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1040ez Form 2013 Pdf

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1040ez Form 2013 Pdf

1040ez form 2013 pdf Publication 1212 - Main Content Table of Contents Definitions Debt Instruments on the OID List Debt Instruments Not on the OID List Information for Brokers and Other MiddlemenShort-Term Obligations Redeemed at Maturity Long-Term Debt Instruments Certificates of Deposit Bearer Bonds and Coupons Backup Withholding Information for Owners of OID Debt InstrumentsExceptions. 1040ez form 2013 pdf Adjustment for premium. 1040ez form 2013 pdf Adjustment for acquisition premium. 1040ez form 2013 pdf Adjustment for market discount. 1040ez form 2013 pdf Form 1099-OID How To Report OID Figuring OID on Long-Term Debt Instruments Figuring OID on Stripped Bonds and Coupons How To Get Tax HelpLow Income Taxpayer Clinics Definitions The following terms are used throughout this publication. 1040ez form 2013 pdf “Original issue discount” is defined first. 1040ez form 2013 pdf The other terms are listed alphabetically. 1040ez form 2013 pdf Original issue discount (OID). 1040ez form 2013 pdf   OID is a form of interest. 1040ez form 2013 pdf It is the excess of a debt instrument's stated redemption price at maturity over its issue price (acquisition price for a stripped bond or coupon). 1040ez form 2013 pdf Zero coupon bonds and debt instruments that pay no stated interest until maturity are examples of debt instruments that have OID. 1040ez form 2013 pdf Accrual period. 1040ez form 2013 pdf   An accrual period is an interval of time used to measure OID. 1040ez form 2013 pdf The length of an accrual period can be 6 months, a year, or some other period, depending on when the debt instrument was issued. 1040ez form 2013 pdf Acquisition premium. 1040ez form 2013 pdf   Acquisition premium is the excess of a debt instrument's adjusted basis immediately after purchase, including purchase at original issue, over the debt instrument's adjusted issue price at that time. 1040ez form 2013 pdf A debt instrument does not have acquisition premium, however, if the debt instrument was purchased at a premium. 1040ez form 2013 pdf See Premium, later. 1040ez form 2013 pdf Adjusted issue price. 1040ez form 2013 pdf   The adjusted issue price of a debt instrument at the beginning of an accrual period is used to figure the OID allocable to that period. 1040ez form 2013 pdf In general, the adjusted issue price at the beginning of the debt instrument's first accrual period is its issue price. 1040ez form 2013 pdf The adjusted issue price at the beginning of any subsequent accrual period is the sum of the issue price and all the OID includible in income before that accrual period minus any payment previously made on the debt instrument, other than a payment of qualified stated interest. 1040ez form 2013 pdf Debt instrument. 1040ez form 2013 pdf   The term “debt instrument” means any instrument or contractual arrangement that constitutes indebtedness under general principles of federal income tax law (including, for example, a bond, debenture, note, certificate, or other evidence of indebtedness). 1040ez form 2013 pdf It generally does not include an annuity contract. 1040ez form 2013 pdf Issue price. 1040ez form 2013 pdf   For debt instruments listed in Section I-A and Section I-B, the issue price generally is the initial offering price to the public (excluding bond houses and brokers) at which a substantial amount of these instruments was sold. 1040ez form 2013 pdf Market discount. 1040ez form 2013 pdf   Market discount arises when a debt instrument purchased in the secondary market has decreased in value since its issue date, generally because of an increase in interest rates. 1040ez form 2013 pdf An OID debt instrument has market discount if your adjusted basis in the debt instrument immediately after you acquired it (usually its purchase price) was less than the debt instrument's issue price plus the total OID that accrued before you acquired it. 1040ez form 2013 pdf The market discount is the difference between the issue price plus accrued OID and your adjusted basis. 1040ez form 2013 pdf Premium. 1040ez form 2013 pdf   A debt instrument is purchased at a premium if its adjusted basis immediately after purchase is greater than the total of all amounts payable on the debt instrument after the purchase date, other than qualified stated interest. 1040ez form 2013 pdf The premium is the excess of the adjusted basis over the payable amounts. 1040ez form 2013 pdf See Publication 550 for information on the tax treatment of bond premium. 1040ez form 2013 pdf Qualified stated interest. 1040ez form 2013 pdf   In general, qualified stated interest is stated interest that is unconditionally payable in cash or property (other than debt instruments of the issuer) at least annually over the term of the debt instrument at a single fixed rate. 1040ez form 2013 pdf Stated redemption price at maturity. 1040ez form 2013 pdf   A debt instrument's stated redemption price at maturity is the sum of all amounts (principal and interest) payable on the debt instrument other than qualified stated interest. 1040ez form 2013 pdf Yield to maturity (YTM). 1040ez form 2013 pdf   In general, the YTM is the discount rate that, when used in figuring the present value of all principal and interest payments, produces an amount equal to the issue price of the debt instrument. 1040ez form 2013 pdf The YTM is generally shown on the face of the debt instrument or in the literature you receive from your broker. 1040ez form 2013 pdf If you do not have this information, consult your broker, tax advisor, or the issuer. 1040ez form 2013 pdf Debt Instruments on the OID List The OID list on the IRS website can be used by brokers and other middlemen to prepare information returns. 1040ez form 2013 pdf If you own a listed debt instrument, you generally should not rely on the information in the OID list to determine (or compare) the OID to be reported on your tax return. 1040ez form 2013 pdf The OID amounts listed are figured without reference to the price or date at which you acquired the debt instrument. 1040ez form 2013 pdf For information about determining the OID to be reported on your tax return, see the instructions for figuring OID under Information for Owners of OID Debt Instruments, later. 1040ez form 2013 pdf The following discussions explain what information is contained in each section of the list. 1040ez form 2013 pdf Section I. 1040ez form 2013 pdf   This section contains publicly offered, long-term debt instruments. 1040ez form 2013 pdf Section I-A: Corporate Debt Instruments Issued Before 1985. 1040ez form 2013 pdf Section I-B: Corporate Debt Instruments Issued After 1984. 1040ez form 2013 pdf Section I-C: Inflation-Indexed Debt Instruments. 1040ez form 2013 pdf For each publicly offered debt instrument in Section I, the list contains the following information. 1040ez form 2013 pdf The name of the issuer. 1040ez form 2013 pdf The Committee on Uniform Security Identification Procedures (CUSIP) number. 1040ez form 2013 pdf The issue date. 1040ez form 2013 pdf The maturity date. 1040ez form 2013 pdf The issue price expressed as a percent of principal or of stated redemption price at maturity. 1040ez form 2013 pdf The annual stated or coupon interest rate. 1040ez form 2013 pdf (This rate is shown as 0. 1040ez form 2013 pdf 00 if no annual interest payments are provided. 1040ez form 2013 pdf ) The yield to maturity will be added to Section I-B for bonds issued after December 31, 2006. 1040ez form 2013 pdf The total OID accrued up to January 1 of a calendar year. 1040ez form 2013 pdf (This information is not available for every instrument. 1040ez form 2013 pdf ) For long-term debt instruments issued after July 1, 1982, the daily OID for the accrual periods falling in a calendar year and a subsequent year. 1040ez form 2013 pdf The total OID per $1,000 of principal or maturity value for a calendar year and a subsequent year. 1040ez form 2013 pdf Section II. 1040ez form 2013 pdf   This section contains stripped coupons and principal components of U. 1040ez form 2013 pdf S. 1040ez form 2013 pdf Treasury and Government-Sponsored Enterprise debt instruments. 1040ez form 2013 pdf These stripped components are available through the Department of the Treasury's Separate Trading of Registered Interest and Principal of Securities (STRIPS) program and government-sponsored enterprises such as the Resolution Funding Corporation. 1040ez form 2013 pdf This section also includes debt instruments backed by U. 1040ez form 2013 pdf S. 1040ez form 2013 pdf Treasury securities that represent ownership interests in those securities. 1040ez form 2013 pdf   The obligations listed in Section II are arranged by maturity date. 1040ez form 2013 pdf The amounts listed are the total OID for a calendar year per $1,000 of redemption price. 1040ez form 2013 pdf Section III. 1040ez form 2013 pdf   This section contains short-term discount obligations. 1040ez form 2013 pdf Section III-A: Short-Term U. 1040ez form 2013 pdf S. 1040ez form 2013 pdf Treasury Bills. 1040ez form 2013 pdf Section III-B: Federal Home Loan Banks. 1040ez form 2013 pdf Section III-C: Federal National Mortgage Association. 1040ez form 2013 pdf Section III-D: Federal Farm Credit Banks. 1040ez form 2013 pdf Section III-E: Federal Home Loan Mortgage Corporation. 1040ez form 2013 pdf Section III-F: Federal Agricultural Mortgage Corporation. 1040ez form 2013 pdf    Information that supplements Section III-A is available on the Internet at http://www. 1040ez form 2013 pdf treasurydirect. 1040ez form 2013 pdf gov/tdhome. 1040ez form 2013 pdf htm. 1040ez form 2013 pdf   The short-term obligations listed in this section are arranged by maturity date. 1040ez form 2013 pdf For each obligation, the list contains the CUSIP number, maturity date, issue date, issue price (expressed as a percent of principal), and discount to be reported as interest for a calendar year per $1,000 of redemption price. 1040ez form 2013 pdf Brokers and other middlemen should rely on the issue price information in Section III only if they are unable to determine the price actually paid by the owner. 1040ez form 2013 pdf Debt Instruments Not on the OID List The list of debt instruments discussed earlier does not contain the following items. 1040ez form 2013 pdf U. 1040ez form 2013 pdf S. 1040ez form 2013 pdf savings bonds. 1040ez form 2013 pdf Certificates of deposit and other face-amount certificates issued at a discount, including syndicated certificates of deposit. 1040ez form 2013 pdf Obligations issued by tax-exempt organizations. 1040ez form 2013 pdf OID debt instruments that matured or were entirely called by the issuer before the tables were posted on the IRS website. 1040ez form 2013 pdf Mortgage-backed securities and mortgage participation certificates. 1040ez form 2013 pdf Long-term OID debt instruments issued before May 28, 1969. 1040ez form 2013 pdf Short-term obligations, other than the obligations listed in Section III. 1040ez form 2013 pdf Debt instruments issued at a discount by states or their political subdivisions. 1040ez form 2013 pdf REMIC regular interests and CDOs. 1040ez form 2013 pdf Commercial paper and banker's acceptances issued at a discount. 1040ez form 2013 pdf Obligations issued at a discount by individuals. 1040ez form 2013 pdf Foreign obligations not traded in the United States and obligations not issued in the United States. 1040ez form 2013 pdf Information for Brokers and Other Middlemen The following discussions contain specific instructions for brokers and middlemen who hold or redeem a debt instrument for the owner. 1040ez form 2013 pdf In general, you must file a Form 1099 for the debt instrument if the interest or OID to be included in the owner's income for a calendar year totals $10 or more. 1040ez form 2013 pdf You also must file a Form 1099 if you were required to deduct and withhold tax, even if the interest or OID is less than $10. 1040ez form 2013 pdf See Backup Withholding, later. 1040ez form 2013 pdf If you must file a Form 1099, furnish a copy to the owner of the debt instrument by January 31 in the year it is due. 1040ez form 2013 pdf File all your Forms 1099 with the IRS, accompanied by Form 1096, by February 28 in the year it is due (March 31 if you file electronically). 1040ez form 2013 pdf Electronic payee statements. 1040ez form 2013 pdf   You can issue Form 1099-OID electronically with the consent of the recipient. 1040ez form 2013 pdf More information. 1040ez form 2013 pdf   For more information, including penalties for failure to file (or furnish) required information returns or statements, see the General Instructions for Certain Information Returns (Forms 1098, 1099, 3921, 3922, 5498, and W-2G) for the appropriate calendar year. 1040ez form 2013 pdf Short-Term Obligations Redeemed at Maturity If you redeem a short-term discount obligation for the owner at maturity, you must report the discount as interest on Form 1099-INT. 1040ez form 2013 pdf To figure the discount, use the purchase price shown on the owner's copy of the purchase confirmation receipt or similar record, or the price shown in your transaction records. 1040ez form 2013 pdf If you sell the obligation for the owner before maturity, you must file Form 1099-B to reflect the gross proceeds to the seller. 1040ez form 2013 pdf Do not report the accrued discount to the date of sale on either Form 1099-INT or Form 1099-OID. 1040ez form 2013 pdf If the owner's purchase price cannot be determined, figure the discount as if the owner had purchased the obligation at its original issue price. 1040ez form 2013 pdf A special rule is used to determine the original issue price for information reporting on U. 1040ez form 2013 pdf S. 1040ez form 2013 pdf Treasury bills (T-bills) listed in Section III-A. 1040ez form 2013 pdf Under this rule, you treat as the original issue price of the T-bill the noncompetitive (weighted average of accepted auction bids) discount price for the longest-maturity T-bill maturing on the same date as the T-bill being redeemed. 1040ez form 2013 pdf This noncompetitive discount price is the issue price (expressed as a percent of principal) shown in Section III-A. 1040ez form 2013 pdf A similar rule is used to figure the discount on short-term discount obligations issued by the organizations listed in Section III-B through Section III-F. 1040ez form 2013 pdf Example 1. 