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 Tax Forms Federal

File A 1040ezFile Free State Taxes OnlyFile Free State TaxesHow To File Amended Federal Tax ReturnFree State Tax ReturnsTaxslayer Free For MilitaryHow To Fill Out A 1040x Tax Amendment Form2011 Tax Forms 1040 EzDo State Taxes For Free1040 VHr Block OnlineEz Form OnlineFreefile ComFile Amended Tax Return 20111040ez Form PrintableEz Form 20112013 Tax Forms 1040ezTax Form 1040xHow Do I Amend My 2012 Tax ReturnE File State Taxes FreeHow To File Tax Amendment OnlineCan I File 1040nr OnlineFile 2009 Tax Return2010 Tax ReturnsFiling Taxes For 2012Can I Still File My 2011 Tax ReturnFree H&r Block TaxesFree 1040xAmended Tax Return 2012Free File State Tax Return1040 Ez 2012Irs Com GovFiling 2011 Taxes LateIrs Tax Forms 2011 DownloadForm1040ezH&r Block Free State Tax FilingTax Return FormAmend A ReturnForm 1040-xFile Taxes Online Free

2011 Tax Forms Federal

2011 tax forms federal 1. 2011 tax forms federal   Investment Income Table of Contents Topics - This chapter discusses: Useful Items - You may want to see: General InformationSSN for joint account. 2011 tax forms federal Custodian account for your child. 2011 tax forms federal Penalty for failure to supply SSN. 2011 tax forms federal Certification. 2011 tax forms federal Underreported interest and dividends. 2011 tax forms federal How to stop backup withholding due to underreporting. 2011 tax forms federal How to stop backup withholding due to an incorrect identification number. 2011 tax forms federal Reporting backup withholding. 2011 tax forms federal Nonresident aliens. 2011 tax forms federal Penalties. 2011 tax forms federal Savings account with parent as trustee. 2011 tax forms federal Interest IncomeInterest not reported on Form 1099-INT. 2011 tax forms federal Nominees. 2011 tax forms federal Incorrect amount. 2011 tax forms federal Information reporting requirement. 2011 tax forms federal Taxable Interest — General Below-Market Loans U. 2011 tax forms federal S. 2011 tax forms federal Savings Bonds U. 2011 tax forms federal S. 2011 tax forms federal Treasury Bills, Notes, and Bonds Bonds Sold Between Interest Dates Insurance State or Local Government Obligations Discount on Debt InstrumentsOriginal Issue Discount (OID) Market Discount Bonds Discount on Short-Term Obligations Election To Report All Interest as OID When To Report Interest IncomeConstructive receipt. 2011 tax forms federal How To Report Interest IncomeSchedule B (Form 1040A or 1040). 2011 tax forms federal Worksheet for savings bonds distributed from a retirement or profit-sharing plan. 2011 tax forms federal File Form 1099-INT with the IRS. 2011 tax forms federal Dividends and Other DistributionsDividends not reported on Form 1099-DIV. 2011 tax forms federal Nominees. 2011 tax forms federal Ordinary Dividends Capital Gain Distributions Nondividend Distributions Liquidating Distributions Distributions of Stock and Stock Rights Other Distributions How To Report Dividend IncomeElection. 2011 tax forms federal Independent contractor. 2011 tax forms federal Investment interest deducted. 2011 tax forms federal Exception 1. 2011 tax forms federal Exception 2. 2011 tax forms federal Undistributed capital gains. 2011 tax forms federal File Form 1099-DIV with the IRS. 2011 tax forms federal Stripped Preferred Stock REMICs, FASITs, and Other CDOsREMICs Collateralized Debt Obligations (CDOs) FASITs S CorporationsLimit on losses and deductions. 2011 tax forms federal Passive activity losses. 2011 tax forms federal Form 8582. 2011 tax forms federal Investment ClubsInvestments in name of member. 2011 tax forms federal Tax Treatment of the Club Topics - This chapter discusses: Interest Income , Discount on Debt Instruments , When To Report Interest Income , How To Report Interest Income , Dividends and Other Distributions , How To Report Dividend Income , Stripped Preferred Stock , Real estate mortgage investment conduits (REMICs), financial asset securitization investment trusts (FASITs), and other collateralized debt obligations (CDOs) , S Corporations , and Investment Clubs . 2011 tax forms federal Useful Items - You may want to see: Publication 525 Taxable and Nontaxable Income 537 Installment Sales 590 Individual Retirement Arrangements (IRAs) 925 Passive Activity and At-Risk Rules 1212 Guide to Original Issue Discount (OID) Instruments Form (and Instructions) Schedule B (Form 1040A or 1040) Interest and Ordinary Dividends Schedule D (Form 1040) Capital Gains and Losses 1040 U. 2011 tax forms federal S. 2011 tax forms federal Individual Income Tax Return 1040A U. 2011 tax forms federal S. 2011 tax forms federal Individual Income Tax Return 1040EZ Income Tax Return for Single and Joint Filers With No Dependents 1099 General Instructions for Certain Information Returns 2439 Notice to Shareholder of Undistributed Long-Term Capital Gains 3115 Application for Change in Accounting Method 6251 Alternative Minimum Tax — Individuals 8582 Passive Activity Loss Limitations 8615 Tax for Certain Children Who Have Unearned Income 8814 Parents' Election To Report Child's Interest and Dividends 8815 Exclusion of Interest From Series EE and I U. 2011 tax forms federal S. 2011 tax forms federal Savings Bonds Issued After 1989 8818 Optional Form To Record Redemption of Series EE and I U. 2011 tax forms federal S. 2011 tax forms federal Savings Bonds Issued After 1989 8824 Like-Kind Exchanges 8949 Sales and Other Dispositions of Capital Assets 8960 Net Investment Income Tax—Individuals, Estates, and Trusts See chapter 5, How To Get Tax Help , for information about getting these publications and forms. 2011 tax forms federal General Information A few items of general interest are covered here. 2011 tax forms federal Recordkeeping. 2011 tax forms federal You should keep a list showing sources and investment income amounts you receive during the year. 2011 tax forms federal Also keep the forms you receive showing your investment income (Forms 1099-INT, Interest Income, and 1099-DIV, Dividends and Distributions, for example) as an important part of your records. 2011 tax forms federal Net investment income tax (NIIT). 2011 tax forms federal   Beginning in 2013, you may be subject to the NIIT. 2011 tax forms federal The NIIT is a 3. 2011 tax forms federal 8% tax on the lesser of your net investment income or the amount of your modified adjusted gross income (MAGI) that is over a threshold amount based on your filing status. 2011 tax forms federal    Filing Status Threshold Amount Married filing jointly $250,000 Married filing separately $125,000 Single $200,000 Head of household (with qualifying person) $200,000 Qualifying Widow(er) with dependent child $250,000    For more information, see Form 8960 and Instructions for Form 8960. 2011 tax forms federal Tax on unearned income of certain children. 2011 tax forms federal   Part of a child's 2013 unearned income may be taxed at the parent's tax rate. 2011 tax forms federal This may happen if all of the following are true. 2011 tax forms federal The child had more than $2,000 of unearned income. 2011 tax forms federal The child is required to file a tax return. 2011 tax forms federal The child was: Under age 18 at the end of 2013, Age 18 at the end of 2013 and did not have earned income that was more than half of the child's support, or A full-time student over age 18 and under age 24 at the end of 2013 and did not have earned income that was more than half of the child's support. 2011 tax forms federal At least one of the child's parents was alive at the end of 2013. 2011 tax forms federal The child does not file a joint return for 2013. 2011 tax forms federal A child born on January 1, 1996, is considered to be age 18 at the end of 2013; a child born on January 1, 1995, is considered to be age 19 at the end of 2013; a child born on January 1, 1990, is considered to be age 24 at the end of 2013. 2011 tax forms federal   If all of these statements are true, Form 8615 must be completed and attached to the child's tax return. 2011 tax forms federal If any of these statements is not true, Form 8615 is not required and the child's income is taxed at his or her own tax rate. 2011 tax forms federal    However, the parent can choose to include the child's interest and dividends on the parent's return if certain requirements are met. 2011 tax forms federal Use Form 8814 for this purpose. 2011 tax forms federal   For more information about the tax on unearned income of children and the parents' election, see Publication 929, Tax Rules for Children and Dependents. 2011 tax forms federal Beneficiary of an estate or trust. 2011 tax forms federal   Interest, dividends, and other investment income you receive as a beneficiary of an estate or trust is generally taxable income. 2011 tax forms federal You should receive a Schedule K-1 (Form 1041), Beneficiary's Share of Income, Deductions, Credits, etc. 2011 tax forms federal , from the fiduciary. 2011 tax forms federal Your copy of Schedule K-1 (Form 1041) and its instructions will tell you where to report the income on your Form 1040. 2011 tax forms federal Social security number (SSN). 2011 tax forms federal   You must give your name and SSN or individual tax identification number (ITIN) to any person required by federal tax law to make a return, statement, or other document that relates to you. 2011 tax forms federal This includes payers of interest and dividends. 2011 tax forms federal If you do not give your SSN or ITIN to the payer of interest, you may have to pay a penalty. 2011 tax forms federal SSN for joint account. 2011 tax forms federal   If the funds in a joint account belong to one person, list that person's name first on the account and give that person's SSN to the payer. 2011 tax forms federal (For information on who owns the funds in a joint account, see Joint accounts , later. 2011 tax forms federal ) If the joint account contains combined funds, give the SSN of the person whose name is listed first on the account. 2011 tax forms federal This is because only one name and SSN can be shown on Form 1099. 2011 tax forms federal   These rules apply both to joint ownership by a married couple and to joint ownership by other individuals. 2011 tax forms federal For example, if you open a joint savings account with your child using funds belonging to the child, list the child's name first on the account and give the child's SSN. 2011 tax forms federal Custodian account for your child. 2011 tax forms federal   If your child is the actual owner of an account that is recorded in your name as custodian for the child, give the child's SSN to the payer. 2011 tax forms federal For example, you must give your child's SSN to the payer of dividends on stock owned by your child, even though the dividends are paid to you as custodian. 2011 tax forms federal Penalty for failure to supply SSN. 2011 tax forms federal   You will be subject to a penalty if, when required, you fail to: Include your SSN on any return, statement, or other document, Give your SSN to another person who must include it on any return, statement, or other document, or Include the SSN of another person on any return, statement, or other document. 2011 tax forms federal The penalty is $50 for each failure up to a maximum penalty of $100,000 for any calendar year. 2011 tax forms federal   You will not be subject to this penalty if you can show that your failure to provide the SSN was due to reasonable cause and not to willful neglect. 2011 tax forms federal   If you fail to supply an SSN, you may also be subject to backup withholding. 2011 tax forms federal Backup withholding. 2011 tax forms federal   Your investment income is generally not subject to regular withholding. 2011 tax forms federal However, it may be subject to backup withholding to ensure that income tax is collected on the income. 2011 tax forms federal Under backup withholding, the bank, broker, or other payer of interest, original issue discount (OID), dividends, cash patronage dividends, or royalties must withhold, as income tax, on the amount you are paid, applying the appropriate withholding rate. 2011 tax forms federal   Backup withholding applies if: You do not give the payer your identification number (either a social security number or an employer identification number) in the required manner, The IRS notifies the payer that you gave an incorrect identification number, The IRS notifies the payer that you are subject to backup withholding on interest or dividends because you have underreported interest or dividends on your income tax return, or You are required, but fail, to certify that you are not subject to backup withholding for the reason described in (3). 2011 tax forms federal Certification. 2011 tax forms federal   For new accounts paying interest or dividends, you must certify under penalties of perjury that your SSN is correct and that you are not subject to backup withholding. 2011 tax forms federal Your payer will give you a Form W-9, Request for Taxpayer Identification Number and Certification, or similar form, to make this certification. 2011 tax forms federal If you fail to make this certification, backup withholding may begin immediately on your new account or investment. 2011 tax forms federal Underreported interest and dividends. 2011 tax forms federal   You will be considered to have underreported your interest and dividends if the IRS has determined for a tax year that: You failed to include any part of a reportable interest or dividend payment required to be shown on your return, or You were required to file a return and to include a reportable interest or dividend payment on that return, but you failed to file the return. 2011 tax forms federal How to stop backup withholding due to underreporting. 2011 tax forms federal   If you have been notified that you underreported interest or dividends, you can request a determination from the IRS to prevent backup withholding from starting or to stop backup withholding once it has begun. 2011 tax forms federal You must show that at least one of the following situations applies. 2011 tax forms federal No underreporting occurred. 2011 tax forms federal You have a bona fide dispute with the IRS about whether underreporting occurred. 2011 tax forms federal Backup withholding will cause or is causing an undue hardship, and it is unlikely that you will underreport interest and dividends in the future. 2011 tax forms federal You have corrected the underreporting by filing a return if you did not previously file one and by paying all taxes, penalties, and interest due for any underreported interest or dividend payments. 2011 tax forms federal   If the IRS determines that backup withholding should stop, it will provide you with a certification and will notify the payers who were sent notices earlier. 2011 tax forms federal How to stop backup withholding due to an incorrect identification number. 2011 tax forms federal   If you have been notified by a payer that you are subject to backup withholding because you have provided an incorrect SSN or employer identification number, you can stop it by following the instructions the payer gives you. 2011 tax forms federal Reporting backup withholding. 2011 tax forms federal   If backup withholding is deducted from your interest or dividend income or other reportable payment, the bank or other business must give you an information return for the year (for example, a Form 1099-INT) indicating the amount withheld. 2011 tax forms federal The information return will show any backup withholding as “Federal income tax withheld. 2011 tax forms federal ” Nonresident aliens. 2011 tax forms federal    Generally, payments made to nonresident aliens are not subject to backup withholding. 2011 tax forms federal You can use Form W-8BEN, Certificate of Foreign Status of Beneficial Owner for United States Tax Withholding, to certify exempt status. 2011 tax forms federal However, this does not exempt you from the 30% (or lower treaty) withholding rate that may apply to your investment income. 2011 tax forms federal For information on the 30% rate, see Publication 519, U. 2011 tax forms federal S. 2011 tax forms federal Tax Guide for Aliens. 2011 tax forms federal Penalties. 2011 tax forms federal   There are civil and criminal penalties for giving false information to avoid backup withholding. 2011 tax forms federal The civil penalty is $500. 2011 tax forms federal The criminal penalty, upon conviction, is a fine of up to $1,000, or imprisonment of up to 1 year, or both. 2011 tax forms federal Where to report investment income. 2011 tax forms federal   Table 1-1 gives an overview of the forms and schedules to use to report some common types of investment income. 2011 tax forms federal But see the rest of this publication for detailed information about reporting investment income. 2011 tax forms federal Joint accounts. 2011 tax forms federal   If two or more persons hold property (such as a savings account, bond, or stock) as joint tenants, tenants by the entirety, or tenants in common, each person's share of any interest or dividends from the property is determined by local law. 2011 tax forms federal Community property states. 2011 tax forms federal   If you are married and receive a distribution that is community income, one-half of the distribution is generally considered to be received by each spouse. 2011 tax forms federal If you file separate returns, you must each report one-half of any taxable distribution. 2011 tax forms federal See Publication 555, Community Property, for more information on community income. 2011 tax forms federal   If the distribution is not considered community property and you and your spouse file separate returns, each of you must report your separate taxable distributions. 2011 tax forms federal Example. 2011 tax forms federal You and your spouse have a joint money market account. 2011 tax forms federal Under state law, half the income from the account belongs to you, and half belongs to your spouse. 2011 tax forms federal If you file separate returns, you each report half the income. 2011 tax forms federal Income from property given to a child. 2011 tax forms federal   Property you give as a parent to your child under the Model Gifts of Securities to Minors Act, the Uniform Gifts to Minors Act, or any similar law becomes the child's property. 2011 tax forms federal   Income from the property is taxable to the child, except that any part used to satisfy a legal obligation to support the child is taxable to the parent or guardian having that legal obligation. 2011 tax forms federal Savings account with parent as trustee. 2011 tax forms federal   Interest income from a savings account opened for a minor child, but placed in the name and subject to the order of the parents as trustees, is taxable to the child if, under the law of the state in which the child resides, both of the following are true. 2011 tax forms federal The savings account legally belongs to the child. 2011 tax forms federal The parents are not legally permitted to use any of the funds to support the child. 2011 tax forms federal Table 1-1. 2011 tax forms federal Where To Report Common Types of Investment Income (For detailed information about reporting investment income, see the rest of this publication, especially How To Report Interest Income and How To Report Dividend Income in chapter 1. 2011 tax forms federal ) Type of Income If you file Form 1040, report on . 2011 tax forms federal . 2011 tax forms federal . 2011 tax forms federal If you can file Form 1040A, report on . 2011 tax forms federal . 2011 tax forms federal . 2011 tax forms federal If you can file Form 1040EZ, report on . 2011 tax forms federal . 2011 tax forms federal . 