State Income Tax Return

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State Income Tax Return

State income tax return 34. State income tax return   Crédito Tributario por Hijos Table of Contents Introduction Useful Items - You may want to see: Hijo Calificado Cantidad de CréditoLímites del Crédito Cómo Reclamar el Crédito Crédito Tributario Adicional por Hijos Cómo Completar el Anexo 8812 (Formulario 1040A o Formulario 1040)Parte I Partes II a IV Introduction El crédito tributario por hijos es un crédito que puede reducir su impuesto hasta $1,000 por cada uno de sus hijos calificados. State income tax return El crédito tributario adicional por hijos es un crédito que podría tomar en el caso de que no pueda reclamar la cantidad completa del crédito tributario por hijos. State income tax return Este capítulo le explica lo siguiente: Quién es un hijo calificado. State income tax return La cantidad del crédito. State income tax return Cómo se puede reclamar el crédito. State income tax return El crédito tributario por hijos y el crédito tributario adicional por hijos no deben confundirse con el crédito por gastos del cuidado de menores y dependientes, el cual se explica en el capítulo 32. State income tax return Si no está sujeto al pago de impuestos. State income tax return   Algunos créditos, tales como el crédito tributario por hijos o el crédito por gastos del cuidado de menores y dependientes, se usan para reducir el impuesto. State income tax return Si la cantidad del impuesto en la línea 46 del Formulario 1040 o en la línea 28 del Formulario 1040A es cero, no calcule el crédito tributario por hijos ya que no hay impuesto que se pueda reducir. State income tax return Sin embargo, podría reunir los requisitos para el crédito tributario adicional por hijos en la línea 65 (Formulario 1040) o en la línea 39 (Formulario 1040A). State income tax return Useful Items - You may want to see: Publicación 972 Child Tax Credit (Crédito tributario por hijos), en inglés Formulario (e Instrucciones) Anexo 8812   (Formulario 1040A o 1040) Child Tax Credit (Crédito tributario por hijos), en inglés W-4(SP) Certificado de Exención de Retenciones del Empleado W-4 Employee's Withholding Allowance Certificate (Certificado de exención de retenciones del empleado), en inglés Hijo Calificado Un hijo calificado, para propósitos del crédito tributario por hijos, es aquél que: Es su hijo o hija, hijastro o hijastra, hijo de crianza, hermano o hermana, hermanastro o hermanastra o descendiente de cualquiera de ellos (por ejemplo, su nieto, nieta, sobrina o sobrino), Tenía menos de 17 años de edad al finalizar el año 2013, No proveyó más de la mitad de su propia manutención durante el año 2013, Vivió con usted durante más de la mitad del año 2013 (vea Excepciones al tiempo vivido con usted , más adelante), Fue reclamado como dependiente en la declaración de usted, No presenta una declaración conjunta para el año (o la presenta solamente para reclamar un reembolso), y Era ciudadano, nacional o residente de los Estados Unidos. State income tax return Si el hijo fue adoptado, vea Hijo adoptivo , más adelante. State income tax return Para cada hijo calificado, tiene que marcar el recuadro que aparece en la línea 6c del Formulario 1040 o del Formulario 1040A. State income tax return Ejemplo 1. State income tax return Su hijo cumplió 17 años de edad el día 30 de diciembre del año 2013. State income tax return Él es ciudadano de los Estados Unidos y usted lo declara como dependiente en la declaración de impuestos. State income tax return Su hijo no es hijo calificado para el crédito tributario por hijos porque no tenía menos de 17 años de edad al finalizar el año 2013. State income tax return Ejemplo 2. State income tax return Su hija cumplió 8 años en el año 2013. State income tax return Ella no es ciudadana de los Estados Unidos, tiene un ITIN y vivió en México durante todo el año 2013. State income tax return Ella no es un hijo calificado para el crédito tributario por hijos debido a que no fue residente de los Estados Unidos en 2013. State income tax return Contribuyentes que tienen determinados hijos dependientes con un número de identificación personal del contribuyente (ITIN, por sus siglas en inglés). State income tax return   Si está reclamando un crédito tributario por hijos o un crédito tributario adicional por hijos basándose en un hijo que identificó en su declaración de impuestos con un número de identificación personal del contribuyente (ITIN, por sus siglas en inglés), en lugar de un número de Seguro Social (SSN, por sus siglas en inglés), tiene que completar la Parte I del Anexo 8812 (Formulario 1040A o 1040). State income tax return   Aun si su hijo es dependiente suyo, sólo puede reclamar un crédito tributario por hijos o un crédito tributario adicional por hijos basándose en un dependiente que sea ciudadano, nacional o residente de los Estados Unidos. State income tax return Para ser tratado como residente de los Estados Unidos, un hijo normalmente tiene que cumplir el requisito de presencia sustancial. State income tax return Para más información sobre el requisito de presencia sustancial, vea la Publicación 519, U. State income tax return S. State income tax return Tax Guide for Aliens (Guía sobre los impuestos federales estadounidenses para extranjeros), en inglés. State income tax return Hijo adoptivo. State income tax return   A un hijo adoptivo siempre se le trata como si fuera su hijo. State income tax return Un hijo adoptivo incluye un niño colocado en su hogar por una agencia autorizada, con la intención de que sea legalmente adoptado. State income tax return   Si usted es ciudadano o nacional de los EE. State income tax return UU. State income tax return y su hijo adoptivo vivió con usted como integrante de su unidad familiar durante todo el año en 2013, dicho hijo cumple el requisito (7), anteriormente, para ser un hijo calificado para propósitos del crédito tributario por hijos. State income tax return Excepciones al tiempo vivido con usted. State income tax return   Se considera que un hijo vivió con usted más de la mitad del año 2013 si nació o murió en el año 2013, y su hogar (el de usted) fue el hogar del hijo más de la mitad del tiempo en el cual estuvo vivo. State income tax return Las ausencias temporales por usted o su hijo debidas a circunstancias especiales, tales como las ausencias por educación, vacaciones, negocios, atención médica, servicio militar o estancia en un centro de detención para delincuentes juveniles cuentan como tiempo que el hijo vivió con usted. State income tax return   También hay excepciones para hijos secuestrados e hijos de padres divorciados o separados. State income tax return Para detalles, vea Requisito de Residencia , en el capítulo 3. State income tax return Hijo calificado de más de una persona. State income tax return   Se aplica una regla especial si su hijo calificado es el hijo calificado de más de una persona. State income tax return Para detalles, vea Requisito Especial para el Hijo Calificado de Más de una Persona , en el capítulo 3. State income tax return Cantidad de Crédito La cantidad máxima de crédito que puede reclamar es $1,000 por cada hijo calificado. State income tax return Límites del Crédito Usted tiene que reducir su crédito tributario por hijos si la condición (1) o la condición (2) le corresponde: La cantidad de la línea 46 (Formulario 1040) o de la línea 28 (Formulario 1040A) es menor que el crédito. State income tax return Si esta cantidad es cero, no puede reclamar este crédito porque no hay impuesto que se pueda reducir. State income tax return Sin embargo, es posible que pueda tomar el crédito tributario adicional por hijos. State income tax return Vea Crédito Tributario Adicional por Hijos , más adelante. State income tax return Su ingreso bruto ajustado (AGI, por sus siglas en inglés) modificado es mayor que la cantidad que se indica a continuación para su estado civil para efectos de la declaración. State income tax return Casados que presentan una declaración conjunta: $110,000. State income tax return Soltero, cabeza de familia o viudo que reúne los requisitos: $75,000. State income tax return Casados que presentan la declaración por separado: $55,000. State income tax return Ingresos brutos ajustados modificados. State income tax return   Para propósitos del crédito tributario por hijos, su ingreso bruto ajustado (AGI, por sus siglas en inglés) modificado es su ingreso bruto ajustado más las cantidades siguientes que puedan ser aplicables en su caso: Toda cantidad excluida del ingreso debido a la exclusión de ingresos de fuentes de  Puerto Rico. State income tax return En la línea de puntos directamente al lado de la línea 38 del Formulario 1040, anote la cantidad excluida e indentifíquela como “ EPRI. State income tax return ” Además, adjunte una copia de todo Formulario 499R-2/W-2PR a su declaración. State income tax return Toda cantidad de las líneas 45 ó 50 del Formulario 2555, Foreign Earned Income (Ingreso devengado en el extranjero), en inglés. State income tax return Toda cantidad de la línea 18 del Formulario 2555-EZ, Foreign Earned Income Exclusion (Exclusión de ingreso devengado en el extranjero), en inglés. State income tax return Toda cantidad de la línea 15 del Formulario 4563, Exclusion of Income for Bona Fide Residents of American Samoa (Exclusión del ingreso para residentes bona fide de la Samoa Estadounidense), en inglés. State income tax return   Si no tiene ninguna de las cantidades mencionadas anteriormente, su ingreso bruto ajustado modificado es igual a su ingreso bruto ajustado. State income tax return Ingreso bruto ajustado. State income tax return   El ingreso bruto ajustado (AGI, por sus siglas en inglés) es la cantidad de la línea 38 del Formulario 1040 o de la línea 22 del Formulario 1040A. State income tax return Cómo Reclamar el Crédito Para reclamar el crédito tributario por hijos, tiene que presentar el Formulario 1040 o el Formulario 1040A. State income tax return No puede reclamar el crédito tributario por hijos en el Formulario 1040EZ. State income tax return Tiene que proveer el nombre y número de identificación (normalmente el número de Seguro Social) de cada hijo calificado en su declaración de impuestos. State income tax return Si reclama el crédito tributario por hijos con un hijo identificado por un ITIN, usted también tiene que presentar el Anexo 8812. State income tax return Para calcular el crédito, primero revise la Child Tax Credit Worksheet (Hoja de trabajo del crédito tributario por hijos), en las Instrucciones para el Formulario 1040 o el Formulario 1040A. State income tax return Si se le indica que consulte la Publicación 972, Child Tax Credit (Crédito tributario por hijos), en inglés, no puede utilizar la Hoja de trabajo de las instrucciones en la declaración de impuestos; en su lugar, usted tiene que utilizar la Publicación 972, en inglés, para calcular el crédito. State income tax return Si no se le indica que utilice la