1040ez form 2013 pdf There are 13-week and 26-week T-bills maturing on the same date as the T-bill being redeemed. 1040ez form 2013 pdf The price actually paid by the owner cannot be established by owner or middleman records. 1040ez form 2013 pdf You treat as the issue price of the T-bill the noncompetitive discount price (expressed as a percent of principal) shown in Section III-A for a 26-week bill maturing on the same date as the T-bill redeemed. 1040ez form 2013 pdf The interest you report on Form 1099-INT is the OID (per $1,000 of principal) shown in Section III-A for that obligation. 1040ez form 2013 pdf Long-Term Debt Instruments If you hold a long-term OID debt instrument as a nominee for the true owner, you generally must file Form 1099-OID. 1040ez form 2013 pdf For this purpose, you can rely on Section I of the OID list to determine the following information. 1040ez form 2013 pdf Whether a debt instrument has OID. 1040ez form 2013 pdf The OID to be reported on the Form 1099-OID. 1040ez form 2013 pdf In general, you must report OID on publicly offered, long-term debt instruments listed in Section I. 1040ez form 2013 pdf You also can report OID on other long-term debt instruments. 1040ez form 2013 pdf Form 1099-OID. 1040ez form 2013 pdf   On Form 1099-OID for a calendar year show the following information. 1040ez form 2013 pdf Box 1. 1040ez form 2013 pdf The OID for the actual dates the owner held the debt instruments during a calendar year. 1040ez form 2013 pdf To determine this amount, see Figuring OID, next. 1040ez form 2013 pdf Box 2. 1040ez form 2013 pdf The qualified stated interest paid or credited during the calendar year. 1040ez form 2013 pdf Interest reported here is not reported on Form 1099-INT. 1040ez form 2013 pdf The qualified stated interest on Treasury inflation-protected securities may be reported on Form 1099-INT in box 3 instead. 1040ez form 2013 pdf Box 3. 1040ez form 2013 pdf Any interest or principal forfeited because of an early withdrawal that the owner can deduct from gross income. 1040ez form 2013 pdf Do not reduce the amounts in boxes 1 and 2 by the forfeiture. 1040ez form 2013 pdf Box 4. 1040ez form 2013 pdf Any backup withholding for this debt instrument. 1040ez form 2013 pdf Box 7. 1040ez form 2013 pdf The CUSIP number, if any. 1040ez form 2013 pdf If there is no CUSIP number, give a description of the debt instrument, including the abbreviation for the stock exchange, the abbreviation used by the stock exchange for the issuer, the coupon rate, and the year of maturity (for example, NYSE XYZ 12. 1040ez form 2013 pdf 50 2006). 1040ez form 2013 pdf If the issuer of the debt instrument is other than the payer, show the name of the issuer in this box. 1040ez form 2013 pdf Box 8. 1040ez form 2013 pdf The OID on a U. 1040ez form 2013 pdf S. 1040ez form 2013 pdf Treasury obligation for the part of the year the owner held the debt instrument. 1040ez form 2013 pdf Box 9. 1040ez form 2013 pdf Investment expenses passed on to holders of a single-class REMIC. 1040ez form 2013 pdf Boxes 10-12. 1040ez form 2013 pdf Use to report any state income tax withheld for this debt instrument. 1040ez form 2013 pdf Figuring OID. 1040ez form 2013 pdf   You can determine the OID on a long-term debt instrument by using either of the following. 1040ez form 2013 pdf Section I of the OID list. 1040ez form 2013 pdf The income tax regulations. 1040ez form 2013 pdf Using Section I. 1040ez form 2013 pdf   If the owner held the debt instrument for the entire calendar year, report the OID shown in Section I for the calendar year. 1040ez form 2013 pdf Because OID is listed for each $1,000 of stated redemption price at maturity, you must adjust the listed amount to reflect the debt instrument's actual stated redemption price at maturity. 1040ez form 2013 pdf For example, if the debt instrument's stated redemption price at maturity is $500, report one-half the listed OID. 1040ez form 2013 pdf   If the owner held the debt instrument for less than the entire calendar year, figure the OID to report as follows. 1040ez form 2013 pdf Look up the daily OID for the first accrual period in the calendar year during which the owner held the debt instrument. 1040ez form 2013 pdf Multiply the daily OID by the number of days the owner held the debt instrument during that accrual period. 1040ez form 2013 pdf Repeat steps (1) and (2) for any remaining accrual periods for the year during which the owner held the debt instrument. 1040ez form 2013 pdf Add the results in steps (2) and (3) to determine the owner's OID per $1,000 of stated redemption price at maturity. 1040ez form 2013 pdf If necessary, adjust the OID in (4) to reflect the debt instrument's stated redemption price at maturity. 1040ez form 2013 pdf Report the result on Form 1099-OID in box 1. 1040ez form 2013 pdf Using the income tax regulations. 1040ez form 2013 pdf   Instead of using Section I to figure OID, you can use the regulations under sections 1272 through 1275 of the Internal Revenue Code. 1040ez form 2013 pdf For example, under the regulations, you can use monthly accrual periods in figuring OID for a debt instrument issued after April 3, 1994, that provides for monthly payments. 1040ez form 2013 pdf (If you use Section I-B, the OID is figured using 6-month accrual periods. 1040ez form 2013 pdf )   For a general explanation of the rules for figuring OID under the regulations, see Figuring OID on Long-Term Debt Instruments under Information for Owners of OID Debt Instruments, later. 1040ez form 2013 pdf Certificates of Deposit If you hold a bank certificate of deposit (CD) as a nominee, you must determine whether the CD has OID and any OID includible in the income of the owner. 1040ez form 2013 pdf You must file an information return showing the reportable interest and OID, if any, on the CD. 1040ez form 2013 pdf These rules apply whether or not you sold the CD to the owner. 1040ez form 2013 pdf Report OID on a CD in the same way as OID on other debt instruments. 1040ez form 2013 pdf See Short-Term Obligations Redeemed at Maturity and Long-Term Debt Instruments, earlier. 1040ez form 2013 pdf Bearer Bonds and Coupons If a coupon from a bearer bond is presented to you for collection before the bond matures, you generally must report the interest on Form 1099-INT. 1040ez form 2013 pdf However, do not report the interest if either of the following apply. 1040ez form 2013 pdf You hold the bond as a nominee for the true owner. 1040ez form 2013 pdf The payee is a foreign person. 1040ez form 2013 pdf See Payments to foreign person under Backup Withholding, later. 1040ez form 2013 pdf Because you cannot assume the presenter of the coupon also owns the bond, you should not report OID on the bond on Form 1099-OID. 1040ez form 2013 pdf The coupon may have been “stripped” (separated) from the bond and separately purchased. 1040ez form 2013 pdf However, if a long-term bearer bond on the OID list is presented to you for redemption upon call or maturity, you should prepare a Form 1099-OID showing the OID for that calendar year, as well as any coupon interest payments collected at the time of redemption. 1040ez form 2013 pdf Backup Withholding If you report OID on Form 1099-OID or interest on Form 1099-INT for a calendar year, you may be required to apply backup withholding to the reportable payment at a rate of 28%. 1040ez form 2013 pdf The backup withholding is deducted at the time a cash payment is made. 1040ez form 2013 pdf See Pub. 1040ez form 2013 pdf 1281, Backup Withholding for Missing and Incorrect Name/TIN(s), for more information. 1040ez form 2013 pdf Backup withholding generally applies in the following situations. 1040ez form 2013 pdf The payee does not give you a taxpayer identification number (TIN). 1040ez form 2013 pdf The IRS notifies you that the payee gave an incorrect TIN. 1040ez form 2013 pdf The IRS notifies you that the payee is subject to backup withholding due to payee underreporting. 1040ez form 2013 pdf For debt instruments acquired after 1983: The payee does not certify, under penalties of perjury, that he or she is not subject to backup withholding under (3), or The payee does not certify, under penalties of perjury, that the TIN given is correct. 1040ez form 2013 pdf However, for short-term discount obligations (other than government obligations), bearer bonds and coupons, and U. 1040ez form 2013 pdf S. 1040ez form 2013 pdf savings bonds, backup withholding applies only if the payee does not give you a TIN or gives you an obviously incorrect number for a TIN. 1040ez form 2013 pdf Short-term obligations. 1040ez form 2013 pdf   Backup withholding applies to OID on a short-term obligation only when the OID is paid at maturity. 1040ez form 2013 pdf However, backup withholding applies to any interest payable before maturity when the interest is paid or credited. 1040ez form 2013 pdf   If the owner of a short-term obligation at maturity is not the original owner and can establish the purchase price of the obligation, the amount subject to backup withholding must be determined by treating the purchase price as the issue price. 1040ez form 2013 pdf However, you can choose to disregard that price if it would require significant manual intervention in the computer or recordkeeping system used for the obligation. 1040ez form 2013 pdf If the purchase price of a listed obligation is not established or is disregarded, you must use the issue price shown in Section III. 1040ez form 2013 pdf Long-term obligations. 1040ez form 2013 pdf   If no cash payments are made on a long-term obligation before maturity, backup withholding applies only at maturity. 1040ez form 2013 pdf The amount subject to backup withholding is the OID includible in the owner's gross income for the calendar year when the obligation matures. 1040ez form 2013 pdf The amount to be withheld is limited to the cash paid. 1040ez form 2013 pdf Registered long-term obligations with cash payments. 1040ez form 2013 pdf   If a registered long-term obligation has cash payments before maturity, backup withholding applies when a cash payment is made. 1040ez form 2013 pdf The amount subject to backup withholding is the total of the qualified stated interest (defined earlier under Definitions) and OID includible in the owner's gross income for the calendar year when the payment is made. 1040ez form 2013 pdf If more than one cash payment is made during the year, the OID subject to withholding for the year must be allocated among the expected cash payments in the ratio that each bears to the total of the expected cash payments. 1040ez form 2013 pdf For any payment, the required withholding is limited to the cash paid. 1040ez form 2013 pdf Payee not the original owner. 1040ez form 2013 pdf   If the payee is not the original owner of the obligation, the OID subject to backup withholding is the OID includible in the gross income of all owners during the calendar year (without regard to any amount paid by the new owner at the time of transfer). 1040ez form 2013 pdf The amount subject to backup withholding at maturity of a listed obligation must be determined using the issue price shown in Section I. 1040ez form 2013 pdf Bearer long-term obligations with cash payments. 1040ez form 2013 pdf   If a bearer long-term obligation has cash payments before maturity, backup withholding applies when the cash payments are made. 1040ez form 2013 pdf For payments before maturity, the amount subject to withholding is the qualified stated interest (defined earlier under Definitions) includible in the owner's gross income for the calendar year. 1040ez form 2013 pdf For a payment at maturity, the amount subject to withholding is only the total of any qualified stated interest paid at maturity and the OID includible in the owner's gross income for the calendar year when the obligation matures. 1040ez form 2013 pdf The required withholding at maturity is limited to the cash paid. 1040ez form 2013 pdf Sales and redemptions. 1040ez form 2013 pdf   If you report the gross proceeds from a sale, exchange, or redemption of a debt instrument on Form 1099-B for a calendar year, you may be required to withhold 28% of the amount reported. 1040ez form 2013 pdf Backup withholding applies in the following situations. 1040ez form 2013 pdf The payee does not give you a TIN. 1040ez form 2013 pdf The IRS notifies you that the payee gave an incorrect TIN. 1040ez form 2013 pdf For debt instruments held in an account opened after 1983, the payee does not certify, under penalties of perjury, that the TIN given is correct. 1040ez form 2013 pdf Payments outside the United States to U. 1040ez form 2013 pdf S. 1040ez form 2013 pdf person. 1040ez form 2013 pdf   The requirements for backup withholding and information reporting apply to payments of OID and interest made outside the United States to a U. 1040ez form 2013 pdf S. 1040ez form 2013 pdf person, a controlled foreign corporation, or a foreign person at least 50% of whose income for the preceding 3-year period is effectively connected with the conduct of a U. 1040ez form 2013 pdf S. 1040ez form 2013 pdf trade or business. 1040ez form 2013 pdf Payments to foreign person. 1040ez form 2013 pdf   The following discussions explain the rules for backup withholding and information reporting on payments to foreign persons. 1040ez form 2013 pdf U. 1040ez form 2013 pdf S. 1040ez form 2013 pdf -source amount. 1040ez form 2013 pdf   Backup withholding and information reporting are not required for payments of U. 1040ez form 2013 pdf S. 1040ez form 2013 pdf -source OID, interest, or proceeds from a sale or redemption of an OID instrument if the payee has given you proof (generally the appropriate Form W-8 or an acceptable substitute) that the payee is a foreign person. 1040ez form 2013 pdf A U. 1040ez form 2013 pdf S. 1040ez form 2013 pdf resident is not a foreign person. 1040ez form 2013 pdf For proof of the payee's foreign status, you can rely on the appropriate Form W-8 or on documentary evidence for payments made outside the United States to an offshore account or, in case of broker proceeds, a sale effected outside the United States. 