IRS Instruction 8752 – In the complex world of tax compliance, certain entities like partnerships and S corporations may need to navigate specific IRS requirements when electing a non-standard tax year. IRS Form 8752, titled “Required Payment or Refund Under Section 7519,” plays a crucial role in this process. This form helps calculate and report payments or claim refunds related to fiscal year elections under Section 444 of the Internal Revenue Code. Whether you’re a business owner, tax professional, or accountant dealing with deferred income tax years, understanding Form 8752 instructions is essential to avoid penalties and ensure accurate filing.
This comprehensive guide breaks down the latest IRS Instruction 8752 (updated December 2025), including who must file, calculation methods, filing deadlines, and more. We’ll use trusted sources from the IRS website to provide accurate, up-to-date information for tax years beginning in 2025. For the official document, you can download the PDF directly from the IRS: IRS Instruction 8752 PDF.
What Is IRS Form 8752 and Its Purpose?
Form 8752 is used by partnerships and S corporations that have elected a tax year other than their required tax year under Section 444. The primary purposes are:
- To compute and report the required payment under Section 7519, which compensates for the tax deferral benefit of using a fiscal year.
- To request a refund of net prior-year payments when the election terminates or the entity liquidates.
Section 7519 ensures that entities don’t gain an unfair tax advantage by deferring income recognition. If your partnership or S corp has filed Form 8716 to make a Section 444 election, Form 8752 must be submitted annually while the election remains in effect—even if no payment is due.
Who Must File Form 8752?
Not every business entity needs to file Form 8752. Here’s a quick overview:
- Eligible Entities: Partnerships and S corporations with an active Section 444 election (via Form 8716) must file for each applicable election year.
- Upon Termination or Liquidation: File to claim a refund of the net required payment balance if the election ends or the entity dissolves.
- Exclusions: Personal service corporations (as defined in Regulations section 1.441-3) should not file Form 8752; instead, use Schedule H (Form 1120).
If your entity is newly formed and this is its first year (check Item B on the form), the required payment is zero, but filing is still mandatory to document zero liability.
When and Where to File IRS Form 8752?
Timing is critical to avoid penalties. For tax years beginning in 2025 (applicable election years), Form 8752 and any required payment are due by May 15, 2026. Use the 2025 version of the form for base years ending in 2025—do not use it for 2026 base years.
Filing Locations
Mail or submit Form 8752 based on your principal place of business:
| Location | Filing Address |
|---|---|
| Connecticut, Delaware, District of Columbia, Georgia, Illinois, Indiana, Kentucky, Maine, Maryland, Massachusetts, Michigan, New Hampshire, New Jersey, New York, North Carolina, Ohio, Pennsylvania, Rhode Island, South Carolina, Tennessee, Vermont, Virginia, West Virginia, Wisconsin | Department of the Treasury, Internal Revenue Service, Kansas City, MO 64999 |
| Alabama, Alaska, Arizona, Arkansas, California, Colorado, Florida, Hawaii, Idaho, Iowa, Kansas, Louisiana, Minnesota, Mississippi, Missouri, Montana, Nebraska, Nevada, New Mexico, North Dakota, Oklahoma, Oregon, South Dakota, Texas, Utah, Washington, Wyoming | Department of the Treasury, Internal Revenue Service, Ogden, UT 84201 |
| No principal office in the U.S. | Internal Revenue Service Center, P.O. Box 409101, Ogden, UT 84409 |
For electronic payments, use EFTPS (visit IRS.gov/EFTPS). If amending a previously filed form, mark “Amended Return” at the top.
How to Calculate the Required Payment or Refund on Form 8752?
Calculating under Section 7519 involves net income from the base year (the year before the applicable election year), applicable payments, and a deferral ratio. Here’s a step-by-step breakdown based on the form’s lines:
- Line 1: Net Income for Base Year – Aggregate income and expenses (not less than zero), excluding tax-exempt items and nondeductible expenses. For partnerships (2024 base year): Use Form 1065’s Analysis of Net Income (Loss) line 1 plus Schedule K line 20c items. For S corps: Schedule K line 18 plus line 17d items.
- Line 2: Applicable Payments – Deductible amounts in the base year that become income to partners/shareholders (e.g., wages, rent), excluding guaranteed payments.
- Line 3: Deferral Ratio – Number of months deferred divided by 11 (e.g., 2 months deferral = 2/11).
- Lines 4–9: Compute adjusted net income, multiply by deferral ratio, and factor in prior-year payments to get the current required payment (line 9a) or zero it out if negative (line 9b).
- Line 10: Net Required Payment Balance – Net of current and prior calculations. Claim full refund here if terminating (check Item C).
- Line 11: Amount Due – Pay if positive; use electronic methods preferred.
- Line 12: Refund – If negative balance, request via direct deposit (lines 12b–12d). Refunds aren’t issued before April 15, 2026, or 90 days after filing, with no interest.
If line 9b is zero and no prior refunds are due, enter zero on line 10 and sign the form.
Key Definitions for Calculations
- Base Year: Preceding tax year.
- Deferral Period: Months between elected year start and required year end.
- Applicable Election Year: Any year with active Section 444 election.
Penalties for Non-Compliance with Section 7519
Failure to pay by the due date can result in a 10% underpayment penalty, unless reasonable cause is shown. Additional penalties may apply for late filing or other issues. If penalized, explain reasonable cause in response to IRS notices—don’t attach explanations to the form. Always file on time, even for zero payments, to avoid issues.
Recent Updates and Tips for 2025-2026 Filing
- What’s New in 2025 Instructions: Emphasis on electronic payments and direct deposits for refunds. Use IRS.gov/Payments for options.
- Termination Rules: Elections terminate if changing to a required tax year, joining a tiered structure, or S corp status ends. Once terminated, no re-election is allowed.
- Record-Keeping: Maintain books as per IRS requirements; the form’s burden is included in your income tax return estimates.
For future developments, check IRS.gov/Form8752. If you’re unsure about your situation, consult a tax advisor.
By following these IRS Form 8752 instructions, you can ensure compliance and potentially secure refunds. Download the latest PDF here: https://www.irs.gov/pub/irs-pdf/i8752.pdf. Stay informed and file accurately to keep your business taxes in check.