2011 tax forms federal Tax-exempt interest (Form 1099-INT, box 8) Line 8b Line 8b Space to the left of line 2 (enter “TEI” and the amount) Taxable interest that totals $1,500 or less Line 8a (You may need to file Schedule B as well. 2011 tax forms federal ) Line 8a (You may need to file Schedule B as well. 2011 tax forms federal ) Line 2 Taxable interest that totals more than $1,500 Line 8a; also use Schedule B, line 1 Line 8a; also use Schedule B, line 1   Savings bond interest you will exclude because of higher education expenses Schedule B; also use Form 8815 Schedule B; also use Form 8815   Ordinary dividends that total $1,500 or less Line 9a (You may need to file Schedule B as well. 2011 tax forms federal ) Line 9a (You may need to file Schedule B as well. 2011 tax forms federal )   Ordinary dividends that total more than $1,500 Line 9a; also use Schedule B, line 5 Line 9a; also use Schedule B, line 5   Qualified dividends (if you do not have to file Schedule D) Line 9b; also use the Qualified Dividends and Capital Gain Tax Worksheet, line 2 Line 9b; also use the Qualified Dividends and Capital Gain Tax Worksheet, line 2   Qualified dividends (if you have to file Schedule D) Line 9b; also use the Qualified Dividends and Capital Gain Tax Worksheet or the Schedule D Tax Worksheet, line 2 You cannot use Form 1040A    You cannot use Form 1040EZ Capital gain distributions (if you do not have to file Schedule D) Line 13; also use the Qualified Dividends and Capital Gain Tax Worksheet, line 3 Line 10; also use the Qualified Dividends and Capital Gain Tax Worksheet, line 3   Capital gain distributions (if you have to file Schedule D) Schedule D, line 13; also use the Qualified Dividends and Capital Gain Tax Worksheet or the Schedule D Tax Worksheet     Section 1250, 1202, or collectibles gain (Form 1099-DIV, box 2b, 2c, or 2d) Form 8949 and Schedule D     Nondividend distributions (Form 1099-DIV, box 3) Generally not reported*     Undistributed capital gains (Form 2439, boxes 1a - 1d) Schedule D     Gain or loss from sales of stocks or bonds Line 13; also use Form 8949, Schedule D, and the Qualified Dividends and Capital Gain Tax Worksheet or the Schedule D Tax Worksheet You cannot use Form 1040A   Gain or loss from exchanges of like-kind investment property Line 13; also use Schedule D, Form 8824, and the Qualified Dividends and Capital Gain Tax Worksheet or the Schedule D Tax Worksheet     *Report any amounts in excess of your basis in your mutual fund shares on Form 8949. 2011 tax forms federal Use Part II if you held the shares more than 1 year. 2011 tax forms federal Use Part I if you held your mutual fund shares 1 year or less. 2011 tax forms federal For details on Form 8949, see Reporting Capital Gains and Losses in chapter 4, and the Instructions for Form 8949. 2011 tax forms federal Accuracy-related penalty. 2011 tax forms federal   An accuracy-related penalty of 20% can be charged for underpayments of tax due to negligence or disregard of rules or regulations or substantial understatement of tax. 2011 tax forms federal For information on the penalty and any interest that applies, see Penalties in chapter 2. 2011 tax forms federal Interest Income This section discusses the tax treatment of different types of interest income. 2011 tax forms federal In general, any interest that you receive or that is credited to your account and can be withdrawn is taxable income. 2011 tax forms federal (It does not have to be entered in your passbook. 2011 tax forms federal ) Exceptions to this rule are discussed later. 2011 tax forms federal Form 1099-INT. 2011 tax forms federal   Interest income is generally reported to you on Form 1099-INT, or a similar statement, by banks, savings and loans, and other payers of interest. 2011 tax forms federal This form shows you the interest you received during the year. 2011 tax forms federal Keep this form for your records. 2011 tax forms federal You do not have to attach it to your tax return. 2011 tax forms federal   Report on your tax return the total interest income you receive for the tax year. 2011 tax forms federal Interest not reported on Form 1099-INT. 2011 tax forms federal   Even if you do not receive Form 1099-INT, you must still report all of your interest income. 2011 tax forms federal For example, you may receive distributive shares of interest from partnerships or S corporations. 2011 tax forms federal This interest is reported to you on Schedule K-1 (Form 1065), Partner's Share of Income, Deductions, Credits, etc. 2011 tax forms federal , and Schedule K-1 (Form 1120S), Shareholder's Share of Income, Deductions, Credits, etc. 2011 tax forms federal Nominees. 2011 tax forms federal   Generally, if someone receives interest as a nominee for you, that person must give you a Form 1099-INT showing the interest received on your behalf. 2011 tax forms federal   If you receive a Form 1099-INT that includes amounts belonging to another person, see the discussion on Nominee distributions , later, under How To Report Interest Income. 2011 tax forms federal Incorrect amount. 2011 tax forms federal   If you receive a Form 1099-INT that shows an incorrect amount (or other incorrect information), you should ask the issuer for a corrected form. 2011 tax forms federal The new Form 1099-INT you receive will be marked “Corrected. 2011 tax forms federal ” Form 1099-OID. 2011 tax forms federal   Reportable interest income also may be shown on Form 1099-OID, Original Issue Discount. 2011 tax forms federal For more information about amounts shown on this form, see Original Issue Discount (OID) , later in this chapter. 2011 tax forms federal Exempt-interest dividends. 2011 tax forms federal   Exempt-interest dividends you receive from a mutual fund or other regulated investment company, including those received from a qualified fund of funds in any tax year beginning after December 22, 2010, are not included in your taxable income. 2011 tax forms federal (However, see Information reporting requirement , next. 2011 tax forms federal ) Exempt-interest dividends should be shown in box 10 of Form 1099-DIV. 2011 tax forms federal You do not reduce your basis for distributions that are exempt-interest dividends. 2011 tax forms federal Information reporting requirement. 2011 tax forms federal   Although exempt-interest dividends are not taxable, you must show them on your tax return if you have to file. 2011 tax forms federal This is an information reporting requirement and does not change the exempt-interest dividends into taxable income. 2011 tax forms federal See How To Report Interest Income , later. 2011 tax forms federal Note. 2011 tax forms federal Exempt-interest dividends paid from specified private activity bonds may be subject to the alternative minimum tax. 2011 tax forms federal The exempt-interest dividends subject to the alternative minimum tax are shown in box 11 of Form 1099-DIV. 2011 tax forms federal See Form 6251 and its instructions for more information about this tax. 2011 tax forms federal Private activity bonds are discussed later under State or Local Government Obligations. 2011 tax forms federal Interest on VA dividends. 2011 tax forms federal   Interest on insurance dividends left on deposit with the Department of Veterans Affairs (VA) is not taxable. 2011 tax forms federal This includes interest paid on dividends on converted United States Government Life Insurance policies and on National Service Life Insurance policies. 2011 tax forms federal Individual retirement arrangements (IRAs). 2011 tax forms federal   Interest on a Roth IRA generally is not taxable. 2011 tax forms federal Interest on a traditional IRA is tax deferred. 2011 tax forms federal You generally do not include it in your income until you make withdrawals from the IRA. 2011 tax forms federal See Publication 590 for more information. 2011 tax forms federal Taxable Interest — General Taxable interest includes interest you receive from bank accounts, loans you make to others, and other sources. 2011 tax forms federal The following are some sources of taxable interest. 2011 tax forms federal Dividends that are actually interest. 2011 tax forms federal   Certain distributions commonly called dividends are actually interest. 2011 tax forms federal You must report as interest so-called “dividends” on deposits or on share accounts in: Cooperative banks, Credit unions, Domestic building and loan associations, Domestic savings and loan associations, Federal savings and loan associations, and Mutual savings banks. 2011 tax forms federal  The “dividends” will be shown as interest income on Form 1099-INT. 2011 tax forms federal Money market funds. 2011 tax forms federal   Money market funds are offered by nonbank financial institutions such as mutual funds and stock brokerage houses, and pay dividends. 2011 tax forms federal Generally, amounts you receive from money market funds should be reported as dividends, not as interest. 2011 tax forms federal Certificates of deposit and other deferred interest accounts. 2011 tax forms federal   If you open any of these accounts, interest may be paid at fixed intervals of 1 year or less during the term of the account. 2011 tax forms federal You generally must include this interest in your income when you actually receive it or are entitled to receive it without paying a substantial penalty. 2011 tax forms federal The same is true for accounts that mature in 1 year or less and pay interest in a single payment at maturity. 2011 tax forms federal If interest is deferred for more than 1 year, see Original Issue Discount (OID) , later. 2011 tax forms federal Interest subject to penalty for early withdrawal. 2011 tax forms federal   If you withdraw funds from a deferred interest account before maturity, you may have to pay a penalty. 2011 tax forms federal You must report the total amount of interest paid or credited to your account during the year, without subtracting the penalty. 2011 tax forms federal See Penalty on early withdrawal of savings under How To Report Interest Income, later, for more information on how to report the interest and deduct the penalty. 2011 tax forms federal Money borrowed to invest in certificate of deposit. 2011 tax forms federal   The interest you pay on money borrowed from a bank or savings institution to meet the minimum deposit required for a certificate of deposit from the institution and the interest you earn on the certificate are two separate items. 2011 tax forms federal You must report the total interest you earn on the certificate in your income. 2011 tax forms federal If you itemize deductions, you can deduct the interest you pay as investment interest, up to the amount of your net investment income. 2011 tax forms federal See Interest Expenses in chapter 3. 2011 tax forms federal Example. 2011 tax forms federal You deposited $5,000 with a bank and borrowed $5,000 from the bank to make up the $10,000 minimum deposit required to buy a 6-month certificate of deposit. 2011 tax forms federal The certificate earned $575 at maturity in 2013, but you received only $265, which represented the $575 you earned minus $310 interest charged on your $5,000 loan. 2011 tax forms federal The bank gives you a Form 1099-INT for 2013 showing the $575 interest you earned. 2011 tax forms federal The bank also gives you a statement showing that you paid $310 interest for 2013. 2011 tax forms federal You must include the $575 in your income. 2011 tax forms federal If you itemize your deductions on Schedule A (Form 1040), Itemized Deductions, you can deduct $310, subject to the net investment income limit. 2011 tax forms federal Gift for opening account. 2011 tax forms federal   If you receive noncash gifts or services for making deposits or for opening an account in a savings institution, you may have to report the value as interest. 2011 tax forms federal   For deposits of less than $5,000, gifts or services valued at more than $10 must be reported as interest. 2011 tax forms federal For deposits of $5,000 or more, gifts or services valued at more than $20 must be reported as interest. 2011 tax forms federal The value is determined by the cost to the financial institution. 2011 tax forms federal Example. 2011 tax forms federal You open a savings account at your local bank and deposit $800. 2011 tax forms federal The account earns $20 interest. 2011 tax forms federal You also receive a $15 calculator. 2011 tax forms federal If no other interest is credited to your account during the year, the Form 1099-INT you receive will show $35 interest for the year. 2011 tax forms federal You must report $35 interest income on your tax return. 2011 tax forms federal Interest on insurance dividends. 2011 tax forms federal   Interest on insurance dividends left on deposit with an insurance company that can be withdrawn annually is taxable to you in the year it is credited to your account. 2011 tax forms federal However, if you can withdraw it only on the anniversary date of the policy (or other specified date), the interest is taxable in the year that date occurs. 2011 tax forms federal Prepaid insurance premiums. 2011 tax forms federal   Any increase in the value of prepaid insurance premiums, advance premiums, or premium deposit funds is interest if it is applied to the payment of premiums due on insurance policies or made available for you to withdraw. 2011 tax forms federal U. 2011 tax forms federal S. 2011 tax forms federal obligations. 2011 tax forms federal   Interest on U. 2011 tax forms federal S. 2011 tax forms federal obligations, such as U. 2011 tax forms federal S. 2011 tax forms federal Treasury bills, notes, and bonds, issued by any agency or instrumentality of the United States is taxable for federal income tax purposes. 2011 tax forms federal Interest on tax refunds. 2011 tax forms federal   Interest you receive on tax refunds is taxable income. 2011 tax forms federal Interest on condemnation award. 2011 tax forms federal   If the condemning authority pays you interest to compensate you for a delay in payment of an award, the interest is taxable. 2011 tax forms federal Installment sale payments. 2011 tax forms federal   If a contract for the sale or exchange of property provides for deferred payments, it also usually provides for interest payable with the deferred payments. 2011 tax forms federal That interest is taxable when you receive it. 2011 tax forms federal If little or no interest is provided for in a deferred payment contract, part of each payment may be treated as interest. 2011 tax forms federal See Unstated Interest and Original Issue Discount (OID) in Publication 537. 2011 tax forms federal Interest on annuity contract. 2011 tax forms federal   Accumulated interest on an annuity contract you sell before its maturity date is taxable. 2011 tax forms federal Usurious interest. 2011 tax forms federal   Usurious interest is interest charged at an illegal rate. 2011 tax forms federal This is taxable as interest unless state law automatically changes it to a payment on the principal. 2011 tax forms federal Interest income on frozen deposits. 2011 tax forms federal   Exclude from your gross income interest on frozen deposits. 2011 tax forms federal A deposit is frozen if, at the end of the year, you cannot withdraw any part of the deposit because: The financial institution is bankrupt or insolvent, or The state in which the institution is located has placed limits on withdrawals because other financial institutions in the state are bankrupt or insolvent. 2011 tax forms federal   The amount of interest you must exclude is the interest that was credited on the frozen deposits minus the sum of: The net amount you withdrew from these deposits during the year, and The amount you could have withdrawn as of the end of the year (not reduced by any penalty for premature withdrawals of a time deposit). 2011 tax forms federal If you receive a Form 1099-INT for interest income on deposits that were frozen at the end of 2013, see Frozen deposits under How To Report Interest Income for information about reporting this interest income exclusion on your tax return. 2011 tax forms federal   The interest you exclude is treated as credited to your account in the following year. 2011 tax forms federal You must include it in income in the year you can withdraw it. 2011 tax forms federal Example. 2011 tax forms federal $100 of interest was credited on your frozen deposit during the year. 2011 tax forms federal You withdrew $80 but could not withdraw any more as of the end of the year. 2011 tax forms federal You must include $80 in your income and exclude $20 from your income for the year. 2011 tax forms federal You must include the $20 in your income for the year you can withdraw it. 2011 tax forms federal Bonds traded flat. 2011 tax forms federal    If you buy a bond at a discount when interest has been defaulted or when the interest has accrued but has not been paid, the transaction is described as trading a bond flat. 2011 tax forms federal The defaulted or unpaid interest is not income and is not taxable as interest if paid later. 2011 tax forms federal When you receive a payment of that interest, it is a return of capital that reduces the remaining cost basis of your bond. 2011 tax forms federal Interest that accrues after the date of purchase, however, is taxable interest income for the year received or accrued. 2011 tax forms federal See Bonds Sold Between Interest Dates , later in this chapter. 2011 tax forms federal Below-Market Loans If you make a below-market gift or demand loan, you must report as interest income any forgone interest (defined later) from that loan. 2011 tax forms federal The below-market loan rules and exceptions are described in this section. 2011 tax forms federal For more information, see section 7872 of the Internal Revenue Code and its regulations. 2011 tax forms federal If you receive a below-market loan, you may be able to deduct the forgone interest as well as any interest you actually paid, but not if it is personal interest. 2011 tax forms federal Loans subject to the rules. 2011 tax forms federal   The rules for below-market loans apply to: Gift loans, Pay-related loans, Corporation-shareholder loans, Tax avoidance loans, and Certain loans made to qualified continuing care facilities under a continuing care contract. 2011 tax forms federal A pay-related loan is any below-market loan between an employer and an employee or between an independent contractor and a person for whom the contractor provides services. 2011 tax forms federal A tax avoidance loan is any below-market loan where the avoidance of federal tax is one of the main purposes of the interest arrangement. 2011 tax forms federal Forgone interest. 2011 tax forms federal   For any period, forgone interest is: The amount of interest that would be payable for that period if interest accrued on the loan at the applicable federal rate and was payable annually on December 31, minus Any interest actually payable on the loan for the period. 2011 tax forms federal Applicable federal rate. 2011 tax forms federal   Applicable federal rates are published by the IRS each month in the Internal Revenue Bulletin. 2011 tax forms federal Some IRS offices have these bulletins available for research. 2011 tax forms federal See chapter 5, How To Get Tax Help , for other ways to get this information. 2011 tax forms federal Rules for below-market loans. 2011 tax forms federal   The rules that apply to a below-market loan depend on whether the loan is a gift loan, demand loan, or term loan. 2011 tax forms federal Gift and demand loans. 2011 tax forms federal   A gift loan is any below-market loan where the forgone interest is in the nature of a gift. 2011 tax forms federal   A demand loan is a loan payable in full at any time upon demand by the lender. 2011 tax forms federal A demand loan is a below-market loan if no interest is charged or if interest is charged at a rate below the applicable federal rate. 2011 tax forms federal   A demand loan or gift loan that is a below-market loan is generally treated as an arm's-length transaction in which the lender is treated as having made: A loan to the borrower in exchange for a note that requires the payment of interest at the applicable federal rate, and An additional payment to the borrower in an amount equal to the forgone interest. 2011 tax forms federal The borrower is generally treated as transferring the additional payment back to the lender as interest. 2011 tax forms federal The lender must report that amount as interest income. 