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1040x Instructions 2012

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1040x Instructions 2012

1040x instructions 2012 It is critical that business owners correctly determine whether the individuals providing services are employees or independent contractors. 1040x instructions 2012 Generally, you must withhold income taxes, withhold and pay Social Security and Medicare taxes, and pay unemployment tax on wages paid to an employee. You do not generally have to withhold or pay any taxes on payments to independent contractors. 1040x instructions 2012 Select the Scenario that Applies to You: 1040x instructions 2012 I am an independent contractor or in business for myself 1040x instructions 2012 If you are a business owner or contractor who provides services to other businesses, then you are generally considered self-employed. For more information on your tax obligations if you are self-employed (an independent contractor), see our Self-Employed Tax Center. 1040x instructions 2012 I hire or contract with individuals to provide services to my business 1040x instructions 2012 If you are a business owner hiring or contracting with other individuals to provide services, you must determine whether the individuals providing services are employees or independent contractors. Follow the rest of this page to find out more about this topic and what your responsibilities are. 1040x instructions 2012 Determining Whether the Individuals Providing Services are Employees or Independent Contractors 1040x instructions 2012 Before you can determine how to treat payments you make for services, you must first know the business relationship that exists between you and the person performing the services. The person performing the services may be - 1040x instructions 2012 An independent contractor 1040x instructions 2012 An employee (common-law employee) 1040x instructions 2012 A statutory employee 1040x instructions 2012 A statutory nonemployee 1040x instructions 2012 In determining whether the person providing service is an employee or an independent contractor, all information that provides evidence of the degree of control and independence must be considered. 1040x instructions 2012 Common Law Rules 1040x instructions 2012 Facts that provide evidence of the degree of control and independence fall into three categories: 1040x instructions 2012 Behavioral: Does the company control or have the right to control what the worker does and how the worker does his or her job? 1040x instructions 2012 Financial: Are the business aspects of the worker’s job controlled by the payer? (these include things like how worker is paid, whether expenses are reimbursed, who provides tools/supplies, etc.) 1040x instructions 2012 Type of Relationship: Are there written contracts or employee type benefits (i.e. pension plan, insurance, vacation pay, etc.)? Will the relationship continue and is the work performed a key aspect of the business? 1040x instructions 2012 Businesses must weigh all these factors when determining whether a worker is an employee or independent contractor. Some factors may indicate that the worker is an employee, while other factors indicate that the worker is an independent contractor. There is no “magic” or set number of factors that “makes” the worker an employee or an independent contractor, and no one factor stands alone in making this determination. Also, factors which are relevant in one situation may not be relevant in another. 1040x instructions 2012 The keys are to look at the entire relationship, consider the degree or extent of the right to direct and control, and finally, to document each of the factors used in coming up with the determination. 1040x instructions 2012 Form SS-8 1040x instructions 2012 If, after reviewing the three categories of evidence, it is still unclear whether a worker is an employee or an independent contractor, Form SS-8, Determination of Worker Status for Purposes of Federal Employment Taxes and Income Tax Withholding (PDF) can be filed with the IRS. The form may be filed by either the business or the worker. The IRS will review the facts and circumstances and officially determine the worker’s status. 1040x instructions 2012 Be aware that it can take at least six months to get a determination, but a business that continually hires the same types of workers to perform particular services may want to consider filing the Form SS-8 (PDF).
