File your Taxes for Free!
  • Get your maximum refund*
  • 100% accurate calculations guaranteed*

TurboTax Federal Free Edition - File Taxes Online

Don't let filing your taxes get you down! We'll help make it as easy as possible. With e-file and direct deposit, there's no faster way to get your refund!

Approved TurboTax Affiliate Site. TurboTax and TurboTax Online, among others, are registered trademarks and/or service marks of Intuit Inc. in the United States and other countries. Other parties' trademarks or service marks are the property of the respective owners.


© 2012 - 2018 All rights reserved.

This is an Approved TurboTax Affiliate site. TurboTax and TurboTax Online, among other are registered trademarks and/or service marks of Intuit, Inc. in the United States and other countries. Other parties' trademarks or service marks are the property of the respective owners.
When discussing "Free e-file", note that state e-file is an additional fee. E-file fees do not apply to New York state returns. Prices are subject to change without notice. E-file and get your refund faster
*If you pay an IRS or state penalty or interest because of a TurboTax calculations error, we'll pay you the penalty and interest.
*Maximum Refund Guarantee - or Your Money Back: If you get a larger refund or smaller tax due from another tax preparation method, we'll refund the applicable TurboTax federal and/or state purchase price paid. TurboTax Federal Free Edition customers are entitled to payment of $14.99 and a refund of your state purchase price paid. Claims must be submitted within sixty (60) days of your TurboTax filing date and no later than 6/15/14. E-file, Audit Defense, Professional Review, Refund Transfer and technical support fees are excluded. This guarantee cannot be combined with the TurboTax Satisfaction (Easy) Guarantee. *We're so confident your return will be done right, we guarantee it. Accurate calculations guaranteed. If you pay an IRS or state penalty or interest because of a TurboTax calculations error, we'll pay you the penalty and interest.
https://turbotax.intuit.com/corp/guarantees.jsp

2011 Irs Form 8863

Irs Gov Form 1040ezHelp With 1040xHow To Amend 2012 Taxes2012 E FileTax Amendment Form 2013Free H&r BlockMilitary Tax DeductionHow Can I File My State Taxes For Free2011 Tax ReturnsPrevious Years Tax FormsIrs 1040 FormFree Tax ReturnState Tax Forms 2012Www Freefilefillableforms ComH&r Block TaxcutWww Hrblock Com2012 Tax Forms 1040 EzFile 2010 Taxes For FreeIrs Form 990 Ez 2010E File 2012 ReturnsIrs Form 1040ez Instructions1040 2012 Tax FormState Tax Return Free E-fileDid Not File 2011 TaxesWhat Can Military Claim On Taxes1040ez Tax Form 20101040 ACan Still E File 2011 TaxesIrs Mailing Address 1040ezIrs 1040ez FormsFreefile Irs GovTurbotax 2010 FreeFederal Tax Forms 1040ezState Income Tax FilingIrs E File ExtensionWww Irs GovIrs Gov FormsFree E File 2010Irs.gov 1040x2011 Free Tax Filing

