Get the free Form 8937 - aicpa

This form is used to report organizational actions that affect the basis of securities, providing details about the issuer, the action taken, and the implications for U.S. taxpayers regarding security

How to fill out form 8937 - aicpa

How to fill out Form 8937

1. Obtain Form 8937 from the IRS website or your tax software.
2. Fill out the top section with information about the reporting entity, including name, address, and Employer Identification Number (EIN).
3. In Part 1, describe the organizational action that affects the securities, including type, date, and details of the action.
4. In Part 2, provide a detailed analysis of the consequences of the action on shareholders, including the basis of securities before and after the action.
5. Complete Part 3 by reporting the data for each applicable security, providing specific information like the CUSIP number and the number of shares or units involved.
6. Review all entries for accuracy and completeness, ensuring all required information is included.
7. Sign and date the form, and submit it to the IRS as directed.

Who needs Form 8937?

1. Corporations or entities that undergo organizational actions affecting securities.
2. Entities that are required to report adjustments to the basis of securities due to stock splits, mergers, or other capital changes.
3. Shareholders needing to understand adjustments impacting their investment basis.

People Also Ask about

What is the penalty for failing to file information returns?

The penalty imposed under section 6721(a) for a failure to file timely or for a failure to include correct information will be $100 in lieu of $250 if the failure is corrected after the 30-day period described in paragraph (b)(1) of this section but on or before August 1 of the year in which the required filing date

What do I do with form 8937?

Purpose of Form 8937: Form 8937 is used to report organizational actions that may affect the basis of securities, such as stock splits, mergers, acquisitions, spin-offs, and other similar transactions. The form provides information to both the issuer of the securities and the holder or recipient of the securities.

What does 8937 mean?

File Form 8937 when an organizational action affects the basis of holders of a security or holders of a class of the security. For example, you must file Form 8937 if you make a nontaxable cash distribution to shareholders or if you make a nontaxable stock distribution to shareholders, including a stock split.

What is the penalty for filing Form 8937?

Failure-to-File Penalties. Issuers are subject to a penalty of $100 per Form, up to $1.5 million.

What is the penalty for failing to file a partnership return?

Failure to file partnership return The penalty is calculated by multiplying an inflation-adjusted amount ($235 for returns required to be filed in 2024) by the number of persons who were partners in the partnership throughout the tax year, for each month, not to exceed 12 months.

What is the penalty for not filing form 5471?

Ownership of foreign corporations Penalty Computation: You may be subject to a penalty of $10,000 for each failure to file a complete and correct Form 5471 by the due date.

What do I do with Form 8937?

Purpose of Form 8937: Form 8937 is used to report organizational actions that may affect the basis of securities, such as stock splits, mergers, acquisitions, spin-offs, and other similar transactions. The form provides information to both the issuer of the securities and the holder or recipient of the securities.

For pdfFiller’s FAQs

What is Form 8937?

Form 8937 is a tax form used by corporations to report organizational actions that affect the basis of the securities held by their shareholders.

Who is required to file Form 8937?

Corporations that engage in organizational actions affecting the basis of securities are required to file Form 8937.

How to fill out Form 8937?

To fill out Form 8937, you need to provide information about the corporation, the date of the organizational action, the type of action taken, and the effect on the basis of securities. It must be filed electronically for all required actions.

What is the purpose of Form 8937?

The purpose of Form 8937 is to inform the IRS and shareholders about actions that might affect the shareholders' tax basis in their securities.

What information must be reported on Form 8937?

Form 8937 requires reporting the corporation's name, the title of the security, the date of the organizational action, a description of the action, and the details regarding the adjustment of the basis.