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2012 Amended Tax Return

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2012 Amended Tax Return

2012 amended tax return 11. 2012 amended tax return   Other Expenses Table of Contents What's New Introduction Topics - This chapter discusses: Useful Items - You may want to see: Reimbursement of Travel, Meals, and EntertainmentReimbursements Miscellaneous ExpensesMeaning of generally enforced. 2012 amended tax return Kickbacks. 2012 amended tax return Form 1099-MISC. 2012 amended tax return Exception. 2012 amended tax return Tax preparation fees. 2012 amended tax return Covered executive branch official. 2012 amended tax return Exceptions to denial of deduction. 2012 amended tax return Indirect political contributions. 2012 amended tax return Type of deduction. 2012 amended tax return Repayment—$3,000 or less. 2012 amended tax return Repayment—over $3,000. 2012 amended tax return Method 1. 2012 amended tax return Method 2. 2012 amended tax return Repayment does not apply. 2012 amended tax return Year of deduction (or credit). 2012 amended tax return Telephone. 2012 amended tax return What's New Standard mileage rate. 2012 amended tax return  Beginning in 2013, the standard mileage rate for the cost of operating your car, van, pickup, or panel truck for business use is 56. 2012 amended tax return 5 cents per mile. 2012 amended tax return For more information, see Car and truck expenses under Miscellaneous Expenses. 2012 amended tax return Introduction This chapter covers business expenses that may not have been explained to you, as a business owner, in previous chapters of this publication. 2012 amended tax return Topics - This chapter discusses: Travel, meals, and entertainment Bribes and kickbacks Charitable contributions Education expenses Lobbying expenses Penalties and fines Repayments (claim of right) Other miscellaneous expenses Useful Items - You may want to see: Publication 15-B Employer's Tax Guide to Fringe Benefits 463 Travel, Entertainment, Gift, and Car Expenses 526 Charitable Contributions 529 Miscellaneous Deductions 544 Sales and Other Dispositions of Assets 970 Tax Benefits for Education 1542 Per Diem Rates See chapter 12 for information about getting publications and forms. 2012 amended tax return Reimbursement of Travel, Meals, and Entertainment The following discussion explains how to handle any reimbursements or allowances you may provide to your employees under a reimbursement or allowance arrangement for travel, meals, and entertainment expenses. 2012 amended tax return If you are self-employed and report your income and expenses on Schedule C or C-EZ (Form 1040), see Publication 463. 2012 amended tax return To be deductible for tax purposes, expenses incurred for travel, meals, and entertainment must be ordinary and necessary expenses incurred while carrying on your trade or business. 2012 amended tax return Generally, you also must show that entertainment expenses (including meals) are directly related to, or associated with, the conduct of your trade or business. 2012 amended tax return For more information on travel, meals, and entertainment, including deductibility, see Publication 463. 2012 amended tax return Reimbursements A “reimbursement or allowance arrangement” provides for payment of advances, reimbursements, and allowances for travel, meals, and entertainment expenses incurred by your employees during the ordinary course of business. 2012 amended tax return If the expenses are substantiated, you can deduct the allowable amount on your tax return. 2012 amended tax return Because of differences between accounting methods and tax law, the amount you can deduct for tax purposes may not be the same as the amount you deduct on your business books and records. 2012 amended tax return For example, you can deduct 100% of the cost of meals on your business books and records. 2012 amended tax return However, only 50% of these costs are allowed by law as a tax deduction. 2012 amended tax return How you deduct a business expense under a reimbursement or allowance arrangement depends on whether you have: An accountable plan, or A nonaccountable plan. 2012 amended tax return If you reimburse these expenses under an accountable plan, deduct them as travel, meals, or entertainment expenses. 2012 amended tax return If you reimburse these expenses under a nonaccountable plan, report the reimbursements as wages on Form W-2, Wage and Tax Statement, and deduct them as wages on the appropriate line of your tax return. 2012 amended tax return If you make a single payment to your employees and it includes both wages and an expense reimbursement, you must specify the amount of the reimbursement and report it accordingly. 2012 amended tax return See Table 11-1 , Reporting Reimbursements. 2012 amended tax return Accountable Plans An accountable plan requires your employees to meet all of the following requirements. 2012 amended tax return Each employee must: Have paid or incurred deductible expenses while performing services as your employee, Adequately account to you for these expenses within a reasonable period of time, and Return any excess reimbursement or allowance within a reasonable period of time. 2012 amended tax return An arrangement under which you advance money to employees is treated as meeting (3) above only if the following requirements are also met. 2012 amended tax return The advance is reasonably calculated not to exceed the amount of anticipated expenses. 2012 amended tax return You make the advance within a reasonable period of time of your employee paying or incurring the expense. 2012 amended tax return If any expenses reimbursed under this arrangement are not substantiated, or an excess reimbursement is not returned within a reasonable period of time by an employee, you cannot treat these expenses as reimbursed under an accountable plan. 2012 amended tax return Instead, treat the reimbursed expenses as paid under a nonaccountable plan, discussed later. 2012 amended tax return Adequate accounting. 2012 amended tax return   Your employees must adequately account to you for their travel, meals, and entertainment expenses. 2012 amended tax return They must give you documentary evidence of their travel, mileage, and other employee business expenses. 2012 amended tax return This evidence should include items such as receipts, along with either a statement of expenses, an account book, a day-planner, or similar record in which the employee entered each expense at or near the time the expense was incurred. 2012 amended tax return Excess reimbursement or allowance. 2012 amended tax return   An excess reimbursement or allowance is any amount you pay to an employee that is more than the business-related expenses for which the employee adequately accounted. 2012 amended tax return The employee must return any excess reimbursement or other expense allowance to you within a reasonable period of time. 2012 amended tax return Reasonable period of time. 2012 amended tax return   A reasonable period of time depends on the facts and circumstances. 2012 amended tax return Generally, actions that take place within the times specified in the following list will be treated as taking place within a reasonable period of time. 2012 amended tax return You give an advance within 30 days of the time the employee pays or incurs the expense. 2012 amended tax return Your employees adequately account for their expenses within 60 days after the expenses were paid or incurred. 2012 amended tax return Your employees return any excess reimbursement within 120 days after the expenses were paid or incurred. 2012 amended tax return You give a periodic statement (at least quarterly) to your employees that asks them to either return or adequately account for outstanding advances and they comply within 120 days of the date of the statement. 2012 amended tax return How to deduct. 2012 amended tax return   You can claim a deduction for travel, meals, and entertainment expenses if you reimburse your employees for these expenses under an accountable plan. 2012 amended tax return Generally, the amount you can deduct for meals and entertainment is subject to a 50% limit, discussed later. 2012 amended tax return If you are a sole proprietor, or are filing as a single member limited liability company, deduct the travel reimbursement on line 24a and the deductible part of the meals and entertainment reimbursement on line 24b, Schedule C (Form 1040) or line 2, Schedule C-EZ (Form 1040). 2012 amended tax return   If you are filing an income tax return for a corporation, include the reimbursement on the Other deductions line of Form 1120, U. 2012 amended tax return S. 2012 amended tax return Corporation Income Tax Return. 2012 amended tax return If you are filing any other business income tax return, such as a partnership or S corporation return, deduct the reimbursement on the appropriate line of the return as provided in the instructions for that return. 2012 amended tax return Table 11-1. 2012 amended tax return Reporting Reimbursements IF the type of reimbursement (or other expense allowance) arrangement is under THEN the employer reports on Form W-2 An accountable plan with: Actual expense reimbursement:  Adequate accounting made and excess returned No amount. 2012 amended tax return Actual expense reimbursement:  Adequate accounting and return of excess both required but excess not returned The excess amount as wages in box 1. 2012 amended tax return Per diem or mileage allowance up to the federal rate:  Adequate accounting made and excess returned No amount. 2012 amended tax return Per diem or mileage allowance up to the federal rate:  Adequate accounting and return of excess both required but excess not returned The excess amount as wages in box 1. 2012 amended tax return The amount up to the federal rate is reported only in box 12—it is not reported in box 1. 2012 amended tax return Per diem or mileage allowance exceeds the federal rate:  Adequate accounting made up to the federal rate only and excess not returned The excess amount as wages in box 1. 2012 amended tax return The amount up to the federal rate is reported only in box 12—it is not reported in box 1. 2012 amended tax return A nonaccountable plan with: Either adequate accounting or return of excess, or both, not required by plan The entire amount as wages in box 1. 2012 amended tax return No reimbursement plan The entire amount as wages in box 1. 2012 amended tax return Per Diem and Car Allowances You can reimburse your employees under an accountable plan based on travel days, miles, or some other fixed allowance. 2012 amended tax return In these cases, your employee is considered to have accounted to you for the amount of the expense that does not exceed the rates established by the federal government. 2012 amended tax return Your employee must actually substantiate to you the other elements of the expense, such as time, place, and business purpose. 2012 amended tax return Federal rate. 2012 amended tax return   The federal rate can be figured using any one of the following methods. 2012 amended tax return For car expenses: The standard mileage rate. 2012 amended tax return A fixed and variable rate (FAVR). 2012 amended tax return For per diem amounts: The regular federal per diem rate. 2012 amended tax return The standard meal allowance. 2012 amended tax return The high-low rate. 2012 amended tax return Car allowance. 2012 amended tax return   Your employee is considered to have accounted to you for car expenses that do not exceed the standard mileage rate. 2012 amended tax return Beginning in 2013, the standard business mileage rate is 56. 2012 amended tax return 5 cents per mile. 2012 amended tax return   You can choose to reimburse your employees using a fixed and variable rate (FAVR) allowance. 2012 amended tax return This is an allowance that includes a combination of payments covering fixed and variable costs, such as a cents-per-mile rate to cover your employees' variable operating costs (such as gas, oil, etc. 2012 amended tax return ) plus a flat amount to cover your employees' fixed costs (such as depreciation, insurance, etc. 2012 amended tax return ). 2012 amended tax return For information on using a FAVR allowance, see Revenue Procedure 2010-51, available at www. 2012 amended tax return irs. 2012 amended tax return gov/irb/2010-51_IRB/ar14. 2012 amended tax return html and Notice 2012-72, available at www. 2012 amended tax return irs. 2012 amended tax return gov/irb/2012-50_IRB/ar10. 2012 amended tax return html. 2012 amended tax return Per diem allowance. 2012 amended tax return   If your employee actually substantiates to you the other elements (discussed earlier) of the expenses reimbursed using the per diem allowance, how you report and deduct the allowance depends on whether the allowance is for lodging and meal expenses or for meal expenses only and whether the allowance is more than the federal rate. 2012 amended tax return Regular federal per diem rate. 2012 amended tax return   The regular federal per diem rate is the highest amount the federal government will pay to its employees while away from home on travel. 2012 amended tax return It has two components: Lodging expense, and Meal and incidental expense (M&IE). 2012 amended tax return The rates are different for different locations. 2012 amended tax return Publication 1542 lists the rates in the continental United States. 2012 amended tax return Standard meal allowance. 2012 amended tax return   The federal rate for meal and incidental expenses (M&IE) is the standard meal allowance. 2012 amended tax return You can pay only an M&IE allowance to employees who travel away from home if: You pay the employee for actual expenses for lodging based on receipts submitted to you, You provide for the lodging, You pay for the actual expense of the lodging directly to the provider, You do not have a reasonable belief that lodging expenses were incurred by the employee, or The allowance is computed on a basis similar to that used in computing the employee's wages (that is, number of hours worked or miles traveled). 2012 amended tax return Internet access. 2012 amended tax return    Per diem rates are available on the Internet. 2012 amended tax return You can access per diem rates at www. 2012 amended tax return gsa. 2012 amended tax return gov/perdiemrates. 2012 amended tax return High-low method. 2012 amended tax return   This is a simplified method of computing the federal per diem rate for travel within the continental United States. 