2011 tax forms federal   The lender's additional payment to the borrower is treated as a gift, dividend, contribution to capital, pay for services, or other payment, depending on the substance of the transaction. 2011 tax forms federal The borrower may have to report this payment as taxable income, depending on its classification. 2011 tax forms federal These transfers are considered to occur annually, generally on December 31. 2011 tax forms federal Term loans. 2011 tax forms federal   A term loan is any loan that is not a demand loan. 2011 tax forms federal A term loan is a below-market loan if the amount of the loan is more than the present value of all payments due under the loan. 2011 tax forms federal   A lender who makes a below-market term loan other than a gift loan is treated as transferring an additional lump-sum cash payment to the borrower (as a dividend, contribution to capital, etc. 2011 tax forms federal ) on the date the loan is made. 2011 tax forms federal The amount of this payment is the amount of the loan minus the present value, at the applicable federal rate, of all payments due under the loan. 2011 tax forms federal An equal amount is treated as original issue discount (OID). 2011 tax forms federal The lender must report the annual part of the OID as interest income. 2011 tax forms federal The borrower may be able to deduct the OID as interest expense. 2011 tax forms federal See Original Issue Discount (OID) , later. 2011 tax forms federal Exceptions to the below-market loan rules. 2011 tax forms federal   Exceptions to the below-market loan rules are discussed here. 2011 tax forms federal Exception for loans of $10,000 or less. 2011 tax forms federal   The rules for below-market loans do not apply to any day on which the total outstanding amount of loans between the borrower and lender is $10,000 or less. 2011 tax forms federal This exception applies only to: Gift loans between individuals if the gift loan is not directly used to buy or carry income-producing assets, and Pay-related loans or corporation-shareholder loans if the avoidance of federal tax is not a principal purpose of the interest arrangement. 2011 tax forms federal This exception does not apply to a term loan described in (2) earlier that previously has been subject to the below-market loan rules. 2011 tax forms federal Those rules will continue to apply even if the outstanding balance is reduced to $10,000 or less. 2011 tax forms federal Exception for loans to continuing care facilities. 2011 tax forms federal   Loans to qualified continuing care facilities under continuing care contracts are not subject to the rules for below-market loans for the calendar year if the lender or the lender's spouse is age 62 or older at the end of the year. 2011 tax forms federal For the definitions of qualified continuing care facility and continuing care contract, see Internal Revenue Code section 7872(h). 2011 tax forms federal Exception for loans without significant tax effect. 2011 tax forms federal   Loans are excluded from the below-market loan rules if their interest arrangements do not have a significant effect on the federal tax liability of the borrower or the lender. 2011 tax forms federal These loans include: Loans made available by the lender to the general public on the same terms and conditions that are consistent with the lender's customary business practice; Loans subsidized by a federal, state, or municipal government that are made available under a program of general application to the public; Certain employee-relocation loans; Certain loans from a foreign person, unless the interest income would be effectively connected with the conduct of a U. 2011 tax forms federal S. 2011 tax forms federal trade or business and would not be exempt from U. 2011 tax forms federal S. 2011 tax forms federal tax under an income tax treaty; Gift loans to a charitable organization, contributions to which are deductible, if the total outstanding amount of loans between the organization and lender is $250,000 or less at all times during the tax year; and Other loans on which the interest arrangement can be shown to have no significant effect on the federal tax liability of the lender or the borrower. 2011 tax forms federal For a loan described in (6) above, all the facts and circumstances are used to determine if the interest arrangement has a significant effect on the federal tax liability of the lender or borrower. 2011 tax forms federal Some factors to be considered are: Whether items of income and deduction generated by the loan offset each other; The amount of these items; The cost to you of complying with the below-market loan rules, if they were to apply; and Any reasons other than taxes for structuring the transaction as a below-market loan. 2011 tax forms federal If you structure a transaction to meet this exception and one of the principal purposes of that structure is the avoidance of federal tax, the loan will be considered a tax-avoidance loan, and this exception will not apply. 2011 tax forms federal Limit on forgone interest for gift loans of $100,000 or less. 2011 tax forms federal   For gift loans between individuals, if the outstanding loans between the lender and borrower total $100,000 or less, the forgone interest to be included in income by the lender and deducted by the borrower is limited to the amount of the borrower's net investment income for the year. 2011 tax forms federal If the borrower's net investment income is $1,000 or less, it is treated as zero. 2011 tax forms federal This limit does not apply to a loan if the avoidance of federal tax is one of the main purposes of the interest arrangement. 2011 tax forms federal Effective dates. 2011 tax forms federal    These rules apply to term loans made after June 6, 1984, and to demand loans outstanding after that date. 2011 tax forms federal U. 2011 tax forms federal S. 2011 tax forms federal Savings Bonds This section provides tax information on U. 2011 tax forms federal S. 2011 tax forms federal savings bonds. 2011 tax forms federal It explains how to report the interest income on these bonds and how to treat transfers of these bonds. 2011 tax forms federal U. 2011 tax forms federal S. 2011 tax forms federal savings bonds currently offered to individuals include Series EE bonds and Series I bonds. 2011 tax forms federal For other information on U. 2011 tax forms federal S. 2011 tax forms federal savings bonds, write to:  For Series HH/H: Bureau of the Fiscal Service Division of Customer Assistance P. 2011 tax forms federal O. 2011 tax forms federal Box 2186 Parkersburg, WV 26106-2186  For Series EE and I paper savings bonds: Bureau of the Fiscal Service Division of Customer Assistance P. 2011 tax forms federal O. 2011 tax forms federal Box 7012 Parkersburg, WV 26106-7012  For Series EE and I electronic bonds: Bureau of the Fiscal Service  Division of Customer Assistance P. 2011 tax forms federal O. 2011 tax forms federal Box 7015 Parkersburg, WV 26106-7015 Or, on the Internet, visit: www. 2011 tax forms federal treasurydirect. 2011 tax forms federal gov/indiv/indiv. 2011 tax forms federal htm. 2011 tax forms federal Accrual method taxpayers. 2011 tax forms federal   If you use an accrual method of accounting, you must report interest on U. 2011 tax forms federal S. 2011 tax forms federal savings bonds each year as it accrues. 2011 tax forms federal You cannot postpone reporting interest until you receive it or until the bonds mature. 2011 tax forms federal Cash method taxpayers. 2011 tax forms federal   If you use the cash method of accounting, as most individual taxpayers do, you generally report the interest on U. 2011 tax forms federal S. 2011 tax forms federal savings bonds when you receive it. 2011 tax forms federal But see Reporting options for cash method taxpayers , later. 2011 tax forms federal Series HH bonds. 2011 tax forms federal   These bonds were issued at face value. 2011 tax forms federal Interest is paid twice a year by direct deposit to your bank account. 2011 tax forms federal If you are a cash method taxpayer, you must report interest on these bonds as income in the year you receive it. 2011 tax forms federal   Series HH bonds were first offered in 1980 and last offered in August 2004. 2011 tax forms federal Before 1980, series H bonds were issued. 2011 tax forms federal Series H bonds are treated the same as series HH bonds. 2011 tax forms federal If you are a cash method taxpayer, you must report the interest when you receive it. 2011 tax forms federal   Series H bonds have a maturity period of 30 years. 2011 tax forms federal Series HH bonds mature in 20 years. 2011 tax forms federal The last series H bonds matured in 2009. 2011 tax forms federal The last series HH bonds will mature in 2024. 2011 tax forms federal Series EE and series I bonds. 2011 tax forms federal   Interest on these bonds is payable when you redeem the bonds. 2011 tax forms federal The difference between the purchase price and the redemption value is taxable interest. 2011 tax forms federal Series EE bonds. 2011 tax forms federal   Series EE bonds were first offered in January 1980 and have a maturity period of 30 years. 2011 tax forms federal Before July 1980, series E bonds were issued. 2011 tax forms federal The original 10-year maturity period of series E bonds has been extended to 40 years for bonds issued before December 1965 and 30 years for bonds issued after November 1965. 2011 tax forms federal Paper series EE and series E bonds are issued at a discount. 2011 tax forms federal The face value is payable to you at maturity. 2011 tax forms federal Electronic series EE bonds are issued at their face value. 2011 tax forms federal The face value plus accrued interest is payable to you at maturity. 2011 tax forms federal As of January 1, 2012, paper savings bonds were no longer sold at financial institutions. 2011 tax forms federal    Owners of paper series EE bonds can convert them to electronic bonds. 2011 tax forms federal These converted bonds do not retain the denomination listed on the paper certificate but are posted at their purchase price (with accrued interest). 2011 tax forms federal Series I bonds. 2011 tax forms federal   Series I bonds were first offered in 1998. 2011 tax forms federal These are inflation-indexed bonds issued at their face amount with a maturity period of 30 years. 2011 tax forms federal The face value plus all accrued interest is payable to you at maturity. 2011 tax forms federal Reporting options for cash method taxpayers. 2011 tax forms federal   If you use the cash method of reporting income, you can report the interest on series EE, series E, and series I bonds in either of the following ways. 2011 tax forms federal Method 1. 2011 tax forms federal Postpone reporting the interest until the earlier of the year you cash or dispose of the bonds or the year in which they mature. 2011 tax forms federal (However, see Savings bonds traded , later. 2011 tax forms federal )  Note. 2011 tax forms federal Series EE bonds issued in 1983 matured in 2013. 2011 tax forms federal If you have used method 1, you generally must report the interest on these bonds on your 2013 return. 2011 tax forms federal The last series E bonds were issued in 1980 and matured in 2010. 2011 tax forms federal If you used method 1, you generally should have reported the interest on these bonds on your 2010 return. 2011 tax forms federal Method 2. 2011 tax forms federal Choose to report the increase in redemption value as interest each year. 2011 tax forms federal  You must use the same method for all series EE, series E, and series I bonds you own. 2011 tax forms federal If you do not choose method 2 by reporting the increase in redemption value as interest each year, you must use method 1. 2011 tax forms federal If you plan to cash your bonds in the same year you will pay for higher educational expenses, you may want to use method 1 because you may be able to exclude the interest from your income. 2011 tax forms federal To learn how, see Education Savings Bond Program, later. 2011 tax forms federal Change from method 1. 2011 tax forms federal   If you want to change your method of reporting the interest from method 1 to method 2, you can do so without permission from the IRS. 2011 tax forms federal In the year of change, you must report all interest accrued to date and not previously reported for all your bonds. 2011 tax forms federal   Once you choose to report the interest each year, you must continue to do so for all series EE, series E, and series I bonds you own and for any you get later, unless you request permission to change, as explained next. 2011 tax forms federal Change from method 2. 2011 tax forms federal   To change from method 2 to method 1, you must request permission from the IRS. 2011 tax forms federal Permission for the change is automatically granted if you send the IRS a statement that meets all the following requirements. 2011 tax forms federal You have typed or printed the following number at the top: “131. 2011 tax forms federal ” It includes your name and social security number under “131. 2011 tax forms federal ” It includes the year of change (both the beginning and ending dates). 2011 tax forms federal It identifies the savings bonds for which you are requesting this change. 2011 tax forms federal It includes your agreement to: Report all interest on any bonds acquired during or after the year of change when the interest is realized upon disposition, redemption, or final maturity, whichever is earliest; and Report all interest on the bonds acquired before the year of change when the interest is realized upon disposition, redemption, or final maturity, whichever is earliest, with the exception of the interest reported in prior tax years. 2011 tax forms federal   You must attach this statement to your tax return for the year of change, which you must file by the due date (including extensions). 2011 tax forms federal   You can have an automatic extension of 6 months from the due date of your return for the year of change (excluding extensions) to file the statement with an amended return. 2011 tax forms federal On the statement, type or print “Filed pursuant to section 301. 2011 tax forms federal 9100-2. 2011 tax forms federal ” To get this extension, you must have filed your original return for the year of the change by the due date (including extensions). 2011 tax forms federal    By the date you file the original statement with your return, you must also send a signed copy to the address below. 2011 tax forms federal    Internal Revenue Service Attention: CC:IT&A (Automatic Rulings Branch) P. 2011 tax forms federal O. 2011 tax forms federal Box 7604 Benjamin Franklin Station Washington, DC 20044   If you use a private delivery service, send the signed copy to the address below. 2011 tax forms federal Internal Revenue Service Attention: CC:IT&A  (Automatic Rulings Branch) Room 5336 1111 Constitution Avenue, NW Washington, DC 20224    Instead of filing this statement, you can request permission to change from method 2 to method 1 by filing Form 3115. 2011 tax forms federal In that case, follow the form instructions for an automatic change. 2011 tax forms federal No user fee is required. 2011 tax forms federal Co-owners. 2011 tax forms federal   If a U. 2011 tax forms federal S. 2011 tax forms federal savings bond is issued in the names of co-owners, such as you and your child or you and your spouse, interest on the bond is generally taxable to the co-owner who bought the bond. 2011 tax forms federal One co-owner's funds used. 2011 tax forms federal   If you used your funds to buy the bond, you must pay the tax on the interest. 2011 tax forms federal This is true even if you let the other co-owner redeem the bond and keep all the proceeds. 2011 tax forms federal Under these circumstances, the co-owner who redeemed the bond will receive a Form 1099-INT at the time of redemption and must provide you with another Form 1099-INT showing the amount of interest from the bond taxable to you. 2011 tax forms federal The co-owner who redeemed the bond is a “nominee. 2011 tax forms federal ” See Nominee distributions under How To Report Interest Income, later, for more information about how a person who is a nominee reports interest income belonging to another person. 2011 tax forms federal Both co-owners' funds used. 2011 tax forms federal   If you and the other co-owner each contribute part of the bond's purchase price, the interest is generally taxable to each of you, in proportion to the amount each of you paid. 2011 tax forms federal Community property. 2011 tax forms federal   If you and your spouse live in a community property state and hold bonds as community property, one-half of the interest is considered received by each of you. 2011 tax forms federal If you file separate returns, each of you generally must report one-half of the bond interest. 2011 tax forms federal For more information about community property, see Publication 555. 2011 tax forms federal Table 1-2. 2011 tax forms federal   These rules are also shown in Table 1-2. 2011 tax forms federal Child as only owner. 2011 tax forms federal   Interest on U. 2011 tax forms federal S. 2011 tax forms federal savings bonds bought for and registered only in the name of your child is income to your child, even if you paid for the bonds and are named as beneficiary. 2011 tax forms federal If the bonds are series EE, series E, or series I bonds, the interest on the bonds is income to your child in the earlier of the year the bonds are cashed or disposed of or the year the bonds mature, unless your child chooses to report the interest income each year. 2011 tax forms federal Choice to report interest each year. 2011 tax forms federal   The choice to report the accrued interest each year can be made either by your child or by you for your child. 2011 tax forms federal This choice is made by filing an income tax return that shows all the interest earned to date, and by stating on the return that your child chooses to report the interest each year. 2011 tax forms federal Either you or your child should keep a copy of this return. 2011 tax forms federal   Unless your child is otherwise required to file a tax return for any year after making this choice, your child does not have to file a return only to report the annual accrual of U. 2011 tax forms federal S. 2011 tax forms federal savings bond interest under this choice. 2011 tax forms federal However, see Tax on unearned income of certain children , earlier, under General Information. 2011 tax forms federal Neither you nor your child can change the way you report the interest unless you request permission from the IRS, as discussed earlier under Change from method 2 . 2011 tax forms federal Ownership transferred. 2011 tax forms federal   If you bought series E, series EE, or series I bonds entirely with your own funds and had them reissued in your co-owner's name or beneficiary's name alone, you must include in your gross income for the year of reissue all interest that you earned on these bonds and have not previously reported. 2011 tax forms federal But, if the bonds were reissued in your name alone, you do not have to report the interest accrued at that time. 2011 tax forms federal   This same rule applies when bonds (other than bonds held as community property) are transferred between spouses or incident to divorce. 2011 tax forms federal Example. 2011 tax forms federal You bought series EE bonds entirely with your own funds. 2011 tax forms federal You did not choose to report the accrued interest each year. 2011 tax forms federal Later, you transfer the bonds to your former spouse under a divorce agreement. 2011 tax forms federal You must include the deferred accrued interest, from the date of the original issue of the bonds to the date of transfer, in your income in the year of transfer. 2011 tax forms federal Your former spouse includes in income the interest on the bonds from the date of transfer to the date of redemption. 2011 tax forms federal Table 1-2. 2011 tax forms federal Who Pays the Tax on U. 2011 tax forms federal S. 2011 tax forms federal Savings Bond Interest IF . 2011 tax forms federal . 