IRS Publications, Forms & Administrative Practice
The operating manuals and disclosure forms.
| Authority | What it is | Application to SIS |
|---|---|---|
| IRS Publication 537 (Installment Sales) | The IRS's plain-language guide to §453 | The practical reference for computing gross profit percentage, handling escrow accounts, recapture, and electing out — the operating manual for SIS reporting |
| Form 6252 (Installment Sale Income) | The annual reporting form | Filed every year an SIS payment is received; reports the year's recognized gain. Interest is reported separately on Schedule B |
| Form 8886 (Reportable Transaction Disclosure) | Disclosure form for listed/reportable transactions | Not required for a bona fide SIS; would be required for a monetized installment sale if REG-109348-22 is finalized |
| IRS "Dirty Dozen" notices (IR-2021-144 & 2023) | Annual list of abusive transactions | Listed monetized installment sales (not SIS) — useful to distinguish the legitimate SIS from its abusive cousin |