Form 8935 - Airplane Payments Report

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Instructions for Form 8935

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8:06 - 16-MAR-2009

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Instructions for Form 8935

Department of the Treasury
Internal Revenue Service

(March 2009)

Form 8935 is used to report payments of any money or other
property made by a commercial passenger airline carrier to a
qualified airline employee, defined later.

An airline payment amount does not include any amount
payable on the basis of the carrier’s future earnings or profits.
Qualified airline employee. A qualified airline employee is a
current or former employee of a commercial passenger airline
carrier who participated in the carrier’s defined benefit plan that
is described in section 401(a) (including a trust exempt from tax
under section 501(a)) that was terminated or became subject to
the restrictions contained in paragraphs (2) and (3) of section
402(b) of the Pension Protection Act of 2006.

Who Must File

How to Get Help

Every commercial passenger airline carrier that pays one or
more airline payment amounts, as defined later.

When to File

If you have questions about reporting on Form 8935, you can
call the Information Reporting Customer Service Site at
1-866-455-7438 (toll free), or 304-263-8700 (not toll free). For
TTY/TDD equipment, call 304-579-4827 (not toll free).

File Form 8935 with the Internal Revenue Service within 90
days of the date of making the airline payment(s) to a qualified
airline employee. For payments made before December 24,
2008, file Form 8935 by March 23, 2009.

Specific Instructions

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

General Instructions
Purpose of Form

How to File
File Form 8935 on paper using Form 8935-T, Transmittal of
Airline Payments Reports, or electronically through the Filing
Information Returns Electronically (FIRE) System.
To file electronically, you must have software that can
produce a file in the proper format according to the
specifications in Announcement 2009-7, 2009-10 I.R.B.,
available at www.irs.gov/irb/2009-10_IRB/ar10.html. The FIRE
System does not provide a fill-in form option for information
return reporting. The FIRE System operates 24 hours a day, 7
days a week. You may access the FIRE System via the Internet
at http://fire.irs.gov. See Pub. 1220 for more information.
You may use the 2009 General Instructions for Forms 1099,
1098, 3921, 3922, 5498, and W-2G if you have questions about
filing Form 8935, either on paper or electronically, with the
Internal Revenue Service. Sections E through I, M, and T
contain information that is equally applicable to Form 8935.

Substitute Statements to Recipients
If you are not using the official IRS form (Copy B of Form 8935)
to furnish statements to recipients, see Pub. 1179 for specific
rules about providing “substitute” statements to recipients.
Generally, a substitute is any statement other than Copy B of
Form 8935. You can develop a substitute yourself or buy it from
a private printer. However, the substitutes must comply with the
format and content requirements specified in Pub. 1179,
available on the IRS website at www.irs.gov.

When to Furnish Forms or Statements
Furnish Copy B of Form 8935 (or a substitute statement) to
recipients within 90 days of the date of making the airline
payment(s) to a qualified airline employee. For payments made
before December 24, 2008, furnish Copy B (or the substitute)
by March 23, 2009.

Definitions
Airline payment amount. The term airline payment amount
means any money or other property paid by a commercial
passenger airline carrier to a qualified airline employee under
the approval of an order of a Federal bankruptcy court in a case
filed after September 11, 2001, and before January 1, 2007, for
the employee’s interest in a bankruptcy claim against the
carrier, any note of the carrier (or amount paid in lieu of a note
being issued), or any other fixed obligation of the carrier to pay
a lump sum amount.
The amount of such payment is determined without regard to
any requirement to deduct and withhold employment taxes from
such payment.

Payer’s Name, Address, and
Identification Number
Complete the PAYER’S identification boxes on Form 8935 with
the information indicated, including a telephone number at
which a recipient can reach a person having knowledge of the
payment(s) being reported.
The taxpayer identification number (TIN) for a payer is the
federal employer identification number (EIN). The payer’s name
and TIN should be consistent with the name and TIN used on
the payer’s other tax returns. The name of a paying agent or
service bureau must not be used in place of the name of the
payer. EINs have nine digits separated by only one hyphen
(00-0000000).
If you do not have an EIN, you can apply for one online. Go
to the IRS website www.irs.gov and enter keyword “online EIN”
in the upper right corner. You can also apply by calling
1-800-829-4933 or by faxing or mailing Form SS-4, Application
for Employer Identification Number, to the IRS. See the
Instructions for Form SS-4 for more information.