1040ez form 2013 pdf Receipt of the appropriate Form W-8 does not relieve you from information reporting and backup withholding if you actually know the payee is a U. 1040ez form 2013 pdf S. 1040ez form 2013 pdf person. 1040ez form 2013 pdf   For information about the 28% withholding tax that may apply to payments of U. 1040ez form 2013 pdf S. 1040ez form 2013 pdf -source OID or interest to foreign persons, see Publication 515. 1040ez form 2013 pdf Foreign-source amount. 1040ez form 2013 pdf   Backup withholding and information reporting are not required for payments of foreign-source OID and interest made outside the United States. 1040ez form 2013 pdf However, if the payments are made inside the United States, the requirements for backup withholding and information reporting will apply unless the payee has given you the appropriate Form W-8 or acceptable substitute as proof that the payee is a foreign person. 1040ez form 2013 pdf More information. 1040ez form 2013 pdf   For more information about backup withholding and information reporting on foreign-source amounts or payments to foreign persons, see Regulations section 1. 1040ez form 2013 pdf 6049-5. 1040ez form 2013 pdf Information for Owners of OID Debt Instruments This section is for persons who prepare their own tax returns. 1040ez form 2013 pdf It discusses the income tax rules for figuring and reporting OID on long-term debt instruments. 1040ez form 2013 pdf It also includes a similar discussion for stripped bonds and coupons, such as zero coupon bonds available through the Department of the Treasury's STRIPS program and government-sponsored enterprises such as the Resolution Funding Corporation. 1040ez form 2013 pdf However, the information provided does not cover every situation. 1040ez form 2013 pdf More information can be found in the regulations under sections 1271 through 1275 of the Internal Revenue Code. 1040ez form 2013 pdf Including OID in income. 1040ez form 2013 pdf   Generally, you include OID in income as it accrues each year, whether or not you receive any payments from the debt instrument issuer. 1040ez form 2013 pdf Exceptions. 1040ez form 2013 pdf   The rules for including OID in income as it accrues generally do not apply to the following debt instruments. 1040ez form 2013 pdf U. 1040ez form 2013 pdf S. 1040ez form 2013 pdf savings bonds. 1040ez form 2013 pdf Tax-exempt obligations. 1040ez form 2013 pdf (However, see Tax-Exempt Bonds and Coupons, later. 1040ez form 2013 pdf ) Obligations issued by individuals before March 2, 1984. 1040ez form 2013 pdf Loans of $10,000 or less between individuals who are not in the business of lending money. 1040ez form 2013 pdf (The dollar limit includes outstanding prior loans by the lender to the borrower. 1040ez form 2013 pdf ) This exception does not apply if a principal purpose of the loan is to avoid any federal tax. 1040ez form 2013 pdf   See chapter 1 of Publication 550 for information about the rules for these and other types of discounted debt instruments, such as short-term and market discount obligations. 1040ez form 2013 pdf Publication 550 also discusses rules for holders of REMIC interests and CDOs. 1040ez form 2013 pdf De minimis rule. 1040ez form 2013 pdf   You can treat OID as zero if the total OID on a debt instrument is less than one-fourth of 1% (. 1040ez form 2013 pdf 0025) of the stated redemption price at maturity multiplied by the number of full years from the date of original issue to maturity. 1040ez form 2013 pdf Debt instruments with de minimis OID are not listed in this publication. 1040ez form 2013 pdf There are special rules to determine the de minimis amount in the case of debt instruments that provide for more than one payment of principal. 1040ez form 2013 pdf Also, the de minimis rules generally do not apply to tax-exempt obligations. 1040ez form 2013 pdf Example 2. 1040ez form 2013 pdf You bought at issuance a 10-year debt instrument with a stated redemption price at maturity of $1,000, issued at $980 with OID of $20. 1040ez form 2013 pdf One-fourth of 1% of $1,000 (the stated redemption price) times 10 (the number of full years from the date of original issue to maturity) equals $25. 1040ez form 2013 pdf Under the de minimis rule, you can treat the OID as zero because the $20 discount is less than $25. 1040ez form 2013 pdf Example 3. 1040ez form 2013 pdf Assume the same facts as Example 2, except the debt instrument was issued at $950. 1040ez form 2013 pdf You must report part of the $50 OID each year because it is more than $25. 1040ez form 2013 pdf Choice to report all interest as OID. 1040ez form 2013 pdf   Generally, you can choose to treat all interest on a debt instrument acquired after April 3, 1994, as OID and include it in gross income by using the constant yield method. 1040ez form 2013 pdf See Constant yield method under Debt Instruments Issued After 1984, later, for more information. 1040ez form 2013 pdf   For this choice, interest includes stated interest, acquisition discount, OID, de minimis OID, market discount, de minimis market discount, and unstated interest, as adjusted by any amortizable bond premium or acquisition premium. 1040ez form 2013 pdf For more information, see Regulations section 1. 1040ez form 2013 pdf 1272-3. 1040ez form 2013 pdf Purchase after date of original issue. 1040ez form 2013 pdf   A debt instrument you purchased after the date of original issue may have premium, acquisition premium, or market discount. 1040ez form 2013 pdf If so, the OID reported to you on Form 1099-OID may have to be adjusted. 1040ez form 2013 pdf For more information, see Showing an OID adjustment under How To Report OID, later. 1040ez form 2013 pdf The following rules generally do not apply to contingent payment debt instruments. 1040ez form 2013 pdf Adjustment for premium. 1040ez form 2013 pdf   If your debt instrument (other than an inflation-indexed debt instrument) has premium, do not report any OID as ordinary income. 1040ez form 2013 pdf Your adjustment is the total OID shown on your Form 1099-OID. 1040ez form 2013 pdf Adjustment for acquisition premium. 1040ez form 2013 pdf   If your debt instrument has acquisition premium, reduce the OID you report. 1040ez form 2013 pdf Your adjustment is the difference between the OID shown on your Form 1099-OID and the reduced OID amount figured using the rules explained later under Figuring OID on Long-Term Debt Instruments. 1040ez form 2013 pdf Adjustment for market discount. 1040ez form 2013 pdf   If your debt instrument has market discount that you choose to include in income currently, increase the OID you report. 1040ez form 2013 pdf Your adjustment is the accrued market discount for the year. 1040ez form 2013 pdf See Market Discount Bonds in chapter 1 of Publication 550 for information on how to figure accrued market discount and include it in your income currently and for other information about market discount bonds. 1040ez form 2013 pdf If you choose to use the constant yield method to figure accrued market discount, also see Figuring OID on Long-Term Debt Instruments, later. 1040ez form 2013 pdf The constant yield method of figuring accrued OID, explained in those discussions under Constant yield method, is also used to figure accrued market discount. 1040ez form 2013 pdf For more information concerning premium or market discount on an inflation-indexed debt instrument, see Regulations section 1. 1040ez form 2013 pdf 1275-7. 1040ez form 2013 pdf Sale, exchange, or redemption. 1040ez form 2013 pdf   Generally, you treat your gain or loss from the sale, exchange, or redemption of a discounted debt instrument as a capital gain or loss if you held the debt instrument as a capital asset. 1040ez form 2013 pdf If you sold the debt instrument through a broker, you should receive Form 1099-B or an equivalent statement from the broker. 1040ez form 2013 pdf Use the Form 1099-B or other statement and your brokerage statements to complete Form 8949, and Schedule D (Form 1040). 1040ez form 2013 pdf   Your gain or loss is the difference between the amount you realized on the sale, exchange, or redemption and your basis in the debt instrument. 1040ez form 2013 pdf Your basis, generally, is your cost increased by the OID you have included in income each year you held it. 1040ez form 2013 pdf In general, to determine your gain or loss on a tax-exempt bond, figure your basis in the bond by adding to your cost the OID you would have included in income if the bond had been taxable. 1040ez form 2013 pdf   See chapter 4 of Publication 550 for more information about the tax treatment of the sale or redemption of discounted debt instruments. 1040ez form 2013 pdf Example 4. 1040ez form 2013 pdf Larry, a calendar year taxpayer, bought a corporate debt instrument at original issue for $86,235. 1040ez form 2013 pdf 00 on November 1 of Year 1. 1040ez form 2013 pdf The 15-year debt instrument matures on October 31 of Year 16 at a stated redemption price of $100,000. 1040ez form 2013 pdf The debt instrument provides for semiannual payments of interest at 10%. 1040ez form 2013 pdf Assume the debt instrument is a capital asset in Larry's hands. 1040ez form 2013 pdf The debt instrument has $13,765. 1040ez form 2013 pdf 00 of OID ($100,000 stated redemption price at maturity minus $86,235. 1040ez form 2013 pdf 00 issue price). 1040ez form 2013 pdf Larry sold the debt instrument for $90,000 on November 1 of Year 4. 1040ez form 2013 pdf Including the OID he will report for the period he held the debt instrument in Year 4, Larry has included $4,556. 1040ez form 2013 pdf 00 of OID in income and has increased his basis by that amount to $90,791. 1040ez form 2013 pdf 00. 1040ez form 2013 pdf Larry has realized a loss of $791. 1040ez form 2013 pdf 00. 1040ez form 2013 pdf All of Larry's loss is capital loss. 1040ez form 2013 pdf Form 1099-OID The issuer of the debt instrument (or your broker, if you purchased or held the debt instrument through a broker) should give you a copy of Form 1099-OID or a similar statement if the accrued OID for the calendar year is $10 or more and the term of the debt instrument is more than 1 year. 1040ez form 2013 pdf Form 1099-OID shows all OID income in box 1 except OID on a U. 1040ez form 2013 pdf S. 1040ez form 2013 pdf Treasury obligation, which is shown in box 8. 1040ez form 2013 pdf It also shows, in box 2, any qualified stated interest you must include in income. 1040ez form 2013 pdf (However, any qualified stated interest on Treasury inflation-protected securities can be reported on Form 1099-INT in box 3. 1040ez form 2013 pdf ) A copy of Form 1099-OID will be sent to the IRS. 1040ez form 2013 pdf Do not attach your copy to your tax return. 1040ez form 2013 pdf Keep it for your records. 1040ez form 2013 pdf If you are required to file a tax return and you receive Form 1099-OID showing taxable amounts, you must report these amounts on your return. 1040ez form 2013 pdf A 20% accuracy-related penalty may be charged for underpayment of tax due to either negligence or disregard of rules and regulations or substantial understatement of tax. 1040ez form 2013 pdf Form 1099-OID not received. 1040ez form 2013 pdf   If you held an OID debt instrument for a calendar year but did not receive a Form 1099-OID, refer to the discussions under Figuring OID on Long-Term Debt Instruments, later, for information on the OID you must report. 1040ez form 2013 pdf Refiguring OID. 1040ez form 2013 pdf   You must refigure the OID shown on Form 1099-OID, in box 1 or box 8, to determine the proper amount to include in income if one of the following applies. 1040ez form 2013 pdf You bought the debt instrument at a premium or at an acquisition premium. 1040ez form 2013 pdf The debt instrument is a stripped bond or coupon (including zero coupon bonds backed by U. 1040ez form 2013 pdf S. 1040ez form 2013 pdf Treasury securities). 1040ez form 2013 pdf The debt instrument is a contingent payment or inflation-indexed debt instrument. 1040ez form 2013 pdf See the discussions under Figuring OID on Long-Term Debt Instruments or Figuring OID on Stripped Bonds and Coupons, later, for the specific computations. 1040ez form 2013 pdf Refiguring interest. 1040ez form 2013 pdf   If you disposed of a debt instrument or acquired it from another holder between interest dates, see the discussion under Bonds Sold Between Interest Dates in chapter 1 of Publication 550 for information about refiguring the interest shown on Form 1099-OID in box 2. 1040ez form 2013 pdf Nominee. 1040ez form 2013 pdf   If you are the holder of an OID debt instrument and you receive a Form 1099-OID that shows your taxpayer identification number and includes amounts belonging to another person, you are considered a “nominee. 1040ez form 2013 pdf ” You must file another Form 1099-OID for each actual owner, showing the OID for the owner. 1040ez form 2013 pdf Show the owner of the debt instrument as the “recipient” and you as the “payer. 1040ez form 2013 pdf ”   Complete Form 1099-OID and Form 1096 and file the forms with the Internal Revenue Service Center for your area. 1040ez form 2013 pdf You must also give a copy of the Form 1099-OID to the actual owner. 1040ez form 2013 pdf However, you are not required to file a nominee return to show amounts belonging to your spouse. 1040ez form 2013 pdf See the Form 1099 instructions for more information. 1040ez form 2013 pdf   When preparing your tax return, follow the instructions under Showing an OID adjustment in the next discussion. 1040ez form 2013 pdf How To Report OID Generally, you report your taxable interest and OID income on the interest line of Form 1040EZ, Form 1040A, or Form 1040. 1040ez form 2013 pdf Form 1040 or Form 1040A required. 1040ez form 2013 pdf   You must use Form 1040 or Form 1040A (you cannot use Form 1040EZ) under either of the following conditions. 1040ez form 2013 pdf You received a Form 1099-OID as a nominee for the actual owner. 1040ez form 2013 pdf Your total interest and OID income for the year was more than $1,500. 1040ez form 2013 pdf Form 1040 required. 1040ez form 2013 pdf   You must use Form 1040 (you cannot use Form 1040A or Form 1040EZ) if you are reporting more or less OID than the amount shown on Form 1099-OID, other than because you are a nominee. 