Excise Tax Relating to Gain or Other Income Realized by Any Person on Receipt of Greenmail

The previously approved regulations provide rules relating to the manner and method of reporting and paying the nondeductible 50 percent excise tax imposed by section 5881 of the Internal Revenue Code with respect to the receipt of greenmail. The reporting requirements will be used to verify that the excise tax imposed under section 5881 is properly reported and timely paid. Form 8725 is used by persons who receive "greenmail" to compute and pay the excise tax on greenmail imposed under Internal Revenue Code section 5881. IRS uses the information to verify that the correct amount of tax has been reported.

The latest form for Excise Tax Relating to Gain or Other Income Realized by Any Person on Receipt of Greenmail expires 2022-02-28 and can be found here.