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The 1040x Instructions 2012

1040x instructions 2012 Index A Acknowledgment of contributions, Acknowledgment of Charitable Contributions of $250 or More Adverse determination, Adverse determination. 1040x instructions 2012 Affordable Care Act Hospitals, What's New, New Requirements for section 501(c)(3) Hospitals Under the Affordable Care Act. 1040x instructions 2012 Aged, home for, Home for the aged. 1040x instructions 2012 Agricultural organization, Agricultural and Horticultural Organizations Airport, Other organizations. 1040x instructions 2012 Alumni association, Alumni association. 1040x instructions 2012 Amateur athletic organizations, Amateur Athletic Organizations Animals, prevention of cruelty to, Prevention of Cruelty to Children or Animals Appeal procedures, Appeal Procedures Application procedures, Application Procedures, Required Inclusions Bylaws, Bylaws. 1040x instructions 2012 Conformed copy, Conformed copy. 1040x instructions 2012 Description of activities, Description of activities. 1040x instructions 2012 Employer identification number, Required Inclusions Financial data, Financial data. 1040x instructions 2012 Organizing documents, Organizing documents. 1040x instructions 2012 Aquatic resources, Agricultural and Horticultural Organizations Articles of organization, Articles of Organization Assistance (see Tax help) Athletic organization, Athletic organization. 1040x instructions 2012 , Amateur Athletic Organizations Attorney's fees, Acceptance of attorneys' fees. 1040x instructions 2012 Attribution, special rules, Special rules of attribution. 1040x instructions 2012 B Black lung benefit trust, 501(c)(21) - Black Lung Benefit Trusts Board of trade, Board of trade. 1040x instructions 2012 Bureau defined, Bureau defined. 1040x instructions 2012 Burial benefit insurance, Burial and funeral benefit insurance organization. 1040x instructions 2012 Business income, unrelated, Unrelated Business Income Tax Return Business league, 501(c)(6) - Business Leagues, etc. 1040x instructions 2012 C Cemetery company, 501(c)(13) - Cemetery Companies Chamber of commerce, Chamber of commerce. 1040x instructions 2012 Change in legal structure, Organizational Changes and Exempt Status Charitable contributions, Acknowledgment of Charitable Contributions of $250 or More, Contributions to 501(c)(3) Organizations Charitable organization, Section 501(c)(3) Organizations, Charitable Organizations Charitable risk pools, Charitable Risk Pools Child care organization, Child care organizations. 1040x instructions 2012 Children, prevention of cruelty to, Prevention of Cruelty to Children or Animals Church, Churches. 1040x instructions 2012 Integrated auxiliaries, Integrated auxiliaries. 1040x instructions 2012 Civic leagues, 501(c)(4) - Civic Leagues and Social Welfare Organizations Clinic, Clinic. 1040x instructions 2012 CO-OP Health Insurance Issuers, 501(c)(29) - CO-OP Health Insurance Issuers College bookstore, restaurant, College book stores, cafeterias, restaurants, etc. 1040x instructions 2012 Comments, Comments and suggestions. 1040x instructions 2012 Community association, Other organizations. 1040x instructions 2012 Community nursing bureau, Community nursing bureau. 1040x instructions 2012 Community trust, Community Trusts Contributions, charitable, Acknowledgment of Charitable Contributions of $250 or More, Contributions to 501(c)(3) Organizations Court appeals, Appeal to Courts Credit union, 501(c)(14) - Credit Unions and Other Mutual Financial Organizations D Determination letter, Rulings and Determination Letters Disclosures, required, Disclosure of Quid Pro Quo Contributions Dues used for lobbying, Dues Used for Lobbying or Political Activities Nondeductible contributions, Solicitation of Nondeductible Contributions Quid pro quo contributions, Disclosure of Quid Pro Quo Contributions Services available from government, Penalties. 1040x instructions 2012 Dispositions of donated property, Donee Information Return Disqualified persons, Disqualified persons. 1040x instructions 2012 Domestic fraternal society, Domestic Fraternal Societies (501(c)(10)) Donor advised funds Excess benefit transaction, Donor advised fund transactions occurring after August 17, 2006. 