2011 Irs Form 8863

2011 irs form 8863 Internal Revenue Bulletin:  2009-36  September 8, 2009  Rev. 2011 irs form 8863 Proc. 2011 irs form 8863 2009-37 Table of Contents SECTION 1. 2011 irs form 8863 PURPOSE SECTION 2. 2011 irs form 8863 BACKGROUND SECTION 3. 2011 irs form 8863 SCOPE SECTION 4. 2011 irs form 8863 ELECTION PROCEDURES SECTION 5. 2011 irs form 8863 REQUIRED INFORMATION STATEMENT SECTION 6. 2011 irs form 8863 EFFECTIVE DATE SECTION 7. 2011 irs form 8863 TRANSITION RULE SECTION 8. 2011 irs form 8863 PAPERWORK REDUCTION ACT DRAFTING INFORMATION SECTION 1. 2011 irs form 8863 PURPOSE . 2011 irs form 8863 01 This revenue procedure provides the exclusive procedures for taxpayers to make an election to defer recognizing discharge of indebtedness income (“COD income”) under § 108(i) of the Internal Revenue Code. 2011 irs form 8863 . 2011 irs form 8863 02 This revenue procedure also requires taxpayers making the § 108(i) election to provide additional information on returns beginning with the taxable year following the taxable year for which the taxpayer makes the election. 2011 irs form 8863 This revenue procedure describes the time and manner of providing this additional information. 2011 irs form 8863 . 2011 irs form 8863 03 The Internal Revenue Service and Treasury Department intend to issue additional guidance under § 108(i) that may include regulations addressing matters in this revenue procedure. 2011 irs form 8863 Taxpayers should be aware that these regulations may be retroactive. 2011 irs form 8863 See § 7805(b)(2). 2011 irs form 8863 This revenue procedure may be modified to provide procedures consistent with additional guidance. 2011 irs form 8863 SECTION 2. 2011 irs form 8863 BACKGROUND . 2011 irs form 8863 01 Section 108(i), Generally. 2011 irs form 8863 Section 108(i) was added to the Code by § 1231 of the American Recovery and Reinvestment Tax Act of 2009, Pub. 2011 irs form 8863 L. 2011 irs form 8863 No. 2011 irs form 8863 111-5, 123 Stat. 2011 irs form 8863 338. 2011 irs form 8863 In general, § 108(i) provides that, at the election of a taxpayer, COD income realized in connection with a reacquisition after December 31, 2008, and before January 1, 2011, of an applicable debt instrument is includible in gross income ratably over a 5-taxable-year inclusion period, beginning with the taxpayer’s fourth or fifth taxable year following the taxable year of the reacquisition. 2011 irs form 8863 Generally, if a taxpayer makes a § 108(i) election and reacquires (or is treated as reacquiring) the applicable debt instrument generating the COD income for a new debt instrument with original issue discount (“OID”), then interest deductions for this OID also are deferred, as provided in § 108(i)(2). 2011 irs form 8863 The OID deferral rule, however, does not apply if the amount of OID is less than a de minimis amount, as determined under § 1273(a)(3) and § 1. 2011 irs form 8863 1273-1(d) of the Income Tax Regulations. 2011 irs form 8863 The OID deferral rule in § 108(i)(2) applies at the entity level for a pass-through entity. 2011 irs form 8863 For example, a partnership (and therefore its partners) may not deduct currently the OID described in § 108(i)(2)(A)(i). 2011 irs form 8863 A taxpayer must take into account any item of income or deduction deferred under § 108(i), and not previously taken into account, in the taxable year in which certain events occur (such as the liquidation of the taxpayer and upon other events specified in administrative guidance). 2011 irs form 8863 See § 108(i)(5)(D). 2011 irs form 8863 The rule regarding acceleration of deferred COD income and OID deductions also applies in the case of certain dispositions by persons holding ownership interests in pass-through entities. 2011 irs form 8863 Section 108(i)(5)(D)(ii). 2011 irs form 8863 For purposes of § 108(i), regulated investment companies (as defined in § 851(a)) and real estate investment trusts (as defined in § 856(a)) are not pass-through entities. 2011 irs form 8863 . 2011 irs form 8863 02 Applicable Debt Instrument. 2011 irs form 8863 Section 108(i)(3)(A) defines the term “applicable debt instrument” to mean any debt instrument issued by a C corporation or by any other person in connection with the conduct of a trade or business by that person. 2011 irs form 8863 The term “debt instrument” means any bond, debenture, note, certificate, or any other instrument or contractual arrangement constituting indebtedness within the meaning of § 1275(a)(1). 2011 irs form 8863 Section 108(i)(3)(B). 2011 irs form 8863 For purposes of § 108(i), in the case of an intercompany obligation (as defined in § 1. 2011 irs form 8863 1502-13(g)(2)(ii)), an applicable debt instrument includes only an instrument for which COD income is realized upon the instrument’s deemed satisfaction under § 1. 2011 irs form 8863 1502-13(g)(5). 2011 irs form 8863 . 2011 irs form 8863 03 Reacquisition. 2011 irs form 8863 Section 108(i)(4)(A) defines the term “reacquisition” to mean, with respect to any applicable debt instrument, any acquisition of the debt instrument by the debtor that issued (or is otherwise the obligor under) the debt instrument, or a person related to the debtor under § 108(e)(4). 2011 irs form 8863 The term “acquisition” includes an acquisition of the debt instrument for cash or other property, the exchange of the debt instrument for another debt instrument (including an exchange resulting from a modification of the debt instrument), the exchange of the debt instrument for corporate stock or a partnership interest, the contribution of the debt instrument to capital, and the complete forgiveness of the indebtedness by the holder of the debt instrument. 2011 irs form 8863 See § 108(i)(4)(B). 2011 irs form 8863 The term “acquisition” also includes an indirect acquisition within the meaning of § 1. 2011 irs form 8863 108-2(c) if a direct acquisition of the debt instrument would qualify for an election under § 108(i). 2011 irs form 8863 For example, if a corporation acquires debt of a partnership that the partnership issued in connection with its trade or business, and the partnership and corporation become related within six months of the corporation’s acquisition of the debt, the indirect acquisition is an acquisition for which an election under § 108(i) may be made. 2011 irs form 8863 . 2011 irs form 8863 04 General Requirements for the Section 108(i) Election. 2011 irs form 8863 Section 108(i)(5)(B) provides, in general, that a taxpayer makes the § 108(i) election by including a statement that clearly identifies the applicable debt instrument with the return of tax imposed for the taxable year in which the reacquisition of the instrument occurs. 2011 irs form 8863 (For purposes of this revenue procedure, a return of tax or income tax return includes an information return, and a taxpayer includes a person that files an information return. 2011 irs form 8863 ) The statement must include the amount of income to which § 108(i)(1) applies and other information the Service may prescribe. 2011 irs form 8863 Once made, a § 108(i) election is irrevocable and, except as provided in section 7 of this revenue procedure, may not be modified. 2011 irs form 8863 . 2011 irs form 8863 05 Section 108(i) Elections Made by Pass-through Entities. 2011 irs form 8863 In the case of COD income realized by a pass-through entity from the reacquisition of an applicable debt instrument, the pass-through entity makes the § 108(i) election. 2011 irs form 8863 Section 108(i)(5)(B)(iii). 2011 irs form 8863 . 2011 irs form 8863 06 Additional Information on Subsequent Years’ Returns. 2011 irs form 8863 Section 108(i)(7) authorizes the Service to issue guidance necessary or appropriate for applying § 108(i), including requiring reporting the election and other information on returns of tax for subsequent taxable years. 2011 irs form 8863 . 2011 irs form 8863 07 Exclusivity. 2011 irs form 8863 Section 108(i)(5)(C) provides that if a taxpayer elects to apply § 108(i) to an applicable debt instrument, § 108(a)(1)(A), (B), (C), and (D) do not apply to COD income deferred under § 108(i). 2011 irs form 8863 . 2011 irs form 8863 08 Allocation of Deferred COD Income on Partnership Indebtedness. 2011 irs form 8863 Section 4. 2011 irs form 8863 04(3) of this revenue procedure describes how a partnership may elect under § 108(i) to defer a portion of the COD income realized from the reacquisition of an applicable debt instrument. 2011 irs form 8863 If a partnership elects to defer all or any portion of COD income realized from the reacquisition of an applicable debt instrument, all of the COD income with respect to that debt instrument, without regard to § 108(i), is allocated to the partners in the partnership immediately before the reacquisition in the manner in which the income would be included in the distributive shares of these partners under § 704 and the regulations thereunder, including § 1. 2011 irs form 8863 704-1(b)(2)(iii). 2011 irs form 8863 Each partner’s share of this COD income is the partner’s COD income amount (“COD income amount”). 2011 irs form 8863 The partner’s COD income amount that is deferred under § 108(i) is the partner’s deferred amount (“deferred amount”). 2011 irs form 8863 The partner’s COD income amount that is not deferred and is included in the partner’s distributive share of partnership income for the taxable year of the partnership in which the reacquisition occurs is the partner’s included amount (“included amount”). 2011 irs form 8863 . 2011 irs form 8863 09 Partner’s Deferred § 752 Amount. 2011 irs form 8863 A decrease in a partner’s share of a partnership liability resulting from the reacquisition of an applicable debt instrument that is not treated as a current distribution of money to the partner under § 752 by reason of § 108(i)(6) is the partner’s deferred § 752 amount (“deferred § 752 amount”). 2011 irs form 8863 A partner’s deferred § 752 amount may not exceed the lesser of (i) the partner’s deferred amount or (ii) gain that the partner would recognize in the year of reacquisition under § 731 as a result of the reacquisition absent § 108(i)(6). 2011 irs form 8863 To determine the amount of gain the partner would recognize under clause (ii) of the preceding sentence, the amount of any deemed distribution of money under § 752(b) resulting from the decrease in the partner’s share of a reacquired applicable debt instrument that is treated as an advance or draw of money under § 1. 2011 irs form 8863 731-1(a)(1)(ii) is determined as if no COD income resulting from the reacquisition of the applicable debt instrument is deferred under § 108(i). 2011 irs form 8863 See Rev. 2011 irs form 8863 Rul. 2011 irs form 8863 92-97, 1992-2 C. 2011 irs form 8863 B. 2011 irs form 8863 124, and Rev. 2011 irs form 8863 Rul. 2011 irs form 8863 94-4, 1994-1 C. 2011 irs form 8863 B. 2011 irs form 8863 195. 2011 irs form 8863 A partner’s deferred § 752 amount is treated as a distribution of money to the partner under § 752 at the same time, and to the extent remaining in the same amount, as the partner recognizes the COD income deferred under § 108(i). 2011 irs form 8863 . 2011 irs form 8863 10 Allocation of Deferred COD Income on S Corporation Indebtedness. 2011 irs form 8863 For purposes of § 108(i), an S corporation’s COD income deferred under § 108(i) is shared pro rata only among those shareholders that are shareholders of the S corporation immediately before the reacquisition transaction. 2011 irs form 8863 . 2011 irs form 8863 11 Deferred COD Income, Earnings and Profits, and Alternative Minimum Taxable Income. 2011 irs form 8863 (1) In general. 2011 irs form 8863 The Service and Treasury Department intend to issue regulations regarding the computation of a corporation’s earnings and profits with respect to COD income and OID deductions that are deferred under § 108(i). 2011 irs form 8863 These regulations generally will provide that deferred COD income increases earnings and profits in the taxable year that it is realized and not in the taxable year or years that the deferred COD income is includible in gross income. 2011 irs form 8863 OID deductions deferred under § 108(i) generally will decrease earnings and profits in the taxable year or years in which the deduction would be allowed without regard to § 108(i). 2011 irs form 8863 COD income and OID deductions that are deferred increase or decrease adjusted current earnings under § 56(g)(4) in the taxable year or years that the income or deduction is includible or deductible in determining taxable income. 2011 irs form 8863 See § 1. 2011 irs form 8863 56(g)-1(c)(1). 2011 irs form 8863 (2) Exceptions for certain special status corporations. 2011 irs form 8863 The Service and Treasury Department intend to issue regulations providing that in the case of regulated investment companies and real estate investment trusts, COD income deferred under § 108(i) generally increases earnings and profits in the taxable year or years in which the deferred COD income is includible in gross income and not in the year that the deferred COD income is realized. 2011 irs form 8863 OID deductions deferred under § 108(i) generally decrease earnings and profits in the taxable year or years that the deferred OID deductions are deductible. 2011 irs form 8863 . 2011 irs form 8863 12 Extension of Time to Make Election. 2011 irs form 8863 Under § 301. 2011 irs form 8863 9100-1 of the Procedure and Administration Regulations, the Service may grant an extension of time to make a regulatory election. 2011 irs form 8863 An election is a regulatory election if the due date is prescribed by regulation or other published guidance of general applicability. 2011 irs form 8863 Section 301. 2011 irs form 8863 9100-2(a) provides an automatic 12-month extension from the due date for making certain regulatory elections. 2011 irs form 8863 SECTION 3. 2011 irs form 8863 SCOPE This revenue procedure applies to taxpayers that realize COD income from a reacquisition after December 31, 2008, and before January 1, 2011, of an applicable debt instrument, as provided in § 108(i). 2011 irs form 8863 SECTION 4. 2011 irs form 8863 ELECTION PROCEDURES . 2011 irs form 8863 01 In General. 2011 irs form 8863 (1) A taxpayer within the scope of this revenue procedure makes the § 108(i) election by— (a) Attaching a statement meeting the requirements of section 4. 2011 irs form 8863 05 of this revenue procedure to the taxpayer’s timely filed (including extensions) original federal income tax return for the taxable year in which the reacquisition of the applicable debt instrument occurs, and (b) If applicable, satisfying the additional requirements of section 4. 2011 irs form 8863 07, 4. 2011 irs form 8863 08, 4. 2011 irs form 8863 09, or 4. 2011 irs form 8863 10 of this revenue procedure. 2011 irs form 8863 (2) The Service grants an automatic extension of 12 months from the due date prescribed in section 4. 2011 irs form 8863 01(1)(a) of this revenue procedure for making the § 108(i) election. 2011 irs form 8863 The rules that apply to an automatic extension under § 301. 2011 irs form 8863 9100-2(a) apply to this automatic extension. 2011 irs form 8863 . 2011 irs form 8863 02 Section 108(i) Elections Made by Members of Consolidated Groups. 2011 irs form 8863 The common parent of a consolidated group makes the § 108(i) election on behalf of all members of the group. 2011 irs form 8863 See § 1. 2011 irs form 8863 1502-77(a). 2011 irs form 8863 . 2011 irs form 8863 03 Aggregation Rule. 2011 irs form 8863 A taxpayer within the scope of this revenue procedure may treat two or more applicable debt instruments that are part of the same issue and that are reacquired during the same taxable year as one applicable debt instrument for purposes of this revenue procedure. 2011 irs form 8863 A pass-through entity may not treat two or more applicable debt instruments as one applicable debt instrument under this section 4. 2011 irs form 8863 03 if the owners and their ownership interests in the pass-through entity immediately prior to the reacquisition of each applicable debt instrument are not identical. 2011 irs form 8863 . 2011 irs form 8863 04 Partial Elections. 2011 irs form 8863 (1) A taxpayer within the scope of this revenue procedure may make an election for any portion of COD income realized from the reacquisition of any applicable debt instrument. 2011 irs form 8863 Thus, for example, if a taxpayer realizes $100 of COD income from the reacquisition of an applicable debt instrument, the taxpayer may elect under § 108(i)(1) to defer only $40 of the $100 of COD income. 2011 irs form 8863 The taxpayer may exclude from income the portion of COD income that the taxpayer does not elect to defer under § 108(i) ($60 in this example) under § 108(a)(1)(A), (B), (C), or (D), if applicable. 2011 irs form 8863 (2) A taxpayer is not required to make an election for the same portion of COD income arising from each applicable debt instrument that it reacquires, but may make an election for different portions of COD income arising from different applicable debt instruments (whether or not part of the same issue). 2011 irs form 8863 Thus, for example, if a taxpayer realizes $100 of COD income from the reacquisition of an applicable debt instrument (Instrument A) and $100 of COD income from the reacquisition of a different applicable debt instrument (Instrument B), the taxpayer may elect to defer all or a portion of the COD income associated with Instrument A and none or a different portion of the COD income associated with Instrument B. 2011 irs form 8863 (3) A partnership that elects to defer less than all of the COD income realized from the reacquisition of an applicable debt instrument may determine, in any manner, the portion, if any, of a partner’s COD income amount that is the partner’s deferred amount and the portion, if any, of a partner’s COD income amount that is the partner’s included amount. 2011 irs form 8863 Thus, for example, one partner’s deferred amount may be zero while another partner’s deferred amount may equal that partner’s COD income amount (or any portion thereof). 2011 irs form 8863 A partner may exclude from income the partner’s included amount under § 108(a)(1)(A), (B), (C), or (D), if applicable. 2011 irs form 8863 The provisions of this section 4. 2011 irs form 8863 04(3) apply for purposes of § 108(i) only and are not intended as an interpretation of or a change to existing law under § 704. 2011 irs form 8863 . 2011 irs form 8863 05 Contents of Election Statement. 2011 irs form 8863 A statement meets the requirements of this section 4. 2011 irs form 8863 05 if the statement— (1) Label. 2011 irs form 8863 States “Section 108(i) Election” across the top. 2011 irs form 8863 (2) Required information. 2011 irs form 8863 Provides, for each applicable debt instrument the reacquisition of which generates COD income that the taxpayer is electing to defer under § 108(i)— (a) The name and taxpayer identification numbers, if any, of the issuer or issuers of the applicable debt instrument; (b) A general description of the applicable debt instrument (including the issue and maturity dates) and, in the case of any person other than a C corporation, a general description of the person’s trade or business to which the applicable debt instrument is connected; (c) A general description of the reacquisition transaction or transactions generating the COD income (including the date(s) of the transaction(s)); (d) The total amount of COD income for the applicable debt instrument that results from the reacquisition (in the case of a partnership, the aggregate of the partners’ COD income amounts) and a general description of the manner in which this amount is calculated; (e) The amount of COD income for the applicable debt instrument that the taxpayer is electing to defer under § 108(i); (f) In the case of a partnership, a list of partners that have a deferred amount, their identifying information and each partner’s deferred amount; and in the case of an S corporation, a list of shareholders with COD income deferred under § 108(i), their identifying information and each shareholder’s share of the S corporation’s deferred COD income; and (g) In cases in which a new debt instrument is issued or deemed issued in exchange for the applicable debt instrument (including exchanges under § 108(e)(4), § 108(i)(2)(B), and § 1. 2011 irs form 8863 1001-3), the issuer’s name, the issuer’s taxpayer identification number, if any, a general description of the new debt instrument and whether the new debt instrument has OID, and if the new debt instrument has OID, a schedule of the OID that the issuer expects to accrue each taxable year on the instrument and the amount of OID that the issuer expects to defer under § 108(i)(2) each taxable year. 2011 irs form 8863 . 2011 irs form 8863 06 Supplemental information. 2011 irs form 8863 The statement described in section 4. 2011 irs form 8863 05 of this revenue procedure may specify for each applicable debt instrument an amount greater than the amount identified in section 4. 2011 irs form 8863 05(2)(e) of this revenue procedure that the taxpayer elects to defer under § 108(i) in the event the Service subsequently concludes that the taxpayer understated the amount of COD income described in section 4. 2011 irs form 8863 05(2)(d) of this revenue procedure. 2011 irs form 8863 This additional amount of COD income the taxpayer elects to defer may be described as the entire additional COD income, or as a percentage of any additional COD income. 2011 irs form 8863 If the taxpayer is a partnership, the partnership must specify each partner’s share of the partnership’s additional COD income that would be deferred (the partner’s additional deferred amount), which the partnership may describe for each partner as the partner’s entire share of the partnership’s additional COD income or as a percentage of the partner’s share of the partnership’s additional COD income. 2011 irs form 8863 If the taxpayer is an S corporation, the S corporation must specify each shareholder’s share of the S corporation’s additional COD income that would be deferred, which the S corporation may describe for each shareholder as the shareholder’s entire share of the S corporation’s additional COD income or as a percentage of the shareholder’s share of the S corporation’s additional COD income. 2011 irs form 8863 In the case of partnerships and S corporations, the additional COD income and the portion of additional COD income that would be deferred are allocated or determined as provided in sections 2. 2011 irs form 8863 08, 2. 2011 irs form 8863 10 and, if applicable, 4. 2011 irs form 8863 04(3) of this revenue procedure, respectively, as if the additional COD income was realized. 2011 irs form 8863 . 2011 irs form 8863 07 Additional Requirements for Certain Partnerships Making a § 108(i) Election. 2011 irs form 8863 The rules of this section 4. 2011 irs form 8863 07 apply to partnerships other than partnerships described in section 4. 2011 irs form 8863 10 of this revenue procedure. 2011 irs form 8863 (1) Information filing on Schedule K-1 (Form 1065 and Form 1065-B). 2011 irs form 8863 For the taxable year in which the § 108(i) election is made, the partnership must report on the Schedule K-1 (Form 1065 or Form 1065-B), Partner’s Share of Income, Deductions, Credits, etc. 2011 irs form 8863 , in the manner specified in the instructions to the forms, for each partner § 108(i) information on an aggregate basis for all applicable debt instruments for which a § 108(i) election is made. 2011 irs form 8863 Partnerships reporting § 108(i) information on the 2008 Schedule K-1 (Form 1065 or Form 1065-B) must report for each partner on an aggregate basis for all applicable debt instruments for which a § 108(i) election is made: (a) The partner’s deferred amount that the partner must include in income in the current taxable year under § 108(i)(1) or § 108(i)(5)(D)(i) or (ii), in box 11 (“other income”) using code F for Schedule K-1 (Form 1065) or in box 9 (“other”) using code U for Schedule K-1 (Form 1065-B); (b) The partner’s share of the partnership’s OID deduction deferred under § 108(i)(2)(A)(i) that is allowable as a deduction in the current taxable year under § 108(i)(2)(A)(ii) or § 108(i)(5)(D)(i) or (ii), in box 13 (“other deductions”) using code W for Schedule K-1 (Form 1065) or in box 9 (“other”) using code U for Schedule K-1 (Form 1065-B); (c) The partner’s deferred amount that has not been included in income in the current or prior taxable years, in box 20 (“other information”) using code X for Schedule K-1 (Form 1065) or in box 9 (“other”) using code U for Schedule K-1 (Form 1065-B); (d) The partner’s share of the partnership’s OID deduction deferred under § 108(i)(2)(A)(i) that has not been deducted in the current or prior taxable years, in box 20 (“other information”) using code X for Schedule K-1 (Form 1065) or in box 9 (“other”) using code U for Schedule K-1 (Form 1065-B); (e) The partner’s deferred § 752 amount that is treated as a distribution of money to the partner under § 752 in the current taxable year, in box 20 (“other information”) using code X for Schedule K-1 (Form 1065) or in box 9 (“other”) using code U for Schedule K-1 (Form 1065-B); and (f) The partner’s deferred § 752 amount remaining as of the end of the current taxable year, in box 20 (“other information”) using code X for Schedule K-1 (Form 1065) or in box 9 (“other”) using code U for Schedule K-1 (Form 1065-B). 2011 irs form 8863 (2) Election information statement provided to partners. 2011 irs form 8863 The partnership must attach to the Schedule K-1 (Form 1065 or Form 1065-B) provided to each partner for the taxable year in which the § 108(i) election is made a statement satisfying the requirements of this section 4. 2011 irs form 8863 07(2). 2011 irs form 8863 The partnership should not attach these statements to the Schedules K-1 that are filed with the Service, but must retain these statements, and each partner must retain that partner’s statement, in their respective books and records. 2011 irs form 8863 A statement meets the requirements of this section 4. 2011 irs form 8863 07(2) if the statement— (a) Label. 2011 irs form 8863 States “Section 108(i) Election Information Statement for Partners” across the top. 2011 irs form 8863 (b) Required information. 2011 irs form 8863 Clearly identifies for each applicable debt instrument to which an election under § 108(i) applies— (i) The partner’s COD income amount, the partner’s deferred amount, and the partner’s included amount; (ii) The partner’s deferred amount that the partner must include in income in the current taxable year under § 108(i)(5)(D)(i) or (ii); (iii) The partner’s share of the partnership’s OID deduction deferred under § 108(i)(2)(A)(i) in the current taxable year; (iv) The partner’s share of the partnership’s OID deduction deferred under § 108(i)(2)(A)(i) that is allowable as a deduction in the current taxable year under § 108(i)(5)(D)(i) or (ii); (v) The partner’s share of each liability of the partnership described in section 4. 2011 irs form 8863 05(2)(g) of this revenue procedure; (vi) The partner’s share of the decrease in the partnership liability that results from the reacquisition of the applicable debt instrument; (vii) The partner’s share of the decrease in the partnership liability that results from the reacquisition of the applicable debt instrument that is treated as a distribution of money to the partner under § 752 in the current taxable year; (viii) The partner’s deferred § 752 amount as described in section 2. 2011 irs form 8863 09 of this revenue procedure; (ix) The partner’s additional deferred amount as described in section 4. 2011 irs form 8863 06 of this revenue procedure; and (x) The date of the reacquisition transaction generating the COD income. 2011 irs form 8863 (c) If a partner fails to provide the written statement required by section 4. 2011 irs form 8863 07(3) of this revenue procedure, the partnership must indicate that the amounts described in section 4. 2011 irs form 8863 07(2)(b)(vii) and (viii) of this revenue procedure cannot be calculated because the partner did not provide the information necessary to report these amounts. 2011 irs form 8863 (3) Partner reporting requirements. 2011 irs form 8863 The partnership must make reasonable efforts prior to making a § 108(i) election to secure from each partner with a deferred amount for which it does not have the information necessary to compute the partner’s basis in its partnership interest (and its deferred § 752 amount as described in section 2. 2011 irs form 8863 09 of this revenue procedure) a written statement signed under penalties of perjury that includes this information. 2011 irs form 8863 Each partner with a deferred amount must provide this written statement to the partnership within 30 days of the date of request by the partnership. 2011 irs form 8863 A partner’s failure to comply with this reporting requirement does not invalidate the partnership’s election under § 108(i) for an applicable debt instrument only if the partnership makes reasonable efforts before making the § 108(i) election to obtain the written statement from the partner and otherwise complies with the requirements of section 4 of this revenue procedure. 2011 irs form 8863 If a partner provides its written statement under this section 4. 2011 irs form 8863 07(3) after the partnership has provided to the partner the Section 108(i) Election Information Statement for Partners, the partnership must provide to the partner a revised Section 108(i) Election Information Statement for Partners reporting the information required under section 4. 2011 irs form 8863 07(2)(b)(vii) and (viii) of this revenue procedure and report the partner’s deferred § 752 amount on the partner’s Schedule K-1 (Form 1065 or Form 1065-B) in subsequent taxable years. 2011 irs form 8863 . 2011 irs form 8863 08 Additional Requirements for an S Corporation Making a § 108(i) Election. 2011 irs form 8863 (1) Information filing on Schedule K-1 (Form 1120S). 2011 irs form 8863 For the taxable year in which the § 108(i) election is made, the S corporation must report on the Schedule K-1 (Form 1120S), Shareholder’s Share of Income, Deductions, Credits, etc. 2011 irs form 8863 , in the manner specified in the instructions to the forms, for each shareholder § 108(i) information on an aggregate basis for all applicable debt instruments for which a § 108(i) election is made. 2011 irs form 8863 S corporations reporting § 108(i) information on the 2008 Schedule K-1 (Form 1120S) must report for each shareholder, on an aggregate basis for all applicable debt instruments for which a § 108(i) election is made, the shareholder’s share of the S corporation’s: (a) COD income deferred under § 108(i) that the shareholder must include in income in the current taxable year under § 108(i)(1) or § 108(i)(5)(D)(i) or (ii), in box 10 (“other income”) using code E; (b) OID deduction deferred under § 108(i)(2)(A)(i) that is allowable as a deduction in the current taxable year under § 108(i)(2)(A)(ii), or § 108(i)(5)(D)(i) or (ii), in box 12 (“other deductions”) using code S; (c) COD income deferred under § 108(i) that has not been included in income in the current or prior taxable years, in box 17 (“other information”) using code T; and (d) OID deduction deferred under § 108(i)(2)(A)(i) that has not been deducted in the current or prior taxable years, in box 17 (“other information”) using code T. 2011 irs form 8863 (2) Election information statement provided to shareholders. 2011 irs form 8863 The S corporation must attach to the Schedule K-1 (Form 1120S) provided to each shareholder for the taxable year in which the § 108(i) election is made, a statement satisfying the requirements of this section 4. 2011 irs form 8863 08(2). 2011 irs form 8863 The S corporation should not attach these statements to the Schedules K-1 that are filed with the Service, but must retain these statements, and each shareholder must retain that shareholder’s statement, in their respective books and records. 2011 irs form 8863 A statement meets the requirements of this section 4. 2011 irs form 8863 08(2) if the statement— (a) Label. 2011 irs form 8863 States “Section 108(i) Election Information Statement for Shareholders” across the top. 2011 irs form 8863 (b) Required information. 2011 irs form 8863 Clearly identifies for each applicable debt instrument to which an election under § 108(i) applies, the shareholder’s share of the S corporation’s— (i) COD income that the S corporation elects to defer under § 108(i); (ii) COD income deferred under § 108(i) that the shareholder must include in income in the current taxable year under § 108(i)(5)(D)(i) or (ii); (iii) OID deduction deferred under § 108(i)(2)(A)(i) in the current taxable year; (iv) OID deduction deferred under § 108(i)(2)(A)(i) that is allowable as a deduction in the current taxable year under § 108(i)(5)(D)(i) or (ii); and (v) Additional COD income that would be deferred as described in section 4. 2011 irs form 8863 06 of this revenue procedure. 2011 irs form 8863 . 2011 irs form 8863 09 Section 108(i) Elections Made on Behalf of Certain Foreign Corporations. 2011 irs form 8863 The controlling domestic shareholder(s) (or common parent of the controlling domestic shareholder(s), if applicable) of a controlled foreign corporation or a noncontrolled § 902 corporation not otherwise required to file a return of tax may make the § 108(i) election on behalf of the foreign corporation by satisfying the requirements of § 1. 2011 irs form 8863 964-1(c)(3). 2011 irs form 8863 Each controlling domestic shareholder must attach a statement identifying the foreign corporation and satisfying the requirements of section 4. 2011 irs form 8863 05 of this revenue procedure and, if applicable, section 4. 2011 irs form 8863 06 of this revenue procedure, to its federal income tax return for the taxable year ending within or with the taxable year of the foreign corporation for which the § 108(i) election is made. 2011 irs form 8863 . 2011 irs form 8863 10 Section 108(i) Elections Made By Certain Foreign Partnerships. 2011 irs form 8863 The rules of this section 4. 2011 irs form 8863 10 apply to a foreign partnership making a § 108(i) election that is not otherwise required to file a federal partnership return (“nonfiling foreign partnership”). 2011 irs form 8863 See § 1. 2011 irs form 8863 6031(a)-1(b). 2011 irs form 8863 (1) A nonfiling foreign partnership making the election must attach a statement satisfying the requirements of section 4. 2011 irs form 8863 05 of this revenue procedure and, if applicable, section 4. 2011 irs form 8863 06 of this revenue procedure, to a partnership return satisfying the requirements of § 1. 2011 irs form 8863 6031(a)-1(b)(5) it files with the Service. 2011 irs form 8863 In addition, a nonfiling foreign partnership must include in the information required in section 4. 2011 irs form 8863 05(2)(d) and (e) of this revenue procedure the aggregate amounts for all partners as well as the aggregate amounts for all U. 2011 irs form 8863 S. 2011 irs form 8863 persons (as defined in § 7701(a)(30)) and controlled foreign corporation(s) that are partners with deferred amounts in the nonfiling foreign partnership (“affected partners”). 2011 irs form 8863 (2) The nonfiling foreign partnership must make the election, in accordance with § 1. 