Form 8275: Disclosure Statement for Tax Positions
Published November 7, 2026
Form 8275 is a disclosure statement. You attach it to a tax return. It discloses an item or position that is not otherwise adequately disclosed. The instructions say disclosure can help you avoid certain parts of the accuracy-related penalty. This works when the position has a reasonable basis.
This post is general information from the October 2024 revision of Form 8275 and its instructions. It does not say whether a position belongs on your return.
Who files it and how it is laid out
The instructions list who files Form 8275: individuals, corporations, pass-through entities, and tax return preparers. Part I is a table with one row for each item. Its columns cover the revenue ruling or revenue procedure, if any. The columns also cover the item or group of items. They include a detailed description, the form or schedule with its line number, and the amount.
Part II gives a detailed explanation of each item in the table.
When not to use it
Do not use Form 8275 for a position contrary to a Treasury regulation. For that, the instructions direct you to Form 8275-R, Regulation Disclosure Statement.
Reasonable basis
The instructions describe reasonable basis as a high standard. It is well above not frivolous. A position that is merely arguable does not meet it.
A position may have a reasonable basis if it rests on an authority in Regulations section 1.6662-4(d)(3)(iii). Those authorities are weighed by relevance, persuasiveness, and later developments.
Disclosure will not avoid the penalty if you did not keep proper books and records. Nor will it if you did not properly support an item.
What disclosure can and cannot do
Disclosure can help you avoid two parts of that penalty. One is the disregard-of-rules part. The other is the substantial-understatement part. The position must be adequately disclosed. It must also have at least a reasonable basis.
Disclosure does not avoid the part of that penalty that comes from negligence. It also does not avoid the penalty for a substantial understatement on a tax shelter item. The instructions list other items that disclosure cannot cover. Two more examples: an inconsistent estate basis, and an overstatement of the deduction under section 170(p).
The instructions also describe reasonable cause. Generally, no accuracy-related penalty applies to part of an underpayment. That is true if you show reasonable cause for that part. You must also show good faith. That exception does not apply to a transaction that lacks economic substance under section 7701(o).
Substantial understatement
For individuals, the instructions say an understatement is substantial. That happens when it is more than the greater of two amounts. The first is 10% of the tax required to be shown on the return. The second is $5,000.
For corporations, other than S corporations and personal holding companies, the test is different. The understatement must exceed the lesser of two amounts. The first is 10% of the tax required to be shown, or $10,000 if that is greater. The second is $10 million.
How to file
- File Form 8275 with your original tax return. Keep a copy.
- In some cases, you may be able to file it with an amended return.
- For items reported by a pass-through entity, file a separate Form 8275 for each entity.
- For positions related to more than one foreign entity, file a separate Form 8275 for each foreign entity.
- A recurring item, such as depreciation, needs a Form 8275 for each year it occurs.
- A carryover needs a Form 8275 only in the year it started.
When no form is needed
An annual revenue procedure lists items that are adequately disclosed. For those items, you do not need Form 8275. The instructions give a charitable contribution as an example. The rule is generally met when you complete the Gifts to Charity section of Schedule A. You also supply all required information and attach all related forms.
Form 8275 is different from the treaty disclosure on Form 8833: Treaty-Based Return Position Disclosure. Read each form's instructions before you choose one.
Sources: Sources: IRS, Form 8275, Disclosure Statement (Rev. October 2024) (https://www.irs.gov/pub/irs-pdf/f8275.pdf); Instructions for Form 8275 (Rev. October 2024) (https://www.irs.gov/pub/irs-pdf/i8275.pdf) This is general information, not advice about your specific return.