2011 tax forms federal . 2011 tax forms federal THEN the interest must be reported by . 2011 tax forms federal . 2011 tax forms federal . 2011 tax forms federal you buy a bond in your name and the name of another person as co-owners, using only your own funds you. 2011 tax forms federal you buy a bond in the name of another person, who is the sole owner of the bond the person for whom you bought the bond. 2011 tax forms federal you and another person buy a bond as co-owners, each contributing part of the purchase price both you and the other co-owner, in proportion to the amount each paid for the bond. 2011 tax forms federal you and your spouse, who live in a community property state, buy a bond that is community property you and your spouse. 2011 tax forms federal If you file separate returns, both you and your spouse generally report one-half of the interest. 2011 tax forms federal Purchased jointly. 2011 tax forms federal   If you and a co-owner each contributed funds to buy series E, series EE, or series I bonds jointly and later have the bonds reissued in the co-owner's name alone, you must include in your gross income for the year of reissue your share of all the interest earned on the bonds that you have not previously reported. 2011 tax forms federal The former co-owner does not have to include in gross income at the time of reissue his or her share of the interest earned that was not reported before the transfer. 2011 tax forms federal This interest, however, as well as all interest earned after the reissue, is income to the former co-owner. 2011 tax forms federal   This income-reporting rule also applies when the bonds are reissued in the name of your former co-owner and a new co-owner. 2011 tax forms federal But the new co-owner will report only his or her share of the interest earned after the transfer. 2011 tax forms federal   If bonds that you and a co-owner bought jointly are reissued to each of you separately in the same proportion as your contribution to the purchase price, neither you nor your co-owner has to report at that time the interest earned before the bonds were reissued. 2011 tax forms federal Example 1. 2011 tax forms federal You and your spouse each spent an equal amount to buy a $1,000 series EE savings bond. 2011 tax forms federal The bond was issued to you and your spouse as co-owners. 2011 tax forms federal You both postpone reporting interest on the bond. 2011 tax forms federal You later have the bond reissued as two $500 bonds, one in your name and one in your spouse's name. 2011 tax forms federal At that time neither you nor your spouse has to report the interest earned to the date of reissue. 2011 tax forms federal Example 2. 2011 tax forms federal You bought a $1,000 series EE savings bond entirely with your own funds. 2011 tax forms federal The bond was issued to you and your spouse as co-owners. 2011 tax forms federal You both postponed reporting interest on the bond. 2011 tax forms federal You later have the bond reissued as two $500 bonds, one in your name and one in your spouse's name. 2011 tax forms federal You must report half the interest earned to the date of reissue. 2011 tax forms federal Transfer to a trust. 2011 tax forms federal   If you own series E, series EE, or series I bonds and transfer them to a trust, giving up all rights of ownership, you must include in your income for that year the interest earned to the date of transfer if you have not already reported it. 2011 tax forms federal However, if you are considered the owner of the trust and if the increase in value both before and after the transfer continues to be taxable to you, you can continue to defer reporting the interest earned each year. 2011 tax forms federal You must include the total interest in your income in the year you cash or dispose of the bonds or the year the bonds finally mature, whichever is earlier. 2011 tax forms federal   The same rules apply to previously unreported interest on series EE or series E bonds if the transfer to a trust consisted of series HH or series H bonds you acquired in a trade for the series EE or series E bonds. 2011 tax forms federal See Savings bonds traded , later. 2011 tax forms federal Decedents. 2011 tax forms federal   The manner of reporting interest income on series E, series EE, or series I bonds, after the death of the owner (decedent), depends on the accounting and income-reporting methods previously used by the decedent. 2011 tax forms federal Decedent who reported interest each year. 2011 tax forms federal   If the bonds transferred because of death were owned by a person who used an accrual method, or who used the cash method and had chosen to report the interest each year, the interest earned in the year of death up to the date of death must be reported on that person's final return. 2011 tax forms federal The person who acquires the bonds includes in income only interest earned after the date of death. 2011 tax forms federal Decedent who postponed reporting interest. 2011 tax forms federal   If the transferred bonds were owned by a decedent who had used the cash method and had not chosen to report the interest each year, and who had bought the bonds entirely with his or her own funds, all interest earned before death must be reported in one of the following ways. 2011 tax forms federal The surviving spouse or personal representative (executor, administrator, etc. 2011 tax forms federal ) who files the final income tax return of the decedent can choose to include on that return all interest earned on the bonds before the decedent's death. 2011 tax forms federal The person who acquires the bonds then includes in income only interest earned after the date of death. 2011 tax forms federal If the choice in (1) is not made, the interest earned up to the date of death is income in respect of the decedent and should not be included in the decedent's final return. 2011 tax forms federal All interest earned both before and after the decedent's death (except any part reported by the estate on its income tax return) is income to the person who acquires the bonds. 2011 tax forms federal If that person uses the cash method and does not choose to report the interest each year, he or she can postpone reporting it until the year the bonds are cashed or disposed of or the year they mature, whichever is earlier. 2011 tax forms federal In the year that person reports the interest, he or she can claim a deduction for any federal estate tax paid on the part of the interest included in the decedent's estate. 2011 tax forms federal For more information on income in respect of a decedent, see Publication 559, Survivors, Executors, and Administrators. 2011 tax forms federal Example 1. 2011 tax forms federal Your uncle, a cash method taxpayer, died and left you a $1,000 series EE bond. 2011 tax forms federal He had bought the bond for $500 and had not chosen to report the interest each year. 2011 tax forms federal At the date of death, interest of $200 had accrued on the bond, and its value of $700 was included in your uncle's estate. 2011 tax forms federal Your uncle's executor chose not to include the $200 accrued interest in your uncle's final income tax return. 2011 tax forms federal The $200 is income in respect of the decedent. 2011 tax forms federal You are a cash method taxpayer and do not choose to report the interest each year as it is earned. 2011 tax forms federal If you cash the bond when it reaches maturity value of $1,000, you report $500 interest income—the difference between maturity value of $1,000 and the original cost of $500. 2011 tax forms federal For that year, you can deduct (as a miscellaneous itemized deduction not subject to the 2%-of-adjusted-gross-income limit) any federal estate tax paid because the $200 interest was included in your uncle's estate. 2011 tax forms federal Example 2. 2011 tax forms federal If, in Example 1 , the executor had chosen to include the $200 accrued interest in your uncle's final return, you would report only $300 as interest when you cashed the bond at maturity. 2011 tax forms federal $300 is the interest earned after your uncle's death. 2011 tax forms federal Example 3. 2011 tax forms federal If, in Example 1 , you make or have made the choice to report the increase in redemption value as interest each year, you include in gross income for the year you acquire the bond all of the unreported increase in value of all series E, series EE, and series I bonds you hold, including the $200 on the bond you inherited from your uncle. 2011 tax forms federal Example 4. 2011 tax forms federal When your aunt died, she owned series HH bonds that she had acquired in a trade for series EE bonds. 2011 tax forms federal You were the beneficiary of these bonds. 2011 tax forms federal Your aunt used the cash method and did not choose to report the interest on the series EE bonds each year as it accrued. 2011 tax forms federal Your aunt's executor chose not to include any interest earned before your aunt's death on her final return. 2011 tax forms federal The income in respect of the decedent is the sum of the unreported interest on the series EE bonds and the interest, if any, payable on the series HH bonds but not received as of the date of your aunt's death. 2011 tax forms federal You must report any interest received during the year as income on your return. 2011 tax forms federal The part of the interest payable but not received before your aunt's death is income in respect of the decedent and may qualify for the estate tax deduction. 2011 tax forms federal For information on when to report the interest on the series EE bonds traded, see Savings bonds traded , later. 2011 tax forms federal Savings bonds distributed from a retirement or profit-sharing plan. 2011 tax forms federal   If you acquire a U. 2011 tax forms federal S. 2011 tax forms federal savings bond in a taxable distribution from a retirement or profit-sharing plan, your income for the year of distribution includes the bond's redemption value (its cost plus the interest accrued before the distribution). 2011 tax forms federal When you redeem the bond (whether in the year of distribution or later), your interest income includes only the interest accrued after the bond was distributed. 2011 tax forms federal To figure the interest reported as a taxable distribution and your interest income when you redeem the bond, see Worksheet for savings bonds distributed from a retirement or profit-sharing plan under How To Report Interest Income, later. 2011 tax forms federal Savings bonds traded. 2011 tax forms federal   If you postponed reporting the interest on your series EE or series E bonds, you did not recognize taxable income when you traded the bonds for series HH or series H bonds, unless you received cash in the trade. 2011 tax forms federal (You cannot trade series I bonds for series HH bonds. 2011 tax forms federal After August 31, 2004, you cannot trade any other series of bonds for series HH bonds. 2011 tax forms federal ) Any cash you received is income up to the amount of the interest earned on the bonds traded. 2011 tax forms federal When your series HH or series H bonds mature, or if you dispose of them before maturity, you report as interest the difference between their redemption value and your cost. 2011 tax forms federal Your cost is the sum of the amount you paid for the traded series EE or series E bonds plus any amount you had to pay at the time of the trade. 2011 tax forms federal Example. 2011 tax forms federal You traded series EE bonds (on which you postponed reporting the interest) for $2,500 in series HH bonds and $223 in cash. 2011 tax forms federal You reported the $223 as taxable income on your tax return. 2011 tax forms federal At the time of the trade, the series EE bonds had accrued interest of $523 and a redemption value of $2,723. 2011 tax forms federal You hold the series HH bonds until maturity, when you receive $2,500. 2011 tax forms federal You must report $300 as interest income in the year of maturity. 2011 tax forms federal This is the difference between their redemption value, $2,500, and your cost, $2,200 (the amount you paid for the series EE bonds). 2011 tax forms federal (It is also the difference between the accrued interest of $523 on the series EE bonds and the $223 cash received on the trade. 2011 tax forms federal ) Choice to report interest in year of trade. 2011 tax forms federal   You could have chosen to treat all of the previously unreported accrued interest on series EE or series E bonds traded for series HH bonds as income in the year of the trade. 2011 tax forms federal If you made this choice, it is treated as a change from method 1. 2011 tax forms federal See Change from method 1 under Series EE and series I bonds, earlier. 2011 tax forms federal Form 1099-INT for U. 2011 tax forms federal S. 2011 tax forms federal savings bond interest. 2011 tax forms federal   When you cash a bond, the bank or other payer that redeems it must give you a Form 1099-INT if the interest part of the payment you receive is $10 or more. 2011 tax forms federal Box 3 of your Form 1099-INT should show the interest as the difference between the amount you received and the amount paid for the bond. 2011 tax forms federal However, your Form 1099-INT may show more interest than you have to include on your income tax return. 2011 tax forms federal For example, this may happen if any of the following are true. 2011 tax forms federal You chose to report the increase in the redemption value of the bond each year. 2011 tax forms federal The interest shown on your Form 1099-INT will not be reduced by amounts previously included in income. 2011 tax forms federal You received the bond from a decedent. 2011 tax forms federal The interest shown on your Form 1099-INT will not be reduced by any interest reported by the decedent before death, or on the decedent's final return, or by the estate on the estate's income tax return. 2011 tax forms federal Ownership of the bond was transferred. 2011 tax forms federal The interest shown on your Form 1099-INT will not be reduced by interest that accrued before the transfer. 2011 tax forms federal You were named as a co-owner, and the other co-owner contributed funds to buy the bond. 2011 tax forms federal The interest shown on your Form 1099-INT will not be reduced by the amount you received as nominee for the other co-owner. 2011 tax forms federal (See Co-owners , earlier in this section, for more information about the reporting requirements. 2011 tax forms federal ) You received the bond in a taxable distribution from a retirement or profit-sharing plan. 2011 tax forms federal The interest shown on your Form 1099-INT will not be reduced by the interest portion of the amount taxable as a distribution from the plan and not taxable as interest. 2011 tax forms federal (This amount is generally shown on Form 1099-R, Distributions From Pensions, Annuities, Retirement or Profit-Sharing Plans, IRAs, Insurance Contracts, etc. 2011 tax forms federal , for the year of distribution. 2011 tax forms federal )   For more information on including the correct amount of interest on your return, see U. 2011 tax forms federal S. 2011 tax forms federal savings bond interest previously reported or Nominee distributions under How To Report Interest Income, later. 2011 tax forms federal    Interest on U. 2011 tax forms federal S. 2011 tax forms federal savings bonds is exempt from state and local taxes. 2011 tax forms federal The Form 1099-INT you receive will indicate the amount that is for U. 2011 tax forms federal S. 2011 tax forms federal savings bonds interest in box 3. 2011 tax forms federal Do not include this income on your state or local income tax return. 2011 tax forms federal Education Savings Bond Program You may be able to exclude from income all or part of the interest you receive on the redemption of qualified U. 2011 tax forms federal S. 2011 tax forms federal savings bonds during the year if you pay qualified higher educational expenses during the same year. 2011 tax forms federal This exclusion is known as the Education Savings Bond Program. 2011 tax forms federal You do not qualify for this exclusion if your filing status is married filing separately. 2011 tax forms federal Form 8815. 2011 tax forms federal   Use Form 8815 to figure your exclusion. 2011 tax forms federal Attach the form to your Form 1040 or Form 1040A. 2011 tax forms federal Qualified U. 2011 tax forms federal S. 2011 tax forms federal savings bonds. 2011 tax forms federal   A qualified U. 2011 tax forms federal S. 2011 tax forms federal savings bond is a series EE bond issued after 1989 or a series I bond. 2011 tax forms federal The bond must be issued either in your name (sole owner) or in your and your spouse's names (co-owners). 2011 tax forms federal You must be at least 24 years old before the bond's issue date. 2011 tax forms federal For example, a bond bought by a parent and issued in the name of his or her child under age 24 does not qualify for the exclusion by the parent or child. 2011 tax forms federal    The issue date of a bond may be earlier than the date the bond is purchased because the issue date assigned to a bond is the first day of the month in which it is purchased. 2011 tax forms federal Beneficiary. 2011 tax forms federal   You can designate any individual (including a child) as a beneficiary of the bond. 2011 tax forms federal Verification by IRS. 2011 tax forms federal   If you claim the exclusion, the IRS will check it by using bond redemption information from the Department of Treasury. 2011 tax forms federal Qualified expenses. 2011 tax forms federal   Qualified higher educational expenses are tuition and fees required for you, your spouse, or your dependent (for whom you claim an exemption) to attend an eligible educational institution. 2011 tax forms federal   Qualified expenses include any contribution you make to a qualified tuition program or to a Coverdell education savings account. 2011 tax forms federal For information about these programs, see Publication 970, Tax Benefits for Education. 2011 tax forms federal   Qualified expenses do not include expenses for room and board or for courses involving sports, games, or hobbies that are not part of a degree or certificate granting program. 2011 tax forms federal Eligible educational institutions. 2011 tax forms federal   These institutions include most public, private, and nonprofit universities, colleges, and vocational schools that are accredited and eligible to participate in student aid programs run by the Department of Education. 2011 tax forms federal Reduction for certain benefits. 2011 tax forms federal   You must reduce your qualified higher educational expenses by all of the following tax-free benefits. 2011 tax forms federal Tax-free part of scholarships and fellowships. 2011 tax forms federal Expenses used to figure the tax-free portion of distributions from a Coverdell ESA. 2011 tax forms federal Expenses used to figure the tax-free portion of distributions from a qualified tuition program. 2011 tax forms federal Any tax-free payments (other than gifts or inheritances) received as educational assistance, such as: Veterans' educational assistance benefits, Qualified tuition reductions, or Employer-provided educational assistance. 2011 tax forms federal Any expense used in figuring the American Opportunity and lifetime learning credits. 2011 tax forms federal For information about these benefits, see Publication 970. 2011 tax forms federal Amount excludable. 2011 tax forms federal   If the total proceeds (interest and principal) from the qualified U. 2011 tax forms federal S. 2011 tax forms federal savings bonds you redeem during the year are not more than your adjusted qualified higher educational expenses for the year, you may be able to exclude all of the interest. 2011 tax forms federal If the proceeds are more than the expenses, you may be able to exclude only part of the interest. 2011 tax forms federal   To determine the excludable amount, multiply the interest part of the proceeds by a fraction. 2011 tax forms federal The numer
Español