2011 irs form 8863 6031(a)-1(b)(5), by the date provided in section 4. 2011 irs form 8863 01(1)(a) of this revenue procedure, as if it had a filing obligation for the taxable year in which the reacquisition of the applicable debt instrument occurs. 2011 irs form 8863 (3) For each affected partner, the partnership must file with the Service a Schedule K-1 (Form 1065) and report on the Schedule K-1 (Form 1065) for the affected partner as provided in section 4. 2011 irs form 8863 07(1) of this revenue procedure. 2011 irs form 8863 Except for this § 108(i) information, the partnership need not complete Part III of the Schedule K-1 (Form 1065). 2011 irs form 8863 The partnership must provide a copy of the respective Schedule K-1 (Form 1065) to each affected partner and must also attach to the Schedule K-1 (Form 1065) provided to each affected partner a statement satisfying the requirements of section 4. 2011 irs form 8863 07(2) of this revenue procedure by the date provided in section 4. 2011 irs form 8863 01(1)(a) of this revenue procedure. 2011 irs form 8863 The partnership should not attach any statement described in section 4. 2011 irs form 8863 07(2) of this revenue procedure to the Schedules K-1 that are filed with the Service. 2011 irs form 8863 However, the partnership must retain the statements provided to the affected partners, and each affected partner must retain that partner’s statement, in their respective books and records. 2011 irs form 8863 (4) The partnership and each affected partner must satisfy the requirements of section 4. 2011 irs form 8863 07(3) of this revenue procedure. 2011 irs form 8863 . 2011 irs form 8863 11 Protective § 108(i) Election. 2011 irs form 8863 (1) In general. 2011 irs form 8863 A taxpayer may make a protective election under § 108(i) for an applicable debt instrument if the taxpayer concludes that a particular transaction does not result in the realization of COD income, reports the transaction on its federal income tax return in a manner consistent with the taxpayer’s conclusion, and would be within the scope of this revenue procedure if the taxpayer’s conclusion were incorrect. 2011 irs form 8863 If the Service at any time determines the taxpayer’s conclusion that the particular transaction does not result in the realization of COD income is incorrect, the taxpayer’s protective election is treated as a valid, irrevocable election under § 108(i). 2011 irs form 8863 Thus, if a taxpayer makes a protective election, the Service subsequently may require the taxpayer to report COD income deferred pursuant to the valid and irrevocable protective election even if the statute of limitations has expired for the year in which the COD income was realized and the protective election was made. 2011 irs form 8863 A taxpayer makes a protective election by attaching a statement satisfying the requirements of this section 4. 2011 irs form 8863 11(1) to the taxpayer’s original federal income tax return within the period described in section 4. 2011 irs form 8863 01(1)(a) of this revenue procedure. 2011 irs form 8863 The taxpayer also must attach the election to its federal income tax return in each of the 8 or 9 taxable years, as applicable, following the taxable year of the election. 2011 irs form 8863 A statement meets the requirements of this section 4. 2011 irs form 8863 11(1) if the statement— (a) States “Section 108(i) Protective Election” across the top; (b) Provides the information required under section 4. 2011 irs form 8863 05(2)(a), (b), and (c) of this revenue procedure; (c) Provides that the amounts described in sections 4. 2011 irs form 8863 05(2)(d) and (e) of this revenue procedure are zero; and (d) Provides the information described in section 4. 2011 irs form 8863 06 of this revenue procedure. 2011 irs form 8863 (2) Statements provided to shareholders and partners. 2011 irs form 8863 (a) For each applicable debt instrument, a partnership or S corporation that makes a protective election must attach to the Schedule K-1 (Form 1065, Form 1065-B, or Form 1120S) it provides each of its partners or shareholders, as the case may be, for the taxable year in which the protective election is made a statement containing the information described in section 4. 2011 irs form 8863 11(1)(b) of this revenue procedure (an S corporation need not provide its shareholders with the date(s) of the transaction(s) that would constitute the reacquisition transaction or transactions) and the partner’s or shareholder’s share of the additional COD income that would be deferred as described in section 4. 2011 irs form 8863 11(1)(d) of this revenue procedure. 2011 irs form 8863 (b) The partnership or S corporation should not attach the statements described in this section 4. 2011 irs form 8863 11(2) to the Schedules K-1 that are filed with the Service but must retain these statements, and each partner and shareholder must retain that partner’s or shareholder’s statement, in their respective books and records. 2011 irs form 8863 . 2011 irs form 8863 12 Election-Year Reporting by Tiered Pass-Through Entities. 2011 irs form 8863 (1) A partnership required to file a U. 2011 irs form 8863 S. 2011 irs form 8863 partnership return other than under § 1. 2011 irs form 8863 6031(a)-1(b)(5), or an S corporation, that receives a Schedule K-1 (Form 1065 or Form 1065-B) reflecting its share of any items listed in section 4. 2011 irs form 8863 07(1) of this revenue procedure, must report on the Schedules K-1 (Form 1065, Form 1065-B, or Form 1120S) to its partners or shareholders, as the case may be, each partner’s or shareholder’s share of those items (an S corporation only reports to its shareholders the items described in section 4. 2011 irs form 8863 07(1)(a) through (d) of this revenue procedure). 2011 irs form 8863 (2) If a partnership described in section 4. 2011 irs form 8863 12(1) of this revenue procedure receives a statement described in sections 4. 2011 irs form 8863 07(2) or 4. 2011 irs form 8863 10(3) of this revenue procedure or this section 4. 2011 irs form 8863 12(2), it must provide each of its partners a statement containing the partner’s share of each of the items listed on each statement received by the partnership, including the information described in section 4. 2011 irs form 8863 07(2)(b)(x) of this revenue procedure. 2011 irs form 8863 If an S corporation receives a statement described in sections 4. 2011 irs form 8863 07(2) or 4. 2011 irs form 8863 10(3) of this revenue procedure or this section 4. 2011 irs form 8863 12(2), it must provide each of its shareholders a statement containing the shareholder’s share of each of the items listed on each statement received by the S corporation that are described in section 4. 2011 irs form 8863 07(2)(b)(i), (ii), (iii), (iv) and (ix) of this revenue procedure. 2011 irs form 8863 The partnership or S corporation must attach this statement or statements to the Schedule K-1 (Form 1065, Form 1065-B, or Form 1120S) that it provides to each of its partners or shareholders, as the case may be, for the taxable year of the partnership or S corporation. 2011 irs form 8863 The partnership or S corporation should not attach these statements to the Schedules K-1 that are filed with the Service but must retain these statements, and each partner and shareholder must retain that partner’s or shareholder’s statement, in their respective books and records. 2011 irs form 8863 (3) A partnership that receives a statement described in this section 4 identifying its COD income amount with respect to an applicable debt instrument must allocate its COD income amount, without regard to § 108(i), to the partners in the partnership immediately before the reacquisition transaction in the manner in which the income would be included in the distributive shares of these partners under § 704 and the regulations thereunder, including § 1. 2011 irs form 8863 704-1(b)(2)(iii). 2011 irs form 8863 The partnership may determine in any manner the portion, if any, of a partner’s COD income amount that is the partner’s deferred amount and the portion, if any, of a partner’s COD income amount that is the partner’s included amount. 2011 irs form 8863 No partner’s deferred amount with respect to an applicable debt instrument may exceed its COD income amount with respect to the applicable debt instrument, and the aggregate of deferred amounts of its partners with respect to an applicable debt instrument must equal the partnership’s deferred amount with respect to the applicable debt instrument. 2011 irs form 8863 The partnership allocates amounts described in section 4. 2011 irs form 8863 06 of this revenue procedure under this section 4. 2011 irs form 8863 12(3) as if the additional COD income was realized. 2011 irs form 8863 (4) The deferred § 752 amount for partners in a partnership making a § 108(i) election is calculated only for the partnership’s direct partners. 2011 irs form 8863 No further adjustment to the deferred § 752 amount is made to reflect the basis or other attributes of partners that are indirect partners in the partnership. 2011 irs form 8863 (5) If an S corporation receives a statement described in this section 4 identifying its COD income amount, deferred amount, included amount or additional COD income that would be deferred with respect to an applicable debt instrument, these amounts are shared pro rata only among those shareholders that are shareholders in the S corporation immediately before the reacquisition transaction. 2011 irs form 8863 (6) This paragraph 4. 2011 irs form 8863 12(6) provides the rules for Category 1 and Category 2 filers of Form 8865, Return of U. 2011 irs form 8863 S. 2011 irs form 8863 Persons With Respect to Certain Foreign Partnerships, as defined in the instructions for Form 8865, if the foreign partnership, for which the Category 1 or Category 2 filer has a filing requirement, receives a Schedule K-1 (Form 1065 or Form 1065-B) reflecting the partnership’s share of any items listed in section 4. 2011 irs form 8863 07(1) of this revenue procedure, or a statement described in sections 4. 2011 irs form 8863 07(2) or 4. 2011 irs form 8863 10(3) of this revenue procedure (because the foreign partnership owns an interest directly or indirectly in another partnership in which an election was made under § 108(i) with respect to that foreign partnership’s distributive share from the other entity). 2011 irs form 8863 (a) For each partner for whom the Category 1 filer is required to complete a Schedule K-1 (Form 8865) (which includes the Category 1 filer itself), the Category 1 filer must: (i) Include the information described in section 4. 2011 irs form 8863 07(1) of this revenue procedure in the Schedule K-1 (Form 8865) that the Category 1 filer files with the Service and completes for the partner; (ii) Produce a statement containing the partner’s share of the items listed on each statement received by the partnership; and (iii) Attach the statement described in section 4. 2011 irs form 8863 12(6)(a)(ii) of this revenue procedure to each Schedule K-1 (Form 8865) that it is required to provide to a partner of the foreign partnership. 2011 irs form 8863 (b) A Category 2 filer must include its share of the information described in section 4. 2011 irs form 8863 07(1) on the Schedule K-1 (Form 8865) that it is required to complete. 2011 irs form 8863 Category 2 filers also must complete a statement containing their share of the items listed on each statement received by the partnership. 2011 irs form 8863 (c) The Category 1 and Category 2 filers should not attach the statements described in sections 4. 2011 irs form 8863 12(6)(a)(ii) and 4. 2011 irs form 8863 12(6)(b) of this revenue procedure, respectively, to the Schedules K-1 that are filed with the Service. 2011 irs form 8863 However, Category 1 filers must retain the statements they complete and each partner must retain its own statement, in their respective books and records. 2011 irs form 8863 (7) If as a result of § 108(i)(5)(D)(ii), a partner of a partnership described in section 4. 2011 irs form 8863 12(1) of this revenue procedure or a shareholder of an S corporation described in section 4. 2011 irs form 8863 12(1) of this revenue procedure must recognize items deferred under § 108(i), the partnership or S corporation must report these items on the Schedule K-1 (Form 1065, Form 1065-B, or Form 1120S) and statements provided to the partner or shareholder pursuant to section 4. 2011 irs form 8863 12(1) and (2) of this revenue procedure. 2011 irs form 8863 Similar rules apply to Category 1 and Category 2 filers (Form 8865) described in section 4. 2011 irs form 8863 12(6) of this revenue procedure. 2011 irs form 8863 (8) The provisions of section 4. 2011 irs form 8863 12(2), (3), (5) and (6) of this revenue procedure also apply to a statement received that is described in section 4. 2011 irs form 8863 11(2) of this revenue procedure, except that the information that must be provided are those items described in section 4. 2011 irs form 8863 11(1)(b) of this revenue procedure (an S corporation need not provide its shareholders with the date(s) of the transaction(s) that would constitute the reacquisition transaction or transactions) and the share of the partner or shareholder in the amounts described in section 4. 2011 irs form 8863 11(1)(d) of this revenue procedure. 2011 irs form 8863 SECTION 5. 2011 irs form 8863 REQUIRED INFORMATION STATEMENT . 2011 irs form 8863 01 Annual Information Statements. 2011 irs form 8863 Pursuant to § 108(i)(7)(B), a taxpayer that makes an election under § 108(i) (except for a protective election under section 4. 2011 irs form 8863 11(1) of this revenue procedure) must attach a statement meeting the requirements of section 5. 2011 irs form 8863 02 of this revenue procedure to its federal income tax return for each taxable year beginning with the taxable year following the taxable year for which the taxpayer makes the election and ending with the first taxable year in which all items deferred under § 108(i) have been recognized. 2011 irs form 8863 . 2011 irs form 8863 02 Contents of Statement. 2011 irs form 8863 A statement meets the requirements of this section 5. 2011 irs form 8863 02 if the statement— (1) Label. 2011 irs form 8863 States “Section 108(i) Information Statement” across the top; (2) Required information. 2011 irs form 8863 Clearly identifies for each applicable debt instrument to which an election under § 108(i) applies— (a) COD income deferred under § 108(i) that is included in income in the current taxable year under § 108(i)(1); (b) COD income deferred under § 108(i) that is included in income in the current taxable year under § 108(i)(5)(D), including a description and date of the acceleration event described in § 108(i)(5)(D); (c) COD income deferred under § 108(i) that has not been included in income in the current or prior taxable years (in the case of a partnership, the aggregate of the partners’ deferred amounts that have not been included in income in the current or prior taxable years, and in the case of an S corporation, the S corporation’s COD income deferred under § 108(i) that has not been included in income in the current or prior taxable years); (d) OID deduction deferred under § 108(i)(2)(A)(i) that is allowable as a deduction in the current taxable year under § 108(i)(2)(A)(ii); (e) OID deduction deferred under § 108(i)(2)(A)(i) that is allowable as a deduction in the current taxable year under § 108(i)(5)(D); and (f) OID deduction deferred under § 108(i)(2)(A)(i) that has not been deducted in the current or prior taxable years. 2011 irs form 8863 (3) Election attached. 2011 irs form 8863 Includes a copy of the election statement described in section 4. 2011 irs form 8863 05 of this revenue procedure. 2011 irs form 8863 . 2011 irs form 8863 03 Additional Annual Reporting Requirements for Certain Partnerships. 2011 irs form 8863 The rules of this section 5. 2011 irs form 8863 03 apply to partnerships other than partnerships described in section 5. 2011 irs form 8863 05 of this revenue procedure. 2011 irs form 8863 (1) In general. 2011 irs form 8863 A partnership that makes an election under § 108(i) (except for a protective election under section 4. 2011 irs form 8863 11(1) of this revenue procedure) must attach to its federal income tax returns the statements required under section 5. 2011 irs form 8863 01 of this revenue procedure. 2011 irs form 8863 In addition, for each taxable year in which a statement is required under section 5. 2011 irs form 8863 01 of this revenue procedure, the partnership must report on the Schedule K-1 (Form 1065 or Form 1065-B) for each partner § 108(i) information in the manner described in section 4. 2011 irs form 8863 07(1) of this revenue procedure. 2011 irs form 8863 (2) Annual information statements provided to partners. 2011 irs form 8863 The partnership must attach to the Schedule K-1 (Form 1065) provided to each partner for each taxable year in which a statement is required under section 5. 2011 irs form 8863 01 of this revenue procedure, a statement meeting the requirements of this section 5. 2011 irs form 8863 03(2). 2011 irs form 8863 The partnership should not attach these statements to the Schedules K-1 that are filed with the Service, but must retain these statements, and each partner must retain that partner’s statement, in their respective books and records. 2011 irs form 8863 A statement meets the requirements of this section 5. 2011 irs form 8863 03(2) if the statement— (a) Label. 2011 irs form 8863 States “Section 108(i) Annual Information Statement for Partners” across the top of the statement. 2011 irs form 8863 (b) Required information. 2011 irs form 8863 Clearly identifies for each applicable debt instrument to which a § 108(i) election applies— (i) The partner’s deferred amount that has not been included in income as of the end of the prior taxable year; (ii) The partner’s deferred amount that the partner must include in income in the current taxable year under § 108(i)(1); (iii) The partner’s deferred amount that the partner must include in income in the current taxable year under § 108(i)(5)(D)(i) or (ii); (iv) The partner’s deferred amount that has not been included in income in the current or prior taxable years; (v) The partner’s share of the partnership’s OID deduction deferred under § 108(i)(2)(A)(i) in the current taxable year; (vi) The partner’s share of the partnership’s OID deduction deferred under § 108(i)(2)(A)(i) that is allowable as a deduction in the current taxable year under § 108(i)(2)(A)(ii); (vii) The partner’s share of the partnership’s OID deduction deferred under § 108(i)(2)(A)(i) that is allowable as a deduction in the current taxable year under § 108(i)(5)(D)(i) or (ii); (viii) The partner’s share of the partnership’s OID deduction deferred under § 108(i)(2)(A)(i) that has not been deducted in the current or prior taxable years; and (ix) The partner’s deferred § 752 amount that is treated as a distribution of money to the partner under § 752 in the current taxable year and any remaining deferred § 752 amount. 2011 irs form 8863 If a partner fails to provide the written statement required by section 4. 2011 irs form 8863 07(3) of this revenue procedure, the partnership must indicate that the amounts described in this section 5. 2011 irs form 8863 03(2)(b)(ix) cannot be calculated because the partner did not provide the information necessary to report these amounts. 2011 irs form 8863 . 2011 irs form 8863 04 Additional Annual Reporting Requirements for an S Corporation. 2011 irs form 8863 (1) In general. 2011 irs form 8863 An S corporation that makes an election under § 108(i) (except for a protective election under section 4. 2011 irs form 8863 11(1) of this revenue procedure) must attach to its federal income tax returns the statements required under section 5. 2011 irs form 8863 01 of this revenue procedure. 2011 irs form 8863 In addition, for each taxable year in which a statement is required under section 5. 2011 irs form 8863 01 of this revenue procedure, the S corporation must report on the Schedule K-1 (Form 1120S) for each shareholder § 108(i) information in the manner described in section 4. 2011 irs form 8863 08(1) of this revenue procedure. 2011 irs form 8863 (2) Annual information statements provided to shareholders. 2011 irs form 8863 The S corporation must attach to the Schedule K-1 (Form 1120S) provided to each shareholder for each taxable year in which a statement is required under section 5. 2011 irs form 8863 01 of this revenue procedure a statement meeting the requirements of this section 5. 2011 irs form 8863 04(2). 2011 irs form 8863 The S corporation should not attach these statements to the Schedules K-1 that are filed with the Service, but must retain these statements, and each shareholder must retain that shareholder’s statement, in their respective books and records. 2011 irs form 8863 A statement meets the requirements of this section 5. 2011 irs form 8863 04(2) if the statement— (a) Label. 2011 irs form 8863 States “Section 108(i) Annual Information Statement for Shareholders” across the top; (b) Required information. 2011 irs form 8863 Clearly identifies for each applicable debt instrument to which an election under § 108(i) applies, the shareholder’s share of the S corporation’s— (i) COD income deferred under § 108(i) that has not been included in income as of the end of the prior taxable year; (ii) COD income deferred under § 108(i) that the shareholder must include in income in the current taxable year under § 108(i)(1); (iii) COD income deferred under § 108(i) that the shareholder must include in income in the current taxable year under § 108(i)(5)(D)(i) or (ii); (iv) COD income deferred under § 108(i) that has not been included in income in the current or prior taxable years; (v) OID deduction deferred under § 108(i)(2)(A)(i) in the current taxable year; (vi) OID deduction deferred under § 108(i)(2)(A)(i) that is allowable as a deduction in the current taxable year under § 108(i)(2)(A)(ii); (vii) OID deduction deferred under § 108(i)(2)(A)(i) that is allowable as a deduction in the current taxable year under § 108(i)(5)(D)(i) or (ii); and (viii) OID deduction deferred under § 108(i)(2)(A)(i) that has not been deducted in the current or prior taxable years. 2011 irs form 8863 . 2011 irs form 8863 05 Additional Annual Reporting Requirements for Certain Foreign Partnerships. 2011 irs form 8863 (1) The rules of this section 5. 2011 irs form 8863 05 apply to nonfiling foreign partnerships. 2011 irs form 8863 (2) A nonfiling foreign partnership that makes an election under § 108(i) (except for a protective election under section 4. 2011 irs form 8863 11(1) of this revenue procedure) must file federal income tax returns with the Service containing the information under § 1. 2011 irs form 8863 6031(a)-1(b)(5) for each taxable year in which a statement is required by section 5. 2011 irs form 8863 01 of this revenue procedure. 2011 irs form 8863 (3) The nonfiling foreign partnership must attach to its federal income tax returns the statements required under section 5. 2011 irs form 8863 01 of this revenue procedure, but only for that portion of the COD income allocated to affected partners. 2011 irs form 8863 (4) For each taxable year in which a statement is required under section 5. 2011 irs form 8863 01 of this revenue procedure, the nonfiling foreign partnership must provide each affected partner a Schedule K-1 (Form 1065) reporting § 108(i) information in the manner described in section 4. 2011 irs form 8863 07(1) of this revenue procedure. 2011 irs form 8863 Except for this § 108(i) information, the partnership need not complete Part III of the Schedule K-1 (Form 1065). 2011 irs form 8863 The partnership must provide each affected partner with a copy of the Schedule K-1 (Form 1065) by the date provided in § 1. 2011 irs form 8863 6031(b)-1T(b). 2011 irs form 8863 The partnership must attach the Schedules K-1 (Form 1065) to the federal income tax returns filed with the Service pursuant to section 5. 2011 irs form 8863 05(2) of this revenue procedure. 2011 irs form 8863 (5) For each taxable year for which a statement is required under section 5. 2011 irs form 8863 01 of this revenue procedure, the nonfiling foreign partnership must attach to each affected partner’s Schedule K-1 (Form 1065) a statement meeting the requirements of section 5. 2011 irs form 8863 03(2) of this revenue procedure. 2011 irs form 8863 The partnership should not attach these statements to the Schedules K-1 that are filed with the Service, but must retain the statements, and each partner must retain that partner’s statement, in their respective books and records. 2011 irs form 8863 . 2011 irs form 8863 06 Information Statements Made on Behalf of Certain Foreign Corporations. 2011 irs form 8863 Each controlling domestic shareholder must attach a statement identifying the foreign corporation and meeting the requirements of section 5. 2011 irs form 8863 02 of this revenue procedure to the shareholder’s federal income tax return for each taxable year for which a statement is required under section 5. 2011 irs form 8863 01 of this revenue procedure. 2011 irs form 8863 . 2011 irs form 8863 07 Additional Annual Reporting Requirements for Tiered Pass-Through Entities. 2011 irs form 8863 (1) A partnership required to file a U. 2011 irs form 8863 S. 2011 irs form 8863 partnership return other than under § 1. 2011 irs form 8863 6031(a)-1(b)(5), or an S corporation, that receives a Schedule K-1 (Form 1065 or Form 1065-B) described in the second sentence of section 5. 2011 irs form 8863 03(1) of this revenue procedure reflecting its share of any § 108(i) information must report on the Schedules K-1 (Form 1065, Form 1065-B, or Form 1120S) to its partners or shareholders, as the case may be, each partner’s or shareholder’s share of those items (an S corporation only reports to its shareholders the items described in section 4. 2011 irs form 8863 07(1)(a) through (d) of this revenue procedure). 2011 irs form 8863 (2) If a partnership described in section 5. 2011 irs form 8863 07(1) of this revenue procedure receives a statement described in sections 5. 2011 irs form 8863 03(2) or 5. 2011 irs form 8863 05(5) of this revenue procedure or this section 5. 2011 irs form 8863 07(2), it must provide each of its partners a statement containing the partner’s share of each of the items listed on each statement received by the partnership. 2011 irs form 8863 If an S corporation receives a statement described in sections 5. 2011 irs form 8863 03(2) or 5. 2011 irs form 8863 05(5) of this revenue procedure or this section 5. 2011 irs form 8863 07(2), it must provide each of its shareholders a statement containing the shareholder’s share of each of the items listed on each statement received by the S corporation that are described in section 5. 2011 irs form 8863 03(2)(b)(i) through (viii) of this revenue procedure. 2011 irs form 8863 The partnership or S corporation must attach the statement or statements to the Schedule K-1 (Form 1065 or Form 1065-B) or Schedule K-1 (Form 1120S) that is provided to each of its partners or shareholders, as the case may be, for the taxable year of the partnership or S corporation. 2011 irs form 8863 The partnership or S corporation should not attach these statements to the Schedules K-1 that are filed with the Service, but must retain these statements, and each partner and shareholder must retain that partner’s or shareholder’s statement, in their respective books and records. 2011 irs form 8863 (3) This paragraph 5. 2011 irs form 8863 07(3) provides the rules for persons described in section 4. 2011 irs form 8863 12(6) of this revenue procedure if the foreign partnership, for which the Category 1 or 2 filer has a filing requirement, receives a Schedule K-1 (Form 1065 or Form 1065-B) reflecting the partnership’s share of any items described in the second sentence of section 5. 2011 irs form 8863 03(1) of this revenue procedure, or a statement described in sections 5. 2011 irs form 8863 03(2) or 5. 2011 irs form 8863 05(5) of this revenue procedure (because the foreign partnership owns an interest directly or indirectly in another partnership in which an election was made under § 108(i) with respect to that foreign partnership’s distributive share from the other entity). 2011 irs form 8863 (a) For each partner for whom the Category 1 filer is required to complete a Schedule K-1 (Form 8865) (which includes the Category 1 filer itself), the Category 1 filer must: (i) Include the information described in section 4. 2011 irs form 8863 07(1) of this revenue procedure in the Schedule K-1 (Form 8865) that the Category 1 filer files with the Service and completes for the partner; (ii) Produce a statement containing the partner’s share of the items listed on each statement received by the partnership; and (iii) Attach the statement described in section 5. 2011 irs form 8863 07(3)(a)(ii) of this revenue procedure to each Schedule K-1 (Form 8865) that it is required to provide to a partner of the foreign partnership. 2011 irs form 8863 (b) A Category 2 filer must include its share of the information described in section 4. 2011 irs form 8863 07(1) on the Schedule K-1 (Form 8865) that it is required to complete. 2011 irs form 8863 Category 2 filers also must complete a statement containing their share of the items listed on each statement received by the partnership. 2011 irs form 8863 (c) The Category 1 and Category 2 filers should not attach the statements described in sections 5. 2011 irs form 8863 07(3)(a)(ii) and 5. 2011 irs form 8863 07(3)(b) of this revenue procedure, respectively, to the Schedules K-1 that are filed with the Service. 2011 irs form 8863 However, Category 1 filers must retain the statements they complete and each partner must retain its own statement, in their respective books and records. 2011 irs form 8863 (4) If as a result of § 108(i)(5)(D)(ii), a partner of a partnership described in section 5. 2011 irs form 8863 07(1) of this revenue procedure or a shareholder of an S corporation described in section 5. 2011 irs form 8863 07(1) of this revenue procedure must recognize items deferred under § 108(i), the partnership or S corporation must report these items on the Schedule K-1 (Form 1065, Form 1065-B, or Form 1120S) and statements provided to the partner or shareholder pursuant to section 5. 2011 irs form 8863 07(1) and (2) of this revenue procedure. 2011 irs form 8863 Similar rules apply to Category 1 and Category 2 filers (Form 8865) described in section 4. 2011 irs form 8863 12(6) of this revenue procedure. 2011 irs form 8863 SECTION 6. 2011 irs form 8863 EFFECTIVE DATE This revenue procedure is effective for reacquisitions of applicable debt instruments in taxable years ending after December 31, 2008. 2011 irs form 8863 SECTION 7. 2011 irs form 8863 TRANSITION RULE . 2011 irs form 8863 01 Noncomplying Election. 2011 irs form 8863 Except as otherwise provided in this section 7. 2011 irs form 8863 01, the Service will treat a § 108(i) election as effective if a taxpayer files an election with the taxpayer’s federal income tax return filed on or before September 16, 2009, using any reasonable procedure to make the election. 2011 irs form 8863 However, an election that does not comply with section 4 of this revenue procedure will not be effective unless the taxpayer on or before November 16, 2009, files an amended return for the taxable year of the election and complies with the requirements of section 4 of this revenue procedure. 2011 irs form 8863 . 2011 irs form 8863 02 Modification of Election. 2011 irs form 8863 A taxpayer that files a § 108(i) election on or before September 16, 2009, may modify that election by filing an amended return on or before November 16, 2009 (for example, to modify the amount of COD income the taxpayer elects to defer). 2011 irs form 8863 To be effective, a modification of an election described in the preceding sentence must satisfy the requirements for an election described in section 4 of this revenue procedure. 2011 irs form 8863 . 2011 irs form 8863 03 Notations. 2011 irs form 8863 A taxpayer that files the amended return on paper must write “Section 108(i) Election” on the top of the first page. 2011 irs form 8863 A taxpayer that files the amended return electronically should indicate “Section 108(i) Election” on the return. 2011 irs form 8863 See Publication 4163, Modernized e-File (MeF) Information for Authorized IRS e-file Providers for Business Returns Tax Year 2008 for more details. 2011 irs form 8863 SECTION 8. 2011 irs form 8863 PAPERWORK REDUCTION ACT The collection of information contained in this revenue procedure has been reviewed and approved by the Office of Management and Budget in accordance with the Paperwork Reduction Act (44 U. 2011 irs form 8863 S. 2011 irs form 8863 C. 2011 irs form 8863 3507) under control number 1545-2147. 2011 irs form 8863 An agency may not conduct or sponsor, and a person is not required to respond to, a collection of information unless the collection of information displays a valid OMB control number. 2011 irs form 8863 The collection of information in this revenue procedure is in sections 4, 5 and 7. 2011 irs form 8863 This information is required to determine the amount of income and deductions a taxpayer elects to defer and to track those amounts until the taxpayer has reported all deferred income and deductions on the taxpayer’s tax return. 2011 irs form 8863 This information will be used during examination to verify that a taxpayer has correctly deferred income and deductions. 2011 irs form 8863 The collection of information is required to obtain a benefit. 2011 irs form 8863 The likely respondents are C corporations, shareholders of S corporations, partners of partnerships, and other individuals engaged in a trade or business, that reacquire applicable debt instruments in 2009 or 2010. 2011 irs form 8863 The estimated total annual reporting burden is 300,000 hours. 2011 irs form 8863 The estimated annual burden per respondent varies from 1 to 8 hours, depending on individual circumstances, with an estimated average of 6 hours. 2011 irs form 8863 The estimated number of respondents is 50,000. 2011 irs form 8863 Books or records relating to a collection of information must be retained as long as their contents may become material in the administration of any internal revenue law. 2011 irs form 8863 Generally, tax returns and return information are confidential, as required by § 6103. 2011 irs form 8863 DRAFTING INFORMATION The principal authors of this revenue procedure are Megan A. 2011 irs form 8863 Stoner of the Office of Associate Chief Counsel (Passthroughs & Special Industries) and Craig Wojay of the Office of Associate Chief Counsel (Income Tax & Accounting). 2011 irs form 8863 For further information regarding this revenue procedure, contact Megan A. 2011 irs form 8863 Stoner at (202) 622-3070 for questions involving partnerships and S corporations, William E. 2011 irs form 8863 Blanchard at (202) 622-3950 for questions involving OID, Ronald M. 2011 irs form 8863 Gootzeit at (202) 622-3860 for questions involving foreign entities, Robert Rhyne at (202) 622-7790 for questions involving earnings and profits and consolidated groups, and Craig Wojay at (202) 622-4920 for questions on § 108(i) generally (not toll-free calls). 2011 irs form 8863 Prev  Up  Next   Home   More Internal Revenue Bulletins
 
