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Official form guide
Form 8874B: Notice of Recapture Event for New Markets Credit
IRS Form 8874-B is a Notice of Recapture Event for New Markets Credit that CDEs provide to taxpayer holders. It must be provided no later than 60 days after the CDE becomes aware of the recapture event.
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IRS Form 8874B - Notice of Recapture Event for New Markets Credit
IRS Form 8874-B is a Notice of Recapture Event for New Markets Credit that CDEs provide to taxpayer holders. It must be provided no later than 60 days after the CDE becomes aware of the recapture event.
Risk Radar
Scan points- 1Ensure the original signed form reaches the taxpayer holder within 60 days of the CDE becoming aware of the recapture event.
- 2Filing without identifying the Name and EIN of the qualified CDE on Form 8874-B.
- 3Not specifying a valid Reason for recapture from the list provided (e.g., 'CDE ceased to be a CDE').
- 4Omitting the Date of recapture event when it is required in mm/dd/yyyy format.
- 5Failing to provide the original signed form to the taxpayer holder within 60 days.
Plain English
This form notifies investors that a portion of their New Markets Credit (NMC) has been 'recaptured' by the entity that originally issued it. A recapture event happens when the investment terms change, such as the money being paid back or the original purpose not being met. The CDE uses this form to officially inform the taxpayer holder about the reduction in their credit.
Submission Date
- Filing date: 2012-07-17 00:00:00
- 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 qualified community development entity (CDE) must notify a taxpayer holder of a qualified equity investment that a recapture event has occurred.
- Do not use this form when the CDE is simply providing an initial notification and no specific recapture reason or amount is detailed on this document.
- Check Form 8874 instead when using this form to provide general notice regarding New Markets Credit.
Form selector
Use this form or another form?
Investment was redeemed/cashed out by the CDE
The investment is redeemed or otherwise cashed out by the CDE (Line 9)
✓ Ensure you select this reason code.
The proceeds stopped meeting requirements
The proceeds of the investment ceased to be used in a manner that satisfies the substantially-all requirement (Line 9)
✓ Verify Line 9 matches the specific issue.
CDE itself stopped qualifying
CDE ceased to be a CDE (Line 9)
✓ This applies when the entity filing the notice is no longer qualified.
Deadline or filing window
The triggering event for filing Form 8874-B is when the CDE becomes aware of a recapture event. The deadline requires that the original signed form be provided to the taxpayer holder no later than 60 days after this awareness date. No specific extension period is mentioned in the source, but the notice must still be timely.
Checklist
What you need before filling it out
Name of qualified community development entity (CDE)
Name listed on the document · Line 1
Date of recapture event
Date in mm/dd/yyyy format · Line 7
Amount of New Markets Credit captured
Dollar amount listed on the document · Line 8
Reason for recapture
Selection from list (e.g., CDE ceased to be a CDE) · Line 9
Filing Deadline
No later than 60 days after CDE becomes aware of event · Form p.2
Before you submit
- 1Confirm the Name of qualified community development entity (CDE) on Line 1 is correct.
- 2Verify the Date of recapture event (Line 7) accurately reflects when the event occurred.
- 3Ensure the Amount of New Markets Credit captured (Line 8) matches the credit reduction amount.
- 4Select the exact Reason for recapture (Line 9) that applies to the notice.
- 5Check if all applicable Aggregate decrease in credit fields (Lines 10a-10g) are filled out.
- 6Confirm the signature is present and belongs to an authorized official of the CDE.
- 7Verify a copy is retained for the taxpayer holder's records.
How to file this form
- 1Complete all fields on Form 8874-B, including providing the Name and EIN of the qualified CDE (Lines 1 & 2) and detailing the recapture event.
- 2Sign the form under penalties of perjury as an authorized official of the CDE, ensuring the Date and Type/print name are included.
- 3Provide the original signed Form 8874-B to the taxpayer holder no later than 60 days after the CDE becomes aware of the recapture event.
- 4Send a copy of the completed form to the IRS at Center Philadelphia, PA 19255-0549.
Known limitations
- 1The notice must be provided to each taxpayer holder individually if a recapture event occurs for multiple qualified equity investments.
- 2If the CDE has not ceased to be a CDE, but the proceeds of the investment stopped satisfying the substantially-all requirement, Form 8874-B can still apply.
- 3The form is used to make the notification required under Regulations section 1.45D-1(g)(2)(i)(B).
Field map
Compact field-by-field guide
Entity Info
1 items
Name and taxpayer ID of the entity claiming the credit.
Credit Info
1 items
Type of credit or incentive being claimed.
Calculation
2 items
The base amount used to calculate the credit.
Calculated credit amount after applying formulas and limitations.
Certification
1 items
Detailed breakdown supporting the credit calculation.
Signatures
1 items
Sign and date the form.
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Fillable formOpen in Editor->The current edition is Revision December 2011 (Rev. 12-2011). The source does not point to a specific page for the most recent revision, but it provides general instructions and references related forms.
