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Amended Tax Return More:label_amended_20tax_20return More:bizfinance

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Amended Tax Return More:label_amended_20tax_20return More:bizfinance

Amended tax return more:label_amended_20tax_20return more:bizfinance Publication 516 - Main Content Table of Contents U. Amended tax return more:label_amended_20tax_20return more:bizfinance S. Amended tax return more:label_amended_20tax_20return more:bizfinance Tax ReturnFiling Information Foreign Bank Accounts U. Amended tax return more:label_amended_20tax_20return more:bizfinance S. Amended tax return more:label_amended_20tax_20return more:bizfinance Government Payments Foreign Earned Income Exclusion Tax Treaty Benefits Allowances, Differentials, and Special Pay Other Income Deductions and Credits — Business Expenses Deductions and Credits — Nonbusiness Expenses Foreign Taxes Local (Foreign) Tax ReturnTax Treaty Benefits Other Agreements Double Withholding How To Get Tax HelpLow Income Taxpayer Clinics (LITCs). Amended tax return more:label_amended_20tax_20return more:bizfinance U. Amended tax return more:label_amended_20tax_20return more:bizfinance S. Amended tax return more:label_amended_20tax_20return more:bizfinance Tax Return Filing Information If you are a U. Amended tax return more:label_amended_20tax_20return more:bizfinance S. Amended tax return more:label_amended_20tax_20return more:bizfinance citizen or green card holder living or traveling outside the United States, you are generally required to file income tax returns in the same way as those residing in the United States. Amended tax return more:label_amended_20tax_20return more:bizfinance However, the special rules explained in the following discussions may apply to you. Amended tax return more:label_amended_20tax_20return more:bizfinance See also Tax Treaty Benefits, later. Amended tax return more:label_amended_20tax_20return more:bizfinance When To File and Pay Most individual tax returns cover a calendar year, January through December. Amended tax return more:label_amended_20tax_20return more:bizfinance The regular due date for these tax returns is April 15 of the following year. Amended tax return more:label_amended_20tax_20return more:bizfinance If April 15 falls on a Saturday, Sunday, or legal holiday, your tax return is considered timely filed if it is filed by the next business day that is not a Saturday, Sunday, or legal holiday. Amended tax return more:label_amended_20tax_20return more:bizfinance If you get an extension, you are allowed additional time to file and, in some circumstances, pay your tax. Amended tax return more:label_amended_20tax_20return more:bizfinance You must pay interest on any tax not paid by the regular due date. Amended tax return more:label_amended_20tax_20return more:bizfinance Your return is considered filed on time if it is mailed from and officially postmarked in a foreign country on or before the due date (including extensions), or given to a designated international private delivery service before midnight of the last date prescribed for filing. Amended tax return more:label_amended_20tax_20return more:bizfinance See your tax form instructions for a list of private delivery services that have been designated by the IRS to meet this “timely mailing as timely filing/paying” rule for tax returns and payments. Amended tax return more:label_amended_20tax_20return more:bizfinance If your return is filed late, the postmark or delivery service date does not determine the date of filing. Amended tax return more:label_amended_20tax_20return more:bizfinance In that case, your return is considered filed when it is received by the IRS. Amended tax return more:label_amended_20tax_20return more:bizfinance Extensions You may be able to get an extension of time to file your return and pay your tax. Amended tax return more:label_amended_20tax_20return more:bizfinance Automatic 2-month extension. Amended tax return more:label_amended_20tax_20return more:bizfinance   You can get an automatic 2-month extension (to June 15, for a calendar year return) to file your return and pay your tax if you are a U. Amended tax return more:label_amended_20tax_20return more:bizfinance S. Amended tax return more:label_amended_20tax_20return more:bizfinance citizen or resident and, on the regular due date of your return, you are living outside the United States and Puerto Rico and your main place of business or post of duty is outside the United States and Puerto Rico. Amended tax return more:label_amended_20tax_20return more:bizfinance To get this extension, you must attach a statement to your return explaining how you qualified. Amended tax return more:label_amended_20tax_20return more:bizfinance You will owe interest on any tax not paid by the regular due date of your return. Amended tax return more:label_amended_20tax_20return more:bizfinance Married taxpayers. Amended tax return more:label_amended_20tax_20return more:bizfinance   If you file a joint return, either you or your spouse can qualify for the automatic extension. Amended tax return more:label_amended_20tax_20return more:bizfinance If you and your spouse file separate returns, the extension applies only to the spouse who qualifies. Amended tax return more:label_amended_20tax_20return more:bizfinance Additional extension. Amended tax return more:label_amended_20tax_20return more:bizfinance   You can apply for an additional extension of time to file your return by filing Form 4868. Amended tax return more:label_amended_20tax_20return more:bizfinance You must file Form 4868 by the due date for your income tax return. Amended tax return more:label_amended_20tax_20return more:bizfinance   Generally, you must file it by April 15. Amended tax return more:label_amended_20tax_20return more:bizfinance However, if you qualify for the automatic 2-month extension, you generally must file Form 4868 by June 15. Amended tax return more:label_amended_20tax_20return more:bizfinance Check the box on line 8 of Form 4868. Amended tax return more:label_amended_20tax_20return more:bizfinance Payment of tax. Amended tax return more:label_amended_20tax_20return more:bizfinance   You should estimate and pay any additional tax you owe when you file Form 4868 to avoid being charged a late-payment penalty. Amended tax return more:label_amended_20tax_20return more:bizfinance The late-payment penalty applies if, through withholding, etc. Amended tax return more:label_amended_20tax_20return more:bizfinance , you paid less than 90% of your actual tax liability by the original due date of your income tax return. Amended tax return more:label_amended_20tax_20return more:bizfinance Even if the late-payment penalty does not apply, you will be charged interest on any unpaid tax liability from the original due date of the return until the tax is paid. Amended tax return more:label_amended_20tax_20return more:bizfinance Electronic filing. Amended tax return more:label_amended_20tax_20return more:bizfinance   You can file for the additional extension by phone, using your home computer, or through a tax professional. Amended tax return more:label_amended_20tax_20return more:bizfinance See Form 4868 for more information. Amended tax return more:label_amended_20tax_20return more:bizfinance Limit on additional extensions. Amended tax return more:label_amended_20tax_20return more:bizfinance   You generally cannot get a total extension of more than 6 months. Amended tax return more:label_amended_20tax_20return more:bizfinance However, if you are outside the United States and meet certain tests, you may be able to get a longer extension. Amended tax return more:label_amended_20tax_20return more:bizfinance   For more information, see Publication 54. Amended tax return more:label_amended_20tax_20return more:bizfinance Foreign Bank Accounts You must file Form TD F 90-22. Amended tax return more:label_amended_20tax_20return more:bizfinance 1 if at any time during the year you had an interest in, or signature or other authority over, a bank account, securities account, or other financial account in a foreign country. Amended tax return more:label_amended_20tax_20return more:bizfinance This applies if the combined assets in the account(s) were more than $10,000. Amended tax return more:label_amended_20tax_20return more:bizfinance Do not include accounts in a U. Amended tax return more:label_amended_20tax_20return more:bizfinance S. Amended tax return more:label_amended_20tax_20return more:bizfinance military banking facility operated by a U. Amended tax return more:label_amended_20tax_20return more:bizfinance S. Amended tax return more:label_amended_20tax_20return more:bizfinance financial institution. Amended tax return more:label_amended_20tax_20return more:bizfinance File the completed form by June 30 of the following year with the Department of the Treasury at the address shown on that form. Amended tax return more:label_amended_20tax_20return more:bizfinance Do not attach it to Form 1040. Amended tax return more:label_amended_20tax_20return more:bizfinance If you are required to file Form TD F 90-22. Amended tax return more:label_amended_20tax_20return more:bizfinance 1 but do not do so, you may have to pay a penalty of up to $10,000 (more if the failure to file is willful). Amended tax return more:label_amended_20tax_20return more:bizfinance You also may be required to file Form 8938 with your U. Amended tax return more:label_amended_20tax_20return more:bizfinance S. Amended tax return more:label_amended_20tax_20return more:bizfinance income tax return to report your interest in foreign bank accounts and other specified foreign financial assets. Amended tax return more:label_amended_20tax_20return more:bizfinance For taxpayers living abroad, you generally do not have to file Form 8938 unless the total value of your specified foreign financial assets is more than $200,000 ($400,000 if married filing jointly) on the last day of the tax year or more than $300,000 ($600,000 if married filing jointly) at any time during the tax year. Amended tax return more:label_amended_20tax_20return more:bizfinance For more information, see Form 8938 and its instructions. Amended tax return more:label_amended_20tax_20return more:bizfinance U. Amended tax return more:label_amended_20tax_20return more:bizfinance S. Amended tax return more:label_amended_20tax_20return more:bizfinance Government Payments Wages earned for performing services outside the United States is foreign income, regardless of your employer. Amended tax return more:label_amended_20tax_20return more:bizfinance If you are a U. Amended tax return more:label_amended_20tax_20return more:bizfinance S. Amended tax return more:label_amended_20tax_20return more:bizfinance citizen or resident alien, you must report all income from worldwide sources on your tax return unless it is exempt by U. Amended tax return more:label_amended_20tax_20return more:bizfinance S. Amended tax return more:label_amended_20tax_20return more:bizfinance law. Amended tax return more:label_amended_20tax_20return more:bizfinance This applies to earned income (such as wages) as well as unearned income (such as interest, dividends, and capital gains). Amended tax return more:label_amended_20tax_20return more:bizfinance If you are a nonresident alien, your income from sources outside the United States is not subject to U. Amended tax return more:label_amended_20tax_20return more:bizfinance S. Amended tax return more:label_amended_20tax_20return more:bizfinance tax. Amended tax return more:label_amended_20tax_20return more:bizfinance Foreign Earned Income Exclusion Employees of the U. Amended tax return more:label_amended_20tax_20return more:bizfinance S. Amended tax return more:label_amended_20tax_20return more:bizfinance Government are not entitled to the foreign earned income exclusion or the foreign housing exclusion/deduction under section 911 because “foreign earned income ”does not include amounts paid by the U. Amended tax return more:label_amended_20tax_20return more:bizfinance S. Amended tax return more:label_amended_20tax_20return more:bizfinance Government as an employee. Amended tax return more:label_amended_20tax_20return more:bizfinance But see Other Employment, later. Amended tax return more:label_amended_20tax_20return more:bizfinance Special Situations In the following two situations, your pay is from the U. Amended tax return more:label_amended_20tax_20return more:bizfinance S. Amended tax return more:label_amended_20tax_20return more:bizfinance Government and does not qualify for the foreign earned income exclusion. Amended tax return more:label_amended_20tax_20return more:bizfinance U. Amended tax return more:label_amended_20tax_20return more:bizfinance S. Amended tax return more:label_amended_20tax_20return more:bizfinance agency reimbursed by foreign country. Amended tax return more:label_amended_20tax_20return more:bizfinance   If you are a U. Amended tax return more:label_amended_20tax_20return more:bizfinance S. Amended tax return more:label_amended_20tax_20return more:bizfinance Government employee paid by a U. Amended tax return more:label_amended_20tax_20return more:bizfinance S. Amended tax return more:label_amended_20tax_20return more:bizfinance agency to perform services in a foreign country, your pay is from the U. Amended tax return more:label_amended_20tax_20return more:bizfinance S. Amended tax return more:label_amended_20tax_20return more:bizfinance Government and does not qualify the foreign earned income exclusion or the foreign housing exclusion/deduction. Amended tax return more:label_amended_20tax_20return more:bizfinance This is true even if the U. Amended tax return more:label_amended_20tax_20return more:bizfinance S. Amended tax return more:label_amended_20tax_20return more:bizfinance agency is reimbursed by the foreign government. Amended tax return more:label_amended_20tax_20return more:bizfinance Employees of post exchanges, etc. Amended tax return more:label_amended_20tax_20return more:bizfinance   If you are an employee of an Armed Forces post exchange, officers' and enlisted personnel club, Embassy commissary, or similar instrumentality of the U. Amended tax return more:label_amended_20tax_20return more:bizfinance S. Amended tax return more:label_amended_20tax_20return more:bizfinance Government, the earnings you receive are paid by the U. Amended tax return more:label_amended_20tax_20return more:bizfinance S. Amended tax return more:label_amended_20tax_20return more:bizfinance Government. Amended tax return more:label_amended_20tax_20return more:bizfinance This is true whether they are paid from appropriated or nonappropriated funds. Amended tax return more:label_amended_20tax_20return more:bizfinance These earnings are not eligible for the foreign earned income exclusion or the foreign housing exclusion/deduction. Amended tax return more:label_amended_20tax_20return more:bizfinance Tax Treaty Benefits Most income tax treaties contain an article relating to remuneration from government services. Amended tax return more:label_amended_20tax_20return more:bizfinance Even if you are working in a foreign country with which the United States has an income tax treaty in force and the treaty article that applies to government services says that your government pay is taxable only in the foreign country, the treaty will likely contain a “saving clause”, which provides that the United States may tax its citizens and its residents as if the treaty had not come into effect. Amended tax return more:label_amended_20tax_20return more:bizfinance In some treaties, the government service article is an exception to the saving clause, but often only for individuals who are not U. Amended tax return more:label_amended_20tax_20return more:bizfinance S. Amended tax return more:label_amended_20tax_20return more:bizfinance citizens or green card holders. Amended tax return more:label_amended_20tax_20return more:bizfinance Consequently, if you are a U. Amended tax return more:label_amended_20tax_20return more:bizfinance S. Amended tax return more:label_amended_20tax_20return more:bizfinance citizen or green card holder, you will generally not be entitled to reduce your U. Amended tax return more:label_amended_20tax_20return more:bizfinance S. Amended tax return more:label_amended_20tax_20return more:bizfinance tax on your government pay. Amended tax return more:label_amended_20tax_20return more:bizfinance If you are neither a U. Amended tax return more:label_amended_20tax_20return more:bizfinance S. Amended tax return more:label_amended_20tax_20return more:bizfinance citizen nor green card holder, and you are treated as a resident of the treaty country under the treaty residence article (after application of the so-called “tie-breaker” rule), then you may be entitled to benefits under the government service article. Amended tax return more:label_amended_20tax_20return more:bizfinance Review the treaty text carefully. Amended tax return more:label_amended_20tax_20return more:bizfinance U. Amended tax return more:label_amended_20tax_20return more:bizfinance S. Amended tax return more:label_amended_20tax_20return more:bizfinance citizens must always file Form 1040. Amended tax return more:label_amended_20tax_20return more:bizfinance Non-U. Amended tax return more:label_amended_20tax_20return more:bizfinance S. Amended tax return more:label_amended_20tax_20return more:bizfinance citizens who are treated as a resident of a treaty country under the treaty residence article (after application of the so-called “tie-breaker” rule) may file Form 1040NR and attach Form 8833. Amended tax return more:label_amended_20tax_20return more:bizfinance If you pay or accrue taxes to the foreign country on your pay, you may be able to relieve double taxation with a foreign tax credit. Amended tax return more:label_amended_20tax_20return more:bizfinance Most income tax treaties contain an article providing relief from double taxation. Amended tax return more:label_amended_20tax_20return more:bizfinance Many treaties contain special foreign tax credit rules for U. Amended tax return more:label_amended_20tax_20return more:bizfinance S. Amended tax return more:label_amended_20tax_20return more:bizfinance citizens who are residents of a treaty country. Amended tax return more:label_amended_20tax_20return more:bizfinance For more information on the mechanics of the foreign tax credit, see Foreign Taxes, later. Amended tax return more:label_amended_20tax_20return more:bizfinance Allowances, Differentials, and Special Pay Most payments received by U. Amended tax return more:label_amended_20tax_20return more:bizfinance S. Amended tax return more:label_amended_20tax_20return more:bizfinance Government civilian employees for working abroad, including pay differentials, are taxable. Amended tax return more:label_amended_20tax_20return more:bizfinance However, certain foreign areas allowances, cost of living allowances, and travel allowances are tax free. Amended tax return more:label_amended_20tax_20return more:bizfinance The following discussions explain the tax treatment of allowances, differentials, and other special pay you receive for employment abroad. Amended tax return more:label_amended_20tax_20return more:bizfinance Pay differentials. Amended tax return more:label_amended_20tax_20return more:bizfinance   Pay differentials you receive as financial incentives for employment abroad are taxable. Amended tax return more:label_amended_20tax_20return more:bizfinance Your employer should have included these differentials as wages on your Form W-2, Wage and Tax Statement. Amended tax return more:label_amended_20tax_20return more:bizfinance   Generally, pay differentials are given for employment under adverse conditions (such as severe climate) or because the post of duty is located in a hazardous or isolated area that may be outside the United States. Amended tax return more:label_amended_20tax_20return more:bizfinance The area does not have to be a qualified hazardous duty area as discussed in Publication 3. Amended tax return more:label_amended_20tax_20return more:bizfinance Pay differentials include: Post differentials, Special incentive differentials, and Danger pay. Amended tax return more:label_amended_20tax_20return more:bizfinance Foreign areas allowances. Amended tax return more:label_amended_20tax_20return more:bizfinance   Certain foreign areas allowances are tax free. Amended tax return more:label_amended_20tax_20return more:bizfinance Your employer should not have included these allowances as wages on your Form W-2. Amended tax return more:label_amended_20tax_20return more:bizfinance   Tax-free foreign areas allowances are allowances (other than post differentials) received under the following laws. Amended tax return more:label_amended_20tax_20return more:bizfinance Title I, chapter 9, of the Foreign Service Act of 1980. Amended tax return more:label_amended_20tax_20return more:bizfinance Section 4 of the Central Intelligence Agency Act of 1949, as amended. Amended tax return more:label_amended_20tax_20return more:bizfinance Title II of the Overseas Differentials and Allowances Act. Amended tax return more:label_amended_20tax_20return more:bizfinance Subsection (e) or (f) of the first section of the Administrative Expenses Act of 1946, as amended, or section 22 of that Act. Amended tax return more:label_amended_20tax_20return more:bizfinance These allowances cover such expenses as: Certain repairs to a leased home, Education of dependents in special situations, Motor vehicle shipment, Separate maintenance for dependents, Temporary quarters, Transportation for medical treatment, and Travel, moving, and storage. Amended tax return more:label_amended_20tax_20return more:bizfinance Allowances received by foreign service employees for representation expenses are also tax free under the above provisions. Amended tax return more:label_amended_20tax_20return more:bizfinance Cost-of-living allowances. Amended tax return more:label_amended_20tax_20return more:bizfinance   If you are stationed outside the continental United States or in Alaska, your gross income does not include cost-of-living allowances (other than amounts received under Title II of the Overseas Differentials and Allowances Act) granted by regulations approved by the President of the United States. Amended tax return more:label_amended_20tax_20return more:bizfinance The cost-of-living portion of any other allowance (for example, a living and quarters allowance) is not included even if the underlying allowance is included in gross income. Amended tax return more:label_amended_20tax_20return more:bizfinance Cost-of-living allowances are not included on your Form W-2. Amended tax return more:label_amended_20tax_20return more:bizfinance Federal court employees. Amended tax return more:label_amended_20tax_20return more:bizfinance   If you are a federal court employee, the preceding paragraph also applies to you. Amended tax return more:label_amended_20tax_20return more:bizfinance The cost-of-living allowance must be granted by rules similar to regulations approved by the President. Amended tax return more:label_amended_20tax_20return more:bizfinance American Institute in Taiwan. Amended tax return more:label_amended_20tax_20return more:bizfinance   If you are an employee of the American Institute in Taiwan, allowances you receive are exempt from U. Amended tax return more:label_amended_20tax_20return more:bizfinance S. Amended tax return more:label_amended_20tax_20return more:bizfinance tax if they are equivalent to tax-exempt allowances received by civilian employees of the U. Amended tax return more:label_amended_20tax_20return more:bizfinance S. Amended tax return more:label_amended_20tax_20return more:bizfinance Government. Amended tax return more:label_amended_20tax_20return more:bizfinance Federal reemployment payments after serving with an international organization. Amended tax return more:label_amended_20tax_20return more:bizfinance   If you are a federal employee who is reemployed by a federal agency after serving with an international organization, you must include in income any reemployment payments you receive. Amended tax return more:label_amended_20tax_20return more:bizfinance These payments are equal to the difference between the pay, allowances, post differential, and other monetary benefits paid by the international organization and the pay and other benefits that would have been paid by the federal agency had you been detailed to the international agency. Amended tax return more:label_amended_20tax_20return more:bizfinance Allowances or reimbursements for travel and transportation expenses. Amended tax return more:label_amended_20tax_20return more:bizfinance   See How To Report Business Expenses, later, for a discussion on whether a reimbursement or allowance for travel or transportation is included in your income. Amended tax return more:label_amended_20tax_20return more:bizfinance Lodging furnished to a principal representative of the United States. Amended tax return more:label_amended_20tax_20return more:bizfinance   If you are a principal representative of the United States stationed in a foreign country, you do not have to include in income the value of lodging (including utilities) provided to you as an official residence. Amended tax return more:label_amended_20tax_20return more:bizfinance However, amounts paid by the U. Amended tax return more:label_amended_20tax_20return more:bizfinance S. Amended tax return more:label_amended_20tax_20return more:bizfinance government for your usual costs of operating and maintaining your household are taxable. Amended tax return more:label_amended_20tax_20return more:bizfinance If amounts are withheld from your pay to cover these expenses, you cannot exclude or deduct those amounts from your income. Amended tax return more:label_amended_20tax_20return more:bizfinance Peace Corps. Amended tax return more:label_amended_20tax_20return more:bizfinance   If you are a Peace Corps volunteer or volunteer leader, some allowances you receive are taxable and others are not. Amended tax return more:label_amended_20tax_20return more:bizfinance Taxable allowances. Amended tax return more:label_amended_20tax_20return more:bizfinance   The following allowances must be included on your Form W-2 and reported on your return as wages. Amended tax return more:label_amended_20tax_20return more:bizfinance If you are a volunteer leader, allowances paid to your spouse and minor children while you are training in the United States. Amended tax return more:label_amended_20tax_20return more:bizfinance The part of living allowances designated by the Director of the Peace Corps as basic compensation. Amended tax return more:label_amended_20tax_20return more:bizfinance This is the part for personal items such as domestic help, laundry and clothing maintenance, entertainment and recreation, transportation, and other miscellaneous expenses. Amended tax return more:label_amended_20tax_20return more:bizfinance Leave allowances. Amended tax return more:label_amended_20tax_20return more:bizfinance Readjustment allowances or “termination payments. Amended tax return more:label_amended_20tax_20return more:bizfinance ” Taxable allowances are considered received by you when credited to your account. Amended tax return more:label_amended_20tax_20return more:bizfinance