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Form 7208: Excise Tax on Repurchase of Corporate Stock
IRS Form 7208 is used to calculate the Excise Tax on Repurchase of Corporate Stock for certain publicly traded corporations or their affiliates. This tax is equal to 1% of the fair market value (FMV) of stock repurchased during the tax year.
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IRS Form 7208 - Excise Tax on Repurchase of Corporate Stock
IRS Form 7208 is used to calculate the Excise Tax on Repurchase of Corporate Stock for certain publicly traded corporations or their affiliates. This tax is equal to 1% of the fair market value (FMV) of stock repurchased during the tax year.
Risk Radar
Scan points- 1Ensure you use the current edition's revision date (June 2024) and attach it correctly to Form 720.
- 2Failing to calculate the $1 million threshold correctly when dealing with an applicable specified affiliate.
- 3Not attaching Form 7208 to the correct quarterly period of Form 720 based on your tax year end date.
- 4Forgetting to check 'Yes' or 'No' regarding whether repurchases were with respect to an applicable foreign corporation (lines 1/2).
- 5Calculating line 10 incorrectly by failing to subtract lines 5e, 8, and 9d from line 3.
Plain English
This form helps a corporation figure out how much excise tax it owes when it buys back its own shares of stock. The tax rate applied is 1% of the total value of the stock bought back in that tax year. Filing this form reports and pays this specific repurchase excise tax to the IRS.
Submission Date
- Filing date: 2025-12-19 09:10:40
- Preparation window: collect IDs, supporting records, and signatures in advance.
- Final review: verify names, dates, and required fields before submission.
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What this form is for
- Use this form when a corporation or specified affiliate repurchases or acquires stock during its tax year from an outside person, or when an applicable specified affiliate of an applicable foreign corporation acquires stock under those conditions.
- Do not use Form 7208 if the entity is a regulated investment company (RIC), a real estate investment trust (REIT), or a non-RIC '40 Act fund.
- Check Form 720 instead when reporting the annual excise tax, as Form 7208 must be attached to it.
Form selector
Use this form or another form?
Foreign Partnership
When a foreign partnership is an applicable specified affiliate and acquires stock during its tax year.
✓ Ensure you list the partnership's details correctly on Form 7208.
Covered Corporation (Non-RIC/REIT)
This form applies to covered corporations that are not exempt by definition, allowing them to calculate their excise tax.
✓ Verify your entity status against the definitions provided in Instructions p.1 and p.2.
Expatriated Entity
When an expatriated entity is associated with a covered surrogate foreign corporation whose stock is repurchased or acquired during the entity's tax year.
✓ Confirm the relationship between the expatriated entity and its covered surrogate corporation.
Entity Other Than Listed
If the primary filer on Form 7208 is not the one doing the repurchase/acquisition, you must list the other entity's name and EIN in Part I.
✓ Do not skip entering the Name (a) and EIN (b) if the repurchasing entity differs from the main filer.
Deadline or filing window
Form 7208 is an annual return that must be attached to Form 720. If your tax year ends in October, November, or December, the due date for attachment is January 31 (following year). Late filing can incur a penalty of up to 25% of unpaid tax.
Checklist
What you need before filling it out
Excise Tax Rate
1% of FMV · Instructions p.1 / Form p.1
Applicable Foreign Corporation
Any foreign corporation whose stock is traded on an established securities market · Instructions p.1
Annual Filing Period
Annually · Instructions p.2
Form 720 Attachment Due Date (Q1 Example)
Jan. 31 (following year) · Instructions p.2 Table
Penalty for Late Filing
5% of unpaid tax per month/part thereof, up to 25% · Instructions p.2
Tax Calculation Basis (Part I)
Total fair market value (FMV) of repurchased shares in column (h) · Form p.1, Column (h)
Exemption Status Check
RIC, REIT, or non-RIC '40 Act fund status · Instructions p.2
Before you submit
- 1Verify that you have used the June 2024 edition of IRS Form 7208.