Publicación 972, puede usar la Hoja de trabajo del crédito tributario por hijos, que se encuentra en las Instrucciones para el Formulario 1040 o las Instrucciones para el Formulario 1040A o la Publicación 972, todas en inglés, para calcular el crédito. State income tax return Crédito Tributario Adicional por Hijos Este crédito es para determinadas personas que reciban menos de la cantidad total del crédito tributario por hijos. State income tax return El crédito tributario adicional por hijos puede darle un reembolso aunque no adeude ningún impuesto. State income tax return Cómo se reclama el crédito tributario adicional por hijos. State income tax return   Para reclamar el crédito tributario adicional por hijos, siga los pasos que aparecen a continuación: Asegúrese de haber calculado la cantidad, si existe, de su crédito tributario por hijos. State income tax return Vea anteriormente el tema titulado Cómo Reclamar el Crédito . State income tax return Use las Partes II a la IV del Anexo 8812 para determinar si puede reclamar el crédito tributario adicional por hijos si usted contestó “Yes” (Sí) en la línea 9 ó 10 de la Child Tax Credit Worksheet (Hoja de trabajo del crédito tributario por hijos) en las Instrucciones para el Formulario 1040 o en las Instrucciones para el Formulario 1040A, o en la línea 13 de la Child Tax Credit Worksheet (Hoja de trabajo del crédito tributario por hijos) en la Publicación 972, todas en inglés. State income tax return Si tiene un crédito tributario adicional por hijos en la línea 13 del Anexo 8812, anótelo en la línea 65 del Formulario 1040 o en la línea 39 del Formulario 1040A. State income tax return Cómo Completar el Anexo 8812 (Formulario 1040A o Formulario 1040) El Anexo 8812 tiene cuatro partes, pero se puede considerar como que consta de dos secciones. State income tax return La Parte I es independiente de las Partes II a la IV. State income tax return Si todos sus hijos tienen números de Seguro Social o números de identificación del contribuyente para adopción del IRS(ATIN, por sus siglas en inglés),y usted no reclama el crédito tributario adicional por hijos, no necesita completar ni adjuntar el Anexo 8812 a su declaración de impuestos. State income tax return Parte I Usted sólo necesitará completar la Parte I si está reclamando el crédito tributario por hijos para un hijo que aparece identificado con un número de identificación personal del contribuyente del IRS (ITIN, por sus siglas en inglés). State income tax return Si todos los hijos por los cuales usted marcó la casilla en la columna 4 de la línea 6c de su Formulario 1040 o Formulario 1040A tienen números de Seguro Social (SSN, por sus siglas en inglés) o números de identificación del contribuyente para adopción del IRS (ATIN, por sus siglas en inglés), no tiene que completar la Parte I del Anexo 8812. State income tax return Partes II a IV Las Partes II a la IV le ayudan a calcular el crédito adicional por hijos que le corresponde a usted. State income tax return Por lo general, deberá completar las Partes II a la IV únicamente si se le indica luego de que completa la Hoja de trabajo del crédito tributario por hijos que aparece en las instrucciones de su declaración de impuestos o en la Publicación 972. State income tax return Vea Cómo se reclama el crédito tributario adicional por hijos , anteriormente. State income tax return Prev  Up  Next   Home   More Online Publications Skip Navigation

The State Income Tax Return

State income tax return Internal Revenue Bulletin:  2009-36  September 8, 2009  Rev. State income tax return Proc. State income tax return 2009-37 Table of Contents SECTION 1. State income tax return PURPOSE SECTION 2. State income tax return BACKGROUND SECTION 3. State income tax return SCOPE SECTION 4. State income tax return ELECTION PROCEDURES SECTION 5. State income tax return REQUIRED INFORMATION STATEMENT SECTION 6. State income tax return EFFECTIVE DATE SECTION 7. State income tax return TRANSITION RULE SECTION 8. State income tax return PAPERWORK REDUCTION ACT DRAFTING INFORMATION SECTION 1. State income tax return PURPOSE . State income tax return 01 This revenue procedure provides the exclusive procedures for taxpayers to make an election to defer recognizing discharge of indebtedness income (“COD income”) under § 108(i) of the Internal Revenue Code. State income tax return . State income tax return 02 This revenue procedure also requires taxpayers making the § 108(i) election to provide additional information on returns beginning with the taxable year following the taxable year for which the taxpayer makes the election. State income tax return This revenue procedure describes the time and manner of providing this additional information. State income tax return . State income tax return 03 The Internal Revenue Service and Treasury Department intend to issue additional guidance under § 108(i) that may include regulations addressing matters in this revenue procedure. State income tax return Taxpayers should be aware that these regulations may be retroactive. State income tax return See § 7805(b)(2). State income tax return This revenue procedure may be modified to provide procedures consistent with additional guidance. State income tax return SECTION 2. State income tax return BACKGROUND . State income tax return 01 Section 108(i), Generally. State income tax return Section 108(i) was added to the Code by § 1231 of the American Recovery and Reinvestment Tax Act of 2009, Pub. State income tax return L. State income tax return No. State income tax return 111-5, 123 Stat. State income tax return 338. State income tax return In general, § 108(i) provides that, at the election of a taxpayer, COD income realized in connection with a reacquisition after December 31, 2008, and before January 1, 2011, of an applicable debt instrument is includible in gross income ratably over a 5-taxable-year inclusion period, beginning with the taxpayer’s fourth or fifth taxable year following the taxable year of the reacquisition. State income tax return Generally, if a taxpayer makes a § 108(i) election and reacquires (or is treated as reacquiring) the applicable debt instrument generating the COD income for a new debt instrument with original issue discount (“OID”), then interest deductions for this OID also are deferred, as provided in § 108(i)(2). State income tax return The OID deferral rule, however, does not apply if the amount of OID is less than a de minimis amount, as determined under § 1273(a)(3) and § 1. State income tax return 1273-1(d) of the Income Tax Regulations. State income tax return The OID deferral rule in § 108(i)(2) applies at the entity level for a pass-through entity. State income tax return For example, a partnership (and therefore its partners) may not deduct currently the OID described in § 108(i)(2)(A)(i). State income tax return A taxpayer must take into account any item of income or deduction deferred under § 108(i), and not previously taken into account, in the taxable year in which certain events occur (such as the liquidation of the taxpayer and upon other events specified in administrative guidance). State income tax return See § 108(i)(5)(D). State income tax return The rule regarding acceleration of deferred COD income and OID deductions also applies in the case of certain dispositions by persons holding ownership interests in pass-through entities. State income tax return Section 108(i)(5)(D)(ii). State income tax return For purposes of § 108(i), regulated investment companies (as defined in § 851(a)) and real estate investment trusts (as defined in § 856(a)) are not pass-through entities. State income tax return . State income tax return 02 Applicable Debt Instrument. State income tax return Section 108(i)(3)(A) defines the term “applicable debt instrument” to mean any debt instrument issued by a C corporation or by any other person in connection with the conduct of a trade or business by that person. State income tax return The term “debt instrument” means any bond, debenture, note, certificate, or any other instrument or contractual arrangement constituting indebtedness within the meaning of § 1275(a)(1). State income tax return Section 108(i)(3)(B). State income tax return For purposes of § 108(i), in the case of an intercompany obligation (as defined in § 1. State income tax return 1502-13(g)(2)(ii)), an applicable debt instrument includes only an instrument for which COD income is realized upon the instrument’s deemed satisfaction under § 1. State income tax return 1502-13(g)(5). State income tax return . State income tax return 03 Reacquisition. State income tax return Section 108(i)(4)(A) defines the term “reacquisition” to mean, with respect to any applicable debt instrument, any acquisition of the debt instrument by the debtor that issued (or is otherwise the obligor under) the debt instrument, or a person related to the debtor under § 108(e)(4). State income tax return The term “acquisition” includes an acquisition of the debt instrument for cash or other property, the exchange of the debt instrument for another debt instrument (including an exchange resulting from a modification of the debt instrument), the exchange of the debt instrument for corporate stock or a partnership interest, the contribution of the debt instrument to capital, and the complete forgiveness of the indebtedness by the holder of the debt instrument. State income tax return See § 108(i)(4)(B). State income tax return The term “acquisition” also includes an indirect acquisition within the meaning of § 1. State income tax return 108-2(c) if a direct acquisition of the debt instrument would qualify for an election under § 108(i). State income tax return For example, if a corporation acquires debt of a partnership that the partnership issued in connection with its trade or business, and the partnership and corporation become related within six months of the corporation’s acquisition of the debt, the indirect acquisition is an acquisition for which an election under § 108(i) may be made. State income tax return . State income tax return 04 General Requirements for the Section 108(i) Election. State income tax return Section 108(i)(5)(B) provides, in general, that a taxpayer makes the § 108(i) election by including a statement that clearly identifies the applicable debt instrument with the return of tax imposed for the taxable year in which the reacquisition of the instrument occurs. State income tax return (For purposes of this revenue procedure, a return of tax or income tax return includes an information return, and a taxpayer includes a person that files an information return. State income tax return ) The statement must include the amount of income to which § 108(i)(1) applies and other information the Service may prescribe. State income tax return Once made, a § 108(i) election is irrevocable and, except as provided in section 7 of this revenue procedure, may not be modified. State income tax return . State income tax return 05 Section 