Wednesday, August 7, 2013


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The Internal Revenue Service released an early draft of the new Form 8960, Net Investment Income Tax.The IRS prepared this draft of Form 8960 based solely on the proposed regulations issued by the Treasury Department and the IRS and published in the Federal Register on December 5, 2012. 

Even though the regulations are generally proposed to be effective for taxable years beginning after December 31, 2013, taxpayers may rely on such regulations for the 2013 taxable year.

If you remember the IRS had issued proposed regulations in early December. Some of it was outlined earlier in this blog: 

The 3.8% Tax on Net Investment Income Demystified!

With the release of this long-awaited draft form, the IRS brings a little more clarity to Section 1411. The instructions to the form have still to come. That means many aspects to the computations, exceptions to income, allocations to non-passive investors are not known at this present time. 

The link to the draft form is here.

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