Form 8831 (Rev. 4-2018)
Page 4
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.
Interest and Penalties
Interest. Interest is charged on taxes
not paid by the due date. Interest is also
charged on certain penalties. The
interest charged is figured at a rate
determined under section 6621.
Late filing penalty. Generally, a penalty
of 5% a month or part of a month, up to
a maximum of 25%, is imposed on the
net amount of tax due if the excise tax
return is not filed when due.
Late payment penalty. Generally, the
penalty for not paying tax when due is
1
/2 of 1% of the unpaid tax, up to a
maximum of 25%, for each month or
part of a month the tax remains unpaid.
Blended tax rate for fiscal year filers.
Effective for tax years beginning after
December 31, 2017, a corporation’s tax
is figured by multiplying taxable income
by 21%. However, under section 15,
corporations with fiscal tax years
beginning before January 1, 2018, and
ending after December 31, 2017, figure
and apportion their tax by blending the
rates in effect before January 1, 2018,
with the rate in effect after December 31,
2017.
Specific Instructions
Name and Address
Enter the name shown on your most
recently filed federal income tax return.
Include the suite, room, apartment, or
other unit number after the street
address. 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.
Identifying Number
If you are an individual, enter your social
security number. Other filers, enter your
employer identification number.
Part I
Line 4. The excess inclusions expected
to accrue must be determined as of the
date the residual interest is transferred
and must be based on events that have
occurred up to the time of the transfer,
the prepayment and reinvestment
assumptions adopted under section
1272(a)(6) (or that would have been
adopted if the REMIC’s regular interests
had been issued with original issue
discount), and any required or permitted
clean-up calls, or required qualified
liquidation provided under the REMIC’s
organizational documents.
The present value of the excess
inclusions expected to accrue is
determined by discounting all remaining
excess inclusions expected to accrue on
the residual interest from the end of
each calendar quarter in which those
inclusions are expected to accrue to the
date the disqualified organization
acquired the residual interest. The
discount rate to be used in this
computation is the applicable federal
rate under section 1274(d)(1) that would
apply to a debt instrument issued on the
date the disqualified organization
acquired the residual interest and with a
term that ends on the last day of the last
quarter in which excess inclusions are
expected to accrue for the interest.
The REMIC must furnish the
information needed to figure the amount
on line 4 upon your request. The
information must be furnished within 60
days of the request. The REMIC may
charge a fee for this information.
Line 6. Enter the amounts reported on
Schedule Q (Form 1066), Quarterly
Notice to Residual Interest Holder of
REMIC Taxable Income or Net Loss
Allocation, line 2c, to the disqualified
organization for the period it held the
residual interest.
Part II
Line 9. Enter the amounts reported on
Schedule Q (Form 1066), line 2c, for the
tax year of the pass-through entity that
are allocable to all disqualified
organizations that held an interest in the
entity.
Line 10. In general, deduct the amount
on line 10 to figure the ordinary income
of the pass-through entity. For example,
a real estate investment trust deducts
the tax to figure its real estate
investment trust taxable income under
section 857(b)(2). However, an electing
large partnership excludes the amount
subject to tax (line 9) instead of
deducting the tax (line 10) from its
income.
Part III
Line 12. If you filed Form 7004, enter
the amount paid, if any, when you filed
that form.
Line 13. You must pay the full amount
reported on line 13. You may make your
payment using the Electronic Federal
Tax Payment System (EFTPS). To do so,
you must be enrolled in EFTPS. To enroll
in or get more information about EFTPS,
visit www.eftps.gov.
You may also send us a check or
money order. If so, make your check or
money order payable to “United States
Treasury.” Write your name, address,
identifying number, and “Form 8831” on
the check or money order.
Line 14. The IRS will refund the amount
on line 14 if you owe no other taxes.
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. This form is used to
determine the amount of taxes you owe
as imposed by section 860E. Section
6011 requires you to provide the
requested information if the tax is
applicable to you. Section 6109 requires
you to provide your identification
number. Routine uses of this information
include giving it to the Department of
Justice for civil and criminal litigation and
to cities, states, and 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. If you fail to provide this
information in a timely manner, you may
be subject 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, 4 hr.,
32 min.; Learning about the law or the
form, 1 hr., 29 min.; Preparing,
copying, assembling, and sending the
form to the IRS, 1 hr., 37 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 comments
through www.irs.gov/FormComments.
Or you can write to:
Internal Revenue Service
Tax Forms and Publications Division
1111 Constitution Ave. NW, IR-6526
Washington, DC 20224
Although we cannot respond
individually to each comment received,
we do appreciate your feedback and will
consider your comments as we revise
our tax products. Do not send the tax
form to this address. Instead, see Where
To File, earlier.