108(i) Elections Made by Pass-through Entities. State income tax return In the case of COD income realized by a pass-through entity from the reacquisition of an applicable debt instrument, the pass-through entity makes the § 108(i) election. State income tax return Section 108(i)(5)(B)(iii). State income tax return . State income tax return 06 Additional Information on Subsequent Years’ Returns. State income tax return Section 108(i)(7) authorizes the Service to issue guidance necessary or appropriate for applying § 108(i), including requiring reporting the election and other information on returns of tax for subsequent taxable years. State income tax return . State income tax return 07 Exclusivity. State income tax return Section 108(i)(5)(C) provides that if a taxpayer elects to apply § 108(i) to an applicable debt instrument, § 108(a)(1)(A), (B), (C), and (D) do not apply to COD income deferred under § 108(i). State income tax return . State income tax return 08 Allocation of Deferred COD Income on Partnership Indebtedness. State income tax return Section 4. State income tax return 04(3) of this revenue procedure describes how a partnership may elect under § 108(i) to defer a portion of the COD income realized from the reacquisition of an applicable debt instrument. State income tax return If a partnership elects to defer all or any portion of COD income realized from the reacquisition of an applicable debt instrument, all of the COD income with respect to that debt instrument, without regard to § 108(i), is allocated to the partners in the partnership immediately before the reacquisition in the manner in which the income would be included in the distributive shares of these partners under § 704 and the regulations thereunder, including § 1. State income tax return 704-1(b)(2)(iii). State income tax return Each partner’s share of this COD income is the partner’s COD income amount (“COD income amount”). State income tax return The partner’s COD income amount that is deferred under § 108(i) is the partner’s deferred amount (“deferred amount”). State income tax return The partner’s COD income amount that is not deferred and is included in the partner’s distributive share of partnership income for the taxable year of the partnership in which the reacquisition occurs is the partner’s included amount (“included amount”). State income tax return . State income tax return 09 Partner’s Deferred § 752 Amount. State income tax return A decrease in a partner’s share of a partnership liability resulting from the reacquisition of an applicable debt instrument that is not treated as a current distribution of money to the partner under § 752 by reason of § 108(i)(6) is the partner’s deferred § 752 amount (“deferred § 752 amount”). State income tax return A partner’s deferred § 752 amount may not exceed the lesser of (i) the partner’s deferred amount or (ii) gain that the partner would recognize in the year of reacquisition under § 731 as a result of the reacquisition absent § 108(i)(6). State income tax return To determine the amount of gain the partner would recognize under clause (ii) of the preceding sentence, the amount of any deemed distribution of money under § 752(b) resulting from the decrease in the partner’s share of a reacquired applicable debt instrument that is treated as an advance or draw of money under § 1. State income tax return 731-1(a)(1)(ii) is determined as if no COD income resulting from the reacquisition of the applicable debt instrument is deferred under § 108(i). State income tax return See Rev. State income tax return Rul. State income tax return 92-97, 1992-2 C. State income tax return B. State income tax return 124, and Rev. State income tax return Rul. State income tax return 94-4, 1994-1 C. State income tax return B. State income tax return 195. State income tax return A partner’s deferred § 752 amount is treated as a distribution of money to the partner under § 752 at the same time, and to the extent remaining in the same amount, as the partner recognizes the COD income deferred under § 108(i). State income tax return . State income tax return 10 Allocation of Deferred COD Income on S Corporation Indebtedness. State income tax return For purposes of § 108(i), an S corporation’s COD income deferred under § 108(i) is shared pro rata only among those shareholders that are shareholders of the S corporation immediately before the reacquisition transaction. State income tax return . State income tax return 11 Deferred COD Income, Earnings and Profits, and Alternative Minimum Taxable Income. State income tax return (1) In general. State income tax return The Service and Treasury Department intend to issue regulations regarding the computation of a corporation’s earnings and profits with respect to COD income and OID deductions that are deferred under § 108(i). State income tax return These regulations generally will provide that deferred COD income increases earnings and profits in the taxable year that it is realized and not in the taxable year or years that the deferred COD income is includible in gross income. State income tax return OID deductions deferred under § 108(i) generally will decrease earnings and profits in the taxable year or years in which the deduction would be allowed without regard to § 108(i). State income tax return COD income and OID deductions that are deferred increase or decrease adjusted current earnings under § 56(g)(4) in the taxable year or years that the income or deduction is includible or deductible in determining taxable income. State income tax return See § 1. State income tax return 56(g)-1(c)(1). State income tax return (2) Exceptions for certain special status corporations. State income tax return The Service and Treasury Department intend to issue regulations providing that in the case of regulated investment companies and real estate investment trusts, COD income deferred under § 108(i) generally increases earnings and profits in the taxable year or years in which the deferred COD income is includible in gross income and not in the year that the deferred COD income is realized. State income tax return OID deductions deferred under § 108(i) generally decrease earnings and profits in the taxable year or years that the deferred OID deductions are deductible. State income tax return . State income tax return 12 Extension of Time to Make Election. State income tax return Under § 301. State income tax return 9100-1 of the Procedure and Administration Regulations, the Service may grant an extension of time to make a regulatory election. State income tax return An election is a regulatory election if the due date is prescribed by regulation or other published guidance of general applicability. State income tax return Section 301. State income tax return 9100-2(a) provides an automatic 12-month extension from the due date for making certain regulatory elections. State income tax return SECTION 3. State income tax return SCOPE This revenue procedure applies to taxpayers that realize COD income from a reacquisition after December 31, 2008, and before January 1, 2011, of an applicable debt instrument, as provided in § 108(i). State income tax return SECTION 4. State income tax return ELECTION PROCEDURES . State income tax return 01 In General. State income tax return (1) A taxpayer within the scope of this revenue procedure makes the § 108(i) election by— (a) Attaching a statement meeting the requirements of section 4. State income tax return 05 of this revenue procedure to the taxpayer’s timely filed (including extensions) original federal income tax return for the taxable year in which the reacquisition of the applicable debt instrument occurs, and (b) If applicable, satisfying the additional requirements of section 4. State income tax return 07, 4. State income tax return 08, 4. State income tax return 09, or 4. State income tax return 10 of this revenue procedure. State income tax return (2) The Service grants an automatic extension of 12 months from the due date prescribed in section 4. State income tax return 01(1)(a) of this revenue procedure for making the § 108(i) election. State income tax return The rules that apply to an automatic extension under § 301. State income tax return 9100-2(a) apply to this automatic extension. State income tax return . State income tax return 02 Section 108(i) Elections Made by Members of Consolidated Groups. State income tax return The common parent of a consolidated group makes the § 108(i) election on behalf of all members of the group. State income tax return See § 1. State income tax return 1502-77(a). State income tax return . State income tax return 03 Aggregation Rule. State income tax return A taxpayer within the scope of this revenue procedure may treat two or more applicable debt instruments that are part of the same issue and that are reacquired during the same taxable year as one applicable debt instrument for purposes of this revenue procedure. State income tax return A pass-through entity may not treat two or more applicable debt instruments as one applicable debt instrument under this section 4. State income tax return 03 if the owners and their ownership interests in the pass-through entity immediately prior to the reacquisition of each applicable debt instrument are not identical. State income tax return . State income tax return 04 Partial Elections. State income tax return (1) A taxpayer within the scope of this revenue procedure may make an election for any portion of COD income realized from the reacquisition of any applicable debt instrument. State income tax return Thus, for example, if a taxpayer realizes $100 of COD income from the reacquisition of an applicable debt instrument, the taxpayer may elect under § 108(i)(1) to defer only $40 of the $100 of COD income. State income tax return The taxpayer may exclude from income the portion of COD income that the taxpayer does not elect to defer under § 108(i) ($60 in this example) under § 108(a)(1)(A), (B), (C), or (D), if applicable. State income tax return (2) A taxpayer is not required to make an election for the same portion of COD income arising from each applicable debt instrument that it reacquires, but may make an election for different portions of COD income arising from different applicable debt instruments (whether or not part of the same issue). State income tax return Thus, for example, if a taxpayer realizes $100 of COD income from the reacquisition of an applicable debt instrument (Instrument A) and $100 of COD income from the reacquisition of a different applicable debt instrument (Instrument B), the taxpayer may elect to defer all or a portion of the COD income associated with Instrument A and none or a different portion of the COD income associated with Instrument B. State income tax return (3) A partnership that elects to defer less than all of the COD income realized from the reacquisition of an applicable debt instrument may determine, in any manner, the portion, if any, of a partner’s