2012 amended tax return It eliminates the need to keep a current list of the per diem rate for each city. 2012 amended tax return   Under the high-low method, the per diem amount for travel during January through September of 2013 is $242 ($65 for M&IE) for certain high-cost locations. 2012 amended tax return All other areas have a per diem amount of $163 ($52 for M&IE). 2012 amended tax return The high-cost locations eligible for the higher per diem amount under the high-low method are listed in Publication 1542. 2012 amended tax return   Effective October 1, 2013, the per diem rate for high-cost locations increased to $251 ($65 for M&IE). 2012 amended tax return The rate for all other locations increased to $170 ($52 for M&IE). 2012 amended tax return For October, November, and December 2013, you can either continue to use the rates described in the preceding paragraph or change to the new rates. 2012 amended tax return However, you must use the same rate for all employees reimbursed under the high-low method. 2012 amended tax return   For more information about the high-low method, see Notice 2013-65, available at www. 2012 amended tax return irs. 2012 amended tax return gov/irb/2013-44_IRB/ar13. 2012 amended tax return html. 2012 amended tax return See Publication 1542 (available on the Internet at IRS. 2012 amended tax return gov) for the current per diem rates for all locations. 2012 amended tax return Reporting per diem and car allowances. 2012 amended tax return   The following discussion explains how to report per diem and car allowances. 2012 amended tax return The manner in which you report them depends on how the allowance compares to the federal rate. 2012 amended tax return See Table 11-1. 2012 amended tax return Allowance less than or equal to the federal rate. 2012 amended tax return   If your allowance for the employee is less than or equal to the appropriate federal rate, that allowance is not included as part of the employee's pay in box 1 of the employee's Form W-2. 2012 amended tax return Deduct the allowance as travel expenses (including meals that may be subject to the 50% limit, discussed later). 2012 amended tax return See How to deduct under Accountable Plans, earlier. 2012 amended tax return Allowance more than the federal rate. 2012 amended tax return   If your employee's allowance is more than the appropriate federal rate, you must report the allowance as two separate items. 2012 amended tax return   Include the allowance amount up to the federal rate in box 12 (code L) of the employee's Form W-2. 2012 amended tax return Deduct it as travel expenses (as explained above). 2012 amended tax return This part of the allowance is treated as reimbursed under an accountable plan. 2012 amended tax return   Include the amount that is more than the federal rate in box 1 (and in boxes 3 and 5 if they apply) of the employee's Form W-2. 2012 amended tax return Deduct it as wages subject to income tax withholding, social security, Medicare, and federal unemployment taxes. 2012 amended tax return This part of the allowance is treated as reimbursed under a nonaccountable plan as explained later under Nonaccountable Plans. 2012 amended tax return Meals and Entertainment Under an accountable plan, you can generally deduct only 50% of any otherwise deductible business-related meal and entertainment expenses you reimburse your employees. 2012 amended tax return The deduction limit applies even if you reimburse them for 100% of the expenses. 2012 amended tax return Application of the 50% limit. 2012 amended tax return   The 50% deduction limit applies to reimbursements you make to your employees for expenses they incur for meals while traveling away from home on business and for entertaining business customers at your place of business, a restaurant, or another location. 2012 amended tax return It applies to expenses incurred at a business convention or reception, business meeting, or business luncheon at a club. 2012 amended tax return The deduction limit may also apply to meals you furnish on your premises to your employees. 2012 amended tax return Related expenses. 2012 amended tax return   Taxes and tips relating to a meal or entertainment activity you reimburse to your employee under an accountable plan are included in the amount subject to the 50% limit. 2012 amended tax return Reimbursements you make for expenses, such as cover charges for admission to a nightclub, rent paid for a room to hold a dinner or cocktail party, or the amount you pay for parking at a sports arena, are all subject to the 50% limit. 2012 amended tax return However, the cost of transportation to and from an otherwise allowable business meal or a business-related entertainment activity is not subject to the 50% limit. 2012 amended tax return Amount subject to 50% limit. 2012 amended tax return   If you provide your employees with a per diem allowance only for meal and incidental expenses, the amount treated as an expense for food and beverages is the lesser of the following. 2012 amended tax return The per diem allowance. 2012 amended tax return The federal rate for M&IE. 2012 amended tax return   If you provide your employees with a per diem allowance that covers lodging, meals, and incidental expenses, you must treat an amount equal to the federal M&IE rate for the area of travel as an expense for food and beverages. 2012 amended tax return If the per diem allowance you provide is less than the federal per diem rate for the area of travel, you can treat 40% of the per diem allowance as the amount for food and beverages. 2012 amended tax return Meal expenses when subject to “hours of service” limits. 2012 amended tax return   You can deduct 80% of the cost of reimbursed meals your employees consume while away from their tax home on business during, or incident to, any period subject to the Department of Transportation's “hours of service” limits. 2012 amended tax return   See Publication 463 for a detailed discussion of individuals subject to the Department of Transportation's “hours of service” limits. 2012 amended tax return De minimis (minimal) fringe benefit. 2012 amended tax return   The 50% limit does not apply to an expense for food or beverage that is excluded from the gross income of an employee because it is a de minimis fringe benefit. 2012 amended tax return See Publication 15-B for additional information on de minimis fringe benefits. 2012 amended tax return Company cafeteria or executive dining room. 2012 amended tax return   The cost of food and beverages you provide primarily to your employees on your business premises is deductible. 2012 amended tax return This includes the cost of maintaining the facilities for providing the food and beverages. 2012 amended tax return These expenses are subject to the 50% limit unless they qualify as a de minimis fringe benefit, as just discussed, or unless they are compensation to your employees (explained later). 2012 amended tax return Employee activities. 2012 amended tax return   The expense of providing recreational, social, or similar activities (including the use of a facility) for your employees is deductible and is not subject to the 50% limit. 2012 amended tax return The benefit must be primarily for your employees who are not highly compensated. 2012 amended tax return   For this purpose, a highly compensated employee is an employee who meets either of the following requirements. 2012 amended tax return Owned a 10% or more interest in the business during the year or the preceding year. 2012 amended tax return An employee is treated as owning any interest owned by his or her brother, sister, spouse, ancestors, and lineal descendants. 2012 amended tax return Received more than $115,000 in pay for the preceding year. 2012 amended tax return You can choose to include only employees who were also in the top 20% of employees when ranked by pay for the preceding year. 2012 amended tax return   For example, the expenses for food, beverages, and entertainment for a company-wide picnic are not subject to the 50% limit. 2012 amended tax return Meals or entertainment treated as compensation. 2012 amended tax return   The 50% limit does not apply to either of the following. 2012 amended tax return Expenses for meals or entertainment that you treat as: Compensation to an employee who was the recipient of the meals or entertainment, and Wages subject to withholding of federal income tax. 2012 amended tax return Expenses for meals or entertainment if: A recipient of the meals or entertainment who is not your employee has to include the expenses in gross income as compensation for services or as a prize or award, and You include that amount on a Form 1099 issued to the recipient, if a Form 1099 is required. 2012 amended tax return Sales of meals or entertainment. 2012 amended tax return   You can deduct the cost of meals or entertainment (including the use of facilities) you sell to the public. 2012 amended tax return For example, if you run a nightclub, your expense for the entertainment you furnish to your customers, such as a floor show, is a business expense that is fully deductible. 2012 amended tax return The 50% limit does not apply to this expense. 2012 amended tax return Providing meals or entertainment to general public to promote goodwill. 2012 amended tax return   You can deduct the cost of providing meals, entertainment, or recreational facilities to the general public as a means of advertising or promoting goodwill in the community. 2012 amended tax return The 50% limit does not apply to this expense. 2012 amended tax return Director, stockholder, or employee meetings. 2012 amended tax return   You can deduct entertainment expenses directly related to business meetings of your employees, partners, stockholders, agents, or directors. 2012 amended tax return You can provide some minor social activities, but the main purpose of the meeting must be your company's business. 2012 amended tax return These expenses are subject to the 50% limit. 2012 amended tax return Trade association meetings. 2012 amended tax return   You can deduct expenses directly related to and necessary for attending business meetings or conventions of certain tax-exempt organizations. 2012 amended tax return These organizations include business leagues, chambers of commerce, real estate boards, and trade and professional associations. 2012 amended tax return Nonaccountable Plans A nonaccountable plan is an arrangement that does not meet the requirements for an accountable plan. 2012 amended tax return All amounts paid, or treated as paid, under a nonaccountable plan are reported as wages on Form W-2. 2012 amended tax return The payments are subject to income tax withholding, social security, Medicare, and federal unemployment taxes. 2012 amended tax return You can deduct the reimbursement as compensation or wages only to the extent it meets the deductibility tests for employees' pay in chapter 2. 2012 amended tax return Deduct the allowable amount as compensation or wages on the appropriate line of your income tax return, as provided in its instructions. 2012 amended tax return Miscellaneous Expenses In addition to travel, meal, and entertainment expenses, there are other expenses you can deduct. 2012 amended tax return Advertising expenses. 2012 amended tax return   You generally can deduct reasonable advertising expenses that are directly related to your business activities. 2012 amended tax return Generally, you cannot deduct amounts paid to influence legislation (i. 2012 amended tax return e. 2012 amended tax return , lobbying). 2012 amended tax return See Lobbying expenses , later. 2012 amended tax return   You can usually deduct as a business expense the cost of institutional or goodwill advertising to keep your name before the public if it relates to business you reasonably expect to gain in the future. 2012 amended tax return For example, the cost of advertising that encourages people to contribute to the Red Cross, to buy U. 2012 amended tax return S. 2012 amended tax return Savings Bonds, or to participate in similar causes is usually deductible. 2012 amended tax return Anticipated liabilities. 2012 amended tax return   Anticipated liabilities or reserves for anticipated liabilities are not deductible. 2012 amended tax return For example, assume you sold 1-year TV service contracts this year totaling $50,000. 2012 amended tax return From experience, you know you will have expenses of about $15,000 in the coming year for these contracts. 2012 amended tax return You cannot deduct any of the $15,000 this year by charging expenses to a reserve or liability account. 2012 amended tax return You can deduct your expenses only when you actually pay or accrue them, depending on your accounting method. 2012 amended tax return Bribes and kickbacks. 2012 amended tax return   Engaging in the payment of bribes or kickbacks is a serious criminal matter. 2012 amended tax return Such activity could result in criminal prosecution. 2012 amended tax return Any payments that appear to have been made, either directly or indirectly, to an official or employee of any government or an agency or instrumentality of any government are not deductible for tax purposes and are in violation of the law. 2012 amended tax return   Payments paid directly or indirectly to a person in violation of any federal or state law (but only if that state law is generally enforced, defined below) that provides for a criminal penalty or for the loss of a license or privilege to engage in a trade or business are also not allowed as a deduction for tax purposes. 2012 amended tax return Meaning of “generally enforced. 2012 amended tax return ”   A state law is considered generally enforced unless it is never enforced or enforced only for infamous persons or persons whose violations are extraordinarily flagrant. 2012 amended tax return For example, a state law is generally enforced unless proper reporting of a violation of the law results in enforcement only under unusual circumstances. 2012 amended tax return Kickbacks. 2012 amended tax return   A kickback is a payment for referring a client, patient, or customer. 2012 amended tax return The common kickback situation occurs when money or property is given to someone as payment for influencing a third party to purchase from, use the services of, or otherwise deal with the person who pays the kickback. 2012 amended tax return In many cases, the person whose business is being sought or enjoyed by the person who pays the kickback is not aware of the payment. 2012 amended tax return   For example, the Yard Corporation is in the business of repairing ships. 