Example. Amended tax return more:label_amended_20tax_20return more:bizfinance Gary Carpenter, a Peace Corps volunteer, gets $175 a month during his period of service, to be paid to him in a lump sum at the end of his tour of duty. Amended tax return more:label_amended_20tax_20return more:bizfinance Although the allowance is not available to him until the end of his service, Gary must include it in his income on a monthly basis as it is credited to his account. Amended tax return more:label_amended_20tax_20return more:bizfinance Nontaxable allowances. Amended tax return more:label_amended_20tax_20return more:bizfinance   These generally include travel allowances and the part of living allowances for housing, utilities, food, clothing, and household supplies. Amended tax return more:label_amended_20tax_20return more:bizfinance These allowances should not be included on your Form W-2. Amended tax return more:label_amended_20tax_20return more:bizfinance These allowances are tax free whether paid by the U. Amended tax return more:label_amended_20tax_20return more:bizfinance S. Amended tax return more:label_amended_20tax_20return more:bizfinance Government or the foreign country in which you are stationed. Amended tax return more:label_amended_20tax_20return more:bizfinance Other Income Other employment. Amended tax return more:label_amended_20tax_20return more:bizfinance   If, in addition to your U. Amended tax return more:label_amended_20tax_20return more:bizfinance S. Amended tax return more:label_amended_20tax_20return more:bizfinance government pay, you receive income from a private employer or self-employment, you may qualify to claim the foreign earned income exclusion and the foreign housing exclusion and deduction under section 911 based on this other income provided you meet either the bona fide residence test or the physical presence test. Amended tax return more:label_amended_20tax_20return more:bizfinance In addition, if your spouse is a U. Amended tax return more:label_amended_20tax_20return more:bizfinance S. Amended tax return more:label_amended_20tax_20return more:bizfinance citizen or resident alien who earns income in a foreign country that is paid by a private employer or is from self-employment, he or she may also qualify for the exclusion or the deduction. Amended tax return more:label_amended_20tax_20return more:bizfinance For more information, see Publication 54. Amended tax return more:label_amended_20tax_20return more:bizfinance The tax treaty rules relating to income from personal services generally apply to income from private employment. Amended tax return more:label_amended_20tax_20return more:bizfinance As discussed above, the saving clause applies to you if you are a U. Amended tax return more:label_amended_20tax_20return more:bizfinance S. Amended tax return more:label_amended_20tax_20return more:bizfinance citizen or if you are a resident of the United States under the treaty residence article (after application of the so-called “tie-breaker” rule). Amended tax return more:label_amended_20tax_20return more:bizfinance Sale of personal property. Amended tax return more:label_amended_20tax_20return more:bizfinance   If you have a gain from the sale of your personal property (such as an automobile or a home appliance), whether directly or through a favorable exchange rate in converting the proceeds to U. Amended tax return more:label_amended_20tax_20return more:bizfinance S. Amended tax return more:label_amended_20tax_20return more:bizfinance dollars, the excess of the amount received in U. Amended tax return more:label_amended_20tax_20return more:bizfinance S. Amended tax return more:label_amended_20tax_20return more:bizfinance dollars over the cost or other basis of the property is a capital gain. Amended tax return more:label_amended_20tax_20return more:bizfinance Capital gains are reported on Schedule D (Form 1040), Capital Gains and Losses. Amended tax return more:label_amended_20tax_20return more:bizfinance However, losses from sales of your personal property, whether directly or through an unfavorable exchange rate, are not deductible. Amended tax return more:label_amended_20tax_20return more:bizfinance Sale of your home. Amended tax return more:label_amended_20tax_20return more:bizfinance   All or part of the gain on the sale of your main home, within or outside the United States, may be taxable. Amended tax return more:label_amended_20tax_20return more:bizfinance Losses are not deductible. Amended tax return more:label_amended_20tax_20return more:bizfinance   You may be able to exclude from income any gain up to $250,000 ($500,000 on a joint return). Amended tax return more:label_amended_20tax_20return more:bizfinance Generally, you must have owned and used the home as your main residence for two of the five years preceding the date of sale. Amended tax return more:label_amended_20tax_20return more:bizfinance   You can choose to have the 5-year test period for ownership and use suspended during any period you or your spouse is serving on qualified official extended duty as a member of the Foreign Service of the United States, as an employee of the intelligence community, or as an employee or volunteer of the Peace Corps. Amended tax return more:label_amended_20tax_20return more:bizfinance   For detailed information on selling your home, see Publication 523. Amended tax return more:label_amended_20tax_20return more:bizfinance Deductions and Credits — Business Expenses You may deduct certain expenses such as travel expenses, transportation expenses, and other expenses connected to your employment. Amended tax return more:label_amended_20tax_20return more:bizfinance Travel Expenses Subject to certain limits, you can deduct your unreimbursed ordinary and necessary expenses of traveling away from home in connection with the performance of your official duties. Amended tax return more:label_amended_20tax_20return more:bizfinance These expenses include such items as travel costs, meals, lodging, baggage charges, local transportation costs (such as taxi fares), tips, and dry cleaning and laundry fees. Amended tax return more:label_amended_20tax_20return more:bizfinance Your home for tax purposes (tax home) is your regular post of duty regardless of where you maintain your family home. Amended tax return more:label_amended_20tax_20return more:bizfinance Your tax home is not limited to the Embassy, consulate, or duty station. Amended tax return more:label_amended_20tax_20return more:bizfinance It includes the entire city or general area in which your principal place of employment is located. Amended tax return more:label_amended_20tax_20return more:bizfinance Traveling away from home. Amended tax return more:label_amended_20tax_20return more:bizfinance   You are traveling away from home if you meet both of the following requirements. Amended tax return more:label_amended_20tax_20return more:bizfinance Your duties require you to be away from the general area of your tax home substantially longer than an ordinary day's work. Amended tax return more:label_amended_20tax_20return more:bizfinance You need to get sleep or rest to meet the demands of your work while away from home. Amended tax return more:label_amended_20tax_20return more:bizfinance This requirement is not satisfied by merely napping in your car. Amended tax return more:label_amended_20tax_20return more:bizfinance You do not have to be away from your tax home for a whole day or from dusk to dawn as long as your relief from duty is long enough to get necessary sleep or rest. Amended tax return more:label_amended_20tax_20return more:bizfinance Temporary assignment. Amended tax return more:label_amended_20tax_20return more:bizfinance   If your assignment or job away from your tax home is temporary, your tax home does not change. Amended tax return more:label_amended_20tax_20return more:bizfinance You are considered to be away from home for the whole period, and your travel expenses are deductible. Amended tax return more:label_amended_20tax_20return more:bizfinance Generally, a temporary assignment in a single location is one that is realistically expected to last (and does in fact last) for one year or less. Amended tax return more:label_amended_20tax_20return more:bizfinance   However, if your assignment or job is indefinite, the location of the assignment or job becomes your new tax home and you cannot deduct your travel expenses while there. Amended tax return more:label_amended_20tax_20return more:bizfinance An assignment or job in a single location is considered indefinite if it is realistically expected to last for more than one year, whether or not it actually lasts for more than one year. Amended tax return more:label_amended_20tax_20return more:bizfinance   You must determine whether your assignment is temporary or indefinite when you start work. Amended tax return more:label_amended_20tax_20return more:bizfinance If you expect employment to last for one year or less, it is temporary unless there are facts and circumstances that indicate otherwise. Amended tax return more:label_amended_20tax_20return more:bizfinance Employment that is initially temporary may become indefinite due to changed circumstances. Amended tax return more:label_amended_20tax_20return more:bizfinance A series of assignments to the same location, all for short periods but that together cover a long period, may be considered an indefinite assignment. Amended tax return more:label_amended_20tax_20return more:bizfinance Exception for federal crime investigations or prosecutions. Amended tax return more:label_amended_20tax_20return more:bizfinance   If you are a federal employee participating in a federal crime investigation or prosecution, you may be able to deduct travel expenses even if you are away from your tax home for more than one year. Amended tax return more:label_amended_20tax_20return more:bizfinance This exception to the one-year rule applies if the Attorney General certifies that you are traveling for the federal government in a temporary duty status to prosecute, or provide support services for the investigation or prosecution of, a federal crime. Amended tax return more:label_amended_20tax_20return more:bizfinance Limit on meals and entertainment. Amended tax return more:label_amended_20tax_20return more:bizfinance   You can generally deduct only 50% of the cost of your unreimbursed business-related meals and entertainment. Amended tax return more:label_amended_20tax_20return more:bizfinance However, the limit does not apply to expenses reimbursed under a U. Amended tax return more:label_amended_20tax_20return more:bizfinance S. Amended tax return more:label_amended_20tax_20return more:bizfinance Government expense allowance arrangement. Amended tax return more:label_amended_20tax_20return more:bizfinance Individuals subject to hours of service limits. Amended tax return more:label_amended_20tax_20return more:bizfinance   You can deduct 80% of your unreimbursed business-related meal expenses if the meals take place during or incident to any period subject to the Department of Transportation's hours of service limits. Amended tax return more:label_amended_20tax_20return more:bizfinance   Individuals subject to the Department of Transportation's “hours of service” limits include the following. Amended tax return more:label_amended_20tax_20return more:bizfinance Certain air transportation workers (such as pilots, crew, dispatchers, mechanics, and control tower operators) who are under Federal Aviation Administration regulations. Amended tax return more:label_amended_20tax_20return more:bizfinance Interstate truck operators and bus drivers who are under Department of Transportation regulations. Amended tax return more:label_amended_20tax_20return more:bizfinance Certain railroad employees (such as engineers, conductors, train crews, dispatchers, and control operations personnel) who are under Federal Railroad Administration regulations. Amended tax return more:label_amended_20tax_20return more:bizfinance Certain merchant mariners who are under Coast Guard regulations. Amended tax return more:label_amended_20tax_20return more:bizfinance Primary purpose of trip must be for business. Amended tax return more:label_amended_20tax_20return more:bizfinance   If your trip was entirely for business, your unreimbursed travel expenses are generally deductible. Amended tax return more:label_amended_20tax_20return more:bizfinance However, if you spend some of your time on nonbusiness activities, part of your expenses may not be deductible. Amended tax return more:label_amended_20tax_20return more:bizfinance   If your trip was mainly personal, you cannot deduct your travel expenses to and from your destination. Amended tax return more:label_amended_20tax_20return more:bizfinance This applies even if you engage in business activities while there. Amended tax return more:label_amended_20tax_20return more:bizfinance However, you can deduct any expenses while at your destination that are directly related to your business. Amended tax return more:label_amended_20tax_20return more:bizfinance Expenses paid for others. Amended tax return more:label_amended_20tax_20return more:bizfinance   You generally cannot deduct travel expenses of your spouse, dependents, or other individuals who go with you on a trip. Amended tax return more:label_amended_20tax_20return more:bizfinance Home leave. Amended tax return more:label_amended_20tax_20return more:bizfinance   The Foreign Service Act requires U. Amended tax return more:label_amended_20tax_20return more:bizfinance S. Amended tax return more:label_amended_20tax_20return more:bizfinance citizens who are members of the foreign service to take a leave of absence after completing 3 years of continuous service abroad. Amended tax return more:label_amended_20tax_20return more:bizfinance This period is called “home leave” and can be used to take care of certain personal matters such as medical and dental checkups, buying a new wardrobe, and visiting relatives. Amended tax return more:label_amended_20tax_20return more:bizfinance   The amounts paid for your travel, meals, and lodging while on home leave are deductible as travel or business expenses subject to the rules and limits discussed earlier. Amended tax return more:label_amended_20tax_20return more:bizfinance You must be able to verify these amounts in order to claim them. Amended tax return more:label_amended_20tax_20return more:bizfinance Amounts paid on behalf of your family while on home leave are personal living expenses and are not deductible. Amended tax return more:label_amended_20tax_20return more:bizfinance More information. Amended tax return more:label_amended_20tax_20return more:bizfinance   See chapter 1 of Publication 463 for more information on travel expenses. Amended tax return more:label_amended_20tax_20return more:bizfinance Transportation Expenses You can deduct allowable transportation expenses that are directly related to your official duties. Amended tax return more:label_amended_20tax_20return more:bizfinance Transportation expenses include the cost of transportation by air, rail, bus, or taxi, and the cost of driving and maintaining your car. Amended tax return more:label_amended_20tax_20return more:bizfinance They do not include expenses you have when traveling away from home overnight. Amended tax return more:label_amended_20tax_20return more:bizfinance Those expenses are deductible as travel expenses and are discussed earlier. Amended tax return more:label_amended_20tax_20return more:bizfinance Commuting. Amended tax return more:label_amended_20tax_20return more:bizfinance   You cannot deduct your transportation costs of going between your home and your regular business location. Amended tax return more:label_amended_20tax_20return more:bizfinance These costs are personal commuting expenses. Amended tax return more:label_amended_20tax_20return more:bizfinance   If you have one or more regular business locations but must work at a temporary location, you can deduct the costs of commuting to that temporary place of work. Amended tax return more:label_amended_20tax_20return more:bizfinance   If you work at two or more places in the same day, you can deduct your expenses of getting from one place of work to the other. Amended tax return more:label_amended_20tax_20return more:bizfinance More information. Amended tax return more:label_amended_20tax_20return more:bizfinance   For more information on transportation expenses, see chapter 4 of Publication 463. Amended tax return more:label_amended_20tax_20return more:bizfinance Other Employee Business Expenses You may be able to deduct other unreimbursed expenses that are connected with your employment. Amended tax return more:label_amended_20tax_20return more:bizfinance Membership dues. Amended tax return more:label_amended_20tax_20return more:bizfinance   You can deduct membership dues you pay to professional societies that relate to your business or profession. Amended tax return more:label_amended_20tax_20return more:bizfinance Subscriptions. Amended tax return more:label_amended_20tax_20return more:bizfinance   You can deduct subscriptions to professional publications that relate to your business or profession. Amended tax return more:label_amended_20tax_20return more:bizfinance Educational expenses. Amended tax return more:label_amended_20tax_20return more:bizfinance   Generally, educational expenses are considered to be personal expenses and are not deductible. Amended tax return more:label_amended_20tax_20return more:bizfinance However, under some circumstances, educational expenses are deductible as business expenses. Amended tax return more:label_amended_20tax_20return more:bizfinance   You can deduct educational expenses as business expenses if the education: Maintains or improves skills needed in your present position, or Meets the express requirements of your agency to keep your present position, salary, or status. Amended tax return more:label_amended_20tax_20return more:bizfinance   You cannot deduct educational expenses as business expenses if the education: Is needed to enable you to meet minimum educational requirements for qualification in your present position, Is a part of a program of study that can qualify you for a new position, or Is for travel as a form of education. Amended tax return more:label_amended_20tax_20return more:bizfinance These rules apply even if the education is required by your agency or it maintains or improves skills required in your work. Amended tax return more:label_amended_20tax_20return more:bizfinance   See Publication 970, Tax Benefits for Education, for more information on educational expenses. Amended tax return more:label_amended_20tax_20return more:bizfinance    Educational expenses that are not work related, such as costs of sending children to college, are personal expenses that you cannot deduct. Amended tax return more:label_amended_20tax_20return more:bizfinance However, you may be eligible for other tax benefits such as the American opportunity and lifetime learning credits; contributions to a Coverdell education savings account or qualified tuition program; deduction for student loan interest; and exclusion from income of certain savings bond interest. Amended tax return more:label_amended_20tax_20return more:bizfinance These benefits are explained in Publication 970. Amended tax return more:label_amended_20tax_20return more:bizfinance Foreign service representation expenses. Amended tax return more:label_amended_20tax_20return more:bizfinance   If you are an employee of the U. Amended tax return more:label_amended_20tax_20return more:bizfinance S. Amended tax return more:label_amended_20tax_20return more:bizfinance Foreign Service and your position requires you to establish and maintain favorable relations in foreign countries, you may receive a nontaxable allowance for representation expenses. Amended tax return more:label_amended_20tax_20return more:bizfinance If your expenses are more than the allowance you receive, you can deduct the excess expenses as an itemized deduction on Schedule A (Form 1040) if you meet one of the following conditions. Amended tax return more:label_amended_20tax_20return more:bizfinance You have a certificate from the Secretary of State attesting that the expenses were incurred for the benefit of the United States, and would be reimbursable under appropriate legislation if the agency had sufficient funds for these reimbursements. Amended tax return more:label_amended_20tax_20return more:bizfinance The expenses, while specifically not reimbursable under State Department regulations, were ordinary and necessary business expenses incurred in the performance of your official duties. Amended tax return more:label_amended_20tax_20return more:bizfinance    To deduct any expenses for travel, entertainment, and gifts, including those certified by the Secretary of State, you must meet the rules for recordkeeping and accounting to your employer. Amended tax return more:label_amended_20tax_20return more:bizfinance These rules are explained in Publication 463. Amended tax return more:label_amended_20tax_20return more:bizfinance Representation expenses. Amended tax return more:label_amended_20tax_20return more:bizfinance   These are expenses that further the interest of the United States abroad. Amended tax return more:label_amended_20tax_20return more:bizfinance They include certain entertainment, gifts, costs of official functions, and rental of ceremonial dress. Amended tax return more:label_amended_20tax_20return more:bizfinance They generally do not include costs of passenger vehicles (such as cars or aircraft), printing or engraving, membership fees, or amounts a principal representative must pay personally to cover the usual costs of operating and maintaining an official residence. Amended tax return more:label_amended_20tax_20return more:bizfinance   Chapters 300 and 400 of the Standardized Regulations (Government Civilians, Foreign Area) provide more detail on what expenses are allowable as representation expenses. Amended tax return more:label_amended_20tax_20return more:bizfinance These regulations are available on the Internet at www. Amended tax return more:label_amended_20tax_20return more:bizfinance state. Amended tax return more:label_amended_20tax_20return more:bizfinance gov/m/a/als. Amended tax return more:label_amended_20tax_20return more:bizfinance Look under “Standardized Regulations (DSSR)” and click on “DSSR Table of Contents. Amended tax return more:label_amended_20tax_20return more:bizfinance ” Publication 463 and Publication 529, Miscellaneous Deductions, provide more detail on what expenses are allowable as ordinary and necessary business expenses. Amended tax return more:label_amended_20tax_20return more:bizfinance Impairment-related work expenses. Amended tax return more:label_amended_20tax_20return more:bizfinance   If you are an employee with a physical or mental disability, you can deduct attendant-care services at your place of work and other expenses in connection with work that are necessary for you to be able to work. Amended tax return more:label_amended_20tax_20return more:bizfinance Attendant care includes a reader for a blind person and a helper for a person with a physical disability. Amended tax return more:label_amended_20tax_20return more:bizfinance These expenses are reported on Form 2106 or 2106-EZ and carried to Schedule A (Form 1040). Amended tax return more:label_amended_20tax_20return more:bizfinance They are not subject to the 2%-of-adjusted- gross-income limit on miscellaneous itemized deductions. Amended tax return more:label_amended_20tax_20return more:bizfinance Loss on conversion of U. Amended tax return more:label_amended_20tax_20return more:bizfinance S. Amended tax return more:label_amended_20tax_20return more:bizfinance dollars into foreign currency. Amended tax return more:label_amended_20tax_20return more:bizfinance   The conversion of U. Amended tax return more:label_amended_20tax_20return more:bizfinance S. Amended tax return more:label_amended_20tax_20return more:bizfinance dollars into foreign currency at an official rate of exchange that is not as favorable as the free market rate does not result in a deductible loss. Amended tax return more:label_amended_20tax_20return more:bizfinance Recordkeeping Rules If you claim a deduction for unreimbursed business expenses, you must keep timely and adequate records of all your business expenses. Amended tax return more:label_amended_20tax_20return more:bizfinance For example, you must keep records and supporting evidence to prove the following elements about deductions for travel expenses (including meals and lodging while away from home). Amended tax return more:label_amended_20tax_20return more:bizfinance The amount of each separate expense for travel away from home, such as the cost of your transportation, lodging, or meals. Amended tax return more:label_amended_20tax_20return more:bizfinance You may total your incidental expenses if you list them in reasonable categories such as daily meals, gasoline and oil, and taxi fares. Amended tax return more:label_amended_20tax_20return more:bizfinance For each trip away from home, the dates you left and returned and the number of days spent on business. Amended tax return more:label_amended_20tax_20return more:bizfinance The destination or area of your travel, described by the name of the city, town, or similar designation. Amended tax return more:label_amended_20tax_20return more:bizfinance The business reason for your travel or the business benefit gained or expected to be gained from your travel. Amended tax return more:label_amended_20tax_20return more:bizfinance How to record your expenses. Amended tax return more:label_amended_20tax_20return more:bizfinance   Records for proof of your expenses should be kept in an account book, diary, statement of expense, or similar record. Amended tax return more:label_amended_20tax_20return more:bizfinance They should be supported by other records, such as receipts or canceled checks, in sufficient detail to establish the elements for these expenses. Amended tax return more:label_amended_20tax_20return more:bizfinance You do not need to duplicate information in an account book or diary that is shown on a receipt as long as your records and receipts complement each other in an orderly manner. Amended tax return more:label_amended_20tax_20return more:bizfinance   Each expense should be recorded separately in your records. Amended tax return more:label_amended_20tax_20return more:bizfinance However, some items can be totaled in reasonable categories. Amended tax return more:label_amended_20tax_20return more:bizfinance You can make one daily entry for categories such as taxi fares, telephone calls, meals while away from home, gas and oil, and other incidental costs of travel. Amended tax return more:label_amended_20tax_20return more:bizfinance You may record tips separately or with the cost of the service. Amended tax return more:label_amended_20tax_20return more:bizfinance    Documentary evidence generally is required to support all lodging expenses while traveling away from home. Amended tax return more:label_amended_20tax_20return more:bizfinance It is also required for any other expense of $75 or more, except transportation charges if the evidence is not readily available. Amended tax return