- 2Confirm that Part I lists the name (a) and EIN (b) of the repurchasing entity correctly.
- 3Ensure the transaction type (c), stock symbol (d), and class of stock (e) match the repurchase activity.
- 4Verify that the Total fair market value (FMV) in column (h) is accurately calculated for each line item.
- 5Check if you need to use a continuation sheet, and ensure it matches the form's format.
- 6Confirm that the total from Part I lines (h) is correctly entered into the 'Total' box on Form 7208.
- 7Verify that your completed Form 7208 is attached to the correct Form 720, based on your tax year end date.
How to file this form
- 1Complete Part I of IRS Form 7208 by listing details for each stock repurchase or acquisition transaction.
- 2Calculate and enter the Total fair market value (FMV) of repurchased shares into column (h) for every line item, then total these amounts in the designated box on Form 7208.
- 3Attach your completed IRS Form 7208 to the appropriate Form 720 based on your tax year end date using the provided table.
- 4Sign the attached Form 720 under penalties of perjury, ensuring you keep a complete copy for record-keeping.
Known limitations
- 1Preferred stock that qualifies as additional tier 1 capital (see Regulations section 58.4501-1(b)(34)(ii)) is not considered stock for the excise tax purposes of Form 7208.
- 2Preferred stock described in section 1504(a)(4) (see Regulations section 58.4501-1(b)(34)(iii)) is not considered stock for the excise tax purposes of Form 7208.
- 3A regulated investment company (RIC), as defined in section 851, does not need to file Form 7208.
- 4A real estate investment trust (REIT), as defined in section 856(a), does not need to file Form 7208.
- 5A non-RIC '40 Act fund (as described in Regulations section 58.4501-3(h)) does not need to file Form 7208.
Field map
Compact field-by-field guide
General Info
2 items
Full legal name and taxpayer identification number (SSN or EIN).
Current mailing address.
Details
2 items
Complete all applicable sections of this form according to the official IRS instructions.
Enter the relevant dollar amount if this form involves tax calculation.
Certification
1 items
Read and acknowledge any certifications required by this form.
Signatures
1 items
Sign and date. Unsigned forms cannot be processed.
Almost done reviewing the fields?
Fillable formOpen in Editor->The current edition is dated June 2024, though instructions reference a December 2025 revision date. Users can find the latest information regarding Form 7208 developments at IRS.gov/Form7208.
What changed or needs a fresh check
- Edition date — confirm the form reads June 2024.
- Tax year range — confirm the document covers calendar year 20__ or a tax year beginning 20__ and ending 20__.
- Attachment requirement — confirm you attach Form 7208 to your Form 720.
- Filing deadline reference — confirm that attaching Form 7208 is due with the corresponding Form 720.
- EIN/Name entry — confirm Part I lines (a) and (b) are populated for the repurchasing entity.
Quick Facts
Downloads
After you file
- 1File the completed Form 7208 annually to report and pay the excise tax.
- 2Attach your Form 7208 to IRS Form 720, which is due for the first full quarter after the close of your tax year.
- 3Report the stock repurchase excise tax amount from Form 7208 on Form 720, specifically on line for IRS No. 150.
- 4To amend a previously filed Form 7208, file a corrected Form 7208 (with 'Amended' at the top) and attach it to your Form 720-X.
- 5If you submit two amended Forms 7208 attached to one Form 720 for tax years ending before final regulations were published under subpart B of part 58, attach both amendments to a single Form 720-X.
Sources
- SRCInstructions p.1 — The stock repurchase excise tax is equal to 1% of the fair market value (FMV) of stock repurchased during the tax year by certain publicly traded corporations or their specified affiliates, effective after 2022.
- SRCInstructions p.2 — Filing obligation exists for a covered corporation whose stock is repurchased/acquired from a non-affiliated person during its tax year.
- SRCInstructions p.2 — An applicable specified affiliate of an applicable foreign corporation must file if its stock is acquired during the tax year by that entity or its affiliate.
