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Federal Free Printable Form 8876 (Rev. December 2013) for 2019 Federal Excise Tax on Structured Settlement Factoring Transactions

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Excise Tax on Structured Settlement Factoring Transactions
Form 8876 (Rev. December 2013)

8876 Excise Tax on Structured Settlement Factoring Transactions Form (Rev. December 2013) Department of the Treasury Internal Revenue Service ▶ OMB No. 1545-1826 Information about Form 8876 and its instructions is at www.irs.gov/form8876. Date of receipt of structured settlement payment rights . . . . . . . . . . . . . . . Please Type or Print . ▶ Identifying number Name Number, street, and room or suite no. (If a P.O. box, see instructions.) City or town, state or province, country, and ZIP or foreign postal code 1 Total undiscounted amount of structured settlement payments being acquired . . . . . . 1 2 Total amount paid for the above structured settlement payment rights . . . . . . . . . 2 3 Factoring discount. Subtract line 2 from line 1 . . . . . . . . . . . . . . . . . 3 4 Tax. Multiply line 3 by 40% (.40) . . . . . . . . . . . . . . . . . . . . . 4 5 Less: Tax paid with Form 7004 . . . . . . . . . . . . . . . . . . . . . . 5 6 Tax due. Subtract line 5 from line 4. If zero or less, enter -0- . . . . . . . . . . . . 6 7 Overpayment. If line 5 is greater than line 4, subtract line 4 from line 5 . . . . . . . . 7 ▲ Paid Preparer Use Only ▲ Sign Here 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. Date Signature Print/Type preparer’s name Preparer's signature Title (if any) Date Check if self-employed Firm’s name ▶ Firm's EIN Firm's address ▶ Phone no. Section references are to the Internal Revenue Code unless otherwise noted. Future Developments For the latest information about developments related to Form 8876 and its instructions, such as legislation enacted after they were published, go to www.irs.gov/form8876. General Instructions Purpose of Form Use Form 8876 to report and pay the 40% excise tax imposed under section 5891 on the factoring discount of a structured settlement factoring transaction. File a separate Form 8876 for each date on which you received structured settlement payment rights in one or more structured settlement factoring transactions. Definitions Structured settlement. A structured settlement is an arrangement: • Established (a) by suit or agreement for the periodic payment of damages excludable from the gross income of the recipient under section 104(a)(2) or (b) by agreement for the periodic payment of compensation under any workers’ compensation law excludable from the gross income of the recipient under section 104(a)(1); and • Under which the periodic payments are (a) of the character described in section 130(c)(2) (A) and (B) and (b) payable by a person who is a party to the suit or agreement or to the workers’ compensation claim or by a person who has assumed the liability for such periodic payments under a qualified assignment in accordance with section 130. Structured settlement factoring transaction. A structured settlement factoring transaction is a transfer of structured settlement payment rights (including portions of structured settlement payments) made for consideration by means of sale, assignment, pledge, or other form of encumbrance or alienation for consideration. The following are not structured settlement factoring transactions. For Privacy Act and Paperwork Reduction Act Notice, see instructions. PTIN ▶ • The creation or perfection of a security interest in structured settlement payment rights under a blanket security agreement entered into with an insured depository institution in the absence of any action to redirect the structured settlement payments to that institution (or agent or successor thereof) or otherwise to enforce such blanket security interest as against the structured settlement payment rights. • A subsequent transfer of structured settlement payment rights acquired in a structured settlement factoring transaction. Structured settlement payment rights. Structured settlement payment rights are rights to receive payments under a structured settlement. Factoring discount. The factoring discount is the difference between the total undiscounted amount of structured settlement payments being acquired (line 1) and the total amount paid by the acquirer to the person(s) from whom the structured settlement payment rights are acquired (line 2). Qualified order. A qualified order is a final order, judgment, or decree that: Cat. No. 33529K Form 8876 (Rev. 12-2013) Form 8876 (Rev. 12-2013) • Finds that the transfer of structured settlement payment rights does not contravene any federal or state statute or the order of any court or responsible administrative authority, and is in the best interest of the payee, taking into account the welfare and support of the payee’s dependents; and • Is issued under the authority of an applicable state statute by an applicable state court, or by the responsible administrative authority (if any) that has exclusive jurisdiction over the underlying action or proceeding that was resolved by means of the structured settlement. Who Must File Generally, you must file Form 8876 if you acquire directly or indirectly structured settlement payment rights in a structured settlement factoring transaction entered into after February 21, 2002. However, do not file Form 8876 if the transfer of structured settlement payment rights was approved in advance in a qualified order, as no excise tax is due. When To File File Form 8876 by the 90th day following the receipt of structured settlement payment rights in a structured settlement factoring transaction. If you need more time, file Form 7004, Application for Automatic Extension of Time To File Certain Business Income Tax, Information, and Other Returns, by the due date of Form 8876. Form 7004 does not extend the time for payment of tax. Where To File Send Form 8876 to the following address: Internal Revenue Service Center Cincinnati, OH 45999 Rounding Off to Whole Dollars You can round off cents to whole dollars on your return and schedules. If you do round to whole dollars, you must round all amounts. To round, drop amounts under 50 cents and increase amounts from 50 to 99 cents to the next dollar. For example, $1.39 becomes $1 and $2.50 becomes $3. If you have to add two or more amounts to figure the amount to enter on a line, include cents when adding the amounts and round off only the total. Amended Return To amend a previously filed Form 8876, file a corrected Form 8876 and write “Amended” at the top of the form. 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. Generally, 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 8876 is not filed when due. This penalty will not be imposed if you have reasonable cause for not filing on time. If you do, attach an explanation. Page 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. This penalty will not be imposed if you have reasonable cause for not paying on time. Additional Information For more details, see section 5891 and Regulations section 157.5891-1. Specific Instructions Name and address. Enter the name shown on your most recently filed federal income tax return. If the Post Office does not deliver mail to the street address and you have a P.O. box, show the box number instead of the street address. Foreign Address. Follow the country's practice for entering the postal code. In some countries the postal code may come before the city or town name. Enter the full name of the country using uppercase letters in English. Identifying number. If you are an individual, enter your social security number. Other filers should enter their employer identification number. Line 5. Tax paid with Form 7004. If you filed Form 7004 for the payment rights received on the date shown on the top of this Form 8876, enter the amount of tax paid, if any, when you filed that extension application. Line 6. Tax due. Make your check or money order payable to “United States Treasury.” Write your name, address, identifying number, and “Form 8876” on the check or money order. Line 7. Overpayment. The IRS will refund the amount on line 7 (to the extent you owe no other taxes). Signature. For information on who must sign Form 8876, see the instructions for the signature section of your federal income tax return. Paid Preparer Use Only A paid preparer must sign Form 8876 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. If you work for a tax preparation firm, you must also enter the firm's name, address, and EIN. 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. 2 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 figure and collect the right amount of tax. If you do not file a return, do not provide the information we ask for, or provide fraudulent information, you may be subject to penalties. Our legal right to ask for information is sections 6001, 6011, and 6012(a) and their regulations, which require you to file a return or statement with us for any tax for which you are liable. Your response is mandatory under these sections. Section 6109 requires you to provide your identifying number. You must fill in all parts of the 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. We ask for the information on this form to carry out the tax laws of the United States. Generally, tax returns and return information are confidential, as required by section 6103. However, section 6103 allows or requires the IRS to disclose or give the information shown on your tax return to others as described there. For example, we may disclose your tax information to the Department of Justice to enforce the tax laws, both civil and criminal, and to cities, states, the District of Columbia, and U.S. commonwealths or possessions to administer 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. The time needed to complete and file this form will vary depending on individual circumstances. The estimated average time is: Recordkeeping . . . Learning about the law or the form . . . . Preparing, copying, assembling, and sending the form to the IRS . . . 3 hr., 6 min. . 1 hr., 12 min. . 1 hr., 17 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 from www.irs.gov/ formspubs/. Click on “More Information” and then on “Comment on Tax Forms and Publications.” You can also write to: Internal Revenue Service Tax Forms and Publications 1111 Constitution Ave. NW IR-6526 Washington, DC 20224 Do not send the tax form to this address. Instead, see Where To File, earlier.
Extracted from PDF file 2018-federal-form-8876.pdf, last modified January 2014