2012 amended tax return It returns 10% of the repair bills as kickbacks to the captains and chief officers of the vessels it repairs. 2012 amended tax return Although this practice is considered an ordinary and necessary expense of getting business, it is clearly a violation of a state law that is generally enforced. 2012 amended tax return These expenditures are not deductible for tax purposes, whether or not the owners of the shipyard are subsequently prosecuted. 2012 amended tax return Form 1099-MISC. 2012 amended tax return   It does not matter whether any kickbacks paid during the tax year are deductible on your income tax return in regards to information reporting. 2012 amended tax return See Form 1099-MISC for more information. 2012 amended tax return Car and truck expenses. 2012 amended tax return   The costs of operating a car, truck, or other vehicle in your business are deductible. 2012 amended tax return For more information on how to figure your deduction, see Publication 463. 2012 amended tax return Charitable contributions. 2012 amended tax return   Cash payments to an organization, charitable or otherwise, may be deductible as business expenses if the payments are not charitable contributions or gifts and are directly related to your business. 2012 amended tax return If the payments are charitable contributions or gifts, you cannot deduct them as business expenses. 2012 amended tax return However, corporations (other than S corporations) can deduct charitable contributions on their income tax returns, subject to limitations. 2012 amended tax return See the Instructions for Form 1120 for more information. 2012 amended tax return Sole proprietors, partners in a partnership, or shareholders in an S corporation may be able to deduct charitable contributions made by their business on Schedule A (Form 1040). 2012 amended tax return Example. 2012 amended tax return You paid $15 to a local church for a half-page ad in a program for a concert it is sponsoring. 2012 amended tax return The purpose of the ad was to encourage readers to buy your products. 2012 amended tax return Your payment is not a charitable contribution. 2012 amended tax return You can deduct it as an advertising expense. 2012 amended tax return Example. 2012 amended tax return You made a $100,000 donation to a committee organized by the local Chamber of Commerce to bring a convention to your city, intended to increase business activity, including yours. 2012 amended tax return Your payment is not a charitable contribution. 2012 amended tax return You can deduct it as a business expense. 2012 amended tax return See Publication 526 for a discussion of donated inventory, including capital gain property. 2012 amended tax return Club dues and membership fees. 2012 amended tax return   Generally, you cannot deduct amounts paid or incurred for membership in any club organized for business, pleasure, recreation, or any other social purpose. 2012 amended tax return This includes country clubs, golf and athletic clubs, hotel clubs, sporting clubs, airline clubs, and clubs operated to provide meals under circumstances generally considered to be conducive to business discussions. 2012 amended tax return Exception. 2012 amended tax return   The following organizations are not treated as clubs organized for business, pleasure, recreation, or other social purpose unless one of the main purposes is to conduct entertainment activities for members or their guests or to provide members or their guests with access to entertainment facilities. 2012 amended tax return Boards of trade. 2012 amended tax return Business leagues. 2012 amended tax return Chambers of commerce. 2012 amended tax return Civic or public service organizations. 2012 amended tax return Professional organizations such as bar associations and medical associations. 2012 amended tax return Real estate boards. 2012 amended tax return Trade associations. 2012 amended tax return Credit card convenience fees. 2012 amended tax return   Credit card companies charge a fee to businesses who accept their cards. 2012 amended tax return This fee when paid or incurred by the business can be deducted as a business expense. 2012 amended tax return Damages recovered. 2012 amended tax return   Special rules apply to compensation you receive for damages sustained as a result of patent infringement, breach of contract or fiduciary duty, or antitrust violations. 2012 amended tax return You must include this compensation in your income. 2012 amended tax return However, you may be able to take a special deduction. 2012 amended tax return The deduction applies only to amounts recovered for actual economic injury, not any additional amount. 2012 amended tax return The deduction is the smaller of the following. 2012 amended tax return The amount you received or accrued for damages in the tax year reduced by the amount you paid or incurred in the year to recover that amount. 2012 amended tax return Your losses from the injury you have not deducted. 2012 amended tax return Demolition expenses or losses. 2012 amended tax return   Amounts paid or incurred to demolish a structure are not deductible. 2012 amended tax return These amounts are added to the basis of the land where the demolished structure was located. 2012 amended tax return Any loss for the remaining undepreciated basis of a demolished structure would not be recognized until the property is disposed of. 2012 amended tax return Education expenses. 2012 amended tax return   Ordinary and necessary expenses paid for the cost of the education and training of your employees are deductible. 2012 amended tax return See Education Expenses in chapter 2. 2012 amended tax return   You can also deduct the cost of your own education (including certain related travel) related to your trade or business. 2012 amended tax return You must be able to show the education maintains or improves skills required in your trade or business, or that it is required by law or regulations, for keeping your license to practice, status, or job. 2012 amended tax return For example, an attorney can deduct the cost of attending Continuing Legal Education (CLE) classes that are required by the state bar association to maintain his or her license to practice law. 2012 amended tax return   Education expenses you incur to meet the minimum requirements of your present trade or business, or those that qualify you for a new trade or business, are not deductible. 2012 amended tax return This is true even if the education maintains or improves skills presently required in your business. 2012 amended tax return For more information on education expenses, see Publication 970. 2012 amended tax return Franchise, trademark, trade name. 2012 amended tax return   If you buy a franchise, trademark, or trade name, you can deduct the amount you pay or incur as a business expense only if your payments are part of a series of payments that are: Contingent on productivity, use, or disposition of the item, Payable at least annually for the entire term of the transfer agreement, and Substantially equal in amount (or payable under a fixed formula). 2012 amended tax return   When determining the term of the transfer agreement, include all renewal options and any other period for which you and the transferrer reasonably expect the agreement to be renewed. 2012 amended tax return   A franchise includes an agreement that gives one of the parties to the agreement the right to distribute, sell, or provide goods, services, or facilities within a specified area. 2012 amended tax return Impairment-related expenses. 2012 amended tax return   If you are disabled, you can deduct expenses necessary for you to be able to work (impairment-related expenses) as a business expense, rather than as a medical expense. 2012 amended tax return   You are disabled if you have either of the following. 2012 amended tax return A physical or mental disability (for example, blindness or deafness) that functionally limits your being employed. 2012 amended tax return A physical or mental impairment that substantially limits one or more of your major life activities. 2012 amended tax return   The expense qualifies as a business expense if all the following apply. 2012 amended tax return Your work clearly requires the expense for you to satisfactorily perform that work. 2012 amended tax return The goods or services purchased are clearly not needed or used, other than incidentally, in your personal activities. 2012 amended tax return Their treatment is not specifically provided for under other tax law provisions. 2012 amended tax return Example. 2012 amended tax return You are blind. 2012 amended tax return You must use a reader to do your work, both at and away from your place of work. 2012 amended tax return The reader's services are only for your work. 2012 amended tax return You can deduct your expenses for the reader as a business expense. 2012 amended tax return Internet-related expenses. 2012 amended tax return   Generally, you can deduct internet-related expenses including domain registrations fees and webmaster consulting costs. 2012 amended tax return If you are starting a business you may have to amortize these expenses as start-up costs. 2012 amended tax return For more information about amortizing start-up and organizational costs, see chapter 8. 2012 amended tax return Interview expense allowances. 2012 amended tax return   Reimbursements you make to job candidates for transportation or other expenses related to interviews for possible employment are not wages. 2012 amended tax return You can deduct the reimbursements as a business expense. 2012 amended tax return However, expenses for food, beverages, and entertainment are subject to the 50% limit discussed earlier under Meals and Entertainment. 2012 amended tax return Legal and professional fees. 2012 amended tax return   Fees charged by accountants and attorneys that are ordinary and necessary expenses directly related to operating your business are deductible as business expenses. 2012 amended tax return However, usually legal fees you pay to acquire business assets are not deductible. 2012 amended tax return These costs are added to the basis of the property. 2012 amended tax return   Fees that include payments for work of a personal nature (such as drafting a will, or damages arising from a personal injury) are not allowed as a business deduction on Schedule C or C-EZ. 2012 amended tax return If the invoice includes both business and personal charges, compute the business portion as follows: multiply the total amount of the bill by a fraction, the numerator of which is the amount attributable to business matters, the denominator of which is the total amount paid. 2012 amended tax return The result is the portion of the invoice attributable to business expenses. 2012 amended tax return The portion attributable to personal matters is the difference between the total amount and the business portion (computed above). 2012 amended tax return   Legal fees relating to personal tax advice may be deductible on Schedule A (Form 1040), if you itemize deductions. 2012 amended tax return However, the deduction is subject to the 2% limitation on miscellaneous itemized deductions. 2012 amended tax return See Publication 529, Miscellaneous Deductions. 2012 amended tax return Tax preparation fees. 2012 amended tax return   The cost of hiring a tax professional, such as a C. 2012 amended tax return P. 2012 amended tax return A. 2012 amended tax return , to prepare that part of your tax return relating to your business as a sole proprietor is deductible on Schedule C or Schedule C-EZ. 2012 amended tax return Any remaining cost may be deductible on Schedule A (Form 1040) if you itemize deductions. 2012 amended tax return   You can also claim a business deduction for amounts paid or incurred in resolving asserted tax deficiencies for your business operated as a sole proprietor. 2012 amended tax return Licenses and regulatory fees. 2012 amended tax return   Licenses and regulatory fees for your trade or business paid annually to state or local governments generally are deductible. 2012 amended tax return Some licenses and fees may have to be amortized. 2012 amended tax return See chapter 8 for more information. 2012 amended tax return Lobbying expenses. 2012 amended tax return   Generally, lobbying expenses are not deductible. 2012 amended tax return Lobbying expenses include amounts paid or incurred for any of the following activities. 2012 amended tax return Influencing legislation. 2012 amended tax return Participating in or intervening in any political campaign for, or against, any candidate for public office. 2012 amended tax return Attempting to influence the general public, or segments of the public, about elections, legislative matters, or referendums. 2012 amended tax return Communicating directly with covered executive branch officials (defined later) in any attempt to influence the official actions or positions of those officials. 2012 amended tax return Researching, preparing, planning, or coordinating any of the preceding activities. 2012 amended tax return   Your expenses for influencing legislation and communicating directly with a covered executive branch official include a portion of your labor costs and general and administrative costs of your business. 2012 amended tax return For information on making this allocation, see section 1. 2012 amended tax return 162-28 of the regulations. 2012 amended tax return   You cannot claim a charitable or business expense deduction for amounts paid to an organization if both of the following apply. 2012 amended tax return The organization conducts lobbying activities on matters of direct financial interest to your business. 2012 amended tax return A principal purpose of your contribution is to avoid the rules discussed earlier that prohibit a business deduction for lobbying expenses. 2012 amended tax return   If a tax-exempt organization, other than a section 501(c)(3) organization, provides you with a notice on the part of dues that is allocable to nondeductible lobbying and political expenses, you cannot deduct that part of the dues. 2012 amended tax return Covered executive branch official. 2012 amended tax return   For purposes of this discussion, a covered executive branch official is any of the following. 2012 amended tax return The President. 2012 amended tax return The Vice President. 2012 amended tax return Any officer or employee of the White House Office of the Executive Office of the President and the two most senior level officers of each of the other agencies in the Executive Office. 