Forms Major Changes

Form
Form 8865

Description of Major Changes
IRS updated address fields and added a new line 8b. The new line indicates that the owner of a qualified
business unit (QBU) with a functional currency different than its owner (including a foreign disregarded
entity, foreign branch, or foreign partnership) is required to file Form 8964 and related schedules. Filers
also has to identify the number of Forms 8964 being attached.

Sch K-1 (Form 8865)

Sch K-3 (Form 8865)

Form 1045

Form 3800

Sch A (Form 3800)

Form 1041

Form 8949

Form 1041-N
Form 4562

Sch K-2 (Form 8865)

IRS is including a new reporting requirements under Box 20, code ZZ-Other which include information
capital gains from the sale of certain farmland under section 1062.
We removed the checkboxes from the top of the form and added new line F to include check boxes: (1)
Final K-3 (2) Amended K-3 (3) Reserved for future use. The reserved for future use checkbox may be used
in the future if the administrative adjustment request (AAR) process is updated.
In Part IV, added two new lines, 3a and 3b. Line 3a is to report the income and gain from the sale or other
disposition of section 367(d)(4) intangible property. Line 3b is to report the income and gain from the sale
or disposition of certain other property.
IRS added line 2c and a new check box to indicate Form 1045 is being resubmitted (in response to IRS
correspondence). Line 17 was previously used for dual entries, IRS removed the excess child tax credit
(CTC). In addition, IRS added the 34 and 35 to implementen EO 14247.
New line B is added. Filers indicate if they are transferors or transferees of credits
under section 6418. If so, they complete and attach a transfer election statment. In Part IV. Carryovers of
General Business Credits (GBCs), IRS unshaded line 1q (Form 7218) and 1gg (Form 7211) to report
carryonver of the credits.
New Schedule A (Form 3800), Transfer Election Statement is to be completed by transferors and
transferees making credit transfer elections under section 6418.
IRS updated address fields and added direct deposit information fields to implement EO 14247.
Additionally, IRS added new line 25b for the Net section 1062 tax liability due this year and a new line 18c
in Schedule G for the Net tax liability deferred on sale of farmland from Form 1062. The car loan interest
deduction will be reported on Form 1041, line 10, interest.
Part I, IRS added boxes G, H, and I to indentify short-term transactions reported on Form 1099-DA. Box C
will now be used for short-tem transaction not reported on Form 1099-B or 1099-DA.
Part II, IRS added boxes J, K, and L to indentify long-term transactions reported on Form 1099-DA. Box F
will now be used for short-tem transaction not reported on Form 1099-B or 1099-DA.
IRS updated address fields and added direct deposit information fields to implement EO 14247. Also, the
car loan interest deduction can also be taken on Form 1041-N, line 9.
IRS added multiple lines to increase compliance and awareness of reporting requirements.
* New line 19h to report 50-year property.
* New line 20e to report 50-year property.
* New line 23a to enter the portion of the basis attributable to capitalized interest costs under section
263A(f). New line to enter all other Section 263A(f) costs other than the capitalized interest cost under
under section 263A(f).
* new line 24c with checkboxes for taxpayers to report whether the aircraft is owned, leased, or
chartered.
IRS added new line "B" for two check boxes:(1) [ ] Amended K-2 and (2) [ ] Reserved for future use.
In Part IV, IRS added two new lines, 3a and 3b. Line 3a is to report the income and gain from the sale or
other disposition of section 367(d)(4) intangible property. Line 3b is to report the income and gain from
the sale or disposition of certain other property.

Form 7220

Form 5471

New Form 7220, Prevailing Wage and Apprenticeship (PWA) Verification and Corrections. The purpose of
the form is to allow the IRS to verify that taxpayers meet the recordkeeping requirements for claiming the
increase credits under PWA. The form will also allow taxpayers to calculate PWA correction penalties.
IRS updated address fields and added a new line 3b, Schedule G. The new line indicates that if the
corporation is required to file Form 8964. Filers also has to identify the number of Forms 8964 being
attached.

Form 8908

Form 8933

IRS added three new questions, questions A, B and C before Part I and a new Part III, Qualified Homes'
Addresses.
In Part III, IRS added new lines 3g and 3h after 3f for displacement factor (DF) consideration. Also added
new lines 4, 5, and 6 for credit before reduction, credit reduction for tax-exempt
bonds, and credit after reduction.

Form 7207

Form 1062

Part II of Form 7207 has been updated to include new Line 6b for reporting the new critical mineral
"metallurgical coal," effective for tax years beginning after July 4, 2025.
Form 8864 was revised to incorporate the changes that restored the qualified agri-biodiesel production
credit according to P.L. 119-21, Section 70521(j). The qualified agri-biodiesel production credit was
extended through 2026.
P.L. 119-21, section 70303(a) restored the deduction allowable for depreciation, amortization, or
depletion attributable to a trade or business as an addition to tentative taxable income in calculating
adjusted taxable income for purposes of the limitation on business interest expense under section 163(j).
We are using line 11 (which was previously reserved) to report the allowable deductions for depreciation,
amortization, or depletion
New Form 1062 is being created to allow taxpayers to elect under section 1062 to defer the net income
tax attributable to the gain on the sale or exchange of qualified farmland property during the tax year.
Form 1062 provides information to figure net 1062 tax liability.

Sch A (Form 1062)

We are creating a new Schedule A (Form 1062) for taxpayers to file for each qualified sale or exchange of
qualified farmland for purposes of the section 1062 election.

Form 8864

Form 8990

Form 1116

Sch A (Form 8825)
Form 8964-TRA

Form 8964-ELE

Line 18. We revised line 18 to reflect recent legislative changes. Per IRC 904(b)(1) the taxable income
reported on Form 1116, line 18, is computed without any deduction for personal exemptions under
section 151. Section 70103 of P.L. 119-21 modifies section 151 to allow for a deduction for seniors from
2025 through 2028. This new deduction for seniors is considered a "personal exemption" as the term is
used in IRC 904(b)(1); therefore, this exemption must be added back when reporting taxable income on
Form 1116, line 18. We have modified line 18 accordingly.
IRS develop new Schedule A (Form 8825), Rental Real Estate Other Deductions, with the purpose to
decrease the amount of white paper attachments and provide a standard reporting structure for
taxpayers.
New Form 8964-TRA, Section 987 Transition Information. Filers that are required to report a section 987
transition information required under Regulations section 1.987-10(k) must attach Form 8964-TRA to their
tax return.
New Form 8964-ELE, Section 987 Elections. IRS develop Form 8964-ELE to make or revoke elections under
the section 987 regulations.