more:label_amended_20tax_20return more:bizfinance Documentary evidence is a receipt, paid bill, or similar proof sufficient to support an expense. Amended tax return more:label_amended_20tax_20return more:bizfinance It ordinarily will be considered adequate if it shows the amount, date, place, and essential business character of the expense. Amended tax return more:label_amended_20tax_20return more:bizfinance    A canceled check by itself does not prove a business cost. Amended tax return more:label_amended_20tax_20return more:bizfinance You must have other evidence to show that the check was used for a business purpose. Amended tax return more:label_amended_20tax_20return more:bizfinance Your records must be timely. Amended tax return more:label_amended_20tax_20return more:bizfinance   Record the elements for the expense in your account book or other record at or near the time of the expense. Amended tax return more:label_amended_20tax_20return more:bizfinance A timely-kept record has more value than statements prepared later when, generally, there is a lack of accurate recall. Amended tax return more:label_amended_20tax_20return more:bizfinance Confidential information. Amended tax return more:label_amended_20tax_20return more:bizfinance   You do not need to put confidential information relating to an element of a deductible expense (such as the place, business purpose, or business relationship) in your account book, diary, or other record. Amended tax return more:label_amended_20tax_20return more:bizfinance However, you do have to record the information elsewhere at or near the time of the expense and have it available to fully prove that element of the expense. Amended tax return more:label_amended_20tax_20return more:bizfinance How To Report Business Expenses As a U. Amended tax return more:label_amended_20tax_20return more:bizfinance S. Amended tax return more:label_amended_20tax_20return more:bizfinance Government employee, your business expense reimbursements are generally paid under an accountable plan and are not included in your wages on your Form W-2. Amended tax return more:label_amended_20tax_20return more:bizfinance If your expenses are not more than the reimbursements, you do not need to show your expenses or reimbursements on your return. Amended tax return more:label_amended_20tax_20return more:bizfinance However, if you do not account to your employer for a travel advance or if you do not return any excess advance within a reasonable period of time, the advance (or excess) will be included in your wages on your Form W-2. Amended tax return more:label_amended_20tax_20return more:bizfinance If you are entitled to a reimbursement from your employer but you do not claim it, you cannot deduct the expenses to which that unclaimed reimbursement applies. Amended tax return more:label_amended_20tax_20return more:bizfinance Form 2106 or Form 2106-EZ. Amended tax return more:label_amended_20tax_20return more:bizfinance   You must complete Form 2106 or 2106-EZ to deduct your expenses. Amended tax return more:label_amended_20tax_20return more:bizfinance Also, if your actual expenses are more than your reimbursements, you can complete Form 2106 or 2106-EZ to deduct your excess expenses. Amended tax return more:label_amended_20tax_20return more:bizfinance Generally, you must include all of your expenses and reimbursements on Form 2106 or 2106-EZ and carry your allowable expense to Schedule A (Form 1040). Amended tax return more:label_amended_20tax_20return more:bizfinance Your allowable expense is then generally subject to the 2%-of-adjusted-gross-income limit. Amended tax return more:label_amended_20tax_20return more:bizfinance Form 2106-EZ. Amended tax return more:label_amended_20tax_20return more:bizfinance   You may be able to use Form 2106-EZ instead of the more complex Form 2106 for reporting unreimbursed employee business expenses. Amended tax return more:label_amended_20tax_20return more:bizfinance You can use Form 2106-EZ if you meet both of the following conditions. Amended tax return more:label_amended_20tax_20return more:bizfinance You are not reimbursed by your employer for any expenses. Amended tax return more:label_amended_20tax_20return more:bizfinance (Amounts your employer included in your wages on your Form W-2 are not considered reimbursements. Amended tax return more:label_amended_20tax_20return more:bizfinance ) If you claim car expenses, you use the standard mileage rate. Amended tax return more:label_amended_20tax_20return more:bizfinance Deductions and Credits — Nonbusiness Expenses In addition to deductible business expenses, you may be entitled to deduct certain other expenses. Amended tax return more:label_amended_20tax_20return more:bizfinance Moving Expenses If you changed job locations or started a new job, you may be able to deduct the reasonable expenses of moving yourself, your family, and your household goods and personal effects to your new home. Amended tax return more:label_amended_20tax_20return more:bizfinance However, you cannot deduct any expenses for which you received a tax-free allowance as a U. Amended tax return more:label_amended_20tax_20return more:bizfinance S. Amended tax return more:label_amended_20tax_20return more:bizfinance Government employee. Amended tax return more:label_amended_20tax_20return more:bizfinance To deduct moving expenses, your move must be closely related to the start of work and you must meet the distance test and the time test. Amended tax return more:label_amended_20tax_20return more:bizfinance Closely related to the start of work. Amended tax return more:label_amended_20tax_20return more:bizfinance   The move must be closely related, both in time and in place, to the start of work at the new location. Amended tax return more:label_amended_20tax_20return more:bizfinance In general, you must have incurred your moving expenses within one year from the time you first report to your new job or business. Amended tax return more:label_amended_20tax_20return more:bizfinance   A move generally is not considered closely related in place to the start of work if the distance from your new home to the new job location is more than the distance from your former home to the new job location. Amended tax return more:label_amended_20tax_20return more:bizfinance A move that does not meet this requirement may qualify if you can show that you must live at the new home as a condition of employment, or you will spend less time or money commuting from the new home to the new job. Amended tax return more:label_amended_20tax_20return more:bizfinance Distance test. Amended tax return more:label_amended_20tax_20return more:bizfinance   Your new main job location must be at least 50 miles farther from your former home than your old main job location was. Amended tax return more:label_amended_20tax_20return more:bizfinance If you did not have an old job location, your new job location must be at least 50 miles from your former home. Amended tax return more:label_amended_20tax_20return more:bizfinance Time test. Amended tax return more:label_amended_20tax_20return more:bizfinance   If you are an employee, you must work full time for at least 39 weeks during the first 12 months after you arrive in the general area of your new job location. Amended tax return more:label_amended_20tax_20return more:bizfinance Deductible moving expenses. Amended tax return more:label_amended_20tax_20return more:bizfinance   Moving expenses that can be deducted include the reasonable costs of: Moving household goods and personal effects (including packing, crating, in-transit storage, and insurance) of both you and members of your household, and Transportation and lodging for yourself and members of your household for one trip from your former home to your new home (including costs of getting passports). Amended tax return more:label_amended_20tax_20return more:bizfinance    The cost of your meals is not a deductible moving expense. Amended tax return more:label_amended_20tax_20return more:bizfinance   The costs of moving household goods include the reasonable expenses of moving household goods and personal effects to and from storage. Amended tax return more:label_amended_20tax_20return more:bizfinance For a foreign move, the costs also include expenses of storing the goods and effects for part or all of the period that your new job location abroad continues to be your main job location. Amended tax return more:label_amended_20tax_20return more:bizfinance Expenses must be reasonable. Amended tax return more:label_amended_20tax_20return more:bizfinance   You can deduct only those expenses that are reasonable for the circumstances of your move. Amended tax return more:label_amended_20tax_20return more:bizfinance For example, the costs of traveling from your former home to your new one should be by the shortest, most direct route available by conventional transportation. Amended tax return more:label_amended_20tax_20return more:bizfinance Members of your household. Amended tax return more:label_amended_20tax_20return more:bizfinance   A member of your household includes anyone who has both your former home and new home as his or her home. Amended tax return more:label_amended_20tax_20return more:bizfinance It does not include a tenant or employee unless you can claim that person as a dependent. Amended tax return more:label_amended_20tax_20return more:bizfinance Retirees. Amended tax return more:label_amended_20tax_20return more:bizfinance   You can deduct the costs of moving to the United States when you permanently retire if both your former main job location and former home were outside the United States and its possessions. Amended tax return more:label_amended_20tax_20return more:bizfinance You do not have to meet the time test described earlier. Amended tax return more:label_amended_20tax_20return more:bizfinance Survivors. Amended tax return more:label_amended_20tax_20return more:bizfinance   You can deduct moving expenses for a move to the United States if you are the spouse or dependent of a person whose main job location at the time of death was outside the United States and its possessions. Amended tax return more:label_amended_20tax_20return more:bizfinance The move must begin within 6 months after the decedent's death. Amended tax return more:label_amended_20tax_20return more:bizfinance It must be from the decedent's former home outside the United States, and that home must also have been your home. Amended tax return more:label_amended_20tax_20return more:bizfinance You do not have to meet the time test described earlier. Amended tax return more:label_amended_20tax_20return more:bizfinance How to report moving expenses. Amended tax return more:label_amended_20tax_20return more:bizfinance   Use Form 3903 to report your moving expenses and figure your allowable deduction. Amended tax return more:label_amended_20tax_20return more:bizfinance Claim the deduction as an adjustment to income on Form 1040. Amended tax return more:label_amended_20tax_20return more:bizfinance (You cannot deduct moving expenses on Form 1040A or Form 1040EZ. Amended tax return more:label_amended_20tax_20return more:bizfinance ) Reimbursements. Amended tax return more:label_amended_20tax_20return more:bizfinance   Generally, you must include reimbursements of, or payments for, nondeductible moving expenses in gross income for the year paid. Amended tax return more:label_amended_20tax_20return more:bizfinance You also must include in gross income reimbursements paid to you under a nonaccountable plan. Amended tax return more:label_amended_20tax_20return more:bizfinance However, there is an exception for the tax-free foreign areas allowances described earlier under Allowances, Differentials, and Special Pay. Amended tax return more:label_amended_20tax_20return more:bizfinance Additional information. Amended tax return more:label_amended_20tax_20return more:bizfinance   For additional information about moving expenses, see Publication 521. Amended tax return more:label_amended_20tax_20return more:bizfinance Other Itemized Deductions You may be able to claim other itemized deductions not connected to your employment. Amended tax return more:label_amended_20tax_20return more:bizfinance Contributions. Amended tax return more:label_amended_20tax_20return more:bizfinance   You can deduct contributions to qualified organizations created or organized in or under the laws of the United States or its possessions. Amended tax return more:label_amended_20tax_20return more:bizfinance You cannot deduct contributions you make directly to foreign organizations (except for certain Canadian, Israeli, and Mexican charities), churches, and governments. Amended tax return more:label_amended_20tax_20return more:bizfinance For more information, see Publication 526, Charitable Contributions. Amended tax return more:label_amended_20tax_20return more:bizfinance Real estate tax and home mortgage interest. Amended tax return more:label_amended_20tax_20return more:bizfinance   If you receive a tax-free housing allowance, your itemized deductions for real estate taxes and home mortgage interest are limited. Amended tax return more:label_amended_20tax_20return more:bizfinance You must reduce the amount of each deduction that would otherwise be allowable by the amount of each expense that is related to the tax-free allowance. Amended tax return more:label_amended_20tax_20return more:bizfinance Example. Amended tax return more:label_amended_20tax_20return more:bizfinance Adam is an IRS employee working overseas who receives a $6,300 tax-free housing and utility allowance. Amended tax return more:label_amended_20tax_20return more:bizfinance During the year, Adam used the allowance, with other funds, to provide a home for himself. Amended tax return more:label_amended_20tax_20return more:bizfinance His expenses for this home totaled $8,400 and consisted of mortgage principal ($500), insurance ($400), real estate taxes ($1,400), mortgage interest ($4,000), and utility costs ($2,100). Amended tax return more:label_amended_20tax_20return more:bizfinance Adam did not have any other expenses related to providing a home for himself. Amended tax return more:label_amended_20tax_20return more:bizfinance Adam must reduce his deductions for home mortgage interest and real estate taxes. Amended tax return more:label_amended_20tax_20return more:bizfinance He figures a reasonable way to reduce them is to multiply them by a fraction: its numerator is $6,300 (the total housing and utility allowance) and its denominator is $8,400 (the total of all payments to which the housing and utility allowance applies). Amended tax return more:label_amended_20tax_20return more:bizfinance The result is 3/4. Amended tax return more:label_amended_20tax_20return more:bizfinance Adam reduces his otherwise allowable home mortgage interest deduction by $3,000 (the $4,000 he paid ×3/4) and his otherwise allowable real estate tax deduction by $1,050 (the $1,400 he paid × 3/4). Amended tax return more:label_amended_20tax_20return more:bizfinance He can deduct $1,000 of his mortgage interest ($4,000 − $3,000) and $350 of his real estate taxes ($1,400 − $1,050) when he itemizes his deductions. Amended tax return more:label_amended_20tax_20return more:bizfinance Exception to the reduction. Amended tax return more:label_amended_20tax_20return more:bizfinance   If you receive a tax-free housing allowance as a member of the military or the clergy, you do not have to reduce your deductions for real estate tax and home mortgage interest expenses you are otherwise entitled to deduct. Amended tax return more:label_amended_20tax_20return more:bizfinance Required statement. Amended tax return more:label_amended_20tax_20return more:bizfinance   If you receive a tax-free housing allowance and have real estate tax or home mortgage interest expenses, attach a statement to your tax return. Amended tax return more:label_amended_20tax_20return more:bizfinance The statement must contain all of the following information. Amended tax return more:label_amended_20tax_20return more:bizfinance The amount of each type of tax-free income you received, such as a tax-free housing allowance or tax-free representation allowance. Amended tax return more:label_amended_20tax_20return more:bizfinance The amount of otherwise deductible expenses attributable to each type of tax-free income. Amended tax return more:label_amended_20tax_20return more:bizfinance The amount attributable to each type of tax-free income that was not directly attributable to that type of tax-free income. Amended tax return more:label_amended_20tax_20return more:bizfinance An explanation of how you determined the amounts not directly attributable to each type of tax-free income. Amended tax return more:label_amended_20tax_20return more:bizfinance   The statement must also indicate that none of the amounts deducted on your return are in any way attributable to tax-free income. Amended tax return more:label_amended_20tax_20return more:bizfinance Foreign Taxes If you pay or accrue taxes to a foreign government, you generally can choose to either claim them as a credit against your U. Amended tax return more:label_amended_20tax_20return more:bizfinance S. Amended tax return more:label_amended_20tax_20return more:bizfinance income tax liability or deduct them as an itemized deduction when figuring your taxable income. Amended tax return more:label_amended_20tax_20return more:bizfinance Do not include the foreign taxes paid or accrued as withheld income taxes in the Payments section of Form 1040. Amended tax return more:label_amended_20tax_20return more:bizfinance Foreign tax credit. Amended tax return more:label_amended_20tax_20return more:bizfinance   Your foreign tax credit is subject to a limit based on your taxable income from foreign sources. Amended tax return more:label_amended_20tax_20return more:bizfinance If you choose to figure a credit against your U. Amended tax return more:label_amended_20tax_20return more:bizfinance S. Amended tax return more:label_amended_20tax_20return more:bizfinance tax liability for the foreign taxes, you generally must complete Form 1116 and attach it to your U. Amended tax return more:label_amended_20tax_20return more:bizfinance S. Amended tax return more:label_amended_20tax_20return more:bizfinance income tax return. Amended tax return more:label_amended_20tax_20return more:bizfinance    You cannot claim a credit for foreign taxes paid on amounts excluded from gross income under the foreign earned income or housing exclusions. Amended tax return more:label_amended_20tax_20return more:bizfinance If all your foreign income is exempt from U. Amended tax return more:label_amended_20tax_20return more:bizfinance S. Amended tax return more:label_amended_20tax_20return more:bizfinance tax, you will not be able to claim a foreign tax credit. Amended tax return more:label_amended_20tax_20return more:bizfinance   If, because of the limit on the credit, you cannot use the full amount of qualified foreign taxes paid or accrued in the tax year, you are allowed to carry the excess back 1 year and then forward 10 years. Amended tax return more:label_amended_20tax_20return more:bizfinance Exemption from limit. Amended tax return more:label_amended_20tax_20return more:bizfinance   You can elect to not be subject to the foreign tax limit if you meet all the following conditions. Amended tax return more:label_amended_20tax_20return more:bizfinance Your only foreign income is passive income, such as interest, dividends, and royalties. Amended tax return more:label_amended_20tax_20return more:bizfinance The total of all your foreign taxes is not more than $300 ($600 for joint tax returns). Amended tax return more:label_amended_20tax_20return more:bizfinance The foreign income and taxes are reported to you on a payee statement, such as Form 1099-DIV, Dividends and Distributions, or 1099-INT, Interest Income. Amended tax return more:label_amended_20tax_20return more:bizfinance If you make the election, you can claim a foreign tax credit without filing Form 1116. Amended tax return more:label_amended_20tax_20return more:bizfinance However, you cannot carry back or carry over any unused foreign tax to or from this year. Amended tax return more:label_amended_20tax_20return more:bizfinance See the instructions for the appropriate line in the Tax and Credits section of Form 1040. Amended tax return more:label_amended_20tax_20return more:bizfinance Foreign tax deduction. Amended tax return more:label_amended_20tax_20return more:bizfinance   If you choose to deduct all foreign income taxes on your U. Amended tax return more:label_amended_20tax_20return more:bizfinance S. Amended tax return more:label_amended_20tax_20return more:bizfinance income tax return, itemize the deduction on Schedule A (Form 1040). Amended tax return more:label_amended_20tax_20return more:bizfinance You cannot deduct foreign taxes paid on income you exclude under the foreign earned income or housing exclusions. Amended tax return more:label_amended_20tax_20return more:bizfinance Example. Amended tax return more:label_amended_20tax_20return more:bizfinance Dennis and Christina are married and live and work in Country X. Amended tax return more:label_amended_20tax_20return more:bizfinance Dennis works for the U. Amended tax return more:label_amended_20tax_20return more:bizfinance S. Amended tax return more:label_amended_20tax_20return more:bizfinance Government and Christina is employed by a private company. Amended tax return more:label_amended_20tax_20return more:bizfinance They pay income tax to Country X on Christina's income only. Amended tax return more:label_amended_20tax_20return more:bizfinance Dennis and Christina file a joint tax return and exclude all of Christina's income. Amended tax return more:label_amended_20tax_20return more:bizfinance They cannot claim a foreign tax credit or take a deduction for the taxes paid to Country X. Amended tax return more:label_amended_20tax_20return more:bizfinance Deduction for other foreign taxes. Amended tax return more:label_amended_20tax_20return more:bizfinance   The deduction for foreign taxes other than foreign income taxes is not related to the foreign tax credit. Amended tax return more:label_amended_20tax_20return more:bizfinance You can take deductions for these miscellaneous foreign taxes and also claim the foreign tax credit for income taxes paid to a foreign country. Amended tax return more:label_amended_20tax_20return more:bizfinance   You can deduct real property taxes you pay that are imposed on you by a foreign country. Amended tax return more:label_amended_20tax_20return more:bizfinance You take this deduction on Schedule A (Form 1040). Amended tax return more:label_amended_20tax_20return more:bizfinance You cannot deduct other foreign taxes, such as personal property taxes, unless you incurred the expenses in a trade or business or in the production of income. Amended tax return more:label_amended_20tax_20return more:bizfinance More information. Amended tax return more:label_amended_20tax_20return more:bizfinance   The foreign tax credit and deduction, their limits, and carryback and carryover provisions are discussed in detail in Publication 514. Amended tax return more:label_amended_20tax_20return more:bizfinance Local (Foreign) Tax Return As a U. Amended tax return more:label_amended_20tax_20return more:bizfinance S. Amended tax return more:label_amended_20tax_20return more:bizfinance Government employee, you are expected to observe and fulfill all tax obligations imposed by the host country government. Amended tax return more:label_amended_20tax_20return more:bizfinance Check with local tax authorities to determine whether you are considered a tax resident of your host country, whether you are required to file a host country tax return and whether you owe taxes to the host country. Amended tax return more:label_amended_20tax_20return more:bizfinance Tax Treaty Benefits As discussed earlier, most income tax treaties contain an article relating to remuneration from government services. Amended tax return more:label_amended_20tax_20return more:bizfinance Review the treaty text carefully to determine whether your U. Amended tax return more:label_amended_20tax_20return more:bizfinance S. Amended tax return more:label_amended_20tax_20return more:bizfinance Government remuneration is taxable in the host country. Amended tax return more:label_amended_20tax_20return more:bizfinance You will first have to determine whether you are a resident of your host country under the treaty residence article (after application of the so-called “tie-breaker” rule). Amended tax return more:label_amended_20tax_20return more:bizfinance If you or your spouse receives income from a private employer or self-employment, review the tax treaty rules relating to income from personal services to determine whether that income is taxable in the host country. Amended tax return more:label_amended_20tax_20return more:bizfinance If you pay or accrue taxes to both the host country and the United States, you may be able to relieve double taxation with a foreign tax credit. Amended tax return more:label_amended_20tax_20return more:bizfinance Most income tax treaties contain an article providing relief from double taxation. Amended tax return more:label_amended_20tax_20return more:bizfinance Many treaties contain special foreign tax credit rules for U. Amended tax return more:label_amended_20tax_20return more:bizfinance S. Amended tax return more:label_amended_20tax_20return more:bizfinance citizens who are residents of a treaty country. Amended tax return more:label_amended_20tax_20return more:bizfinance For more information about the foreign tax credit, see Foreign Taxes, earlier. Amended tax return more:label_amended_20tax_20return more:bizfinance Other Agreements The United States may be a party to agreements other than income tax treaties that may affect your tax obligations to the host country. Amended tax return more:label_amended_20tax_20return more:bizfinance For example, consular employees may be exempt from host country tax under the Vienna Convention on Consular Relations or bilateral consular agreements. Amended tax return more:label_amended_20tax_20return more:bizfinance Similarly, certain diplomatic staff may be exempt from host country tax under the Vienna Convention on Diplomatic Relations. Amended tax return more:label_amended_20tax_20return more:bizfinance Check with the appropriate U. Amended tax return more:label_amended_20tax_20return more:bizfinance S. Amended tax return more:label_amended_20tax_20return more:bizfinance Embassy for more information. Amended tax return more:label_amended_20tax_20return more:bizfinance Double Withholding If your U. Amended tax return more:label_amended_20tax_20return more:bizfinance S. Amended tax return more:label_amended_20tax_20return more:bizfinance government pay is subject to withholding in both the United States and the foreign country, you may reduce the amount of U. Amended tax return more:label_amended_20tax_20return more:bizfinance S. Amended tax return more:label_amended_20tax_20return more:bizfinance tax that is withheld from your pay if you expect to be entitled to a foreign tax credit on your U. Amended tax return more:label_amended_20tax_20return more:bizfinance S. Amended tax return more:label_amended_20tax_20return more:bizfinance income