Summary of Changes

Tax Forms & Publications

Work Request Notification
Title: Form 8697, Interest Computation Under the Look-Back Method for Completed Long-Term Contracts
Tax Year: 2011

Processing Year: 2012

Route to:

Approved:

Section Chief:
Reviewer:
Review Chief:
Branch Chief:

Tuawana Pinkston

Doris Williams
Johnny Cervantes
Cynthia Ozkaya

Senior Technical Advisor: Curtis Freeman
Initiator (Tax Law Specialist): Neal

Date:
Digitally signed by Tuawana Pinkston
DN: cn=Tuawana Pinkston, o=IRS, ou=SE:CAR:MP:
T:T:R, [email protected], c=US
Date: 2010.10.25 13:32:48 -04'00'

10/25/10

Digitally signed by X9LCB
DN: cn=X9LCB, [email protected]
Date: 2010.10.28 11:40:30 -04'00'

10/28/10

Johnny Cervantes

Digitally signed by Johnny Cervantes
DN: cn=Johnny Cervantes, o=Internal Revenue Service, ou=SE:W:
CAR:MP:T:B:R, [email protected], c=US
Reason: I am approving this document
Date: 2010.10.28 12:01:51 -04'00'

10/28/10

Johnny Cervantes

Digitally signed by Johnny Cervantes
DN: cn=Johnny Cervantes, o=Internal Revenue Service, ou=SE:W:
CAR:MP:T:B:R, [email protected], c=US
Reason: I am approving this document
Date: 2010.10.28 12:01:58 -04'00'

10/28/10

Johnny Cervantes

Digitally signed by Johnny Cervantes
DN: cn=Johnny Cervantes, o=Internal Revenue Service, ou=SE:W:
CAR:MP:T:B:R, [email protected], c=US
Reason: I am approving this document
Date: 2010.10.28 12:23:59 -04'00'

10/28/10

Tuawana Pinkston
Doris Williams

Dickman

The information in this document can be used to develop any necessary Work Requests.
This notification is for changes due to:
Legislation or Chief Counsel guidance:
✔ A Program change initiated by: Taxpayer Advocate - Field Systemic Advocacy

The major changes are as follows:
Numerous recommendations were adopted from a committee organized to review Form 8697 due to the high error
rate on this form.
1. We added a column on page 1 for the year the contract was completed. The income adjustments from the prior years
are based on amounts computed when the contract is completed. (Reg. 1.460-6(c)(3))
2. For line 2, we removed the shading from the totals column. The adjustments should net to zero since look-back
interest only allocates interest between the years.
3. We added an explanation to the headings in Parts I and II to explain to taxpayers the reason to complete each part.
4. In the signature block, we added a line in case a spouse has to sign the form. The processing of Form 8697 has
been delayed in the past if the spouse's signature was missing.
5. In the signature block for paid preparer's, we removed the reference to SSN since every preparer is required to have
a PTIN.

We may need to make further changes that would require a work request.
We do not anticipate the need for any further changes that would require a Work Request.
If you have any questions, please contact:
Name: Neal Dickman

Name: DorisWilliams

Title:

Title:

Tax Law Specialist

Tax Law Specialist (Reviewer)

Symbols: SE:W:CAR:MP:T:B:C

Symbols: SE:W:CAR:MP:T:B:R

Phone: 202-622-5013

Phone: 202-283-0413

Email: [email protected]

Email: [email protected]

Room: 6141 Main IR

Room: C6-431 (NCFB)