COD income amount that is the partner’s deferred amount and the portion, if any, of a partner’s COD income amount that is the partner’s included amount. State income tax return Thus, for example, one partner’s deferred amount may be zero while another partner’s deferred amount may equal that partner’s COD income amount (or any portion thereof). State income tax return A partner may exclude from income the partner’s included amount under § 108(a)(1)(A), (B), (C), or (D), if applicable. State income tax return The provisions of this section 4. State income tax return 04(3) apply for purposes of § 108(i) only and are not intended as an interpretation of or a change to existing law under § 704. State income tax return . State income tax return 05 Contents of Election Statement. State income tax return A statement meets the requirements of this section 4. State income tax return 05 if the statement— (1) Label. State income tax return States “Section 108(i) Election” across the top. State income tax return (2) Required information. State income tax return Provides, for each applicable debt instrument the reacquisition of which generates COD income that the taxpayer is electing to defer under § 108(i)— (a) The name and taxpayer identification numbers, if any, of the issuer or issuers of the applicable debt instrument; (b) A general description of the applicable debt instrument (including the issue and maturity dates) and, in the case of any person other than a C corporation, a general description of the person’s trade or business to which the applicable debt instrument is connected; (c) A general description of the reacquisition transaction or transactions generating the COD income (including the date(s) of the transaction(s)); (d) The total amount of COD income for the applicable debt instrument that results from the reacquisition (in the case of a partnership, the aggregate of the partners’ COD income amounts) and a general description of the manner in which this amount is calculated; (e) The amount of COD income for the applicable debt instrument that the taxpayer is electing to defer under § 108(i); (f) In the case of a partnership, a list of partners that have a deferred amount, their identifying information and each partner’s deferred amount; and in the case of an S corporation, a list of shareholders with COD income deferred under § 108(i), their identifying information and each shareholder’s share of the S corporation’s deferred COD income; and (g) In cases in which a new debt instrument is issued or deemed issued in exchange for the applicable debt instrument (including exchanges under § 108(e)(4), § 108(i)(2)(B), and § 1. State income tax return 1001-3), the issuer’s name, the issuer’s taxpayer identification number, if any, a general description of the new debt instrument and whether the new debt instrument has OID, and if the new debt instrument has OID, a schedule of the OID that the issuer expects to accrue each taxable year on the instrument and the amount of OID that the issuer expects to defer under § 108(i)(2) each taxable year. State income tax return . State income tax return 06 Supplemental information. State income tax return The statement described in section 4. State income tax return 05 of this revenue procedure may specify for each applicable debt instrument an amount greater than the amount identified in section 4. State income tax return 05(2)(e) of this revenue procedure that the taxpayer elects to defer under § 108(i) in the event the Service subsequently concludes that the taxpayer understated the amount of COD income described in section 4. State income tax return 05(2)(d) of this revenue procedure. State income tax return This additional amount of COD income the taxpayer elects to defer may be described as the entire additional COD income, or as a percentage of any additional COD income. State income tax return If the taxpayer is a partnership, the partnership must specify each partner’s share of the partnership’s additional COD income that would be deferred (the partner’s additional deferred amount), which the partnership may describe for each partner as the partner’s entire share of the partnership’s additional COD income or as a percentage of the partner’s share of the partnership’s additional COD income. State income tax return If the taxpayer is an S corporation, the S corporation must specify each shareholder’s share of the S corporation’s additional COD income that would be deferred, which the S corporation may describe for each shareholder as the shareholder’s entire share of the S corporation’s additional COD income or as a percentage of the shareholder’s share of the S corporation’s additional COD income. State income tax return In the case of partnerships and S corporations, the additional COD income and the portion of additional COD income that would be deferred are allocated or determined as provided in sections 2. State income tax return 08, 2. State income tax return 10 and, if applicable, 4. State income tax return 04(3) of this revenue procedure, respectively, as if the additional COD income was realized. State income tax return . State income tax return 07 Additional Requirements for Certain Partnerships Making a § 108(i) Election. State income tax return The rules of this section 4. State income tax return 07 apply to partnerships other than partnerships described in section 4. State income tax return 10 of this revenue procedure. State income tax return (1) Information filing on Schedule K-1 (Form 1065 and Form 1065-B). State income tax return For the taxable year in which the § 108(i) election is made, the partnership must report on the Schedule K-1 (Form 1065 or Form 1065-B), Partner’s Share of Income, Deductions, Credits, etc. State income tax return , in the manner specified in the instructions to the forms, for each partner § 108(i) information on an aggregate basis for all applicable debt instruments for which a § 108(i) election is made. State income tax return Partnerships reporting § 108(i) information on the 2008 Schedule K-1 (Form 1065 or Form 1065-B) must report for each partner on an aggregate basis for all applicable debt instruments for which a § 108(i) election is made: (a) The partner’s deferred amount that the partner must include in income in the current taxable year under § 108(i)(1) or § 108(i)(5)(D)(i) or (ii), in box 11 (“other income”) using code F for Schedule K-1 (Form 1065) or in box 9 (“other”) using code U for Schedule K-1 (Form 1065-B); (b) The partner’s share of the partnership’s OID deduction deferred under § 108(i)(2)(A)(i) that is allowable as a deduction in the current taxable year under § 108(i)(2)(A)(ii) or § 108(i)(5)(D)(i) or (ii), in box 13 (“other deductions”) using code W for Schedule K-1 (Form 1065) or in box 9 (“other”) using code U for Schedule K-1 (Form 1065-B); (c) The partner’s deferred amount that has not been included in income in the current or prior taxable years, in box 20 (“other information”) using code X for Schedule K-1 (Form 1065) or in box 9 (“other”) using code U for Schedule K-1 (Form 1065-B); (d) The partner’s share of the partnership’s OID deduction deferred under § 108(i)(2)(A)(i) that has not been deducted in the current or prior taxable years, in box 20 (“other information”) using code X for Schedule K-1 (Form 1065) or in box 9 (“other”) using code U for Schedule K-1 (Form 1065-B); (e) The partner’s deferred § 752 amount that is treated as a distribution of money to the partner under § 752 in the current taxable year, in box 20 (“other information”) using code X for Schedule K-1 (Form 1065) or in box 9 (“other”) using code U for Schedule K-1 (Form 1065-B); and (f) The partner’s deferred § 752 amount remaining as of the end of the current taxable year, in box 20 (“other information”) using code X for Schedule K-1 (Form 1065) or in box 9 (“other”) using code U for Schedule K-1 (Form 1065-B). State income tax return (2) Election information statement provided to partners. State income tax return The partnership must attach to the Schedule K-1 (Form 1065 or Form 1065-B) provided to each partner for the taxable year in which the § 108(i) election is made a statement satisfying the requirements of this section 4. State income tax return 07(2). State income tax return The partnership should not attach these statements to the Schedules K-1 that are filed with the Service, but must retain these statements, and each partner must retain that partner’s statement, in their respective books and records. State income tax return A statement meets the requirements of this section 4. State income tax return 07(2) if the statement— (a) Label. State income tax return States “Section 108(i) Election Information Statement for Partners” across the top. State income tax return (b) Required information. State income tax return Clearly identifies for each applicable debt instrument to which an election under § 108(i) applies— (i) The partner’s COD income amount, the partner’s deferred amount, and the partner’s included amount; (ii) The partner’s deferred amount that the partner must include in income in the current taxable year under § 108(i)(5)(D)(i) or (ii); (iii) The partner’s share of the partnership’s OID deduction deferred under § 108(i)(2)(A)(i) in the current taxable year; (iv) The partner’s share of the partnership’s OID deduction deferred under § 108(i)(2)(A)(i) that is allowable as a deduction in the current taxable year under § 108(i)(5)(D)(i) or (ii); (v) The partner’s share of each liability of the partnership described in section 4. State income tax return 05(2)(g) of this revenue procedure; (vi) The partner’s share of the decrease in the partnership liability that results from the reacquisition of the applicable debt instrument; (vii) The partner’s share of the decrease in the partnership liability that results from the reacquisition of the applicable debt instrument that is treated as a distribution of money to the partner under § 752 in the current taxable year; (viii) The partner’s deferred § 752 amount as described in section 2. State income tax return 09 of this revenue procedure; (ix) The partner’s additional deferred amount as described in section 4. State income tax return 06 of this revenue procedure; and (x) The date of the reacquisition transaction generating the COD income. State income tax return (c) If a partner fails to provide the written statement required by section 4. State income tax return 07(3) of this revenue procedure, the partnership must indicate that the amounts described in section 4. State income tax return 07(2)(b)(vii) and (viii) of this revenue procedure cannot be calculated because the partner did not provide the information necessary to report these amounts. State income tax return (3) Partner reporting requirements. State income tax return The partnership must make reasonable efforts prior to making a § 108(i) election to secure from each partner with a deferred amount for which it does not have the information necessary