Form 8899 Notice of Income From Donated Intellectual Property

Form

8899

Notice of Income From
Donated Intellectual Property

(Rev. February 2010)

Give a Copy to Donor

Department of the Treasury
Internal Revenue Service
Name of charitable organization (donee)

Print
or
Type

OMB No. 1545-1962

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

1a Name of donor

b Identifying number

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

Instructions for Form 8899
Section references are to the Internal Revenue Code unless
otherwise noted.

Phone Help
If you have questions and/or need help completing this form,
please call 1-877-829-5500. This toll-free telephone service is
available Monday through Friday.

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

Cat. No. 37707M

, 20

.

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 Pub. 526, Charitable Contributions, to
figure the amount of the additional charitable deduction.

Who Must File
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)(F)) 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.

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.
Send Form 8899 to the Department of the Treasury, Internal
Revenue Service, Ogden, UT 84201-0027.

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.

Form

8899

(Rev. 2-2010)

Form 8899 (Rev. 2-2010)

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)(F)).
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

Paperwork Reduction Act Notice. We ask for the information
on this form to carry out the Internal Revenue laws of the United
States. You are required to give us the information. We need it
to ensure that you are complying with these laws and to allow
us to figure and collect the right amount of tax.
You are not required to provide the information requested on
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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:
Recordkeeping

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. 3 hr., 20 min.

Learning about the law .

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1 hr., 0 min.

Preparing and sending
the form to the IRS . .

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1 hr., 5 min.

If you have comments concerning the accuracy of this time
estimate 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 this form to this address.
Instead, see When and Where To File on page 1.