It has come to our attention that many CPAs are understandably not prepared and, consequently, uncomfortable completing the mandatory IRS Form 8886 on behalf of producers and/or reinsurance company shareholders. The mandate by the IRS, in notice 2016-66, was extremely untimely and has afforded very little opportunity for anyone to adequately research and prepare, particularly in the middle of the busy season.
As you may recall, the producer (dealership/finance company), reinsurance company, and all shareholders of a reinsurance company must file the form 8886.
The first filing deadline is May 1, 2017, and cannot be extended. This filing covers 2013, 2014 and 2015. The 2016 filing must accompany the related income tax return filed for that year.
If your CPA would like assistance with reporting and preparing the form, BDC will provide a completed disclosure for a $250 fee per entity or individual.
Please contact Craig Simmons if this is something you are interested in.
(330) 726-9030 x104 csimmonrpbdc.com