2012 amended tax return Any individual who: Is serving in a position in Level I of the Executive Schedule under section 5312 of title 5, United States Code, Has been designated by the President as having Cabinet-level status, or Is an immediate deputy of an individual listed in item (a) or (b). 2012 amended tax return Exceptions to denial of deduction. 2012 amended tax return   The general denial of the deduction does not apply to the following. 2012 amended tax return Expenses of appearing before, or communicating with, any committee or member of any local council or similar governing body concerning its legislation (local legislation) if the legislation is of direct interest to you or to you and an organization of which you are a member. 2012 amended tax return An Indian tribal government is treated as a local council or similar governing body. 2012 amended tax return Any in-house expenses for influencing legislation and communicating directly with a covered executive branch official if those expenses for the tax year do not exceed $2,000 (excluding overhead expenses). 2012 amended tax return Expenses incurred by taxpayers engaged in the trade or business of lobbying (professional lobbyists) on behalf of another person (but does apply to payments by the other person to the lobbyist for lobbying activities). 2012 amended tax return Moving machinery. 2012 amended tax return   Generally, the cost of moving machinery from one city to another is a deductible expense. 2012 amended tax return So is the cost of moving machinery from one plant to another, or from one part of your plant to another. 2012 amended tax return You can deduct the cost of installing the machinery in the new location. 2012 amended tax return However, you must capitalize the costs of installing or moving newly purchased machinery. 2012 amended tax return Outplacement services. 2012 amended tax return   The costs of outplacement services you provide to your employees to help them find new employment, such as career counseling, résumé assistance, skills assessment, etc. 2012 amended tax return are deductible. 2012 amended tax return   The costs of outplacement services may cover more than one deduction category. 2012 amended tax return For example, deduct as a utilities expense the cost of telephone calls made under this service and deduct as rental expense the cost of renting machinery and equipment for this service. 2012 amended tax return   For information on whether the value of outplacement services is includable in your employees' income, see Publication 15-B. 2012 amended tax return Penalties and fines. 2012 amended tax return   Penalties paid for late performance or nonperformance of a contract are generally deductible. 2012 amended tax return For instance, you own and operate a construction company. 2012 amended tax return Under a contract, you are to finish construction of a building by a certain date. 2012 amended tax return Due to construction delays, the building is not completed and ready for occupancy on the date stipulated in the contract. 2012 amended tax return You are now required to pay an additional amount for each day that completion is delayed beyond the completion date stipulated in the contract. 2012 amended tax return These additional costs are deductible business expenses. 2012 amended tax return   On the other hand, penalties or fines paid to any government agency or instrumentality because of a violation of any law are not deductible. 2012 amended tax return These fines or penalties include the following amounts. 2012 amended tax return Paid because of a conviction for a crime or after a plea of guilty or no contest in a criminal proceeding. 2012 amended tax return Paid as a penalty imposed by federal, state, or local law in a civil action, including certain additions to tax and additional amounts and assessable penalties imposed by the Internal Revenue Code. 2012 amended tax return Paid in settlement of actual or possible liability for a fine or penalty, whether civil or criminal. 2012 amended tax return Forfeited as collateral posted for a proceeding that could result in a fine or penalty. 2012 amended tax return   Examples of nondeductible penalties and fines include the following. 2012 amended tax return Fines for violating city housing codes. 2012 amended tax return Fines paid by truckers for violating state maximum highway weight laws. 2012 amended tax return Fines for violating air quality laws. 2012 amended tax return Civil penalties for violating federal laws regarding mining safety standards and discharges into navigable waters. 2012 amended tax return   A fine or penalty does not include any of the following. 2012 amended tax return Legal fees and related expenses to defend yourself in a prosecution or civil action for a violation of the law imposing the fine or civil penalty. 2012 amended tax return Court costs or stenographic and printing charges. 2012 amended tax return Compensatory damages paid to a government. 2012 amended tax return Political contributions. 2012 amended tax return   Contributions or gifts paid to political parties or candidates are not deductible. 2012 amended tax return In addition, expenses paid or incurred to take part in any political campaign of a candidate for public office are not deductible. 2012 amended tax return Indirect political contributions. 2012 amended tax return   You cannot deduct indirect political contributions and costs of taking part in political activities as business expenses. 2012 amended tax return Examples of nondeductible expenses include the following. 2012 amended tax return Advertising in a convention program of a political party, or in any other publication if any of the proceeds from the publication are for, or intended for, the use of a political party or candidate. 2012 amended tax return Admission to a dinner or program (including, but not limited to, galas, dances, film presentations, parties, and sporting events) if any of the proceeds from the function are for, or intended for, the use of a political party or candidate. 2012 amended tax return Admission to an inaugural ball, gala, parade, concert, or similar event if identified with a political party or candidate. 2012 amended tax return Repairs. 2012 amended tax return   The cost of repairing or improving property used in your trade or business is either a deductible or capital expense. 2012 amended tax return Routine maintenance that keeps your property in a normal efficient operating condition, but that does not materially increase the value or substantially prolong the useful life of the property, is deductible in the year that it is incurred. 2012 amended tax return Otherwise, the cost must be capitalized and depreciated. 2012 amended tax return See Form 4562 and its instructions for how to compute and claim the depreciation deduction. 2012 amended tax return   The cost of repairs includes the costs of labor, supplies, and certain other items. 2012 amended tax return The value of your own labor is not deductible. 2012 amended tax return Examples of repairs include: Reconditioning floors (but not replacement), Repainting the interior and exterior walls of a building, Cleaning and repairing roofs and gutters, and Fixing plumbing leaks (but not replacement of fixtures). 2012 amended tax return Repayments. 2012 amended tax return   If you had to repay an amount you included in your income in an earlier year, you may be able to deduct the amount repaid for the year in which you repaid it. 2012 amended tax return Or, if the amount you repaid is more than $3,000, you may be able to take a credit against your tax for the year in which you repaid it. 2012 amended tax return Type of deduction. 2012 amended tax return   The type of deduction you are allowed in the year of repayment depends on the type of income you included in the earlier year. 2012 amended tax return For instance, if you repay an amount you previously reported as a capital gain, deduct the repayment as a capital loss on Form 8949. 2012 amended tax return If you reported it as self-employment income, deduct it as a business deduction on Schedule C or Schedule C-EZ (Form 1040) or Schedule F (Form 1040). 2012 amended tax return   If you reported the amount as wages, unemployment compensation, or other nonbusiness ordinary income, enter it on Schedule A (Form 1040) as a miscellaneous itemized deduction that is subject to the 2% limitation. 2012 amended tax return However, if the repayment is over $3,000 and Method 1 (discussed later) applies, deduct it on Schedule A (Form 1040) as a miscellaneous itemized deduction that is not subject to the 2% limitation. 2012 amended tax return Repayment—$3,000 or less. 2012 amended tax return   If the amount you repaid was $3,000 or less, deduct it from your income in the year you repaid it. 2012 amended tax return Repayment—over $3,000. 2012 amended tax return   If the amount you repaid was more than $3,000, you can deduct the repayment, as described earlier. 2012 amended tax return However, you can instead choose to take a tax credit for the year of repayment if you included the income under a “claim of right. 2012 amended tax return ” This means that at the time you included the income, it appeared that you had an unrestricted right to it. 2012 amended tax return If you qualify for this choice, figure your tax under both methods and use the method that results in less tax. 2012 amended tax return Method 1. 2012 amended tax return   Figure your tax for 2013 claiming a deduction for the repaid amount. 2012 amended tax return Method 2. 2012 amended tax return   Figure your tax for 2013 claiming a credit for the repaid amount. 2012 amended tax return Follow these steps. 2012 amended tax return Figure your tax for 2013 without deducting the repaid amount. 2012 amended tax return Refigure your tax from the earlier year without including in income the amount you repaid in 2013. 2012 amended tax return Subtract the tax in (2) from the tax shown on your return for the earlier year. 2012 amended tax return This is the amount of your credit. 2012 amended tax return Subtract the answer in (3) from the tax for 2013 figured without the deduction (step 1). 2012 amended tax return   If Method 1 results in less tax, deduct the amount repaid as discussed earlier under Type of deduction. 2012 amended tax return   If Method 2 results in less tax, claim the credit on line 71 of Form 1040, and write “I. 2012 amended tax return R. 2012 amended tax return C. 2012 amended tax return 1341” next to line 71. 2012 amended tax return Example. 2012 amended tax return For 2012, you filed a return and reported your income on the cash method. 2012 amended tax return In 2013, you repaid $5,000 included in your 2012 gross income under a claim of right. 2012 amended tax return Your filing status in 2013 and 2012 is single. 2012 amended tax return Your income and tax for both years are as follows:   2012  With Income 2012  Without Income Taxable Income $15,000 $10,000 Tax $ 1,819 $ 1,069   2013  Without Deduction 2013  With Deduction Taxable Income $49,950 $44,950 Tax $8,423 $7,173 Your tax under Method 1 is $7,173. 2012 amended tax return Your tax under Method 2 is $7,673, figured as follows: Tax previously determined for 2012 $ 1,819 Less: Tax as refigured − 1,069 Decrease in 2012 tax $ 750 Regular tax liability for 2013 $8,423 Less: Decrease in 2012 tax − 750 Refigured tax for 2013 $ 7,673 Because you pay less tax under Method 1, you should take a deduction for the repayment in 2013. 2012 amended tax return Repayment does not apply. 2012 amended tax return   This discussion does not apply to the following. 2012 amended tax return Deductions for bad debts. 2012 amended tax return Deductions from sales to customers, such as returns and allowances, and similar items. 2012 amended tax return Deductions for legal and other expenses of contesting the repayment. 2012 amended tax return Year of deduction (or credit). 2012 amended tax return   If you use the cash method of accounting, you can take the deduction (or credit, if applicable) for the tax year in which you actually make the repayment. 2012 amended tax return If you use any other accounting method, you can deduct the repayment or claim a credit for it only for the tax year in which it is a proper deduction under your accounting method. 2012 amended tax return For example, if you use the accrual method, you are entitled to the deduction or credit in the tax year in which the obligation for the repayment accrues. 2012 amended tax return Subscriptions. 2012 amended tax return   Subscriptions to professional, technical, and trade journals that deal with your business field are deductible. 2012 amended tax return Supplies and materials. 2012 amended tax return   Unless you have deducted the cost in any earlier year, you generally can deduct the cost of materials and supplies actually consumed and used during the tax year. 2012 amended tax return   If you keep incidental materials and supplies on hand, you can deduct the cost of the incidental materials and supplies you bought during the tax year if all the following requirements are met. 2012 amended tax return You do not keep a record of when they are used. 2012 amended tax return You do not take an inventory of the amount on hand at the beginning and end of the tax year. 2012 amended tax return This method does not distort your income. 2012 amended tax return   You can also deduct the cost of books, professional instruments, equipment, etc. 2012 amended tax return , if you normally use them within a year. 2012 amended tax return However, if the usefulness of these items extends substantially beyond the year they are placed in service, you generally must recover their costs through depreciation. 2012 amended tax return For more information regarding depreciation see Publication 946, How To Depreciate Property. 2012 amended tax return Utilities. 2012 amended tax return   Business expenses for heat, lights, power, telephone service, and water and sewerage are deductible. 2012 amended tax return However, any part due to personal use is not deductible. 2012 amended tax return Telephone. 2012 amended tax return   You cannot deduct the cost of basic local telephone service (including any taxes) for the first telephone line you have in your home, even if you have an office in your home. 2012 amended tax return However, charges for business long-distance phone calls on that line, as well as the cost of a second line into your home used exclusively for business, are deductible business expenses. 2012 amended tax return Prev  Up  Next   Home   More Online Publications
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Safeguards Program

