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Mesa Arizona Form 8883: What You Should Know

Penalty. Penalty. Penalty. Penalty. Penalty. Form 8883. Instructions for Form 8883:  (Rev 6/29/10) If an entity reports a gain to the IRS on the sale (or subsequent sale, disposition, or any other disposition) of property that is not a qualified business asset but was held by the entity on January 1, 1982, or by any other person for more than one year beginning after January 1, 1982, and more than five years, you may be subject to the following: a. you must (as well as any associated corporation or partnership) pay a penalty equal to ten percent of the amount of the gain that you fail to report on Form 8883. b. if you fail to file a Form 8883 by the time your return is due, you must pay the corporation a penalty equal to 10 percent of the amount of the gain that you fail to report on Form 8883.

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