Instructions for Form 8886 (12/2005)

How To Complete Form 8886

In order to be considered complete, Form 8886 must be completed in its entirety with all required attachments. Do not simply write “See Attached.” If the information required exceeds the space provided, complete as much information as possible in the available space and attach the remaining information on additional sheets. The additional sheets must be in the same order as the lines to which they correspond. You must also include your name and identifying number at the top of each additional sheet.

Item A

Enter the form number and year of the tax return with which this Form 8886 is filed (for example, Form 1040). If the tax return has a calendar tax year, enter the year shown on the return (for example, 2005). If it is a fiscal year return, enter the date the fiscal year ends using the mm/dd/yyyy format (for example, 06/30/2006).

Item B

Check all the box(es) that apply.

Initial year filer. If this is the first year that you are filing a Form 8886 to disclose this transaction, check this box and file a duplicate copy of the form with OTSA (see When and How To File above).

Protective disclosure. You may indicate that you are filing on a protective basis by checking this box (under the option provided in Regulations section 1.6011-4(f)).

Line 1a

Enter the name, if any, by which the transaction is known or commonly referred to. If no name exists, provide a short identifying description of this transaction that distinguishes it from other reportable transactions in which you have participated (or may participate in the future). If you are reporting more than one transaction and the transactions have different names, enter all names in the space provided. If additional space is needed, write “See Additional List” and attach a list.

Line 1b

Enter the first year that you participated in this transaction in year format (yyyy). If you are reporting for more than one transaction, enter all initial years in the space provided. If additional space is needed, write “See Additional List” and attach a list.

This may not be the same as the year for which you are disclosing a reportable transaction.

Line 1c

Enter your material advisor registration number(s) (9 digits) and/or the tax shelter registration number(s) (11 digits), if any. If you are reporting either of these numbers for more than one transaction, enter all numbers in the space provided. If additional space is needed, write “See Additional List” and attach a list.

Material advisor registration number(s). Enter the 9 digit material advisor registration number(s) for the transaction you are reporting on this Form 8886. Enter all numbers in the space provided. If additional space is needed, write “See Additional List” and attach a list. Material advisor registration numbers are issued to material advisors who file a return disclosing a reportable transaction under section 6111. Material advisors must give this number to the investors. See section 6111 and Notice 2004-80, 2004-50 I.R.B. 963 for more information.

Tax shelter registration number(s). If the transaction(s) has been registered as a tax shelter under section 6111, provide the registration number(s) that has been assigned to the tax shelter. If you are reporting more than one transaction and tax shelter registration number, enter all numbers in the space provided. If additional space is needed, write “See Additional List” and attach a list. Generally, a tax shelter registration number is reported on Form 8271, Investor Reporting of Tax Shelter Registration Number. If you are a partner of a partnership or a shareholder of an S corporation that invested in a tax shelter, you may receive a Form 8271 with your Schedule K-1.

Line 2

Check the box for all categories that apply to the transaction being reported. The five reportable transaction categories are described under Participation in a Reportable Transaction on page 1.

The category for significant book-tax difference transactions has been eliminated by Notice 2006-6. Transactions with a significant book-tax difference that would have been required to be disclosed on returns filed with a due date (including extensions) after January 5, 2006 are no longer reportable transactions. Do not check box 2e for these transactions.

However, if the transaction is also a transaction described in any of the five remaining reportable transaction categories, it must still be disclosed and the box for all appropriate categories (that is, a, b, c, d, or f) must be checked.

For more details, see Transactions With a Significant Book-Tax Difference on page 2 and Notice 2006-6.

If the transaction is a listed transaction, you must check the listed transaction box in addition to any others that may apply.

Line 3

Provide a brief identifying description of the listed transaction and identify the notice, revenue ruling, or regulation (for example, Regulations section 1.634(a)-8 or Notice 2002-70) that identified the listed transaction as shown in Notice 2004-67 or later IRS guidance.

Line 4

Do not report more than one transaction on this form unless the transactions are the same or substantially similar. See the definition of substantially similar onpage 1.

Line 5

If you invested in the transaction through another entity(ies), such as a partnership, an S corporation, or a foreign corporation, complete lines 5a-d. If you are reporting more than one entity, separate the information for each entity by commas in each space provided. For line 5c, enter the form number of the U.S. tax return filed by the entity (for example, Form 1065). If the entity did not file a U.S. tax return, enter “none.” Enter the EIN of the entity, if any (include the hyphen).

Line 7

Include the facts that may be relevant to understanding the claimed or expected federal income tax treatment of the transaction. In addition:

Provide the complete names and addresses of all parties to the transaction (including, but not limited to, participants in the transaction), and describe their involvement in the transaction. For example, such parties may include:
- Other investors in the transaction.
- Tax-exempt entities that received fees, contributions, income, or gains in connection with the transaction.
- Foreign individuals or entities not subject to U.S. income tax that received fees, income, or gains in connection with the transaction.
- Financial institutions that loaned money used in the transaction.
If you checked box 2b, explain how your disclosure of information concerning the transaction was limited (for example, by contract or verbal agreement) and the nature and extent of the disclosure limitations. See Regulations section 1.6011-4(b)(3) for more details.
If you checked box 2c, describe the terms of the contractual protection. See Regulations section 1.6011-4(b)(4) for more details.
If you checked box 2d, explain how you calculated the basis of the asset for which there was a loss.

If you need more space, follow the instructions under How To Complete Form 8886 on page 3.

Line 8

Tax benefits include deductions, exclusions from gross income, nonrecognition of gain, tax credits, adjustments (or the absence of adjustments) to the basis of property, status as a tax-exempt organization, or any other tax consequences that may reduce your federal income tax liability by affecting the amount, timing, character, or source of any item of income, gain, loss, expense, or credit.