Form 8716: Election to Have a Tax Year Other Than a Required Tax Year
Forms

Form 8716: Election to Have a Tax Year Other Than a Required Tax Year

Learn about IRS Form 8716 – the required document to make an election to the Internal Revenue Service under Section 444. Find out when the document must be filed, how to obtain an extension for filing, and the consequences of not complying with the requirements of Section 280H or 7519.

What is Form 8716?

Form 8716 is a document used by certain business entities to elect to use a special annual accounting period other than their regular required tax year. It must be signed and filed by the earlier of the 15th day of the 5th month following the month that includes the 1st day of the tax year the election is effective, or the due date (not including extensions) of the income tax return for the tax year resulting from the election. The entity may also use Regulations Section 301.9100-2 to request an extension to make the election within a 12 month period, and must then file the form at certain IRS addresses depending on their location. Making the election is a one-time option and can be terminated if the entity willfully fails to comply with sections 280H or 7519. Acceptance of the election will be evidenced by the service center’s stamp of “Accepted”, which must be kept for records.

IRS Form 8716 – Who Needs to Fill It Out?

IRS Form 8716 must be completed and signed by the earlier of the 15th day of the 5th month after the month including the 1st day of the tax year of the election, or the tax return due date of the tax year of the election. Regulations provide a 12-month extension for filing, provided “Filed Pursuant To Section 301.9100-2” is included at the top. Depending on where the entity’s primary place of business is located, it must file with one of two IRS addresses. Additionally, when filing a tax return for the first year of the election, a copy of Form 8716 must also be included. It is important to note that this election must be made only once and may end if the entity changes its accounting period or willfully fails to comply with section 280H or 7519 requirements. When the election is accepted, the IRS should return the form with the “Accepted” stamp.

See also:  Form 8300: Report of Cash Payments Over $10,000 Received In a Trade or Business

Step-by-Step: Form 8716 Instructions For Filling Out the Document

Filing Form 8716 is a straightforward process. It must be signed and submitted by the earlier of the 15th day of the 5th month following the month that includes the first day of the tax year the election will be effective, or the due date of the income tax return for the tax year resulting from the election. If you need additional time, Regulations section 301.9100-2 automatically grants a 12-month extension. To obtain the extension, be sure to type or legibly print “Filed Pursuant To Section 301.9100-2” at the top of the form and file it within 12 months of the original due date. To complete the filing process, you must also file a copy of the form with your income tax return for the first year the election is in effect. Additionally, partnerships and S corporations must also file Form 8752 for each year the election is in effect, and PSCs must comply with section 280H minimum distribution requirements. Lastly, no election can be made under section 444 if the entity is part of a tiered structure other than those that consist of all partnerships/S corporations with the same tax year. If accepted, the IRS will stamp the form “Accepted” and return a copy to you. Keep your copy marked “Accepted” for your records. This election remains in effect until the entity changes its accounting period or is penalized for willfully failing to comply with the requirements of section 280H/7519. If the election is terminated, the entity may not make another election.

See also:  Form 965-C: Transfer Agreement Under Section 965(h)(3)

Below, we present a table that will help you understand how to fill out Form 8716.

Information Required for Form 8716 Details
Use Election to have a tax year other than a required tax year
Filing Deadline File by the 15th day of the 5th month following the month that includes the first day of the tax year the election will be effective
Extension If you need additional time, Regulations section 301.9100-2 automatically grants a 12-month extension
Completing the Process File a copy of the form with your income tax return for the first year the election is in effect
Additional Forms Partnerships and S corporations must also file Form 8752 for each year the election is in effect, and PSCs must comply with section 280H minimum distribution requirements
Election Termination If the election is terminated, the entity may not make another election
See also:  Form 8886-T: Disclosure by Tax Exempt Entity Regarding Prohibited Tax Shelter Transaction

Do You Need to File Form 8716 Each Year?

Form 8716 must be signed and filed by the earlier of: 1. The 15th day of the 5th month following the month that includes the 1st day of the tax year the election will be effective, or 2. The due date (not including extensions) of the income tax return for the tax year resulting from the section 444 election. Under Regulations section 301.9100-2, the entity is automatically granted a 12-month extension to make an election on Form 8716. To enable electronic filing, an unsigned Form 8716 containing the same information as on the signed Form 8716 may be filed. Form 8752 is required to be filed by May 15 following the calendar year in which each applicable election year begins for partnerships and S corporations, while personal service corporations must comply with the minimum distribution requirements of section 280H. The section 444 election will end if the partnership or S corporation or PSC willfully fails to comply with the requirements of their respective sections. It is important to keep a copy of the form marked “Accepted” for your records.

Download the official IRS Form 8716 PDF

On the official IRS website, you will find a link to download Form 8716. However, to make it easier for you, we are providing the link in our article, which comes directly from the official irs.gov website! Click to download: Form 8716

Sources:

https://www.irs.gov/forms-pubs/about-form-8716

Share the article

You may also like...

Leave a Reply