to compute the partner’s basis in its partnership interest (and its deferred § 752 amount as described in section 2. State income tax return 09 of this revenue procedure) a written statement signed under penalties of perjury that includes this information. State income tax return Each partner with a deferred amount must provide this written statement to the partnership within 30 days of the date of request by the partnership. State income tax return A partner’s failure to comply with this reporting requirement does not invalidate the partnership’s election under § 108(i) for an applicable debt instrument only if the partnership makes reasonable efforts before making the § 108(i) election to obtain the written statement from the partner and otherwise complies with the requirements of section 4 of this revenue procedure. State income tax return If a partner provides its written statement under this section 4. State income tax return 07(3) after the partnership has provided to the partner the Section 108(i) Election Information Statement for Partners, the partnership must provide to the partner a revised Section 108(i) Election Information Statement for Partners reporting the information required under section 4. State income tax return 07(2)(b)(vii) and (viii) of this revenue procedure and report the partner’s deferred § 752 amount on the partner’s Schedule K-1 (Form 1065 or Form 1065-B) in subsequent taxable years. State income tax return . State income tax return 08 Additional Requirements for an S Corporation Making a § 108(i) Election. State income tax return (1) Information filing on Schedule K-1 (Form 1120S). State income tax return For the taxable year in which the § 108(i) election is made, the S corporation must report on the Schedule K-1 (Form 1120S), Shareholder’s Share of Income, Deductions, Credits, etc. State income tax return , in the manner specified in the instructions to the forms, for each shareholder § 108(i) information on an aggregate basis for all applicable debt instruments for which a § 108(i) election is made. State income tax return S corporations reporting § 108(i) information on the 2008 Schedule K-1 (Form 1120S) must report for each shareholder, on an aggregate basis for all applicable debt instruments for which a § 108(i) election is made, the shareholder’s share of the S corporation’s: (a) COD income deferred under § 108(i) that the shareholder must include in income in the current taxable year under § 108(i)(1) or § 108(i)(5)(D)(i) or (ii), in box 10 (“other income”) using code E; (b) OID deduction deferred under § 108(i)(2)(A)(i) that is allowable as a deduction in the current taxable year under § 108(i)(2)(A)(ii), or § 108(i)(5)(D)(i) or (ii), in box 12 (“other deductions”) using code S; (c) COD income deferred under § 108(i) that has not been included in income in the current or prior taxable years, in box 17 (“other information”) using code T; and (d) OID deduction deferred under § 108(i)(2)(A)(i) that has not been deducted in the current or prior taxable years, in box 17 (“other information”) using code T. State income tax return (2) Election information statement provided to shareholders. State income tax return The S corporation must attach to the Schedule K-1 (Form 1120S) provided to each shareholder for the taxable year in which the § 108(i) election is made, a statement satisfying the requirements of this section 4. State income tax return 08(2). State income tax return The S corporation should not attach these statements to the Schedules K-1 that are filed with the Service, but must retain these statements, and each shareholder must retain that shareholder’s statement, in their respective books and records. State income tax return A statement meets the requirements of this section 4. State income tax return 08(2) if the statement— (a) Label. State income tax return States “Section 108(i) Election Information Statement for Shareholders” across the top. State income tax return (b) Required information. State income tax return Clearly identifies for each applicable debt instrument to which an election under § 108(i) applies, the shareholder’s share of the S corporation’s— (i) COD income that the S corporation elects to defer under § 108(i); (ii) COD income deferred under § 108(i) that the shareholder must include in income in the current taxable year under § 108(i)(5)(D)(i) or (ii); (iii) OID deduction deferred under § 108(i)(2)(A)(i) in the current taxable year; (iv) OID deduction deferred under § 108(i)(2)(A)(i) that is allowable as a deduction in the current taxable year under § 108(i)(5)(D)(i) or (ii); and (v) Additional COD income that would be deferred as described in section 4. State income tax return 06 of this revenue procedure. State income tax return . State income tax return 09 Section 108(i) Elections Made on Behalf of Certain Foreign Corporations. State income tax return The controlling domestic shareholder(s) (or common parent of the controlling domestic shareholder(s), if applicable) of a controlled foreign corporation or a noncontrolled § 902 corporation not otherwise required to file a return of tax may make the § 108(i) election on behalf of the foreign corporation by satisfying the requirements of § 1. State income tax return 964-1(c)(3). State income tax return Each controlling domestic shareholder must attach a statement identifying the foreign corporation and satisfying the requirements of section 4. State income tax return 05 of this revenue procedure and, if applicable, section 4. State income tax return 06 of this revenue procedure, to its federal income tax return for the taxable year ending within or with the taxable year of the foreign corporation for which the § 108(i) election is made. State income tax return . State income tax return 10 Section 108(i) Elections Made By Certain Foreign Partnerships. State income tax return The rules of this section 4. State income tax return 10 apply to a foreign partnership making a § 108(i) election that is not otherwise required to file a federal partnership return (“nonfiling foreign partnership”). State income tax return See § 1. State income tax return 6031(a)-1(b). State income tax return (1) A nonfiling foreign partnership making the election must attach a statement satisfying the requirements of section 4. State income tax return 05 of this revenue procedure and, if applicable, section 4. State income tax return 06 of this revenue procedure, to a partnership return satisfying the requirements of § 1. State income tax return 6031(a)-1(b)(5) it files with the Service. State income tax return In addition, a nonfiling foreign partnership must include in the information required in section 4. State income tax return 05(2)(d) and (e) of this revenue procedure the aggregate amounts for all partners as well as the aggregate amounts for all U. State income tax return S. State income tax return persons (as defined in § 7701(a)(30)) and controlled foreign corporation(s) that are partners with deferred amounts in the nonfiling foreign partnership (“affected partners”). State income tax return (2) The nonfiling foreign partnership must make the election, in accordance with § 1. State income tax return 6031(a)-1(b)(5), by the date provided in section 4. State income tax return 01(1)(a) of this revenue procedure, as if it had a filing obligation for the taxable year in which the reacquisition of the applicable debt instrument occurs. State income tax return (3) For each affected partner, the partnership must file with the Service a Schedule K-1 (Form 1065) and report on the Schedule K-1 (Form 1065) for the affected partner as provided in section 4. State income tax return 07(1) of this revenue procedure. State income tax return Except for this § 108(i) information, the partnership need not complete Part III of the Schedule K-1 (Form 1065). State income tax return The partnership must provide a copy of the respective Schedule K-1 (Form 1065) to each affected partner and must also attach to the Schedule K-1 (Form 1065) provided to each affected partner a statement satisfying the requirements of section 4. State income tax return 07(2) of this revenue procedure by the date provided in section 4. State income tax return 01(1)(a) of this revenue procedure. State income tax return The partnership should not attach any statement described in section 4. State income tax return 07(2) of this revenue procedure to the Schedules K-1 that are filed with the Service. State income tax return However, the partnership must retain the statements provided to the affected partners, and each affected partner must retain that partner’s statement, in their respective books and records. State income tax return (4) The partnership and each affected partner must satisfy the requirements of section 4. State income tax return 07(3) of this revenue procedure. State income tax return . State income tax return 11 Protective § 108(i) Election. State income tax return (1) In general. State income tax return A taxpayer may make a protective election under § 108(i) for an applicable debt instrument if the taxpayer concludes that a particular transaction does not result in the realization of COD income, reports the transaction on its federal income tax return in a manner consistent with the taxpayer’s conclusion, and would be within the scope of this revenue procedure if the taxpayer’s conclusion were incorrect. State income tax return If the Service at any time determines the taxpayer’s conclusion that the particular transaction does not result in the realization of COD income is incorrect, the taxpayer’s protective election is treated as a valid, irrevocable election under § 108(i). State income tax return Thus, if a taxpayer makes a protective election, the Service subsequently may require the taxpayer to report COD income deferred pursuant to the valid and irrevocable protective election even if the statute of limitations has expired for the year in which the COD income was realized and the protective election was made. State income tax return A taxpayer makes a protective election by attaching a statement satisfying the requirements of this section 4. State income tax return 11(1) to the taxpayer’s original federal income tax return within the period described in section 4. State income tax return 01(1)(a) of this revenue procedure. State income tax return The taxpayer also must attach the election to its federal income tax return in each of the 8 or 9 taxable years, as applicable, following the taxable year of the election. State income tax return A statement meets the requirements of this section 4. State income tax return 11(1) if the statement— (a) States “Section 108(i) Protective Election” across the top; (b) Provides the information required under section 4. State income tax return 05(2)(a), (b), and (c) of this revenue procedure; (c) Provides that the amounts described in sections 4. State income tax return 05(2)(d) and (e) of this revenue procedure are zero; and (d) Provides