Updated October 17, 2026. Quick answer: Form 8275 is the Disclosure Statement used by taxpayers and tax return preparers to disclose items or positions on a return. The instructions say it is filed to avoid certain portions of the accuracy-related penalty when the return position has a reasonable basis. A position contrary to a regulation goes on Form 8275-R instead.
What Form 8275 is for
The instructions open with the purpose: “Form 8275 is used by taxpayers and tax return preparers to disclose items or positions, except those taken contrary to a regulation, that are not otherwise adequately disclosed on a tax return to avoid certain penalties.” “The form is filed to avoid the portions of the accuracy-related penalty due to disregard of rules or to a substantial understatement of income tax for non-tax shelter items if the return position has a reasonable basis.”
The top of the form carries the dividing line with the regulation form: “Don’t use this form to disclose items or positions that are contrary to Treasury regulations. Instead, use Form 8275-R, Regulation Disclosure Statement.” The form is attached to the return: “Attach to your tax return.”
Who files and what cannot be avoided by disclosure
“Form 8275 is filed by individuals, corporations, pass-through entities, and tax return preparers.” For pass-through items, “disclosure should be made on the tax return of the entity.” “If the entity doesn’t make the disclosure, the partner (or shareholder, etc.) can make adequate disclosure of these items.”
Disclosure does not reach every part of the penalty. “The portion of the accuracy-related penalty attributable to the following types of misconduct cannot be avoided by disclosure on Form 8275.” The list begins with “Negligence.” and “Disregard of regulations.” and also names “Any substantial understatement of income tax on a tax shelter item.” and “Any claim of tax benefits from a transaction lacking economic substance (within the meaning of section 7701(o)) or failing to meet the requirements of any similar rule of law.”
Annual guidance can also stand in for the form. “You don’t have to file Form 8275 for items that meet the requirements listed in this revenue procedure.” For example, “Generally, you will have met the requirements for adequate disclosure of a charitable contribution deduction if you complete the Gifts to Charity section of Schedule A (Form 1040), Itemized Deductions, supply all required information, and attach all related forms required pursuant to statutes or regulations.”
Penalty amounts as printed
The accuracy-related penalty has several rates. The instructions list the underlying categories and then the rates, reproduced here.
| Item | As printed in the instructions |
|---|---|
| Accuracy-related penalty | “Generally, the accuracy-related penalty is 20% of any portion of a tax underpayment attributable to:” |
| Gross valuation misstatements | “The penalty is 40% of any portion of a tax underpayment attributable to one or more gross valuation misstatements in (3), (4), (5), or (10) above if the applicable dollar limitation under section 6662(h)(2) is met.” |
| Undisclosed foreign financial asset | “The penalty is 40% of any portion of an underpayment that is attributable to any undisclosed foreign financial asset understatement in (7) above.” |
| Section 170(p) overstatement | “The penalty is 50% of any portion of an underpayment attributable to one or more overstatements of the deduction provided in section 170(p) in (9) above.” |
A reasonable cause exception is also printed: “Generally, no accuracy-related penalty will be imposed on any portion of an underpayment if you show that there was reasonable cause for that portion and that you acted in good faith with respect to that portion.” Underpayment penalties for estimated tax are a different matter, covered on the Form 2210 page.
Adequate disclosure, reasonable basis and substantial understatement
“Generally, you can avoid the disregard of rules and substantial understatement portions of the accuracy-related penalty if the position is adequately disclosed and the position has at least a reasonable basis.” On the standard itself, “Reasonable basis is a relatively high standard of tax reporting that is significantly higher than not frivolous or not patently improper.” “The reasonable basis standard isn’t satisfied by a return position that is merely arguable.”
Records matter as well: “If you failed to keep proper books and records or failed to properly substantiate the items, you cannot avoid the penalty by disclosure.”
The substantial understatement thresholds are printed in two forms.
| Who | As printed in the instructions |
|---|---|
| Most taxpayers | “There is a substantial understatement of income tax if the amount of the understatement for any tax year exceeds the greater of:” |
| Corporations | “An understatement of a corporation (other than an S corporation or a personal holding company, as defined in section 542) is substantial if it exceeds in any year the lesser of:” |
Each alternative is a short numbered list in the instructions. The first alternative reads “10% of the tax required to be shown on the return for the tax year, or” and the second is a dollar amount printed in the instructions. For a corporation the alternatives are paired with a larger dollar amount, also shown in the instructions.