tax return on this income. Amended tax return more:label_amended_20tax_20return more:bizfinance Complete Worksheet 1-6 in Publication 505, Tax Withholding and Estimated Tax, to determine how to revise Form W-4, Employee’s Withholding Allowance Certificate. Amended tax return more:label_amended_20tax_20return more:bizfinance How To Get Tax Help You can get help with unresolved tax issues, order free publications and forms, ask tax questions, and get information from the IRS in several ways. Amended tax return more:label_amended_20tax_20return more:bizfinance By selecting the method that is best for you, you will have quick and easy access to tax help. Amended tax return more:label_amended_20tax_20return more:bizfinance Free help with your tax return. Amended tax return more:label_amended_20tax_20return more:bizfinance   Free help in preparing your return is available nationwide from IRS-certified volunteers. Amended tax return more:label_amended_20tax_20return more:bizfinance The Volunteer Income Tax Assistance (VITA) program is designed to help low-moderate income, elderly, disabled, and limited English proficient taxpayers. Amended tax return more:label_amended_20tax_20return more:bizfinance The Tax Counseling for the Elderly (TCE) program is designed to assist taxpayers age 60 and older with their tax returns. Amended tax return more:label_amended_20tax_20return more:bizfinance Most VITA and TCE sites offer free electronic filing and all volunteers will let you know about credits and deductions you may be entitled to claim. Amended tax return more:label_amended_20tax_20return more:bizfinance Some VITA and TCE sites provide taxpayers the opportunity to prepare their return with the assistance of an IRS-certified volunteer. Amended tax return more:label_amended_20tax_20return more:bizfinance To find the nearest VITA or TCE site, visit IRS. Amended tax return more:label_amended_20tax_20return more:bizfinance gov or call 1-800-906-9887 or 1-800-829-1040. Amended tax return more:label_amended_20tax_20return more:bizfinance   As part of the TCE program, AARP offers the Tax-Aide counseling program. Amended tax return more:label_amended_20tax_20return more:bizfinance To find the nearest AARP Tax-Aide site, visit AARP's website at www. Amended tax return more:label_amended_20tax_20return more:bizfinance aarp. Amended tax return more:label_amended_20tax_20return more:bizfinance org/money/taxaide or call 1-888-227-7669. Amended tax return more:label_amended_20tax_20return more:bizfinance   For more information on these programs, go to IRS. Amended tax return more:label_amended_20tax_20return more:bizfinance gov and enter “VITA” in the search box. Amended tax return more:label_amended_20tax_20return more:bizfinance Internet. Amended tax return more:label_amended_20tax_20return more:bizfinance You can access the IRS website at IRS. Amended tax return more:label_amended_20tax_20return more:bizfinance gov 24 hours a day, 7 days a week to: E-file your return. Amended tax return more:label_amended_20tax_20return more:bizfinance Find out about commercial tax preparation and e-file services available free to eligible taxpayers. Amended tax return more:label_amended_20tax_20return more:bizfinance Check the status of your 2012 refund. Amended tax return more:label_amended_20tax_20return more:bizfinance Go to IRS. Amended tax return more:label_amended_20tax_20return more:bizfinance gov and click on Where’s My Refund. Amended tax return more:label_amended_20tax_20return more:bizfinance Information about your return will generally be available within 24 hours after the IRS receives your e-filed return, or 4 weeks after you mail your paper return. Amended tax return more:label_amended_20tax_20return more:bizfinance If you filed Form 8379 with your return, wait 14 weeks (11 weeks if you filed electronically). Amended tax return more:label_amended_20tax_20return more:bizfinance Have your 2012 tax return handy so you can provide your social security number, your filing status, and the exact whole dollar amount of your refund. Amended tax return more:label_amended_20tax_20return more:bizfinance Where's My Refund? has a new look this year! The tool will include a tracker that displays progress through three stages: (1) return received, (2) refund approved, and (3) refund sent. Amended tax return more:label_amended_20tax_20return more:bizfinance Where's My Refund? will provide an actual personalized refund date as soon as the IRS processes your tax return and approves your refund. Amended tax return more:label_amended_20tax_20return more:bizfinance So in a change from previous filing seasons, you won't get an estimated refund date right away. Amended tax return more:label_amended_20tax_20return more:bizfinance Where's My Refund? includes information for the most recent return filed in the current year and does not include information about amended returns. Amended tax return more:label_amended_20tax_20return more:bizfinance You can obtain a free transcript online at IRS. Amended tax return more:label_amended_20tax_20return more:bizfinance gov by clicking on Order a Return or Account Transcript under “Tools. Amended tax return more:label_amended_20tax_20return more:bizfinance ” For a transcript by phone, call 1-800-908-9946 and follow the prompts in the recorded message. Amended tax return more:label_amended_20tax_20return more:bizfinance You will be prompted to provide your SSN or Individual Taxpayer Identification Number (ITIN), date of birth, street address and ZIP code. Amended tax return more:label_amended_20tax_20return more:bizfinance Download forms, including talking tax forms, instructions, and publications. Amended tax return more:label_amended_20tax_20return more:bizfinance Order IRS products. Amended tax return more:label_amended_20tax_20return more:bizfinance Research your tax questions. Amended tax return more:label_amended_20tax_20return more:bizfinance Search publications by topic or keyword. Amended tax return more:label_amended_20tax_20return more:bizfinance Use the Internal Revenue Code, regulations, or other official guidance. Amended tax return more:label_amended_20tax_20return more:bizfinance View Internal Revenue Bulletins (IRBs) published in the last few years. Amended tax return more:label_amended_20tax_20return more:bizfinance Figure your withholding allowances using the IRS Withholding Calculator at www. Amended tax return more:label_amended_20tax_20return more:bizfinance irs. Amended tax return more:label_amended_20tax_20return more:bizfinance gov/individuals. Amended tax return more:label_amended_20tax_20return more:bizfinance Determine if Form 6251 (Alternative Minimum Tax— Individuals), must be filed by using our Alternative Minimum Tax (AMT) Assistant available at IRS. Amended tax return more:label_amended_20tax_20return more:bizfinance gov by typing Alternative Minimum Tax Assistant in the search box. Amended tax return more:label_amended_20tax_20return more:bizfinance Sign up to receive local and national tax news by email. Amended tax return more:label_amended_20tax_20return more:bizfinance Get information on starting and operating a small business. Amended tax return more:label_amended_20tax_20return more:bizfinance Phone. Amended tax return more:label_amended_20tax_20return more:bizfinance Many services are available by phone. Amended tax return more:label_amended_20tax_20return more:bizfinance   Ordering forms, instructions, and publications. Amended tax return more:label_amended_20tax_20return more:bizfinance Call 1-800-TAX-FORM (1-800-829-3676) to order current-year forms, instructions, and publications, and prior-year forms and instructions (limited to 5 years). Amended tax return more:label_amended_20tax_20return more:bizfinance You should receive your order within 10 days. Amended tax return more:label_amended_20tax_20return more:bizfinance Asking tax questions. Amended tax return more:label_amended_20tax_20return more:bizfinance Call the IRS with your tax questions at 1-800-829-1040. Amended tax return more:label_amended_20tax_20return more:bizfinance Solving problems. Amended tax return more:label_amended_20tax_20return more:bizfinance You can get face-to-face help solving tax problems most business days in IRS Taxpayer Assistance Centers (TAC). Amended tax return more:label_amended_20tax_20return more:bizfinance An employee can explain IRS letters, request adjustments to your account, or help you set up a payment plan. Amended tax return more:label_amended_20tax_20return more:bizfinance Call your local Taxpayer Assistance Center for an appointment. Amended tax return more:label_amended_20tax_20return more:bizfinance To find the number, go to www. Amended tax return more:label_amended_20tax_20return more:bizfinance irs. Amended tax return more:label_amended_20tax_20return more:bizfinance gov/localcontacts or look in the phone book under United States Government, Internal Revenue Service. Amended tax return more:label_amended_20tax_20return more:bizfinance TTY/TDD equipment. Amended tax return more:label_amended_20tax_20return more:bizfinance If you have access to TTY/TDD equipment, call 1-800-829-4059 to ask tax questions or to order forms and publications. Amended tax return more:label_amended_20tax_20return more:bizfinance The TTY/TDD telephone number is for individuals who are deaf, hard of hearing, or have a speech disability. Amended tax return more:label_amended_20tax_20return more:bizfinance These individuals can also access the IRS through relay services such as the Federal Relay Service at www. Amended tax return more:label_amended_20tax_20return more:bizfinance gsa. Amended tax return more:label_amended_20tax_20return more:bizfinance gov/fedrelay. Amended tax return more:label_amended_20tax_20return more:bizfinance TeleTax topics. Amended tax return more:label_amended_20tax_20return more:bizfinance Call 1-800-829-4477 to listen to pre-recorded messages covering various tax topics. Amended tax return more:label_amended_20tax_20return more:bizfinance Checking the status of your 2012 refund. Amended tax return more:label_amended_20tax_20return more:bizfinance To check the status of your 2012 refund, call 1-800-829-1954 or 1-800-829-4477 (automated Where's My Refund? information 24 hours a day, 7 days a week). Amended tax return more:label_amended_20tax_20return more:bizfinance Information about your return will generally be available within 24 hours after the IRS receives your e-filed return, or 4 weeks after you mail your paper return. Amended tax return more:label_amended_20tax_20return more:bizfinance If you filed Form 8379 with your return, wait 14 weeks (11 weeks if you filed electronically). Amended tax return more:label_amended_20tax_20return more:bizfinance Have your 2012 tax return handy so you can provide your social security number, your filing status, and the exact whole dollar amount of your refund. Amended tax return more:label_amended_20tax_20return more:bizfinance Where's My Refund? will provide an actual personalized refund date as soon as the IRS processes your tax return and approves your refund. Amended tax return more:label_amended_20tax_20return more:bizfinance Where's My Refund? includes information for the most recent return filed in the current year and does not include information about amended returns. Amended tax return more:label_amended_20tax_20return more:bizfinance Outside the U. Amended tax return more:label_amended_20tax_20return more:bizfinance S. Amended tax return more:label_amended_20tax_20return more:bizfinance If you are outside the United States, taxpayer assistance is available at the following U. Amended tax return more:label_amended_20tax_20return more:bizfinance S Embassies or consulate. Amended tax return more:label_amended_20tax_20return more:bizfinance Beijing, China (86) (10) 8531-3983 Frankfurt, Germany (49) (69) 7535-3834 London, England (44) (20) 7894-0476 Paris, France (33) (1) 4312-2555 Please contact the office for times when assistance will be available. Amended tax return more:label_amended_20tax_20return more:bizfinance If you cannot get to one of these offices, taxpayer assistance is available at (267) 941-1000 (not a toll free call). Amended tax return more:label_amended_20tax_20return more:bizfinance If you are in a U. Amended tax return more:label_amended_20tax_20return more:bizfinance S. Amended tax return more:label_amended_20tax_20return more:bizfinance territory (American Samoa, Guam, Northern Mariana Islands, Puerto Rico, and U. Amended tax return more:label_amended_20tax_20return more:bizfinance S. Amended tax return more:label_amended_20tax_20return more:bizfinance Virgin Islands) and have a tax question, you can call 1-800-829-1040. Amended tax return more:label_amended_20tax_20return more:bizfinance Evaluating the quality of our telephone services. Amended tax return more:label_amended_20tax_20return more:bizfinance To ensure IRS representatives give accurate, courteous, and professional answers, we use several methods to evaluate the quality of our telephone services. Amended tax return more:label_amended_20tax_20return more:bizfinance One method is for a second IRS representative to listen in on or record random telephone calls. Amended tax return more:label_amended_20tax_20return more:bizfinance Another is to ask some callers to complete a short survey at the end of the call. Amended tax return more:label_amended_20tax_20return more:bizfinance Walk-in. Amended tax return more:label_amended_20tax_20return more:bizfinance Some products and services are available on a walk-in basis. Amended tax return more:label_amended_20tax_20return more:bizfinance   Products. Amended tax return more:label_amended_20tax_20return more:bizfinance You can walk in to some post offices, libraries, and IRS offices to pick up certain forms, instructions, and publications. Amended tax return more:label_amended_20tax_20return more:bizfinance Some IRS offices, libraries, and city and county government offices have a collection of products available to photocopy from reproducible proofs. Amended tax return more:label_amended_20tax_20return more:bizfinance Also, some IRS offices and libraries have the Internal Revenue Code, regulations, Internal Revenue Bulletins, and Cumulative Bulletins available for research purposes. Amended tax return more:label_amended_20tax_20return more:bizfinance Services. Amended tax return more:label_amended_20tax_20return more:bizfinance You can walk in to your local TAC most business days for personal, face-to-face tax help. Amended tax return more:label_amended_20tax_20return more:bizfinance An employee can explain IRS letters, request adjustments to your tax account, or help you set up a payment plan. Amended tax return more:label_amended_20tax_20return more:bizfinance If you need to resolve a tax problem, have questions about how the tax law applies to your individual tax return, or you are more comfortable talking with someone in person, visit your local TAC where you can talk with an IRS representative face-to-face. Amended tax return more:label_amended_20tax_20return more:bizfinance No appointment is necessary—just walk in. Amended tax return more:label_amended_20tax_20return more:bizfinance Before visiting, check www. Amended tax return more:label_amended_20tax_20return more:bizfinance irs. Amended tax return more:label_amended_20tax_20return more:bizfinance gov/localcontacts for hours of operation and services provided. Amended tax return more:label_amended_20tax_20return more:bizfinance If you have an ongoing, complex tax account problem or a special need, such as a disability, an appointment can be requested by calling your local TAC. Amended tax return more:label_amended_20tax_20return more:bizfinance You can leave a message and a representative will call you back within 2 business days. Amended tax return more:label_amended_20tax_20return more:bizfinance All other issues will be handled without an appointment. Amended tax return more:label_amended_20tax_20return more:bizfinance To call your local TAC, go to  www. Amended tax return more:label_amended_20tax_20return more:bizfinance irs. Amended tax return more:label_amended_20tax_20return more:bizfinance gov/localcontacts or look in the phone book under United States Government, Internal Revenue Service. Amended tax return more:label_amended_20tax_20return more:bizfinance Outside the U. Amended tax return more:label_amended_20tax_20return more:bizfinance S. Amended tax return more:label_amended_20tax_20return more:bizfinance If you are outside the United States during the filing period (January to mid-June), you can get the necessary federal tax forms and publications from most U. Amended tax return more:label_amended_20tax_20return more:bizfinance S. Amended tax return more:label_amended_20tax_20return more:bizfinance Embassies and consulates. Amended tax return more:label_amended_20tax_20return more:bizfinance Mail. Amended tax return more:label_amended_20tax_20return more:bizfinance You can send your order for forms, instructions, and publications to the address below. Amended tax return more:label_amended_20tax_20return more:bizfinance You should receive a response within 10 days after your request is received. Amended tax return more:label_amended_20tax_20return more:bizfinance  Internal Revenue Service 1201 N. Amended tax return more:label_amended_20tax_20return more:bizfinance Mitsubishi Motorway Bloomington, IL 61705-6613 Outside the U. Amended tax return more:label_amended_20tax_20return more:bizfinance S. Amended tax return more:label_amended_20tax_20return more:bizfinance If you are outside the United States, you can get tax assistance by writing to the address below. Amended tax return more:label_amended_20tax_20return more:bizfinance  Internal Revenue Service International Accounts Philadelphia, PA 19255-0725 Taxpayer Advocate Service. Amended tax return more:label_amended_20tax_20return more:bizfinance   The Taxpayer Advocate Service (TAS) is your voice at the IRS. Amended tax return more:label_amended_20tax_20return more:bizfinance Its job is to ensure that every taxpayer is treated fairly, and that you know and understand your rights. Amended tax return more:label_amended_20tax_20return more:bizfinance TAS offers free help to guide you through the often-confusing process of resolving tax problems that you haven’t been able to solve on your own. Amended tax return more:label_amended_20tax_20return more:bizfinance Remember, the worst thing you can do is nothing at all. Amended tax return more:label_amended_20tax_20return more:bizfinance   TAS can help if you can’t resolve your problem with the IRS and: Your problem is causing financial difficulties for you, your family, or your business. Amended tax return more:label_amended_20tax_20return more:bizfinance You face (or your business is facing) an immediate threat of adverse action. Amended tax return more:label_amended_20tax_20return more:bizfinance You have tried repeatedly to contact the IRS but no one has responded, or the IRS has not responded to you by the date promised. Amended tax return more:label_amended_20tax_20return more:bizfinance   If you qualify for help, they will do everything they can to get your problem resolved. Amended tax return more:label_amended_20tax_20return more:bizfinance You will be assigned to one advocate who will be with you at every turn. Amended tax return more:label_amended_20tax_20return more:bizfinance TAS has offices in every state, the District of Columbia, and Puerto Rico. Amended tax return more:label_amended_20tax_20return more:bizfinance Although TAS is independent within the IRS, their advocates know how to work with the IRS to get your problems resolved. Amended tax return more:label_amended_20tax_20return more:bizfinance And its services are always free. Amended tax return more:label_amended_20tax_20return more:bizfinance   As a taxpayer, you have rights that the IRS must abide by in its dealings with you. Amended tax return more:label_amended_20tax_20return more:bizfinance The TAS tax toolkit at www. Amended tax return more:label_amended_20tax_20return more:bizfinance TaxpayerAdvocate. Amended tax return more:label_amended_20tax_20return more:bizfinance irs. Amended tax return more:label_amended_20tax_20return more:bizfinance gov can help you understand these rights. Amended tax return more:label_amended_20tax_20return more:bizfinance   If you think TAS might be able to help you, call your local advocate, whose number is in your phone book and on our website at www. Amended tax return more:label_amended_20tax_20return more:bizfinance irs. Amended tax return more:label_amended_20tax_20return more:bizfinance gov/advocate. Amended tax return more:label_amended_20tax_20return more:bizfinance You can also call the toll-free number at 1-877-777-4778. Amended tax return more:label_amended_20tax_20return more:bizfinance Deaf and hard of hearing individuals who have access to TTY/TDD equipment can call 1-800-829-4059. Amended tax return more:label_amended_20tax_20return more:bizfinance These individuals can also access the IRS through relay services such as the Federal Relay Service at www. Amended tax return more:label_amended_20tax_20return more:bizfinance gsa. Amended tax return more:label_amended_20tax_20return more:bizfinance gov/fedrelay. Amended tax return more:label_amended_20tax_20return more:bizfinance   TAS also handles large-scale or systemic problems that affect many taxpayers. Amended tax return more:label_amended_20tax_20return more:bizfinance If you know of one of these broad issues, please report it through the Systemic Advocacy Management System at www. Amended tax return more:label_amended_20tax_20return more:bizfinance irs. Amended tax return more:label_amended_20tax_20return more:bizfinance gov/advocate. Amended tax return more:label_amended_20tax_20return more:bizfinance    Outside the U. Amended tax return more:label_amended_20tax_20return more:bizfinance S. Amended tax return more:label_amended_20tax_20return more:bizfinance If you live outside of the United States, you can call the Taxpayer Advocate at (787) 522-8601 in English or (787) 522-8600 in Spanish. Amended tax return more:label_amended_20tax_20return more:bizfinance You can contact the Taxpayer Advocate at: Internal Revenue Service Taxpayer Advocate Service City View Plaza, 48 Carr 165, Suite 2000 Guaynabo, P. Amended tax return more:label_amended_20tax_20return more:bizfinance R. Amended tax return more:label_amended_20tax_20return more:bizfinance 00968-8000 Low Income Taxpayer Clinics (LITCs). Amended tax return more:label_amended_20tax_20return more:bizfinance   Low Income Taxpayer Clinics (LITCs) are independent from the IRS. Amended tax return more:label_amended_20tax_20return more:bizfinance Some clinics serve individuals whose income is below a certain level and who need to resolve a tax problem. Amended tax return more:label_amended_20tax_20return more:bizfinance These clinics provide professional representation before the IRS or in court on audits, appeals, tax collection disputes, and other issues for free or for a small fee. Amended tax return more:label_amended_20tax_20return more:bizfinance Some clinics can provide information about taxpayer rights and responsibilities in many different languages for individuals who speak English as a second language. Amended tax return more:label_amended_20tax_20return more:bizfinance For more information and to find a clinic near you, see the LITC page on www. Amended tax return more:label_amended_20tax_20return more:bizfinance irs. Amended tax return more:label_amended_20tax_20return more:bizfinance gov/advocate or IRS Publication 4134, Low Income Taxpayer Clinic List. Amended tax return more:label_amended_20tax_20return more:bizfinance This publication is also available by calling 1-800-TAX-FORM (1-800-829-3676) or at your local IRS office. Amended tax return more:label_amended_20tax_20return more:bizfinance Free tax services. Amended tax return more:label_amended_20tax_20return more:bizfinance   Publication 910, IRS Guide to Free Tax Services, is your guide to IRS services and resources. Amended tax return more:label_amended_20tax_20return more:bizfinance Learn about free tax information from the IRS, including publications, services, and education and assistance programs. Amended tax return more:label_amended_20tax_20return more:bizfinance The publication also has an index of over 100 TeleTax topics (recorded tax information) you can listen to on the telephone. Amended tax return more:label_amended_20tax_20return more:bizfinance The majority of the information and services listed in this publication are available to you free of charge. Amended tax return more:label_amended_20tax_20return more:bizfinance If there is a fee associated with a resource or service, it is listed in the publication. Amended tax return more:label_amended_20tax_20return more:bizfinance   Accessible versions of IRS published products are available on request in a variety of alternative formats for people with disabilities. Amended tax return more:label_amended_20tax_20return more:bizfinance DVD for tax products. Amended tax return more:label_amended_20tax_20return more:bizfinance You can order Publication 1796, IRS Tax Products DVD, and obtain: Current-year forms, instructions, and publications. Amended tax return more:label_amended_20tax_20return more:bizfinance Prior-year forms, instructions, and publications. Amended tax return more:label_amended_20tax_20return more:bizfinance Tax Map: an electronic research tool and finding aid. Amended tax return more:label_amended_20tax_20return more:bizfinance Tax law frequently asked questions. Amended tax return more:label_amended_20tax_20return more:bizfinance Tax Topics from the IRS telephone response system. Amended tax return more:label_amended_20tax_20return more:bizfinance Internal Revenue Code—Title 26 of the U. Amended tax return more:label_amended_20tax_20return more:bizfinance S. Amended tax return more:label_amended_20tax_20return more:bizfinance Code. Amended tax return more:label_amended_20tax_20return more:bizfinance Links to other Internet-based tax research materials. Amended tax return more:label_amended_20tax_20return more:bizfinance Fill-in, print, and save features for most tax forms. Amended tax return more:label_amended_20tax_20return more:bizfinance Internal Revenue Bulletins. Amended tax return more:label_amended_20tax_20return more:bizfinance Toll-free and email technical support. Amended tax return more:label_amended_20tax_20return more:bizfinance Two releases during the year. Amended tax return more:label_amended_20tax_20return more:bizfinance  – The first release will ship the beginning of January 2013. Amended tax return more:label_amended_20tax_20return more:bizfinance  – The final release will ship the beginning of March 2013. Amended tax return more:label_amended_20tax_20return more:bizfinance Purchase the DVD from National Technical Information Service (NTIS) at www. Amended tax return more:label_amended_20tax_20return more:bizfinance irs. Amended tax return more:label_amended_20tax_20return more:bizfinance gov/cdorders for $30 (no handling fee) or call 1-877-233-6767 toll free to buy the DVD for $30 (plus a $6 handling fee). Amended tax return more:label_amended_20tax_20return more:bizfinance Prev  Up  Next   Home   More Online Publications
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National Taxpayer Advocate Congressional Testimony