Print - Click this link to Print this page

Understanding Your IRS Notice or Letter

About Your Notice

If you receive a letter or notice from the IRS, it will explain the reason for the correspondence and provide instructions. Many of these letters and notices can be dealt with simply, without having to call or visit an IRS office.

The notice you receive covers a very specific issue about your account or tax return. Generally, the IRS will send a notice if it believes you owe additional tax, are due a larger refund, if there is a question about your tax return or a need for additional information.

IRS Notice Redesign

Currently, the IRS is in the process of redesigning and revising its correspondence with taxpayers for clarity, effectiveness and efficiency. The new format includes a plain language explanation of the nature of the correspondence, clearly states what action the taxpayer must take and presents a clear, clean design.    

Redesigned Notices

Notice Number Description Topic
CP01 We received the information that you provided and have verified your claim of identity theft. We have placed an identity theft indicator on your account. Identity Theft
CP01A This notice tells you about the Identity Protection Personal Identification Number (IP PIN) we sent you. Identity Theft
CP01H You received a CP 01H notice because we were unable to process your tax return. The IRS has locked your account because the Social Security Administration informed us that the Social Security number (SSN) of the primary or secondary taxpayer on the return belongs to someone who was deceased prior to the current tax year (before January 1, 2010 for a 2010 tax return).  
CP01S We received your Form 14039 or similar statement for your identity theft claim. We'll contact you when we finish processing your case or if we need additional information  
CP02H You owe a balance due as a result of amending your tax return to show receipt of a grant received as a result of Hurricane Katrina, Rita or Wilma. Balance Due
CP03C You received a tax credit (called the First-Time Homebuyer Credit) for a house you purchased. You may need to file a form to report a change in ownership to the house you purchased.  
CP04 Our records show that you or your spouse served in a combat zone, a qualified contingency operation, or a hazardous duty station during the tax year specified on your notice. As a result, you may be eligible for tax deferment.  
CP05 We’re reviewing your tax return.  
CP05A We are examining your return and we need documentation.  
CP07 We received your tax return and are holding your refund until we complete a more thorough review of the benefits you claimed under a treaty and/or the deductions claimed on Schedule A.  
CP08 You may qualify for the Additional Child Tax Credit and be entitled to some additional money. Additional Child Tax Credit
CP09 We've sent you this notice because our records indicate you may be eligible for the Earned Income Credit (EIC), but didn't claim it on your tax return.  
CP10 We made a change(s) to your return because we believe there's a miscalculation. This change(s) affected the estimated tax payment you wanted applied to your taxes for next year. Change To Your Estimated Tax Credit Amount
CP10A We made a change(s) to your return because we believe there's a miscalculation involving your Earned Income Credit. This change(s) affected the estimated tax payment you wanted applied to your taxes for next year. Change To Your Estimated Tax Credit Amount
CP11 We made changes to your return because we believe there’s a miscalculation. You owe money on your taxes as a result of these changes. Balance Due
CP11A We made changes to your return because we believe there's a miscalculation involving your Earned Income Credit. You owe money on your taxes as a result of these changes. Balance Due
CP11M We made changes to your return involving the Making Work Pay and Government Retiree Credit. You owe money on your taxes as a result of these changes. Balance Due
CP12 We made changes to correct a miscalculation on your return.  
CP12A We made changes to correct the Earned Income Credit (EIC) claimed on your tax return.  
CP12E We made changes to correct a miscalculation on your return.  
CP12M We made changes to the computation of the Making Work Pay and/or Government Retiree Credits on your return.  
CP12R We made changes to the computation of the Rebate Recovery Credit on your return.  
CP13 We made changes to your return because we believe there's a miscalculation. You're not due a refund nor do you owe an additional amount because of our changes. Your account balance is zero.  
CP13A We made changes to your return because we found an error involving your Earned Income Credit. You're not due a refund nor do you owe an additional amount because of our changes. Your account balance is zero.  
CP13M We made changes to your return involving the Making Work Pay credit or the Government Retiree Credit. You're not due a refund nor do you owe an additional amount because of our changes. Your account balance is zero.  
CP13R We made changes to your return involving the Recovery Rebate Credit. You're not due a refund nor do you owe an additional amount because of our changes. Your account balance is zero.  
CP14 We sent you this notice because you owe money on unpaid taxes.  
CP14I You owe taxes and penalties because you didn't take out the minimum amount you had to from your traditional individual retirement arrangement (IRA). Or, you put into a tax-sheltered account more than you can legally.  
CP15B We charged you a Trust Fund Recovery Penalty (TFRP) for not paying employment or excise taxes.  
CP16 We sent you this notice to tell you about changes we made to your return that affect your refund. We made these changes because we believe there was a miscalculation. Our records show you owe other tax debts and we applied all or part of your refund to them.  
CP18 We believe you incorrectly claimed one or more deductions or credits. As a result, your refund is less than you expected.  
CP19 We have increased the amount of tax you owe because we believe you incorrectly claimed one or more deductions or credits.  
CP20 We believe you incorrectly claimed one or more deductions or credits. As a result, your refund is less than you expected.  
CP21A We made the change(s) you requested to your tax return for the tax year specified on the notice. You owe money on your taxes as a result of the change(s). Balance Due
CP21B We made the change(s) you requested to your tax return for the tax year specified on the notice. You should receive your refund within 2-3 weeks of your notice. Refund
CP21C We made the change(s) you requested to your tax return for the tax year specified on the notice. You're not due a refund nor do you owe any additional amount. Your account balance for this tax form and tax year is zero. Even Balance
CP21E As a result of your recent audit, we made changes to your tax return for the tax year specified on the notice. You owe money on your taxes as a result of these changes. Balance Due
CP21I We made changes to your tax return for the tax year specified on the notice for Individual Retirement Arrangement (IRA) taxes. You owe money on your taxes as a result of these changes. Balance Due
CP22A We made the change(s) you requested to your tax return for the tax year specified on the notice. You owe money on your taxes as a result of the change(s). Balance Due
CP22E As a result of your recent audit, we made changes to your tax return for the tax year specified on the notice. You owe money on your taxes as a result of these changes. Balance Due
CP22I We made changes to your tax return for the tax year specified on the notice for Individual Retirement Arrangement (IRA) taxes. You owe money on your taxes as a result of these changes. Balance Due
CP23 We made changes to your return because we found a difference between the amount of estimated tax payments on your tax return and the amount we posted to your account. You have a balance due because of these changes.  
CP24 We made changes to your return because we found a difference between the amount of estimated tax payments on your tax return and the amount we posted to your account. You have a potential overpayment credit because of these changes.  
CP24E We made changes to your return because we found a difference between the amount of estimated tax payments on your tax return and the amount we posted to your account. You have a potential overpayment credit because of these changes.  
CP25 We made changes to your return because we found a difference between the amount of estimated tax payments on your tax return and the amount we posted to your account. You're not due a refund nor do you owe an additional amount because of our changes. Your account balance is zero.  
LT26 You were previously asked information regarding the filing of your tax return for a specific tax period.  
ST26 Antes le pedían información referente a la manera que fue presentada su declaración de impuestos para un período tributario específico.  
CP27 We've sent you this notice because our records indicate you may be eligible for the Earned Income Credit (EIC), but didn't claim it on your tax return.  
CP30 We charged you a penalty for not pre-paying enough of your tax either by having taxes withheld from your income, or by making timely estimated tax payments.  
CP30A We reduced or removed the penalty for underpayment of estimated tax reported on your tax return.  
CP31 Your refund check was returned to us, so you need to update your address. Refund
CP32 We sent you a replacement refund check.  
CP32A Call us to request your refund check.  
CP39 We used a refund from your spouse or former spouse to pay your past due tax debt. You may still owe money.  
CP42 The amount of your refund has changed because we used it to pay your spouse's past due tax debt.  
CP44 There is a delay processing your refund because you may owe other federal taxes.  
CP45 We were unable to apply your overpayment to your estimated tax as you requested. Overpayment
CP49 We sent you this notice to tell you we used all or part of your refund to pay a tax debt. Overpayment
CP51A We computed the tax on your Form 1040, 1040A or 1040EZ. You owe taxes.  
CP51B We computed the tax on your Form 1040, 1040A or 1040EZ. You owe taxes.  
CP51C We computed the tax on your Form 1040, 1040A or 1040EZ. You owe taxes.  
CP53 We can't provide your refund through direct deposit, so we're sending you a refund check by mail. Direct Deposits
CP53A We tried to direct deposit your refund, but the financial institution couldn’t process it.  We are researching your account, but it will take 8 to 10 weeks to reissue your refund.  
CP53B We tried to direct deposit your refund, but the financial institution couldn’t process it. We are researching your account, but it will take 8 to 10 weeks to complete our review and verify this refund.  
CP53C We tried to direct deposit your refund, but the financial institution couldn’t process it. When refund payments are questionable, we review related returns to ensure the return is valid. We are researching your account, but it will take 8 to 10 weeks to complete our review and verify this refund.  
CP54B Your tax return shows a different name and/or ID number from the information we have for your account. Please provide more information to us in order to receive your refund.  
CP54E Your tax return shows a different name and/or ID number from the information we have for your account. Please provide the requested information.  
CP54G Your tax return shows a different name and/or ID number from the information we have for your account. Please provide the requested information.  
CP54Q Your tax return shows a different name and/or ID number from the information we have on file for you or from the information from the Social Security Administration (SSA).We previously sent you a notice asking you to provide us some updated information. We still haven’t received a response from you.  
CP59 We sent you this notice because we have no record that you filed your prior personal tax return or returns.  
CP60 We removed a payment erroneously applied to your account.  
CP62 We applied a payment to your account.  
CP63 We are holding your refund because you have not filed one or more tax returns and we believe you will owe tax.  
CP71 You received this notice to remind you of the amount you owe in tax, penalty and interest.  
CP71A You received this notice to remind you of the amount you owe in tax, penalty and interest.  
CP71C You received this notice to remind you of the amount you owe in tax, penalty and interest.  
CP71D You received this notice to remind you of the amount you owe in tax, penalty and interest.  
CP72 You may have claimed a frivolous position on your tax return. A frivolous return is identified when some information on the return has no basis in the law.  
CP74 You are recertified for EITC. You don't have to fill out Form 8862, Information To Claim Earned Income Credit After Disallowance, in the future. You'll receive your EIC refund within 6 weeks as long as you don't owe other tax or debts we're required to collect.  
CP75 We’re auditing your tax return and we need documentation to verify the Earned Income Credit (EIC) that you claimed.  The Earned Income Credit and/or the Additional Child Tax Credit (ACTC) portion(s) of your refund is being held pending the results of the audit.  
CP75A We’re auditing your tax return and need documentation to verify the Earned Income Credit (EIC), dependent exemption(s) and filing status you claimed.  
CP75C You were banned from claiming the Earned Income Credit (EIC) in a prior tax year due to your intentional disregard of the rules or a fraudulent claim. Since your ban is still in effect, we disallowed the EIC for your current tax year.  
CP75D We’re auditing your tax return and we need documentation to verify the income and withholding you reported on your tax return. This may affect your eligibility for the Earned Income Credit (EIC), dependent exemption(s) and other refundable credits that you claimed. We are holding your refund pending the results of the audit.  
CP76 We are allowing your Earned Income Credit as claimed on your tax return. You will receive any expected refund in 8 weeks provided you owe no other taxes or legal debts we are required to collect.  
CP80 We credited payments and/or other credits to your tax account for the tax period shown on your notice. However, we haven't received your tax return.  
CP080 We credited payments and/or other credits to your tax account for the form and tax period shown on your notice. However, we haven't received your tax return.  
CP81 We haven’t received your tax return for a specific tax year. The statute of limitations to claim a refund of your credit or payment for that tax year is about to expire.  
CP081 We haven’t received your tax return for a specific tax year. The statute of limitations to claim a refund of your credit or payment for that tax year is about to expire.  
CP88 We are holding your refund because you have not filed one or more tax returns and we believe you will owe tax.  
CP90C We levied you for unpaid taxes. You have the right to a Collection Due Process hearing.  
CP102 We made changes to your return because we believe there’s a miscalculation.  You owe money on your taxes as a result of these changes.  
CP103 We made changes to your railroad retirement tax return because we believe there was a miscalculation. As a result of these changes, you have a balance due.  
CP104 We made changes to your excise tax return because we believe there was a miscalculation. As a result of these changes, there is a balance due.  
CP108 You are receiving this notice because you made a payment of $XXXXX on XXXXX, and we can’t determine the correct form or tax year to apply it to.  
CP112 We made changes to your return because we believe there’s a miscalculation. As a result, you are due a refund.  
CP113 We made changes to your railroad retirement tax return because we believe there was a miscalculation. As a result of these changes, you have an overpayment on your account.  
CP114 We made changes to your excise tax return because we believe there was a miscalculation. As a result of these changes, there is an overpayment on your account.  
CP120 You need to send us documentation of your tax-exempt status. Tax Exemptions
CP120A Your organization's tax-exempt status has been revoked for failure to file a Form 990 series return for three consecutive years. In addition, you are no longer eligible to sponsor a tax-sheltered annuity plan (Internal Revenue Code section 403(b) retirement plan).  
CP123 We made changes to your excise tax return because we believe there was a miscalculation. As a result of these changes, you have a balance due of less than $1.  
CP124 We made changes to your excise tax return because we believe there was a miscalculation. As a result of these changes, there is a balance due of less than $1.  
CP130 Your tax return filing requirements may have changed: You may no longer need to pay the Alternative Minimum Tax. Filing Requirements
CP138 This notice tells you that all or part of the overpayment on a return you filed was applied to other federal taxes you owe.  
CP141C You are receiving this notice because you did not respond to a previous request for missing or incomplete information on your return and your return is late.  
CP141I You are receiving this notice because you did not respond to a previous request for missing or incomplete information on your return.  
CP141L You are receiving this notice because you didn’t file your return by the due date.  
CP142 We sent you this notice because you filed your information returns late.  
CP143 We accepted your explanation for filing your information return late. We will continue processing your returns.  
CP145 We were unable to credit the full amount you requested to the succeeding tax period.  
CP152 We have received your return. Confirmation of Return Receipt
CP152A We received your Form 8038-CP, Return for Credit Payments to Issuers of Qualified Bonds and provides an explanation for the reduced credit payment amount.  
CP153 We can't provide you with your refund through a direct deposit, so we're sending you a refund check/credit payment by mail. Refund
CP156 We received your Form 990-T, Exempt Organization Business Income Tax Return and Form 8941, Credit for Small Employer Health Premiums.  
CP160 You received this notice to remind you of the amount you owe in tax, penalty and interest.  
CP161 You received this notice because of the money you owe from your tax return.  
CP163 You received this notice to remind you of the amount you owe in tax, penalty and interest.  
CP166 We were unable to process your monthly payment because there were insufficient funds in your bank account. Payment Process
CP169 You received this notice because we couldn't locate the return you said was previously filed.  
CP171 You received this notice to remind you of the amount you owe in tax, penalty and interest.  
CP178 Your tax return filing requirements may have changed: You may no longer owe excise tax. Filing Requirements
CP180/CP181 We sent you this notice because your tax return is missing a schedule or form.  
CP182 We sent you this notice because your tax return is missing Form 3468.  
CP187 You received this notice to remind you of the amount you owe in tax, penalty and interest.  
CP188 We are holding your refund until we determine you owe no other taxes.  
CP210/CP220 We made change(s) for the tax year specified on the notice.  
CP211A We approved your Form 8868, Application for Extension of Time To File an Exempt Organization Return.  
CP211B We denied your request to extend the time to file your Exempt Organization Return because your Form 8868, Application for Extension of Time To File an Exempt Organization Return, wasn't signed or was signed by someone who wasn’t authorized.  
CP211C We denied your request to extend the time to file your Exempt Organization Return because your Form 8868, Application for Extension of Time To File an Exempt Organization Return, wasn't received on time. A request for an extension of the time to file your Exempt Organization Return must be received on or before the due date of your return.  
CP211D We denied your request to extend the time to file your Exempt Organization Return for an additional three months because your Form 8868, Application for Extension of Time To File an Exempt Organization Return, Part II, Line 7 didn’t explain the need for addtional time OR establish reasons that prevented you from filing by the extended due date.  
CP211E We denied your request to extend the time to file your Exempt Organization Return because your Form 8868, Application for Extension of Time To File an Exempt Organization Return, didn’t meet one or more of the requirements.  
CP231 Your refund or credit payment was returned to us and we need you to update your current address. Address Update Needed
CP232A We approved your request for an extension to file your Form 5330.  
CP232B We denied your request to extend the time to file Form 5330 because your Form 5558, Application for Extension of Time To File Certain Employee Plan Returns, wasn't received on time. A request for an extension of the time to file Form 5330 must be received on or before the due date of your return.  
CP232C We denied your request to extend the time to file Form 5330 because your Form 5558, Application for Extension of Time To File Certain Employee Plan Returns, wasn't signed or was signed by someone who wasn’t authorized.  
CP232D We denied your request to extend the time to file Form 5330 because your Form 5558, Application for Extension of Time To File Certain Employee Plan Returns, didn’t state a reason why you need the extension.  
CP237 We sent you a replacement refund check.  
CP237A Call us to request your refund check.  
CP254 Your organization submitted a paper return for the tax period in question.  Because our records show that you must file electronically, the paper return doesn’t satisfy your filing obligation.  
CP255 We need information to complete the termination of your private foundation status.  
CP259 We've sent you this notice because our records indicate you didn't file the required business tax return identified in the notice.  
CP259A We sent you this notice because our records indicate you did not file a required Form 990/990-EZ, Return of Organization Exempt From Income Tax.  
CP259B We sent you this notice because our records indicate you didn't file a required Form 990-PF, Return of Private Foundation or Section 4947(a)(1) Nonexempt Charitable Trust Treated as a Private Foundation.  
CP259C We sent you this notice because our records indicate you are presumed to be a private foundation and you didn't file a required Form 990-PF, Return of Private Foundation or Section 4947(a)(1) Nonexempt Charitable Trust Treated as a Private Foundation.  
CP259D We sent you this notice because our records indicate you did not file a required Form 990-T, Exempt Organization Business Income Tax Return.  
CP259E We sent you this notice because our records indicate you did not file a required Form 990-N, e-Postcard.  
CP259F We're sending you this notice because our records indicate you did not file a required Form 5227, Split-Interest Trust information Return.  
CP259G We sent you this notice because our records indicate you did not file a required Form 1120-POL, U.S. Income Tax Return for Certain Political Organizations.  
CP259H We sent you this notice because our records indicate you are a tax-exempt political organization and you did not file a required Form 990/990-EZ, Return of Organization Exempt From Income Tax.  
CP261 CP261 is the approval notice for Form 2553, Election by a Small Business Corporation.  
CP264 CP264 is the notice for denial of Form 2553, Election by a Small Business Corporation.  
CP267A You received a CP267A Notice because you’ve overpaid the Branded Prescription Drug Fee.  
CP267B You received a CP267B notice because you overpaid your Insurance Provider Fee under Section 9010 of ACA.  
CP268 We made changes to your return because we believe there is a miscalculation on your return. You have a potential overpayment credit because of this miscalculation.  
CP276A We didn't receive a correctly completed tax liability schedule. We normally charge a Federal Tax Deposit (FTD) penalty when this happens. We decided not to do so this time. FTD Penalty
CP276B We didn't receive the correct amount of tax deposits. We normally charge a Federal Tax Deposit penalty when this happens. We decided not to do so this time. FTD Penalty
CP279 CP279 is the notice of acceptance to the parent corporation of a Qualified Subchapter S Subsidiary (QSub) from Form 8869, Qualified Subchapter S Subsidiary Election.  
CP279A CP279A is the notice of acceptance for a Qualified Subchapter S Subsidiary.  
CP282 You received this notice because you indicated on your Form 1065, U.S. Return of Partnership Income, or Form1065-B, U.S. Return of Income for Electing Large Partnerships, that you have foreign partners.  
CP283C We charged you a penalty for filing a late or incomplete Form 8955-SSA, Annual Registration Statement Identifying Separated Participants with Deferred Vested Benefits.  
CP284 We approved your Form 1128, Application to Adopt, Change, or Retain a Tax Year.  
CP285 CP285 notifies BMF taxpayers the reason their Form 1128, Application To Adopt, Change, or Retain a Tax Year, was denied.  
CP286 We send this notice when we approve Form 8716, Election To Have a Tax Year Other Than a Required Tax Year.  
CP288 We accepted your election to be treated as a Qualified Subchapter S Trust (QSST).  
CP290 We're approving your Electing Small Business Trust (ESBT) election.  
CP291 We're revoking your Electing Small Business Trust (ESBT) election.  
CP292 We're revoking your Qualified Subchapter S Trust (QSST) election.  
CP295 We charged you a penalty on your Form 5500.  
CP295A We charged you a penalty on your Form 5500.  
CP297C We levied you for unpaid taxes. You have the right to a Collection Due Process hearing.  
CP299 Your organization may be required to file an annual electronic notice (e-Postcard), Form 990-N.  
CP301 We sent you this notice to inform that you visited IRS online services website and went through Identity Verification process.  
CP501 You have a balance due (money you owe the IRS) on one of your tax accounts.  
CP503 We have not heard from you and you still have an unpaid balance on one of your tax accounts.  
CP504 You have an unpaid amount due on your account. If you do not pay the amount due immediately, the IRS will seize (levy) your state income tax refund and apply it to pay the amount you owe.  
CP504B You have an unpaid amount due on your account. If you do not pay the amount due immediately, the IRS will seize (levy) certain property or rights to property and apply it to pay the amount you owe.  
CP515I This is a reminder notice that we still have no record that you filed your prior tax return or returns.  
CP515B You received this reminder notice because our records indicate you didn't file a business tax return.  
CP516 This is a reminder notice that we still have no record that you filed your prior tax return or returns.  
CP518I This is a final reminder notice that we still have no record that you filed your prior tax return(s).  
CP518B This is a final reminder notice that our records still indicate you haven't filed a business tax return.  
CP521 This notice is to remind you that you have an installment agreement payment due. Please send your payment immediately.  
CP523 This notice informs you of our intent to terminate your installment agreement and seize (levy) your assets. You have defaulted on your agreement.  
CP547 We received your Form 2848, 8821, or 706, and we assigned you a Centralized Authorization File (CAF) number.  
CP563 We reviewed your Form W-7A, Application for Taxpayer Identification Number for Pending U.S. Adoptions, and we need additional information in order to process it.  
CP565 We gave you an Individual Taxpayer Identification Number (ITIN).  
CP565 (SP) Nosotros le asignamos un Número de Identificación Personal del Contribuyente (ITIN, por sus siglas en inglés).  
CP566 We need more information to process your application for an Individual Taxpayer Identification Number (ITIN). You may have sent us an incomplete form. You may have sent us the wrong documents.  
CP566 (SP) Necesitamos más información para poder tramitar su solicitud para un Número de Identificación Personal del Contribuyente (ITIN, por sus siglas en inglés). Usted quizá nos envió un formulario incompleto. O, quizá nos envió los documentos incorrectos.  
CP567 We rejected your application for an Individual Taxpayer Identification Number (ITIN). You may not be eligible for an ITIN. Your documents may be invalid. We may not have received a reply when we asked for more information.  
CP567 (SP) Hemos rechazado su solicitud para un Número de Identificación Personal de Contribuyente (ITIN, por sus siglas en inglés). Es posible que no reúna los requisitos para un ITIN o que sus documentos no sean válidos. O es posible que no hayamos recibido una contestación de su parte cuando solicitamos más información.  
CP601 Usted tiene un saldo pendiente de pago (dinero que le debe al IRS) en una de sus cuentas contributivas.  
CP603 No hemos recibido respuesta de parte de usted y todavía tiene un saldo sin pagar en una de sus cuentas contributivas.  
CP604 Usted tiene un saldo sin pagar en su cuenta. De no pagar esta cantidad inmediatemente, el IRS embargará cualquier reembolso de impuestos estatales al que tenga derecho y aplicarlo al pago de su deuda.  
CP604B Usted tiene un saldo sin pagar en su cuenta. De no pagar esta cantidad inmediatemente, el IRS embargará ciertas propiedades o derechos de propiedad y lo aplicará al pago de su deuda.  
CP615I Este aviso es un recordatorio, que según nuestros registros, todavía no tenemos información de que usted haya presentado su anterior declaración o declaraciones de impuestos.  
CP615B Este aviso es un recordatorio,  que según nuestros registros, usted todavía no ha presentado una declaración de impuestos del negocio.  
CP616 Este es un recordatorio que todavía no tenemos un registro de que usted presentó su anterior declaración o declaraciones de impuestos.  
CP618I Lo presente, es el aviso final para recordarle que según nuestros registros, usted todavía no ha presentado su(s) declaración(es) anterior(es) de impuestos.  
CP618B Lo presente, es el aviso final para recordarle que según nuestros registros, usted todavía no ha presentado una declaración de impuestos del negocio.  
CP621 Este aviso es para notificarle que usted tiene un plan de pagos a plazos vencido. Por favor, envíe el pago inmediatamente.  
CP623 Este aviso es para informarle nuestra intención de cancelar su plan de pagos a plazos y confiscar (embargar) sus bienes. Usted incumplió en su acuerdo.  
CP701 Recibimos su Formulario 14039 (SP) o declaración similar sobre su reclamo de robo de identidad. Nos comunicaremos con usted cuando completemos el procesamiento de su caso o en caso de necesitar información adicional.  
CP711 Nosotros realizamos cambios a su planilla debido a que entendemos que hubo un cálculo erróneo. Como resultado de estos cambios, usted adeuda dinero por sus contribuciones.  
CP712 Hemos realizado cambios para corregir un error de cálculo en su planilla.  
CP713 Hemos realizado cambios para corregir un error de cálculo en su planilla. No se le debe un reembolso y no adeuda una cantidad de dinero adicional a causa de estos cambios. El saldo de su cuenta es cero.  
CP714 Le enviamos este aviso porque usted adeuda contribuciones pendientes de pago.  
CP721 Hicimos el(los) cambio(s) que usted solicitó a su declaración de impuestos para el año tributario que aparece en su aviso. Como resultado de éste(estos) cambio(s) usted debe dinero en sus impuestos.  
CP722 Hicimos el(los) cambio(s) que usted solicitó a su declaración de impuestos para el año tributario que aparece en su aviso. Como resultado de éste(estos) cambio(s) usted debe dinero en sus impuestos.  
CP749 Le enviamos este aviso para informarle que hemos utilizado todo o parte de su reintegro para pagar una deuda contributiva.  
CP759 Le enviamos este aviso porque no tenemos registro que indique que usted radicó su planilla o planillas de contribuciones personales para uno o varios años anteriores.  
CP771 Usted recibió este aviso para recordarle sobre la cantidad que adeuda en contribuciones, multas e intereses.  
CP772 Usted recibió este aviso para recordarle sobre la cantidad que adeuda en contribuciones, multas e intereses.  
CP773 Usted recibió este aviso para recordarle sobre la cantidad que adeuda en contribuciones, multas e intereses.  
CP774 Usted recibió este aviso para recordarle sobre la cantidad que adeuda en contribuciones, multas e intereses.  
CP802 Hemos hecho cambios a su declaración ya que creemos que hay un cálculo erróneo.  Usted adeuda dinero por sus impuestos como resultado de estos cambios.  
CP812 Hemos hecho cambios a su declaración ya que creemos que hay un cálculo erróneo.  Como resultado, a usted se le adeuda un reembolso.  
CP838 Este aviso le informa a usted, que parte o todo su pago en exceso en la declaración que usted presentó, fue acreditado a otros impuestos federales que usted adeuda.  
CP861 Usted recibió este aviso debido al dinero que adeuda de su planilla de contribuciones.  
CP910/CP920 Hicimos cambio(s) para el año tributario indicado en el aviso.  
CP959 Usted no radicó su planilla de contribución de negocios identificada en este aviso.  
CP2000 The income and/or payment information we have on file doesn’t match the information you reported on your tax return. This could affect your tax return; it may cause an increase or decrease in your tax, or may not change it at all.  
CP2005 We accepted the information you sent us. We're not going to change your tax return. We've closed our review of it.  
CP2006 We received your information. We'll look at it and let you know what we're going to do.  
CP2030 We are proposing changes in income, credits, and deductions reported on your U.S. Corporation Income Tax Return. We compared your information with items reported to us by banks, businesses and other payers.  
CP2057 You need to file an amended return. We've received information not reported on your tax return.  
CP2501 You need to contact us. We've received information not reported on your tax return.  
CP2531 Your Tax Return does not match the information we have on file.  
CP2566 We didn't receive your tax return. We have calculated your tax, penalty and interest based on wages and other income reported to us by employers, financial institutions and others.  
CP2566R We previously sent you a CP63 notice informing you we are holding your refund until we receive one or more unfiled tax returns. Because we received no reply to our previous notice, we have calculated your tax, penalty and interest based on wages and other income reported to us by employers, financial institutions and others.  
CP3219A We've received information that is different from what you reported on your tax return. This may result in an increase or decrease in your tax. The notice explains how the amount was calculated and how you can challenge it in U.S. Tax Court.  
CP3219B This Statutory Notice of Deficiency notifies you of the IRS’s intent to assess a tax deficiency and informs you of your right to petition the United States Tax Court to dispute the proposed adjustments. .  
CP3219N We didn't receive your tax return. We have calculated your tax, penalty and interest based on wages and other income reported to us by employers, financial institutions and others.  