Know Your Rights

The Federal Deposit Insurance Corporation and other federal regulators require banks, insurance companies, brokerage firms and certain businesses who share financial information to tell you their privacy policies. They must give you this information when you open an account, and at least once every year after. They must include:

  • the kinds of information being collected;
  • how the confidentiality and security of this information will be protected; and
  • what types of businesses may be provided this information.

If a business is going to share the information with anyone outside its corporate family, it must also give you the chance to "opt-out" or say no to information sharing. Even if you don't opt out, your actual account numbers may not be shared with third parties for marketing purposes.

You cannot prevent certain types of information from being shared, including information needed to conduct normal business or protect against fraud, or information that is already publicly available. Also, a bank can share your information with a partner company to market products.

Your credit information has additional privacy protections under the Fair Credit Reporting Act. Only people with a legitimate business need can get a copy of your report. An employer can only get your report with your written consent. For more information on your rights under this federal law and to find out how you can get a copy of your credit report, visit the Credit Bureaus and Credit Scores section.

If Your Wallet is Lost or Stolen

Your wallet contains some of your most important personal items, from hard-earned money to credit cards and driver’s license. For an identity thief, your wallet offers a treasure trove of personal information. If your wallet is lost or stolen:

  • File a report with the police immediately.
  • Cancel your credit and debit cards and request new cards and account numbers.
  • Report the missing cards to the major credit reporting agencies.
  • Report your missing license to the department of motor vehicles.

Check with the Federal Trade Commission for more information on protecting your privacy