What each part of the form asks
The instructions begin the line-by-line section with “Be sure to provide all of the information requested in Parts I, II, and III (if applicable).” “Your disclosure will be considered adequate if you file Form 8275 and provide the required information in detail.”
| Part | As printed |
|---|---|
| Part I, column (a) | “If you are disclosing a position contrary to a rule (such as a statutory provision or IRS revenue ruling), you must identify the rule in column (a).” |
| Part I, column (b) | “Identify the item by name.” |
| Part I, column (c) | “Enter a complete description of the item(s) you are disclosing.” |
| Part I, columns (d) to (f) | “Enter the location of the item(s) by identifying the form number or schedule in column (d), the line number in column (e), and the amount of the item(s) in column (f).” |
| Part II | “Your disclosure statement must include a description of the relevant facts affecting the tax treatment of the item.” |
| Part III | “Complete this part only if you are making adequate disclosure for a pass-through item.” |
| Part IV | “Use Part IV on page 2 if you need more space for Parts I and/or II.” |
The form is the vehicle. “If Form 8275 isn’t completed and attached to the return, the disclosure won’t be considered valid even if the information described above is provided using another method, such as a different form or an attached letter.”
How to file, carryovers and recurring items
“File Form 8275 with your original tax return. Keep a copy for your records.” “You may be able to file Form 8275 with an amended return.”
Separate forms are needed in two situations: “To adequately disclose items reported by a pass-though entity, you must complete and file a separate Form 8275 for items reported by each entity.” “To adequately disclose a position or positions related to more than one foreign entity, you must complete and file a separate Form 8275 for each foreign entity.”
Items that repeat need a new form each year: “However, if you disclose items of a recurring nature (such as depreciation expense), you must file Form 8275 for each tax year in which the item occurs.” Depreciation for rental real estate is covered on the Form 4562 page. A position that is contrary to a rule and relates to a reportable transaction as defined in Regulations section 1.6011-4(b) has an extra step: “you must also make the disclosure as indicated in Regulations section 1.6011-4(d).” That form is described on the Form 8886 page, Form 8886 instructions.
Tax return preparer penalties
The instructions print a separate penalty for the person who prepares a return: “A preparer who files a return or claim for refund is subject to a penalty in an amount equal to the greater of $1,000 or 50% of the income derived (or to be derived) by the tax return preparer, with respect to the return or claim, for taking a position which the preparer knew or reasonably should have known would understate any part of the liability if:” one of the listed conditions applies, such as there is or was no substantial authority for the position. A defense is printed as well: “The penalty won’t apply if it can be shown that there was reasonable cause for the understatement and that the preparer acted in good faith.”
A separate disclosure sentence applies to the higher penalty: “A preparer isn’t considered to have recklessly or intentionally disregarded a rule if a position is adequately disclosed and has a reasonable basis.” Choosing a preparer is discussed on the tax preparer credentials page.
Which revision applies
The edition read for this page is Form 8275 (Rev. October 2024) and the Instructions for Form 8275 (Rev. October 2024), which are the revisions irs.gov served when they were read on 2026-10-17. Check the revision printed on the form being filed, because a later revision can change the penalty list, the thresholds and the part layout.
Common mistakes
- Using Form 8275 for a position that is contrary to a regulation. The form’s own heading says to use Form 8275-R for that case.
- Attaching a letter or a copy of an agreement instead of the form. The instructions say that if Form 8275 is not completed and attached, the disclosure is not valid even when the information is provided by another method.
- Expecting disclosure to cover negligence or a lack of records. The instructions list negligence among the penalty portions that cannot be avoided by disclosure, and say that missing books and records cannot be cured by disclosure.
Related: Form 8886 reportable transaction disclosure, Form 4562 depreciation, Form 2210 underpayment penalty, tax preparer credentials, Form 1065 partnership return, and Form 1120-S S corporation return.
Sources
- Form 8275 (Rev. October 2024), Disclosure Statement: 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
Read from the IRS documents linked above on October 17, 2026. General information, not tax advice. Your own facts decide the outcome, and a preparer, the account provider or the IRS is the right place to confirm anything consequential.