What changed or needs a fresh check
- Edition date — confirm the revision date reads December 2011.
- Fee — Not stated in the official source
- Mailing address — confirm the center is Philadelphia, PA 19255-0549.
- Signature — ensure the authorized official of the CDE signs and prints their name.
- Form Number — verify the form number reads Form 8874-B.
Quick Facts
Downloads
After you file
- 1Keep a copy of the signed Form 8874-B for personal records.
- 2The CDE must provide the original signed form to the taxpayer holder no later than 60 days after the date the CDE becomes aware of the recapture event.
- 3A copy of the completed Form 8874-B must be sent to the IRS Center in Philadelphia, PA (19255-0549).
- 4Books or records relating to Form 8874-B or its instructions must be retained as long as their contents may become material in the administration of any Internal Revenue law.
Sources
- SRCForm 8874-B is a Notice of Recapture Event for New Markets Credit (Rev. December 2011) [Form p.1]
- SRCThe purpose of Form 8874-B is to notify taxpayer holders that a recapture event has occurred, as required under Regulations section 1.45D-1(g)(2)(i)(B) [Form p.2]
- SRCThe original signed form must be provided by the CDE to the taxpayer holder no later than 60 days after the date the CDE becomes aware of the recapture event [Form p.2]
- SRCA copy of Form 8874-B must be sent to the IRS Center in Philadelphia, PA (19255-0549) [Form p.2]
- SRCA separate notice must be provided for each qualified equity investment for which a recapture event occurred [Form p.2]
- SRCThe form is used when a CDE ceases to be a CDE or the proceeds of the investment cease to satisfy the substantially-all requirement, among other reasons listed on Form 8874-B [Form p.1]
Common confusion points
Who needs to file this form?
The qualified community development entity (CDE) must provide the notification to a taxpayer holder of a qualified equity investment.
→ Ensure you are the CDE providing notice, not the taxpayer holding the investment.
When is the deadline to send Form 8874-B?
The original signed form must be provided by the CDE to the taxpayer holder no later than 60 days after the date the CDE becomes aware of the recapture event.
→ Check the date the CDE became 'aware' and count forward 60 days.
Where exactly does the IRS need this copy sent?
The copy must be sent to the Department of the Treasury Internal Revenue Service Center in Philadelphia, PA, with the zip code 19255-0549.
→ Do not send it to the address listed for general comments (Washington, DC).
What if there are multiple investments?
A separate notice must be provided for each qualified equity investment for which a recapture event occurred.
→ If you have three affected investments, you need three copies of Form 8874-B.
Does the CDE always have to file it?
Yes, CDEs must provide notification to any taxpayer holder of a qualified equity investment (including prior holders) that a recapture event has occurred.
→ Confirm your entity status is a qualifying CDE before completing the form.
What happens if you miss the 60-day deadline?
The source does not specify penalties for late filing, but it requires the original signed form to be provided by the CDE within 60 days of awareness.
→ Keep documentation showing when the CDE became aware of the recapture event.
Workflow map
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Questions about IRS Form 8874B
What is IRS Form 8874B used for?
This form notifies investors that a portion of their New Markets Credit (NMC) has been 'recaptured' by the entity that originally issued it. A recapture event happens when the investment terms change, such as the money being paid back or the original purpose not being met. The CDE uses this form to officially inform the taxpayer holder about the reduction in their credit.
Who must file IRS Form 8874B?
Qualified community development entities (CDEs) must provide Form 8874-B to any taxpayer holder of a qualified equity investment, including prior holders.
What information does IRS Form 8874B require?
The form collects details such as the Name and EIN of the CDE, the TIN of the taxpayer, and the specific Reason for recapture. It also documents the Amount of New Markets Credit captured and the Aggregate decrease in credit across multiple years (Year 1 through Year 7).
When is IRS Form 8874B due?
The original signed form must be provided by the CDE to the taxpayer holder no later than 60 days after the date the CDE becomes aware of the recapture event.
Where do I file IRS Form 8874B?
A copy of Form 8874-B must be sent to the IRS at the Center in Philadelphia, PA, with ZIP code 19255-0549. The original signed form is provided directly by the CDE to the taxpayer holder.
How do I complete IRS Form 8874B?
The CDE fills out Form 8874-B by providing identification details (Name/EIN) and documenting the specific amounts and reasons for the recapture. After completing all necessary fields, an authorized official of the CDE must sign the form under penalties of perjury. A copy is then sent to the IRS.
What happens if IRS Form 8874B is filed incorrectly?
Failure to provide this notice can result in a penalty under penalties of perjury, as the filer declares that the recapture event occurred on the date identified above.
Who needs to file this form?
The qualified community development entity (CDE) must provide the notification to a taxpayer holder of a qualified equity investment. Ensure you are the CDE providing notice, not the taxpayer holding the investment.
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