Recipient’s Name, Address, and
Identification Number
Recipient’s name. Show the full name and address in the
boxes provided on Form 8935. Use the last known address in
your official records for the recipient’s address.
TINs. TINs are used to associate and verify amounts you
report to the IRS with corresponding amounts on tax returns.
Therefore, it is important that you furnish correct names, social
security numbers (SSNs) or individual taxpayer identification
numbers (ITINs) for recipients on the forms sent to the IRS.
Requesting a recipient’s TIN. If the recipient is a U.S.
person (including a U.S. resident alien), the IRS suggests that
you request the recipient to complete Form W-9, Request for
Taxpayer Identification Number and Certification, or Form
W-9S, Request for Student’s or Borrower’s Taxpayer
Identification Number and Certification, if appropriate. See the
Instructions for the Requester of Form W-9 for more information
on how to request a TIN.
If the recipient is a foreign person, the IRS suggests that you
request the recipient complete the appropriate Form W-8. See
the Instructions for the Requester of Forms W-8BEN, W-8ECI,
W-8EXP, and W-8IMY.
U.S. resident aliens who rely on a “saving clause” of a
tax treaty are to complete Form W-9, not Form W-8BEN.
CAUTION See Pub. 515, Withholding of Tax on Nonresident Aliens
and Foreign Entities, and Pub. 519, U.S. Tax Guide for Aliens.

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Instructions for Form 8935

8:06 - 16-MAR-2009

The type and rule above prints on all proofs including departmental reproduction proofs. MUST be removed before printing.

You may be subject to a penalty for an incorrect or missing
TIN on an information return. You are required to maintain the
confidentiality of information relating to the recipient’s identity
(including SSNs and ITINs), and you can use such information
only to comply with the tax laws.
If the recipient does not provide a TIN, leave the box for
TIP the recipient’s TIN blank on Form 8935. Only one
recipient TIN can be entered on the form.
The TIN for individual recipients of information returns is the
SSN or ITIN. SSNs and ITINs have nine digits separated by two
hyphens (000-00-0000).

Routine uses of this information include giving it to the
Department of Justice for civil and criminal litigation, and to
cities, states, and the District of Columbia for use in
administering their tax laws. We may also disclose this
information to other countries under a tax treaty, to federal and
state agencies to enforce federal nontax criminal laws, or to
federal law enforcement and intelligence agencies to combat
terrorism. If you fail to provide this information in a timely
manner, you may be subject to penalties.
You are not required to provide the information requested on
a form that is subject to the Paperwork Reduction Act unless
the form displays a valid OMB control number. Books or
records relating to a form or its instructions must be retained as
long as their contents may become material in the
administration of any Internal Revenue law. Generally, tax
returns and return information are confidential, as required by
section 6103.
The time needed to complete and file this form will vary
depending on individual circumstances. The estimated average
time is:

Box 1
Report the total airline payment amount paid to the recipient.

Boxes 2a–6a
Report the year(s) in which you made the payment(s).

Boxes 2b–6b
Report the annual amount(s) paid.

Privacy Act and Paperwork Reduction
Act Notice
We ask for the information on these forms to carry out the
Internal Revenue laws of the United States. You are required to
give us the information. We need it to figure and collect the right
amount of tax.
P.L. 110-348, sec 125, requires you to file an information
return with the IRS and furnish a statement to recipients.
Section 6109 and its regulations require you to provide your TIN
on what you file.

Learning about the law or the form . . . .

58 min.

Preparing the form . . . . . . . . . . . . . . . .

24 min.

Copying, assembling, and sending the
form to the IRS . . . . . . . . . . . . . . . . .

13 min.

If you have comments concerning the accuracy of these time
estimates or suggestions for making this form simpler, we
would be happy to hear from you. You can write to the Internal
Revenue Service, Tax Products Coordinating Committee,
SE:W:CAR:MP:T:T:SP, 1111 Constitution Ave. NW, IR-6526,
Washington, DC 20224. Do not send the tax form to this office.
Instead, see How To File on page 1.

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