The Safeguards Program and staff are responsible for ensuring that federal, state and local agencies receiving federal tax information protect it as if the information remained in IRS’s hands.

These agencies and their contractors receiving federal tax information must protect the confidentiality of return information and are periodically reviewed by Safeguards personnel to ensure they meet the safeguarding requirements of IRC 6103(p)(4). These requirements include employee awareness programs, proper disposal, secure storage and computer security among others.

Publication 1075, Tax Information Security Guidelines for Federal, State and Local Agencies (PDF)
This document contains specific requirements for safeguarding federal tax information. This revision becomes effective on Jan. 1, 2014.

Publication 1075, Tax Information Security Guidelines for Federal, State and Local Agencies (PDF)
This revision of 1075 became effective on Aug. 24, 2010 and is superceded by the Jan. 1, 2014 version.

Comments and suggestions on the revised Publication 1075 can be forwarded to the safeguards mailbox at: safeguardreports@irs.gov.

Additional Requirements for Publication 1075
Safeguarding requirements may be supplemented or modified between editions of Publication 1075 by guidance issued by the Office of Safeguards.
 

ALERTS

See “Safeguards Alert Memorandums” below for trending security concerns.


Publication 1075

Recommendations on How to Become Compliant with the New Requirements
Given the significant changes in technical safeguards requirements found in Sections 4, 5 and 6, the IRS has some recommendations for agencies to become compliant with the new requirements.

Reporting Requirements
Publication 1075 requires agencies to use approved report templates and to transmit the reports electronically. These reports must be encrypted and submitted to the safeguardreports@irs.gov mailbox.