 Current Testimony:


Written Statement of Nina E. Olson before the Subcommittee on Financial Services and General Government Committee on Appropriations, U.S. House of Representatives. Subject: Internal Revenue Service Oversight. 02/26/2014

 Prior Testimony:


Written Statement of Nina E. Olson before the Subcommittee on Government Operations, House Committee on Oversight and Government Reform, U.S. House of Representatives. Subject: Identity Theft-Related Tax Fraud. 08/02/2013
 

Written Statement of Nina E. Olson before the Subcommittee on Financial Services and General Government, Committee on Appropriations, United States Senate. Subject: Internal Revenue Service FY 2014 Budget Request. 05/08/2013
 

Written Statement of Nina E. Olson before the Committee on Finance, U.S. Senate. Subject: Tax Fraud, Tax ID Theft, and Tax Reform. 04/16/2013
 

Written Statement of Nina E. Olson before the Subcommittee on Government Organization, Efficiency, and Financial Management - Committee on Oversight and Government Reform, U.S. House of Representatives. Subject: Identity Theft-Related Tax Fraud. 11/29/2012
 

Written Statement of Nina E. Olson before the Committee on Oversight and Government Reform, U.S. House of Representatives. Subject: Tax-Related Provisions of the Affordable Care Act. 08/02/2012
 

Written Statement of Nina E. Olson before the Subcommittee on Crime, Terrorism, and Homeland Security, U.S. House of Representatives, Committee on the Judiciary. Subject: Identity Theft and Income Tax Preparation Fraud. 06/28/2012
 

Written Statement of Nina E. Olson before the Subcommittees on Oversight and Social Security, U.S. House of Representatives, Committee on Ways and Means. Subject: Identity Theft and Tax Fraud. 05/08/2012
 

Written Statement of Nina E. Olson before the Subcommittee on Government Organization, Efficiency, and Financial Management, U.S. House of Representatives, Committee on Oversight and Government Reform. Subject: Tax Compliance and Tax-Fraud Prevention. 04/19/2012
 

Written Statement of Nina E. Olson before the Subcommittee on Fiscal Responsibility and Economic Growth, United States Senate. Subject: Tax Fraud by Identity Theft, Part 2: Status, Progress, and Potential Solutions. 03/20/2012
 

Written Statement of Nina E. Olson before the Committee on Finance, United States Senate. Subject: Complexity and the Tax Gap: Making Tax Compliance Easier and Collecting What's Due. 06/28/2011
 

Written Statement of Nina E. Olson before the Subcommittee on Financial Services and General Government Committee on Appropriations, United States Senate. Subject: Internal Revenue Service FY 2012 Budget Request. 06/08/2011
 

Written Statement of Nina E. Olson before the Subcommittee on Fiscal Responsibility and Economic Growth, Committee on Finance. Subject: Hearing on the Spread of Tax Fraud by Identity Theft: A Threat to Taxpayers, A Drain on the Public Treasury. 05/25/2011
 

Written Statement of Nina E. Olson before the Subcommittee on Oversight, Committee on Ways and Means. Subject: Hearing on Improper Payments in the Administration of Refundable Tax Credits. 05/25/2011
 

Written Statement of Nina E. Olson before the House Committee on Small Business. Subject: Hearing on How Tax Complexity Hinders Small Businesses and the Impact on Job Creation and Economic Growth. 04/13/2011
 

Written Statement of Nina E. Olson before the U.S. House of Representatives, Committee on Ways and Means. Subject: Hearing on Tax Reform. 01/20/2011
 

Written Statement of Nina E. Olson before the U.S. Senate, Committee on Finance. Subject: Tax Filing Season Update - Current IRSW Issues. 04/15/2010
 

Written Statement of Nina E. Olson, before the U.S. House of Representatives, Committee on Ways and Means. Subject: National Taxpayer Advocate's 2009 Annual Report to Congress - 03/16/2010
 

Written Statement of Nina E. Olson, before the U.S. House of Representatives, Committee on Ways and Means.  Subject:  Tax Compliance Challenges Facing Financially Struggling Taxpayers. 02/26/09
 

Written Statement of Nina E. Olson, before the U.S. House of Representatives, Committee on Ways and Means.  Subject:  The Status of Economic Stimulus Payments. 06/19/08
 

Written Statement of Nina E. Olson, before the U.S. Senate Committee on Appropriations. Subject:  Internal Revenue Service FY 2009 Budget Request. 04/16/08
 

Written Statement of Nina E. Olson before the U.S. Senate Committee on Finance. Subject: Identity Theft in Tax Administration. 04/10/08
 

Written Statement of Nina E. Olson, before the U.S. House of Representatives, Committee on Ways and Means. Subject:  The 2008 Tax Return Filing Season; IRS Operations; FY 2009 Budget Proposals; and the National Taxpayer Advocate's 2007 Annual Report to Congress. 03/13/08
 

Written Statement of Nina E. Olson, before the U.S. House of Representatives, Committee on Ways and Means. Subject: IRS Private Debt Collection Program. 05/23/07  [ Appendices transmitted as a separate document]
 

Written Statement of Nina E. Olson, before the U.S. House of Representatives, Committee on Ways and Means, Subcommittee on Select Revenue Measures. Subject: The Alternative Minimum Tax. 03/07/07
 

Written Statement of Nina E. Olson, before the U.S. House of Representatives, Committee on Appropriations, Subcommittee on Financial Services and General Government.  Subject:  Tax Fairness: Policy and Enforcement. 03/05/07
 

Written Statement of Nina E. Olson, before the U.S. House of Representatives, Committee on the Budget. Subject:  The IRS and the Tax Gap. 02/16/07
 

Written Statement of Nina E. Olson, before the U.S. Senate, Committee on Homeland Security and Governmental Affairs, Subcommittee on Federal Financial Management, Government Information, and International Security.  Subject:  The Tax Gap. 09/26/06 
 

Written Statement of Nina E. Olson, before the U.S. Senate, Committee on Finance, Subcommittee of Taxation and IRS Oversight.  Subject:  The Tax Gap. 07/26/06
 

Written Statement of Nina E. Olson, before the U.S. Senate, Committee on Appropriations; Subcommittee on Transportation, Treasury, the Judiciary, Housing and Urban Development, and Related Agencies. Subject:  Internal Revenue Service FY 2007 Budget Request. 04/27/06 
 

Written Statement of Nina E. Olson, before the U.S. House of Representatives, Committee on Small Business.  Subject:  The Effects of Tax Compliance Initiatives on Small Business. 04/05/06 
 

Written Statement of Nina E. Olson, before the U.S. Senate, Committee on Finance. Subject:  Tax Return Preparation Options for Taxpayers. 04/04/06
 

Written Statement of Nina E. Olson, before the U.S. House of Representatives, Committee on Appropriations, Subcommittee on Transportation, Treasury, and Housing and Urban Development, the Judiciary, District of Columbia, and Related Agencies. Subject:  Internal Revenue Service FY 2007 Budget Request. 03/29/06
 

Written Statement of Nina E. Olson  before the Committee on the Budget, United States Senate. Subject:  The Causes of and Solutions to the Federal Tax Gap. 02/15/2006
 

Written Statement of Nina E. Olson, NTA, before the Subcommittee on Federal Financial Management, Government Information, and International Security. Subject: The Tax Gap.  10/26/2005
 

National Taxpayer Advocate Written Testimony, before the House Committee on Small Business. 09/21/05
 

National Taxpayer Advocate Written Testimony before the House Committee on Ways and Means Subcommittee on Oversight on the Regulation of Federal Tax Return Preparers. 07/20/05
 

National Taxpayer Advocate Written Testimony before the Senate Subcommittee on Taxation and IRS Oversight on the Alternative Minimum Tax (AMT). 05/23/05
 

National Taxpayer Advocate Written Testimony for the Joint Review of the Strategic Plans and Budget of the Internal Revenue Service.05/19/05
 

National Taxpayer Advocate Testimony before the President's Advisory Panel on Federal Tax Reform 03/05:


National Taxpayer Advocate Testimony before the Senate Committee of Finance on the Tax Gap and Tax Shelters. 07/21/2004

 

