Header
Date of receipt of the structured settlement payment rights, name, identifying number, and address with city, state or province, country and ZIP or foreign postal code.
8876
Excise Tax on Structured Settlement Factoring Transactions
- Agency
- IRS
- Revision
- Rev. December 2025
- Fillable fields
- 34
- Pages
- 1
- Official source
- IRS form page
- Checked
- October 21, 2026
Form 8876: Excise Tax on Structured Settlement Factoring Transactions
Form 8876 is the IRS return for the excise tax on structured settlement factoring transactions. The IRS page for the form says it is used to report and pay the 40% excise tax imposed under Internal Revenue Code section 5891 on the factoring discount of a structured settlement factoring transaction.
The form is short. It starts with the date of receipt of the structured settlement payment rights and the filer's name, identifying number and address. Lines 1 to 3 work out the factoring discount, line 4 figures the tax at 40%, and lines 5 to 7 compare it with any tax already paid with Form 7004 to show a balance due or an overpayment.
The IRS page says to file a separate Form 8876 for each date on which structured settlement payment rights were received in one or more structured settlement factoring transactions. You can fill out the PDF free in your browser on this page and download it without an account.
What's on Form 8876
Lines 1 to 3: factoring discount
Line 1 is the total undiscounted amount of structured settlement payments being acquired, line 2 the total amount paid for those rights, and line 3 the difference.
Line 4: tax
The form says to multiply line 3 by 40% (0.40).
Lines 5 and 6: payments and tax due
Line 5 holds any tax paid with Form 7004. Line 6 shows the tax due when line 4 is equal to or greater than line 5.
Lines 7a to 7d: overpayment
An overpayment on line 7a, with a routing number, a checking or savings box and an account number for the refund.
Signature and paid preparer
The penalties of perjury declaration, signature, date and title, followed by the Paid Preparer Use Only block.
How to fill out Form 8876
- 1
Date and identification
Enter the date of receipt of the structured settlement payment rights, then the name, identifying number and address. For a P.O. box, the form says to see the instructions.
- 2
Lines 1 and 2
Enter the total undiscounted amount of the structured settlement payments being acquired on line 1 and the total amount paid for those payment rights on line 2.
- 3
Lines 3 and 4
Subtract line 2 from line 1 to get the factoring discount on line 3. Multiply line 3 by 40% (0.40) and enter the tax on line 4.
- 4
Lines 5 and 6
Enter any tax paid with Form 7004 on line 5. If line 4 is equal to or greater than line 5, subtract line 5 from line 4. The form points to www.irs.gov/Payments for how to pay.
- 5
Line 7
If line 5 is more than line 4, subtract line 4 from line 5 on line 7a and complete lines 7b, 7c and 7d with the routing number, account type and account number.
- 6
Sign
Sign and date the return and add a title if there is one. A paid preparer fills in the preparer block.
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What the form says about filing and payment
What it reports
The IRS page says Form 8876 reports and pays the 40% excise tax imposed under section 5891 on the factoring discount of a structured settlement factoring transaction.
One form per date
A separate Form 8876 for each date on which structured settlement payment rights were received, according to the IRS page.
Paying the tax
Line 6 says that for details on how to pay, go to www.irs.gov/Payments or see the instructions.
Tax paid with Form 7004
Any tax paid with Form 7004 goes on line 5 and reduces the amount due. The IRS page lists Form 7004 among the related items.
Address and due date
The form does not print a filing address or due date. It says to go to www.irs.gov/Form8876 for instructions and the latest information.
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Who files Form 8876?
The IRS page ties the form to the receipt of structured settlement payment rights. The form itself does not print a list of filers, and the separate instructions it refers to were not part of the pages reviewed here.
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Questions about Form 8876
What rate does Form 8876 use?
Line 4 multiplies the factoring discount by 40% (0.40). The IRS page says the tax is imposed under Internal Revenue Code section 5891.
How is the factoring discount figured?
Line 3 subtracts line 2, the total amount paid for the payment rights, from line 1, the total undiscounted amount of the structured settlement payments being acquired.
How many Forms 8876 are filed?
The IRS page says a separate Form 8876 for each date on which structured settlement payment rights were received in one or more factoring transactions.
What if more was paid with Form 7004 than the tax?
Line 7a shows the overpayment, and lines 7b to 7d take the routing number, account type and account number.
Where is Form 8876 sent?
The form itself prints no address. It refers to separate instructions at www.irs.gov/Form8876.