IRS Form 8876 – Fillable PDF for Structured Settlement Factoring

Form 8876 is the Internal Revenue Service (IRS) document used to report and pay the 40% excise tax on the discount received when a structured settlement payment right is factored. This form is required for each date you receive structured settlement payment rights in a factoring transaction.

What Is Form 8876?

Form 8876, titled “Structured Settlement Factoring”, captures essential details about the transaction, the amount of the discount, and the calculated excise tax. It ensures the IRS has a clear record of the factoring activity and that the appropriate tax is remitted.

Who Must File and When?

• Taxpayers who have sold or transferred structured settlement payment rights.
• Tax professionals preparing returns for clients involved in factoring.
• The form must be filed for each transaction date, generally by the due date of the return for the year in which the factoring occurs.

How to Complete Form 8876 Online

Instead of downloading the static PDF and editing it with a separate editor, simply click the "Fill out this form" button on this page. The Formize PDF Filler app will load the fillable version automatically. Follow these steps:

1. Click the Fill out this form button.
2. Wait a few seconds while the Formize PDF Filler loads the interactive form.
3. Enter the requested information in each field (name, SSN/EIN, transaction details, discount amount, etc.).
4. Review the completed form for accuracy.
5. Save, print, or submit the form directly from the app.

Common Mistakes to Avoid

• Entering the discount amount without rounding to the nearest dollar.
• Omitting the transaction date or using the wrong tax year.
• Failing to attach supporting documentation for the factoring agreement.
• Missing the 40% excise tax calculation – the form provides a built‑in calculator to help.

Download the Fillable PDF

If you prefer the traditional download, you can access the official IRS version below. The file is fully fillable and compatible with most PDF editors.

Download IRS Form 8876 (PDF)