Other Notices and Letters

Notice or Letter Number Title
CP 57 Notice of Insufficient Funds
CP 90 / CP 297 Final Notice - Notice of Intent to Levy and Notice of Your Right to a Hearing
CP 297A Notice of Levy and Notice of Your Right to a Hearing
CP 91 / CP 298 Final Notice Before Levy on Social Security Benefits
Letter 0484C Collection Information Statement Requested (Form 433F/433D); Inability to Pay/Transfer
Letter 0549C Balance Due on Account is Paid
Letter 668D(LP 68) We released the taxpayer's levy.
Letter 0681C Proposal to Pay Accepted
Letter 0757C Installment Privilege Terminated
Letter 1058 (LT 11) Final Notice prior to levy; your right to a hearing
Letter 1615 (LT 18) Mail us your overdue tax returns.
Letter 1731 (LP 64) Please help us locate a taxpayer.
Letter 1737 (LT 27) Please complete and site Form 433F, Collection Information Statement.
Letter 1961C Installment Agreement for Direct Debit 433-G
Letter 1962C Installment Agreement Reply to Taxpayer
Letter 2050 (LT 16) Please call us about your overdue taxes or tax return.
Letter 2257C Balance Due Total to Taxpayer
Letter 2271C Installment Agreement for Direct Debit Revisions
Letter 2272C Installment Agreement Cannot be Considered
Letter 2273C Installment Agreement Accepted: Terms Explained
Letter 2318C Installment Agreement: Payroll Deduction (F2159) Incomplete
Letter 2357C Abatement of Penalties and Interest
Letter 2603C Installment Agreement Accepted - Notice of Federal Tax Lien Will be Filed
Letter 2604C Pre-assessed Installment Agreement
Letter 2761C Request for Combat Zone Service Dates
Letter 2789C Taxpayer Response to Reminder of Balance Due
Letter 2800C Incorrect Form W-4, Employee's Withholding Allowance Certificate.
Letter 2801C Exempt Status May not be Allowed
Letter 2840C CC IAPND Installment Agreement Confirmation
Letter 3030C Balance Due Explained:Tax/Interest Not Paid
Letter 3127C Revision to Installment Agreement
Letter 3217C Installment Agreement Accepted: Terms Explained
Letter 3228 (LT 39) Reminder notice.
Letter 4883C We received your federal income tax return; however, we need more information from you to process it.
Letter 5071C We received your federal income tax return; however, we need more information from you to process it.
Letter LP 47 Address Information Request
Letter LP 59 Please contact us about the taxpayer levy.

Eight Things to Know If You Receive an IRS Notice or Letter

Read about eight things every taxpayer should know about IRS notices.

How To Identify Your Notice

The notice number prints on the top right-hand side of each page of all our notices and on the lower right-hand side of the tear-off stub included with most of them. That number identifies the message we deliver in every notice. While the contents may vary somewhat, every notice with the same number has the same basic purpose.

What If My Notice Isn't Listed

You'll find useful information here about many of the notices we send, including the purpose of the notice, the reason we send it, and a list of enclosures we might include with it. There's also sample content for each. Since parts of our notices vary depending on account conditions, the samples may not exactly match the notices we mail. The basic message, though, will be the same.

  • Individual Filer Notices
    Notices we send about Form 1040, 1040A, or 1040EZ, or any schedules, forms, or attachments included with it are Individual Filer Notice.
  • Business Filer Notices
    Notices we send about business-related tax forms such as Forms 941, 1065, and 1120, are Business Filer Notices.

Get More Information

  • Look in the upper right-hand corner to find your notice number.
  • Select your notice number from one of the tables to the left to find additional information about your notice. (Please note that not all notices are on the list.)
  • Call 1-800-829-1040 or visit a local IRS office if you suspect that you have received a fraudulent notice or that you are a victim of identity theft.

Learn about Payment Options

Get Tax Help

Find Forms and Publications

 

