Final Form 8960 Instructions Include Provisions Not Applicable Until 2014

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New final instructions for Form 8960, Net Investment Income Tax—Individuals, Estates, and Trusts, are based on final tax code Section 1411 regulations issued in 2013, and therefore will include certain items that will not apply until tax year 2014, an IRS official said.
“We did that knowing that these instructions were going to go forward, and kind of give you an idea to plan a little bit and see what your clients will be dealing with as they move forward,”Adrienne Mikolashek, an attorney-adviser in the IRS Office of Chief Counsel, Passthroughs & Special Industries, said Feb. 28 at a panel at the tax law conference sponsored by the Federal Bar Association's Section on Taxation.
The final instructions to Form 8960 were posted to the IRS website Feb. 27. The 20-page instructions allow taxpayers subject to the 3.8 percent surtax on passive income to file returns for the net investment income tax for the first time.

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