Form 8899 Notice of Income From Donated Intellectual Property

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I.R.S. SPECIFICATIONS
TO BE REMOVED BEFORE PRINTING
INSTRUCTIONS TO PRINTERS
FORM 8899, PAGE 1 OF 2
MARGINS; TOP 13mm (1/2"), CENTER SIDES. PRINTS: HEAD TO HEAD
PAPER: WHITE WRITING, SUB. 20.
INK: BLACK
FLAT SIZE: 216mm (8-1/2") x 279mm (11")
PERFORATE: None
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8899

Date

Signature

O.K. to print
Revised proofs
requested

Notice of Income From
Donated Intellectual Property

Form
(Rev. December 2005)
Department of the Treasury
Internal Revenue Service

OMB No. 1545-1962

Give a Copy to Donor

Name of charitable organization (donee)

Print
or
Type

Action

Employer identification number

Address (number, street, and room or suite no.) (or P.O. box no. if mail is not delivered to the street address)
City or town, state, and ZIP code

b Identifying number

1a Name of donor

c Address (number, street, and room or suite no.) (or P.O. box no. if mail is not delivered to the street address)

d City or town, state, and ZIP code
2a Description of qualified intellectual property and patent number, if applicable

b Date of charitable contribution

c Date of notice to treat as qualified intellectual property

3a Qualified donee income (see the definition on page 2)
$
b Tax year of donee for which income listed in line 3a is reported. Check only one box:
Calendar year 20
Fiscal year beginning

.
, 20

, and ending

, 20

.

Instructions for Form 8899

Who Must File

Section references are to the Internal Revenue Code unless
otherwise noted.

Every donee organization described in section 170(c) (except
a private foundation as defined in section 509(a) that is not
described in section 170(b)(1)(E)) that received a charitable
gift of qualified intellectual property for which the donor
provided notice as discussed above, must file Form 8899 if
the property produces net income for the year. If the
qualified intellectual property fails to produce net income for
the donee’s tax year, the donee is not required to file Form
8899.

Purpose of Form
A taxpayer who contributes qualified intellectual property
(defined on page 2) to a charity may be entitled to a
charitable deduction, in addition to any initial deduction
allowed in the year of contribution, based on a specified
percentage of the qualified donee income (defined on page
2) received by the donee with respect to the qualified
intellectual property. Any additional charitable deductions
attributable to qualified donee income may be allowed in the
year of the contribution or in subsequent years, subject to
the limitations described in the definition of qualified donee
income.
To qualify for the additional charitable deduction, the donor
must provide notice to the donee at the time of the
contribution that the donor intends to treat the contribution
as a qualified intellectual property contribution for purposes
of sections 170(m) and 6050L.
Form 8899 is used by a donee to report net income from
qualified intellectual property to the donor of the property
and to the IRS. This form must be filed for each tax year of
the donee in which the donated property produces net
income, but only if all or part of that tax year occurs during
the 10-year period beginning on the date of the contribution
and that tax year does not begin after the expiration of the
legal life of the donated property.
Note. Donors should see Publication 526, Charitable
Contributions, to figure the amount of the additional
charitable deduction.

When and Where to File
The donee is required to file Form 8899 with the IRS and
provide a copy of the form to the donor by the last day of
the first full month following the close of the donee’s tax
year.
Donees that were required to submit an information return
before Form 8899 was available should see Temporary
Regulations section 1.6050L-2T(c)(2) for requirements on
reporting to the donor and Temporary Regulations section
1.6050L-2T(d)(2)(ii) for filing requirements with the IRS. Send
Form 8899 to the Internal Revenue Service, Ogden, UT
84201-0027. If filing using a private delivery service, send
Form 8899 to the Internal Revenue Service, 1973 N. Rulon
White Blvd., Ogden, UT 84404.

Penalty
The organization may be subject to a penalty if it fails to file
Form 8899 by the due date; fails to include all of the
information required to be shown on this form; or fails to
include correct information on this form. For additional
information, see sections 6721 through 6724.

Cat. No. 37707M

Form

8899

(Rev. 12-2005)

9
I.R.S. SPECIFICATIONS
TO BE REMOVED BEFORE PRINTING
INSTRUCTIONS TO PRINTERS
FORM 8899, PAGE 2 OF 2
MARGINS; TOP 13mm (1/2"), CENTER SIDES. PRINTS: HEAD TO HEAD
PAPER: WHITE WRITING, SUB. 20.
INK: BLACK
FLAT SIZE: 216mm (8-1/2") x 279mm (11")
PERFORATE: None
DO NOT PRINT — DO NOT PRINT — DO NOT PRINT — DO NOT PRINT

Form 8899 (Rev. 12-2005)

Definitions
Identifying number. The identifying number for individual
donors is the social security number. For other donors,
including corporations, partnerships, and estates, the
identifying number is the employer identification number. To
obtain the donor’s identifying number, you may request that
the donor complete Form W-9, Request for Taxpayer
Identification Number and Certification.
Qualified intellectual property. Qualified intellectual property
is generally any patent, copyright, trademark, trade name,
trade secret, know-how, software or similar property, or
applications or registrations of such property (other than
property contributed to or for the use of a private foundation
as defined in section 509(a) that is not described in section
170(b)(1)(E)). See Exceptions below.
Exceptions. The following property is not considered
qualified intellectual property for purposes of the additional
charitable deduction.
1. Computer software that is readily available for purchase by
the general public, is subject to a nonexclusive license,
and has not been substantially modified.
2. A copyright held by a taxpayer:
a. Whose personal efforts created the property, or
b. In whose hands the basis of the property is determined,
for purposes of determining gain from a sale or
exchange, in whole or in part by reference to the basis
of the property in the hands of a taxpayer whose
personal efforts created the property.
Qualified donee income. Qualified donee income is any net
income received or accrued by the donee that is properly
allocable to the qualified intellectual property for the tax year
of the donee which ends within or with the tax year of the
donor. Income is not treated as allocated to qualified
intellectual property if it is received or accrued after the
earlier of the expiration of the legal life of the qualified
intellectual property, or the 10-year period beginning with the
date of the contribution.

Page

2

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