Page Last Reviewed or Updated: 24-Feb-2014

The 2011 Irs Form 8863

2011 irs form 8863 Publication 536 - Main Content Table of Contents NOL Steps How To Figure an NOLNonbusiness deductions (line 6). 2011 irs form 8863 Nonbusiness income (line 7). 2011 irs form 8863 Nonbusiness capital losses. 2011 irs form 8863 Business capital losses. 2011 irs form 8863 Illustrated Form 1045, Schedule A When To Use an NOLExceptions to 2-Year Carryback Rule Waiving the Carryback Period How To Carry an NOL Back or Forward How To Claim an NOL DeductionDeducting a Carryback Deducting a Carryforward Change in Marital Status Change in Filing Status Illustrated Form 1045 How To Figure an NOL CarryoverIllustrated Form 1045, Schedule B NOL Carryover From 2013 to 2014Worksheet Instructions How To Get Tax HelpLow Income Taxpayer Clinics NOL Steps Follow Steps 1 through 5 to figure and use your NOL. 2011 irs form 8863 Step 1. 2011 irs form 8863   Complete your tax return for the year. 2011 irs form 8863 You may have an NOL if a negative figure appears on the line below: Individuals — Form 1040, line 41, or Form 1040NR, line 39. 2011 irs form 8863 Estates and trusts — Form 1041, line 22. 2011 irs form 8863   If the amount on that line is not negative, stop here — you do not have an NOL. 2011 irs form 8863 Step 2. 2011 irs form 8863   Determine whether you have an NOL and its amount. 2011 irs form 8863 See How To Figure an NOL , later. 2011 irs form 8863 If you do not have an NOL, stop here. 2011 irs form 8863 Step 3. 2011 irs form 8863   Decide whether to carry the NOL back to a past year or to waive the carryback period and instead carry the NOL forward to a future year. 2011 irs form 8863 See When To Use an NOL , later. 2011 irs form 8863 Step 4. 2011 irs form 8863   Deduct the NOL in the carryback or carryforward year. 2011 irs form 8863 See How To Claim an NOL Deduction , later. 2011 irs form 8863 If your NOL deduction is equal to or less than your taxable income without the deduction, stop here — you have used up your NOL. 2011 irs form 8863 Step 5. 2011 irs form 8863   Determine the amount of your unused NOL. 2011 irs form 8863 See How To Figure an NOL Carryover , later. 2011 irs form 8863 Carry over the unused NOL to the next carryback or carryforward year and begin again at Step 4. 2011 irs form 8863 Note. 2011 irs form 8863   If your NOL deduction includes more than one NOL amount, apply Step 5 separately to each NOL amount, starting with the amount from the earliest year. 2011 irs form 8863 How To Figure an NOL If your deductions for the year are more than your income for the year, you may have an NOL. 2011 irs form 8863 There are rules that limit what you can deduct when figuring an NOL. 2011 irs form 8863 In general, the following items are not allowed when figuring an NOL. 2011 irs form 8863 Any deduction for personal exemptions. 2011 irs form 8863 Capital losses in excess of capital gains. 2011 irs form 8863 The section 1202 exclusion of the gain from the sale or exchange of qualified small business stock. 2011 irs form 8863 Nonbusiness deductions in excess of nonbusiness income. 2011 irs form 8863 The net operating loss deduction. 2011 irs form 8863 The domestic production activities deduction. 2011 irs form 8863 Form 1045, Schedule A. 2011 irs form 8863   Use Form 1045, Schedule A, to figure an NOL. 2011 irs form 8863 The following discussion explains Schedule A and includes an illustrated example. 2011 irs form 8863   First, complete Form 1045, Schedule A, line 1, using amounts from your return. 2011 irs form 8863 If line 1 is a negative amount, you may have an NOL. 2011 irs form 8863   Next, complete the rest of Form 1045, Schedule A, to figure your NOL. 2011 irs form 8863 Nonbusiness deductions (line 6). 2011 irs form 8863   Enter on line 6 deductions that are not connected to your trade or business or your employment. 2011 irs form 8863 Examples of deductions not related to your trade or business are: Alimony paid, Deductions for contributions to an IRA or a self-employed retirement plan, Health savings account deduction, Archer medical savings account deduction, Most itemized deductions (except for casualty and theft losses, state income tax on trade and business income, and any employee business expenses), and The standard deduction. 2011 irs form 8863   Do not include on line 6 the deduction for personal exemptions for you, your spouse, or your dependents. 2011 irs form 8863   Do not enter business deductions on line 6. 2011 irs form 8863 These are deductions that are connected to your trade or business. 2011 irs form 8863 They include the following. 2011 irs form 8863 State income tax on income attributable to trade or business (including wages, salary, and unemployment compensation). 2011 irs form 8863 Moving expenses. 2011 irs form 8863 Educator expenses. 2011 irs form 8863 The deduction for the deductible part of self-employed health insurance. 2011 irs form 8863 Domestic production activities deduction. 2011 irs form 8863 Rental losses. 2011 irs form 8863 Loss on the sale or exchange of business real estate or depreciable property. 2011 irs form 8863 Your share of a business loss from a partnership or an S corporation. 2011 irs form 8863 Ordinary loss on the sale or exchange of stock in a small business corporation or a small business investment company. 2011 irs form 8863 If you itemize your deductions, casualty and theft losses (even if they involve nonbusiness property) and employee business expenses (such as union dues, uniforms, tools, education expenses, and travel and transportation expenses). 2011 irs form 8863 Loss on the sale of accounts receivable (if you use an accrual method of accounting). 2011 irs form 8863 Interest and litigation expenses on state and federal income taxes related to your business. 2011 irs form 8863 Unrecovered investment in a pension or annuity claimed on a decedent's final return. 2011 irs form 8863 Payment by a federal employee to buy back sick leave used in an earlier year. 2011 irs form 8863 Nonbusiness income (line 7). 2011 irs form 8863   Enter on line 7 only income that is not related to your trade or business or your employment. 2011 irs form 8863 For example, enter your annuity income, dividends, and interest on investments. 2011 irs form 8863 Also, include your share of nonbusiness income from partnerships and S corporations. 2011 irs form 8863   Do not include on line 7 the income you receive from your trade or business or your employment. 2011 irs form 8863 This includes salaries and wages, self-employment income, unemployment compensation included in your gross income, and your share of business income from partnerships and S corporations. 2011 irs form 8863 Also, do not include rental income or ordinary gain from the sale or other disposition of business real estate or depreciable business property. 2011 irs form 8863 Adjustment for section 1202 exclusion (line 17). 2011 irs form 8863   Enter on line 17 any gain you excluded under section 1202 on the sale or exchange of qualified small business stock. 2011 irs form 8863 Adjustments for capital losses (lines 19–22). 2011 irs form 8863   The amount deductible for capital losses is limited based on whether the losses are business capital losses or nonbusiness capital losses. 2011 irs form 8863 Nonbusiness capital losses. 2011 irs form 8863   You can deduct your nonbusiness capital losses (line 2) only up to the amount of your nonbusiness capital gains without regard to any section 1202 exclusion (line 3). 2011 irs form 8863 If your nonbusiness capital losses are more than your nonbusiness capital gains without regard to any section 1202 exclusion, you cannot deduct the excess. 2011 irs form 8863 Business capital losses. 2011 irs form 8863   You can deduct your business capital losses (line 11) only up to the total of: Your nonbusiness capital gains that are more than the total of your nonbusiness capital losses and excess nonbusiness deductions (line 10), and Your total business capital gains without regard to any section 1202 exclusion (line 12). 2011 irs form 8863 Domestic production activities deduction (line 23). 2011 irs form 8863   You cannot take the domestic production activities deduction when figuring your NOL. 2011 irs form 8863 Enter on line 23 any domestic production activities deduction claimed on your return. 2011 irs form 8863 NOLs from other years (line 24). 2011 irs form 8863   You cannot deduct any NOL carryovers or carrybacks from other years. 2011 irs form 8863 Enter the total amount of your NOL deduction for losses from other years. 2011 irs form 8863 Illustrated Form 1045, Schedule A The following example illustrates how to figure an NOL. 2011 irs form 8863 It includes filled-in pages 1 and 2 of Form 1040 and Form 1045, Schedule A. 2011 irs form 8863 Example. 2011 irs form 8863 Glenn Johnson is in the retail record business. 2011 irs form 8863 He is single and has the following income and deductions on his Form 1040 for 2013. 2011 irs form 8863 See the illustrated Form 1040 , later. 2011 irs form 8863 INCOME   Wages from part-time job $1,225 Interest on savings 425 Net long-term capital gain on sale of real estate used in business 2,000 Glenn's total income $3,650 DEDUCTIONS   Net loss from business (gross income of $67,000 minus expenses of $72,000) $5,000 Net short-term capital loss on sale of stock 1,000 Standard deduction 6,100 Personal exemption 3,900 Glenn's total deductions $16,000 Glenn's deductions exceed his income by $12,350 ($16,000 − $3,650). 2011 irs form 8863 However, to figure whether he has an NOL, certain deductions are not allowed. 2011 irs form 8863 He uses Form 1045, Schedule A, to figure his NOL. 2011 irs form 8863 See the Illustrated Form 1045, Schedule A , later. 2011 irs form 8863 The following items are not allowed on Form 1045, Schedule A. 2011 irs form 8863 Nonbusiness net short-term capital loss $1,000 Nonbusiness deductions (standard deduction, $6,100) minus nonbusiness income (interest, $425) 5,675 Deduction for personal exemption 3,900 Total adjustments to net loss $10,575     Therefore, Glenn's NOL for 2013 is figured as follows: Glenn's total 2013 income $3,650 Less:     Glenn's original 2013 total deductions $16,000   Reduced by the disallowed items − 10,575 − 5,425 Glenn's NOL for 2013 $1,775 This image is too large to be displayed in the current screen. 2011 irs form 8863 Please click the link to view the image. 2011 irs form 8863 Form 1040, page 1 This image is too large to be displayed in the current screen. 2011 irs form 8863 Please click the link to view the image. 2011 irs form 8863 Form 1040, page 2 This image is too large to be displayed in the current screen. 2011 irs form 8863 Please click the link to view the image. 2011 irs form 8863 Form 1045, page 2 When To Use an NOL Generally, if you have an NOL for a tax year ending in 2013, you must carry back the entire amount of the NOL to the 2 tax years before the NOL year (the carryback period), and then carry forward any remaining NOL for up to 20 years after the NOL year (the carryforward period). 2011 irs form 8863 You can, however, choose not to carry back an NOL and only carry it forward. 2011 irs form 8863 See Waiving the Carryback Period , later. 2011 irs form 8863 You cannot deduct any part of the NOL remaining after the 20-year carryforward period. 2011 irs form 8863 NOL year. 2011 irs form 8863   This is the year in which the NOL occurred. 2011 irs form 8863 Exceptions to 2-Year Carryback Rule Eligible losses, farming losses, qualified disaster losses, and specified liability losses, all defined next, qualify for longer carryback periods. 2011 irs form 8863 Eligible loss. 2011 irs form 8863   The carryback period for eligible losses is 3 years. 2011 irs form 8863 Only the eligible loss portion of the NOL can be carried back 3 years. 2011 irs form 8863 An eligible loss is any part of an NOL that: Is from a casualty or theft, or Is attributable to a federally declared disaster for a qualified small business or certain qualified farming businesses. 2011 irs form 8863 Qualified small business. 2011 irs form 8863   A qualified small business is a sole proprietorship or a partnership that has average annual gross receipts (reduced by returns and allowances) of $5 million or less during the 3-year period ending with the tax year of the NOL. 2011 irs form 8863 If the business did not exist for this entire 3-year period, use the period the business was in existence. 2011 irs form 8863   An eligible loss does not include a farming loss or a qualified disaster loss. 2011 irs form 8863 Farming loss. 2011 irs form 8863   The carryback period for a farming loss is 5 years. 2011 irs form 8863 Only the farming loss portion of the NOL can be carried back 5 years. 2011 irs form 8863 A farming loss is the smaller of: The amount that would be the NOL for the tax year if only income and deductions attributable to farming businesses were taken into account, or The NOL for the tax year. 2011 irs form 8863 Farming business. 2011 irs form 8863   A farming business is a trade or business involving cultivation of land or the raising or harvesting of any agricultural or horticultural commodity. 2011 irs form 8863 A farming business can include operating a nursery or sod farm or raising or harvesting most ornamental trees or trees bearing fruit, nuts, or other crops. 2011 irs form 8863 The raising, shearing, feeding, caring for, training, and management of animals is also considered a farming business. 2011 irs form 8863   A farming business does not include contract harvesting of an agricultural or horticultural commodity grown or raised by someone else. 2011 irs form 8863 It also does not include a business in which you merely buy or sell plants or animals grown or raised entirely by someone else. 2011 irs form 8863 Waiving the 5-year carryback. 2011 irs form 8863   You can choose to figure the carryback period for a farming loss without regard to the special 5-year carryback rule. 2011 irs form 8863 To make this choice for 2013, attach to your 2013 income tax return filed by the due date (including extensions) a statement that you are choosing to treat any 2013 farming losses without regard to the special 5-year carryback rule. 2011 irs form 8863 If you filed your original return on time but did not file the statement with it, you can make this choice on an amended return filed within 6 months after the due date of the return (excluding extensions). 2011 irs form 8863 Attach an election statement to your amended return, and write “Filed pursuant to section 301. 2011 irs form 8863 9100-2” at the top of the statement. 2011 irs form 8863 Once made, this choice is irrevocable. 2011 irs form 8863 Qualified disaster loss. 2011 irs form 8863   The carryback period for a qualified disaster loss is 5 years. 2011 irs form 8863 Only the qualified disaster loss portion of the NOL can be carried back 5 years. 2011 irs form 8863 A qualified disaster loss is the smaller of: The sum of: Any losses attributable to a federally declared disaster and occurring before January 1, 2010, in the disaster area, plus Any allowable qualified disaster expenses (even if you did not choose to treat those expenses as deductions in the current year), or The NOL for the tax year. 2011 irs form 8863 Qualified disaster expenses. 2011 irs form 8863   A qualified disaster expense is any capital expense paid or incurred in connection with a trade or business or with business-related property which is: For the abatement or control of hazardous substances that were released as a result of a federally declared disaster occurring before January 1, 2010, For the removal of debris from, or the demolition of structures on, real property which is business-related property damaged or destroyed as a result of a federally declared disaster occurring before January 1, 2010, or For the repair of business-related property damaged as a result of a federally declared disaster occurring before January 1, 2010. 2011 irs form 8863 Business-related property is property held for use in a trade or business, property held for the production of income, or inventory property. 2011 irs form 8863 Note. 2011 irs form 8863 Section 198A allows taxpayers to treat certain capital expenses (qualified disaster expenses) as deductions in the year the expenses were paid or incurred. 2011 irs form 8863 Excluded losses. 2011 irs form 8863   A qualified disaster loss does not include any losses from property used in connection with any private or commercial golf course, country club, massage parlor, hot tub facility, suntan facility, or any store for which the principal business is the sale of alcoholic beverages for consumption off premises. 2011 irs form 8863   A qualified disaster loss also does not include any losses from any gambling or animal racing property. 2011 irs form 8863 Gambling or animal racing property is any equipment, furniture, software, or other property used directly in connection with gambling, the racing of animals, or the on-site viewing of such racing, and the portion of any real property (determined by square footage) that is dedicated to gambling, the racing of animals, or the on-site viewing of such racing, unless this portion is less than 100 square feet. 2011 irs form 8863 Specified liability loss. 2011 irs form 8863   The carryback period for a specified liability loss is 10 years. 2011 irs form 8863 Only the specified liability loss portion of the NOL can be carried back 10 years. 2011 irs form 8863 Generally, a specified liability loss is a loss arising from: Product liability and expenses incurred in the investigation or settlement of, or opposition to, product liability claims, or An act (or failure to act) that occurred at least 3 years before the beginning of the loss year and resulted in a liability under a federal or state law requiring: Reclamation of land, Dismantling of a drilling platform, Remediation of environmental contamination, or Payment under any workers compensation act. 2011 irs form 8863   Any loss from a liability arising from (1) through (4) above can be taken into account as a specified liability loss only if you used an accrual method of accounting throughout the period in which the act (or failure to act) occurred. 2011 irs form 8863 For details, see section 172(f). 2011 irs form 8863 Waiving the 10-year carryback. 2011 irs form 8863   You can choose to figure the carryback period for a specified liability loss without regard to the special 10-year carryback rule. 2011 irs form 8863 To make this choice for 2013 attach to your 2013 income tax return filed by the due date (including extensions) a statement that you are choosing to treat any 2013 specified liability losses without regard to the special 10-year carryback rule. 2011 irs form 8863 If you filed your original return on time but did not file the statement with it, you can make this choice on an amended return filed within 6 months after the due date of the return (excluding extensions). 2011 irs form 8863 Attach a statement to your amended return and write “Filed pursuant to section 301. 2011 irs form 8863 9100-2” at the top of the statement. 2011 irs form 8863 Once made, this choice is irrevocable. 2011 irs form 8863 Waiving the Carryback Period You can choose not to carry back your NOL. 2011 irs form 8863 If you make this choice, then you can use your NOL only in the 20-year carryforward period. 2011 irs form 8863 (This choice means you also choose not to carry back any alternative tax NOL. 2011 irs form 8863 ) To make this choice, attach a statement to your original return filed by the due date (including extensions) for the NOL year. 2011 irs form 8863 This statement must show that you are choosing to waive the carryback period under section 172(b)(3). 2011 irs form 8863 If you filed your original return on time but did not file the statement with it, you can make this choice on an amended return filed within 6 months of the due date of the return (excluding extensions). 2011 irs form 8863 Attach a statement to your amended return, and write “Filed pursuant to section 301. 2011 irs form 8863 9100-2” at the top of the statement. 2011 irs form 8863 Once you choose to waive the carryback period, it generally is irrevocable. 2011 irs form 8863 If you choose to waive the carryback period for more than one NOL, you must make a separate choice and attach a separate statement for each NOL year. 2011 irs form 8863 If you do not file this statement on time, you cannot waive the carryback period. 2011 irs form 8863 How To Carry an NOL Back or Forward If you choose to carry back the NOL, you must first carry the entire NOL to the earliest carryback year. 2011 irs form 8863 If your NOL is not used up, you can carry the rest to the next earliest carryback year, and so on. 2011 irs form 8863 If you waive the carryback period or do not use up the NOL in the carryback period, carry forward what remains of the NOL to the 20 tax years following the NOL year. 2011 irs form 8863 Start by carrying it to the first tax year after the NOL year. 2011 irs form 8863 If you do not use it up, carry the unused part to the next year. 2011 irs form 8863 Continue to carry any unused part of the NOL forward until the NOL is used up or you complete the 20-year carryforward period. 2011 irs form 8863 Example 1. 2011 irs form 8863 You started your business as a sole proprietor in 2013 and had a $42,000 NOL for the year. 2011 irs form 8863 No part of the NOL qualifies for the 3-year, 5-year, or 10-year carryback. 2011 irs form 8863 You begin using your NOL in 2011, the second year before the NOL year, as shown in the following chart. 2011 irs form 8863 Year   Carryback/  Carryover Unused  Loss 2011 $42,000 $40,000 2012 40,000 37,000 2013 (NOL year)     2014 37,000 31,500 2015 31,500 22,500 2016 22,500 12,700 2017 12,700 4,000 2018 4,000 -0- If your loss were larger, you could carry it forward until the year 2033. 2011 irs form 8863 If you still had an unused 2013 carryforward after the year 2033, you would not be allowed to deduct it. 2011 irs form 8863 Example 2. 2011 irs form 8863 Assume the same facts as in Example 1 , except that $4,000 of the NOL is attributable to a casualty loss and this loss qualifies for a 3-year carryback period. 2011 irs form 8863 You begin using the $4,000 in 2010. 2011 irs form 8863 As shown in the following chart, $3,000 of this NOL is used in 2010. 2011 irs form 8863 The remaining $1,000 is carried to 2011 with the $38,000 NOL that you must begin using in 2011. 2011 irs form 8863 Year   Carryback/  Carryover Unused  Loss 2010 $4,000 $1,000 2011 39,000 37,000 2012 37,000 34,000 2013 (NOL year)     2014 34,000 28,500 2015 28,500 19,500 2016 19,500 9,700 2017 9,700 1,000 2018 1,000 -0- How To Claim an NOL Deduction If you have not already carried the NOL to an earlier year, your NOL deduction is the total NOL. 2011 irs form 8863 If you carried the NOL to an earlier year, your NOL deduction is the carried over NOL minus the NOL amount you used in the earlier year or years. 2011 irs form 8863 If you carry more than one NOL to the same year, your NOL deduction is the total of these carrybacks and carryovers. 2011 irs form 8863 NOL resulting in no taxable income. 2011 irs form 8863   If your NOL is more than the taxable income of the year you carry it to (figured before deducting the NOL), you generally will have an NOL carryover to the next year. 2011 irs form 8863 See How To Figure an NOL Carryover , later, to determine how much NOL you have used and how much you carry to the next year. 2011 irs form 8863 Deducting a Carryback If you carry back your NOL, you can use either Form 1045 or Form 1040X. 2011 irs form 8863 You can get your refund faster by using Form 1045, but you have a shorter time to file it. 2011 irs form 8863 You can use Form 1045 to apply an NOL to all carryback years. 2011 irs form 8863 If you use Form 1040X, you must use a separate Form 1040X for each carryback year to which you apply the NOL. 2011 irs form 8863 Estates and trusts that do not file Form 1045 must file an amended Form 1041 (instead of Form 1040X) for each carryback year to which NOLs are applied. 2011 irs form 8863 Use a copy of the appropriate year's Form 1041, check the “Amended return” box, and follow the Form 1041 instructions for amended returns. 2011 irs form 8863 Include the NOL deduction with other deductions not subject to the 2% limit (line 15a). 2011 irs form 8863 Also, see the special procedures for filing an amended return due to an NOL carryback, explained under Form 1040X , later. 2011 irs form 8863 Form 1045. 2011 irs form 8863   You can apply for a quick refund by filing Form 1045. 2011 irs form 8863 This form results in a tentative adjustment of tax in the carryback year. 2011 irs form 8863 See the Illustrated Form 1045 . 2011 irs form 8863 at the end of this discussion. 2011 irs form 8863   If the IRS refunds or credits an amount to you from Form 1045 and later determines that the refund or credit is too much, the IRS may assess and collect the excess immediately. 2011 irs form 8863   Generally, you must file Form 1045 on or after the date you file your tax return for the NOL year, but not later than one year after the end of the NOL year. 2011 irs form 8863 If the last day of the NOL year falls on a Saturday, Sunday, or holiday, the form will be considered timely if postmarked on the next business day. 2011 irs form 8863 For example, if you are a calendar year taxpayer with a carryback from 2013 to 2011, you must file Form 1045 on or after the date you file your tax return for 2013, but no later than December 31, 2014. 2011 irs form 8863 Form 1040X. 2011 irs form 8863   If you do not file Form 1045, you can file Form 1040X to get a refund of tax because of an NOL carryback. 