The 2011 Tax Forms Federal

2011 tax forms federal 1. 2011 tax forms federal   Application, Approval, and Appeal Procedures Table of Contents Introduction Topics - This chapter discusses: Application ProceduresForms Required Required Inclusions Miscellaneous Procedures Rulings and Determination LettersEffective Date of Exemption Revocation or Modification of Exemption Appeal ProceduresAppeals Office Consideration EO Technical Consideration Administrative Remedies Appeal to Courts Group Exemption LetterCentral Organization Application Procedure Keeping the Group Exemption Letter in Force Events Causing Loss of Group Exemption Introduction If your organization is one of the organizations described in this publication and is seeking recognition of tax-exempt status from the IRS, you should follow the procedures described in this chapter and the instructions that accompany the appropriate application forms. 2011 tax forms federal For information on section 501(c)(3) organizations, go to Section 501(c)(3) Organizations chapter 3. 2011 tax forms federal If your organization is seeking exemption under one of the other paragraphs of section 501(c), see chapter 4. 2011 tax forms federal Topics - This chapter discusses: Application procedures that generally apply to all organizations discussed in this publication, including the application forms; Rulings and determination letters (approvals/disapprovals); Appeal procedures available if an adverse determination letter is proposed; and Group exemption letters. 2011 tax forms federal Application Procedures Oral requests for recognition of exemption will not be considered by the IRS. 2011 tax forms federal Your application for tax-exempt status must be in writing using the appropriate forms as discussed below. 2011 tax forms federal Forms Required If your organization is seeking recognition of exemption from federal income tax, it must use a specific application prescribed by the IRS in Revenue Procedure 2013–9, sec. 2011 tax forms federal 3. 2011 tax forms federal If your organization is a central organization with exempt status, see Group Exemption Letter , later. 2011 tax forms federal All applications must be signed by an authorized individual. 2011 tax forms federal Form 1023, Application for Recognition of Exemption. 2011 tax forms federal   File Form 1023 if you are seeking recognition of exemption under section: 501(c)(3) Corporations, organized and operated exclusively for religious, charitable, scientific, testing for public safety, literary, or educational purposes, or to foster national or international amateur sports, or prevention of cruelty for children or animals, 501(e) Cooperative hospital service organization, 501(f) Cooperative service organization of operating educational organizations, 501(k) Certain organizations providing child care, 501(n) Charitable risk pools, and 501(q) Credit counseling organizations. 2011 tax forms federal Form 1024, Application for Recognition of Exemption Under Section 501(a). 2011 tax forms federal    File Form 1024 if you are seeking recognition of exemption under section: 501(c)(2) Title holding corporations, 501(c)(4) Civic leagues, social welfare organizations, 501(c)(5) Labor, agricultural, or horticultural organizations, 501(c)(6) Business leagues, chambers of commerce, etc. 2011 tax forms federal , 501(c)(7) Social clubs, 501(c)(8) Fraternal beneficiary societies, orders, or associations, 501(c)(9) Voluntary employees’ beneficiary associations, 501(c)(10) Domestic fraternal societies, orders, etc. 2011 tax forms federal , 501(c)(12) Benevolent life insurance associations, mutual ditch or irrigation companies, mutual or cooperative telephone companies, 501(c)(13) Cemetery companies, 501(c)(15) Mutual insurance companies or associations, 501(c)(17) Trusts providing for the payment of supplemental unemployment compensation benefits, 501(c)(19) A post, organization, auxiliary unit, etc. 2011 tax forms federal of past or present members of the Armed Forces of the United States, and 501(c)(25) Title holding corporations or trusts. 2011 tax forms federal  Form 8718, User Fee for Exempt Organization Determination Letter Request, must also be sent along with Form 1024. 2011 tax forms federal Letter application. 2011 tax forms federal   If your organization is seeking recognition of exemption under section 501(c)(11), (14), (16), (18), (21), (22), (23), (26), (27), (28), or (29), submit a letter application with Form 8718. 2011 tax forms federal See Required Inclusions for the information to include with the letter application. 2011 tax forms federal Form 1028. 2011 tax forms federal   Use Form 1028 if your organization is a farmers’ cooperative seeking recognition of exemption under section 521. 2011 tax forms federal You must also submit Form 8718. 2011 tax forms federal Form 8871. 2011 tax forms federal    Use Form 8871 if you are a political party or campaign committee for a candidate for federal, state or local office seeking to be treated as tax-exempt under section 527. 2011 tax forms federal See Political Organization Income Tax Return , later. 2011 tax forms federal    Some organizations do not have to use specific application forms. 2011 tax forms federal The application your organization must use is specified in the chapter in this publication dealing with your kind of organization. 2011 tax forms federal It is also shown in the Organization Reference Chart, later. 2011 tax forms federal Power of attorney. 2011 tax forms federal   If your organization expects to be represented by an individual such as an attorney, CPA, officer or other person authorized to practice before the IRS, whether in person or by correspondence, you must file a Form 2848 with your exemption application. 2011 tax forms federal The power of attorney must specifically authorize an individual to represent your organization. 2011 tax forms federal You cannot name an organization, firm, etc. 2011 tax forms federal as your representative. 2011 tax forms federal Form 2848, Power of Attorney and Declaration of Representative, can be used for this purpose. 2011 tax forms federal The categories of individuals who can represent you before the IRS are listed on the form. 2011 tax forms federal Non-exemption for terrorist organizations. 2011 tax forms federal   An organization that is identified or designated as a terrorist organization within the meaning of section 501(p)(2) is not eligible to apply for recognition of exemption. 2011 tax forms federal User fee. 2011 tax forms federal   The law requires the payment of a user fee for determination letter requests such as your application for recognition of tax-exempt status. 2011 tax forms federal If you are filing Form 1023, user fee information is included in Part XI. 2011 tax forms federal If you are required to apply for recognition of exemption by submitting Form 1024, a letter application, etc. 2011 tax forms federal and you must pay a user fee, you should use Form 8718 to figure the amount of your user fee and to pay it. 2011 tax forms federal Your payment must accompany your request. 2011 tax forms federal The IRS will not process a request unless the fee has been paid. 2011 tax forms federal    For the current user fee amount and processing time for applications go to IRS. 2011 tax forms federal gov and select “Charities and Non-Profits” from the buttons near the top. 2011 tax forms federal Then select the underlined link “How to Apply To Be Tax-Exempt” for the latest user fees or I want to check the status of my application for more information. 2011 tax forms federal You can also call 1-877-829-5500. 2011 tax forms federal Required Inclusions Employer identification number (EIN). 2011 tax forms federal   Every exempt organization must have an EIN, whether or not it has any employees. 2011 tax forms federal An EIN is required before an exemption application is submitted. 2011 tax forms federal Information on how to apply for an EIN by using one of the following methods can be found at Employer ID Numbers (EIN): Online— This is the preferred method for requesting an EIN. 2011 tax forms federal The EIN is issued immediately once the application information is validated. 2011 tax forms federal By telephone at 1-800-829-4933, from 7:00 a. 2011 tax forms federal m. 2011 tax forms federal to 7:00 p. 2011 tax forms federal m. 2011 tax forms federal local time, Monday through Friday. 2011 tax forms federal The EIN is provided over the phone to an authorized individual. 2011 tax forms federal By mailing or faxing Form SS-4, Application for Employer Identification Number. 2011 tax forms federal If the faxed Form SS-4 includes the taxpayer's fax number, a fax will be sent back with the EIN within four (4) business days. 2011 tax forms federal    Use only one method for each entity so you do not receive more than one EIN for an entity. 2011 tax forms federal   If you previously applied for an EIN and have not yet received it, or you are unsure whether you have an EIN, please call our toll-free customer account services number, 1-877-829-5500, for assistance. 2011 tax forms federal Organizing documents. 2011 tax forms federal   Your application should include a copy of the organizing or enabling document that is signed by a principal officer or is accompanied by a written declaration signed by an authorized individual certifying that the document is a complete and accurate copy of the original or meets the requirements of a conformed copy. 2011 tax forms federal   If your organizing or enabling document are articles of incorporation, include evidence that it was filed and approved by a state official. 2011 tax forms federal (For example, a stamped “Filed” copy dated by the Secretary of State is prima facie evidence that it was filed and approved by a state official. 2011 tax forms federal ) A copy of the articles of incorporation can also be submitted with a written declaration signed by an authorized individual indicating the copy is complete and was filed and approved by the state, including the date filed. 2011 tax forms federal Bylaws. 2011 tax forms federal   Bylaws alone are not organizing documents. 2011 tax forms federal However, if your organization has adopted bylaws, include a current copy. 2011 tax forms federal The bylaws need not be signed if submitted as an attachment. 2011 tax forms federal   If your organization's name has been officially changed by an amendment to your organizing instruments, you should also attach a conformed copy of that amendment to your application. 2011 tax forms federal    Bylaws may be considered an organizing document only if they are properly structured (includes name, purpose, signatures, and intent to form an organization). 2011 tax forms federal Conformed copy. 2011 tax forms federal   A conformed copy is a copy that agrees with the original and all amendments to it. 2011 tax forms federal If the original document required a signature, the copy should either be signed by a principal officer or, if not signed, be accompanied by a written declaration signed by an authorized officer of the organization. 2011 tax forms federal With either option, the officer must certify that the document is a complete and accurate copy of the original. 2011 tax forms federal A certificate of incorporation should be approved and dated by an appropriate state official. 2011 tax forms federal Attachments. 2011 tax forms federal    When submitting attachments, every attachment should show your organization's name and EIN. 2011 tax forms federal It should also state that it is an attachment to your application form and identify the part and line item number to which it applies. 2011 tax forms federal Original documents. 2011 tax forms federal   Do not submit original documents because they become part of the IRS file and cannot be returned. 2011 tax forms federal Description of activities. 2011 tax forms federal   Your application must include a full description of the proposed activities of your organization, including each of the fundraising activities of a section 501(c)(3) organization and a narrative description of anticipated receipts and contemplated expenditures. 2011 tax forms federal When describing the activities in which your organization expects to engage, you must include the standards, criteria, procedures, or other means that your organization adopted or planned for carrying out those activities. 2011 tax forms federal   To determine the information you need to provide, you should study the part of this publication that applies to your organization. 2011 tax forms federal The appropriate chapter will describe the purposes and activities that your organization must pursue, engage in, and include in your application in order to achieve exempt status. 2011 tax forms federal   Often, your organization's articles of organization (or other organizing instruments) contain descriptions of your organization's purposes and activities. 2011 tax forms federal   Your application should describe completely and in detail your past, present, and planned activities. 2011 tax forms federal Financial data. 2011 tax forms federal   You must include in your application financial statements showing your receipts and expenditures and a balance sheet for the current year and the 3 preceding years (or for the number of years your organization was in existence, if less than 4 years). 2011 tax forms federal For each accounting period, you must describe the sources of your receipts and the nature of your expenditures. 2011 tax forms federal   If you have not yet begun operations, or have operated for less than 1 year, a proposed budget for 2 full accounting periods and a current statement of assets and liabilities will be acceptable. 2011 tax forms federal Exempt status established in application. 2011 tax forms federal   If your application and its supporting documents show that your organization meets the requirements for tax-exempt status under the Code section you applied, the IRS will issue a favorable determination letter or ruling. 2011 tax forms federal Miscellaneous Procedures To help in processing your application, be sure to attach all schedules, statements, and other documents required by the application form. 2011 tax forms federal If you do not attach them, you may have to resubmit your application or you may otherwise encounter a delay in processing your application. 2011 tax forms federal Incomplete application. 2011 tax forms federal   If an application is not complete and does not contain all the required attachments found under Required Inclusions, the IRS may return it to you for completion. 2011 tax forms federal The IRS may keep the application and send a letter requesting the missing information if most of the information has been received. 2011 tax forms federal   If the IRS returns the application or requests additional information from you, that application will be considered filed on the date the substantially completed application is postmarked, or if no postmark, received at the IRS. 2011 tax forms federal   Generally, the user fee will not be refunded if an incomplete application is filed. 2011 tax forms federal   Additional information may be requested if necessary to clarify the nature of your organization. 2011 tax forms federal Application made under wrong paragraph of section 501(c). 2011 tax forms federal   Occasionally, an organization appears to qualify for exemption under a paragraph of section 501(c) that is different from the one for which the organization applied. 2011 tax forms federal If the application was made on Form 1024, which applies to more than one paragraph of section 501(c), the organization can be recognized as exempt under any paragraph to which the form applies if the organization has agreed to have its application considered under that paragraph. 2011 tax forms federal It must also supply any additional information required for the application under the new paragraph. 2011 tax forms federal Different application form needed. 2011 tax forms federal   If a different application form is required for your organization, the IRS will so advise your organization and will provide the appropriate application form for your convenience in reapplying under that paragraph, if you wish to do so. 2011 tax forms federal Although supporting information previously furnished need not be duplicated, you must provide any necessary additional information required for the application. 2011 tax forms federal If your reply is not received within a limited time, your application will be processed only for the paragraph under which you originally applied. 2011 tax forms federal   When a specific application form is needed for the paragraph under which your organization qualifies, that form is required before a letter recognizing exemption can be issued. 2011 tax forms federal This includes cases in which a determination letter is modified to recognize an organization's exempt status under a paragraph other than the paragraph under which it originally established exemption. 2011 tax forms federal IRS responses. 2011 tax forms federal   Organizations that submit a complete application will receive an acknowledgment from the IRS. 2011 tax forms federal Others will receive a letter requesting more information or returning an incomplete application. 2011 tax forms federal Applicants also will be notified if the application is forwarded to EO Technical Office for consideration. 2011 tax forms federal These letters will be sent out as soon as possible after receipt of the organization's application. 2011 tax forms federal Withdrawal of application. 2011 tax forms federal   An application may be withdrawn at any time before the issuance of a ruling or determination letter upon the written request of a principal officer or authorized representative of your organization. 