1040ez form 2013 pdf For example, if you paid a premium or an acquisition premium when you purchased the debt instrument, you must use Form 1040 because you will report less OID than shown on Form 1099-OID. 1040ez form 2013 pdf Also, you must use Form 1040 if you were charged an early withdrawal penalty. 1040ez form 2013 pdf Where to report. 1040ez form 2013 pdf   List each payer's name (if a brokerage firm gave you a Form 1099, list the brokerage firm as the payer) and the amount received from each payer on Form 1040A, Schedule B, Part I, line 1, or Form 1040, Schedule B, line 1. 1040ez form 2013 pdf Include all OID and periodic interest shown on any Form 1099-OID, boxes 1, 2, and 8, you received for the tax year. 1040ez form 2013 pdf Also include any other OID and interest income for which you did not receive a Form 1099. 1040ez form 2013 pdf Showing an OID adjustment. 1040ez form 2013 pdf   If you use Form 1040 to report more or less OID than shown on Form 1099-OID, list the full OID on Schedule B, Part I, line 1, and follow the instructions under 1 or 2, next. 1040ez form 2013 pdf   If you use Form 1040A to report the OID shown on a Form 1099-OID you received as a nominee for the actual owner, list the full OID on Schedule B, Part I, line 1 and follow the instructions under 1. 1040ez form 2013 pdf If the OID, as adjusted, is less than the amount shown on Form 1099-OID, show the adjustment as follows. 1040ez form 2013 pdf Under your last entry on line 1, subtotal all interest and OID income listed on line 1. 1040ez form 2013 pdf Below the subtotal, write “Nominee Distribution” or “OID Adjustment” and show the OID you are not required to report. 1040ez form 2013 pdf Subtract that OID from the subtotal and enter the result on line 2. 1040ez form 2013 pdf If the OID, as adjusted, is more than the amount shown on Form 1099-OID, show the adjustment as follows. 1040ez form 2013 pdf Under your last entry on line 1, subtotal all interest and OID income listed on line 1. 1040ez form 2013 pdf Below the subtotal, write “OID Adjustment” and show the additional OID. 1040ez form 2013 pdf Add that OID to the subtotal and enter the result on line 2. 1040ez form 2013 pdf Figuring OID on Long-Term Debt Instruments How you figure the OID on a long-term debt instrument depends on the date it was issued. 1040ez form 2013 pdf It also may depend on the type of the debt instrument. 1040ez form 2013 pdf There are different rules for each of the following debt instruments. 1040ez form 2013 pdf Corporate debt instruments issued after 1954 and before May 28, 1969, and government debt instruments issued after 1954 and before July 2, 1982. 1040ez form 2013 pdf Corporate debt instruments issued after May 27, 1969, and before July 2, 1982. 1040ez form 2013 pdf Debt instruments issued after July 1, 1982, and before 1985. 1040ez form 2013 pdf Debt instruments issued after 1984 (other than debt instruments described in (5) and (6)). 1040ez form 2013 pdf Contingent payment debt instruments issued after August 12, 1996. 1040ez form 2013 pdf Inflation-indexed debt instruments (including Treasury inflation-protected securities) issued after January 5, 1997. 1040ez form 2013 pdf Zero coupon bonds. 1040ez form 2013 pdf   The rules for figuring OID on zero coupon bonds backed by U. 1040ez form 2013 pdf S. 1040ez form 2013 pdf Treasury securities are discussed under Figuring OID on Stripped Bonds and Coupons, later. 1040ez form 2013 pdf Corporate Debt Instruments Issued After 1954 and Before May 28, 1969, and Government Debt Instruments Issued After 1954 and Before July 2, 1982 If you hold these debt instruments as capital assets, you include OID in income only in the year the debt instrument is sold, exchanged, or redeemed, and only if you have a gain. 1040ez form 2013 pdf The OID, which is taxed as ordinary income, generally equals the following amount. 1040ez form 2013 pdf   number of full months you held the debt instrument  number of full months from date of original issue to date of maturity X original issue discount The balance of the gain is capital gain. 1040ez form 2013 pdf If there is a loss on the sale of the debt instrument, the entire loss is a capital loss and no OID is reported. 1040ez form 2013 pdf Corporate Debt Instruments Issued After May 27, 1969, and Before July 2, 1982 If you hold these debt instruments as capital assets, you must include part of the OID in income each year you own the debt instruments. 1040ez form 2013 pdf For information about showing the correct OID on your tax return, see the discussion under How To Report OID, earlier. 1040ez form 2013 pdf Your basis in the debt instrument is increased by the OID you include in income. 1040ez form 2013 pdf Form 1099-OID. 1040ez form 2013 pdf   You should receive a Form 1099-OID showing OID for the part of the year you held the debt instrument. 1040ez form 2013 pdf However, if you paid an acquisition premium, you may need to refigure the OID to report on your tax return. 1040ez form 2013 pdf See Reduction for acquisition premium, later. 1040ez form 2013 pdf If you held an OID debt instrument in a calendar year but did not receive a Form 1099-OID, see Form 1099-OID not received, immediately below, and refer to Section I-A available at www. 1040ez form 2013 pdf irs. 1040ez form 2013 pdf gov/pub1212 by clicking the link under Recent Developments. 1040ez form 2013 pdf Form 1099-OID not received. 1040ez form 2013 pdf    The OID listed is for each $1,000 of redemption price. 1040ez form 2013 pdf You must adjust the listed amount if your debt instrument has a different principal amount. 1040ez form 2013 pdf For example, if you have a debt instrument with a $500 principal amount, use one-half the listed amount to figure your OID. 1040ez form 2013 pdf   If you held the debt instrument the entire year, use the OID shown in Section I-A for a calendar year. 1040ez form 2013 pdf (If your debt instrument is not listed in Section I-A, consult the issuer for information about the issue price and the OID that accrued for that year. 1040ez form 2013 pdf ) If you did not hold the debt instrument the entire year, figure your OID using the following method. 1040ez form 2013 pdf Divide the OID shown by 12. 1040ez form 2013 pdf Multiply the result in (1) by the number of complete and partial months (for example, 6½ months) you held the debt instrument during a calendar year. 1040ez form 2013 pdf This is the OID to include in income unless you paid an acquisition premium. 1040ez form 2013 pdf The reduction for acquisition premium is discussed next. 1040ez form 2013 pdf Reduction for acquisition premium. 1040ez form 2013 pdf   If you bought the debt instrument at an acquisition premium, figure the OID to include in income as follows. 1040ez form 2013 pdf Divide the total OID on the debt instrument by the number of complete months, and any part of a month, from the date of original issue to the maturity date. 1040ez form 2013 pdf This is the monthly OID. 1040ez form 2013 pdf Subtract from your cost the issue price and the accumulated OID from the date of issue to the date of purchase. 1040ez form 2013 pdf (If the result is zero or less, stop here. 1040ez form 2013 pdf You did not pay an acquisition premium. 1040ez form 2013 pdf ) Divide the amount figured in (2) by the number of complete months, and any part of a month, from the date of your purchase to the maturity date. 1040ez form 2013 pdf Subtract the amount figured in (3) from the amount figured in (1). 1040ez form 2013 pdf This is the OID to include in income for each month you hold the debt instrument during the year. 1040ez form 2013 pdf Transfers during the month. 1040ez form 2013 pdf   If you buy or sell a debt instrument on any day other than the same day of the month as the date of original issue, the ratable monthly portion of OID for the month of sale is divided between the seller and the buyer according to the number of days each held the debt instrument. 1040ez form 2013 pdf Your holding period for this purpose begins the day you acquire the debt instrument and ends the day before you dispose of it. 1040ez form 2013 pdf Debt Instruments Issued After July 1, 1982, and Before 1985 If you hold these debt instruments as capital assets, you must include part of the OID in income each year you own the debt instruments and increase your basis by the amount included. 1040ez form 2013 pdf For information about showing the correct OID on your tax return, see How To Report OID, earlier. 1040ez form 2013 pdf Form 1099-OID. 1040ez form 2013 pdf   You should receive a Form 1099-OID showing OID for the part of the year you held the debt instrument. 1040ez form 2013 pdf However, if you paid an acquisition premium, you may need to refigure the OID to report on your tax return. 1040ez form 2013 pdf See Constant yield method and the discussions on acquisition premium that follow, later. 1040ez form 2013 pdf If you held an OID debt instrument in a calendar year but did not receive a Form 1099-OID, see Form 1099-OID not received, immediately below, and refer to Section I-A available at www. 1040ez form 2013 pdf irs. 1040ez form 2013 pdf gov/pub1212 by clicking the link under Recent Developments. 1040ez form 2013 pdf Form 1099-OID not received. 1040ez form 2013 pdf    The OID listed is for each $1,000 of redemption price. 1040ez form 2013 pdf You must adjust the listed amount if your debt instrument has a different principal amount. 1040ez form 2013 pdf For example, if you have a debt instrument with a $500 principal amount, use one-half the listed amount to figure your OID. 1040ez form 2013 pdf   If you held the debt instrument the entire year, use the OID shown in Section I-A. 1040ez form 2013 pdf (If your instrument is not listed in Section I-A, consult the issuer for information about the issue price, the yield to maturity, and the OID that accrued for that year. 1040ez form 2013 pdf ) If you did not hold the debt instrument the entire year, figure your OID using either of the following methods. 1040ez form 2013 pdf Method 1. 1040ez form 2013 pdf    Divide the total OID for a calendar year by 365 (366 for leap years). 1040ez form 2013 pdf Multiply the result in (1) by the number of days you held the debt instrument during that particular year. 1040ez form 2013 pdf  This computation is an approximation and may result in a slightly higher OID than Method 2. 1040ez form 2013 pdf Method 2. 1040ez form 2013 pdf    Look up the daily OID for the first accrual period you held the debt instrument during a calendar year. 1040ez form 2013 pdf (See Accrual period under Constant yield method, next. 1040ez form 2013 pdf ) Multiply the daily OID by the number of days you held the debt instrument during that accrual period. 1040ez form 2013 pdf If you held the debt instrument for part of both accrual periods, repeat (1) and (2) for the second accrual period. 1040ez form 2013 pdf Add the results of (2) and (3). 1040ez form 2013 pdf This is the OID to include in income, unless you paid an acquisition premium. 1040ez form 2013 pdf (The reduction for acquisition premium is discussed later. 1040ez form 2013 pdf ) Constant yield method. 1040ez form 2013 pdf   This discussion shows how to figure OID on debt instruments issued after July 1, 1982, and before 1985, using a constant yield method. 1040ez form 2013 pdf OID is allocated over the life of the debt instrument through adjustments to the issue price for each accrual period. 1040ez form 2013 pdf   Figure the OID allocable to any accrual period as follows. 1040ez form 2013 pdf Multiply the adjusted issue price at the beginning of the accrual period by the debt instrument's yield to maturity. 1040ez form 2013 pdf Subtract from the result in (1) any qualified stated interest allocable to the accrual period. 1040ez form 2013 pdf Accrual period. 1040ez form 2013 pdf   An accrual period for any OID debt instrument issued after July 1, 1982, and before 1985 is each 1-year period beginning on the date of the issue of the obligation and each anniversary thereafter, or the shorter period to maturity for the last accrual period. 1040ez form 2013 pdf Your tax year will usually include parts of two accrual periods. 1040ez form 2013 pdf Daily OID. 1040ez form 2013 pdf   The OID for any accrual period is allocated equally to each day in the accrual period. 1040ez form 2013 pdf You must include in income the sum of the OID amounts for each day you hold the debt instrument during the year. 1040ez form 2013 pdf If your tax year includes parts of two or more accrual periods, you must include the proper daily OID amounts for each accrual period. 1040ez form 2013 pdf Figuring daily OID. 1040ez form 2013 pdf   The daily OID for the initial accrual period is figured using the following formula. 1040ez form 2013 pdf   (ip × ytm) − qsi     p   ip = issue price ytm = yield to maturity qsi = qualified stated interest p = number of days in accrual period         The daily OID for subsequent accrual periods is figured the same way except the adjusted issue price at the beginning of each period is used in the formula instead of the issue price. 1040ez form 2013 pdf Reduction for acquisition premium on debt instruments purchased before July 19, 1984. 1040ez form 2013 pdf   If you bought the debt instrument at an acquisition premium before July 19, 1984, figure the OID includible in income by reducing the daily OID by the daily acquisition premium. 1040ez form 2013 pdf Figure the daily acquisition premium by dividing the total acquisition premium by the number of days in the period beginning on your purchase date and ending on the day before the date of maturity. 1040ez form 2013 pdf Reduction for acquisition premium on debt instruments purchased after July 18, 1984. 1040ez form 2013 pdf   If you bought the debt instrument at an acquisition premium after July 18, 1984, figure the OID includible in income by reducing the daily OID by the daily acquisition premium. 1040ez form 2013 pdf However, the method of figuring the daily acquisition premium is different from the method described in the preceding discussion. 1040ez form 2013 pdf To figure the daily acquisition premium under this method, multiply the daily OID by the following fraction. 1040ez form 2013 pdf The numerator is the acquisition premium. 