Content reviewed October 17, 2026 · Educational reference
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) | Installment-sale reporting form | Used for the sale year and applicable later payment years; report interest separately on the appropriate individual or entity return and preserve the supporting schedule |
| Form 8886 (Reportable Transaction Disclosure) | Disclosure form for reportable transactions, including listed transactions | Determine requirements under the rules in effect and the actual facts. An SIS label does not itself establish an exemption from every category. |
| 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; monetized installment sales do not appear on the 2026 list (IR-2026-30, March 5, 2026) |
| Form 1062 and Schedule A (instructions rev. 12/2025); Form 1062-T (proposed) | Election to pay §1062 farmland tax in installments; the September 2026 proposed regulations (REG-117095-25) prescribe Form 1062-T for the eligible-transferee assumption agreement | Not an SIS form; relevant when a farmland seller compares the §1062 tax-payment election with installment reporting. The election reaches only gain recognized in the year of sale (prop. §1.1062-2(f)). |
Sources: IRS Publication 537 — Installment Sales; IRS Form 6252 instructions; IRS Form 1062 instructions; Federal Register — REG-117095-25, proposed §1062 regulations (91 FR 61367, Sept. 29, 2026); IRS IR-2026-30 — 2026 Dirty Dozen list; IRS — Net Investment Income Tax.
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