2011 irs form 8863 File Form 1040X within 3 years after the due date, including extensions, for filing the return for the NOL year. 2011 irs form 8863 For example, if you are a calendar year taxpayer and filed your 2011 return by the April 15, 2012, due date, you must file a claim for refund of 2008 tax because of an NOL carryback from 2011 by April 15, 2015. 2011 irs form 8863   Attach a computation of your NOL using Form 1045, Schedule A, and, if it applies, your NOL carryover using Form 1045, Schedule B, discussed later . 2011 irs form 8863 Refiguring your tax. 2011 irs form 8863   To refigure your total tax liability for a carryback year, first refigure your adjusted gross income for that year. 2011 irs form 8863 (On Form 1045, use lines 10 and 11 and the “After carryback” column for the applicable carryback year. 2011 irs form 8863 ) Use your adjusted gross income after applying the NOL deduction to refigure income or deduction items that are based on, or limited to, a percentage of your adjusted gross income. 2011 irs form 8863 Refigure the following items. 2011 irs form 8863 The special allowance for passive activity losses from rental real estate activities. 2011 irs form 8863 Taxable social security and tier 1 railroad retirement benefits. 2011 irs form 8863 IRA deductions. 2011 irs form 8863 Excludable savings bond interest. 2011 irs form 8863 Excludable employer-provided adoption benefits. 2011 irs form 8863 The student loan interest deduction. 2011 irs form 8863 The tuition and fees deduction. 2011 irs form 8863   If more than one of these items apply, refigure them in the order listed above, using your adjusted gross income after applying the NOL deduction and any previous item. 2011 irs form 8863 (Enter your NOL deduction on Form 1045, line 10. 2011 irs form 8863 On line 11, using the “After carryback” column, enter your adjusted gross income refigured after applying the NOL deduction and after refiguring any above items. 2011 irs form 8863 )   Next, refigure your taxable income. 2011 irs form 8863 (On Form 1045, use lines 12 through 15 and the “After carryback” column. 2011 irs form 8863 ) Use your refigured adjusted gross income (Form 1045, line 11, using the “After carryback” column) to refigure certain deductions and other items that are based on or limited to a percentage of your adjusted gross income. 2011 irs form 8863 Refigure the following items. 2011 irs form 8863 The itemized deduction for medical expenses. 2011 irs form 8863 The itemized deduction for qualified mortgage insurance premiums. 2011 irs form 8863 The itemized deduction for casualty losses. 2011 irs form 8863 Miscellaneous itemized deductions subject to the 2% limit. 2011 irs form 8863 The overall limit on itemized deductions (do not apply to carryback years beginning after December 31, 2009). 2011 irs form 8863 The phaseout of the deduction for exemptions (do not apply to carryback years beginning after December 31, 2009). 2011 irs form 8863 Qualified motor vehicle tax (do not apply to carryback years beginning after December 31, 2009). 2011 irs form 8863    Do not refigure the itemized deduction for charitable contributions. 2011 irs form 8863   Finally, use your refigured taxable income (Form 1045, line 15, using the “After carryback” column) to refigure your total tax liability. 2011 irs form 8863 Refigure your income tax, your alternative minimum tax, and any credits that are based on or limited by your adjusted gross income (AGI), modified adjusted gross income (MAGI), or tax liability. 2011 irs form 8863 (On Form 1045, use lines 16 through 25, and the “After carryback” column. 2011 irs form 8863 ) The earned income credit, for example, may be affected by changes to adjusted gross income or the amount of tax (or both) and, therefore, must be recomputed. 2011 irs form 8863 If you become eligible for a credit because of the carryback, complete the form for that specific credit (such as the EIC Worksheet) for that year. 2011 irs form 8863   While it is necessary to refigure your income tax, alternative minimum tax, and credits, do not refigure your self-employment tax. 2011 irs form 8863 Deducting a Carryforward If you carry forward your NOL to a tax year after the NOL year, list your NOL deduction as a negative figure on the “Other income” line of Form 1040 or Form 1040NR (line 21 for 2013). 2011 irs form 8863 Estates and trusts include an NOL deduction on Form 1041 with other deductions not subject to the 2% limit (line 15a for 2013). 2011 irs form 8863 You must attach a statement that shows all the important facts about the NOL. 2011 irs form 8863 Your statement should include a computation showing how you figured the NOL deduction. 2011 irs form 8863 If you deduct more than one NOL in the same year, your statement must cover each of them. 2011 irs form 8863 Change in Marital Status If you and your spouse were not married to each other in all years involved in figuring NOL carrybacks and carryovers, only the spouse who had the loss can take the NOL deduction. 2011 irs form 8863 If you file a joint return, the NOL deduction is limited to the income of that spouse. 2011 irs form 8863 For example, if your marital status changes because of death or divorce, and in a later year you have an NOL, you can carry back that loss only to the part of the income reported on the joint return (filed with your former spouse) that was related to your taxable income. 2011 irs form 8863 After you deduct the NOL in the carryback year, the joint rates apply to the resulting taxable income. 2011 irs form 8863 Refund limit. 2011 irs form 8863   If you are not married in the NOL year (or are married to a different spouse), and in the carryback year you were married and filed a joint return, your refund for the overpaid joint tax may be limited. 2011 irs form 8863 You can claim a refund for the difference between your share of the refigured tax and your contribution toward the tax paid on the joint return. 2011 irs form 8863 The refund cannot be more than the joint overpayment. 2011 irs form 8863 Attach a statement showing how you figured your refund. 2011 irs form 8863 Figuring your share of a joint tax liability. 2011 irs form 8863   There are five steps for figuring your share of the refigured joint tax liability. 2011 irs form 8863 Figure your total tax as though you had filed as married filing separately. 2011 irs form 8863 Figure your spouse's total tax as though your spouse had also filed as married filing separately. 2011 irs form 8863 Add the amounts in (1) and (2). 2011 irs form 8863 Divide the amount in (1) by the amount in (3). 2011 irs form 8863 Multiply the refigured tax on your joint return by the amount figured in (4). 2011 irs form 8863 This is your share of the joint tax liability. 2011 irs form 8863 Figuring your contribution toward tax paid. 2011 irs form 8863   Unless you have an agreement or clear evidence of each spouse's contributions toward the payment of the joint tax liability, figure your contribution by adding the tax withheld on your wages and your share of joint estimated tax payments or tax paid with the return. 2011 irs form 8863 If the original return for the carryback year resulted in an overpayment, reduce your contribution by your share of the tax refund. 2011 irs form 8863 Figure your share of a joint payment or refund by the same method used in figuring your share of the joint tax liability. 2011 irs form 8863 Use your taxable income as originally reported on the joint return in steps (1) and (2) above, and substitute the joint payment or refund for the refigured joint tax in step (5). 2011 irs form 8863 Change in Filing Status If you and your spouse were married and filed a joint return for each year involved in figuring NOL carrybacks and carryovers, figure the NOL deduction on a joint return as you would for an individual. 2011 irs form 8863 However, treat the NOL deduction as a joint NOL. 2011 irs form 8863 If you and your spouse were married and filed separate returns for each year involved in figuring NOL carrybacks and carryovers, the spouse who sustained the loss may take the NOL deduction on a separate return. 2011 irs form 8863 Special rules apply for figuring the NOL carrybacks and carryovers of married people whose filing status changes for any tax year involved in figuring an NOL carryback or carryover. 2011 irs form 8863 Separate to joint return. 2011 irs form 8863   If you and your spouse file a joint return for a carryback or carryforward year, and were married but filed separate returns for any of the tax years involved in figuring the NOL carryback or carryover, treat the separate carryback or carryover as a joint carryback or carryover. 2011 irs form 8863 Joint to separate returns. 2011 irs form 8863   If you and your spouse file separate returns for a carryback or carryforward year, but filed a joint return for any or all of the tax years involved in figuring the NOL carryover, figure each of your carryovers separately. 2011 irs form 8863 Joint return in NOL year. 2011 irs form 8863   Figure each spouse's share of the joint NOL through the following steps. 2011 irs form 8863 Figure each spouse's NOL as if he or she filed a separate return. 2011 irs form 8863 See How To Figure an NOL , earlier. 2011 irs form 8863 If only one spouse has an NOL, stop here. 2011 irs form 8863 All of the joint NOL is that spouse's NOL. 2011 irs form 8863 If both spouses have an NOL, multiply the joint NOL by a fraction, the numerator of which is spouse A's NOL figured in (1) and the denominator of which is the total of the spouses' NOLs figured in (1). 2011 irs form 8863 The result is spouse A's share of the joint NOL. 2011 irs form 8863 The rest of the joint NOL is spouse B's share. 2011 irs form 8863 Example 1. 2011 irs form 8863 Mark and Nancy are married and file a joint return for 2013. 2011 irs form 8863 They have an NOL of $5,000. 2011 irs form 8863 They carry the NOL back to 2011, a year in which Mark and Nancy filed separate returns. 2011 irs form 8863 Figured separately, Nancy's 2013 deductions were more than her income, and Mark's income was more than his deductions. 2011 irs form 8863 Mark does not have any NOL to carry back. 2011 irs form 8863 Nancy can carry back the entire $5,000 NOL to her 2011 separate return. 2011 irs form 8863 Example 2. 2011 irs form 8863 Assume the same facts as in Example 1 , except that both Mark and Nancy had deductions in 2013 that were more than their income. 2011 irs form 8863 Figured separately, his NOL is $1,800 and her NOL is $3,000. 2011 irs form 8863 The sum of their separate NOLs ($4,800) is less than their $5,000 joint NOL because his deductions included a $200 net capital loss that is not allowed in figuring his separate NOL. 2011 irs form 8863 The loss is allowed in figuring their joint NOL because it was offset by Nancy's capital gains. 2011 irs form 8863 Mark's share of their $5,000 joint NOL is $1,875 ($5,000 × $1,800/$4,800) and Nancy's is $3,125 ($5,000 − $1,875). 2011 irs form 8863 Joint return in previous carryback or carryforward year. 2011 irs form 8863   If only one spouse had an NOL deduction on the previous year's joint return, all of the joint carryover is that spouse's carryover. 2011 irs form 8863 If both spouses had an NOL deduction (including separate carryovers of a joint NOL, figured as explained in the previous discussion ), figure each spouse's share of the joint carryover through the following steps. 2011 irs form 8863 Figure each spouse's modified taxable income as if he or she filed a separate return. 2011 irs form 8863 See Modified taxable income under How To Figure an NOL Carryover , later. 2011 irs form 8863 Multiply the joint modified taxable income you used to figure the joint carryover by a fraction, the numerator of which is spouse A's modified taxable income figured in (1) and the denominator of which is the total of the spouses' modified taxable incomes figured in (1). 2011 irs form 8863 This is spouse A's share of the joint modified taxable income. 2011 irs form 8863 Subtract the amount figured in (2) from the joint modified taxable income. 2011 irs form 8863 This is spouse B's share of the joint modified taxable income. 2011 irs form 8863 Reduce the amount figured in (3), but not below zero, by spouse B's NOL deduction. 2011 irs form 8863 Add the amounts figured in (2) and (4). 2011 irs form 8863 Subtract the amount figured in (5) from spouse A's NOL deduction. 2011 irs form 8863 This is spouse A's share of the joint carryover. 2011 irs form 8863 The rest of the joint carryover is spouse B's share. 2011 irs form 8863 Example. 2011 irs form 8863 Sam and Wanda filed a joint return for 2011 and separate returns for 2012 and 2013. 2011 irs form 8863 In 2013, Sam had an NOL of $18,000 and Wanda had an NOL of $2,000. 2011 irs form 8863 They choose to carry back both NOLs 2 years to their 2011 joint return and claim a $20,000 NOL deduction. 2011 irs form 8863 Their joint modified taxable income (MTI) for 2011 is $15,000, and their joint NOL carryover to 2012 is $5,000 ($20,000 – $15,000). 2011 irs form 8863 Sam and Wanda each figure their separate MTI for 2011 as if they had filed separate returns. 2011 irs form 8863 Then they figure their shares of the $5,000 carryover as follows. 2011 irs form 8863 Step 1. 2011 irs form 8863   Sam's separate MTI $9,000 Wanda's separate MTI + 3,000 Total MTI $12,000 Step 2. 2011 irs form 8863   Joint MTI $15,000 Sam's MTI ÷ total MTI ($9,000 ÷ $12,000) × . 2011 irs form 8863 75 Sam's share of joint MTI $11,250 Step 3. 2011 irs form 8863   Joint MTI $15,000 Sam's share of joint MTI − 11,250 Wanda's share of joint MTI $3,750 Step 4. 2011 irs form 8863   Wanda's share of joint MTI $3,750 Wanda's NOL deduction − 2,000 Wanda's remaining share $1,750 Step 5. 2011 irs form 8863   Sam's share of joint MTI $11,250 Wanda's remaining share + 1,750 Joint MTI to be offset $13,000 Step 6. 2011 irs form 8863   Sam's NOL deduction $18,000 Joint MTI to be offset − 13,000 Sam's carryover to 2012 $5,000 Joint carryover to 2012 $5,000 Sam's carryover − 5,000 Wanda's carryover to 2012 $-0- Wanda's $2,000 NOL deduction offsets $2,000 of her $3,750 share of the joint modified taxable income and is completely used up. 2011 irs form 8863 She has no carryover to 2012. 2011 irs form 8863 Sam's $18,000 NOL deduction offsets all of his $11,250 share of joint modified taxable income and the remaining $1,750 of Wanda's share. 2011 irs form 8863 His carryover to 2012 is $5,000. 2011 irs form 8863 Illustrated Form 1045 The following example illustrates how to use Form 1045 to claim an NOL deduction in a carryback year. 2011 irs form 8863 It includes a filled-in page 1 of Form 1045. 2011 irs form 8863 Example. 2011 irs form 8863 Martha Sanders is a self-employed contractor. 2011 irs form 8863 Martha's 2013 deductions are more than her 2013 income because of a business loss. 2011 irs form 8863 She uses Form 1045 to carry back her NOL 2 years and claim an NOL deduction in 2011. 2011 irs form 8863 Her filing status in both years was single. 2011 irs form 8863 See the filled-in Form 1045 later. 2011 irs form 8863 Martha figures her 2013 NOL on Form 1045, Schedule A (not shown). 2011 irs form 8863 (For an example using Form 1045, Schedule A, see Illustrated Form 1045, Schedule A under How To Figure an NOL , earlier. 2011 irs form 8863 ) She enters the $10,000 NOL from Form 1045, Schedule A, line 25, on Form 1045, line 1a. 2011 irs form 8863 Martha completes lines 10 through 25, using the “Before carryback” column under the column for the second preceding tax year ended 12/31/11 on page 1 of Form 1045 using the following amounts from her 2011 return. 2011 irs form 8863 2011 Adjusted gross income $50,000 Itemized deductions:     Medical expenses [$6,000 − ($50,000 × 7. 2011 irs form 8863 5%)] $2,250   State income tax + 2,000   Real estate tax + 4,000   Home mortgage interest + 5,000   Total itemized deductions $13,250 Exemption $3,700 Income tax $4,550 Self-employment tax $6,120   Martha refigures her taxable income for 2011 after carrying back her 2013 NOL as follows: 2011 Adjusted gross income $50,000 Less:     NOL from 2013 −10,000 2011 Adjusted gross income after carryback $40,000 Less:     Itemized deductions:     Medical expenses [$6,000 − ($40,000 × 7. 2011 irs form 8863 5%)] $3,000   State income tax + 2,000   Real estate tax + 4,000   Home mortgage interest + 5,000   Total itemized deductions −14,000 Less:     Exemption − 3,700 2011 Taxable income after carryback $22,300 Martha then completes lines 10 through 25, using the “After carryback” column under the column for the second preceding tax year ended 12/31/11. 2011 irs form 8863 On line 10, Martha enters her $10,000 NOL deduction. 2011 irs form 8863 Her new adjusted gross income on line 11 is $40,000 ($50,000 − $10,000). 2011 irs form 8863 To complete line 12, she must refigure her medical expense deduction using her new adjusted gross income. 2011 irs form 8863 Her refigured medical expense deduction is $3,000 [$6,000 − ($40,000 × 7. 2011 irs form 8863 5%)]. 2011 irs form 8863 This increases her total itemized deductions to $14,000 [$13,250 + ($3,000 − $2,250)]. 2011 irs form 8863 Martha uses her refigured taxable income ($22,300) from line 15, and the tax tables in her 2011 Form 1040 instructions to find her income tax. 2011 irs form 8863 She enters the new amount, $2,924, on line 16, and her new total tax liability, $9,044, on line 25. 2011 irs form 8863 Martha used up her $10,000 NOL in 2011 so she does not complete a column for the first preceding tax year ended 12/31/2012. 2011 irs form 8863 The decrease in tax because of her NOL deduction (line 27) is $1,612. 2011 irs form 8863 Martha files Form 1045 after filing her 2013 return, but no later than December 31, 2014. 2011 irs form 8863 She mails it to the Internal Revenue Service Center for the place where she lives as shown in the 2013 instructions for Form 1040 and attaches a copy of her 2013 return (including the applicable forms and schedules). 2011 irs form 8863 This image is too large to be displayed in the current screen. 2011 irs form 8863 Please click the link to view the image. 2011 irs form 8863 Form 1045, page 1 How To Figure an NOL Carryover If your NOL is more than your taxable income for the year to which you carry it (figured before deducting the NOL), you may have an NOL carryover. 2011 irs form 8863 You must make certain modifications to your taxable income to determine how much NOL you will use up in that year and how much you can carry over to the next tax year. 2011 irs form 8863 Your carryover is the excess of your NOL deduction over your modified taxable income for the carryback or carryforward year. 2011 irs form 8863 If your NOL deduction includes more than one NOL, apply the NOLs against your modified taxable income in the same order in which you incurred them, starting with the earliest. 2011 irs form 8863 Modified taxable income. 2011 irs form 8863   Your modified taxable income is your taxable income figured with the following changes. 2011 irs form 8863 You cannot claim an NOL deduction for the NOL carryover you are figuring or for any later NOL. 2011 irs form 8863 You cannot claim a deduction for capital losses in excess of your capital gains. 2011 irs form 8863 Also, you must increase your taxable income by the amount of any section 1202 exclusion. 2011 irs form 8863 You cannot claim the domestic production activities deduction. 2011 irs form 8863 You cannot claim a deduction for your exemptions for yourself, your spouse, or dependents. 2011 irs form 8863 You must figure any item affected by the amount of your adjusted gross income after making the changes in (1), (2), and (3), above, and certain other changes to your adjusted gross income that result from (1), (2), and (3). 2011 irs form 8863 This includes income and deduction items used to figure adjusted gross income (for example, IRA deductions), as well as certain itemized deductions. 2011 irs form 8863 To figure a charitable contribution deduction, do not include deductions for NOL carrybacks in the change in (1) but do include deductions for NOL carryforwards from tax years before the NOL year. 2011 irs form 8863   Your taxable income as modified cannot be less than zero. 2011 irs form 8863 Form 1045, Schedule B. 2011 irs form 8863   You can use Form 1045, Schedule B, to figure your modified taxable income for carryback years and your carryover from each of those years. 2011 irs form 8863 Do not use Form 1045, Schedule B, for a carryforward year. 2011 irs form 8863 If your 2013 return includes an NOL deduction from an NOL year before 2013 that reduced your taxable income to zero (to less than zero, if an estate or trust), see NOL Carryover From 2013 to 2014 , later. 2011 irs form 8863 Illustrated Form 1045, Schedule B The following example illustrates how to figure an NOL carryover from a carryback year. 2011 irs form 8863 It includes a filled-in Form 1045, Schedule B. 2011 irs form 8863 Example. 2011 irs form 8863 Ida Brown runs a small clothing shop. 2011 irs form 8863 In 2013, she has an NOL of $36,000 that she carries back to 2011. 2011 irs form 8863 She has no other carrybacks or carryforwards to 2011. 2011 irs form 8863 Ida's adjusted gross income in 2011 was $35,000, consisting of her salary of $36,000 minus a $1,000 capital loss deduction. 2011 irs form 8863 She is single and claimed only one personal exemption of $3,700. 2011 irs form 8863 During that year, she gave $1,450 in charitable contributions. 2011 irs form 8863 Her medical expenses were $3,000. 2011 irs form 8863 She also deducted $1,650 in taxes and $3,125 in home mortgage interest. 2011 irs form 8863 Her deduction for charitable contributions was not limited because her contributions, $1,450, were less than 50% of her adjusted gross income. 2011 irs form 8863 The deduction for medical expenses was limited to expenses over 7. 2011 irs form 8863 5% of adjusted gross income (. 2011 irs form 8863 075 × $35,000 = $2,625; $3,000 − $2,625 = $375). 2011 irs form 8863 The deductions for taxes and home mortgage interest were not subject to any limits. 2011 irs form 8863 She was able to claim $6,600 ($1,450 + $375 + $1,650 + $3,125) in itemized deductions and a personal exemption deduction of $3,700 for 2011. 2011 irs form 8863 She had no other deductions in 2011 (except the NOL deduction). 2011 irs form 8863 Her taxable income (figured without the NOL deduction) for the year was $24,700. 2011 irs form 8863 Ida's adjusted gross income in 2012 was $9,325, consisting of net business income from the clothing shop of $12,325 and a net capital loss of $3,000. 2011 irs form 8863 She did not itemize her deductions in 2012. 2011 irs form 8863 She deducted the standard deduction of $5,950 and the personal exemption deduction of $3,800. 2011 irs form 8863 She had no other deductions in 2012 (other than the NOL deduction). 2011 irs form 8863 Her taxable income, therefore, was ($425). 2011 irs form 8863 Ida's $36,000 carryback will result in her having 2011 taxable income of zero. 2011 irs form 8863 She then completes the column for the second preceding tax year ended 12/31/11 on Form 1045, Schedule B, to figure how much of her NOL she uses up in 2011 and how much she can carry over to 2012. 2011 irs form 8863 She completes the column for the first preceding tax year ended 12/31/12. 2011 irs form 8863 See the illustrated Form 1045, Schedule B , shown later. 2011 irs form 8863 Column 1, line 1. 2011 irs form 8863 Ida enters $36,000, her 2013 net operating loss, on line 1. 2011 irs form 8863 Column 1, line 2. 2011 irs form 8863 She enters $24,700, her 2011 taxable income (figured without the NOL deduction), on line 2. 2011 irs form 8863 Column 1, line 3. 2011 irs form 8863 Ida enters her net capital loss deduction of $1,000 on line 3. 2011 irs form 8863 Column 1, lines 4 and 5. 2011 irs form 8863 Ida had no section 1202 exclusion or domestic production activities deduction in 2011. 2011 irs form 8863 She enters zero on lines 4 and 5. 2011 irs form 8863 Column 1, line 6. 2011 irs form 8863 Although Ida's entry on line 3 modifies her adjusted gross income, that does not affect any other items included in her adjusted gross income. 2011 irs form 8863 Ida enters zero on line 6. 2011 irs form 8863 Column 1, line 7. 2011 irs form 8863 Ida had itemized deductions and entered $1,000 on line 3, so she completes lines 11 through 38 to figure her adjustment to itemized deductions. 2011 irs form 8863 On line 7, she enters the total adjustment from line 38. 2011 irs form 8863 Column 1, line 8. 2011 irs form 8863 Ida enters the deduction for her personal exemption of $3,700 for 2011. 2011 irs form 8863 Column 1, line 9. 2011 irs form 8863 After combining lines 2 through 8, Ida's modified taxable income is $29,475. 2011 irs form 8863 Column 1, line 10. 2011 irs form 8863 Ida figures her carryover to 2012 by subtracting her modified taxable income (line 9) from her NOL deduction (line 1). 2011 irs form 8863 She enters the $6,525 carryover on line 10. 2011 irs form 8863 She also enters the $6,525 as her NOL deduction for 2012 on Form 1045, page 1, line 10, in the “After carryback” column under the column for the first preceding tax year ended 12/31/12. 2011 irs form 8863 (For an illustrated example of page 1 of Form 1045, see Illustrated Form 1045 under How To Claim an NOL Deduction , earlier. 2011 irs form 8863 ) Next, Ida completes column 2 for the first preceding tax year ended 12/31/12. 2011 irs form 8863 Column 1, line 11. 2011 irs form 8863 Ida's adjusted gross income for 2011 was $35,000. 2011 irs form 8863 Column 1, line 12. 2011 irs form 8863 She adds lines 3 through 6 and enters $1,000 on line 12. 2011 irs form 8863 (This is her net capital loss deduction added back, which modifies her adjusted gross income. 2011 irs form 8863 ) Column 1, line 13. 2011 irs form 8863 Her modified adjusted gross income for 2011 is now $36,000. 2011 irs form 8863 Column 1, line 14. 2011 irs form 8863 On her 2011 tax return, she deducted $375 as medical expenses. 2011 irs form 8863 Column 1, line 15. 2011 irs form 8863 Her actual medical expenses were $3,000. 