2011 tax forms federal However, the withdrawal will not prevent the information contained in the application from being used by the IRS in any subsequent examination of your organization's returns. 2011 tax forms federal The information forwarded with an application will not be returned to your organization and, generally, when an application is withdrawn, the user fee paid will not be refunded. 2011 tax forms federal Requests for withholding of information from the public. 2011 tax forms federal   The law requires many exempt organizations and private foundations to make their application forms and annual information returns available for public inspection. 2011 tax forms federal The law also requires the IRS to make available for public inspection, in accordance with section 6104 and the related regulations, your approved application for recognition of exemption (including any papers submitted in support of the application) and the ruling or determination letter (discussed later, under Rulings and Determination Letters . 2011 tax forms federal )   Any information submitted in the application or in support of it that relates to any trade secret, patent, process, style of work, or apparatus, upon request, can be withheld from public inspection if the IRS determines that the disclosure of such information would adversely affect the organization. 2011 tax forms federal Your request must: Identify the material to be withheld (the document, page, paragraph, and line) by clearly marking it “Not Subject To Public Inspection. 2011 tax forms federal ” Include the reasons for your organization's position that the information is of the type that can be withheld from public inspection. 2011 tax forms federal Be filed with the office where your organization files the documents in which the material to be withheld is contained. 2011 tax forms federal Where to file. 2011 tax forms federal   Send your application for exempt status and Form 8718, (if required) to: Internal Revenue Service PO Box 12192 Covington, KY 41012-0192   Your application will be considered by EO Determinations, who will either issue a favorable determination letter to your organization, issue an adverse determination letter denying the exempt status claimed in the application, or refer the case to the Exempt Organizations Technical Office (EO Technical). 2011 tax forms federal    Form 8940, Request for Miscellaneous Determination. 2011 tax forms federal You can request miscellaneous determinations under sections 507, 509(a), 4940, 4942, 4945, and 6033 with Form 8940. 2011 tax forms federal Nonexempt charitable trusts also file Form 8940 for an initial determination of section 509(a)(3) status or change to their type. 2011 tax forms federal See Form 8940 and instructions for more information. 2011 tax forms federal Requests other than applications. 2011 tax forms federal Requests other than applications for recognition of exemption or Form 8940 (for example, requests for rulings involving feeder organizations, application of excise taxes to activities of private foundations, taxation of unrelated business income, etc. 2011 tax forms federal ) should be sent to: Internal Revenue Service  Attention: EO Letter Rulings PO Box 27720 McPherson Station Washington, DC 20038 These requests, similar to applications for recognition of exemption previously discussed, must be accompanied by the appropriate user fee. 2011 tax forms federal The schedule for user fees, including those for requests other than applications, can be found in Revenue Procedure 2013-8, 2013-1 I. 2011 tax forms federal R. 2011 tax forms federal B. 2011 tax forms federal 237. 2011 tax forms federal Referral to EO Technical. 2011 tax forms federal   EO Determinations will refer to EO Technical any exempt organization issue concerning qualification for exemption or foundation status for which there is no published precedent or for which there is reason to believe that nonuniformity exists. 2011 tax forms federal EO Determinations can request technical advice on any technical or procedural question that cannot be resolved on the basis of law, regulations, or a clearly applicable revenue ruling or other published precedent. 2011 tax forms federal An organization can request that an issue be referred to EO Technical for technical advice if it feels that a lack of uniformity exists as to the disposition of the issue or if an issue is so unusual or complex as to warrant consideration by EO Technical. 2011 tax forms federal If a determination letter is issued based on technical advice from EO Technical regarding qualification for exemption or foundation status, no further administrative appeal is available on the issue that was the subject of technical advice. 2011 tax forms federal Reminder. 2011 tax forms federal   The law requires payment of a user fee for determination letter requests. 2011 tax forms federal Go to IRS. 2011 tax forms federal gov/Charities and select Current User Fees-Exempt Organizations to find the required payment. 2011 tax forms federal Payment must accompany each request. 2011 tax forms federal Rulings and Determination Letters Elimination of the advance public charity status. 2011 tax forms federal   New regulations eliminate the advance ruling process for a section 501(c)(3) organization. 2011 tax forms federal Under the new regulations, a new section 501(c)(3) organization will be classified as a publicly supported organization and not a private foundation if it can show when it applies for tax-exempt status that it reasonably can be expected to be publicly supported. 2011 tax forms federal The new rules no longer require the organization to file Form 8734, Support Schedule for Advance Ruling Period, after completing its first 5 tax years. 2011 tax forms federal See Elimination of the Advance Ruling Process . 2011 tax forms federal An organization must describe fully the activities in which it expects to engage. 2011 tax forms federal This includes standards, procedures, or other means adopted or planned by the organization for carrying out its activities, expected sources of funds, and the nature of its contemplated expenses. 2011 tax forms federal When an organization does not supply the information previously mentioned under Application Procedures , or fails to furnish a sufficiently detailed description of its proposed activities to permit a conclusion that it will clearly be exempt, a proposed adverse determination letter or ruling may be issued. 2011 tax forms federal Adverse determination. 2011 tax forms federal   A proposed adverse ruling or determination letter will be issued to an organization that has not provided sufficiently detailed information to establish that it qualifies for exemption or if the information provided establishes that it does not qualify for exemption. 2011 tax forms federal An organization can appeal a proposed adverse ruling or determination letter. 2011 tax forms federal See Appeal Procedures , later. 2011 tax forms federal Effective Date of Exemption A ruling or determination letter recognizing exemption is usually effective as of the date of formation of an organization if, during the period before the date of the ruling or determination letter, its purposes and activities were those required by the law. 2011 tax forms federal (See Application for Recognition of Exemption in chapter 3 for the special rule for organizations applying for recognition of exemption under section 501(c)(3). 2011 tax forms federal ) Upon obtaining recognition of exemption, the organization can file a claim for a refund of income taxes paid for the period for which its exempt status is recognized. 2011 tax forms federal If an organization is required to alter its activities or substantially amend its charter to qualify, the ruling or determination letter recognizing exemption will be effective as of the date specified in the letter. 2011 tax forms federal If a nonsubstantive amendment is made, such as correction of a clerical error in the enabling instrument or the addition of a dissolution clause, exemption will ordinarily be recognized as of the date of formation if the activities of the organization before the ruling or determination are consistent with the exemption requirements. 2011 tax forms federal A ruling or determination letter recognizing exemption cannot be relied on if there is a material change, inconsistent with exemption, in the character, the purpose, or the method of operation of the organization. 2011 tax forms federal Also, a ruling or determination letter cannot be relied on if it is based on any inaccurate material factual representations. 2011 tax forms federal Revocation or Modification of Exemption A ruling or determination letter recognizing exemption may be revoked or modified by: A notice to the organization to which the ruling or determination letter originally was issued, Enactment of legislation or ratification of a tax treaty, A decision of the United States Supreme Court, Issuance of temporary or final regulations, or Issuance of a revenue ruling, a revenue procedure, or other statement published in the Internal Revenue Bulletin or Cumulative Bulletin. 2011 tax forms federal When revocation takes effect. 2011 tax forms federal   If the organization omitted or misstated a material fact, operated in a manner materially different from that originally represented, or, with regard to organizations to which section 503 applies, engaged in a prohibited transaction (such as diverting corpus or income from its exempt purpose), the revocation or modification may be retroactive. 2011 tax forms federal Material change in organization. 2011 tax forms federal   If there is a material change, inconsistent with exemption, in the character, purpose, or method of operation of the organization, revocation or modification will ordinarily take effect as of the date of that material change. 2011 tax forms federal Relief from retroactivity. 2011 tax forms federal   If a ruling or determination letter was issued in error or the IRS changed its position after issuing a letter or ruling, and if section 7805(b) relief is granted, retroactivity of the revocation or modification ordinarily will be limited to a date not earlier than that on which the original ruling or determination letter was modified or revoked. 2011 tax forms federal For more information on requesting section 7805(b) relief, see Revenue Procedure 2013-4, 2013-1 I. 2011 tax forms federal R. 2011 tax forms federal B. 2011 tax forms federal 126, sec. 2011 tax forms federal 13 (or later update). 2011 tax forms federal Foundations. 2011 tax forms federal   The determination of the effective date is the same for the revocation or modification of foundation status or operating foundation status unless the effective date is expressly covered by statute or regulations. 2011 tax forms federal Written notice. 2011 tax forms federal   If an EO area manager concludes, as a result of examining an information return or considering information from any other source, that a ruling or determination letter should be revoked or modified, the organization will be advised in writing of the proposed action and the reasons for it. 2011 tax forms federal   The organization will also be advised of its right to protest the proposed action by requesting Appeals Office consideration. 2011 tax forms federal The appeal procedures are discussed next. 2011 tax forms federal Appeal Procedures If your organization applies for tax-exempt status and EO Determination decides your organization does not qualify, your organization will be advised of its rights to protest the determination by requesting Appeals Office consideration. 2011 tax forms federal This process does not apply to determinations issued by EO Technical. 2011 tax forms federal Your organization must submit a statement of its views fully explaining its reasoning. 2011 tax forms federal The statement must be submitted within 30 days from the date of the adverse determination letter and must state whether it wishes Appeals Office consideration. 2011 tax forms federal Representation. 2011 tax forms federal   A principal officer or trustee can represent an organization at any level of appeal within the IRS. 2011 tax forms federal Also, an attorney, certified public accountant, or individual enrolled to practice before the IRS can represent the organization. 2011 tax forms federal   If the organization's representative attends a conference without a principal officer or trustee, the representative must file a proper power of attorney or a tax information authorization before receiving or inspecting confidential information. 2011 tax forms federal Form 2848 or Form 8821, Tax Information Authorization, as appropriate (or any other properly written power of attorney or authorization), can be used for this purpose. 2011 tax forms federal These forms can be obtained from the IRS. 2011 tax forms federal For more information, see Publication 947, Practice Before the IRS and Power of Attorney. 2011 tax forms federal Appeals Office Consideration EO Determinations will consider the statement protesting and appealing (hereinafter appealing) the adverse determination and decide if the information affects its determination. 2011 tax forms federal If the appeal does not provide a basis to reconsider its adverse determination, it will forward the appeal and case file to the Appeals Office. 2011 tax forms federal For more information about the role of the Appeals Office, see Publication 892, Exempt Organization Appeal Procedures for Unagreed Issues. 2011 tax forms federal The appeal should include the following information. 2011 tax forms federal The organization's name, address, daytime telephone number, and employer identification number. 2011 tax forms federal A statement that the organization wants to protest the determination. 2011 tax forms federal A copy of the letter showing the determination you disagree with, or the date and symbols on the determination letter. 2011 tax forms federal A statement of facts supporting the organization's position in any contested factual issue. 2011 tax forms federal A statement outlining the law or other authority the organization is relying on. 2011 tax forms federal A statement as to whether a conference at the Appeals Office is desired. 2011 tax forms federal The statement of facts in item 4 must be declared true under penalties of perjury. 2011 tax forms federal This may be done by adding to the protest the following signed declaration:   “Under penalties of perjury, I declare that I have examined the statement of facts presented in this protest and in any accompanying schedules and statements and, to the best of my knowledge and belief, it is true, correct, and complete. 2011 tax forms federal ”           Signature. 2011 tax forms federal   If the organization's representative submits the appeal, a substitute declaration must be included, stating: That the representative prepared the appeal and accompanying documents, and Whether the representative knows personally that the statements of fact contained in the appeal and accompanying documents are true and correct. 2011 tax forms federal Be sure the appeal contains all of the information requested. 2011 tax forms federal Incomplete appeals will be returned for completion. 2011 tax forms federal If a conference is requested, it will be held at the Appeals Office, unless the organization requests that the meeting be held at a field office convenient to both parties. 2011 tax forms federal The Appeals Office, after considering the organization's appeal as well as information presented in any conference held, will notify the organization of its decision and issue an appropriate determination letter. 2011 tax forms federal An adverse decision can be appealed to the courts (discussed later). 2011 tax forms federal The Appeals Office must request technical advice from EO Technical on any exempt organization issue concerning qualification for exemption or foundation status for which there is no published precedent or for which there is reason to believe that nonuniformity exists. 2011 tax forms federal If an organization believes that its case involves such an issue, it should ask the Appeals Office to request technical advice. 2011 tax forms federal Any determination letter issued on the basis of technical advice from EO Technical cannot be appealed to the Appeals Office for those issues that were the subject of the technical advice from EO Technical. 2011 tax forms federal EO Technical Consideration If an application is referred to EO Technical for issuance of a ruling and an adverse ruling is issued, the organization will be informed of the basis for the conclusion, its right to file a protest within 30 days, and its right to have a conference with EO Technical. 2011 tax forms federal Administrative Remedies In the case of an application under section 501(c)(3), all of the following actions, called administrative remedies, must be completed by your organization before an unfavorable ruling or determination letter from the IRS can be appealed to the courts. 2011 tax forms federal The filing of a substantially completed application Form 1023 or group exemption request under section 501(c)(3) (described earlier in this chapter) or the filing of a request for a determination of foundation status (see Private Foundations and Public Charities in chapter 3). 2011 tax forms federal In the case of a late-filed application, requesting relief under Regulations section 301. 2011 tax forms federal 9100 regarding applications for extensions of time for making an election or application for relief from tax (see Application for Recognition of Exemption in chapter 3). 2011 tax forms federal The timely submission of all additional information requested to perfect an exemption application or request for determination of private foundation status. 