What is Form 8697?
Form 8697 is used by businesses to calculate interest on tax adjustments for completed contracts. This form helps ensure that taxpayers pay or receive the correct amount of interest related to their income tax returns. It is important because it allows businesses to accurately report their income and expenses, leading to fair tax treatment. Completing this form helps prevent underpayment or overpayment of taxes, ensuring compliance with IRS regulations. Properly filling out Form 8697 is essential to avoid potential penalties.
What is Form 8697 used for?
Here’s what it helps you with:
- to determine the interest amount owed or refundable.
- to report interest for completed long-term contracts.
- to ensure compliance with IRS guidelines.
How to fill out Form 8697?
- 1
Open Form 8697 in the PDF editor.
- 2
Read the instructions carefully to understand the requirements.
- 3
Fill in your name, identification number, and the tax year.
- 4
Calculate the interest amount using the formulas provided in the form.
- 5
Double-check all entries for accuracy.
- 6
Sign the form electronically.
- 7
Download the completed form for submission to the IRS.
Who is required to fill out Form 8697?
Taxpayers completing long-term contracts under specific methods must fill out Form 8697. This includes individuals, corporations, partnerships, S corporations, and owners of interests in pass-through entities.
When is Form 8697 not required?
If your contract is completed within 2 years of starting and has a gross contract price below $1 million or 1% of your average annual gross receipts from the past three tax years, you don't need to file Form 8697.
Additionally, if you're not subject to any excise taxes related to this form, or if the project involves residential buildings that are not classified as commercial or high-rise, you can skip filing this form altogether.
When is Form 8697 due?
The deadline for Form 8697 is the same as the date you need to file your income tax return, including any extensions, for the year you finished the long-term contract. For most people, this means filing by April 15th of the following year or by October 15th if you filed for an extension.
If you owe interest, you should attach Form 8697 to your tax return. If you're expecting a refund, file Form 8697 separately. Remember, you must submit a new Form 8697 for each tax year you complete a long-term contract that requires this method.
How to get a blank Form 8697?
To get a blank Form 8697, which is issued by the IRS, simply visit our website. We have a pre-loaded blank version ready for you to fill out and download once completed.
How to sign Form Form 8697 online?
To sign Form 8697 using PDF Guru, first, click on "Fill Form" to load the blank version of the form in the PDF editor. Fill out the necessary fields, and when you reach the signature section, create a simple electronic signature.
After completing the form, click "Done" to download it for your records. Always check the official IRS guidelines for any specific signature requirements on Form 8697 to ensure compliance.
Where to file Form 8697?
Form 8697 must be submitted to the Internal Revenue Service (IRS).
Submission methods: mail.
