Form 8899

Department of the Treasury

Internal Revenue Service

Notice of Income From

Donated Intellectual Property

OMB No. 1545-1962

Name of charitable organization (donee) Employer identification number

Address (number, street, and room or suite no.) (or P.O. box no. if mail is not delivered to the street address)

City or town, state, and ZIP code

Print

or

Type

Name of donor b

c Address (number, street, and room or suite no.) (or P.O. box no. if mail is not delivered to the street address)

City or town, state, and ZIP code

2a Description of qualified intellectual property and patent number, if applicable

b Date of charitable contribution

3a Qualified donee income (see the definition on page 2)

b Tax year of donee for which income listed in line 3a is reported. Check only one box:

$

Calendar year 20 .

Identifying number

Cat. No. 37707M Form 8899 (Rev. 12-2005)

(Rev. December 2005)

d

Fiscal year beginning , 20 , and ending , 20 .

Instructions for Form 8899

Section references are to the Internal Revenue Code unless

otherwise noted.

Purpose of Form

A taxpayer who contributes qualified intellectual property

(defined on page 2) to a charity may be entitled to a

charitable deduction, in addition to any initial deduction

allowed in the year of contribution, based on a specified

percentage of the qualified donee income (defined on page

2) received by the donee with respect to the qualified

intellectual property. Any additional charitable deductions

attributable to qualified donee income may be allowed in the

year of the contribution or in subsequent years, subject to

the limitations described in the definition of qualified donee

income.

To qualify for the additional charitable deduction, the donor

must provide notice to the donee at the time of the

contribution that the donor intends to treat the contribution

as a qualified intellectual property contribution for purposes

of sections 170(m) and 6050L.

Form 8899 is used by a donee to report net income from

qualified intellectual property to the donor of the property

and to the IRS. This form must be filed for each tax year of

the donee in which the donated property produces net

income, but only if all or part of that tax year occurs during

the 10-year period beginning on the date of the contribution

and that tax year does not begin after the expiration of the

legal life of the donated property.

Who Must File

Every donee organization described in section 170(c) (except

a private foundation as defined in section 509(a) that is not

described in section 170(b)(1)(E)) that received a charitable

gift of qualified intellectual property for which the donor

provided notice as discussed above, must file Form 8899 if

the property produces net income for the year. If the

qualified intellectual property fails to produce net income for

the donee’s tax year, the donee is not required to file Form

8899.

When and Where to File

The donee is required to file Form 8899 with the IRS and

provide a copy of the form to the donor by the last day of

the first full month following the close of the donee’s tax

year.

The organization may be subject to a penalty if it fails to file

Form 8899 by the due date; fails to include all of the

information required to be shown on this form; or fails to

include correct information on this form. For additional

information, see sections 6721 through 6724.

Penalty

Give a Copy to Donor

c Date of notice to treat as qualified intellectual property

Note. Donors should see Publication 526, Charitable

Contributions, to figure the amount of the additional

charitable deduction.

1a

Donees that were required to submit an information return

before Form 8899 was available should see Temporary

Regulations section 1.6050L-2T(c)(2) for requirements on

reporting to the donor and Temporary Regulations section

1.6050L-2T(d)(2)(ii) for filing requirements with the IRS. Send

Form 8899 to the Internal Revenue Service, Ogden, UT

84201-0027. If filing using a private delivery service, send

Form 8899 to the Internal Revenue Service, 1973 N. Rulon

White Blvd., Ogden, UT 84404.
Exceptions. The following property is not considered

qualified intellectual property for purposes of the additional

charitable deduction.

1. Computer software that is readily available for purchase by

the general public, is subject to a nonexclusive license,

and has not been substantially modified.

Qualified donee income. Qualified donee income is any net

income received or accrued by the donee that is properly

allocable to the qualified intellectual property for the tax year

of the donee which ends within or with the tax year of the

donor. Income is not treated as allocated to qualified

intellectual property if it is received or accrued after the

earlier of the expiration of the legal life of the qualified

intellectual property, or the 10-year period beginning with the

date of the contribution.

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 and to allow us to figure and collect the right

amount of tax.

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 3 hr., 20 min.

Learning about the law 1 hr., 0 min.

Preparing and sending 

the form to the IRS 1 hr., 5 min.

2. A copyright held by a taxpayer:

a. Whose personal efforts created the property, or

b. In whose hands the basis of the property is determined,

for purposes of determining gain from a sale or

exchange, in whole or in part by reference to the basis

of the property in the hands of a taxpayer whose

personal efforts created the property.

Form 8899 (Rev. 12-2005) Page 2

If you have comments concerning the accuracy of this time

estimate or suggestions for making this form simpler, we

would be happy to hear from you. You can write to the

Internal Revenue Service, Tax Products Coordinating

Committee, SE:W:CAR:MP:T:T:SP, 1111 Constitution Ave.

NW, IR-6406, Washington, DC 20224. Do not send this form

to this address. Instead, see When and Where To File on

page 1.

Qualified intellectual property. Qualified intellectual property

is generally any patent, copyright, trademark, trade name,

trade secret, know-how, software or similar property, or

applications or registrations of such property (other than

property contributed to or for the use of a private foundation

as defined in section 509(a) that is not described in section

170(b)(1)(E)). See Exceptions below.

Definitions

Identifying number. The identifying number for individual

donors is the social security number. For other donors,

including corporations, partnerships, and estates, the

identifying number is the employer identification number. To

obtain the donor’s identifying number, you may request that

the donor complete Form W-9, Request for Taxpayer

Identification Number and Certification.