More about the Federal Form 8876 Other TY 2018

We last updated the Excise Tax on Structured Settlement Factoring Transactions in February 2019, so this is the latest version of Form 8876, fully updated for tax year 2018. You can download or print current or past-year PDFs of Form 8876 directly from TaxFormFinder. You can print other Federal tax forms here.

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Form Sources:

The Internal Revenue Service usually releases income tax forms for the current tax year between October and January, although changes to some forms can come even later. We last updated Federal Form 8876 from the Internal Revenue Service in February 2019.

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Historical Past-Year Versions of Federal Form 8876

We have a total of six past-year versions of Form 8876 in the TaxFormFinder archives, including for the previous tax year. Download past year versions of this tax form as PDFs here:


2018 Form 8876

Form 8876 (Rev. December 2013)

2017 Form 8876

Form 8876 (Rev. December 2013)

2016 Form 8876

Form 8876 (Rev. December 2013)

Excise Tax on Structured Settlement Factoring Transactions 2015 Form 8876

Form 8876 (Rev. December 2013)

Excise Tax on Structured Settlement Factoring Transactions 2012 Form 8876

Form 8876 (Rev. December 2011)

Excise Tax on Structured Settlement Factoring Transactions 2011 Form 8876

Form 8876 (Rev. December 2011)


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