e 

f Column (b) total . . . .

Column (c) total . . . . . . . . . . . . . . . . . . . . . . . . . . .

Gain. Subtract line 2g from line 1. If zero or less, enter -0- . . . . . . . . . . . . .

Other income . . . . . . . . . . . . . . . . . . . . . . . . . . .

Total gain and other income. Add lines 3 and 4. See instructions . . . . . . . . . . .

Tax. Multiply line 5 by 50% (.50) . . . . . . . . . . . . . . . . . . . . .

Less: Tax paid with Form 7004 . . . . . . . . . . . . . . . . . . . . . .

Tax due. Subtract line 7 from line 6. If zero or less, enter -0- . . . . . . . . . . . .

Overpayment. Subtract line 6 from line 7 . . . . . . . . . . . . . . . . . .

Under penalties of perjury, I declare that I have examined this return, including accompanying schedules and statements, and to the best of my knowledge and belief, it is 

true, correct, and complete. Declaration of preparer (other than taxpayer) is based on all information of which preparer has any knowledge. 

▲▲

Title (if any) 

Print/Type preparer’s name PTIN

Firm’s name ▶

Firm's address ▶

Firm's EIN ▶

Phone no.

Form 8725 (Rev. 12-2015) 
Form 8725 (Rev. 12-2015) Page 2 

General Instructions 

Section references are to the Internal 

Revenue Code. 

Future Developments

For the latest information about 

developments related to Form 8725 and 

its instructions, such as legislation 

enacted after they were published, go to 

www.irs.gov/form8725.

Purpose of Form 

Use Form 8725 to report and pay the 

50% excise tax imposed under section 

5881 on the gain or other income 

realized on the receipt of greenmail 

(defined below). Greenmail is considered 

received when the gain or other income 

is realized under your method of 

accounting regardless of whether the 

gain or other income is recognized. 

Definitions 

Greenmail. The term “greenmail” means 

any amount a corporation (or any person 

acting in concert with a corporation) 

pays to a shareholder to directly or 

indirectly acquire its stock if: 

1. The shareholder held the stock (as 

determined under section 1223) for less 

than 2 years before entering into the 

agreement to make the transfer, 

2. At some time during the 2-year 

period ending on the date of acquisition, 

the shareholder, any person acting in 

concert with the shareholder, or any 

person related to either of them (see 

Related person, later), made or 

threatened to make a public tender offer 

for stock of the corporation, and

3. The acquisition was made under an 

offer that was not made on the same 

terms to all shareholders.

Note. Payments made in connection 

with (or in transactions related to) an 

acquisition are treated as payments 

made for the acquisition of the stock. 

Indirect acquisition of stock. Stock is 

deemed to have been acquired indirectly 

by the issuing corporation if such stock 

is sold to an entity related to the issuing 

corporation (for example, a controlled 

subsidiary). 

Public tender offer. The term “public 

tender offer” means any offer to 

purchase or otherwise acquire stock or 

assets in a corporation if the offer was 

required to be filed or registered with any 

federal or state agency regulating 

securities. 

Related person. A person is considered 

related to another person if the 

relationship between such persons 

would result in losses disallowed under 

section 267 or 707(b). 

Who Must File 

You must file Form 8725 if you are liable 

for the excise tax on greenmail under 

section 5881. File a separate Form 8725 

for each agreement made to transfer 

stock. 

When To File 

File Form 8725 by the 90th day following 

receipt of any portion of the greenmail. If 

you need more time to file, use Form 

7004, Application for Automatic 

Extension of Time To File Certain 

Business Income Tax, Information, and 

Other Returns, by the due date of Form 

8725. Form 7004 does not extend the 

time for payment of tax. 

Where To File 

File Form 8725 at the following address: 

Internal Revenue Service Center 

Cincinnati, OH 45999

Rounding Off to Whole 

Dollars 

You may show money items on the 

return as whole dollars. To do so, drop 

any amount less than 50 cents and 

increase any amount from 50 cents 

through 99 cents to the next higher 

dollar. 

Amended Return 

To amend a previously filed Form 8725, 

file a corrected Form 8725 and write 

“Amended” at the top of the form. 

Attachments 

If more space is needed, attach separate 

sheets to Form 8725. Be sure to put your 

name and identifying number on each 

sheet. 

Signature 

See the instructions for the Signature 

section of your federal income tax return. 

Interest and Penalties 

Interest. Interest is charged on taxes not 

paid by the due date at a rate 

determined under section 6621. 

Late filing of return. A penalty of 5% a 

month or part of a month, up to a 

maximum of 25%, is imposed on the net 

amount due if Form 8725 is not filed 

when due. 