Page Last Reviewed or Updated: 14-Mar-2014

The Amended Tax Return More:label_amended_20tax_20return More:bizfinance

Amended tax return more:label_amended_20tax_20return more:bizfinance 2. Amended tax return more:label_amended_20tax_20return more:bizfinance   Filing Requirements and Required Disclosures Table of Contents Introduction Topics - This chapter discusses: Useful Items - You may want to see: Annual Information ReturnsSupporting Organization Annual Information Return Unrelated Business Income Tax ReturnEstimated tax. Amended tax return more:label_amended_20tax_20return more:bizfinance Employment Tax ReturnsException. Amended tax return more:label_amended_20tax_20return more:bizfinance FUTA tax exception. Amended tax return more:label_amended_20tax_20return more:bizfinance FICA tax exemption election. Amended tax return more:label_amended_20tax_20return more:bizfinance Revoking the election. Amended tax return more:label_amended_20tax_20return more:bizfinance Definitions. Amended tax return more:label_amended_20tax_20return more:bizfinance Effect on employees. Amended tax return more:label_amended_20tax_20return more:bizfinance Political Organization Income Tax ReturnExempt function. Amended tax return more:label_amended_20tax_20return more:bizfinance Political organization taxable income. Amended tax return more:label_amended_20tax_20return more:bizfinance Separate fund. Amended tax return more:label_amended_20tax_20return more:bizfinance Failure to file. Amended tax return more:label_amended_20tax_20return more:bizfinance Failure to pay on time. Amended tax return more:label_amended_20tax_20return more:bizfinance Reporting Requirements for a Political OrganizationForm 8871 Form 8872 Donee Information ReturnCharitable deduction property. Amended tax return more:label_amended_20tax_20return more:bizfinance Publicly traded securities. Amended tax return more:label_amended_20tax_20return more:bizfinance Exceptions. Amended tax return more:label_amended_20tax_20return more:bizfinance Form 8283. Amended tax return more:label_amended_20tax_20return more:bizfinance Information Provided to DonorsDisclosure of Quid Pro Quo Contributions Acknowledgment of Charitable Contributions of $250 or More Acknowledgment of Vehicle Contribution Qualified Intellectual Property Report of Cash Received Public Inspection of Exemption Applications, Annual Returns, and Political Organization Reporting FormsAnnual Information Return Public Inspection of Exemption Application Political Organization Reporting Forms Required DisclosuresSolicitation of Nondeductible Contributions Sales of Information or Services Available Free From Government Dues Used for Lobbying or Political Activities Prohibited Tax Shelter Transactions Miscellaneous RulesOrganizational Changes and Exempt Status Introduction Most exempt organizations (including private foundations) must file various returns and reports at some time during (or following the close of) their accounting period. Amended tax return more:label_amended_20tax_20return more:bizfinance Topics - This chapter discusses: Annual information returns Unrelated business income tax return Employment tax returns Political organization income tax return Reporting requirements for a political organization Donee information return Information provided to donors Report of cash received Public inspection of exemption applications, annual returns, and political organizations reporting forms Required disclosures Miscellaneous rules Useful Items - You may want to see: Publication 15 Circular E, Employer's Tax Guide 15-A Employer's Supplemental Tax Guide 15-B Employer's Tax Guide to Fringe Benefits 598 Tax on Unrelated Business Income of Exempt Organizations Form (and Instructions) 941 Employer's Quarterly Federal Tax Return 990 Return of Organization Exempt From Income Tax 990-EZ Short Form Return of Organization Exempt From Income Tax Schedule A (Form 990 or 990-EZ) Public Charity Status and Public Support Schedule B (Form 990, 990-EZ, or 990-PF) Schedule of Contributors Schedule C (Form 990 or 990-EZ) Political Campaign and Lobbying Activities Schedule D (Form 990) Supplemental Financial Statements Schedule E (Form 990 or 990-EZ) Schools Schedule F (Form 990) Statement of Activities Outside the United States Schedule G (Form 990 or 990-EZ) Supplemental Information Regarding Fundraising or Gaming Activities Schedule H (Form 990) Hospitals Schedule I (Form 990) Grants and Other Assistance to Organizations, Governments, and Individuals in the United States Schedule J (Form 990) Compensation Information Schedule K (Form 990) Supplemental Information on Tax-Exempt Bonds Schedule L (Form 990 or 990-EZ) Transactions With Interested Persons Schedule M (Form 990) Noncash Contributions Schedule N (Form 990 or 990-EZ) Liquidation, Termination, Dissolution, or Significant Disposition of Assets Schedule O (Form 990 or 990-EZ) Supplemental Information to Form 990 Schedule R (Form 990) Related Organizations and Unrelated Partnerships 990-PF Return of Private Foundation or Section 4947(a)(1) Nonexempt Charitable Trust Treated as a Private Foundation 990-BL Information and Initial Excise Tax Return for Black Lung Benefit Trusts and Certain Related Persons 990-T Exempt Organization Business Income Tax Return 990-W Estimated Tax on Unrelated Business Taxable Income for Tax-Exempt Organizations 1120-POL U. Amended tax return more:label_amended_20tax_20return more:bizfinance S. Amended tax return more:label_amended_20tax_20return more:bizfinance Income Tax Return for Certain Political Organizations 4720 Return of Certain Excise Taxes Under Chapters 41 and 42 of the Internal Revenue Code 5768 Election/Revocation of Election by an Eligible Section 501(c)(3) Organization To Make Expenditures To Influence Legislation 6069 Return of Excise Tax on Excess Contributions to Black Lung Benefit Trust Under Section 4953 and Computation of Section 192 Deduction 7004 Application for Automatic Extension of Time to File Certain Business Income Tax, Information, and Other Returns 8274 Certification by Churches and Qualified Church-Controlled Organizations Electing Exemption from Employer Social Security and Medicare Taxes 8282 Donee Information Return 8300 Report of Cash Payments Over $10,000 Received in a Trade or Business 8453-X Political Organization Declaration for Electronic Filing of Notice of Section 527 Status 8822-B Change of Address-Business 8868 Application for Extension of Time to File an Exempt Organization Return 8870 Information Return for Transfers Associated with Certain Personal Benefits Contracts 8871 Political Organization Notice of Section 527 Status 8872 Political Organization Report of Contributions and Expenditures 8886-T Disclosure by Tax-Exempt Entity Regarding Prohibited Tax Shelter Transaction 8899 Notice of Income from Donated Intellectual Property 8940 Request for Miscellaneous Determination See chapter 6 for information about getting these publications and forms. Amended tax return more:label_amended_20tax_20return more:bizfinance Annual Information Returns Every organization exempt from federal income tax under section 501(a) must file an Annual Exempt Organization Return except: A church, an interchurch organization of local units of a church, a convention or association of churches, An integrated auxiliary of a church, A church-affiliated organization that is exclusively engaged in managing funds or maintaining retirement programs, A school below college level affiliated with a church or operated by a religious order, Church-affiliated mission societies if more than half of their activities are conducted in, or are directed at persons in, foreign countries, An exclusively religious activity of any religious order, A state institution, the income of which is excluded from gross income under section 115, A corporation described in section 501(c)(1) that is organized under an Act of Congress, an instrumentality of the United States, and is exempt from Federal income taxes, A stock bonus, pension, or profit-sharing trust that qualifies under section 401 (required to file Form 5500, Annual Return/Report of Employee Benefit Plan), A religious or apostolic organization described in section 501(d) (required to file Form 1065, U. Amended tax return more:label_amended_20tax_20return more:bizfinance S. Amended tax return more:label_amended_20tax_20return more:bizfinance Return of Partnership Income), A governmental unit or an affiliate of a governmental unit that meets the requirements of Revenue Procedure 95-48, 1995-2 C. Amended tax return more:label_amended_20tax_20return more:bizfinance B. Amended tax return more:label_amended_20tax_20return more:bizfinance 418, www. Amended tax return more:label_amended_20tax_20return more:bizfinance irs. Amended tax return more:label_amended_20tax_20return more:bizfinance gov/pub/irs-tege/rp1995-48. Amended tax return more:label_amended_20tax_20return more:bizfinance pdf, A private foundation described in section 501(c)(3) and exempt under section 501(a) (required to file Form 990-PF, Return of Private Foundation), A political organization that is a state or local committee of a political party, a political committee of a state or local candidate, a caucus or association of state or local officials, or required to report under the Federal Election Campaign Act of 1971 as a political committee, An exempt organization (other than a private foundation) that normally has annual gross receipts of $50,000 or less, or A foreign organization, or an organization located in a U. Amended tax return more:label_amended_20tax_20return more:bizfinance S. Amended tax return more:label_amended_20tax_20return more:bizfinance possession, that normally has annual gross receipts from sources within the United States of $50,000 or less. Amended tax return more:label_amended_20tax_20return more:bizfinance Supporting Organization Annual Information Return For tax years ending after August 17, 2006, all section 509(a)(3) supporting organizations are required to file Form 990 or 990-EZ with the IRS regardless of the organization's gross receipts, unless it qualifies as one of the following: An integrated auxiliary of a church; The exclusively religious activities of a religious order; or An organization, the gross receipts of which are normally not more than $5,000, that supports a section 509(a)(3) religious order. Amended tax return more:label_amended_20tax_20return more:bizfinance If the organization is described in item (3) above, then it must submit Form 990-N (e-Postcard) unless it voluntarily files Form 990 or 990-EZ. Amended tax return more:label_amended_20tax_20return more:bizfinance On its annual information return, at Part I, Schedule A (Form 990 or 990-EZ) a supporting organization must: List the section 509(a)(3) organizations to which it provides support, Indicate whether it is a Type I, Type II, or Type III supporting organization, and Certify that the organization is not controlled directly or indirectly by disqualified persons (other than by foundation managers and other than one or more publicly supported organizations). Amended tax return more:label_amended_20tax_20return more:bizfinance Annual Electronic Filing Requirement for Small Tax-Exempt Organizations Small tax-exempt organizations with annual gross receipts normally $50,000 or less must submit Form 990-N, Electronic Notice (e-Postcard) for Tax-Exempt Organizations Not Required to File Form 990 or 990-EZ, with the IRS each year, if they choose not to file a Form 990 or 990-EZ. Amended tax return more:label_amended_20tax_20return more:bizfinance Form 990-N requires the following information: The organization's legal name, and mailing address; Any name under which it operates and does business; Its Internet website address (if any); Its taxpayer identification number; The name and address of a principal officer; Organization's annual tax period; Verification that the organization's annual gross receipts are normally $50,000 or less; and Notification if the organization has terminated. Amended tax return more:label_amended_20tax_20return more:bizfinance Form 990-N is due by the 15th day of the fifth month after the close of the tax year. Amended tax return more:label_amended_20tax_20return more:bizfinance For tax years beginning after December 31, 2006, any organization that fails to meet its annual reporting requirement for 3 consecutive years will automatically lose its tax-exempt status. Amended tax return more:label_amended_20tax_20return more:bizfinance To regain its exempt status an organization will have to reapply for recognition as a tax-exempt organization. Amended tax return more:label_amended_20tax_20return more:bizfinance Exceptions. Amended tax return more:label_amended_20tax_20return more:bizfinance   This filing requirement does not apply to: Churches, their integrated auxiliaries, and conventions or associations of churches; Organizations that are included in a group return; Private foundations required to file Form 990-PF; and Section 509(a)(3) supporting organizations required to file Form 990 or Form 990-EZ. Amended tax return more:label_amended_20tax_20return more:bizfinance Forms 990 and 990-EZ Exempt organizations, other than private foundations, must file their annual information returns on Form 990 or 990-EZ, unless excepted from filing or allowed to submit Form 990-N, described earlier. Amended tax return more:label_amended_20tax_20return more:bizfinance Generally, political organizations with gross receipts of $25,000 ($100,000 for a qualified state or local political organization (QSLPO)) or more for the tax year are required to file Form 990 or 990-EZ unless specifically excepted from filing the annual return. Amended tax return more:label_amended_20tax_20return more:bizfinance The following political organizations are not required to file Form 990 or Form 990-EZ. Amended tax return more:label_amended_20tax_20return more:bizfinance A state or local committee of a political party. Amended tax return more:label_amended_20tax_20return more:bizfinance A political committee of a state or local candidate. Amended tax return more:label_amended_20tax_20return more:bizfinance A caucus or association of state or local officials. Amended tax return more:label_amended_20tax_20return more:bizfinance A political organization that is required to report as a political committee under the Federal Election Campaign Act. Amended tax return more:label_amended_20tax_20return more:bizfinance A 501(c) organization that has expenditures for influencing or attempting to influence the selection, nomination, election, or appointment of any individual for a federal, state, or local public office. Amended tax return more:label_amended_20tax_20return more:bizfinance Form 990-EZ. Amended tax return more:label_amended_20tax_20return more:bizfinance   This is a shortened version of Form 990. Amended tax return more:label_amended_20tax_20return more:bizfinance It is designed for use by small exempt organizations and nonexempt charitable trusts. Amended tax return more:label_amended_20tax_20return more:bizfinance   Beginning in tax year 2010, an organization can file either Form 990 or 990-EZ if it meets the following: Its gross receipts during the year are less than $200,000. Amended tax return more:label_amended_20tax_20return more:bizfinance Its total assets (line 25, column (B) of Form 990-EZ) at the end of the year are less than $500,000. Amended tax return more:label_amended_20tax_20return more:bizfinance If your organization does not meet either of these conditions, you cannot file Form 990-EZ. Amended tax return more:label_amended_20tax_20return more:bizfinance Instead you must file Form 990. Amended tax return more:label_amended_20tax_20return more:bizfinance Group return. Amended tax return more:label_amended_20tax_20return more:bizfinance   A group return on Form 990 may be filed by a central, parent, or like organization for two or more local organizations, none of which is a private foundation. Amended tax return more:label_amended_20tax_20return more:bizfinance This return is in addition to the central organization's separate annual return if it must file a return. Amended tax return more:label_amended_20tax_20return more:bizfinance It cannot be included in the group return. Amended tax return more:label_amended_20tax_20return more:bizfinance See the instructions for Form 990 for the conditions under which this procedure may be used. Amended tax return more:label_amended_20tax_20return more:bizfinance    In any year that an organization is properly included as a subordinate organization on a group return, it should not file its own Form 990. Amended tax return more:label_amended_20tax_20return more:bizfinance Schedule A (Form 990 or 990-EZ). Amended tax return more:label_amended_20tax_20return more:bizfinance   Organizations, other than private foundations, that are described in section 501(c)(3) and that are otherwise required to file Form 990 or 990-EZ must also complete Schedule A of that form. Amended tax return more:label_amended_20tax_20return more:bizfinance Schedule B (Form 990, Form 990-EZ, or 990-PF). Amended tax return more:label_amended_20tax_20return more:bizfinance   Organizations that file Form 990 or 990-EZ use this schedule to provide required information regarding their contributors. Amended tax return more:label_amended_20tax_20return more:bizfinance Schedule O (Form 990). Amended tax return more:label_amended_20tax_20return more:bizfinance   Organizations that file Form 990 must use this schedule to provide required additional information or if additional space is needed. Amended tax return more:label_amended_20tax_20return more:bizfinance   Other schedules may be required to be filed with Form 990 or 990-EZ. Amended tax return more:label_amended_20tax_20return more:bizfinance See the instructions for Form 990 or the instructions for Form 990-EZ for more information. Amended tax return more:label_amended_20tax_20return more:bizfinance Report significant new or changed program services and changes to organizational documents. Amended tax return more:label_amended_20tax_20return more:bizfinance    An organization should report new significant program services or significant changes in how it conducts program services, and significant changes to its organizational documents, on its Form 990 rather than in a letter to EO Determinations. Amended tax return more:label_amended_20tax_20return more:bizfinance EO Determinations no longer issues letters confirming the tax-exempt status of organizations that report new services or significant changes, or changes to organizational documents. Amended tax return more:label_amended_20tax_20return more:bizfinance See Miscellaneous Rules, Organization Changes and Exempt Status, later. Amended tax return more:label_amended_20tax_20return more:bizfinance Form 990-PF All private foundations exempt under section 501(c)(3) must file Form 990-PF. Amended tax return more:label_amended_20tax_20return more:bizfinance These organizations are discussed in chapter 3. Amended tax return more:label_amended_20tax_20return more:bizfinance Electronic Filing You may be required to file Form 990, Form 990-EZ, or Form 990-PF, and related forms, schedules, and attachments electronically. Amended tax return more:label_amended_20tax_20return more:bizfinance If an organization is required to file a return electronically but does not, the organization is considered to have not filed its return. Amended tax return more:label_amended_20tax_20return more:bizfinance See Regulations section 301. Amended tax return more:label_amended_20tax_20return more:bizfinance 6033-4 for more information. Amended tax return more:label_amended_20tax_20return more:bizfinance The IRS may waive the requirement to file electronically in cases of undue hardship. Amended tax return more:label_amended_20tax_20return more:bizfinance For information on filing a waiver, see Notice 2010-13, 2010-4 I. Amended tax return more:label_amended_20tax_20return more:bizfinance R. Amended tax return more:label_amended_20tax_20return more:bizfinance B. Amended tax return more:label_amended_20tax_20return more:bizfinance 327, available at www. Amended tax return more:label_amended_20tax_20return more:bizfinance irs. Amended tax return more:label_amended_20tax_20return more:bizfinance gov/ir/2010-04_IRSB/ar14. Amended tax return more:label_amended_20tax_20return more:bizfinance html. Amended tax return more:label_amended_20tax_20return more:bizfinance Form 990. Amended tax return more:label_amended_20tax_20return more:bizfinance   An organization is required to file Form 990 electronically if it files at least 250 returns during the calendar year and has total assets of $10 million or more at the end of the tax year. Amended tax return more:label_amended_20tax_20return more:bizfinance Form 990-PF. Amended tax return more:label_amended_20tax_20return more:bizfinance   An organization is required to file Form 990-PF electronically if it files at least 250 returns during the calendar year. Amended tax return more:label_amended_20tax_20return more:bizfinance Due Date Forms 990, 990-EZ, or 990-PF must be filed by the 15th day of the fifth month after the end of your organization's accounting period. Amended tax return more:label_amended_20tax_20return more:bizfinance Thus, for a calendar year taxpayer, Forms 990, 990-EZ, or 990-PF is due May 15 of the following year. Amended tax return more:label_amended_20tax_20return more:bizfinance Extension of time to file. Amended tax return more:label_amended_20tax_20return more:bizfinance   Use Form 8868 to request an automatic 3-month extension of time to file Forms 990, 990-EZ, or 990-PF and also to apply for an additional (not automatic) 3-month extension if needed. Amended tax return more:label_amended_20tax_20return more:bizfinance   Do not apply for both the automatic 3-month extension and the additional 3-month extension at the same time. Amended tax return more:label_amended_20tax_20return more:bizfinance For more information, see Form 8868 and its instructions. Amended tax return more:label_amended_20tax_20return more:bizfinance   When filing Form 8868 for an automatic 3-month extension, neither a signature, nor an explanation is required. Amended tax return more:label_amended_20tax_20return more:bizfinance However, when filing Form 8868 for an additional 3-month extension, both a signature and an explanation are required. Amended tax return more:label_amended_20tax_20return more:bizfinance Application for exemption pending. Amended tax return more:label_amended_20tax_20return more:bizfinance   An organization that claims to be exempt under section 501(a) but has not established its exempt status by the due date for filing an information return must complete and file Form 990, 990-EZ, 990–N or 990-PF (if it considers itself a private foundation), unless the organization is exempt from Form 990-series filing requirements. Amended tax return more:label_amended_20tax_20return more:bizfinance If the organization's application is pending with the IRS, it must so indicate on Forms 990, 990-EZ, or 990-PF (whichever applies) by checking the application pending block at the top of page 1 of the return. Amended tax return more:label_amended_20tax_20return more:bizfinance For more information on the filing requirements, see the Instructions for Forms 990, 990-EZ, and 990-PF. Amended tax return more:label_amended_20tax_20return more:bizfinance State reporting requirements. Amended tax return more:label_amended_20tax_20return more:bizfinance   Copies of Forms 990, 990-EZ, or 990-PF may be used to satisfy state reporting requirements. Amended tax return more:label_amended_20tax_20return more:bizfinance See the instructions for those forms. Amended tax return more:label_amended_20tax_20return more:bizfinance Form 8870. Amended tax return more:label_amended_20tax_20return more:bizfinance   Organizations that filed a Form 990, 990-EZ, or 990-PF, and paid premiums or received transfers on certain life insurance, annuity, and endowment contracts (personal benefit contracts), must file Form 8870. Amended tax return more:label_amended_20tax_20return more:bizfinance For more information, see Form 8870 and the instructions for that form. Amended tax return more:label_amended_20tax_20return more:bizfinance Automatic Revocation If the organization fails to file a Form 990, 990-EZ, or 990-PF, or fails to submit a Form 990-N, as required, for 3 consecutive years, it will automatically lose its tax-exempt status by operation of law. Amended tax return more:label_amended_20tax_20return more:bizfinance The list of organizations whose tax-exempt status has been automatically revoked is available on IRS. Amended tax return more:label_amended_20tax_20return more:bizfinance gov. Amended tax return more:label_amended_20tax_20return more:bizfinance This list (Auto-Revocation List) may be viewed and searched on Exempt Organizations Select Check. Amended tax return more:label_amended_20tax_20return more:bizfinance The Auto-Revocation List includes each organization's name, Employer Identification Number (EIN) and last known address. Amended tax return more:label_amended_20tax_20return more:bizfinance It also includes the effective date of the automatic revocation and the date it was posted to the list. Amended tax return more:label_amended_20tax_20return more:bizfinance The IRS updates the list monthly to include additional organizations that lose their tax-exempt status. Amended tax return more:label_amended_20tax_20return more:bizfinance Tax Effect of Loss of Tax-Exempt Status If your organization’s tax-exempt status is automatically revoked, you may be required to file one of the following federal income tax returns and pay any applicable income taxes: Form 1120, U. Amended tax return more:label_amended_20tax_20return more:bizfinance S. Amended tax return more:label_amended_20tax_20return more:bizfinance Corporation Income Tax Return, due by the 15th day of the 3rd month after the end of your organization’s tax year, or Form 1041, U. Amended tax return more:label_amended_20tax_20return more:bizfinance S. Amended tax return more:label_amended_20tax_20return more:bizfinance Income Tax Return for Estates and Trusts, due by the 15th day of the 4th month after the end of your organization’s tax year. Amended tax return more:label_amended_20tax_20return more:bizfinance In addition, a section 501(c)(3) organization that loses its tax-exempt status cannot receive tax-deductible contributions and will not be identified in the IRS Business Master File extract as eligible to received tax-deductible contributions, or be included in Exempt Organizations Select Check (Pub 78 database). Amended tax return more:label_amended_20tax_20return more:bizfinance An organization whose exemption was automatically revoked must apply for tax exemption in order to regain its tax exemption (even if it was not originally required to apply). Amended tax return more:label_amended_20tax_20return more:bizfinance In some situations, an organization may be able to obtain exemption retroactive to its date of revocation. Amended tax return more:label_amended_20tax_20return more:bizfinance For more information about automatic revocation, go to IRS. Amended tax return more:label_amended_20tax_20return more:bizfinance gov and select Charities & Non-Profits and then select Revoked? Reinstated? Learn More. Amended tax return more:label_amended_20tax_20return more:bizfinance Penalties Penalties for failure to file. Amended tax return more:label_amended_20tax_20return more:bizfinance   Generally, an exempt organization that fails to file a required return must pay a penalty of $20 a day for each day the failure continues. Amended tax return more:label_amended_20tax_20return more:bizfinance The same penalty will apply if the organization does not give all the information required on the return or does not give the correct information. Amended tax return more:label_amended_20tax_20return more:bizfinance Maximum penalty. Amended tax return more:label_amended_20tax_20return more:bizfinance   The maximum penalty for any one return is the smaller of $10,000 or 5% of the organization's gross receipts for the year. Amended tax return more:label_amended_20tax_20return more:bizfinance Organization with gross receipts over $1 million. Amended tax return more:label_amended_20tax_20return more:bizfinance   For an organization that has gross receipts of over $1 million for the year, the penalty is $100 a day up to a maximum of $50,000. Amended tax return more:label_amended_20tax_20return more:bizfinance Managers. Amended tax return more:label_amended_20tax_20return more:bizfinance   If the organization is subject to this penalty, the IRS may specify a date by which the return or correct information must be supplied by the organization. Amended tax return more:label_amended_20tax_20return more:bizfinance Failure to comply with this demand will result in a penalty imposed upon the manager of the organization, or upon any other person responsible for filing a correct return. Amended tax return more:label_amended_20tax_20return more:bizfinance The penalty is $10 a day for each day that a return is not filed after the period given for filing. Amended tax return more:label_amended_20tax_20return more:bizfinance The maximum penalty imposed on all persons with respect to any one return is $5,000. Amended tax return more:label_amended_20tax_20return more:bizfinance Exception for reasonable cause. Amended tax return more:label_amended_20tax_20return more:bizfinance   No penalty will be imposed if reasonable cause for failure to file timely can be shown. Amended tax return more:label_amended_20tax_20return more:bizfinance Unrelated Business Income Tax Return Even though your organization is recognized as tax exempt, it still may be liable for tax on its unrelated business income. Amended tax return more:label_amended_20tax_20return more:bizfinance Unrelated business income is income from a trade or business, regularly carried on, that is not substantially related to the charitable, educational, or other purpose that is the basis for the organization's exemption. Amended tax return more:label_amended_20tax_20return more:bizfinance If your organization has $1,000 or more of unrelated business income, you must file Form 990-T in addition to your required annual information return. Amended tax return more:label_amended_20tax_20return more:bizfinance Estimated tax. Amended tax return more:label_amended_20tax_20return more:bizfinance   Quarterly estimated tax payments are due if your organization expects to owe $500 or more in tax including unrelated