the information described in section 4. State income tax return 06 of this revenue procedure. State income tax return (2) Statements provided to shareholders and partners. State income tax return (a) For each applicable debt instrument, a partnership or S corporation that makes a protective election must attach to the Schedule K-1 (Form 1065, Form 1065-B, or Form 1120S) it provides each of its partners or shareholders, as the case may be, for the taxable year in which the protective election is made a statement containing the information described in section 4. State income tax return 11(1)(b) of this revenue procedure (an S corporation need not provide its shareholders with the date(s) of the transaction(s) that would constitute the reacquisition transaction or transactions) and the partner’s or shareholder’s share of the additional COD income that would be deferred as described in section 4. State income tax return 11(1)(d) of this revenue procedure. State income tax return (b) The partnership or S corporation should not attach the statements described in this section 4. State income tax return 11(2) to the Schedules K-1 that are filed with the Service but must retain these statements, and each partner and shareholder must retain that partner’s or shareholder’s statement, in their respective books and records. State income tax return . State income tax return 12 Election-Year Reporting by Tiered Pass-Through Entities. State income tax return (1) A partnership required to file a U. State income tax return S. State income tax return partnership return other than under § 1. State income tax return 6031(a)-1(b)(5), or an S corporation, that receives a Schedule K-1 (Form 1065 or Form 1065-B) reflecting its share of any items listed in section 4. State income tax return 07(1) of this revenue procedure, must report on the Schedules K-1 (Form 1065, Form 1065-B, or Form 1120S) to its partners or shareholders, as the case may be, each partner’s or shareholder’s share of those items (an S corporation only reports to its shareholders the items described in section 4. State income tax return 07(1)(a) through (d) of this revenue procedure). State income tax return (2) If a partnership described in section 4. State income tax return 12(1) of this revenue procedure receives a statement described in sections 4. State income tax return 07(2) or 4. State income tax return 10(3) of this revenue procedure or this section 4. State income tax return 12(2), it must provide each of its partners a statement containing the partner’s share of each of the items listed on each statement received by the partnership, including the information described in section 4. State income tax return 07(2)(b)(x) of this revenue procedure. State income tax return If an S corporation receives a statement described in sections 4. State income tax return 07(2) or 4. State income tax return 10(3) of this revenue procedure or this section 4. State income tax return 12(2), it must provide each of its shareholders a statement containing the shareholder’s share of each of the items listed on each statement received by the S corporation that are described in section 4. State income tax return 07(2)(b)(i), (ii), (iii), (iv) and (ix) of this revenue procedure. State income tax return The partnership or S corporation must attach this statement or statements to the Schedule K-1 (Form 1065, Form 1065-B, or Form 1120S) that it provides to each of its partners or shareholders, as the case may be, for the taxable year of the partnership or S corporation. State income tax return The partnership or S corporation should not attach these statements to the Schedules K-1 that are filed with the Service but must retain these statements, and each partner and shareholder must retain that partner’s or shareholder’s statement, in their respective books and records. State income tax return (3) A partnership that receives a statement described in this section 4 identifying its COD income amount with respect to an applicable debt instrument must allocate its COD income amount, without regard to § 108(i), to the partners in the partnership immediately before the reacquisition transaction in the manner in which the income would be included in the distributive shares of these partners under § 704 and the regulations thereunder, including § 1. State income tax return 704-1(b)(2)(iii). State income tax return The partnership may determine in any manner the portion, if any, of a partner’s COD income amount that is the partner’s deferred amount and the portion, if any, of a partner’s COD income amount that is the partner’s included amount. State income tax return No partner’s deferred amount with respect to an applicable debt instrument may exceed its COD income amount with respect to the applicable debt instrument, and the aggregate of deferred amounts of its partners with respect to an applicable debt instrument must equal the partnership’s deferred amount with respect to the applicable debt instrument. State income tax return The partnership allocates amounts described in section 4. State income tax return 06 of this revenue procedure under this section 4. State income tax return 12(3) as if the additional COD income was realized. State income tax return (4) The deferred § 752 amount for partners in a partnership making a § 108(i) election is calculated only for the partnership’s direct partners. State income tax return No further adjustment to the deferred § 752 amount is made to reflect the basis or other attributes of partners that are indirect partners in the partnership. State income tax return (5) If an S corporation receives a statement described in this section 4 identifying its COD income amount, deferred amount, included amount or additional COD income that would be deferred with respect to an applicable debt instrument, these amounts are shared pro rata only among those shareholders that are shareholders in the S corporation immediately before the reacquisition transaction. State income tax return (6) This paragraph 4. State income tax return 12(6) provides the rules for Category 1 and Category 2 filers of Form 8865, Return of U. State income tax return S. State income tax return Persons With Respect to Certain Foreign Partnerships, as defined in the instructions for Form 8865, if the foreign partnership, for which the Category 1 or Category 2 filer has a filing requirement, receives a Schedule K-1 (Form 1065 or Form 1065-B) reflecting the partnership’s share of any items listed in section 4. State income tax return 07(1) of this revenue procedure, or a statement described in sections 4. State income tax return 07(2) or 4. State income tax return 10(3) of this revenue procedure (because the foreign partnership owns an interest directly or indirectly in another partnership in which an election was made under § 108(i) with respect to that foreign partnership’s distributive share from the other entity). State income tax return (a) For each partner for whom the Category 1 filer is required to complete a Schedule K-1 (Form 8865) (which includes the Category 1 filer itself), the Category 1 filer must: (i) Include the information described in section 4. State income tax return 07(1) of this revenue procedure in the Schedule K-1 (Form 8865) that the Category 1 filer files with the Service and completes for the partner; (ii) Produce a statement containing the partner’s share of the items listed on each statement received by the partnership; and (iii) Attach the statement described in section 4. State income tax return 12(6)(a)(ii) of this revenue procedure to each Schedule K-1 (Form 8865) that it is required to provide to a partner of the foreign partnership. State income tax return (b) A Category 2 filer must include its share of the information described in section 4. State income tax return 07(1) on the Schedule K-1 (Form 8865) that it is required to complete. State income tax return Category 2 filers also must complete a statement containing their share of the items listed on each statement received by the partnership. State income tax return (c) The Category 1 and Category 2 filers should not attach the statements described in sections 4. State income tax return 12(6)(a)(ii) and 4. State income tax return 12(6)(b) of this revenue procedure, respectively, to the Schedules K-1 that are filed with the Service. State income tax return However, Category 1 filers must retain the statements they complete and each partner must retain its own statement, in their respective books and records. State income tax return (7) If as a result of § 108(i)(5)(D)(ii), a partner of a partnership described in section 4. State income tax return 12(1) of this revenue procedure or a shareholder of an S corporation described in section 4. State income tax return 12(1) of this revenue procedure must recognize items deferred under § 108(i), the partnership or S corporation must report these items on the Schedule K-1 (Form 1065, Form 1065-B, or Form 1120S) and statements provided to the partner or shareholder pursuant to section 4. State income tax return 12(1) and (2) of this revenue procedure. State income tax return Similar rules apply to Category 1 and Category 2 filers (Form 8865) described in section 4. State income tax return 12(6) of this revenue procedure. State income tax return (8) The provisions of section 4. State income tax return 12(2), (3), (5) and (6) of this revenue procedure also apply to a statement received that is described in section 4. State income tax return 11(2) of this revenue procedure, except that the information that must be provided are those items described in section 4. State income tax return 11(1)(b) of this revenue procedure (an S corporation need not provide its shareholders with the date(s) of the transaction(s) that would constitute the reacquisition transaction or transactions) and the share of the partner or shareholder in the amounts described in section 4. State income tax return 11(1)(d) of this revenue procedure. State income tax return SECTION 5. State income tax return REQUIRED INFORMATION STATEMENT . State income tax return 01 Annual Information Statements. State income tax return Pursuant to § 108(i)(7)(B), a taxpayer that makes an election under § 108(i) (except for a protective election under section 4. State income tax return 11(1) of this revenue procedure) must attach a statement meeting the requirements of section 5. State income tax return 02 of this revenue procedure to its federal income tax return for each taxable year beginning with the taxable year following the taxable year for which the taxpayer makes the election and ending with the first taxable year in which all items deferred under § 108(i) have been recognized. State income tax return . State income tax return 02 Contents of Statement. State income tax return A statement meets the requirements of this section 5. State income tax return 02 if the statement— (1) Label. State income tax return States “Section 108(i) Information