Reporting Unauthorized Accesses, Disclosures or Data Breaches
Local, state and federal agencies receiving federal tax information must follow the revised provisions of Section 10 of Publication 1075 (PDF) upon discovering a possible improper inspection or disclosure of FTI, including breaches and security incidents. Agencies must contact Treasury Inspector General for Tax Administration and the IRS Office of Safeguards immediately, but no later than 24-hours after identification of a possible issue involving federal tax information. Agencies are not to wait until after their own internal investigation as been conducted.

Contacting TIGTA is critical to expedite the recovery of compromised data and identify potential criminal acts. The IRS Office of Safeguards investigation focuses on identifying processes, procedures or systems within the agency with inadequate security controls which led to the incident.

Internal Inspections Reports
Section 6.3 of Publication 1075, Tax Information Security guidelines for Federal, State and Local Agencies and Entities, requires that agencies receiving federal tax information (FTI) establish a review cycle for internal inspections of headquarters offices and all local/field offices that receive FTI. The Internal Inspections Report – Headquarters Office and Internal Inspections Report – Field Office are for these inspections. 

In addition, these agencies must also include an internal inspection of IT operations, using the Internal Inspections Report – IT Operations. Internal inspections of contractors with access to FTI and any off-site storage facilities must also be completed. All scheduled and completed internal inspections should be provided to the IRS Office of Safeguards on the Internal Inspections Implementation Report.

Safeguards Technical Assistance by Topic
The IRS has recommendations and discussions on various Safeguards Program topics available for agencies to help stay in compliance. These documents may assist with preparation of reports, protecting federal tax information, and knowing the legalities of the Safeguards Program.

IRS Disclosure Awareness Videos
IRS Disclosure Awareness training videos are available for local, state and federal governmental agencies that receive federal tax information (FTI). The IRS Office of Safeguards created videos (with captions in English and Spanish) to help explain several key concepts in protecting the confidentiality of FTI.

References/Related Topics

Physical Security and Disclosure References/Related Topics
Publication 1075 requirements pertaining to the protection of FTI in a physical environment and the disclosure of FTI to other persons are available in the Safeguard Disclosure Security Evaluation Matrix.

Document

Version

Release Date

Safeguard Disclosure Security Evaluation Matrix (SDSEM) (XLS)

3.0

9/12/2012


Safeguards Alert Memorandums
The following resources address recent security trends regarding the protection of FTI.

Document

Version

Release Date

Alert Memo – Multi-factor Authentication Implementation

N/A

6/17/2013

Alert Memo – Protecting FTI On Mainframes with Open Port 23

N/A

6/17/2013


Computer Security Compliance References/Related Topics
The following Computer Security Evaluation Matrix (SCSEM) downloads are available for use in preparing an IT environment that will receive, process, or store FTI.

Document

Version

Release Date

Application – Generic Application SCSEM (XLS)

1.3

9/26/2013

Application – GenTax SCSEM (XLS)

1.3

9/26/2013

Application – Internet Explorer SCSEM (XLS)

1.2

9/26/2013

Database – DB2 SCSEM (XLS)

1.2

2/12/2013

Database – Oracle 11g SCSEM (XLS)

1.1

9/26/2013

Database – Oracle 10g SCSEM (XLS)

1.3

9/26/2013

Database – Oracle 9i SCSEM (XLS)

1.2

2/12/2013

Database – SQL Server 2000 SCSEM (XLS)

1.2

2/12/2013

Database – SQL Server 2005 SCSEM (XLS)

1.2

2/12/2013

Mainframe – ACF2 SCSEM (XLS)

1.3

9/26/2013

Mainframe – i5 OS SCSEM (XLS)

1.3

9/26/2013

Mainframe – RACF SCSEM (XLS)

1.3

9/26/2013

Mainframe – Top Secret SCSEM (XLS)

1.3

9/26/2013

Mainframe – UNISYS SCSEM (XLS)

2.4

9/26/2013

Management, Operational and Technical (MOT) (XLS)

2.0

9/27/2013

MOT Appendix – Data Warehouse SCSEM (XLS)

1.3

2/12/2013

MOT Appendix – Multi-functional Device SCSEM (MFD) (XLS)

2.2

2/12/2013

Network – Cisco IOS SCSEM (XLS)

1.2

9/26/2013

Network – Firewall SCSEM (XLS)

1.2

9/26/2013

Network – Network Assessment SCSEM (XLS)

1.2

9/26/2013

Network – Storage Area Network SCSEM (SAN) (XLS)

1.2

9/26/2013

Network – Virtual Private Network (VPN) SCSEM (XLS)

1.2

9/26/2013

Network – Voice Over Internet Protocol (VoIP) SCSEM (XLS)

1.2

9/26/2013

Network – Wireless Local Area Network (LAN) SCSEM (XLS)

1.2

9/26/2013

Other – Cloud Computing SCSEM (XLS)

1.0

4/1/2013

Other - Oracle Public Sector Revenue Management (PSRM) (formerly Enterprise Taxation and Policy Management (ETPM))

1.1

2/5/2014

Other – Generic Operating System SCSEM (XLS)

1.3

2/12/2013

Other – Mobile Devices SCSEM (XLS)

1.0

4/1/2013

Other – OpenVMS SCSEM (XLS)

1.2

9/26/2013

Other - RSI Revenue Premier

1.0

9/23/2013

Other - Teradata

1.0

9/23/2013

Other – Web Server SCSEM (XLS)

1.3

9/26/2013

UNIX and Linux – Solaris, HP-UX, AIX, Red Hat, SuSE SCSEM (XLS)

1.4

2/12/2013

Virtualization – VMWare ESX 4.x SCSEM (XLS)

1.2

2/12/2013

Virtualization – VMWare ESXi 5.x SCSEM (XLS)

1.1

3/7/2013

Microsoft Windows 7 SCSEM (XLS)

1.2

2/12/2013

Microsoft Windows Server 2003 SCSEM (XLS)

1.2

2/12/2013

Microsoft Windows Server 2008 and 2008 R2 SCSEM (XLS)

1.2

2/12/2013

Microsoft Windows Vista SCSEM (XLS)

1.2

2/12/2013

Microsoft Windows XP SCSEM (XLS)

1.2

2/12/2013

 