business income. Amended tax return more:label_amended_20tax_20return more:bizfinance Use Form 990-W to figure your organization's estimated tax payments. Amended tax return more:label_amended_20tax_20return more:bizfinance Travel tour programs. Amended tax return more:label_amended_20tax_20return more:bizfinance   Travel tour activities that are a trade or business are an unrelated trade or business if the activities are not substantially related to the purpose to which tax exemption was granted to the organization. Amended tax return more:label_amended_20tax_20return more:bizfinance   Whether travel tour activities conducted by an organization are substantially related to the organization's tax exempt purpose is determined by looking at all the relevant facts and circumstances, including, but not limited to, how a travel tour is developed, promoted, and operated. Amended tax return more:label_amended_20tax_20return more:bizfinance Example. Amended tax return more:label_amended_20tax_20return more:bizfinance ABC, a university alumni association, is tax exempt as an educational organization under section 501(c)(3). Amended tax return more:label_amended_20tax_20return more:bizfinance As part of its activities, ABC operates a travel tour program. Amended tax return more:label_amended_20tax_20return more:bizfinance The program is open to all current members of ABC and their guests. Amended tax return more:label_amended_20tax_20return more:bizfinance ABC works with travel agents to schedule approximately ten tours annually to various destinations around the world. Amended tax return more:label_amended_20tax_20return more:bizfinance Members of ABC pay $1,000 to XYZ Travel Agency to participate in a tour. Amended tax return more:label_amended_20tax_20return more:bizfinance XYZ pays ABC a per person fee for each participant. Amended tax return more:label_amended_20tax_20return more:bizfinance Although the literature advertising the tours encourages ABC members to continue their lifelong learning by joining the tours, and a faculty member of ABC's related university frequently joins the tour as a guest of the alumni association, none of the tours include any scheduled instruction or curriculum related to the destinations being visited. Amended tax return more:label_amended_20tax_20return more:bizfinance The travel tours made available to ABC's members do not contribute importantly to the accomplishment of ABC's educational purpose. Amended tax return more:label_amended_20tax_20return more:bizfinance Rather, ABC's program is designed to generate revenues for ABC by regularly offering its members travel services. Amended tax return more:label_amended_20tax_20return more:bizfinance Therefore, ABC's tour program is an unrelated trade or business. Amended tax return more:label_amended_20tax_20return more:bizfinance For additional information on unrelated business income, see Publication 598 and the Instructions for Form 990-T. Amended tax return more:label_amended_20tax_20return more:bizfinance Employment Tax Returns Every employer, including an organization exempt from federal income tax, who pays wages to employees is responsible for withholding, depositing, paying, and reporting federal income tax, social security and Medicare (FICA) taxes, and federal unemployment tax (FUTA), unless that employer is specifically excepted by law from those requirements, or if the taxes clearly do not apply. Amended tax return more:label_amended_20tax_20return more:bizfinance For more information, obtain a copy of Publication 15, which summarizes the responsibilities of an employer, Publication 15-A, Publication 15-B, and Form 941. Amended tax return more:label_amended_20tax_20return more:bizfinance Small Business Health Care Tax Credit. Amended tax return more:label_amended_20tax_20return more:bizfinance   If your small tax-exempt organization provides health care coverage for your workers you may qualify for the small business health care tax credit. Amended tax return more:label_amended_20tax_20return more:bizfinance Go to IRS. Amended tax return more:label_amended_20tax_20return more:bizfinance gov and select Affordable Care Act Tax Provisions for more details. Amended tax return more:label_amended_20tax_20return more:bizfinance See Small Business Health Care Tax Credit at www. Amended tax return more:label_amended_20tax_20return more:bizfinance irs. Amended tax return more:label_amended_20tax_20return more:bizfinance gov/newsroom/article/0,,id=223666,00. Amended tax return more:label_amended_20tax_20return more:bizfinance html. Amended tax return more:label_amended_20tax_20return more:bizfinance Expanded Work Opportunity Tax Credit Available for Hiring Qualified Veterans. Amended tax return more:label_amended_20tax_20return more:bizfinance   The VOW to Hire Heroes Act of 2011 made changes to the Work Opportunity Tax Credit (WOTC). Amended tax return more:label_amended_20tax_20return more:bizfinance The Act added two new categories to the existing qualified veteran targeted group and made the WOTC available to certain tax-exempt employers as a credit against the employer's share of social security tax. Amended tax return more:label_amended_20tax_20return more:bizfinance The Act allows employers to claim the WOTC for veterans certified as qualified veterans and who begin work before January 1, 2013. Amended tax return more:label_amended_20tax_20return more:bizfinance This tax credit was extended through December 31, 2013, under the American Taxpayer Relief Act, passed on January 1, 2013. Amended tax return more:label_amended_20tax_20return more:bizfinance   The credit can be as high as $6,240 for qualified tax-exempt organizations. Amended tax return more:label_amended_20tax_20return more:bizfinance The amount of the credit depends on a number of factors, including the length of the veteran’s unemployment before hire, the number of hours the veteran works, and the veteran’s first-year wages. Amended tax return more:label_amended_20tax_20return more:bizfinance The amount of the credit for qualified tax-exempt organizations may not exceed the organization's employer social security tax for the period for which the credit is claimed. Amended tax return more:label_amended_20tax_20return more:bizfinance   All employers must obtain certification that an individual is a member of the targeted group, before the employer may claim the credit. Amended tax return more:label_amended_20tax_20return more:bizfinance The process for certifying veterans for this credit is the same for all employers. Amended tax return more:label_amended_20tax_20return more:bizfinance For more information, see Form 8850, Pre-Screening Notice and Certification Request for the Work Opportunity Credit and the instructions to Form 8850. Amended tax return more:label_amended_20tax_20return more:bizfinance Notice 2012-13, 2012-9 I. Amended tax return more:label_amended_20tax_20return more:bizfinance R. Amended tax return more:label_amended_20tax_20return more:bizfinance B. Amended tax return more:label_amended_20tax_20return more:bizfinance 421, also provides additional guidance on submission Form 8850. Amended tax return more:label_amended_20tax_20return more:bizfinance   Organizations described in section 501(c) and exempt from taxation under section 501(a) may claim the credit for qualified veterans who begin work on or after Nov. Amended tax return more:label_amended_20tax_20return more:bizfinance 22, 2011, and before January 1, 2013. Amended tax return more:label_amended_20tax_20return more:bizfinance After the required certification is secured, tax-exempt employers claim the credit against the employer social security tax by separately filing Form 5884-C, Work Opportunity Credit for Qualified Tax-Exempt Organizations Hiring Qualified Veterans, Form 5884-C. Amended tax return more:label_amended_20tax_20return more:bizfinance File Form 5884-C after filing the related employment tax return for the employment tax period for which the credit is claimed. Amended tax return more:label_amended_20tax_20return more:bizfinance It is recommended that qualified tax-exempt employers do not reduce their required deposits in anticipation of any credit as the forms are processed separately. Amended tax return more:label_amended_20tax_20return more:bizfinance In addition to Form 5884-C and its instructions, tax-exempt employers should see Notice 2012-13 and the Frequently Asked Questions & Answers for more details for claiming the credit. Amended tax return more:label_amended_20tax_20return more:bizfinance Trust fund recovery penalty. Amended tax return more:label_amended_20tax_20return more:bizfinance   If any person required to collect, truthfully account for, and pay over any of these taxes willfully fails to satisfy any of these requirements or willfully tries in any way to evade or defeat any of them, that person will be subject to a penalty. Amended tax return more:label_amended_20tax_20return more:bizfinance The penalty is equal to the tax evaded, not collected, or not accounted for and paid over. Amended tax return more:label_amended_20tax_20return more:bizfinance The term person includes: An officer or employee of a corporation, or A member or employee of a partnership. Amended tax return more:label_amended_20tax_20return more:bizfinance Exception. Amended tax return more:label_amended_20tax_20return more:bizfinance   The penalty is not imposed on any unpaid volunteer director or member of a board of trustees of an exempt organization if the unpaid volunteer serves solely in an honorary capacity, does not participate in the day-to-day or financial operations of the organization, and does not have actual knowledge of the failure on which the penalty is imposed. Amended tax return more:label_amended_20tax_20return more:bizfinance   This exception does not apply if it results in no one being liable for the penalty. Amended tax return more:label_amended_20tax_20return more:bizfinance FICA and FUTA tax exceptions. Amended tax return more:label_amended_20tax_20return more:bizfinance   Payments for services performed by a minister of a church in the exercise of the ministry, or a member of a religious order performing duties required by the order, are generally not subject to FICA or FUTA taxes. Amended tax return more:label_amended_20tax_20return more:bizfinance FUTA tax exception. Amended tax return more:label_amended_20tax_20return more:bizfinance   Payments for services performed by an employee of a religious, charitable, educational, or other organization described in section 501(c)(3) that are generally subject to FICA taxes if the payments are $100 or more for the year, are not subject to FUTA taxes. Amended tax return more:label_amended_20tax_20return more:bizfinance FICA tax exemption election. Amended tax return more:label_amended_20tax_20return more:bizfinance   Churches and qualified church-controlled organizations can elect exemption from employer FICA taxes by filing Form 8274. Amended tax return more:label_amended_20tax_20return more:bizfinance   To elect the exemption, Form 8274 must be filed before the first date on which a quarterly employment tax return would otherwise be due from the electing organization. Amended tax return more:label_amended_20tax_20return more:bizfinance The organization can make the election only if it is opposed for religious reasons to the payment of FICA taxes. Amended tax return more:label_amended_20tax_20return more:bizfinance   The election applies to payments for services of current and future employees other than services performed in an unrelated trade or business. Amended tax return more:label_amended_20tax_20return more:bizfinance Revoking the election. Amended tax return more:label_amended_20tax_20return more:bizfinance   The election can be revoked by the IRS if the organization fails to file Form W-2, Wage and Tax Statement, for 2 years and fails to furnish certain information upon request by the IRS. Amended tax return more:label_amended_20tax_20return more:bizfinance Such revocation will apply retroactively to the beginning of the 2-year period. Amended tax return more:label_amended_20tax_20return more:bizfinance Definitions. Amended tax return more:label_amended_20tax_20return more:bizfinance   For purposes of this election, the term church means a church, a convention or association of churches, or an elementary or secondary school that is controlled, operated, or principally supported by a church or by a convention or association of churches. Amended tax return more:label_amended_20tax_20return more:bizfinance   The term qualified church-controlled organization means any church-controlled section 501(c)(3) tax-exempt organization, other than an organization that both: Offers goods, services, or facilities for sale, other than on an incidental basis, to the general public at other than a nominal charge that is substantially less than the cost of providing such goods, services, or facilities, and Normally receives more than 25% of its support from the sum of governmental sources and receipts from admissions, sales of merchandise, performance of services, or furnishing of facilities, in activities that are not unrelated trades or businesses. Amended tax return more:label_amended_20tax_20return more:bizfinance Effect on employees. Amended tax return more:label_amended_20tax_20return more:bizfinance   If a church or qualified church-controlled organization has made an election, payment for services performed for that church or organization, other than in an unrelated trade or business, will not be subject to FICA taxes. Amended tax return more:label_amended_20tax_20return more:bizfinance However, the employee, unless otherwise exempt, will be subject to self-employment tax on the income. Amended tax return more:label_amended_20tax_20return more:bizfinance The tax applies to income of $108. Amended tax return more:label_amended_20tax_20return more:bizfinance 28 or more for the tax year from that church or organization, and no deductions for trade or business expenses are allowed against this self-employment income. Amended tax return more:label_amended_20tax_20return more:bizfinance   Schedule SE (Form 1040), Self-Employment Tax, should be attached to the employee's income tax return. Amended tax return more:label_amended_20tax_20return more:bizfinance Political Organization Income Tax Return Generally, a political organization is treated as an organization exempt from tax. Amended tax return more:label_amended_20tax_20return more:bizfinance Certain political organizations, however, must file an annual income tax return, Form 1120-POL, U. Amended tax return more:label_amended_20tax_20return more:bizfinance S. Amended tax return more:label_amended_20tax_20return more:bizfinance Income Tax Return for Certain Political Organizations, for any year they have political organization taxable income in excess of the $100 specific deduction allowed under section 527. Amended tax return more:label_amended_20tax_20return more:bizfinance A political organization that has $25,000 ($100,000 for a qualified state or local political organization) or more in gross receipts for the tax year must file Form 990 or Form 990-EZ (and Schedule B of the form), unless excepted. Amended tax return more:label_amended_20tax_20return more:bizfinance See Forms 990 and 990-EZ , earlier. Amended tax return more:label_amended_20tax_20return more:bizfinance Political organization. Amended tax return more:label_amended_20tax_20return more:bizfinance   A political organization is a party, committee, association, fund, or other organization (whether or not incorporated) organized and operated primarily for the purpose of directly or indirectly accepting contributions or making expenditures, or both, for an exempt function. Amended tax return more:label_amended_20tax_20return more:bizfinance Exempt function. Amended tax return more:label_amended_20tax_20return more:bizfinance   An exempt function means influencing or attempting to influence the selection, nomination, election, or appointment of any individual to any federal, state, local public office or office in a political organization, or the election of the Presidential or Vice Presidential electors, whether or not such individual or electors are selected, nominated, elected, or appointed. Amended tax return more:label_amended_20tax_20return more:bizfinance It also includes certain office expenses of a holder of public office or an office in a political organization. Amended tax return more:label_amended_20tax_20return more:bizfinance Certain political organizations are required to notify the IRS that they are section 527 organizations. Amended tax return more:label_amended_20tax_20return more:bizfinance These organizations must use Form 8871. Amended tax return more:label_amended_20tax_20return more:bizfinance Some of these section 527 organizations must use Form 8872 to file periodic reports with the IRS disclosing their contributions and expenditures. Amended tax return more:label_amended_20tax_20return more:bizfinance For a discussion on these forms, see Reporting Requirements for a Political Organization, later. Amended tax return more:label_amended_20tax_20return more:bizfinance Political organization taxable income. Amended tax return more:label_amended_20tax_20return more:bizfinance   Political organization taxable income is the excess of: Gross income for the tax year (excluding exempt function income) minus Deductions directly connected with the earning of gross income. Amended tax return more:label_amended_20tax_20return more:bizfinance To figure taxable income, allow for a $100 specific deduction, but do not allow for the net operating loss deduction, the dividends-received deduction, and other special deductions for corporations. Amended tax return more:label_amended_20tax_20return more:bizfinance Exempt organization not a political organization. Amended tax return more:label_amended_20tax_20return more:bizfinance   An organization exempt under section 501(c) that spends any amount for an exempt function must file Form 1120-POL for any year which it has political taxable income. Amended tax return more:label_amended_20tax_20return more:bizfinance These organizations must include in gross income the lesser of: The total amount of its exempt function expenditures, or The organization's net investment income. Amended tax return more:label_amended_20tax_20return more:bizfinance Separate fund. Amended tax return more:label_amended_20tax_20return more:bizfinance   A section 501(c) organization can set up a separate segregated fund that will be treated as an independent political organization. Amended tax return more:label_amended_20tax_20return more:bizfinance The earnings and expenditures made by the separate fund will not be attributed to the section 501(c) organization. Amended tax return more:label_amended_20tax_20return more:bizfinance Section 501(c)(3) organizations are precluded from, and may suffer loss of exemption for, engaging in any political campaign on behalf of, or in opposition to, any candidate for public office. Amended tax return more:label_amended_20tax_20return more:bizfinance Due date. Amended tax return more:label_amended_20tax_20return more:bizfinance   Form 1120-POL is due by the 15th day of the 3rd month after the end of the tax year. Amended tax return more:label_amended_20tax_20return more:bizfinance Thus, for a calendar year taxpayer, Form 1120-POL is due on March 15 of the following year. Amended tax return more:label_amended_20tax_20return more:bizfinance If any due date falls on a Saturday, Sunday, or legal holiday, the organization can file the return on the next business day. Amended tax return more:label_amended_20tax_20return more:bizfinance    Form 1120-POL is not required of an exempt organization that makes expenditures for political purposes if its gross income does not exceed its directly connected deductions by more than $100 for the tax year. Amended tax return more:label_amended_20tax_20return more:bizfinance Extension of time to file. Amended tax return more:label_amended_20tax_20return more:bizfinance    Use Form 7004 to request an automatic 6-month extension of time to file Form 1120-POL. Amended tax return more:label_amended_20tax_20return more:bizfinance The extension will be granted if you complete Form 7004 properly, make a proper estimate of the tax (if applicable), file Form 1120-POL by the due date, and pay any tax due. Amended tax return more:label_amended_20tax_20return more:bizfinance Failure to file. Amended tax return more:label_amended_20tax_20return more:bizfinance   A political organization that fails to file Form 1120-POL is subject to a penalty equal to 5% of the tax due for each month (or partial month) the return is late up to a maximum of 25% of the tax due, unless the organization shows the failure was due to reasonable cause. Amended tax return more:label_amended_20tax_20return more:bizfinance For more information about filing Form 1120-POL, refer to the instructions accompanying the form. Amended tax return more:label_amended_20tax_20return more:bizfinance Failure to pay on time. Amended tax return more:label_amended_20tax_20return more:bizfinance   An organization that does not pay the tax when due generally may have to pay a penalty of 1/2 of 1% of the unpaid tax for each month or part of a month the tax is not paid, up to a maximum of 25% of the unpaid tax. Amended tax return more:label_amended_20tax_20return more:bizfinance The penalty will not be imposed if the organization can show that the failure to pay on time was due to reasonable cause. Amended tax return more:label_amended_20tax_20return more:bizfinance Reporting Requirements for a Political Organization Certain political organizations are required to notify the IRS that the organization is to be treated as a section 527 political organization. Amended tax return more:label_amended_20tax_20return more:bizfinance The organization is also required to periodically report certain contributions received and expenditures made by the organization. Amended tax return more:label_amended_20tax_20return more:bizfinance To notify the IRS of section 527 treatment, an organization must file Form 8871. Amended tax return more:label_amended_20tax_20return more:bizfinance To report contributions and expenditures, certain tax-exempt political organizations must file Form 8872. Amended tax return more:label_amended_20tax_20return more:bizfinance Form 8871 A political organization must electronically file Form 8871 to notify the IRS that it is to be treated as a section 527 organization. Amended tax return more:label_amended_20tax_20return more:bizfinance However, an organization is not required to file Form 8871 if: It reasonably expects its annual gross receipts to always be less than $25,000. Amended tax return more:label_amended_20tax_20return more:bizfinance It is a political committee required to report under the Federal Election Campaign Act of 1971 (FECA) (2 U. Amended tax return more:label_amended_20tax_20return more:bizfinance S. Amended tax return more:label_amended_20tax_20return more:bizfinance C. Amended tax return more:label_amended_20tax_20return more:bizfinance 431(4)). Amended tax return more:label_amended_20tax_20return more:bizfinance It is a state or local candidate committee. Amended tax return more:label_amended_20tax_20return more:bizfinance It is a state or local committee of a political party. Amended tax return more:label_amended_20tax_20return more:bizfinance It is a section 501(c) organization that has made an “exempt function expenditure. Amended tax return more:label_amended_20tax_20return more:bizfinance ” All other political organizations are required to file Form 8871. Amended tax return more:label_amended_20tax_20return more:bizfinance An organization must provide on Form 8871: Its name and address (including any business address, if different) and its electronic mailing address; Its purpose; The names and addresses of its officers, highly compensated employees, contact person, custodian of records, and members of its board of directors; The name and address of, and relationship to, any related entities (within the meaning of section 168(h)(4)); and Whether it intends to claim an exemption from filing Form 8872, Form 990, or Form 990-EZ. Amended tax return more:label_amended_20tax_20return more:bizfinance Employer identification number. Amended tax return more:label_amended_20tax_20return more:bizfinance   If your organization needs an EIN, you can apply for one: Online—Click on the Employer ID Numbers (EINs) link at www. Amended tax return more:label_amended_20tax_20return more:bizfinance IRS. Amended tax return more:label_amended_20tax_20return more:bizfinance gov/businesses/small. Amended tax return more:label_amended_20tax_20return more:bizfinance By telephone at 1-800-829-4933 from 7:00 a. Amended tax return more:label_amended_20tax_20return more:bizfinance m. Amended tax return more:label_amended_20tax_20return more:bizfinance to 10:00 p. Amended tax return more:label_amended_20tax_20return more:bizfinance m. Amended tax return more:label_amended_20tax_20return more:bizfinance in the organization's local time zone. Amended tax return more:label_amended_20tax_20return more:bizfinance By mailing or faxing Form SS-4. Amended tax return more:label_amended_20tax_20return more:bizfinance   If you previously applied for an EIN and have not yet received it, or you are unsure whether you have an EIN, please call our toll-free customer account services number, 1-877-829-5500, for assistance. Amended tax return more:label_amended_20tax_20return more:bizfinance Due dates. Amended tax return more:label_amended_20tax_20return more:bizfinance   The initial Form 8871 must be filed within 24 hours of the date on which the organization was established. Amended tax return more:label_amended_20tax_20return more:bizfinance If there is a material change, an amended Form 8871 must be filed within 30 days of the material change. Amended tax return more:label_amended_20tax_20return more:bizfinance When the organization terminates its existence, it must file a final Form 8871 within 30 days of termination. Amended tax return more:label_amended_20tax_20return more:bizfinance   If the due date falls on a Saturday, Sunday, or legal holiday, the organization can file on the next business day. Amended tax return more:label_amended_20tax_20return more:bizfinance How to file. Amended tax return more:label_amended_20tax_20return more:bizfinance   An organization must file Form 8871 electronically via the IRS Internet website at www. Amended tax return more:label_amended_20tax_20return more:bizfinance IRS. Amended tax return more:label_amended_20tax_20return more:bizfinance gov/polorgs (Keyword: political orgs). Amended tax return more:label_amended_20tax_20return more:bizfinance Form 8453-X, Political Organization Declaration for Electronic Filing of Notice of Section 527 Status. Amended tax return more:label_amended_20tax_20return more:bizfinance   After electronically submitting Form 8871, the political organization must print, sign, and mail Form 8453-X to the IRS. Amended tax return more:label_amended_20tax_20return more:bizfinance Upon receipt of the Form 8453-X, the IRS will send the organization a username and password that must be used to file an amended or final Form 8871 or to electronically file Form 8872. Amended tax return more:label_amended_20tax_20return more:bizfinance Penalties Failure to file. Amended tax return more:label_amended_20tax_20return more:bizfinance   An organization that is required to file Form 8871, but fails to do so on a timely basis, will not be treated as a tax-exempt section 527 organization for any period before the date Form 8871 is filed. Amended tax return more:label_amended_20tax_20return more:bizfinance Also, the taxable income of the organization for that period will include its exempt function income (including contributions received, membership dues, and political fundraising receipts) minus any deductions directly connected with the production of that income. Amended tax return more:label_amended_20tax_20return more:bizfinance   Failure to file an amended Form 8871 will cause the organization not to be treated as a tax-exempt section 527 organization. Amended tax return more:label_amended_20tax_20return more:bizfinance If an organization is treated as not being a tax-exempt section 527 organization, the taxable income of the organization will be determined by considering any exempt function income and deductions during the period beginning on the date of the material change and ending on the date that the amended Form 8871 is filed. Amended tax return more:label_amended_20tax_20return more:bizfinance    The tax is computed by multiplying the organization's taxable income by the highest corporate tax rate. Amended tax return more:label_amended_20tax_20return more:bizfinance Fraudulent returns. Amended tax return more:label_amended_20tax_20return more:bizfinance   Any individual or corporation that willfully delivers or discloses to the IRS any list, return, account, statement or other document known to be fraudulent or false as to any material matter will be fined not more than $10,000 ($50,000 in the case of a corporation) or imprisoned for not more than 1 year or both. Amended tax return more:label_amended_20tax_20return more:bizfinance Waiver of penalties. Amended tax return more:label_amended_20tax_20return more:bizfinance   The IRS may waive any additional tax assessed on an organization for failure to file Form 8871 if the failure was due to reasonable cause and not willful neglect. Amended tax return more:label_amended_20tax_20return more:bizfinance Additional information. Amended tax return more:label_amended_20tax_20return more:bizfinance   For more information on Form 8871, see the form and its instructions. Amended tax return more:label_amended_20tax_20return more:bizfinance For a discussion on the public inspection requirements for the form, see Public Inspection of Exemption Applications, Annual Returns, and Political Organization Reporting Forms , later. Amended tax return more:label_amended_20tax_20return more:bizfinance Form 8872 Every tax-exempt section 527 political organization that accepts a contribution or makes an expenditure, for an exempt function during the calendar year, must file Form 8872 except: A political organization that is not required to file Form 8871 (discussed earlier). Amended tax return more:label_amended_20tax_20return more:bizfinance A political organization that is subject to tax on its income because it did not file or amend Form 8871. Amended