Statement” across the top; (2) Required information. State income tax return Clearly identifies for each applicable debt instrument to which an election under § 108(i) applies— (a) COD income deferred under § 108(i) that is included in income in the current taxable year under § 108(i)(1); (b) COD income deferred under § 108(i) that is included in income in the current taxable year under § 108(i)(5)(D), including a description and date of the acceleration event described in § 108(i)(5)(D); (c) COD income deferred under § 108(i) that has not been included in income in the current or prior taxable years (in the case of a partnership, the aggregate of the partners’ deferred amounts that have not been included in income in the current or prior taxable years, and in the case of an S corporation, the S corporation’s COD income deferred under § 108(i) that has not been included in income in the current or prior taxable years); (d) OID deduction deferred under § 108(i)(2)(A)(i) that is allowable as a deduction in the current taxable year under § 108(i)(2)(A)(ii); (e) OID deduction deferred under § 108(i)(2)(A)(i) that is allowable as a deduction in the current taxable year under § 108(i)(5)(D); and (f) OID deduction deferred under § 108(i)(2)(A)(i) that has not been deducted in the current or prior taxable years. State income tax return (3) Election attached. State income tax return Includes a copy of the election statement described in section 4. State income tax return 05 of this revenue procedure. State income tax return . State income tax return 03 Additional Annual Reporting Requirements for Certain Partnerships. State income tax return The rules of this section 5. State income tax return 03 apply to partnerships other than partnerships described in section 5. State income tax return 05 of this revenue procedure. State income tax return (1) In general. State income tax return A partnership that makes an election under § 108(i) (except for a protective election under section 4. State income tax return 11(1) of this revenue procedure) must attach to its federal income tax returns the statements required under section 5. State income tax return 01 of this revenue procedure. State income tax return In addition, for each taxable year in which a statement is required under section 5. State income tax return 01 of this revenue procedure, the partnership must report on the Schedule K-1 (Form 1065 or Form 1065-B) for each partner § 108(i) information in the manner described in section 4. State income tax return 07(1) of this revenue procedure. State income tax return (2) Annual information statements provided to partners. State income tax return The partnership must attach to the Schedule K-1 (Form 1065) provided to each partner for each taxable year in which a statement is required under section 5. State income tax return 01 of this revenue procedure, a statement meeting the requirements of this section 5. State income tax return 03(2). State income tax return The partnership should not attach these statements to the Schedules K-1 that are filed with the Service, but must retain these statements, and each partner must retain that partner’s statement, in their respective books and records. State income tax return A statement meets the requirements of this section 5. State income tax return 03(2) if the statement— (a) Label. State income tax return States “Section 108(i) Annual Information Statement for Partners” across the top of the statement. State income tax return (b) Required information. State income tax return Clearly identifies for each applicable debt instrument to which a § 108(i) election applies— (i) The partner’s deferred amount that has not been included in income as of the end of the prior taxable year; (ii) The partner’s deferred amount that the partner must include in income in the current taxable year under § 108(i)(1); (iii) The partner’s deferred amount that the partner must include in income in the current taxable year under § 108(i)(5)(D)(i) or (ii); (iv) The partner’s deferred amount that has not been included in income in the current or prior taxable years; (v) The partner’s share of the partnership’s OID deduction deferred under § 108(i)(2)(A)(i) in the current taxable year; (vi) The partner’s share of the partnership’s OID deduction deferred under § 108(i)(2)(A)(i) that is allowable as a deduction in the current taxable year under § 108(i)(2)(A)(ii); (vii) The partner’s share of the partnership’s OID deduction deferred under § 108(i)(2)(A)(i) that is allowable as a deduction in the current taxable year under § 108(i)(5)(D)(i) or (ii); (viii) The partner’s share of the partnership’s OID deduction deferred under § 108(i)(2)(A)(i) that has not been deducted in the current or prior taxable years; and (ix) The partner’s deferred § 752 amount that is treated as a distribution of money to the partner under § 752 in the current taxable year and any remaining deferred § 752 amount. State income tax return If a partner fails to provide the written statement required by section 4. State income tax return 07(3) of this revenue procedure, the partnership must indicate that the amounts described in this section 5. State income tax return 03(2)(b)(ix) cannot be calculated because the partner did not provide the information necessary to report these amounts. State income tax return . State income tax return 04 Additional Annual Reporting Requirements for an S Corporation. State income tax return (1) In general. State income tax return An S corporation that makes an election under § 108(i) (except for a protective election under section 4. State income tax return 11(1) of this revenue procedure) must attach to its federal income tax returns the statements required under section 5. State income tax return 01 of this revenue procedure. State income tax return In addition, for each taxable year in which a statement is required under section 5. State income tax return 01 of this revenue procedure, the S corporation must report on the Schedule K-1 (Form 1120S) for each shareholder § 108(i) information in the manner described in section 4. State income tax return 08(1) of this revenue procedure. State income tax return (2) Annual information statements provided to shareholders. State income tax return The S corporation must attach to the Schedule K-1 (Form 1120S) provided to each shareholder for each taxable year in which a statement is required under section 5. State income tax return 01 of this revenue procedure a statement meeting the requirements of this section 5. State income tax return 04(2). State income tax return The S corporation should not attach these statements to the Schedules K-1 that are filed with the Service, but must retain these statements, and each shareholder must retain that shareholder’s statement, in their respective books and records. State income tax return A statement meets the requirements of this section 5. State income tax return 04(2) if the statement— (a) Label. State income tax return States “Section 108(i) Annual Information Statement for Shareholders” across the top; (b) Required information. State income tax return Clearly identifies for each applicable debt instrument to which an election under § 108(i) applies, the shareholder’s share of the S corporation’s— (i) COD income deferred under § 108(i) that has not been included in income as of the end of the prior taxable year; (ii) COD income deferred under § 108(i) that the shareholder must include in income in the current taxable year under § 108(i)(1); (iii) COD income deferred under § 108(i) that the shareholder must include in income in the current taxable year under § 108(i)(5)(D)(i) or (ii); (iv) COD income deferred under § 108(i) that has not been included in income in the current or prior taxable years; (v) OID deduction deferred under § 108(i)(2)(A)(i) in the current taxable year; (vi) OID deduction deferred under § 108(i)(2)(A)(i) that is allowable as a deduction in the current taxable year under § 108(i)(2)(A)(ii); (vii) OID deduction deferred under § 108(i)(2)(A)(i) that is allowable as a deduction in the current taxable year under § 108(i)(5)(D)(i) or (ii); and (viii) OID deduction deferred under § 108(i)(2)(A)(i) that has not been deducted in the current or prior taxable years. State income tax return . State income tax return 05 Additional Annual Reporting Requirements for Certain Foreign Partnerships. State income tax return (1) The rules of this section 5. State income tax return 05 apply to nonfiling foreign partnerships. State income tax return (2) A nonfiling foreign partnership that makes an election under § 108(i) (except for a protective election under section 4. State income tax return 11(1) of this revenue procedure) must file federal income tax returns with the Service containing the information under § 1. State income tax return 6031(a)-1(b)(5) for each taxable year in which a statement is required by section 5. State income tax return 01 of this revenue procedure. State income tax return (3) The nonfiling foreign partnership must attach to its federal income tax returns the statements required under section 5. State income tax return 01 of this revenue procedure, but only for that portion of the COD income allocated to affected partners. State income tax return (4) For each taxable year in which a statement is required under section 5. State income tax return 01 of this revenue procedure, the nonfiling foreign partnership must provide each affected partner a Schedule K-1 (Form 1065) reporting § 108(i) information in the manner described in section 4. State income tax return 07(1) of this revenue procedure. State income tax return Except for this § 108(i) information, the partnership need not complete Part III of the Schedule K-1 (Form 1065). State income tax return The partnership must provide each affected partner with a copy of the Schedule K-1 (Form 1065) by the date provided in § 1. State income tax return 6031(b)-1T(b). State income tax return The partnership must attach the Schedules K-1 (Form 1065) to the federal income tax returns filed with the Service pursuant to section 5. State income tax return 05(2) of this revenue procedure. State income tax return (5) For each taxable year for which a statement is required under section 5. State income tax return 01 of this revenue procedure, the nonfiling foreign partnership must attach to each affected partner’s Schedule K-1 (Form 1065) a statement meeting the requirements of section 5. State income tax return 03(2) of this revenue procedure. State income tax return The partnership should not attach these statements to the Schedules K-1 that are filed with the Service, but must retain the statements, and each partner must retain that partner’s statement, in their respective books and records. State income tax return . State income tax return 06 Information Statements Made on Behalf of Certain Foreign Corporations. State income tax return Each controlling domestic shareholder must attach a statement identifying