1040ez form 2013 pdf The denominator is the total OID remaining for the debt instrument after your purchase date. 1040ez form 2013 pdf Section I-A is available at www. 1040ez form 2013 pdf irs. 1040ez form 2013 pdf gov/pub1212 and clicking the link under Recent Developments. 1040ez form 2013 pdf Using Section I-A to figure accumulated OID. 1040ez form 2013 pdf   If you bought your corporate debt instrument in a calendar year or the subsequent year, you can figure the accumulated OID to the date of purchase by adding the following amounts. 1040ez form 2013 pdf The amount from the “Total OID to January 1, YYYY” column for your debt instrument. 1040ez form 2013 pdf The OID from January 1 of a calendar year to the date of purchase, figured as follows. 1040ez form 2013 pdf Multiply the daily OID for the first accrual period in the calendar year by the number of days from January 1 to the date of purchase, or the end of the accrual period if the debt instrument was purchased in the second or third accrual period. 1040ez form 2013 pdf Multiply the daily OID for each subsequent accrual period by the number of days in the period to the date of purchase or the end of the accrual period, whichever applies. 1040ez form 2013 pdf Add the amounts figured in (2a) and (2b). 1040ez form 2013 pdf Debt Instruments Issued After 1984 If you hold debt instruments issued after 1984, you must report part of the OID in gross income each year that you own the debt instruments. 1040ez form 2013 pdf You must include the OID in gross income whether or not you hold the debt instrument as a capital asset. 1040ez form 2013 pdf Your basis in the debt instrument is increased by the OID you include in income. 1040ez form 2013 pdf For information about showing the correct OID on your tax return, see How To Report OID, earlier. 1040ez form 2013 pdf Form 1099-OID. 1040ez form 2013 pdf   You should receive a Form 1099-OID showing OID for the part of a calendar year you held the debt instrument. 1040ez form 2013 pdf However, if you paid an acquisition premium, you may need to refigure the OID to report on your tax return. 1040ez form 2013 pdf See Constant yield method and Reduction for acquisition premium, later. 1040ez form 2013 pdf   You may also need to refigure the OID for a contingent payment or inflation-indexed debt instrument on which the amount reported on Form 1099-OID is inaccurate. 1040ez form 2013 pdf See Contingent Payment Debt Instruments or Inflation-Indexed Debt Instruments, later. 1040ez form 2013 pdf If you held an OID debt instrument in a calendar year but did not receive a Form 1099-OID, see Form 1099-OID not received, immediately below, and refer to Section I-B available at www. 1040ez form 2013 pdf irs. 1040ez form 2013 pdf gov/pub1212 by clicking the link under Recent Developments. 1040ez form 2013 pdf Form 1099-OID not received. 1040ez form 2013 pdf   The OID listed is for each $1,000 of redemption price. 1040ez form 2013 pdf You must adjust the listed amount if your debt instrument has a different principal amount. 1040ez form 2013 pdf For example, if you have a debt instrument with a $500 principal amount, use one-half the listed amount to figure your OID. 1040ez form 2013 pdf   Use the OID shown in Section I-B for a calendar year if you held the debt instrument the entire year. 1040ez form 2013 pdf (If your debt instrument is not listed in Section I-B, consult the issuer for information about the issue price, the yield to maturity, and the OID that accrued for that year. 1040ez form 2013 pdf ) If you did not hold the debt instrument the entire year, figure your OID as follows. 1040ez form 2013 pdf Look up the daily OID for the first accrual period in which you held the debt instrument during a calendar year. 1040ez form 2013 pdf (See Accrual period under Constant yield method, later. 1040ez form 2013 pdf ) Multiply the daily OID by the number of days you held the debt instrument during that accrual period. 1040ez form 2013 pdf Repeat (1) and (2) for any remaining accrual periods in which you held the debt instrument. 1040ez form 2013 pdf Add the results of (2) and (3). 1040ez form 2013 pdf This is the OID to include in income for that year, unless you paid an acquisition premium. 1040ez form 2013 pdf (The reduction for acquisition premium is discussed later. 1040ez form 2013 pdf ) Tax-exempt bond. 1040ez form 2013 pdf   If you own a tax-exempt bond, figure your basis in the bond by adding to your cost the OID you would have included in income if the bond had been taxable. 1040ez form 2013 pdf You need to make this adjustment to determine if you have a gain or loss on a later disposition of the bond. 1040ez form 2013 pdf In general, use the rules that follow to determine your OID. 1040ez form 2013 pdf Constant yield method. 1040ez form 2013 pdf   This discussion shows how to figure OID on debt instruments issued after 1984 using a constant yield method. 1040ez form 2013 pdf (The special rules that apply to contingent payment debt instruments and inflation-indexed debt instruments are explained later. 1040ez form 2013 pdf ) OID is allocated over the life of the debt instrument through adjustments to the issue price for each accrual period. 1040ez form 2013 pdf   Figure the OID allocable to any accrual period as follows. 1040ez form 2013 pdf Multiply the adjusted issue price at the beginning of the accrual period by a fraction. 1040ez form 2013 pdf The numerator of the fraction is the debt instrument's yield to maturity and the denominator is the number of accrual periods per year. 1040ez form 2013 pdf The yield must be stated appropriately taking into account the length of the particular accrual period. 1040ez form 2013 pdf Subtract from the result in (1) any qualified stated interest allocable to the accrual period. 1040ez form 2013 pdf Accrual period. 1040ez form 2013 pdf   For debt instruments issued after 1984 and before April 4, 1994, an accrual period is each 6-month period that ends on the day that corresponds to the stated maturity date of the debt instrument or the date 6 months before that date. 1040ez form 2013 pdf For example, a debt instrument maturing on March 31 has accrual periods that end on September 30 and March 31 of each calendar year. 1040ez form 2013 pdf Any short period is included as the first accrual period. 1040ez form 2013 pdf   For debt instruments issued after April 3, 1994, accrual periods may be of any length and may vary in length over the term of the debt instrument, as long as each accrual period is no longer than 1 year and all payments are made on the first or last day of an accrual period. 1040ez form 2013 pdf However, the OID listed for these debt instruments in Section I-B has been figured using 6-month accrual periods. 1040ez form 2013 pdf Daily OID. 1040ez form 2013 pdf   The OID for any accrual period is allocated equally to each day in the accrual period. 1040ez form 2013 pdf Figure the amount to include in income by adding the OID for each day you hold the debt instrument during the year. 1040ez form 2013 pdf Since your tax year will usually include parts of two or more accrual periods, you must include the proper daily OID for each accrual period. 1040ez form 2013 pdf If your debt instrument has 6-month accrual periods, your tax year will usually include one full 6-month accrual period and parts of two other 6-month periods. 1040ez form 2013 pdf Figuring daily OID. 1040ez form 2013 pdf   The daily OID for the initial accrual period is figured using the following formula. 1040ez form 2013 pdf   (ip × ytm/n) − qsi     p   ip = issue price ytm = yield to maturity n = number of accrual periods in 1 year qsi = qualified stated interest p = number of days in accrual period       The daily OID for subsequent accrual periods is figured the same way except the adjusted issue price at the beginning of each period is used in the formula instead of the issue price. 1040ez form 2013 pdf Example 5. 1040ez form 2013 pdf On January 1 of Year 1, you bought a 15-year, 10% debt instrument of A Corporation at original issue for $86,235. 1040ez form 2013 pdf 17. 1040ez form 2013 pdf According to the prospectus, the debt instrument matures on December 31 of Year 15 at a stated redemption price of $100,000. 1040ez form 2013 pdf The yield to maturity is 12%, compounded semiannually. 1040ez form 2013 pdf The debt instrument provides for qualified stated interest payments of $5,000 on June 30 and December 31 of each calendar year. 1040ez form 2013 pdf The accrual periods are the 6-month periods ending on each of these dates. 1040ez form 2013 pdf The number of days for the first accrual period (January 1 through June 30) is 181 days (182 for leap years). 1040ez form 2013 pdf The daily OID for the first accrual period is figured as follows. 1040ez form 2013 pdf   ($86,235. 1040ez form 2013 pdf 17 x . 1040ez form 2013 pdf 12/2) – $5,000     181 days     = $174. 1040ez form 2013 pdf 11020 = $. 1040ez form 2013 pdf 96193   181           The adjusted issue price at the beginning of the second accrual period is the issue price plus the OID previously includible in income ($86,235. 1040ez form 2013 pdf 17 + $174. 1040ez form 2013 pdf 11), or $86,409. 1040ez form 2013 pdf 28. 1040ez form 2013 pdf The number of days for the second accrual period (July 1 through December 31) is 184 days. 1040ez form 2013 pdf The daily OID for the second accrual period is figured as follows. 1040ez form 2013 pdf   ($86,409. 1040ez form 2013 pdf 28 x . 1040ez form 2013 pdf 12/2) – $5,000     184 days     = $184. 1040ez form 2013 pdf 55681 = $1. 1040ez form 2013 pdf 00303   184 Since the first and second accrual periods coincide exactly with your tax year, you include in income for Year 1 the OID allocable to the first two accrual periods, $174. 1040ez form 2013 pdf 11 ($. 1040ez form 2013 pdf 95665 × 182 days) plus $184. 1040ez form 2013 pdf 56 ($1. 1040ez form 2013 pdf 00303 × 184 days), or $358. 1040ez form 2013 pdf 67. 1040ez form 2013 pdf Add the OID to the $10,000 interest you report on your income tax return for Year 1. 1040ez form 2013 pdf Example 6. 1040ez form 2013 pdf Assume the same facts as in Example 5, except that you bought the debt instrument at original issue on May 1 of Year 1, with a maturity date of April 30, Year 16. 1040ez form 2013 pdf Also, the interest payment dates are October 31 and April 30 of each calendar year. 1040ez form 2013 pdf The accrual periods are the 6-month periods ending on each of these dates. 1040ez form 2013 pdf The number of days for the first accrual period (May 1 through October 31) is 184 days. 1040ez form 2013 pdf The daily OID for the first accrual period is figured as follows. 1040ez form 2013 pdf   ($86,235. 1040ez form 2013 pdf 17 x . 1040ez form 2013 pdf 12/2) – $5,000     184 days     = $174. 1040ez form 2013 pdf 11020 = $. 1040ez form 2013 pdf 94625   184           The number of days for the second accrual period (November 1 through April 30) is 181 days (182 for leap years). 1040ez form 2013 pdf The daily OID for the second accrual period is figured as follows. 1040ez form 2013 pdf   ($86,409. 1040ez form 2013 pdf 28 x . 1040ez form 2013 pdf 12/2) – $5,000     181 days     = $184. 1040ez form 2013 pdf 55681 = $1. 1040ez form 2013 pdf 01965   181 If you hold the debt instrument through the end of Year 1, you must include $236. 1040ez form 2013 pdf 31 of OID in income. 1040ez form 2013 pdf This is $174. 1040ez form 2013 pdf 11 ($. 1040ez form 2013 pdf 94625 × 184 days) for the period May 1 through October 31 plus $62. 1040ez form 2013 pdf 20 ($1. 1040ez form 2013 pdf 01965 × 61 days) for the period November 1 through December 31. 1040ez form 2013 pdf The OID is added to the $5,000 interest income paid on October 31 of Year 1. 1040ez form 2013 pdf Your basis in the debt instrument is increased by the OID you include in income. 1040ez form 2013 pdf On January 1 of Year 2, your basis in the A Corporation debt instrument is $86,471. 1040ez form 2013 pdf 48 ($86,235. 1040ez form 2013 pdf 17 + $236. 1040ez form 2013 pdf 31). 1040ez form 2013 pdf Short first accrual period. 1040ez form 2013 pdf   You may have to make adjustments if a debt instrument has a short first accrual period. 1040ez form 2013 pdf For example, a debt instrument with 6-month accrual periods that is issued on February 15 and matures on October 31 has a short first accrual period that ends April 30. 1040ez form 2013 pdf (The remaining accrual periods begin on May 1 and November 1. 1040ez form 2013 pdf ) For this short period, figure the daily OID as described earlier, but adjust the yield for the length of the short accrual period. 1040ez form 2013 pdf You may use any reasonable compounding method in determining OID for a short period. 1040ez form 2013 pdf Examples of reasonable compounding methods include continuous compounding and monthly compounding (that is, simple interest within a month). 1040ez form 2013 pdf Consult your tax advisor for more information about making this computation. 1040ez form 2013 pdf   The OID for the final accrual period is the difference between the amount payable at maturity (other than a payment of qualified stated interest) and the adjusted issue price at the beginning of the final accrual period. 1040ez form 2013 pdf Reduction for acquisition premium. 1040ez form 2013 pdf   If you bought the debt instrument at an acquisition premium, figure the OID includible in income by reducing the daily OID by the daily acquisition premium. 1040ez form 2013 pdf To figure the daily acquisition premium, multiply the daily OID by the following fraction. 1040ez form 2013 pdf The numerator is the acquisition premium. 1040ez form 2013 pdf The denominator is the total OID remaining for the debt instrument after your purchase date. 1040ez form 2013 pdf Example 7. 1040ez form 2013 pdf Assume the same facts as in Example 6, except that you bought the debt instrument on November 1 of Year 1 for $87,000, after its original issue on May 1 of Year 1. 1040ez form 2013 pdf The adjusted issue price on November 1 of Year 1 is $86,409. 1040ez form 2013 pdf 28 ($86,235. 1040ez form 2013 pdf 17 + $174. 1040ez form 2013 pdf 11). 1040ez form 2013 pdf In this case, you paid an acquisition premium of $590. 1040ez form 2013 pdf 72 ($87,000 − $86,409. 1040ez form 2013 pdf 28). 1040ez form 2013 pdf The daily OID for the accrual period November 1 through April 30, reduced for the acquisition premium, is figured as follows. 