1040x instructions 2012 Dues used for political or legislative activities, Dues Used for Lobbying or Political Activities, Deduction not allowed for dues used for political or legislative activities. 1040x instructions 2012 E Educational organizations, Educational Organizations, Educational organizations. 1040x instructions 2012 Employees' association, 501(c)(4), 501(c)(9), and 501(c)(17) - Employees' Associations Employment taxes, Employment Tax Returns Endowment fund, Endowment funds. 1040x instructions 2012 Estimated tax, Estimated tax. 1040x instructions 2012 Excess benefit transaction, Excess Benefit Transaction, Supporting organization transactions occurring after July 25, 2006. 1040x instructions 2012 Disqualified person, Tax on Disqualified Persons, Disqualified Person Controlled entity, 35%, 35% controlled entity. 1040x instructions 2012 Family members, Family members. 1040x instructions 2012 Substantial influence, Persons not considered to have substantial influence. 1040x instructions 2012 Disregarded benefits, Disregarded benefits. 1040x instructions 2012 Donor advised funds, Donor advised fund transactions occurring after August 17, 2006. 1040x instructions 2012 , Exception. 1040x instructions 2012 Excise tax, Excise tax on excess benefit transactions. 1040x instructions 2012 Initial contracts, Special Exception for Initial Contracts Reasonable compensation, Reasonable Compensation. 1040x instructions 2012 Rebuttable presumption, Rebuttable presumption that a transaction is not an excess benefit transaction. 1040x instructions 2012 Excise tax Black lung benefit trust, Excise taxes. 1040x instructions 2012 Lobbying expenditures, Tax on excess expenditures to influence legislation. 1040x instructions 2012 , Tax on disqualifying lobbying expenditures. 1040x instructions 2012 Political expenditures, Excise taxes on political expenditures. 1040x instructions 2012 Private foundations, Excise taxes on private foundations. 1040x instructions 2012 , Excise Taxes on Private Foundations Exempt function, Political Organization Income Tax Return Exempt purposes, Section 501(c)(3) Organizations Exemption for terrorist organization, Non-exemption for terrorist organizations. 1040x instructions 2012 Extensions of time, Extensions of time for filing. 1040x instructions 2012 F Facts and circumstances test, Facts and circumstances test. 1040x instructions 2012 Fair market value, estimate of, Good faith estimate of fair market value (FMV). 1040x instructions 2012 Filing requirements, Annual Information Returns Annual information returns, Annual Information Returns Donee information return, Donee Information Return Due date, Political Organization Income Tax Return Employment tax, Employment Tax Returns Excise tax, Excise taxes on private foundations. 1040x instructions 2012 , Excise Taxes on Private Foundations Political organization, Political Organization Income Tax Return Private foundations, Form 990-PF Unrelated business income, Unrelated Business Income Tax Return Form 990-N, Annual Electronic Filing Requirement for Small Tax-Exempt Organizations Forms, Forms Required 1023, Forms Required, Administrative Remedies, 270-day period. 1040x instructions 2012 , Information required for subordinate organizations. 1040x instructions 2012 , Annual Information Return, Form 1023. 1040x instructions 2012 , Organizations Not Required To File Form 1023, Private Schools, When to file application. 1040x instructions 2012 , Lobbying Expenditures, Volunteer fire companies. 1040x instructions 2012 1024, Forms Required, Application made under wrong paragraph of section 501(c). 1040x instructions 2012 , Annual Information Return, 501(c)(4) - Civic Leagues and Social Welfare Organizations, 501(c)(6) - Business Leagues, etc. 1040x instructions 2012 , 501(c)(7) - Social and Recreation Clubs, 501(c)(8) and 501(c)(10) - Fraternal Beneficiary Societies and Domestic Fraternal Societies, Fraternal Beneficiary Societies (501(c)(8)), Domestic Fraternal Societies (501(c)(10)), Local Employees' Associations (501(c)(4)), Voluntary Employees' Beneficiary Associations (501(c)(9)), Supplemental Unemployment Benefit Trusts (501(c)(17)), 501(c)(13) - Cemetery Companies, 501(c)(19) - Veterans' Organizations, 501(c)(20) - Group Legal Services Plan Organizations, 501(c)(2) - Title-Holding Corporations for Single Parent Corporations, 501(c)(25) - Title-Holding Corporations or Trusts for Multiple Parent Corporations 1040, Effect on employees. 