2011 tax forms federal Exhaustion of all administrative appeals available within the IRS, including protest of an adverse ruling issued by EO Technical in the case of an exemption application. 2011 tax forms federal The actions just described will not be considered completed until the IRS has had a reasonable time to act upon the appeal or protest, as the case may be. 2011 tax forms federal An organization will not be considered to have exhausted its administrative remedies before the earlier of: The completion of the steps just listed and the sending by certified or registered mail of a notice of final determination, or The expiration of the 270-day period in which the IRS has not issued a notice of final determination and the organization has taken, in a timely manner, all reasonable steps to secure a ruling or determination. 2011 tax forms federal 270-day period. 2011 tax forms federal   The 270-day period will be considered by the IRS to begin on the date a substantially completed Form 1023 or group exemption request is sent to the IRS. 2011 tax forms federal See Application Procedures , earlier, for information needed to complete Form 1023. 2011 tax forms federal   If the application does not contain all of the required items, it will not be further processed and may be returned to the applicant for completion. 2011 tax forms federal The 270-day period, in this event, will not be considered as starting until the date the application is remailed to the IRS with the requested information, or, if a postmark is not evident, on the date the IRS receives a substantially completed application. 2011 tax forms federal Appeal to Courts If the IRS issues an unfavorable determination letter or ruling to your organization and you have exhausted all the administrative remedies just discussed, your organization can seek judicial remedies. 2011 tax forms federal For example, if your organization has paid the tax resulting from the adverse determination and met all other statutory prerequisites, it can file suit for a refund in a U. 2011 tax forms federal S. 2011 tax forms federal District Court or the U. 2011 tax forms federal S. 2011 tax forms federal Court of Federal Claims. 2011 tax forms federal Or, if your organization elected not to pay the tax deficiency resulting from the adverse determination and met all other statutory prerequisites, it can file suit for a redetermination of the tax deficiencies in the United States Tax Court. 2011 tax forms federal For more information on these types of suits, get Publication 556, Examination of Returns, Appeal Rights, and Claims for Refund. 2011 tax forms federal In certain situations, your organization can file suit for a declaratory judgment in the U. 2011 tax forms federal S. 2011 tax forms federal District Court for the District of Columbia, the U. 2011 tax forms federal S. 2011 tax forms federal Court of Federal Claims, or the U. 2011 tax forms federal S. 2011 tax forms federal Tax Court. 2011 tax forms federal This remedy is available if your organization received an adverse notice of final determination, or if the IRS failed to make a timely determination on your initial or continuing qualification or classification as an exempt organization. 2011 tax forms federal However, your exempt status claim must be as: An organization qualifying under section 501(c)(3), An organization to which a deduction for a contribution is allowed under section 170(c)(2), An organization that is a private foundation under section 509(a), A private operating foundation under section 4942(j)(3), or A cooperative organization that is exempt from tax under section 521. 2011 tax forms federal Adverse notice of final determination. 2011 tax forms federal   The adverse notice of final determination referred to above is a ruling or determination letter sent by certified or registered mail holding that your organization: Is not described in section 501(c)(3) or section 170(c)(2), Is a private foundation as defined in section 4942(j)(3), or Is a public charity described in a part of section 509(a) or section 170(b)(1)(A) other than the part under which your organization requested classification. 2011 tax forms federal Favorable court rulings - IRS procedure. 2011 tax forms federal   If a suit results in a final determination that your organization is exempt from tax, the IRS will issue a favorable ruling or determination letter, provided your organization has filed an application for exemption and submitted a statement that the underlying facts and applicable law are the same as in the period considered by the court. 2011 tax forms federal Group Exemption Letter A group exemption letter is a ruling or determination letter issued to a central organization recognizing on a group basis the exemption under section 501(c) of subordinate organizations on whose behalf the central organization has applied for recognition of exemption. 2011 tax forms federal A central organization is an organization that has one or more subordinates under its general supervision or control. 2011 tax forms federal A subordinate organization is a chapter, local, post, or unit of a central organization. 2011 tax forms federal A central organization may be a subordinate itself, such as a state organization that has subordinate units and is itself affiliated with a national (central) organization. 2011 tax forms federal A subordinate organization may or may not be incorporated, but it must have an organizing document. 2011 tax forms federal A subordinate that is organized and operated in a foreign country cannot be included in a group exemption letter. 2011 tax forms federal A subordinate described in section 501(c)(3) cannot be included in a group exemption letter if it is a private foundation described in section 509(a). 2011 tax forms federal If your organization is a subordinate controlled by a central organization (for example, a church, a veterans' organization, or a fraternal organization), you should check with the central organization to see if it has been issued a group exemption letter that covers your organization. 2011 tax forms federal If it has, you do not have to file a separate application unless your organization no longer wants to be included in the group exemption letter. 2011 tax forms federal If the group exemption letter does not cover your organization, ask your central organization about being included in the next annual group ruling update that it submits to the IRS. 2011 tax forms federal Central Organization Application Procedure If your organization is a central organization with affiliated subordinates under its control, it can apply for a group exemption letter for its subordinates, provided it has obtained recognition of its own exemption before or concurrently with the group exemption. 2011 tax forms federal You should make the application for such subordinates by letter instead of submitting either Form 1023 or 1024. 2011 tax forms federal This procedure relieves each of the subordinates covered by a group exemption letter from filing its own application. 2011 tax forms federal A central organization obtains its own recognition of exemption by sending its application to the IRS address shown on Form 8718 or Form 1023. 2011 tax forms federal If the central organization has previously obtained recognition of its own exemption, it must indicate its employer identification number and the date of the letter recognizing its exemption. 2011 tax forms federal It need not forward documents already submitted. 2011 tax forms federal However, if it has not already done so, the central organization must submit a copy of any amendment to its governing instruments or internal regulations as well as any information about changes in its character, purposes, or method of operation. 2011 tax forms federal Employer identification number. 2011 tax forms federal   The central organization must have an EIN before it submits a completed exemption or group exemption application. 2011 tax forms federal Each subordinate must have its own EIN, even if it has no employees. 2011 tax forms federal When submitting its group exemption application, the central organization must provide an EIN for each subordinate organization. 2011 tax forms federal Information required for subordinate organizations. 2011 tax forms federal   In addition to the information required to obtain recognition of its own exemption, the central organization must submit information for those subordinates to be included in the group exemption letter. 2011 tax forms federal The information should be forwarded in a letter signed by a principal officer of the central organization setting forth or including as attachments the following. 2011 tax forms federal Information verifying that the subordinates: Are affiliated with the central organization at the close of its annual accounting period; Are subject to its general supervision or control; Are all eligible to qualify for exemption under the same paragraph of section 501(c), though not necessarily the paragraph under which the central organization itself is exempt; Are not private foundations if the application for a group exemption letter involves section 501(c)(3); Are all on the same accounting period as the central organization if they are to be included in group returns; and Are organizations that have been formed within the 15-month period preceding the date of submission of the group exemption application if they are claiming section 501(c)(3) status and are subject to the requirements of section 508(a) and wish to be recognized as exempt from their dates of creation (a group exemption letter may be issued covering subordinates, one or more of which have not been organized within the 15-month period preceding the date of submission, if all subordinates are willing to be recognized as exempt only from the date of application). 2011 tax forms federal A detailed description of the purposes and activities of the subordinates, including the sources of receipts and the nature of expenditures. 2011 tax forms federal A sample copy of a uniform governing instrument (such as a charter or articles of association) adopted by the subordinates, or, in its absence, copies of representative instruments. 2011 tax forms federal An affirmation to the effect that, to the best of the officer's knowledge, the purposes and activities of the subordinates are as stated in (2) and (3), above. 2011 tax forms federal A statement that each of the subordinates has provided a written authorization to the central organization, signed by an authorized officer of the subordinate, agreeing to be included in the group exemption (see also New 501(c)(3) organizations that want to be included , later in this section). 2011 tax forms federal A list of subordinates to be included in the group exemption letter to which the IRS has issued an outstanding ruling or determination letter relating to exemption. 2011 tax forms federal If the application for a group exemption letter involves section 501(c)(3) and is subject to the provisions of the Code requiring that it give timely notice that it is not a private foundation (see Private Foundations in chapter 3), an affirmation to the effect that, to the best of the officer's knowledge and belief, no subordinate to be included in the group exemption letter is a private foundation as defined in section 509(a). 2011 tax forms federal For each subordinate that is a school claiming exemption under section 501(c)(3), the information required by Revenue Ruling 71-447, 1971-2 C. 2011 tax forms federal B. 2011 tax forms federal 230 and Revenue Procedure 75-50, 1975-2 C. 2011 tax forms federal B. 2011 tax forms federal 587 (these requirements are fully described in chapter 3, under Private Schools ; see also Schedule B, Form 1023). 2011 tax forms federal For any school affiliated with a church, the information to show that the provisions of Revenue Ruling 75-231, 1975-1 C. 2011 tax forms federal B. 2011 tax forms federal 158, have been met. 2011 tax forms federal A list of the names, mailing addresses, actual addresses if different, and EINs of subordinates to be included in the group exemption letter. 2011 tax forms federal A current directory of subordinates may be furnished instead of the list if it includes the required information and if the subordinates not to be included in the group exemption letter are identified. 2011 tax forms federal New 501(c)(3) organizations that want to be included. 2011 tax forms federal   A new organization, described in section 501(c)(3), that wants to be included in a group exemption letter must submit its authorization (as explained in item number 5, earlier, under Information required for subordinate organizations ) to the central organization before the end of the 15th month after it was formed in order to satisfy the requirement of section 508(a). 2011 tax forms federal The central organization must also include this subordinate in its next annual submission of information, as discussed later, under Information Required Annually . 2011 tax forms federal Keeping the Group Exemption Letter in Force Continued effectiveness of a group exemption letter is based on the following conditions. 2011 tax forms federal The continued existence of the central organization. 2011 tax forms federal The continued qualification of the central organization for exemption under section 501(c). 2011 tax forms federal The submission by the central organization of the information regarding its subordinate organizations that is required annually (described under Information Required Annually). 2011 tax forms federal The annual filing of an information return (Form 990, for example) by the central organization if required. 2011 tax forms federal The continued effectiveness of a group exemption letter as to a particular subordinate is based on these four conditions, as well as on the continued conformity by the subordinate to the requirements for inclusion in a group exemption letter, the authorization for inclusion, and the annual filing of any required information return for the subordinate. 2011 tax forms federal Information Required Annually To maintain a group exemption letter, the central organization must submit annually, at least 90 days before the close of its annual accounting period, all of the following information. 2011 tax forms federal Information about all changes in the purposes, character, or method of operation of the subordinates included in the group exemption letter. 2011 tax forms federal A separate list (that includes the names, mailing addresses, actual addresses if different, and EINs of the affected subordinates) for each of the three following categories. 2011 tax forms federal Subordinates that have changed their names or addresses during the year. 2011 tax forms federal Subordinates no longer to be included in the group exemption letter because they no longer exist or have disaffiliated from or withdrawn their authorization to the central organization. 2011 tax forms federal Subordinates to be added to the group exemption letter because they are newly organized or affiliated or because they have recently authorized the central organization to include them. 2011 tax forms federal An annotated directory of subordinates will not be accepted for this purpose. 2011 tax forms federal If there were none of the above changes, the central organization must submit a statement to that effect. 2011 tax forms federal The same information about new subordinates that was required in the initial application for group exemption. 2011 tax forms federal (This information is listed in items 1 through 10, under Information required for subordinate organizations. 2011 tax forms federal , earlier. 2011 tax forms federal ) If a new subordinate does not differ in any material respects from the subordinates included in the application for group exemption, however, a statement to this effect may be submitted in lieu of detailed information. 2011 tax forms federal The organization should send this information to:   Ogden Service Center  Mail Stop 6271 Ogden, UT 84404-4749 Submitting the required information annually does not relieve the central organization or any of its subordinates of the duty to submit any other information that may be required by an EO area manager to determine whether the conditions for continued exemption are being met. 2011 tax forms federal Events Causing Loss of Group Exemption A group exemption letter no longer has effect, for either a particular subordinate or the group as a whole, when: The central organization notifies the IRS that it is going out of existence, The central organization notifies the IRS, by its annual submission or otherwise, that any of its subordinates will no longer fulfill the conditions for continued effectiveness, explained earlier, or The IRS notifies the central organization or the affected subordinate that the group exemption letter will no longer have effect for some or all of the group because the conditions for continued effectiveness of a group exemption letter have not been fulfilled. 2011 tax forms federal When notice is given under any of these three conditions, the IRS will no longer recognize the exempt status of the affected subordinates until they file separate applications on their own behalf or the central organization files complete supporting information for their reinclusion in the group exemption at the time of its annual submission. 2011 tax forms federal However, when the notice is given by the IRS and the withdrawal of recognition is based on the failure of the organization to comply with the requirements for recognition of tax-exempt status under the particular subsection of section 501(c), the revocation will ordinarily take effect as of the date of that failure. 2011 tax forms federal The notice, however, will be given only after the appeal procedures described earlier in this chapter are completed. 2011 tax forms federal Prev  Up  Next   Home   More Online Publications