1040ez form 2013 pdf 1) Daily OID on date of purchase (2nd accrual period) $1. 1040ez form 2013 pdf 01965*  2)  Acquisition premium $590. 1040ez form 2013 pdf 72    3)  Total OID remaining after purchase date ($13,764. 1040ez form 2013 pdf 83 − $174. 1040ez form 2013 pdf 11) 13,590. 1040ez form 2013 pdf 72   4) Line 2 ÷ line 3 . 1040ez form 2013 pdf 04346  5)  Line 1 × line 4 . 1040ez form 2013 pdf 04432  6)  Daily OID reduced for the acquisition premium. 1040ez form 2013 pdf Line 1 − line 5 $0. 1040ez form 2013 pdf 97533  * As shown in Example 6. 1040ez form 2013 pdf The total OID to include in income for Year 1 is $59. 1040ez form 2013 pdf 50 ($. 1040ez form 2013 pdf 97533 × 61 days). 1040ez form 2013 pdf Contingent Payment Debt Instruments This discussion shows how to figure OID on a contingent payment debt instrument issued after August 12, 1996, that was issued for cash or publicly traded property. 1040ez form 2013 pdf In general, a contingent payment debt instrument provides for one or more payments that are contingent as to timing or amount. 1040ez form 2013 pdf If you hold a contingent payment bond, you must report OID as it accrues each year. 1040ez form 2013 pdf Because the actual payments on a contingent payment debt instrument cannot be known in advance, issuers and holders cannot use the constant yield method (discussed earlier under Debt Instruments Issued After 1984) without making certain assumptions about the payments on the debt instrument. 1040ez form 2013 pdf To figure OID accruals on contingent payment debt instruments, holders and issuers must use the noncontingent bond method. 1040ez form 2013 pdf Noncontingent bond method. 1040ez form 2013 pdf    Under this method, the issuer must compute a comparable yield for the debt instrument and, based on this yield, construct a projected payment schedule for the instrument, which includes a projected fixed amount for each contingent payment. 1040ez form 2013 pdf In general, holders and issuers accrue OID on this projected payment schedule using the constant yield method that applies to fixed payment debt instruments. 1040ez form 2013 pdf When a contingent payment differs from the projected fixed amount, the holders and issuers make adjustments to their OID accruals. 1040ez form 2013 pdf If the actual contingent payment is larger than expected, both the issuer and the holder increase their OID accruals. 1040ez form 2013 pdf If the actual contingent payment is smaller than expected, holders and issuers generally decrease their OID accruals. 1040ez form 2013 pdf Form 1099-OID. 1040ez form 2013 pdf   The amount shown on Form 1099-OID in box 1 you receive for a contingent payment debt instrument may not be the correct amount to include in income. 1040ez form 2013 pdf For example, the amount may not be correct if the contingent payment was different from the projected amount. 1040ez form 2013 pdf If the amount in box 1 is not correct, you must figure the OID to report on your return under the following rules. 1040ez form 2013 pdf For information on showing an OID adjustment on your tax return, see How To Report OID, earlier. 1040ez form 2013 pdf Figuring OID. 1040ez form 2013 pdf   To figure OID on a contingent payment debt instrument, you need to know the “comparable yield” and “projected payment schedule” of the debt instrument. 1040ez form 2013 pdf The issuer must make these available to you. 1040ez form 2013 pdf Comparable yield. 1040ez form 2013 pdf   The comparable yield generally is the yield at which the issuer would issue a fixed rate debt instrument with terms and conditions similar to those of the contingent payment debt instrument. 1040ez form 2013 pdf The comparable yield is determined as of the debt instrument's issue date. 1040ez form 2013 pdf Projected payment schedule. 1040ez form 2013 pdf   The projected payment schedule for a contingent payment debt instrument includes all fixed payments due under the instrument and a projected fixed amount for each contingent payment. 1040ez form 2013 pdf The projected payment schedule is created by the issuer as of the debt instrument's issue date. 1040ez form 2013 pdf It is used to determine the issuer's and holder's interest accruals and adjustments. 1040ez form 2013 pdf Steps for figuring OID. 1040ez form 2013 pdf   Figure the OID on a contingent payment debt instrument in two steps. 1040ez form 2013 pdf Figure the OID using the constant yield method (discussed earlier under Debt Instruments Issued After 1984 ) that applies to fixed payment debt instruments. 1040ez form 2013 pdf Use the comparable yield as the yield to maturity. 1040ez form 2013 pdf In general, use the projected payment schedule to determine the instrument's adjusted issue price at the beginning of each accrual period (other than the initial period). 1040ez form 2013 pdf Do not treat any amount payable as qualified stated interest. 1040ez form 2013 pdf Adjust the OID in (1) to account for actual contingent payments. 1040ez form 2013 pdf If the contingent payment is greater than the projected fixed amount, you have a positive adjustment. 1040ez form 2013 pdf If the contingent payment is less than the projected fixed amount, you have a negative adjustment. 1040ez form 2013 pdf Net positive adjustment. 1040ez form 2013 pdf   A net positive adjustment exists for a tax year when the total of any positive adjustments described in (2) above for the tax year is more than the total of any negative adjustments for the tax year. 1040ez form 2013 pdf Treat a net positive adjustment as additional OID for the tax year. 1040ez form 2013 pdf Net negative adjustment. 1040ez form 2013 pdf   A net negative adjustment exists for a tax year when the total of any negative adjustments described in (2) above for the tax year is more than the total of any positive adjustments for the tax year. 1040ez form 2013 pdf Use a net negative adjustment to offset OID on the debt instrument for the tax year. 1040ez form 2013 pdf If the net negative adjustment is more than the OID on the debt instrument for the tax year, you can claim the difference as an ordinary loss. 1040ez form 2013 pdf However, the amount you can claim as an ordinary loss is limited to the OID on the debt instrument you included in income in prior tax years. 1040ez form 2013 pdf You must carry forward any net negative adjustment that is more than the total OID for the tax year and prior tax years and treat it as a negative adjustment in the next tax year. 1040ez form 2013 pdf Basis adjustments. 1040ez form 2013 pdf   In general, increase your basis in a contingent payment debt instrument by the OID included in income. 1040ez form 2013 pdf Your basis, however, is not affected by any negative or positive adjustments. 1040ez form 2013 pdf Decrease your basis by any noncontingent payment received and the projected contingent payment scheduled to be received. 1040ez form 2013 pdf Treatment of gain or loss on sale or exchange. 1040ez form 2013 pdf   If you sell a contingent payment debt instrument at a gain, your gain is ordinary income (interest income), even if you hold the debt instrument as a capital asset. 1040ez form 2013 pdf If you sell a contingent payment debt instrument at a loss, your loss is an ordinary loss to the extent of your prior OID accruals on the debt instrument. 1040ez form 2013 pdf If the debt instrument is a capital asset, treat any loss that is more than your prior OID accruals as a capital loss. 1040ez form 2013 pdf See Regulations section 1. 1040ez form 2013 pdf 1275-4 for exceptions to these rules. 1040ez form 2013 pdf Premium, acquisition premium, and market discount. 1040ez form 2013 pdf   The rules for accruing premium, acquisition premium, and market discount do not apply to a contingent payment debt instrument. 1040ez form 2013 pdf See Regulations section 1. 1040ez form 2013 pdf 1275-4 to determine how to account for these items. 1040ez form 2013 pdf Inflation-Indexed Debt Instruments This discussion shows how you figure OID on certain inflation-indexed debt instruments issued after January 5, 1997. 1040ez form 2013 pdf An inflation-indexed debt instrument is generally a debt instrument on which the payments are adjusted for inflation and d
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The 1040ez Form 2013 Pdf

1040ez form 2013 pdf 7. 1040ez form 2013 pdf   Filing Information Table of Contents Introduction Topics - This chapter discusses: Useful Items - You may want to see: What, When, and Where To FileResident Aliens Nonresident Aliens Amended Returns and Claims for Refund Other Forms You May Have To File PenaltiesCivil Penalties Criminal Penalties Introduction This chapter provides the basic filing information that you may need. 1040ez form 2013 pdf Topics - This chapter discusses: Forms aliens must file, When and where to file, Penalties, and Amended returns and claims for refund. 1040ez form 2013 pdf Useful Items - You may want to see: Forms (and Instructions) 1040 U. 1040ez form 2013 pdf S. 1040ez form 2013 pdf Individual Income Tax Return 1040A U. 1040ez form 2013 pdf S. 1040ez form 2013 pdf Individual Income Tax Return 1040EZ Income Tax Return for Single and Joint Filers With No Dependents 1040NR U. 1040ez form 2013 pdf S. 1040ez form 2013 pdf Nonresident Alien Income Tax Return 1040NR-EZ U. 1040ez form 2013 pdf S. 1040ez form 2013 pdf Income Tax Return for Certain Nonresident Aliens With No Dependents See chapter 12 for information about getting these forms. 1040ez form 2013 pdf What, When, and Where To File What return you must file as well as when and where you file that return, depends on your status at the end of the tax year as a resident or a nonresident alien. 1040ez form 2013 pdf Resident Aliens Resident aliens should file Form 1040EZ, 1040A, or 1040 at the address shown in the instructions for that form. 1040ez form 2013 pdf The due date for filing the return and paying any tax due is April 15 of the year following the year for which you are filing a return (but see the Tip, later). 1040ez form 2013 pdf Under U. 1040ez form 2013 pdf S. 1040ez form 2013 pdf immigration law, a lawful permanent resident who is required to file a tax return as a resident and fails to do so may be regarded as having abandoned status and may lose permanent resident status. 1040ez form 2013 pdf Extensions of time to file. 1040ez form 2013 pdf   You are allowed an automatic extension to June 15 to file if your main place of business and the home you live in are outside the United States and Puerto Rico on April 15. 1040ez form 2013 pdf You can get an extension of time to October 15 to file your return if you get an extension by April 15 (June 15 if you qualify for the June 15 extension). 1040ez form 2013 pdf Use Form 4868 to get the extension to October 15. 1040ez form 2013 pdf In addition to this 6-month extension, taxpayers who are out of the country (as defined in the Form 4868 instructions) can request a discretionary 2-month additional extension of time to file their returns (to December 15 for calendar year taxpayers). 1040ez form 2013 pdf To request this extension, you must send the IRS a letter explaining the reasons why you need the additional 2 months. 1040ez form 2013 pdf Send the letter by the extended due date (October 15 for calendar year taxpayers) to the following address:  Department of the Treasury Internal Revenue Service Center Austin, TX 73301-0215   You will not receive any notification from the IRS unless your request is denied for being untimely. 1040ez form 2013 pdf   The discretionary 2-month additional extension is not available to taxpayers who have an approved extension of time to file on Form 2350 (for U. 1040ez form 2013 pdf S. 1040ez form 2013 pdf citizens and resident aliens abroad who expect to qualify for special tax treatment). 1040ez form 2013 pdf    If the due date for filing falls on a Saturday, Sunday, or legal holiday, the due date is the next day which is not a Saturday, Sunday, or legal holiday. 1040ez form 2013 pdf You may be able to file your return electronically. 1040ez form 2013 pdf See IRS e-file in your form instructions. 1040ez form 2013 pdf Nonresident Aliens Nonresident aliens who are required to file an income tax return should use Form 1040NR or, if qualified, Form 1040NR-EZ. 1040ez form 2013 pdf If you are any of the following, you must file a return. 1040ez form 2013 pdf A nonresident alien individual engaged or considered to be engaged in a trade or business in the United States during 2013. 1040ez form 2013 pdf (But see Exceptions , later. 1040ez form 2013 pdf ) You must file even if: Your income did not come from a trade or business conducted in the United States, You have no income from U. 1040ez form 2013 pdf S. 1040ez form 2013 pdf sources, or Your income is exempt from income tax. 1040ez form 2013 pdf A nonresident alien individual not engaged in a trade or business in the United States with U. 1040ez form 2013 pdf S. 1040ez form 2013 pdf income on which the tax liability was not satisfied by the withholding of tax at the source. 1040ez form 2013 pdf A representative or agent responsible for filing the return of an individual described in (1) or (2). 1040ez form 2013 pdf A fiduciary for a nonresident alien estate or trust. 1040ez form 2013 pdf You must also file if you want to: Claim a refund of overwithheld or overpaid tax, or Claim the benefit of any deductions or credits. 1040ez form 2013 pdf For example, if you have no U. 1040ez form 2013 pdf S. 1040ez form 2013 pdf business activities but have income from real property that you choose to treat as effectively connected income (discussed in chapter 4), you must timely file a true and accurate return to take any allowable deductions against that income. 1040ez form 2013 pdf For information on what is timely, see When to file for deductions and credits under When To File, later. 1040ez form 2013 pdf Exceptions. 1040ez form 2013 pdf   You do not need to file Form 1040NR or Form 1040NR-EZ if you meet either of the following conditions. 1040ez form 2013 pdf Your only U. 1040ez form 2013 pdf S. 1040ez form 2013 pdf trade or business was the performance of personal services, and Your wages were less than $3,900, and You have no other need to file a return to claim a refund of overwithheld taxes, to satisfy additional withholding at source, or to claim income exempt or partly exempt by treaty. 