1040x instructions 2012 1065, Annual Information Returns 1120–POL, Political Organization Income Tax Return 1128, Central organizations. 1040x instructions 2012 2848, Power of attorney. 1040x instructions 2012 , Representation. 1040x instructions 2012 4720, Tax on excess expenditures to influence legislation. 1040x instructions 2012 5578, Certification. 1040x instructions 2012 5768, Making the election. 1040x instructions 2012 6069, Tax treatment of donations. 1040x instructions 2012 8274, FICA tax exemption election. 1040x instructions 2012 8282, Dispositions of donated property. 1040x instructions 2012 8283, Form 8283. 1040x instructions 2012 8300, Report of Cash Received 8718, Forms Required, Power of attorney. 1040x instructions 2012 8821, Representation. 1040x instructions 2012 8871, Reporting Requirements for a Political Organization, Annual Information Return 8872, Reporting Requirements for a Political Organization, Annual Information Return 990, Keeping the Group Exemption Letter in Force, Forms 990 and 990-EZ, Annual Information Return, Making the election. 1040x instructions 2012 990-BL, Annual Information Returns, 990-EZ, Forms 990 and 990-EZ, Form 990-EZ. 1040x instructions 2012 990-PF, Form 990-PF, Excise taxes on private foundations. 1040x instructions 2012 , Excise Taxes on Private Foundations 990-T, Unrelated Business Income Tax Return SS-4, Required Inclusions, Employer identification number. 1040x instructions 2012 W–2, Revoking the election. 1040x instructions 2012 Fraternal beneficiary society, Fraternal Beneficiary Societies (501(c)(8)) Fraternal societies, Organizations subject to requirements. 1040x instructions 2012 , 501(c)(8) and 501(c)(10) - Fraternal Beneficiary Societies and Domestic Fraternal Societies Free tax services, Free help with your tax return. 1040x instructions 2012 Funeral benefit insurance, Burial and funeral benefit insurance organization. 1040x instructions 2012 G Gifts and contributions, public charity, Gifts, contributions, and grants distinguished from gross receipts. 1040x instructions 2012 Good faith determinations, What's New, New organization. 1040x instructions 2012 Governmental unit, Governmental units. 1040x instructions 2012 Grant Distinguished from gross receipts, Grants. 1040x instructions 2012 Exclusion for unusual grant, Unusual grants. 1040x instructions 2012 , Unusual grants. 1040x instructions 2012 From public charity, Grants from public charities. 1040x instructions 2012 , Grants from public charities. 1040x instructions 2012 Grantor and contributor, reliance on ruling, Reliance by grantors and contributors. 1040x instructions 2012 Gross receipts from nonmembership sources, Gross receipts from nonmembership sources. 1040x instructions 2012 Group exemption letter, Group Exemption Letter H Health coverage organization, 501(c)(26) - State-Sponsored High-Risk Health Coverage Organizations Help (see Tax help) High-risk health coverage organization, 501(c)(26) - State-Sponsored High-Risk Health Coverage Organizations Home for the aged, Home for the aged. 1040x instructions 2012 Homeowners' association, Homeowners' associations. 1040x instructions 2012 Horticultural organization, Agricultural and Horticultural Organizations Hospital, Hospital. 1040x instructions 2012 , Hospitals and medical research organizations. 1040x instructions 2012 I Inactive organization, Organizational Changes and Exempt Status Industrial development, Other organizations. 1040x instructions 2012 Instrumentalities, Instrumentalities. 1040x instructions 2012 Insurance, organizations providing, Organizations Providing Insurance L Labor organization, Organizations subject to requirements. 1040x instructions 2012 , Labor Organizations Law, public interest, Public-interest law firms. 1040x instructions 2012 Legislative activity, Lobbying Expenditures, Legislative activity. 1040x instructions 2012 Listed transaction, Prohibited tax shelter transaction. 