Form 8697 Interest Computation Under the Look-Back Method for Comp

Form

8697

(Rev. December 2011)
Department of the Treasury
Internal Revenue Service

Interest Computation Under the Look-Back
Method for Completed Long-Term Contracts

For the filing year beginning

Type
or
Print

▶

OMB No. 1545-1031
Attachment
Sequence No.

See separate instructions.

, and ending

97

. See page 4 of the instructions.

Name

A Identifying number

Number, street, and apt., room, or suite no. If a P.O. box, see page 4 of the instructions.

B Check applicable box to show type of taxpayer:

City or town, state, and ZIP code

Corporation

S corporation

Individual

Partnership

Estate or trust
C If you were an owner of an interest in a pass-through entity (such as a partnership or an S corporation) that holds one or more long-term contracts to which this
interest computation relates, enter the name and employer identification number of the entity. Attach a schedule if there is more than one such entity.
Employer identification number

Name of entity

Part I
1

Regular Method (see instructions)

Taxable income or loss for the prior years shown on tax
return (or as previously adjusted) before net operating loss
or capital loss carrybacks (other than carrybacks that must
be taken into account to properly compute interest under
section 460) (see page 4 of the instructions). If you were
required to file Form 8697 for an earlier year, enter adjusted
taxable income for the prior years from line 3, Form 8697,
for the most recent filing year that affects the prior years .

Filing Year

Redetermination Years

Year ended
mo.

yr.

mo.

(c)
Totals

(a)

(b)

(Add columns (a)

Year ended

Year ended

and (b).)

yr.

mo.

yr.

2

Adjustment to income to reflect the difference between:
(a) the amount of income required to be allocated for
post-February 1986 contracts completed or adjusted
during the tax year based on the actual contract price
and costs, and (b) the amount of income reported for
such contracts based on estimated contract price and
costs. See page 4 of the instructions and attach a
schedule listing each separate contract, unless you were
an owner of an interest in a pass-through entity reporting
this amount from Schedule K-1 or a similar statement .

3

Adjusted taxable income for look-back purposes.
Combine lines 1 and 2. If line 3 is a negative amount, see
instructions . . . . . . . . . . . . . .

4

Income tax liability on line 3 amount using tax rates in
effect for the prior years (see page 4 of the instructions) .

5

Income tax liability shown on return (or as previously
adjusted) for the prior years (see page 4 of the
instructions). If you were required to file Form 8697 for an
earlier year, enter the amount required to be reported on
line 4, Form 8697, for the most recent filing year that
affects the prior years . . . . . . . . . .

6

Increase or decrease in tax for the prior years on which
interest is due (or is to be refunded). Subtract line 5 from
line 4
. . . . . . . . . . . . . . .

7

Interest due on increase, if any, shown on line 6 (see
page 4 of the instructions) . . . . . . . . .

8

Interest to be refunded on decrease, if any, shown on line
6 (see page 4 of the instructions) . . . . . . .

9

Net amount of interest to be refunded to you. If line 8, column (c), exceeds line 7, column (c), enter the excess. File
Form 8697 separately; do not attach it to your tax return (see page 5 of the instructions) . . . . . . . . .

10

Net amount of interest you owe. If line 7, column (c), exceeds line 8, column (c), enter the excess. Attach Form 8697
to your tax return. See page 5 of the instructions for where to include this amount on your return
. . . . . .

For Privacy Act and Paperwork Reduction Act Notice, see page 7 of the instructions.

Cat. No. 64598V

Form

8697

(Rev. 12-2011)

Form 8697 (Rev. 12-2011)

Part II
1

2

Page

2

Simplified Marginal Impact Method (see instructions)

Adjustment to regular taxable income to reflect the
difference between: (a) the amount of such income required
to be allocated for post-February 1986 contracts completed
or adjusted during the tax year based on actual contract
price and costs, and (b) the amount of such income
reported for such contracts based on estimated contract
price and costs. See page 6 of the instructions and attach a
schedule listing each separate contract, unless you were an
owner of an interest in a pass-through entity reporting this
amount from Schedule K-1 or a similar statement . . .

Date of each prior year to which interest
computation relates:

(d)
Totals

(a)

(b)

(c)

(Add columns (a),

Year ended

Year ended

Year ended

(b), and (c).)

mo.

yr.

mo.

yr.

mo.

yr.

Increase or decrease in regular tax for prior years. Multiply
line 1 in each column by the applicable regular tax rate
(see page 6 of the instructions) . . . . . . . .
Note: For prior years beginning before 1987, skip lines 3
and 4 and enter on line 5 the amount from line 2.

3

Adjustment to alternative minimum taxable income to reflect
the difference between: (a) the amount of such income
required to be allocated for post-February 1986 contracts
completed or adjusted during the tax year based on actual
contract price and costs, and (b) the amount of such income
reported for such contracts based on estimated contract
price and costs. See page 6 of the instructions and attach a
schedule listing each separate contract, unless you were an
owner of an interest in a pass-through entity reporting this
amount from Schedule K-1 or a similar statement . . .

4

Increase or decrease in alternative minimum tax (AMT) for
prior years. Multiply line 3 in each column by the
applicable AMT rate (see page 6 of the instructions)
.

5

Enter the larger of line 2 or line 4. See page 6 of the
instructions if either amount is negative . . . . .

6

Pass-through entities: Skip line 6 and enter on line 7 the
amount from line 5.
Overpayment ceiling. For each column in which line 5 is a
negative number, enter your total tax liability for the prior year,
as adjusted for past applications of the look-back method
and after net operating loss, capital loss, net section 1256
contracts loss, and credit carryovers and carrybacks to that
year. For each column in which line 5 is a positive number,
leave line 6 blank and enter on line 7 the amount from line 5

7

Increase or decrease in tax for the prior years on which interest is
due (or is to be refunded). Enter the amount from line 5 or line 6,
whichever is smaller. Treat both numbers as positive when making
this comparison, but enter the amount as a negative number .

8

Interest due on increase, if any, shown on line 7 (see page
6 of the instructions) . . . . . . . . . . .

9

Interest to be refunded on decrease, if any, shown on line
7 (see page 6 of the instructions) . . . . . . .

10

Net amount of interest to be refunded to you. If line 9, column (d), exceeds line 8, column (d), enter the excess. File
Form 8697 separately; do not attach it to your tax return (see page 6 of the instructions) . . . . . . . . .

11

Net amount of interest you owe. If line 8, column (d), exceeds line 9, column (d), enter the excess. Attach Form 8697
to your tax return. See page 6 of the instructions for where to include this amount on your return
. . . . . .

Signature(s) Complete this section only if this form is being filed separately.

Sign
Here
Paid
Preparer
Use Only

Under penalties of perjury, I declare that I have examined this form, including accompanying schedules and statements, and to the best of my knowledge
and belief, it is true, correct, and complete. Declaration of preparer (other than taxpayer) is based on all information of which preparer has any knowledge.

▶

Your signature

Date

Spouse's signature. If a joint return, both must sign

Date

Print/Type preparer’s name

Preparer's signature

Date

Check
if
self-employed

Firm’s name

▶

Firm's EIN

Firm's address

▶

Phone no.

PTIN

▶

Form

8697

(Rev. 12-2011)