Page Last Reviewed or Updated: 25-Mar-2014

The 2012 Amended Tax Return

2012 amended tax return Publication 557 - Additional Material Table of Contents Appendix. 2012 amended tax return Sample Articles of Organization, continued Organization Reference Chart Section of 1986 Code Description of organization General nature of activities Application  Form Annual return required to be  filed Contributions  allowable 501(c)(1) Corporations Organized under Act of Congress (including Federal Credit Unions) Instrumentalities of the  United States No Form None Yes, if made for exclusively public purposes 501(c)(2) Title Holding Corporation For Exempt Organization Holding title to property of an  exempt organization 1024 9901 or 990-EZ8 No2 501(c)(3) Religious, Educational, Charitable, Scientific, Literary, Testing for Public Safety, to Foster National or International Amateur Sports Competition, or Prevention of Cruelty to Children or Animals Organizations Activities of nature implied by description of class of organization 1023 9901 or 990-EZ8, or 990-PF Yes, generally 501(c)(4) Civic Leagues, Social Welfare Organizations, and Local Associations of Employees Promotion of community welfare; charitable, educational, or recreational 1024 9901 or 990-EZ8 No, generally 2, 3 501(c)(5) Labor, Agricultural, and Horticultural Organizations Educational or instructive, the  purpose being to improve conditions of work, and to improve products of efficiency 1024 9901 or 990-EZ8 No2 501(c)(6) Business Leagues, Chambers of Commerce, Real Estate Boards, etc. 2012 amended tax return Improvement of business  conditions of one or more lines of business 1024 9901 or 990-EZ8 No2 501(c)(7) Social and Recreational Clubs Pleasure, recreation, social activities 1024 9901 or 990-EZ8 No2 501(c)(8) Fraternal Beneficiary Societies  and Associations Lodge providing for payment of life, sickness, accident or other benefits  to members 1024 9901 or 990-EZ8 Yes, if for certain Sec. 2012 amended tax return 501(c)(3) purposes 501(c)(9) Voluntary Employees Beneficiary Associations Providing for payment of life, sickness, accident, or other benefits to members 1024 9901 or 990-EZ8 No2 501(c)(10) Domestic Fraternal Societies  and Associations Lodge devoting its net earnings to charitable, fraternal, and other  specified purposes. 2012 amended tax return No life, sickness, or accident benefits to members 1024 9901 or 990-EZ8 Yes, if for certain Sec. 2012 amended tax return 501(c)(3) purposes 501(c)(11) Teachers' Retirement Fund Associations Teachers' association for payment of retirement benefits Letter6 9901 or 990-EZ8 No2 501(c)(12) Benevolent Life Insurance Associations, Mutual Ditch or  Irrigation Companies, Mutual or Cooperative Telephone Companies, etc. 2012 amended tax return Activities of a mutually beneficial  nature similar to those implied by the description of class of organization 1024 9901 or 990-EZ8 No2 501(c)(13) Cemetery Companies Burials and incidental activities 1024 9901 or 990-EZ8 Yes, generally 501(c)(14) State-Chartered Credit Unions,  Mutual Reserve Funds Loans to members Letter6 9901 or 990-EZ8 No2 501(c)(15) Mutual Insurance Companies or Associations Providing insurance to members substantially at cost 1024 9901 or 990-EZ8 No2 501(c)(16) Cooperative Organizations to  Finance Crop Operations Financing crop operations in  conjunction with activities of a marketing  or purchasing association Form 1120-C6 9901 or 990-EZ8 No2 501(c)(17) Supplemental Unemployment  Benefit Trusts Provides for payment of  supplemental unemployment compensation benefits 1024 9901 or 990-EZ8 No2 501(c)(18) Employee Funded Pension Trust (created before June 25, 1959) Payment of benefits under a  pension plan funded by employees Letter6 9901 or 990-EZ8 No2 501(c)(19) Post or Organization of Past or  Present Members of the Armed Forces Activities implied by nature of organization 1024 9901 or 990-EZ8 No, generally7 501(c)(21) Black Lung Benefit Trusts Funded by coal mine operators to satisfy their liability for disability or  death due to black lung diseases Letter6 990-BL No4 501(c)(22) Withdrawal Liability Payment Fund To provide funds to meet the  liability of employers withdrawing from  a multi-employer pension fund Letter6 9901 or 990-EZ8 No5 501(c)(23) Veterans' Organization (created before 1880) To provide insurance and other  benefits to veterans Letter6 9901 or 990-EZ8 No, generally7 501(c)(25) Title Holding Corporations or Trusts with Multiple Parent Corporations Holding title and paying over  income from property to 35 or fewer parents or beneficiaries 1024 9901 or 990-EZ8 No 501(c)(26) State-Sponsored Organization Providing Health Coverage for High-Risk Individuals Provides health care coverage to high-risk individuals Letter6 9901 or 990-EZ8 No 501(c)(27) State-Sponsored Workers' Compensation Reinsurance Organization Reimburses members for losses  under workers' compensation acts Letter6 9901 or 990-EZ8 No 501(c)(28) National Railroad Retirement Investment Trust Manages and invests the assets of the Railroad Retirement Account No Form 99011 No11 501(c)(29) CO-OP health insurance issuers A qualified health insurance issuer which has received a loan or grant under the CO-OP program Letter and Form 871814 9901 No13 501(d) Religious and Apostolic Associations Regular business activities;  Communal religious community No Form 10659 No2 501(e) Cooperative Hospital Service Organizations Performs cooperative services for hospitals 1023 9901 or 990-EZ8 Yes 501(f) Cooperative Service Organizations  of Operating Educational Organizations Performs collective investment  services for educational organizations 1023 9901 or 990-EZ8 Yes 501(k) Child Care Organizations Provides care for children 1023 9901 or 990-EZ8 Yes 501(n) Charitable Risk Pools Pools certain insurance risks of sec. 2012 amended tax return 501(c)(3) organizations 1023 9901 or 990-EZ8 Yes 501(q) Credit Counseling Organization Credit counseling services 1023 102312 No 521(a) Farmers' Cooperative Associations Cooperative marketing and  purchasing for agricultural procedures 1028 1120-C No 527 Political organizations A party, committee, fund,  association, etc. 2012 amended tax return , that directly or indirectly accepts contributions or makes expenditures for political campaigns 8871 1120-POL10 9901 or 990-EZ8 No 1For exceptions to the filing requirement, see chapter 2 and the form instructions. 2012 amended tax return Note: For annual tax periods beginning after 2006, most tax-exempt organizations, other than churches, are required to file an annual Form 990, 990-EZ, or 990-PF with the IRS or to submit an annual electronic notice, Form 990-N (e-Postcard), to the IRS. 2012 amended tax return Tax-exempt organizations failing to file an annual return or submit an annual notice as required for 3 consecutive years will automatically lose their tax-exempt status. 2012 amended tax return    2An organization exempt under a subsection of section 501 other than 501(c)(3) can establish a charitable fund, contributions to which are deductible. 2012 amended tax return Such a fund must itself meet the requirements of section 501(c)(3) and the related notice requirements of section 508(a). 2012 amended tax return    3Contributions to volunteer fire companies and similar organizations are deductible, but only if made for exclusively public purposes. 2012 amended tax return    4Deductible as a business expense to the extent allowed by section 192. 2012 amended tax return    5Deductible as a business expense to the extent allowed by section 194A. 2012 amended tax return 6Application is by letter to the address shown on Form 8718. 2012 amended tax return A copy of the organizing document should be attached and the letter should be signed by an officer. 2012 amended tax return    7Contributions to these organizations are deductible only if 90% or more of the organization's members are war veterans. 2012 amended tax return    8For limits on the use of Form 990-EZ, see chapter 2 and the general instructions for Form 990-EZ (or Form 990). 2012 amended tax return    9Although the organization files a partnership return, all distributions are deemed dividends. 2012 amended tax return The members are not entitled to pass through treatment of the organization's income or expenses. 2012 amended tax return    10Form 1120-POL is required only if the organization has taxable income as defined in section 527(c). 2012 amended tax return    11Only required to annually file so much of the Form 990 that relates to the names and addresses of the officers, directors, trustees, and key employees, and their titles, compensation, and hours devoted to their positions (Part VII of Form 990), and to complete Item I in the Heading of Form 990 to confirm its tax-exempt status under section 501(c)(28). 2012 amended tax return    12See section 501(q) if the organization provides credit counseling services and seeks recognition of exemption under section 501(c)(4). 2012 amended tax return Use Form 1024 if applying for recognition under section 501(c)(4). 2012 amended tax return    13See section 501(c)(29) for details. 2012 amended tax return    14See Revenue Procedure 2012-11, sec. 2012 amended tax return 4. 2012 amended tax return 01, 2012-7 I. 2012 amended tax return R. 2012 amended tax return B. 2012 amended tax return 368, for details. 2012 amended tax return Appendix. 2012 amended tax return Sample Articles of Organization The following are examples of Articles of Incorporation (Draft A) and a declaration of trust (Draft B) that contain the required information as to purposes and powers of an organization and disposition of its assets upon dissolution. 2012 amended tax return You should bear in mind that requirements for these instruments may vary under applicable state law. 2012 amended tax return See Private Foundations and Public Charities , earlier for the special provisions required in a private foundation's governing instrument in order for it to qualify for exemption. 2012 amended tax return DRAFT A  Articles of Incorporation of the undersigned, a majority of whom are citizens of the United States, desiring to form a Non-Profit Corporation under the Non-Profit Corporation Law of , do hereby certify: First: The name of the Corporation shall be . 2012 amended tax return Second: The place in this state where the principal office of the Corporation is to be located is the City of , County. 2012 amended tax return Third: Said corporation is organized exclusively for charitable, religious, educational, and scientific purposes, including, for such purposes, the making of distributions to organizations that qualify as exempt organizations under section 501(c)(3) of the Internal Revenue Code, or the corresponding section of any future federal tax code. 2012 amended tax return Fourth: The names and addresses of the persons who are the initial trustees of the corporation are as follows: Name , Address Fifth: No part of the net earnings of the corporation shall inure to the benefit of, or be distributable to its members, trustees, officers, or other private persons, except that the corporation shall be authorized and empowered to pay reasonable compensation for services rendered and to make payments and distributions in furtherance of the purposes set forth in Article Third hereof. 2012 amended tax return No substantial part of the activities of the corporation shall be the carrying on of propaganda, or otherwise attempting to influence legislation, and the corporation shall not participate in, or intervene in (including the publishing or distribution of statements) any political campaign on behalf of or in opposition to any candidate for public office. 2012 amended tax return Notwithstanding any other provision of these articles, the corporation shall not carry on any other activities not permitted to be carried on (a) by a corporation exempt from federal income tax under section 501(c)(3) of the Internal Revenue Code, or the corresponding section of any future federal tax code, or (b) by a corporation, contributions to which are deductible under section 170(c)(2) of the Internal Revenue Code, or the corresponding section of any future federal tax code. 2012 amended tax return   If reference to federal law in articles of incorporation imposes a limitation that is invalid in your state, you may wish to substitute the following for the last sentence of the preceding paragraph: “Notwithstanding any other provision of these articles, this corporation shall not, except to an insubstantial degree, engage in any activities or exercise any powers that are not in furtherance of the purposes of this corporation. 2012 amended tax return ” Sixth: Upon the dissolution of the corporation, assets shall be distributed for one or more exempt purposes within the meaning of section 501(c)(3) of the Internal Revenue Code, or the corresponding section of any future federal tax code, or shall be distributed to the federal government, or to a state or local government, for a public purpose. 2012 amended tax return Any such assets not so disposed of shall be disposed of by a Court of Competent Jurisdiction of the county in which the principal office of the corporation is then located, exclusively for such purposes or to such organization or organizations, as said Court shall determine, which are organized and operated exclusively for such purposes. 2012 amended tax return   In witness whereof, we have hereunto subscribed our names this day of , 20. 2012 amended tax return Appendix. 2012 amended tax return Sample Articles of Organization, continued Draft B The Charitable Trust. 2012 amended tax return Declaration of Trust made as of the day of , 20 , by , of , and , of , who hereby declare and agree that they have received this day from , as Donor, the sum of Ten Dollars ($10) and that they will hold and manage the same, and any additions to it, in trust, as follows: First: This trust shall be called “The Charitable Trust. 