Late payment of tax. Generally, the 

penalty for not paying tax when due is 1⁄2 

of 1% of the unpaid amount, up to a 

maximum of 25%, for each month or 

part of a month the tax remains unpaid. 

The penalty is imposed on the net 

amount due. 

Specific Instructions 

Name and address. Enter the name 

shown on your most recently filed 

federal income tax return. Include the 

room, suite, apartment, or other unit 

number after the street address. If the 

Post Office does not deliver mail to the 

street address and the taxpayer has a 

P.O. box, show the box number instead 

of the street address. 

Identifying number. If you are an 

individual, enter your social security 

number. If you are a nonresident or 

resident alien and you do not have and 

are not eligible for a social security 

number, enter your individual taxpayer 

identification number (ITIN). Other filers 

should enter their employer identification 

number. 

Tax Computation 

Line 1. Enter the net proceeds received 

from the sale of the stock subject to the 

excise tax. 

Column 2(a). For each separate 

acquisition of stock subject to the excise 

tax, enter the date acquired (for

example, the trade date for stock traded 

on an exchange or over the counter). 

See section 1223 for special rules on 

determining the holding period of stock 

received in an exchange, for stock that 

has the same basis in whole or in part as 

it would have in the hands of another 

person, for stock subject to the “wash 

sale” rules of section 1091, etc. 

Column 2(c). The cost or other basis of 

stock is generally the cost of the stock 

plus purchase commissions. If you

inherited the stock, received it as a gift,

received it in a tax-free exchange, or reacquired stock in a “wash sale” 

transaction subject to the rules of 

section 1091, you may not be able to 

use the actual cash cost as the basis. If 

you do not use cash cost, attach an

explanation of your basis. Be sure to 

adjust your basis by subtracting all the 

nontaxable distributions you received 

before the sale. Also adjust your basis 

for any stock splits. For more 

information, see Pub. 551, Basis of 

Assets. 

Line 4. If you realized any other income 

that is subject to the excise tax, enter 

the amount of the income on line 4. 

Line 5. You must include the recognized 

portion of the amount on line 5 as 

income on your federal income tax 

return. 

Line 6. You may not claim a deduction

on your federal income tax return for the

amount shown on line 6. 

Line 7. If you filed Form 7004, enter the 

amount of tax paid, if any, when you filed 

that form. 

Line 8. You must pay the tax due in full 

when you file Form 8725. Make your

check or money order payable to the 

“United States Treasury.” Write your 

name, address, identifying number, and 

“Form 8725” on the check or money 

order. 

Line 9. The IRS will refund the amount 

on line 9 if you owe no other taxes. 
Form 8725 (Rev. 12-2015) Page 3 

Paid Preparer Use Only

A paid preparer must sign Form 8725 

and provide the information in the Paid 

Preparer Use Only section at the end of 

the form if the preparer was paid to 

prepare the form and is not an employee 

of the filing entity. The preparer must 

give you a copy of the form in addition to 

the copy to be filed with the IRS.

If you are a paid preparer, enter your 

Preparer Tax Identification Number 

(PTIN) in the space provided. Include 

your complete address. If you work for a 

firm, you also must enter the firm’s name 

and the EIN of the firm. However, you 

cannot use the PTIN of the tax 

preparation firm in place of your PTIN.

You can apply for a PTIN online or by 

filing Form W-12, IRS Paid Preparer Tax 

Identification Number (PTIN) Application 

and Renewal. For more information 

about applying for a PTIN online, visit the 

IRS website at www.irs.gov/ptin.

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. We 

need it to ensure that you are complying 

with these laws and to allow us to figure 

and collect the right amount of tax. 

 Section 6109 requires you to provide 

your identifying number. Routine uses of 

this information include giving it to the 

Department of Justice for civil and 

criminal litigation, and to cities, states, 

the District of Columbia, and U.S. 

commonwealths and possessions for 

use in administering 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. Failure to 

provide this information in a timely 

manner or providing false or fraudulent 

information may subject you to penalties.

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 . . . . 5 hr., 30 min. 

Learning about the law 

or the form . . . . . . . . 1 hr.

Preparing, copying, assembling, 

and sending the form to 

the IRS . . . . . . 1 hr., 7 min.

If you have comments concerning the 

accuracy of these time estimates or 

suggestions for making this form 

simpler, we would be happy to hear from 

you. You can send your comments to: 

Internal Revenue Service 

Tax Forms and Publications 

SE:W:CAR:MP:TFP 

1111 Constitution Ave., NW, IR-6526 

Washington, DC 20224

DO NOT send Form 8725 to this 

address. Instead, see Where To File 

earlier.