Instructions For Form 8697 - 2011 (Page 4 of 7) in pdf

Note. If there were more than 2 prior

Then, complete either Part I or Part II

in each column on the attached

as appropriate. Also sign the form at

years, attach additional Forms 8697 as

schedule agrees with the amounts

the bottom of page 2 if interest is to be

needed. On the additional Forms 8697,

shown on line 2.

refunded to you. A signature is not

enter your name, identifying number,

required if you are filing the form with

and tax year. Complete lines 1 through

An owner of an interest in a

your tax return.

8 (as applicable), but do not enter totals

pass-through entity is not required to

in column (c). Enter totals only in

provide the detail listed in 1 and 2

Filing Year

column (c) of the first Form 8697.

above with respect to prior years. The

entity should provide the line 2 amounts

Fill in the filing year line at the top of the

Line 1

with Schedule K-1 or on a separate

form to show the tax year in which the

Do not reduce taxable income or

statement for its tax year in which the

contracts for which this form is being

increase a loss on line 1 by any

contracts are completed or adjusted.

filed were completed or adjusted in a

carryback of a net operating loss,

post-completion year. If you were an

Note. Taxpayers reporting line 2

capital loss, or net section 1256

owner of an interest in a pass-through

amounts from more than one Schedule

contracts loss, except to the extent that

entity that has completed or adjusted

K-1 (or a similar statement) must attach

carrybacks must be taken into account

one or more contracts, enter your tax

a schedule detailing by entity the net

to properly compute interest under

year that ends with or includes the end

change to income from long-term

section 460.

of the entity’s tax year in which the

contracts.

contracts were completed or adjusted.

Line 2

Line 3

In each column, show a net increase to

Name

income as a positive amount and a net

If line 3 results in a negative amount, it

decrease to income as a negative

Enter the name shown on your Federal

represents a look-back net operating

amount.

income tax return for the filing year. If

loss (NOL). The adjustment in line 2

you are an individual filing a joint return,

either created, increased, or decreased

In figuring the net adjustment to be

also enter your spouse’s name as

the net operating loss. The change in

entered in each column on line 2, be

shown on Form 1040.

the amount of the net operating loss

sure to take into account any other

would be carried back or forward to the

income and expense adjustments that

Address

appropriate tax year and the

may result from the increase (or

hypothetical tax would be recomputed

decrease) to income from long-term

Enter your address only if you are filing

in the carryback/forward year. See

contracts (for example, a change to

this form separately. Include the

Regulations section 1.460-6(c)(3)(v).

adjusted gross income affecting

apartment, suite, room, or other unit

However, the computation period for

medical expenses under section 213). If

number after the street address. If the

computing interest on NOLs is different.

there are no adjustments besides the

Post Office does not deliver mail to the

See the exceptions listed on lines 7 and

look-back adjustments, the sum of all

street address and you have a P.O.

8 below.

line 2 amounts should be zero and

box, show the box number instead.

reflected in column 2(c). If there are

Lines 4 and 5

additional adjustments that result from

Item A—Identifying

the application of the look-back, leave

Reduce the tax liability to be entered on

Number

column 2(c) blank and reflect the

lines 4 and 5 by allowable credits (other

amounts in the schedule below as

than refundable credits, for example,

If you are an individual, enter your

described in item 3.

the credit for taxes withheld on wages,

social security number. Other filers

the earned income credit, the credit for

Include the following on an attached

must use their EIN.

federal tax on fuels, etc.), but do not

schedule.

take into account any credit carrybacks

Part I—Regular Method

1. Identify each completed

to the prior year in computing the

long-term contract by contract number,

Use Part I only if you are not electing,

amount to enter on lines 4 and 5 (other

job name, or any other reasonable

do not have an election in effect, or are

than carrybacks that resulted from or

method used in your records to identify

not required to use the simplified

were adjusted by the redetermination of

each contract.

marginal impact method as described in

your income from a long-term contract

2. For each contract, report in

the instructions for Part II, later.

for look-back purposes). Include on

columns for each prior year: (a) the

lines 4 and 5 any taxes (such as

amount of income previously reported

Filing year column

alternative minimum tax) required to be

based on estimated contract price and

taken into account in the computation

Enter the filing year listed at the top of

costs and (b) the amount of income

of your tax liability (as originally

this form.

allocable to each prior year based on

reported or as redetermined).

actual contract price and costs. Total

Columns (a) and (b)

the columns for each prior year and

Lines 7 and 8

Enter at the top of each column the

show the net adjustment to income

For the increase or decrease in tax for

ending month and year for:

from long-term contracts.

•

each prior year, interest due or to be

Each prior tax year in which you were

3. Identify any other adjustments

refunded must be computed at the

required to report income from the

that result from a change in income

applicable interest rate and

completed long-term contract(s) and

from long-term contracts and show the

•

compounded on a daily basis, generally

Any other tax year affected by such

amounts in the columns for the affected

from the due date (not including

years.

years so that the net adjustment shown

-4-

Instructions For Form 8697 - 2011 Page 4

Related Articles

Related forms

Related Categories