2011 irs form 8863 Column 1, line 16. 2011 irs form 8863 She multiplies her modified adjusted gross income, $36,000, by . 2011 irs form 8863 075. 2011 irs form 8863 She enters $2,700 on line 16. 2011 irs form 8863 Column 1, line 17. 2011 irs form 8863 She substracts $2,700 from her actual medical expenses, $3,000. 2011 irs form 8863 She enters $300 on line 17. 2011 irs form 8863 This is her modified medical deduction. 2011 irs form 8863 Column 1, line 18. 2011 irs form 8863 The difference between her medical deduction and her modified medical deduction is $75. 2011 irs form 8863 She enters this on line 18. 2011 irs form 8863 Column 1, lines 19 through 21. 2011 irs form 8863 Ida had no deduction for qualified mortgage insurance premiums in 2011. 2011 irs form 8863 She skips lines 19 and 20 and enters zero on line 21. 2011 irs form 8863 Column 1, line 22. 2011 irs form 8863 She enters her modified adjusted gross income of $36,000 on line 22. 2011 irs form 8863 Column 1, line 23. 2011 irs form 8863 She had no other carrybacks to 2011 and enters zero on line 23. 2011 irs form 8863 Column 1, line 24. 2011 irs form 8863 Her modified adjusted gross income remains $36,000. 2011 irs form 8863 Column 1, line 25. 2011 irs form 8863 Her actual contributions for 2011 were $1,450, which she enters on line 25. 2011 irs form 8863 Column 1, line 26. 2011 irs form 8863 She now refigures her charitable contributions based on her modified adjusted gross income. 2011 irs form 8863 Her contributions are well below the 50% limit, so she enters $1,450 on line 26. 2011 irs form 8863 Column 1, line 27. 2011 irs form 8863 The difference is zero. 2011 irs form 8863 Column 1, lines 28 through 37. 2011 irs form 8863 Ida had no casualty losses or deductions for miscellaneous items in 2011. 2011 irs form 8863 She skips lines 28 through 31 and lines 33 through 36. 2011 irs form 8863 Ida enters zero on lines 32 and 37. 2011 irs form 8863 Column 1, line 38. 2011 irs form 8863 She combines lines 18, 21, 27, 32, and 37 and enters $75 on line 38. 2011 irs form 8863 She carries this figure to line 7. 2011 irs form 8863 Column 2, line 1. 2011 irs form 8863 Ida enters $6,525, the carryback of her 2013 NOL to 2012, from column 1, line 10, on line 1. 2011 irs form 8863 Column 2, line 2. 2011 irs form 8863 She enters ($425), her 2012 taxable income, on line 2. 2011 irs form 8863 Column 2, line 3. 2011 irs form 8863 Ida enters her net capital loss deduction of $3,000 on line 3. 2011 irs form 8863 Column 2, lines 4 and 5. 2011 irs form 8863 Ida had no section 1202 exclusion or domestic production activities deduction in 2012. 2011 irs form 8863 She enters zero on lines 4 and 5. 2011 irs form 8863 Column 2, line 6. 2011 irs form 8863 Although Ida's entry on line 3 modifies her adjusted gross income, that does not affect any other items included in her adjusted gross income. 2011 irs form 8863 Ida enters zero on line 6. 2011 irs form 8863 Column 2, line 7. 2011 irs form 8863 Because Ida did not itemize deductions on her 2012 tax return, she enters zero on line 7. 2011 irs form 8863 Column 2, line 8. 2011 irs form 8863 Ida enters the deduction for her personal exemption of $3,800 for 2012. 2011 irs form 8863 Column 2, line 9. 2011 irs form 8863 After combining lines 2 through 8, Ida's modified taxable income is $6,375. 2011 irs form 8863 Column 2, line 10. 2011 irs form 8863 Ida figures her carryforward to 2014 by subtracting her modified taxable income (line 9) from her NOL deduction (line 1). 2011 irs form 8863 She enters the $150 carryover on line 10. 2011 irs form 8863 This image is too large to be displayed in the current screen. 2011 irs form 8863 Please click the link to view the image. 2011 irs form 8863 Form 1045, page 3 This image is too large to be displayed in the current screen. 2011 irs form 8863 Please click the link to view the image. 2011 irs form 8863 Form 1045, page 4 NOL Carryover From 2013 to 2014 If you had an NOL deduction carried forward from a year prior to 2013 that resulted in your having taxable income on your 2013 return of zero (of less than zero, if an estate or trust), complete Table 1 , Worksheet for NOL Carryover From 2013 to 2014, on the following pages. 2011 irs form 8863 It will help you figure your NOL to carry to 2014. 2011 irs form 8863 Keep the worksheet for your records. 2011 irs form 8863 Worksheet Instructions At the top of the worksheet, enter the NOL year for which you are figuring the carryover. 2011 irs form 8863 More than one NOL. 2011 irs form 8863   If your 2013 NOL deduction includes amounts for more than one loss year, complete this worksheet only for one loss year. 2011 irs form 8863 To determine which year, start with your earliest NOL and subtract each NOL separately from your taxable income figured without the NOL deduction. 2011 irs form 8863 Complete this worksheet for the earliest NOL that results in your having taxable income below zero. 2011 irs form 8863 Your NOL carryover to 2014 is the total of the amount on line 10 of the worksheet and all later NOL amounts. 2011 irs form 8863 Example. 2011 irs form 8863 Your taxable income for 2013 is $5,000 without your $9,000 NOL deduction. 2011 irs form 8863 Your NOL deduction includes a $2,000 carryover from 2011 and a $7,000 carryover from 2012. 2011 irs form 8863 Subtract your 2011 NOL of $2,000 from $5,000. 2011 irs form 8863 This gives you taxable income of $3,000. 2011 irs form 8863 Your 2011 NOL is now completely used up. 2011 irs form 8863 Subtract your $7,000 2012 NOL from $3,000. 2011 irs form 8863 This gives you taxable income of ($4,000). 2011 irs form 8863 You now complete the worksheet for your 2012 NOL. 2011 irs form 8863 Your NOL carryover to 2014 is the unused part of your 2012 NOL from line 10 of the worksheet. 2011 irs form 8863 Line 2. 2011 irs form 8863   Treat your NOL deduction for the NOL year entered at the top of the worksheet and later years as a positive amount. 2011 irs form 8863 Add it to your negative taxable income (figured without the NOL deduction). 2011 irs form 8863 Enter the result on line 2. 2011 irs form 8863 Line 6. 2011 irs form 8863   You must refigure the following income and deductions based on adjusted gross income. 2011 irs form 8863 The special allowance for passive activity losses from rental real estate activities. 2011 irs form 8863 Taxable social security and tier 1 railroad retirement benefits. 2011 irs form 8863 IRA deductions. 2011 irs form 8863 Excludable savings bond interest. 2011 irs form 8863 Excludable employer-provided adoption benefits. 2011 irs form 8863 The student loan interest deduction. 2011 irs form 8863 The tuition and fees deduction. 2011 irs form 8863   If none of these items apply to you, enter zero on line 6. 2011 irs form 8863 Otherwise, increase your adjusted gross income by the total of lines 3 through 5 and your NOL deduction for the NOL year entered at the top of the worksheet and later years. 2011 irs form 8863 Using this increased adjusted gross income, refigure the items that apply, in the order listed above. 2011 irs form 8863 Your adjustment for each item is the difference between the refigured amount and the amount included on your return. 2011 irs form 8863 Combine the adjustments for previous items with your adjusted gross income before refiguring the next item. 2011 irs form 8863 Keep a record of your computations. 2011 irs form 8863   Enter your total adjustments for the above items on line 6. 2011 irs form 8863 Line 7. 2011 irs form 8863   Enter zero if you claimed the standard deduction or the amounts on lines 3 through 5 are zero. 2011 irs form 8863 Otherwise, use lines 11 through 33 of the worksheet to figure the amount to enter on this line. 2011 irs form 8863 Complete only those sections that apply to you. 2011 irs form 8863 Estates and trusts. 2011 irs form 8863   Enter zero on line 7 if you did not claim any miscellaneous deductions on Form 1041, line 15c, or a casualty or theft loss. 2011 irs form 8863 Otherwise, refigure these deductions by substituting modified adjusted gross income (see below ) for adjusted gross income. 2011 irs form 8863 Subtract the recomputed deductions from those claimed on the return. 2011 irs form 8863 Enter the result on line 7. 2011 irs form 8863 Modified adjusted gross income. 2011 irs form 8863   To refigure miscellaneous itemized deductions of an estate or trust (Form 1041, line 15c), modified adjusted gross income is the total of the following amounts. 2011 irs form 8863 The adjusted gross income on the return. 2011 irs form 8863 The amounts from lines 3 through 5 of the worksheet. 2011 irs form 8863 The exemption amount from Form 1041, line 20. 2011 irs form 8863 The NOL deduction for the NOL year entered at the top of the worksheet and for later years. 2011 irs form 8863   To refigure the casualty and theft loss deduction of an estate or trust, modified adjusted gross income is the total of the following amounts. 2011 irs form 8863 The adjusted gross income amount you used to figure the deduction claimed on the return. 2011 irs form 8863 The amounts from lines 3 through 5 of the worksheet. 2011 irs form 8863 The NOL deduction for the NOL year entered at the top of the worksheet and for later years. 2011 irs form 8863 Line 11. 2011 irs form 8863   Treat your NOL deduction for the NOL year entered at the top of the worksheet and for later years as a positive amount. 2011 irs form 8863 Add it to your adjusted gross income. 2011 irs form 8863 Enter the result on line 11. 2011 irs form 8863 Line 20. 2011 irs form 8863   Is your modified adjusted gross income from line 13 of this worksheet more than $100,000 ($50,000 if married filing separately)?   □ Yes. 2011 irs form 8863 Your deduction is limited. 2011 irs form 8863 Refigure your deduction using the Mortgage Insurance Premiums Deduction Worksheet in the 2013 Instructions for Form 1045. 2011 irs form 8863 On line 2 of the Mortgage Insurance Premiums Deduction Worksheet, enter the amount from line 13 of this worksheet. 2011 irs form 8863   □ No. 2011 irs form 8863 Your deduction is not limited. 2011 irs form 8863 Enter the amount from line 19 on line 20 and enter -0- on line 21. 2011 irs form 8863 Line 23. 2011 irs form 8863   If you had a contributions carryover from 2012 to 2013 and your NOL deduction includes an amount from an NOL year before 2012, you may have to reduce your contributions carryover. 2011 irs form 8863 Reduce the contributions carryover by the amount of any adjustment you made to your 2012 charitable contributions deduction when figuring your NOL carryover to 2013. 2011 irs form 8863 Use the reduced contributions carryover to figure the amount to enter on line 23. 2011 irs form 8863 Please click here for the text description of the image. 2011 irs form 8863 Worksheet for NOL Carryover Worksheet for NOL Carryover (Continued) How To Get Tax Help Whether it's help with a tax issue, preparing your tax return or a need for a free publication or form, get the help you need the way you want it: online, use a smart phone, call or walk in to an IRS office or volunteer site near you. 2011 irs form 8863 Free help with your tax return. 2011 irs form 8863   You can get free help preparing your return nationwide from IRS-certified volunteers. 2011 irs form 8863 The Volunteer Income Tax Assistance (VITA) program helps low-to-moderate income, elderly, people with disabilities, and limited English proficient taxpayers. 2011 irs form 8863 The Tax Counseling for the Elderly (TCE) program helps taxpayers age 60 and older with their tax returns. 2011 irs form 8863 Most VITA and TCE sites offer free electronic filing and all volunteers will let you know about credits and deductions you may be entitled to claim. 2011 irs form 8863 In addition, some VITA and TCE sites provide taxpayers the opportunity to prepare their own return with help from an IRS-certified volunteer. 2011 irs form 8863 To find the nearest VITA or TCE site, you can use the VITA Locator Tool on IRS. 2011 irs form 8863 gov, download the IRS2Go app, or call 1-800-906-9887. 2011 irs form 8863   As part of the TCE program, AARP offers the Tax-Aide counseling program. 2011 irs form 8863 To find the nearest AARP Tax-Aide site, visit AARP's website at www. 2011 irs form 8863 aarp. 2011 irs form 8863 org/money/taxaide or call 1-888-227-7669. 2011 irs form 8863 For more information on these programs, go to IRS. 2011 irs form 8863 gov and enter “VITA” in the search box. 2011 irs form 8863 Internet. 2011 irs form 8863    IRS. 2011 irs form 8863 gov and IRS2Go are ready when you are —24 hours a day, 7 days a week. 2011 irs form 8863 Download the free IRS2Go app from the iTunes app store or from Google Play. 2011 irs form 8863 Use it to check your refund status, order transcripts of your tax returns or tax account, watch the IRS YouTube channel, get IRS news as soon as it's released to the public, subscribe to filing season updates or daily tax tips, and follow the IRS Twitter news feed, @IRSnews, to get the latest federal tax news, including information about tax law changes and important IRS programs. 2011 irs form 8863 Check the status of your 2013 refund with the Where's My Refund? application on IRS. 2011 irs form 8863 gov or download the IRS2Go app and select the Refund Status option. 2011 irs form 8863 The IRS issues more than 9 out of 10 refunds in less than 21 days. 2011 irs form 8863 Using these applications, you can start checking on the status of your return within 24 hours after we receive your e-filed return or 4 weeks after you mail a paper return. 2011 irs form 8863 You will also be given a personalized refund date as soon as the IRS processes your tax return and approves your refund. 2011 irs form 8863 The IRS updates Where's My Refund? every 24 hours, usually overnight, so you only need to check once a day. 2011 irs form 8863 Use the Interactive Tax Assistant (ITA) to research your tax questions. 2011 irs form 8863 No need to wait on the phone or stand in line. 2011 irs form 8863 The ITA is available 24 hours a day, 7 days a week, and provides you with a variety of tax information related to general filing topics, deductions, credits, and income. 2011 irs form 8863 When you reach the response screen, you can print the entire interview and the final response for your records. 2011 irs form 8863 New subject areas are added on a regular basis. 2011 irs form 8863  Answers not provided through ITA may be found in Tax Trails, one of the Tax Topics on IRS. 2011 irs form 8863 gov which contain general individual and business tax information or by searching the IRS Tax Map, which includes an international subject index. 2011 irs form 8863 You can use the IRS Tax Map to search publications and instructions by topic or keyword. 2011 irs form 8863 The IRS Tax Map integrates forms and publications into one research tool and provides single-point access to tax law information by subject. 2011 irs form 8863 When the user searches the IRS Tax Map, they will be provided with links to related content in existing IRS publications, forms and instructions, questions and answers, and Tax Topics. 2011 irs form 8863 Coming this filing season, you can immediately view and print for free all 5 types of individual federal tax transcripts (tax returns, tax account, record of account, wage and income statement, and certification of non-filing) using Get Transcript. 2011 irs form 8863 You can also ask the IRS to mail a return or an account transcript to you. 2011 irs form 8863 Only the mail option is available by choosing the Tax Records option on the IRS2Go app by selecting Mail Transcript on IRS. 2011 irs form 8863 gov or by calling 1-800-908-9946. 2011 irs form 8863 Tax return and tax account transcripts are generally available for the current year and the past three years. 2011 irs form 8863 Determine if you are eligible for the EITC and estimate the amount of the credit with the Earned Income Tax Credit (EITC) Assistant. 2011 irs form 8863 Visit Understanding Your IRS Notice or Letter to get answers to questions about a notice or letter you received from the IRS. 2011 irs form 8863 If you received the First Time Homebuyer Credit, you can use the First Time Homebuyer Credit Account Look-up tool for information on your repayments and account balance. 2011 irs form 8863 Check the status of your amended return using Where's My Amended Return? Go to IRS. 2011 irs form 8863 gov and enter Where's My Amended Return? in the search box. 2011 irs form 8863 You can generally expect your amended return to be processed up to 12 weeks from the date we receive it. 2011 irs form 8863 It can take up to 3 weeks from the date you mailed it to show up in our system. 2011 irs form 8863 Make a payment using one of several safe and convenient electronic payment options available on IRS. 2011 irs form 8863 gov. 2011 irs form 8863 Select the Payment tab on the front page of IRS. 2011 irs form 8863 gov for more information. 2011 irs form 8863 Determine if you are eligible and apply for an online payment agreement, if you owe more tax than you can pay today. 2011 irs form 8863 Figure your income tax withholding with the IRS Withholding Calculator on IRS. 2011 irs form 8863 gov. 2011 irs form 8863 Use it if you've had too much or too little withheld, your personal situation has changed, you're starting a new job or you just want to see if you're having the right amount withheld. 2011 irs form 8863 Determine if you might be subject to the Alternative Minimum Tax by using the Alternative Minimum Tax Assistant on IRS. 2011 irs form 8863 gov. 2011 irs form 8863 Request an Electronic Filing PIN by going to IRS. 2011 irs form 8863 gov and entering Electronic Filing PIN in the search box. 2011 irs form 8863 Download forms, instructions and publications, including accessible versions for people with disabilities. 2011 irs form 8863 Locate the nearest Taxpayer Assistance Center (TAC) using the Office Locator tool on IRS. 2011 irs form 8863 gov, or choose the Contact Us option on the IRS2Go app and search Local Offices. 2011 irs form 8863 An employee can answer questions about your tax account or help you set up a payment plan. 2011 irs form 8863 Before you visit, check the Office Locator on IRS. 2011 irs form 8863 gov, or Local Offices under Contact Us on IRS2Go to confirm the address, phone number, days and hours of operation, and the services provided. 2011 irs form 8863 If you have a special need, such as a disability, you can request an appointment. 2011 irs form 8863 Call the local number listed in the Office Locator, or look in the phone book under United States Government, Internal Revenue Service. 2011 irs form 8863 Apply for an Employer Identification Number (EIN). 2011 irs form 8863 Go to IRS. 2011 irs form 8863 gov and enter Apply for an EIN in the search box. 2011 irs form 8863 Read the Internal Revenue Code, regulations, or other official guidance. 2011 irs form 8863 Read Internal Revenue Bulletins. 2011 irs form 8863 Sign up to receive local and national tax news and more by email. 2011 irs form 8863 Just click on “subscriptions” above the search box on IRS. 2011 irs form 8863 gov and choose from a variety of options. 2011 irs form 8863 Phone. 2011 irs form 8863    You can call the IRS, or you can carry it in your pocket with the IRS2Go app on your smart phone or tablet. 2011 irs form 8863 Download the free IRS2Go app from the iTunes app store or from Google Play. 2011 irs form 8863 Call to locate the nearest volunteer help site, 1-800-906-9887 or you can use the VITA Locator Tool on IRS. 2011 irs form 8863 gov, or download the IRS2Go app. 2011 irs form 8863 Low-to-moderate income, elderly, people with disabilities, and limited English proficient taxpayers can get free help with their tax return from the nationwide Volunteer Income Tax Assistance (VITA) program. 2011 irs form 8863 The Tax Counseling for the Elderly (TCE) program helps taxpayers age 60 and older with their tax returns. 2011 irs form 8863 Most VITA and TCE sites offer free electronic filing. 2011 irs form 8863 Some VITA and TCE sites provide IRS-certified volunteers who can help prepare your tax return. 2011 irs form 8863 Through the TCE program, AARP offers the Tax-Aide counseling program; call 1-888-227-7669 to find the nearest Tax-Aide location. 2011 irs form 8863 Call the automated Where's My Refund? information hotline to check the status of your 2013 refund 24 hours a day, 7 days a week at 1-800-829-1954. 2011 irs form 8863 If you e-file, you can start checking on the status of your return within 24 hours after the IRS receives your tax return or 4 weeks after you've mailed a paper return. 2011 irs form 8863 The IRS issues more than 9 out of 10 refunds in less than 21 days. 2011 irs form 8863 Where's My Refund? will give you a personalized refund date as soon as the IRS processes your tax return and approves your refund. 2011 irs form 8863 Before you call this automated hotline, have your 2013 tax return handy so you can enter your social security number, your filing status, and the exact whole dollar amount of your refund. 2011 irs form 8863 The IRS updates Where's My Refund? every 24 hours, usually overnight, so you only need to check once a day. 2011 irs form 8863 Note, the above information is for our automated hotline. 2011 irs form 8863 Our live phone and walk-in assistors can research the status of your refund only if it's been 21 days or more since you filed electronically or more than 6 weeks since you mailed your paper return. 2011 irs form 8863 Call the Amended Return Hotline, 1-866-464-2050, to check the status of your amended return. 2011 irs form 8863 You can generally expect your amended return to be processed up to 12 weeks from the date we receive it. 2011 irs form 8863 It can take up to 3 weeks from the date you mailed it to show up in our system. 2011 irs form 8863 Call 1-800-TAX-FORM (1-800-829-3676) to order current-year forms, instructions, publications, and prior-year forms and instructions (limited to 5 years). 2011 irs form 8863 You should receive your order within 10 business days. 2011 irs form 8863 Call TeleTax, 1-800-829-4477, to listen to pre-recorded messages covering general and business tax information. 2011 irs form 8863 If, between January and April 15, you still have questions about the Form 1040, 1040A, or 1040EZ (like filing requirements, dependents, credits, Schedule D, pensions and IRAs or self-employment taxes), call 1-800-829-1040. 2011 irs form 8863 Call using TTY/TDD equipment, 1-800-829-4059 to ask tax questions or order forms and publications. 2011 irs form 8863 The TTY/TDD telephone number is for people who are deaf, hard of hearing, or have a speech disability. 2011 irs form 8863 These individuals can also contact the IRS through relay services such as the Federal Relay Service. 2011 irs form 8863 Walk-in. 2011 irs form 8863   You can find a selection of forms, publications and services — in person. 2011 irs form 8863 Products. 2011 irs form 8863 You can walk in to some post offices, libraries, and IRS offices to pick up certain forms, instructions, and publications. 2011 irs form 8863 Some IRS offices, libraries, and city and county government offices have a collection of products available to photocopy from reproducible proofs. 2011 irs form 8863 Services. 2011 irs form 8863 You can walk in to your local TAC for face-to-face tax help. 2011 irs form 8863 An employee can answer questions about your tax account or help you set up a payment plan. 2011 irs form 8863 Before visiting, use the Office Locator tool on IRS. 2011 irs form 8863 gov, or choose the Contact Us option on the IRS2Go app and search Local Offices for days and hours of operation, and services provided. 2011 irs form 8863 Mail. 2011 irs form 8863   You can send your order for forms, instructions, and publications to the address below. 2011 irs form 8863 You should receive a response within 10 business days after your request is received. 2011 irs form 8863 Internal Revenue Service 1201 N. 2011 irs form 8863 Mitsubishi Motorway Bloomington, IL 61705-6613    The Taxpayer Advocate Service Is Here to Help You. 2011 irs form 8863 The Taxpayer Advocate Service (TAS) is your voice at the IRS. 2011 irs form 8863 Our job is to ensure that every taxpayer is treated fairly and that you know and understand your rights. 2011 irs form 8863   What can TAS do for you? We can offer you free help with IRS problems that you can't resolve on your own. 2011 irs form 8863 We know this process can be confusing, but the worst thing you can do is nothing at all! TAS can help if you can't resolve your tax problem and: Your problem is causing financial difficulties for you, your family, or your business. 2011 irs form 8863 You face (or your business is facing) an immediate threat of adverse action. 2011 irs form 8863 You've tried repeatedly to contact the IRS but no one has responded, or the IRS hasn't responded by the date promised. 2011 irs form 8863   If you qualify for our help, you'll be assigned to one advocate who'll be with you at every turn and will do everything possible to resolve your problem. 2011 irs form 8863 Here's why we can help: TAS is an independent organization within the IRS. 2011 irs form 8863 Our advocates know how to work with the IRS. 2011 irs form 8863 Our services are free and tailored to meet your needs. 2011 irs form 8863 We have offices in every state, the District of Columbia, and Puerto Rico. 2011 irs form 8863   How can you reach us? If you think TAS can help you, call your local advocate, whose number is in your local directory and at Taxpayer Advocate, or call us toll-free at 1-877-777-4778. 2011 irs form 8863   How else does TAS help taxpayers?  TAS also works to resolve large-scale, systemic problems that affect many taxpayers. 2011 irs form 8863 If you know of one of these broad issues, please report it to us through our Systemic Advocacy Management System. 2011 irs form 8863 Low Income Taxpayer Clinics Low Income