Form 8874 A PDF Details

The Form 8874-A, revised in December 2011 by the Department of the Treasury and the Internal Revenue Service (IRS), serves a critical role in the administration of the New Markets Credit, a program designed to incentivize investment in low-income communities. This form functions as a notice that must be provided by Qualified Community Development Entities (CDEs) to taxpayers who make a qualified equity investment, ensuring these investors are informed of their entitlement to claim the New Markets Credit. Detailed within the form are various sections including the identification of the investing taxpayer, the amount of the qualified investment, a breakdown of the allowable credit over a period of up to seven years, and certification by the CDE that the investment qualifies under the program. It is a condition that this form be filed with the IRS and a copy sent to the taxpayer within 60 days of making the investment, emphasizing the form's role in both informing investors and maintaining compliance with relevant tax laws. Additionally, it includes instructions on where to file, when to file, and other pertinent information necessary for both the CDEs and the investors to understand their obligations and the benefits under the New Markets Credit program. Given its significance, the form underscores a crucial step in facilitating economic development initiatives by encouraging investments in underserved areas, all the while detailing specific requirements and procedural guidelines for rightful claim of tax credits under this initiative.

QuestionAnswer
Form NameForm 8874 A
Form Length2 pages
Fillable?No
Fillable fields0
Avg. time to fill out30 sec
Other namesf8874a_accessib le 8874 a form

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Form 8874-A

(Rev. December 2011)

Department of the Treasury Internal Revenue Service

Notice of Qualified Equity Investment for

New Markets Credit

OMB No. 1545-2065

1

Name of qualified community development entity (CDE)

2

EIN of qualified CDE

 

 

 

 

3

If applicable, name of parent taxpayer with whom CDE files

4

If applicable, EIN of parent taxpayer with whom CDE files

 

a consolidated tax return

 

a consolidated tax return

 

 

 

 

5

Name of taxpayer making qualified equity investment

6

TIN of taxpayer making qualified equity investment

 

 

 

 

7

Date of qualified equity investment (mm/dd/yyyy)

8

Amount of qualified equity investment

 

 

 

 

9

Total allowable credit

 

 

 

 

 

 

10a

Allowable credit: Year 1

 

 

bAllowable credit: Year 2

cAllowable credit: Year 3

dAllowable credit: Year 4

eAllowable credit: Year 5

fAllowable credit: Year 6

gAllowable credit: Year 7

Please

Sign

Here

Under penalties of perjury, I declare that the qualified equity investment identified above was received by the CDE identified above.

▲

 

 

Signature of authorized official of CDE

Date

 

 

 

 

Type or print name

 

For Paperwork Reduction Act Notice, see instructions.

Cat. No. 49311G

Form 8874-A (Rev. 12-2011)

Form 8874-A (Rev. 12-2011)

Page 2

 

 

General Instructions

Section references are to the Internal Revenue Code unless otherwise noted.

Purpose of Form

CDEs must provide notice to any taxpayer who acquires a qualified equity investment in the CDE at its original issue that the equity investment is a qualified equity investment entitling the taxpayer to claim the new markets credit. This form is used to make the notification as required under Regulations section 1.45D-1(g)(2)(i)(A).

Where To File

Department of the Treasury

Internal Revenue Service Center

Philadelphia, PA 19255-0549

When To File

The original signed form must be provided by the CDE to the taxpayer no later than 60 days after the date the taxpayer makes the investment in the CDE. Send a copy of the form to the IRS at the address listed above. Keep a copy for your records.

A separate form must be provided for each qualified equity investment.

Additional Information

For more details, see Form 8874, New Markets Credit, section 45D, Regulations section 1.45D-1, and www.cdfifund.gov.

Paperwork Reduction Act Notice

We ask for the information on this form to carry out the Internal Revenue laws of the United States. You are required to give us the information. We need it to ensure that you are complying with these laws and to allow us to figure and collect the right amount of tax.

You are not required to provide the information requested on a form that is subject to the Paperwork Reduction Act unless the form displays a valid OMB control number. Books or records relating to a form or its instructions must be retained as long as their contents may become material in the administration of any Internal Revenue law. Generally, tax returns and return information are confidential, as required by section 6103.

The time needed to complete and file this form will vary depending on individual circumstances. The estimated average time is:

Recordkeeping

4 hr., 32 min.

Learning about the

 

 

 

law or the form

. .

24

min.

Preparing and sending

 

 

 

the form to the IRS

. .

28

min.

If you have comments concerning the accuracy of these time estimates or suggestions for making this form simpler, we would be happy to hear from you. You can email us at: taxforms@irs.gov. Enter “Form 8874-A Comment” on the subject line. Or write to: Internal Revenue Service, Tax Products Coordinating Committee, SE:W:CAR:MP:T:M:S, 1111 Constitution Ave. NW, IR-6526, Washington, DC 20224. Do not send the form to this address. Instead, see Where To File above.

How to Edit Form 8874 A Online for Free

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This document will require you to enter specific information; in order to ensure consistency, please make sure to take heed of the next tips:

1. You have to complete the Form 8874 A correctly, so pay close attention when filling in the parts including all these fields:

How one can fill out Form 8874 A step 1

2. Once the last array of fields is done, you need to add the essential particulars in e Allowable credit Year, f Allowable credit Year, g Allowable credit Year, Under penalties of perjury I, Please Sign Here, Signature of authorized official, Type or print name, Date, For Paperwork Reduction Act Notice, Cat No G, and Form A Rev allowing you to proceed further.

The best ways to fill out Form 8874 A step 2

Always be very careful when completing g Allowable credit Year and Cat No G, since this is the part in which a lot of people make a few mistakes.

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