1040ez form 2013 pdf You were a nonresident alien student, teacher, or trainee who was temporarily present in the United States under an “F,” “J,” “M,” or “Q” visa and you have no income that is subject to tax, such as wages, tips, scholarship and fellowship grants, dividends, etc. 1040ez form 2013 pdf Even if you have left the United States and filed a Form 1040-C, U. 1040ez form 2013 pdf S. 1040ez form 2013 pdf Departing Alien Income Tax Return, on departure, you still must file an annual U. 1040ez form 2013 pdf S. 1040ez form 2013 pdf income tax return. 1040ez form 2013 pdf If you are married and both you and your spouse are required to file, you must each file a separate return. 1040ez form 2013 pdf Form 1040NR-EZ You can use Form 1040NR-EZ if all of the following conditions are met. 1040ez form 2013 pdf You do not claim any dependents. 1040ez form 2013 pdf You cannot be claimed as a dependent on someone else's U. 1040ez form 2013 pdf S. 1040ez form 2013 pdf tax return. 1040ez form 2013 pdf If you were married, you do not claim an exemption for your spouse. 1040ez form 2013 pdf Your taxable income is less than $100,000. 1040ez form 2013 pdf The only itemized deduction you can claim is for state and local income taxes. 1040ez form 2013 pdf Note. 1040ez form 2013 pdf Residents of India who were students or business apprentices may be able to take the standard deduction instead of the itemized deduction for state and local income taxes. 1040ez form 2013 pdf See chapter 5. 1040ez form 2013 pdf Your only U. 1040ez form 2013 pdf S. 1040ez form 2013 pdf source income is from wages, salaries, tips, taxable refunds of state and local income taxes, scholarship or fellowship grants, and nontaxable interest or dividends. 1040ez form 2013 pdf (If you had taxable interest or dividend income, you cannot use this form. 1040ez form 2013 pdf ) You are not claiming any adjustments to income other than the student loan interest deduction or scholarship and fellowship grants excluded. 1040ez form 2013 pdf You are not claiming any tax credits. 1040ez form 2013 pdf This is not an “expatriation return. 1040ez form 2013 pdf ” See Expatriation Tax in chapter 4. 1040ez form 2013 pdf The only taxes you owe are: The income tax from the Tax Table. 1040ez form 2013 pdf The social security and Medicare tax from Form 4137 or Form 8919. 1040ez form 2013 pdf You are not claiming a credit for excess social security and tier 1 RRTA tax withheld. 1040ez form 2013 pdf You are not filing Form 8959, to figure the amount of Additional Medicare Tax you owe and/or the amount of Additional Medicare Tax withheld by your employer, if any. 1040ez form 2013 pdf If you do not meet all of the above conditions, you must file Form 1040NR. 1040ez form 2013 pdf When To File If you are an employee and you receive wages subject to U. 1040ez form 2013 pdf S. 1040ez form 2013 pdf income tax withholding, you will generally file by the 15th day of the 4th month after your tax year ends. 1040ez form 2013 pdf For the 2013 calendar year, file your return by April 15, 2014. 1040ez form 2013 pdf If you are not an employee who receives wages subject to U. 1040ez form 2013 pdf S. 1040ez form 2013 pdf income tax withholding, you must file by the 15th day of the 6th month after your tax year ends. 1040ez form 2013 pdf For the 2013 calendar year, file your return by June 16, 2014 (because June 15 is a Sunday. 1040ez form 2013 pdf ) Extensions of time to file. 1040ez form 2013 pdf   If you cannot file your return by the due date, file Form 4868 or use one of the electronic filing options explained in the Form 4868 instructions. 1040ez form 2013 pdf For the 2013 calendar year, this will extend the due date to October 15, 2014 (December 15, 2014, if the regular due date of your return is June 16, 2014). 1040ez form 2013 pdf You must file the extension by the regular due date of your return. 1040ez form 2013 pdf   In addition to the 6-month extension to October 15, taxpayers whose main place of business is outside the United States and Puerto Rico and who live outside those jurisdictions can request a discretionary 2-month extension of time to file their returns (to December 15 for calendar year taxpayers). 1040ez form 2013 pdf To request this extension, you must send the IRS a letter explaining the reasons why you need the additional 2 months. 1040ez form 2013 pdf Send the letter by the extended due date (October 15 for calendar year taxpayers) to the following address: Department of the Treasury Internal Revenue Service Center Austin, TX 73301-0215   You will not receive any notification from the IRS unless your request is denied for being untimely. 1040ez form 2013 pdf When to file for deductions and credits. 1040ez form 2013 pdf   To get the benefit of any allowable deductions or credits, you must timely file a true and accurate return. 1040ez form 2013 pdf For this purpose, a return is timely if it is filed within 16 months of the due date just discussed. 1040ez form 2013 pdf However, if you did not file a 2012 tax return and 2013 is not the first year for which you are required to file one, your 2013 return is timely for this purpose if it is filed by the earlier of: The date that is 16 months after the due date for filing your 2013 return, or The date the IRS notifies you that your 2013 return has not been filed and that you cannot claim certain deductions and credits. 1040ez form 2013 pdf The allowance of the following credits is not affected by this time requirement. 1040ez form 2013 pdf Credit for withheld taxes. 1040ez form 2013 pdf Credit for excise tax on certain uses of gasoline and special fuels. 1040ez form 2013 pdf Credit for tax paid by a mutual fund (or other regulated investment company) or a real estate investment trust on undistributed long-term capital gains. 1040ez form 2013 pdf Protective return. 1040ez form 2013 pdf   If your activities in the United States were limited and you do not believe that you had any gross income effectively connected with a U. 1040ez form 2013 pdf S. 1040ez form 2013 pdf trade or business during the year, you can file a protective return (Form 1040NR) by the deadline explained above. 1040ez form 2013 pdf By filing a protective return, you protect your right to receive the benefit of deductions and credits in the event it is later determined that some or all of your income is effectively connected. 1040ez form 2013 pdf You are not required to report any effectively connected income or any deductions on the protective return, but you must give the reason the return is being filed. 1040ez form 2013 pdf   If you believe some of your activities resulted in effectively connected income, file your return reporting that income and related deductions by the regular due date. 1040ez form 2013 pdf To protect your right to claim deductions or credits resulting from other activities, attach a statement to that return explaining that you wish to protect your right to claim deductions and credits if it is later determined that the other activities produced effectively connected income. 1040ez form 2013 pdf   You can follow the same procedure if you believe you have no U. 1040ez form 2013 pdf S. 1040ez form 2013 pdf tax liability because of a U. 1040ez form 2013 pdf S. 1040ez form 2013 pdf tax treaty. 1040ez form 2013 pdf Be sure to also complete item L on page 5 of Form 1040NR. 1040ez form 2013 pdf Waiver of filing deadline. 1040ez form 2013 pdf   The IRS may waive the filing deadline if you establish that, based on the facts and circumstances, you acted reasonably and in good faith in failing to file a U. 1040ez form 2013 pdf S. 1040ez form 2013 pdf income tax return (including a protective return) and you cooperate with the IRS in determining your U. 1040ez form 2013 pdf S. 1040ez form 2013 pdf income tax liability for the tax year for which you did not file a return. 1040ez form 2013 pdf Where To File If you are not enclosing a payment, file Form 1040NR-EZ and Form 1040NR at the following address. 1040ez form 2013 pdf  Department of the Treasury Internal Revenue Service Center Austin, TX 73301-0215 If enclosing a payment, mail your return to:  Internal Revenue Service  P. 1040ez form 2013 pdf O. 1040ez form 2013 pdf Box 1303 Charlotte, NC 28201-1303 Aliens from the U. 1040ez form 2013 pdf S. 1040ez form 2013 pdf Virgin Islands. 1040ez form 2013 pdf    If you are a bona fide resident of the U. 1040ez form 2013 pdf S. 1040ez form 2013 pdf Virgin Islands during your entire tax year and work temporarily in the United States, you must pay your income taxes to the U. 1040ez form 2013 pdf S. 1040ez form 2013 pdf Virgin Islands and file your income tax returns at the following address. 1040ez form 2013 pdf Virgin Islands Bureau of Internal Revenue 6115 Estate Smith Bay Suite 225 St. 1040ez form 2013 pdf Thomas, VI 00802   Report all income from U. 1040ez form 2013 pdf S. 1040ez form 2013 pdf sources, as well as income from other sources, on your return. 1040ez form 2013 pdf For information on filing U. 1040ez form 2013 pdf S. 1040ez form 2013 pdf Virgin Islands returns, contact the U. 1040ez form 2013 pdf S. 1040ez form 2013 pdf Virgin Islands Bureau of Internal Revenue. 1040ez form 2013 pdf   Chapter 8 discusses withholding from U. 1040ez form 2013 pdf S. 1040ez form 2013 pdf wages of U. 1040ez form 2013 pdf S. 1040ez form 2013 pdf Virgin Islanders. 1040ez form 2013 pdf Aliens from Guam or the Commonwealth of the Northern Mariana Islands. 1040ez form 2013 pdf   If you are a bona fide resident of Guam or the Commonwealth of the Northern Mariana Islands (CNMI) during your entire tax year, you must file your return with, and pay any tax due to, Guam or the CNMI. 1040ez form 2013 pdf Report all income, including income from U. 1040ez form 2013 pdf S. 1040ez form 2013 pdf sources, on your return. 1040ez form 2013 pdf It is not necessary to file a separate U. 1040ez form 2013 pdf S. 1040ez form 2013 pdf income tax return. 1040ez form 2013 pdf    Bona fide residents of Guam should file their Guam returns at the following address. 1040ez form 2013 pdf   Department of Revenue and Taxation Government of Guam P. 1040ez form 2013 pdf O. 1040ez form 2013 pdf Box 23607 GMF, GU 96921    Bona fide residents of the CNMI should file their CNMI income tax returns at the following address. 1040ez form 2013 pdf   Department of Finance Division of Revenue and Taxation Commonwealth of the Northern Mariana Islands P. 1040ez form 2013 pdf O. 1040ez form 2013 pdf Box 5234 CHRB Saipan, MP 96950   If you are not a bona fide resident of Guam or the CNMI, see Pub. 1040ez form 2013 pdf 570, Tax Guide for Individuals With Income From U. 1040ez form 2013 pdf S. 1040ez form 2013 pdf Possessions, for information on where to file your return. 1040ez form 2013 pdf Amended Returns and Claims for Refund If you find changes in your income, deductions, or credits after you mail your return, file Form 1040X, Amended U. 1040ez form 2013 pdf S. 1040ez form 2013 pdf Individual Income Tax Return. 1040ez form 2013 pdf Also use Form 1040X if you should have filed Form 1040, 1040A, or 1040EZ instead of Form 1040NR or 1040NR-EZ, or vice versa. 1040ez form 2013 pdf If you amend Form 1040NR or Form 1040NR-EZ or file the correct return, attach the corrected return (Form 1040, Form 1040NR, etc. 1040ez form 2013 pdf ) to Form 1040X. 1040ez form 2013 pdf Print “Amended” across the top. 1040ez form 2013 pdf Ordinarily, an amended return claiming a refund must be filed within 3 years from the date your return was filed or within 2 years from the time the tax was paid, whichever is later. 1040ez form 2013 pdf A return filed before the final due date is considered to have been filed on the due date. 1040ez form 2013 pdf Other Forms You May Have To File You may be required to file information returns to report certain foreign income or assets, or monetary transactions. 1040ez form 2013 pdf FinCen Form 105 FinCEN Form 105 (formerly Customs Form 4790), Report of International Transportation of Currency or Monetary Instruments, must be filed by each person who physically transports, mails, or ships, or causes to be physically transported, mailed, or shipped, currency or other monetary instruments in a total amount of more than $10,000 at one time from the United States to any place outside the United States, or into the United States from any place outside the United States. 1040ez form 2013 pdf The filing requirement also applies to each person who receives in the United States currency or monetary instruments totaling more than $10,000 at one time from any place outside of the United States. 1040ez form 2013 pdf The term “monetary instruments” means the following: Coin and currency of the United States or of any other country, Travelers' checks in any form, Investment securities or stock in bearer form or otherwise in such form that title to them passes upon delivery, Negotiable instruments (including checks, promissory notes, and money orders) in bearer form, endorsed without restriction, made out to a fictitious payee, or otherwise in such form that title to them passes upon delivery, and Checks, promissory notes, and money orders which are signed but on which the name of the payee has been omitted. 1040ez form 2013 pdf However, the term does not include: Checks or money orders made payable to the order of a named person which have not been endorsed or which contain restrictive endorsements, Warehouse receipts, or Bills of lading. 1040ez form 2013 pdf A transfer of funds through normal banking procedures (wire transfer) that does not involve the physical transportation of currency or monetary instruments is not required to be reported on FinCEN Form 105. 1040ez form 2013 pdf Filing requirements. 1040ez form 2013 pdf   FinCEN Form 105 filing requirements follow. 1040ez form 2013 pdf Recipients. 1040ez form 2013 pdf   Each person who receives currency or other monetary instruments in the United States must file FinCEN Form 105 within 15 days after receipt, with the Customs officer in charge at any port of entry or departure, or by mail at the following address. 1040ez form 2013 pdf Commissioner of Customs  Attention: Currency Transportation Reports Washington, DC 20229 Shippers or mailers. 1040ez form 2013 pdf   If the currency or other monetary instrument does not accompany the person entering or departing the United States, FinCEN Form 105 can be filed by mail at the above address on or before the date of entry, departure, mailing, or shipping. 