2012 amended tax return ” Second: The trustees may receive and accept property, whether real, personal, or mixed, by way of gift, bequest, or devise, from any person, firm, trust, or corporation, to be held, administered, and disposed of in accordance with and pursuant to the provisions of this Declaration of Trust; but no gift, bequest, or devise of any such property shall be received and accepted if it is conditioned or limited in such manner as to require the disposition of the income or its principal to any person or organization other than a “charitable organization” or for other than “charitable purposes” within the meaning of such terms as defined in Article Third of this Declaration of Trust, or as shall, in the opinion of the trustees, jeopardize the federal income tax exemption of this trust pursuant to section 501(c)(3) of the Internal Revenue Code, or the corresponding section of any future federal tax code. 2012 amended tax return Third: a) The principal and income of all property received and accepted by the trustees to be administered under this Declaration of Trust shall be held in trust by them, and the trustees may make payments or distributions from income or principal, or both, to or for the use of such charitable organizations, within the meaning of that term as defined in paragraph C, in such amounts and for such charitable purposes of the trust as the trustees shall from time to time select and determine; and the trustees may make payments or distributions from income or principal, or both, directly for such charitable purposes, within the meaning of that term as defined in paragraph D, in such amounts as the trustees shall from time to time select and determine without making use of any other charitable organization. 2012 amended tax return The trustees may also make payments or distributions of all or any part of the income or principal to states, territories, or possessions of the United States, any political subdivision of any of the foregoing, or to the United States or the District of Columbia but only for charitable purposes within the meaning of that term as defined in paragraph D. 2012 amended tax return Income or principal derived from contributions by corporations shall be distributed by the trustees for use solely within the United States or its possessions. 2012 amended tax return No part of the net earnings of this trust shall inure or be payable to or for the benefit of any private shareholder or individual, and no substantial part of the activities of this trust shall be the carrying on of propaganda, or otherwise attempting to influence legislation. 2012 amended tax return No part of the activities of this trust shall be the participation in, or intervention in (including the publishing or distributing of statements), any political campaign on behalf of or in opposition to any candidate for public office. 2012 amended tax return b) The trust shall continue forever unless the trustees terminate it and distribute all of the principal and income, which action may be taken by the trustees in their discretion at any time. 2012 amended tax return On such termination, assets shall be distributed for one or more exempt purposes within the meaning of section 501(c)(3) of the Internal Revenue Code, or the corresponding section of any future federal tax code, or shall be distributed to the federal government, or to a state or local government, for a public purpose. 2012 amended tax return The donor authorizes and empowers the trustees to form and organize a nonprofit corporation limited to the uses and purposes provided for in this Declaration of Trust, such corporation to be organized under the laws of any state or under the laws of the United States as may be determined by the trustees; such corporation when organized to have power to administer and control the affairs and property and to carry out the uses, objects, and purposes of this trust. 2012 amended tax return Upon the creation and organization of such corporation, the trustees are authorized and empowered to convey, transfer, and deliver to such corporation all the property and assets to which this trust may be or become entitled. 2012 amended tax return The charter, bylaws, and other provisions for the organization and management of such corporation and its affairs and property shall be such as the trustees shall determine, consistent with the provisions of this paragraph. 2012 amended tax return c) In this Declaration of Trust and in any amendments to it, references to “charitable organizations” or “charitable organization” mean corporations, trusts, funds, foundations, or community chests created or organized in the United States or in any of its possessions, whether under the laws of the United States, any state or territory, the District of Columbia, or any possession of the United States, organized and operated exclusively for charitable purposes, no part of the net earnings of which inures or is payable to or for the benefit of any private shareholder or individual, and no substantial part of the activities of which is carrying on propaganda, or otherwise attempting to influence legislation, and which do not participate in or intervene in (including the publishing or distributing of statements) any political campaign on behalf of or in opposition to any candidate for public office. 2012 amended tax return It is intended that the organization described in this paragraph C shall be entitled to exemption from federal income tax under section 501(c)(3) of the Internal Revenue Code, or the corresponding section of any future federal tax code. 2012 amended tax return d) In this Declaration of Trust and in any amendments to it, the term “charitable purposes” shall be limited to and shall include only religious, charitable, scientific, literary, or educational purposes within the meaning of those terms as used in section 501(c)(3) of the Internal Revenue Code, or the corresponding section of any future federal tax code, but only such purposes as also constitute public charitable purposes under the law of trusts of the State of. 2012 amended tax return Fourth: This Declaration of Trust may be amended at any time or times by written instrument or instruments signed and sealed by the trustees, and acknowledged by any of the trustees, provided that no amendment shall authorize the trustees to conduct the affairs of this trust in any manner or for any purpose contrary to the provisions of section 501(c)(3) of the Internal Revenue Code, or the corresponding section of any future federal tax code. 2012 amended tax return An amendment of the provisions of this Article Fourth (or any amendment to it) shall be valid only if and to the extent that such amendment further restricts the trustees' amending power. 2012 amended tax return All instruments amending this Declaration of Trust shall be noted upon or kept attached to the executed original of this Declaration of Trust held by the trustees. 2012 amended tax return Fifth: Any trustee under this Declaration of Trust may, by written instrument, signed and acknowledged, resign his office. 2012 amended tax return The number of trustees shall be at all times not less than two, and whenever for any reason the number is reduced to one, there shall be, and at any other time there may be, appointed one or more additional trustees. 2012 amended tax return Appointments shall be made by the trustee or trustees for the time in office by written instruments signed and acknowledged. 2012 amended tax return Any succeeding or additional trustee shall, upon his or her acceptance of the office by written instrument signed and acknowledged, have the same powers, rights, and duties, and the same title to the trust estate jointly with the surviving or remaining trustee or trustees as if originally appointed. 2012 amended tax return  None of the trustees shall be required to furnish any bond or surety. 2012 amended tax return None of them shall be responsible or liable for the acts or omissions of any other of the trustees or of any predecessor or of a custodian, agent, depositary, or counsel selected with reasonable care. 2012 amended tax return  The one or more trustees, whether original or successor, for the time being in office, shall have full authority to act even though one or more vacancies may exist. 2012 amended tax return A trustee may, by appropriate written instrument, delegate all or any part of his or her powers to another or others of the trustees for such periods and subject to such conditions as such delegating trustee may determine. 2012 amended tax return  The trustees serving under this Declaration of Trust are authorized to pay to themselves amounts for reasonable expenses incurred and reasonable compensation for services rendered in the administration of this trust, but in no event shall any trustee who has made a contribution to this trust ever receive any compensation thereafter. 2012 amended tax return Sixth: In extension and not in limitation of the common law and statutory powers of trustees and other powers granted in this Declaration of Trust, the trustees shall have the following discretionary powers. 2012 amended tax return a) To invest and reinvest the principal and income of the trust in such property, real, personal, or mixed, and in such manner as they shall deem proper, and from time to time to change investments as they shall deem advisable; to invest in or retain any stocks, shares, bonds, notes, obligations, or personal or real property (including without limitation any interests in or obligations of any corporation, association, business trust, investment trust, common trust fund, or investment company) although some or all of the property so acquired or retained is of a kind or size which but for this express authority would not be considered proper and although all of the trust funds are invested in the securities of one company. 2012 amended tax return No principal or income, however, shall be loaned, directly or indirectly, to any trustee or to anyone else, corporate or otherwise, who has at any time made a contribution to this trust, nor to anyone except on the basis of an adequate interest charge and with adequate security. 2012 amended tax return b) To sell, lease, or exchange any personal, mixed, or real property, at public auction or by private contract, for such consideration and on such terms as to credit or otherwise, and to make such contracts and enter into such undertakings relating to the trust property, as they consider advisable, whether or not such leases or contracts may extend beyond the duration of the trust. 2012 amended tax return c) To borrow money for such periods, at such rates of interest, and upon such terms as the trustees consider advisable, and as security for such loans to mortgage or pledge any real or personal property with or without power of sale; to acquire or hold any real or personal property, subject to any mortgage or pledge on or of property acquired or held by this trust. 2012 amended tax return d) To execute and deliver deeds, assignments, transfers, mortgages, pledges, leases, covenants, contracts, promissory notes, releases, and other instruments, sealed or unsealed, incident to any transaction in which they engage. 2012 amended tax return e) To vote, to give proxies, to participate in the reorganization, merger, or consolidation of any concern, or in the sale, lease, disposition, or distribution of its assets; to join with other security holders in acting through a committee, depositary, voting trustees, or otherwise, and in this connection to delegate authority to such committee, depositary, or trustees and to deposit securities with them or transfer securities to them; to pay assessments levied on securities or to exercise subscription rights in respect of securities. 2012 amended tax return f) To employ a bank or trust company as custodian of any funds or securities and to delegate to it such powers as they deem appropriate; to hold trust property without indication of fiduciary capacity but only in the name of a registered nominee, provided the trust property is at all times identified as such on the books of the trust; to keep any or all of the trust property or funds in any place or places in the United States of America; to employ clerks, accountants, investment counsel, investment agents, and any special services, and to pay the reasonable compensation and expenses of all such services in addition to the compensation of the trustees. 2012 amended tax return Seventh: The trustees' powers are exercisable solely in the fiduciary capacity consistent with and in furtherance of the charitable purposes of this trust as specified in Article Third and not otherwise. 2012 amended tax return Eighth: In this Declaration of Trust and in any amendment to it, references to “trustees” mean the one or more trustees, whether original or successor, for the time being in office. 2012 amended tax return Ninth: Any person may rely on a copy, certified by a notary public, of the executed original of this Declaration of Trust held by the trustees, and of any of the notations on it and writings attached to it, as fully as he might rely on the original documents themselves. 2012 amended tax return Any such person may rely fully on any statements of fact certified by anyone who appears from such original documents or from such certified copy to be a trustee under this Declaration of Trust. 2012 amended tax return No one dealing with the trustees need inquire concerning the validity of anything the trustees purport to do. 2012 amended tax return No one dealing with the trustees need see to the application of anything paid or transferred to or upon the order of the trustees of the trust. 2012 amended tax return Tenth: This Declaration of Trust is to be governed in all respects by the laws of the State of . 2012 amended tax return Trustee Trustee Prev  Up 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