1040x instructions 2012 Literary organizations, Literary Organizations Loans, organizations providing, Organization providing loans. 1040x instructions 2012 Lobbying expenditures, Lobbying Expenditures Local benevolent life insurance associations, Local Life Insurance Associations Local employees' association, Local Employees' Associations (501(c)(4)) Lodge system, Lodge system. 1040x instructions 2012 M Medical research organization, Medical research organization. 1040x instructions 2012 Medicare and Medicaid payments, Medicare and Medicaid payments. 1040x instructions 2012 Membership fee, Membership fees. 1040x instructions 2012 , Membership fees distinguished from gross receipts. 1040x instructions 2012 Modification of exemption, Revocation or Modification of Exemption Mutual financial organization, 501(c)(14) - Credit Unions and Other Mutual Financial Organizations Mutual or cooperative association, Mutual or Cooperative Associations N Nursing bureau, Community nursing bureau. 1040x instructions 2012 O One-third support test, One-third support test. 1040x instructions 2012 Organization assets, Dedication and Distribution of Assets Dedication, Dedication. 1040x instructions 2012 Distribution, Distribution. 1040x instructions 2012 Organizational changes, Organizational Changes and Exempt Status P Penalties, Penalties for failure to file. 1040x instructions 2012 Failure to allow public inspection, Penalties Failure to disclose, Penalty for failure to disclose. 1040x instructions 2012 , Penalties. 1040x instructions 2012 , Penalty. 1040x instructions 2012 Failure to file, Penalties for failure to file. 1040x instructions 2012 Perpetual care organization, Perpetual care organization. 1040x instructions 2012 Political activity, Dues Used for Lobbying or Political Activities, Political activity. 1040x instructions 2012 , Political activity. 1040x instructions 2012 Political organization Income tax return, Political Organization Income Tax Return Taxable income, Political Organization Income Tax Return Power of attorney, Power of attorney. 1040x instructions 2012 Preferred stock, Common and preferred stock. 1040x instructions 2012 Prevention of cruelty to children or animals, Prevention of Cruelty to Children or Animals Private delivery service, Private delivery service. 1040x instructions 2012 Private foundations, Private Foundations Private operating foundation, Private Operating Foundations Private school, Private Schools, Racially Nondiscriminatory Policy Prohibited tax shelter transactions Entity managers, Entity manager. 1040x instructions 2012 Entity managers excise tax, Manager Level Tax Listed transaction, Prohibited tax shelter transaction. 1040x instructions 2012 Prohibited reportable transactions, Prohibited tax shelter transaction. 1040x instructions 2012 Subsequently listed transaction, Subsequently listed transaction. 1040x instructions 2012 Tax-exempt entities, Tax-exempt entities. 1040x instructions 2012 Public charity Gifts and contributions, Gifts, contributions, and grants distinguished from gross receipts. 1040x instructions 2012 Grant from, Grants from public charities. 1040x instructions 2012 Section 509(a)(1), Section 509(a)(1) Organizations Section 509(a)(2), Section 509(a)(2) Organizations Section 509(a)(3), Section 509(a)(3) Organizations Section 509(a)(4), Section 509(a)(4) Organizations Support test, One-third support test. 1040x instructions 2012 , One-third support test. 1040x instructions 2012 Public inspection Annual return, Annual Information Return Exemption applications, Public Inspection of Exemption Applications, Annual Returns, and Political Organization Reporting Forms Forms 8871 and 8872, Public Inspection of Exemption Applications, Annual Returns, and Political Organization Reporting Forms Public-interest law firm, Public-interest law firms. 1040x instructions 2012 Publications (see Tax help) Publicly supported organization, Publicly supported organizations. 1040x instructions 2012 , Qualifying as Publicly Supported Attraction of public support, Attraction of public support requirement. 1040x instructions 2012 Ten-percent-of-support, Ten-percent-of-support requirement. 