1040ez form 2013 pdf Travelers. 1040ez form 2013 pdf   Travelers must file FinCEN Form 105 with the Customs officer in charge at any Customs port of entry or departure, when entering or departing the United States. 1040ez form 2013 pdf Penalties. 1040ez form 2013 pdf   Civil and criminal penalties are provided for failing to file a report, filing a report containing material omissions or misstatements, or filing a false or fraudulent report. 1040ez form 2013 pdf Also, the entire amount of the currency or monetary instrument may be subject to seizure and forfeiture. 1040ez form 2013 pdf More information. 1040ez form 2013 pdf   More information regarding the filing of FinCEN Form 105 can be found in the instructions on the back of the form. 1040ez form 2013 pdf Form 8938 You may have to file Form 8938, Statement of Specified Foreign Financial Assets, to report the ownership of specified foreign financial asset(s) if you are one of the following individuals. 1040ez form 2013 pdf A resident alien of the United States for any part of the tax year. 1040ez form 2013 pdf A resident alien of the United States who elects to be treated as a resident of a foreign country under the provisions of a U. 1040ez form 2013 pdf S. 1040ez form 2013 pdf income tax treaty. 1040ez form 2013 pdf See Effect of Tax Treaties in chapter 1. 1040ez form 2013 pdf A nonresident alien who makes an election to be treated as a resident alien for purposes of filing a joint income tax return. 1040ez form 2013 pdf See chapter 1 for information about this election. 1040ez form 2013 pdf A nonresident alien who is a bona fide resident of American Samoa or Puerto Rico. 1040ez form 2013 pdf See Publication 570, Tax Guide for Individuals With Income From U. 1040ez form 2013 pdf S. 1040ez form 2013 pdf Possessions, for a definition of bona fide resident. 1040ez form 2013 pdf You must file Form 8938 if the total value of those assets exceeds an applicable threshold (the “reporting threshold”). 1040ez form 2013 pdf The reporting threshold varies depending on whether you live in the United States, are married, or file a joint income tax return with your spouse. 1040ez form 2013 pdf Specified foreign financial assets include any financial account maintained by a foreign financial institution and, to the extent held for investment, any stock, securities, or any other interest in a foreign entity and any financial instrument or contract with an issuer or counterparty that is not a U. 1040ez form 2013 pdf S. 1040ez form 2013 pdf person. 1040ez form 2013 pdf You may have to pay penalties if you are required to file Form 8938 and fail to do so, or if you have an understatement of tax due to any transaction involving an undisclosed foreign financial asset. 1040ez form 2013 pdf More information about the filing of Form 8938 can be found in the separate instructions for Form 8938. 1040ez form 2013 pdf Penalties The law provides penalties for failure to file returns or pay taxes as required. 1040ez form 2013 pdf Civil Penalties If you do not file your return and pay your tax by the due date, you may have to pay a penalty. 1040ez form 2013 pdf You may also have to pay a penalty if you substantially understate your tax, file a frivolous tax submission, or fail to supply your taxpayer identification number. 1040ez form 2013 pdf If you provide fraudulent information on your return, you may have to pay a civil fraud penalty. 1040ez form 2013 pdf Filing late. 1040ez form 2013 pdf   If you do not file your return by the due date (including extensions), you may have to pay a failure-to-file penalty. 1040ez form 2013 pdf The penalty is based on the tax not paid by the due date (without regard to extensions). 1040ez form 2013 pdf The penalty is usually 5% for each month or part of a month that a return is late, but not more than 25%. 1040ez form 2013 pdf Fraud. 1040ez form 2013 pdf   If your failure to file is due to fraud, the penalty is 15% for each month or part of a month that your return is late, up to a maximum of 75%. 1040ez form 2013 pdf Return over 60 days late. 1040ez form 2013 pdf   If you file your return more than 60 days after the due date or extended due date, the minimum penalty is the smaller of $135 or 100% of the unpaid tax. 1040ez form 2013 pdf Exception. 1040ez form 2013 pdf   You will not have to pay the penalty if you show that you failed to file on time because of reasonable cause and not because of willful neglect. 1040ez form 2013 pdf Paying tax late. 1040ez form 2013 pdf   You will have to pay a failure-to-pay penalty of ½ of 1% (. 1040ez form 2013 pdf 50%) of your unpaid taxes for each month, or part of a month, after the due date that the tax is not paid. 1040ez form 2013 pdf This penalty does not apply during the automatic 6-month extension of time to file period, if you paid at least 90% of your actual tax liability on or before the due date of your return and pay the balance when you file the return. 1040ez form 2013 pdf   The monthly rate of the failure-to-pay penalty is half the usual rate (. 1040ez form 2013 pdf 25% instead of . 1040ez form 2013 pdf 50%) if an installment agreement is in effect for that month. 1040ez form 2013 pdf You must have filed your return by the due date (including extensions) to qualify for this reduced penalty. 1040ez form 2013 pdf   If a notice of intent to levy is issued, the rate will increase to 1% at the start of the first month beginning at least 10 days after the day that the notice is issued. 1040ez form 2013 pdf If a notice and demand for immediate payment is issued, the rate will increase to 1% at the start of the first month beginning after the day that the notice and demand is issued. 1040ez form 2013 pdf   This penalty cannot be more than 25% of your unpaid tax. 1040ez form 2013 pdf You will not have to pay the penalty if you can show that you had a good reason for not paying your tax on time. 1040ez form 2013 pdf Combined penalties. 1040ez form 2013 pdf   If both the failure-to-file penalty and the failure-to-pay penalty (discussed earlier) apply in any month, the 5% (or 15%) failure-to-file penalty is reduced by the failure-to-pay penalty. 1040ez form 2013 pdf However, if you file your return more than 60 days after the due date or extended due date, the minimum penalty is the smaller of $135 or 100% of the unpaid tax. 1040ez form 2013 pdf Accuracy-related penalty. 1040ez form 2013 pdf   You may have to pay an accuracy-related penalty if you underpay your tax because: You show negligence or disregard of rules or regulations, You substantially understate your income tax, You claim tax benefits for a transaction that lacks economic substance, or You fail to disclose a foreign financial asset. 1040ez form 2013 pdf The penalty is equal to 20% of the underpayment. 1040ez form 2013 pdf The penalty is 40% of any portion of the underpayment that is attributable to an undisclosed noneconomic substance transaction or an undisclosed foreign financial asset transaction. 1040ez form 2013 pdf The penalty will not be figured on any part of an underpayment on which the fraud penalty (discussed later) is charged. 1040ez form 2013 pdf Negligence or disregard. 1040ez form 2013 pdf   The term “negligence” includes a failure to make a reasonable attempt to comply with the tax law or to exercise ordinary and reasonable care in preparing a return. 1040ez form 2013 pdf Negligence also includes failure to keep adequate books and records. 1040ez form 2013 pdf You will not have to pay a negligence penalty if you have a reasonable basis for a position you took. 1040ez form 2013 pdf   The term “disregard” includes any careless, reckless, or intentional disregard. 1040ez form 2013 pdf Adequate disclosure. 1040ez form 2013 pdf   You can avoid the penalty for disregard of rules or regulations if you adequately disclose on your return a position that has at least a reasonable basis. 1040ez form 2013 pdf See Disclosure statement , later. 1040ez form 2013 pdf   This exception will not apply to an item that is attributable to a tax shelter. 1040ez form 2013 pdf In addition, it will not apply if you fail to keep adequate books and records, or substantiate items properly. 1040ez form 2013 pdf Substantial understatement of income tax. 1040ez form 2013 pdf   You understate your tax if the tax shown on your return is less than the correct tax. 1040ez form 2013 pdf The understatement is substantial if it is more than the larger of 10% of the correct tax or $5,000. 1040ez form 2013 pdf However, the amount of the understatement is reduced to the extent the understatement is due to: Substantial authority, or Adequate disclosure and a reasonable basis. 1040ez form 2013 pdf   If an item on your return is attributable to a tax shelter, there is no reduction for an adequate disclosure. 1040ez form 2013 pdf However, there is a reduction for a position with substantial authority, but only if you reasonably believed that your tax treatment was more likely than not the proper treatment. 1040ez form 2013 pdf Substantial authority. 1040ez form 2013 pdf   Whether there is or was substantial authority for the tax treatment of an item depends on the facts and circumstances. 1040ez form 2013 pdf Consideration will be given to court opinions, Treasury regulations, revenue rulings, revenue procedures, and notices and announcements issued by the IRS and published in the Internal Revenue Bulletin that involve the same or similar circumstances as yours. 1040ez form 2013 pdf Disclosure statement. 1040ez form 2013 pdf   To adequately disclose the relevant facts about your tax treatment of an item, use Form 8275, Disclosure Statement. 1040ez form 2013 pdf You must also have a reasonable basis for treating the item the way you did. 1040ez form 2013 pdf   In cases of substantial understatement only, items that meet the requirements of Revenue Procedure 2012-51, 2012-51 IRB 719 (or later update) are considered adequately disclosed on your return without filing Form 8275. 1040ez form 2013 pdf   Use Form 8275-R, Regulation Disclosure Statement, to disclose items or positions contrary to regulations. 1040ez form 2013 pdf Transaction lacking economic substance. 1040ez form 2013 pdf   For more information on economic substance, see section 7701(o). 1040ez form 2013 pdf Foreign financial asset. 1040ez form 2013 pdf   For more information on undisclosed foreign financial assets, see section 6662(j) or the Instructions for Form 8938. 1040ez form 2013 pdf Reasonable cause. 1040ez form 2013 pdf   You will not have to pay a penalty if you show a good reason (reasonable cause) for the way you treated an item. 1040ez form 2013 pdf You must also show that you acted in good faith. 1040ez form 2013 pdf This does not apply to a transaction that lacks economic substance. 1040ez form 2013 pdf Filing erroneous claim for refund or credit. 1040ez form 2013 pdf   You may have to pay a penalty if you file an erroneous claim for refund or credit. 1040ez form 2013 pdf The penalty is equal to 20% of the disallowed amount of the claim, unless you can show a reasonable basis for the way you treated an item. 1040ez form 2013 pdf However, any disallowed amount due to a transaction that lacks economic substance will not be treated as having a reasonable basis. 1040ez form 2013 pdf The penalty will not be figured on any part of the disallowed amount of the claim that relates to the earned income credit or on which the accuracy-related or fraud penalties are charged. 1040ez form 2013 pdf Frivolous tax submission. 1040ez form 2013 pdf   You may have to pay a penalty of $5,000 if you file a frivolous tax return or other frivolous submissions. 1040ez form 2013 pdf A frivolous tax return is one that does not include enough information to figure the correct tax or that contains information clearly showing that the tax you reported is substantially incorrect. 1040ez form 2013 pdf For more information on frivolous returns, frivolous submissions, and a list of positions that are identified as frivolous, see Notice 2010-33, 2010-17 IRB 609 available at www. 1040ez form 2013 pdf irs. 1040ez form 2013 pdf gov/irb/2010-17_irb/ar13. 1040ez form 2013 pdf html. 1040ez form 2013 pdf   You will have to pay the penalty if you filed this kind of return or submission based on a frivolous position or a desire to delay or interfere with the administration of federal tax laws. 1040ez form 2013 pdf This includes altering or striking out the preprinted language above the space provided for your signature. 1040ez form 2013 pdf   This penalty is added to any other penalty provided by law. 1040ez form 2013 pdf Fraud. 1040ez form 2013 pdf   If there is any underpayment of tax on your return due to fraud, a penalty of 75% of the underpayment due to fraud will be added to your tax. 1040ez form 2013 pdf Failure to supply taxpayer identification number. 1040ez form 2013 pdf   If you do not include your social security number (SSN) or individual taxpayer identification number (ITIN) or the SSN or ITIN of another person where required on a return, statement, or other document, you will be subject to a penalty of $50 for each failure. 1040ez form 2013 pdf You will also be subject to a penalty of $50 if you do not give your SSN or ITIN to another person when it is required on a return, statement, or other document. 1040ez form 2013 pdf   For example, if you have a bank account that earns interest, you must give your SSN or ITIN to the bank. 1040ez form 2013 pdf The number must be shown on the Form 1099-INT or other statement the bank sends you. 1040ez form 2013 pdf If you do not give the bank your SSN or ITIN, you will be subject to the $50 penalty. 1040ez form 2013 pdf (You also may be subject to “backup” withholding of income tax. 1040ez form 2013 pdf )   You will not have to pay the penalty if you are able to show that the failure was due to reasonable cause and not willful neglect. 1040ez form 2013 pdf Criminal Penalties You may be subject to criminal prosecution (brought to trial) for actions such as: Tax evasion, Willful failure to file a return, supply information, or pay any tax due, Fraud and false statements, or Preparing and filing a fraudulent return. 1040ez form 2013 pdf Prev  Up  Next   Home   More Online Publications