- SRCInstructions p.2 — A covered corporation that is a regulated investment company (RIC), REIT, or non-RIC '40 Act fund does not need to file Form 7208.
- SRCInstructions p.2 — Form 7208 must be filed annually and attached to the Form 720 due for the first full quarter after the close of your tax year.
- SRCInstructions p.2 — The table shows that a corporation whose tax year ends in Oct., Nov., or Dec. attaches Form 7208 by April 30 (following year) to Form 720.
- SRCInstructions p.4 — The resulting excise tax amount must be entered on line 11 of Form 7208 and reported on the corresponding line for IRS No. 150 on Form 720.
Common confusion points
Who needs to file this form?
You must file if you are a covered corporation or specified affiliate whose stock was repurchased/acquired by the entity or its affiliate from an outside person.
→ Check if your entity fits one of the three filing categories listed in Instructions p.2.
What happens if I am a foreign company?
An applicable specified affiliate of that foreign corporation must file if its stock is acquired during the tax year by the affiliate (including a foreign partnership) from an outside person.
→ Verify you are an 'applicable specified affiliate' and check who acquired the stock.
When exactly do I attach Form 7208?
You attach it to Form 720 based on your tax year-end month, not just when you file the return.
→ Use the table in Instructions p.2 to match your end month (e.g., Oct.-Dec. ends require attachment by April 30 of the following year).
What is the required filing frequency?
Form 7208 is an annual return, but it must be attached to a quarterly Form 720.
→ Remember that Form 720 itself is a quarterly return.
How do I correct an error on Form 7208?
You file a corrected Form 7208 and designate 'Amended' at the top, attaching it to the corresponding Form 720-X.
→ Ensure you attach it to the Form 720-X for the quarter to which the original Form 7208 was attached.
What if my company is an RIC or REIT?
A covered corporation that is a regulated investment company (RIC) or real estate investment trust (REIT) does not need to file Form 7208.
→ Confirm your entity type against the definitions in Instructions p.2.
Workflow map
Related forms and next steps
Before
Current
After
Often used with
⚠ If something goes wrong
- Interest is charged under section 6621 on taxes paid late or penalties imposed for failure to file/negligence/fraud from the due date.
Questions about IRS Form 7208
What is IRS Form 7208 used for?
This form helps a corporation figure out how much excise tax it owes when it buys back its own shares of stock. The tax rate applied is 1% of the total value of the stock bought back in that tax year. Filing this form reports and pays this specific repurchase excise tax to the IRS.
Who must file IRS Form 7208?
Certain publicly traded corporations or their specified affiliates must file Form 7208 annually. An expatriated entity with respect to a covered surrogate foreign corporation may also need to file it.
What information does IRS Form 7208 require?
Part I collects details about the stock repurchases, such as the total shares and the total fair market value (FMV). Part V calculates the final tax amount owed by subtracting specific amounts from line 3.
When is IRS Form 7208 due?
Form 7208 must be filed annually. The due date depends on when your corporation's tax year ends; for example, if the tax year ends in January, Form 7208 must attach to Form 720 by April 30 (following year).
Where do I file IRS Form 7208?
The specific location to file is determined by checking the Instructions for Form 720. The filing location depends on whether you are attaching it to a quarterly return (Form 720).
How do I complete IRS Form 7208?
First, complete Part I with details like the total shares and FMV. If the amount on line 3 is over $1 million, continue to Part II; otherwise, complete only Part I. Finally, calculate the tax in Part V (line 11) by multiplying line 10 by 1%.
What happens if IRS Form 7208 is filed incorrectly?
If the Form 7208 is not filed by the due date, a penalty of 5% of the unpaid tax may be assessed for each month or part of a month late, up to a maximum of 25%.
Who needs to file this form?
You must file if you are a covered corporation or specified affiliate whose stock was repurchased/acquired by the entity or its affiliate from an outside person. Check if your entity fits one of the three filing categories listed in Instructions p.2.
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