Form 8886

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Message Board Form 8886

This topic contains 1 reply, has 2 voices, and was last updated by Sandy Weiner 1 week, 4 days ago.

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  • #157834
    Anonymous

    Hi, form Form 8886, line  6,  do we still need to enter in the name of the individual for whom the taxpayer consulted with on the reportable transaction BUT NO FEES were paid?

  • #157860
    Sandy Weiner
    Participant

    Form 8886, Line 6 instructions:

    Enter the name, address, and social
    security number (SSN) or EIN (if known)
    for each individual or entity to whom you
    paid a fee with regard to the transaction
    if that individual or entity promoted,
    solicited, or recommended your
    participation in the transaction, or
    provided tax advice related to the
    transaction. Also, enter the approximate
    fees paid to each of the individuals or
    entities. These fees include payment in
    whatever form, whether in cash or in
    kind, for a tax strategy or for advice
    (whether or not tax advice). Fees also
    include consideration for services to:
    Analyze the transaction (whether or
    not related to the tax consequences of
    the transaction),
    Implement the transaction,
    Document the transaction, or
    Prepare tax returns to the extent the
    return preparation fees are
    unreasonable.
    You are also treated as paying fees
    to an advisor if you know or should
    know that an amount you paid will be
    paid indirectly to the advisor, such as
    through a referral fee or fee-sharing
    arrangement. A fee does not include
    amounts paid to a person, including an
    advisor, in that person’s capacity as a
    party to the transaction.