A taxpayer files Form 8833, Treaty-Based Return Position Disclosure Under Section 6114 or 7701(b) to explain to the IRS that a treaty of the United States overrules or modifies a provision of the IRC, which may reduce the tax on their tax return.
For US citizen and resident alien taxpayers, this disclosure is required by IRC section 6114 and Regulations section 301.6114-1. Dual-resident taxpayers are required to use this form per Regulations section 301.7701(b)-7.
A separate Form 8833 is required for each treaty-based return position taken by the taxpayer, although for reporting purposes a taxpayer can treat payments or income items of the same type received from the same payor as a single item.
To complete Form 8833 in TaxSlayer ProWeb, from the Federal Section of the tax return (Form 1040) select:
- Miscellaneous Forms
- Other Miscellaneous Forms
- Treaty-Based Return Position Disclosure Under Section 6114 or 7701(b)
- Reference ID number, if any - If the taxpayer is a foreign corporation, enter any reference number assigned to the foreign corporation.
- Enter the taxpayer's foreign address and US address.
-
Provisions - Under the Provisions heading, check any of the check boxes that apply. At least one of the first two must be checked.
- Disclosing position as required by section 6114
- Disclosing position as required by section 301.7701(b)-7
- Taxpayer is a U.S. citizen or resident or is incorporated in the U.S.
- Treaty position relied on - Select the treaty country from the drop down menu and enter the treaty article(s).
- List the Internal Revenue Code provision(s) overruled or modified by the treaty-based return position - Enter the IRC provision(s).
- Payor Information & Address - Enter information about the payor if the income is "fixed or determinable annual or periodical", i.e., income such as interest, dividends, wages, rents, etc.
- List the provisions of the limitation on benefits article (if any) in the treaty that the taxpayer relies on to qualify for benefits under the treaty - See here for more information on limitation of benefits.
- Is the taxpayer disclosing a treaty-based return position for which reporting is specifically pursuant to regulations section 301.6114-1(b)? - Select Yes or No. If yes, you'll need to enter the specific subsection of the regulations.
- Explain the treaty-based return position taken - Explain the position being taken (unless the requirement to explain is waived under Regulations section 301.6114-1(c)). Be sure to include in the explanation:
- why the position meets the limitation on benefits test entered above,
- the basis for the taxpayer meeting any special requirements for claiming benefits, and
- the amount (or a reasonable estimate of the amount) of the income affected by the treaty claim.
When finished, select Continue. You will have an option to add another Form 8833 if needed.
Note: This is a guide on entering Form 8833 into the TaxSlayer ProWeb program. This is not intended as tax advice. Refer to the IRS instructions below for more information.
Additional Information: