7208

Excise Tax on Repurchase of Corporate Stock

Agency
IRS
Revision
June 2024
Fillable fields
229
Pages
2
Official source
IRS form page
Checked
October 21, 2026
Fill 7208 online
Page 1 of form 7208

Form 7208: Excise Tax on Repurchase of Corporate Stock

Form 7208, Excise Tax on Repurchase of Corporate Stock, is used to figure the excise tax on repurchases of corporate stock. The About page says it is attached to Form 720, Quarterly Federal Excise Tax Return.

The instructions say the Inflation Reduction Act of 2022 established this tax under section 4501, 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, for repurchases after 2022. The form nets out exceptions, stock contributed to employer-sponsored retirement plans and stock issued or provided, then applies the 1% rate.

Form 7208 is an annual return. It is attached to the Form 720 due for the first full quarter after the close of the filer's tax year, and the tax is reported there as IRS No. 150. This page covers the June 2024 edition. You can fill out the PDF free in your browser on this page and download it without an account.

Top of page 1 of Form 7208: Excise Tax on Repurchase of Corporate Stock, as printed by IRS

What's on Form 7208

Part I: total stock repurchases

A table of repurchases with the acquiring entity, type of transaction, stock symbol, class, trading exchange, number of shares and total FMV, then totals on lines 2 and 3 and a foreign corporation question on line 4.

Part II: exceptions

Lines 5a to 5e for repurchases in a reorganization with no gain or loss recognized, repurchases treated as dividends, and repurchases by a dealer in securities in the ordinary course of business. Line 5c is reserved.

Part III: retirement plan contributions

A table on line 6 for stock contributed to employer-sponsored retirement plans, by class repurchased and by different class, with totals on lines 7 and 8.

Part IV: stock issued or provided

Lines 9a to 9d for stock issued or provided to employees, to employees of a specified affiliate, other stock issued, and the total.

Part V: tax and payments

Line 10 subtracts lines 5e, 8 and 9d from line 3. Line 11 multiplies line 10 by 1% (0.01) and carries the result to Form 720 on the line for IRS No. 150.

How to fill out Form 7208

  1. 1

    Tax year, name and EIN

    Enter the tax year for which the form is filed, the name and the EIN. The instructions say an EIN can be applied for online at IRS.gov/EIN or with Form SS-4.

  2. 2

    Line 1, type of transaction

    Use a separate line for each transaction, with repurchases under a single plan on one line. Column (c) takes OMR, Tender Offer, ASR, Reorganization, Split-Off, NLF or Other.

  3. 3

    Line 1, columns (d) to (h)

    Enter the stock symbol (or ISIN/CUSIP), class of stock, established securities market, total shares repurchased and their total FMV. Continuation sheet totals go on line 2, and line 3 adds them up.

  4. 4

    Line 4 and the $1 million threshold

    Check Yes or No for repurchases of stock of an applicable foreign corporation or covered surrogate foreign corporation. The instructions say if line 3 is $1 million or less, Part I is completed and the form attached to Form 720; above that, continue to Part II. Applicable specified affiliates follow added rules.

  5. 5

    Parts II to IV

    Enter the FMV for each exception, complete the line 6 table for retirement plan contributions, and enter the FMV of stock issued or provided on lines 9a to 9c. The instructions say plan contributions count if made by the filing deadline of the Form 720 the form is attached to.

  6. 6

    Part V

    Subtract lines 5e, 8 and 9d from line 3. If zero or less, enter -0- and attach the form to Form 720. Otherwise multiply line 10 by 1% and enter it on line 11 and on Form 720 for IRS No. 150.

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When to file, where it goes and amendments

When to file

Annually, with the Form 720 for the first full quarter after the tax year closes. Tax year ending Jan. to Mar.: 2nd Quarter Form 720, due July 31. Apr. to June: 3rd Quarter, October 31. July to Sept.: 4th Quarter, January 31 (following year). Oct. to Dec.: 1st Quarter, April 30 (following year).

Where to file

The instructions say to see the Instructions for Form 720 for where to file Form 720 and the attached Form 7208.

Continuation sheets

If more lines are needed, prepare a continuation sheet in the same format and attach it with Form 7208 to Form 720. The Form 720 is signed under penalties of perjury.

Amending

File a corrected Form 7208 with "Amended" entered at the top, attached to Form 720-X for the quarter to which the earlier Form 7208 was attached.

Penalties

The instructions say late filing may be penalized 5% of the unpaid tax for each month or part of a month, up to 25%, and late payment ½ of 1% per month, up to 25%, unless due to reasonable cause.

Records

The instructions say to keep complete and detailed records sufficient to establish the amounts reported on the form.

Related forms

Who files Form 7208?

  • Covered corporations

    Domestic corporations whose stock is traded on an established securities market, when their stock is repurchased by the corporation or acquired by a specified affiliate during the tax year from a person who is not the corporation or one of its specified affiliates.

  • Applicable specified affiliates

    Specified affiliates of an applicable foreign corporation that acquire that foreign corporation's stock during their tax year from a person who is not that corporation or one of its specified affiliates, including a foreign partnership that is an applicable specified affiliate.

  • Expatriated entities

    Expatriated entities with respect to a covered surrogate foreign corporation whose stock is repurchased or acquired during the expatriated entity's tax year.

  • Not filed by RICs and REITs

    The instructions say a covered corporation that is a regulated investment company (RIC), a real estate investment trust (REIT) or a non-RIC '40 Act fund does not need to file Form 7208.

Form 7208 is a corporate return, attached to the filer's Form 720. The instructions list three kinds of filers.

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Questions about Form 7208

What is the rate of the stock repurchase excise tax?

The instructions say it is 1% of the fair market value of stock repurchased during the tax year. Line 11 multiplies line 10 by 1% (0.01).

Is Form 7208 filed on its own?

No. It is attached to Form 720, and the tax from line 11 is reported on Form 720 on the line for IRS No. 150.

Is Form 7208 a quarterly return?

No. The instructions say Form 7208 is an annual return, attached to the Form 720 due for the first full quarter after the close of the tax year.

Do RICs and REITs file Form 7208?

The instructions say a covered corporation that is a regulated investment company, a real estate investment trust or a non-RIC '40 Act fund does not need to file it.

What if total repurchases are $1 million or less?

The form says filers that are not applicable specified affiliates and report $1 million or less on line 3 stop after Part I and attach the form to Form 720.

How is a filed Form 7208 corrected?

The instructions say to file a corrected Form 7208 marked "Amended" and attach it to Form 720-X for the quarter to which the earlier form was attached.