1040x instructions 2012 R Racial composition, How to determine racial composition. 1040x instructions 2012 Racially nondiscriminatory policy, Racially Nondiscriminatory Policy Real estate board, Real estate board. 1040x instructions 2012 Recognition of exemption, application, Application for Recognition of Exemption Religious organizations, Religious Organizations Requests other than applications, Miscellaneous Procedures Responsiveness test, Responsiveness test. 1040x instructions 2012 Revocation of exemption, Revocation or Modification of Exemption Ruling letter, Rulings and Determination Letters S Scholarship Private school, Scholarship and loan programs. 1040x instructions 2012 Scholarships, Scholarships. 1040x instructions 2012 School, private, Private Schools Scientific organizations, Scientific Organizations Section 501(c)(3) organizations Amateur athletic, Amateur Athletic Organizations Literary, Literary Organizations Prevention of cruelty, Prevention of Cruelty to Children or Animals Private foundations, Private Foundations and Public Charities Public charities, Public Charities Qualifications, Section 501(c)(3) Organizations Religious, Religious Organizations Scientific, Scientific Organizations Section 501(c)(3) Organizations Charitable, Charitable Organizations Educational, Educational Organizations and Private Schools Single entity, Single entity. 1040x instructions 2012 Social clubs, Organizations subject to requirements. 1040x instructions 2012 , 501(c)(7) - Social and Recreation Clubs Social welfare organization, Organizations subject to requirements. 1040x instructions 2012 , 501(c)(4) - Civic Leagues and Social Welfare Organizations Specified organizations, Specified organizations. 1040x instructions 2012 Sports organization, amateur, Qualified amateur sports organization. 1040x instructions 2012 State-sponsored, 501(c)(26) - State-Sponsored High-Risk Health Coverage Organizations High-risk health coverage organization, 501(c)(26) - State-Sponsored High-Risk Health Coverage Organizations Workers' compensation reinsurance organization, 501(c)(27) - Qualified State-Sponsored Workers' Compensation Organizations Stock or commodity exchange, Stock or commodity exchange. 1040x instructions 2012 Suggestions, Comments and suggestions. 1040x instructions 2012 Supplemental unemployment benefit trust, Supplemental Unemployment Benefit Trusts (501(c)(17)) Support, Support. 1040x instructions 2012 , Support from a governmental unit. 1040x instructions 2012 , Support from the general public. 1040x instructions 2012 Support test, One-third support test. 1040x instructions 2012 Facts and circumstances, Facts and circumstances test. 1040x instructions 2012 One-third, One-third support test. 1040x instructions 2012 Public charity, One-third support test. 1040x instructions 2012 Supporting organization, Supporting organization transactions occurring after July 25, 2006. 1040x instructions 2012 T Tax help, Technical advice, Appeals Office Consideration Testing for public safety, Section 509(a)(4) Organizations Title-holding corporation, 501(c)(2) - Title-Holding Corporations for Single Parent Corporations U Unemployment benefit trust, Supplemental Unemployment Benefit Trusts (501(c)(17)) Unrelated business income, Unrelated Business Income Tax Return Unusual grants, Unusual grants. 1040x instructions 2012 , Unusual grants. 1040x instructions 2012 User fee, Power of attorney. 1040x instructions 2012 , User fee. 1040x instructions 2012 V Veterans' organization, 501(c)(19) - Veterans' Organizations Voluntary employees' beneficiary association, Voluntary Employees' Beneficiary Associations (501(c)(9)) Volunteer fire company, Volunteer fire companies. 1040x instructions 2012 W War veterans' organization, 501(c)(19) - Veterans' Organizations Withdrawal of application, Withdrawal of application. 1040x instructions 2012 Withholding information from public, Requests for withholding of information from the public. 1040x instructions 2012 Work Opportunity Tax Credit, Expanded Work Opportunity Tax Credit Available for Hiring Qualified Veterans. 1040x instructions 2012 Workers' compensation reinsurance organization, 501(c)(27) - 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