the foreign corporation and meeting the requirements of section 5. State income tax return 02 of this revenue procedure to the shareholder’s federal income tax return for each taxable year for which a statement is required under section 5. State income tax return 01 of this revenue procedure. State income tax return . State income tax return 07 Additional Annual Reporting Requirements for Tiered Pass-Through Entities. State income tax return (1) A partnership required to file a U. State income tax return S. State income tax return partnership return other than under § 1. State income tax return 6031(a)-1(b)(5), or an S corporation, that receives a Schedule K-1 (Form 1065 or Form 1065-B) described in the second sentence of section 5. State income tax return 03(1) of this revenue procedure reflecting its share of any § 108(i) information must report on the Schedules K-1 (Form 1065, Form 1065-B, or Form 1120S) to its partners or shareholders, as the case may be, each partner’s or shareholder’s share of those items (an S corporation only reports to its shareholders the items described in section 4. State income tax return 07(1)(a) through (d) of this revenue procedure). State income tax return (2) If a partnership described in section 5. State income tax return 07(1) of this revenue procedure receives a statement described in sections 5. State income tax return 03(2) or 5. State income tax return 05(5) of this revenue procedure or this section 5. State income tax return 07(2), it must provide each of its partners a statement containing the partner’s share of each of the items listed on each statement received by the partnership. State income tax return If an S corporation receives a statement described in sections 5. State income tax return 03(2) or 5. State income tax return 05(5) of this revenue procedure or this section 5. State income tax return 07(2), it must provide each of its shareholders a statement containing the shareholder’s share of each of the items listed on each statement received by the S corporation that are described in section 5. State income tax return 03(2)(b)(i) through (viii) of this revenue procedure. State income tax return The partnership or S corporation must attach the statement or statements to the Schedule K-1 (Form 1065 or Form 1065-B) or Schedule K-1 (Form 1120S) that is provided to each of its partners or shareholders, as the case may be, for the taxable year of the partnership or S corporation. State income tax return The partnership or S corporation should not attach these statements to the Schedules K-1 that are filed with the Service, but must retain these statements, and each partner and shareholder must retain that partner’s or shareholder’s statement, in their respective books and records. State income tax return (3) This paragraph 5. State income tax return 07(3) provides the rules for persons described in section 4. State income tax return 12(6) of this revenue procedure if the foreign partnership, for which the Category 1 or 2 filer has a filing requirement, receives a Schedule K-1 (Form 1065 or Form 1065-B) reflecting the partnership’s share of any items described in the second sentence of section 5. State income tax return 03(1) of this revenue procedure, or a statement described in sections 5. State income tax return 03(2) or 5. State income tax return 05(5) of this revenue procedure (because the foreign partnership owns an interest directly or indirectly in another partnership in which an election was made under § 108(i) with respect to that foreign partnership’s distributive share from the other entity). State income tax return (a) For each partner for whom the Category 1 filer is required to complete a Schedule K-1 (Form 8865) (which includes the Category 1 filer itself), the Category 1 filer must: (i) Include the information described in section 4. State income tax return 07(1) of this revenue procedure in the Schedule K-1 (Form 8865) that the Category 1 filer files with the Service and completes for the partner; (ii) Produce a statement containing the partner’s share of the items listed on each statement received by the partnership; and (iii) Attach the statement described in section 5. State income tax return 07(3)(a)(ii) of this revenue procedure to each Schedule K-1 (Form 8865) that it is required to provide to a partner of the foreign partnership. State income tax return (b) A Category 2 filer must include its share of the information described in section 4. State income tax return 07(1) on the Schedule K-1 (Form 8865) that it is required to complete. State income tax return Category 2 filers also must complete a statement containing their share of the items listed on each statement received by the partnership. State income tax return (c) The Category 1 and Category 2 filers should not attach the statements described in sections 5. State income tax return 07(3)(a)(ii) and 5. State income tax return 07(3)(b) of this revenue procedure, respectively, to the Schedules K-1 that are filed with the Service. State income tax return However, Category 1 filers must retain the statements they complete and each partner must retain its own statement, in their respective books and records. State income tax return (4) If as a result of § 108(i)(5)(D)(ii), a partner of a partnership described in section 5. State income tax return 07(1) of this revenue procedure or a shareholder of an S corporation described in section 5. State income tax return 07(1) of this revenue procedure must recognize items deferred under § 108(i), the partnership or S corporation must report these items on the Schedule K-1 (Form 1065, Form 1065-B, or Form 1120S) and statements provided to the partner or shareholder pursuant to section 5. State income tax return 07(1) and (2) of this revenue procedure. State income tax return Similar rules apply to Category 1 and Category 2 filers (Form 8865) described in section 4. State income tax return 12(6) of this revenue procedure. State income tax return SECTION 6. State income tax return EFFECTIVE DATE This revenue procedure is effective for reacquisitions of applicable debt instruments in taxable years ending after December 31, 2008. State income tax return SECTION 7. State income tax return TRANSITION RULE . State income tax return 01 Noncomplying Election. State income tax return Except as otherwise provided in this section 7. State income tax return 01, the Service will treat a § 108(i) election as effective if a taxpayer files an election with the taxpayer’s federal income tax return filed on or before September 16, 2009, using any reasonable procedure to make the election. State income tax return However, an election that does not comply with section 4 of this revenue procedure will not be effective unless the taxpayer on or before November 16, 2009, files an amended return for the taxable year of the election and complies with the requirements of section 4 of this revenue procedure. State income tax return . State income tax return 02 Modification of Election. State income tax return A taxpayer that files a § 108(i) election on or before September 16, 2009, may modify that election by filing an amended return on or before November 16, 2009 (for example, to modify the amount of COD income the taxpayer elects to defer). State income tax return To be effective, a modification of an election described in the preceding sentence must satisfy the requirements for an election described in section 4 of this revenue procedure. State income tax return . State income tax return 03 Notations. State income tax return A taxpayer that files the amended return on paper must write “Section 108(i) Election” on the top of the first page. State income tax return A taxpayer that files the amended return electronically should indicate “Section 108(i) Election” on the return. State income tax return See Publication 4163, Modernized e-File (MeF) Information for Authorized IRS e-file Providers for Business Returns Tax Year 2008 for more details. State income tax return SECTION 8. State income tax return PAPERWORK REDUCTION ACT The collection of information contained in this revenue procedure has been reviewed and approved by the Office of Management and Budget in accordance with the Paperwork Reduction Act (44 U. State income tax return S. State income tax return C. State income tax return 3507) under control number 1545-2147. State income tax return An agency may not conduct or sponsor, and a person is not required to respond to, a collection of information unless the collection of information displays a valid OMB control number. State income tax return The collection of information in this revenue procedure is in sections 4, 5 and 7. State income tax return This information is required to determine the amount of income and deductions a taxpayer elects to defer and to track those amounts until the taxpayer has reported all deferred income and deductions on the taxpayer’s tax return. State income tax return This information will be used during examination to verify that a taxpayer has correctly deferred income and deductions. State income tax return The collection of information is required to obtain a benefit. State income tax return The likely respondents are C corporations, shareholders of S corporations, partners of partnerships, and other individuals engaged in a trade or business, that reacquire applicable debt instruments in 2009 or 2010. State income tax return The estimated total annual reporting burden is 300,000 hours. State income tax return The estimated annual burden per respondent varies from 1 to 8 hours, depending on individual circumstances, with an estimated average of 6 hours. State income tax return The estimated number of respondents is 50,000. State income tax return Books or records relating to a collection of information must be retained as long as their contents may become material in the administration of any internal revenue law. State income tax return Generally, tax returns and return information are confidential, as required by § 6103. State income tax return DRAFTING INFORMATION The principal authors of this revenue procedure are Megan A. State income tax return Stoner of the Office of Associate Chief Counsel (Passthroughs & Special Industries) and Craig Wojay of the Office of Associate Chief Counsel (Income Tax & Accounting). State income tax return For further information regarding this revenue procedure, contact Megan A. State income tax return Stoner at (202) 622-3070 for questions involving partnerships and S corporations, William E. State income tax return Blanchard at (202) 622-3950 for questions involving OID, Ronald M. State income tax return Gootzeit at (202) 622-3860 for questions involving foreign entities, Robert Rhyne at (202) 622-7790 for questions involving earnings and profits and consolidated groups, and Craig Wojay at (202) 622-4920 for questions on § 108(i) generally (not toll-free calls). State income tax return Prev  Up  Next   Home   More Internal Revenue Bulletins