tax return more:label_amended_20tax_20return more:bizfinance A qualified state or local political organization (QSLPO), discussed below. Amended tax return more:label_amended_20tax_20return more:bizfinance All other tax-exempt section 527 organizations that accept contributions or make expenditures for an exempt function are required to file Form 8872. Amended tax return more:label_amended_20tax_20return more:bizfinance Qualified state or local political organization. Amended tax return more:label_amended_20tax_20return more:bizfinance   A state or local political organization may be a QSLPO if: All of its political activities relate solely to state or local public office (or office in a state or local political organization). Amended tax return more:label_amended_20tax_20return more:bizfinance It is subject to a state law that requires it to report (and it does report) to a state agency information about contributions and expenditures that is similar to the information that the organization would otherwise be required to report to the IRS. Amended tax return more:label_amended_20tax_20return more:bizfinance The state agency and the organization make the reports publicly available. Amended tax return more:label_amended_20tax_20return more:bizfinance No federal candidate or office holder: Controls or materially participates in the direction of the organization, Solicits contributions for the organization, or Directs the disbursements of the organization. Amended tax return more:label_amended_20tax_20return more:bizfinance Information required on Form 8872. Amended tax return more:label_amended_20tax_20return more:bizfinance   If an organization pays an individual $500 or more for the calendar year, the organization is required to disclose the individual's name, address, occupation, employer, amount of the expense, the date the expense was paid, and the purpose of the expense on Form 8872. Amended tax return more:label_amended_20tax_20return more:bizfinance   If an organization receives contributions of $200 or more from one contributor for the calendar year, the organization must disclose the donor's name, address, occupation, employer, and the date the contributions were made. Amended tax return more:label_amended_20tax_20return more:bizfinance   For additional information that is required, see Form 8872. Amended tax return more:label_amended_20tax_20return more:bizfinance Due dates. Amended tax return more:label_amended_20tax_20return more:bizfinance   The due dates for filing Form 8872 vary depending on whether the form is due for a reporting period that occurs during a calendar year in which a regularly scheduled election is held, or any other calendar year (a nonelection year). Amended tax return more:label_amended_20tax_20return more:bizfinance   If the due date falls on a Saturday, Sunday, or legal holiday, the organization can file on the next business day. Amended tax return more:label_amended_20tax_20return more:bizfinance Election year filing. Amended tax return more:label_amended_20tax_20return more:bizfinance    In election years, Form 8872 must be filed on either a quarterly or a monthly basis. Amended tax return more:label_amended_20tax_20return more:bizfinance Both a pre-election report and a post-election report are also required to be filed in an election year. Amended tax return more:label_amended_20tax_20return more:bizfinance An election year is any year in which a regularly scheduled general election for federal office is held (an even-numbered year). Amended tax return more:label_amended_20tax_20return more:bizfinance Nonelection year filing. Amended tax return more:label_amended_20tax_20return more:bizfinance    In nonelection years, the form must be filed on a semiannual or monthly basis. Amended tax return more:label_amended_20tax_20return more:bizfinance A complete listing of these filing periods are in the Form 8872 Instructions. Amended tax return more:label_amended_20tax_20return more:bizfinance A nonelection year is any odd-numbered year. Amended tax return more:label_amended_20tax_20return more:bizfinance How to file. Amended tax return more:label_amended_20tax_20return more:bizfinance   Form 8872 can be filed either electronically or by mail. Amended tax return more:label_amended_20tax_20return more:bizfinance However, organizations that have, or expect to have, contributions or expenditures of $50,000 or more for the year must file electronically. Amended tax return more:label_amended_20tax_20return more:bizfinance    To file by mail, send Form 8872 to the:   Department of the Treasury Internal Revenue Service Center Ogden, UT 84201-0027 Electronic filing. Amended tax return more:label_amended_20tax_20return more:bizfinance   File electronically via the IRS internet website at www. Amended tax return more:label_amended_20tax_20return more:bizfinance IRS. Amended tax return more:label_amended_20tax_20return more:bizfinance gov/polorgs. Amended tax return more:label_amended_20tax_20return more:bizfinance You will need a user ID and password to electronically file Form 8872. Amended tax return more:label_amended_20tax_20return more:bizfinance Organizations that have completed the electronic filing of Form 8871 and submitted a completed and signed Form 8453-X will receive a username and password in the mail. Amended tax return more:label_amended_20tax_20return more:bizfinance   Organizations that have completed the electronic filing of Form 8871, but have not received their user ID and password can request one by writing to the following address: Internal Revenue Service Attn: Request for 8872 Password Mail Stop 6273 Ogden, UT 84201 Lost username and password. Amended tax return more:label_amended_20tax_20return more:bizfinance   If you have forgotten or misplaced the username and password issued to your organization after you filed your initial Form 8871, send a letter requesting a new username and password to the address under Electronic filing. Amended tax return more:label_amended_20tax_20return more:bizfinance You can also fax your request to (801) 620-3249. Amended tax return more:label_amended_20tax_20return more:bizfinance It may take 3-6 weeks for your new username and password to arrive, as they will be mailed to the organization. Amended tax return more:label_amended_20tax_20return more:bizfinance Penalty A penalty will be imposed if the organization is required to file Form 8872 and it: Fails to file the form by the due date, or Files the form but fails to report all of the information required or reports incorrect information. Amended tax return more:label_amended_20tax_20return more:bizfinance The penalty is 35% of the total amount of contributions and expenditures to which a failure relates. Amended tax return more:label_amended_20tax_20return more:bizfinance Fraudulent returns. Amended tax return more:label_amended_20tax_20return more:bizfinance   Any individual or corporation that willfully delivers or discloses any list, return, account, statement, or other document known to be fraudulent or false as to any material matter will be fined not more than $10,000 ($50,000 in the case of a corporation), or imprisoned for not more than 1 year, or both. Amended tax return more:label_amended_20tax_20return more:bizfinance Waiver of penalties. Amended tax return more:label_amended_20tax_20return more:bizfinance   The IRS may waive any additional tax assessed on an organization for failure to file Form 8872 if the failure was due to reasonable cause and not willful neglect. Amended tax return more:label_amended_20tax_20return more:bizfinance Donee Information Return Dispositions of donated property. Amended tax return more:label_amended_20tax_20return more:bizfinance   If an organization receives charitable deduction property and within three years sells, exchanges, or otherwise disposes of the property, the organization must file Form 8282, Donee Information Return. Amended tax return more:label_amended_20tax_20return more:bizfinance However, an organization is not required to file Form 8282 if: The property is valued at $500 or less, or The property is consumed or distributed for charitable purposes. Amended tax return more:label_amended_20tax_20return more:bizfinance   Form 8282 must be filed with the IRS within 125 days after the disposition. Amended tax return more:label_amended_20tax_20return more:bizfinance Additionally, a copy of Form 8282 must be given to the donor. Amended tax return more:label_amended_20tax_20return more:bizfinance If the organization fails to file the required information return, penalties may apply. Amended tax return more:label_amended_20tax_20return more:bizfinance Charitable deduction property. Amended tax return more:label_amended_20tax_20return more:bizfinance   This is any property (other than money or publicly traded securities) for which the donee organization signed an appraisal summary or Form 8283, Noncash Charitable Contributions. Amended tax return more:label_amended_20tax_20return more:bizfinance Publicly traded securities. Amended tax return more:label_amended_20tax_20return more:bizfinance   These are securities for which market quotations are readily available on an established securities market as of the date of the contribution. Amended tax return more:label_amended_20tax_20return more:bizfinance Appraisal summary. Amended tax return more:label_amended_20tax_20return more:bizfinance   If the value of the donated property exceeds $5,000, the donor must get a qualified appraisal for contributions of property, see the Exceptions. Amended tax return more:label_amended_20tax_20return more:bizfinance below. Amended tax return more:label_amended_20tax_20return more:bizfinance Exceptions. Amended tax return more:label_amended_20tax_20return more:bizfinance   A written appraisal is not needed if the property is: Nonpublicly traded stock of $10,000 or less, A vehicle (including a car, boat, or airplane), if your deduction for the vehicle is limited to the gross proceeds from its sale, Intellectual property, Certain securities considered to have market quotations readily available (see Regulations section 1. Amended tax return more:label_amended_20tax_20return more:bizfinance 170A-13(c)(7)(xi)(B)), Inventory and other property donated by a corporation that are qualified contributions for the care of the ill, the needy, or infants, within the meaning of section 170(e)(3)(A), or Any donation of stock in trade, inventory, or property held primarily for sale to customers in the ordinary course of your trade or business. Amended tax return more:label_amended_20tax_20return more:bizfinance   The donee organization is not a qualified appraiser for the purpose of valuing the donated property. Amended tax return more:label_amended_20tax_20return more:bizfinance For more information, get Publication 561, Determining the Value of Donated Property. Amended tax return more:label_amended_20tax_20return more:bizfinance Form 8283. Amended tax return more:label_amended_20tax_20return more:bizfinance   For noncash donations over $5,000, the donor must attach Form 8283 to the tax return to support the charitable deduction. Amended tax return more:label_amended_20tax_20return more:bizfinance The donee must sign Part IV of Section B, Form 8283 unless publicly traded securities are donated. Amended tax return more:label_amended_20tax_20return more:bizfinance The person who signs for the donee must be an official authorized to sign the donee's tax or information returns, or a person specifically authorized to sign by that official. Amended tax return more:label_amended_20tax_20return more:bizfinance The signature does not represent concurrence in the appraised value of the contributed property. Amended tax return more:label_amended_20tax_20return more:bizfinance A signed acknowledgment represents receipt of the property described on Form 8283 on the date specified on the form. Amended tax return more:label_amended_20tax_20return more:bizfinance The signature also indicates knowledge of the information reporting requirements on dispositions, as previously discussed. Amended tax return more:label_amended_20tax_20return more:bizfinance A copy of Form 8283 must be given to the donee. Amended tax return more:label_amended_20tax_20return more:bizfinance Information Provided to Donors In some situations, a donor must obtain certain information from a donee organization to obtain a deduction for a charitable contribution. Amended tax return more:label_amended_20tax_20return more:bizfinance In other situations, the donee organization is required to provide information to the donor. Amended tax return more:label_amended_20tax_20return more:bizfinance A charitable organization must give a donor a disclosure statement for a quid pro quo contribution over $75. Amended tax return more:label_amended_20tax_20return more:bizfinance (See Disclosure statement. Amended tax return more:label_amended_20tax_20return more:bizfinance later. Amended tax return more:label_amended_20tax_20return more:bizfinance ) This is a payment a donor makes to a charity partly as a contribution and partly for goods or services. Amended tax return more:label_amended_20tax_20return more:bizfinance See Quid pro quo contribution below for an example. Amended tax return more:label_amended_20tax_20return more:bizfinance Failure to make the required disclosure may result in a penalty to the organization. Amended tax return more:label_amended_20tax_20return more:bizfinance A donor cannot deduct a charitable contribution of $250 or more unless the donor has a written acknowledgment from the charitable organization. Amended tax return more:label_amended_20tax_20return more:bizfinance In certain circumstances, an organization may be able to meet both of these requirements with the same written document. Amended tax return more:label_amended_20tax_20return more:bizfinance Disclosure of Quid Pro Quo Contributions A charitable organization must provide a written disclosure statement to donors of a quid pro quo contribution over $75. Amended tax return more:label_amended_20tax_20return more:bizfinance Quid pro quo contribution. Amended tax return more:label_amended_20tax_20return more:bizfinance   A contribution made by a donor in exchange for goods or services is known as a quid pro quo contribution. Amended tax return more:label_amended_20tax_20return more:bizfinance Your charitable organization must provide the donor a written statement informing the donor of the fair market value of the items or services it provided in exchange for the contribution. Amended tax return more:label_amended_20tax_20return more:bizfinance Generally, a written statement is required for each payment, whenever the contribution portion is over $75. Amended tax return more:label_amended_20tax_20return more:bizfinance Example. Amended tax return more:label_amended_20tax_20return more:bizfinance If a donor gives your charity $100 and receives a concert ticket valued at $40, the donor has made a quid pro quo contribution. Amended tax return more:label_amended_20tax_20return more:bizfinance In this example, the charitable part of the payment is $60. Amended tax return more:label_amended_20tax_20return more:bizfinance Even though the deductible part of the payment is not more than $75, a written statement must be filed because the total payment is more than $75. Amended tax return more:label_amended_20tax_20return more:bizfinance If your organization fails to disclose quid pro quo contributions, the organization may be subject to a penalty. Amended tax return more:label_amended_20tax_20return more:bizfinance Disclosure statement. Amended tax return more:label_amended_20tax_20return more:bizfinance   The required written disclosure statement must: Inform the donor that the amount of the contribution that is deductible for federal income tax purposes is limited to the excess of any money (and the value of any property other than money) contributed by the donor over the fair market value of goods or services provided by the charity, and Provide the donor with a good faith estimate of the fair market value of the goods or services that the donor received. Amended tax return more:label_amended_20tax_20return more:bizfinance The charity must furnish the statement in connection with either the solicitation or the receipt of the quid pro quo contribution. Amended tax return more:label_amended_20tax_20return more:bizfinance If the disclosure statement is furnished in connection with a particular solicitation, it is not necessary for the organization to provide another statement when it actually receives the contribution. Amended tax return more:label_amended_20tax_20return more:bizfinance   No disclosure statement is required if any of the following are true. Amended tax return more:label_amended_20tax_20return more:bizfinance The goods or services given to a donor have insubstantial value as described in Revenue Procedure 90-12, 1990-1 C. Amended tax return more:label_amended_20tax_20return more:bizfinance B. Amended tax return more:label_amended_20tax_20return more:bizfinance 471, Revenue Procedure 90-12, and Revenue Procedure 92-49, 1992-1 C. Amended tax return more:label_amended_20tax_20return more:bizfinance B. Amended tax return more:label_amended_20tax_20return more:bizfinance 507 (as adjusted for inflation), Revenue Procedure 92-49. Amended tax return more:label_amended_20tax_20return more:bizfinance There is no donative element involved in a particular transaction with a charity (for example, there is generally no donative element involved in a visitor's purchase from a museum gift shop). Amended tax return more:label_amended_20tax_20return more:bizfinance There is only an intangible religious benefit provided to the donor. Amended tax return more:label_amended_20tax_20return more:bizfinance The intangible religious benefit must be provided to the donor by an organization organized exclusively for religious purposes, and must be of a type that generally is not sold in a commercial transaction outside the donative context. Amended tax return more:label_amended_20tax_20return more:bizfinance For example, a donor who, for a payment, is granted admission to a religious ceremony for which there is no admission charge is provided an intangible religious benefit. Amended tax return more:label_amended_20tax_20return more:bizfinance A donor is not provided intangible religious benefits for payments made for tuition for education leading to a recognized degree, travel services, or consumer goods. Amended tax return more:label_amended_20tax_20return more:bizfinance The donor makes a payment of $75 or less per year and receives only annual membership benefits that consist of: Any rights or privileges (other than the right to purchase tickets for college athletic events) that the taxpayer can exercise often during the membership period, such as free or discounted admissions or parking or preferred access to goods or services, or Admission to events that are open only to members and the cost per person of which is within the limits for low-cost articles described in Revenue Procedure 90-12 (as adjusted for inflation), Revenue Procedure 90-12. Amended tax return more:label_amended_20tax_20return more:bizfinance Good faith estimate of fair market value (FMV). Amended tax return more:label_amended_20tax_20return more:bizfinance   An organization can use any reasonable method to estimate the FMV of goods or services it provided to a donor, as long as it applies the method in good faith. Amended tax return more:label_amended_20tax_20return more:bizfinance   The organization can estimate the FMV of goods or services that generally are not commercially available by using the FMV of similar or comparable goods or services. Amended tax return more:label_amended_20tax_20return more:bizfinance Goods or services may be similar or comparable even if they do not have the unique qualities of the goods or services being valued. Amended tax return more:label_amended_20tax_20return more:bizfinance Example 1. Amended tax return more:label_amended_20tax_20return more:bizfinance A charity provides a 1-hour tennis lesson with a tennis professional for the first $500 payment it receives. Amended tax return more:label_amended_20tax_20return more:bizfinance The tennis professional provides 1-hour lessons on a commercial basis for $100. Amended tax return more:label_amended_20tax_20return more:bizfinance A good faith estimate of the lesson's FMV is $100. Amended tax return more:label_amended_20tax_20return more:bizfinance Example 2. Amended tax return more:label_amended_20tax_20return more:bizfinance For a payment of $50,000, a museum allows a donor to hold a private event in a room of the museum. Amended tax return more:label_amended_20tax_20return more:bizfinance A good faith estimate of the FMV of the right to hold the event in the museum can be made by using the cost of renting a hotel ballroom with a capacity, amenities, and atmosphere comparable to the museum room, even though the hotel ballroom lacks the unique art displayed in the museum room. Amended tax return more:label_amended_20tax_20return more:bizfinance If the hotel ballroom rents for $2,500, a good faith estimate of the FMV of the right to hold the event in the museum is $2,500. Amended tax return more:label_amended_20tax_20return more:bizfinance Example 3. Amended tax return more:label_amended_20tax_20return more:bizfinance For a payment of $1,000, a charity provides an evening tour of a museum conducted by a well-known artist. Amended tax return more:label_amended_20tax_20return more:bizfinance The artist does not provide tours on a commercial basis. Amended tax return more:label_amended_20tax_20return more:bizfinance Tours of the museum normally are free to the public. Amended tax return more:label_amended_20tax_20return more:bizfinance A good faith estimate of the FMV of the evening museum tour is $0 even though it is conducted by the artist. Amended tax return more:label_amended_20tax_20return more:bizfinance Penalty for failure to disclose. Amended tax return more:label_amended_20tax_20return more:bizfinance   A penalty is imposed on a charity that does not make the required disclosure of a quid pro quo contribution of more than $75. Amended tax return more:label_amended_20tax_20return more:bizfinance The penalty is $10 per contribution, not to exceed $5,000 per fundraising event or mailing. Amended tax return more:label_amended_20tax_20return more:bizfinance The charity can avoid the penalty if it can show that the failure was due to reasonable cause. Amended tax return more:label_amended_20tax_20return more:bizfinance Acknowledgment of Charitable Contributions of $250 or More A donor can deduct a charitable contribution of $250 or more only if the donor has a written acknowledgment from the charitable organization. Amended tax return more:label_amended_20tax_20return more:bizfinance The donor must get the acknowledgment by the earlier of: The date the donor files the original return for the year the contribution is made, or The due date, including extensions, for filing the return. Amended tax return more:label_amended_20tax_20return more:bizfinance The donor is responsible for requesting and obtaining the written acknowledgment from the donee. Amended tax return more:label_amended_20tax_20return more:bizfinance A charitable organization that receives a payment made as a contribution is treated as the donee organization for this purpose even if the organization (according to the donor's instructions or otherwise) distributes the amount received to one or more charities. Amended tax return more:label_amended_20tax_20return more:bizfinance Quid pro quo contribution. Amended tax return more:label_amended_20tax_20return more:bizfinance   If the donee provides goods or services to the donor in exchange for the contribution (a quid pro quo contribution), the acknowledgment must include a good faith estimate of the value of the goods or services. Amended tax return more:label_amended_20tax_20return more:bizfinance See Disclosure of Quid Pro Quo Contributions earlier. Amended tax return more:label_amended_20tax_20return more:bizfinance Form of acknowledgment. Amended tax return more:label_amended_20tax_20return more:bizfinance   Although there is no prescribed format for the written acknowledgment, it must provide enough information to substantiate the amount of the contribution. Amended tax return more:label_amended_20tax_20return more:bizfinance For more information, see IRS Publication 1771, Charitable Contributions – Substantiation and Disclosure Requirements. Amended tax return more:label_amended_20tax_20return more:bizfinance Cash contributions. Amended tax return more:label_amended_20tax_20return more:bizfinance   To deduct a contribution of cash, a check, or other monetary gift (regardless of the amount), a donor must maintain a bank record or a written communication from the donee organization showing the donee's name, date, and amount of the contribution. Amended tax return more:label_amended_20tax_20return more:bizfinance In the case of a lump-sum contribution (rather than a contribution by payroll deduction) made through the Combined Federal Campaign or a similar program such as a United Way Campaign, the written communication must include the name of the donee organization that is the ultimate recipient of the charitable contribution. Amended tax return more:label_amended_20tax_20return more:bizfinance Contributions by payroll deduction. Amended tax return more:label_amended_20tax_20return more:bizfinance   An organization may substantiate an employee's contribution by deduction from its payroll by: A pay stub, Form W-2, or other document showing a contribution to a donee organization, together with A pledge card or other document from the donee organization that shows its name. Amended tax return more:label_amended_20tax_20return more:bizfinance   For contributions of $250 or more, the document must state that the donee organization provides no goods or services for any payroll contributions. Amended tax return more:label_amended_20tax_20return more:bizfinance The amount withheld from each payment of wages to a taxpayer is treated as a separate contribution. Amended tax return more:label_amended_20tax_20return more:bizfinance Acknowledgment of Vehicle Contribution If an exempt organization receives a contribution of a qualified vehicle with a claimed value of more than $500, the donee organization is required to provide a contemporaneous written acknowledgment to the donor. Amended tax return more:label_amended_20tax_20return more:bizfinance The donee organization can use a completed Form 1098-C, Contributions of Motor Vehicles, Boats, and Airplanes, for the contemporaneous written acknowledgment. Amended tax return more:label_amended_20tax_20return more:bizfinance See section 3. Amended tax return more:label_amended_20tax_20return more:bizfinance 03 of Notice 2005-44 for guidance on the information that must be included in a contemporaneous written acknowledgment and the deadline for furnishing the acknowledgment to the donor. Amended tax return more:label_amended_20tax_20return more:bizfinance Any donee organization that provides a contemporaneous written acknowledgment to a donor is required to report to the IRS the information contained in the acknowledgment. Amended tax return more:label_amended_20tax_20return more:bizfinance The report is due by February 28 (March 31 if filing electronically) of the year following the year in which the donee organization provides the acknowledgment to the donor. Amended tax return more:label_amended_20tax_20return more:bizfinance The organization must file the report on Copy A of Form 1098-C. Amended tax return more:label_amended_20tax_20return more:bizfinance An organization that files Form 1098-C on paper should send it with Form 1096, Annual Summary and Transmittal of U. Amended tax return more:label_amended_20tax_20return more:bizfinance S. Amended tax return more:label_amended_20tax_20return more:bizfinance Information Returns. Amended tax return more:label_amended_20tax_20return more:bizfinance See the Instructions for Form 1096 for the correct filing location. Amended tax return more:label_amended_20tax_20return more:bizfinance An organization that is required to file 250 or more Forms 1098-C during the calendar year must file the forms electronically or magnetically. Amended tax return more:label_amended_20tax_20return more:bizfinance Specifications for filing Form 1098-C electronically or magnetically can be found in Publication 1220, Specifications for Filing Forms 1097, 1098, 1099, 3921, 3922, 5498, 8935, and W-2G Electronically at www. Amended tax return more:label_amended_20tax_20return more:bizfinance IRS. Amended tax return more:label_amended_20tax_20return more:bizfinance gov/pub/irs-pdf/p1220. Amended tax return more:label_amended_20tax_20return more:bizfinance pdf. Amended tax return more:label_amended_20tax_20return more:bizfinance Acknowledgment For a contribution of a qualified vehicle with a claimed value of $500 or less, do not file Form 1098-C. Amended tax return more:label_amended_20tax_20return more:bizfinance However, you can use it as the contemporaneous written acknowledgment under section 170(f)(8) by providing the donor with Copy C only. Amended tax return more:label_amended_20tax_20return more:bizfinance See the Instructions for Form 1098-C. Amended tax return more:label_amended_20tax_20return more:bizfinance Generally, the organization should complete Form 1098-C as the written acknowledgment to the donor and the IRS. Amended tax return more:label_amended_20tax_20return more:bizfinance The contents of the acknowledgment depend upon whether the organization: Sells a qualified vehicle without any significant intervening use or material improvement, Intends to make a significant intervening use of or material improvement to a qualified vehicle prior to sale, or Sells a qualified vehicle to a needy individual at a price significantly below fair market value, or a gratuitous transfer to a needy individual in direct furtherance of a charitable purpose of the organization of relieving the poor and distressed or the underprivileged who are in need of a means of transportation. Amended tax return more:label_amended_20tax_20return more:bizfinance For more information on the acknowledgment, see Notice 2005-44, 2005-25 I. Amended tax return more:label_amended_20tax_20return more:bizfinance R. Amended tax return more:label_amended_20tax_20return more:bizfinance B. Amended tax return more:label_amended_20tax_20return more:bizfinance 1287, at www. Amended tax return more:label_amended_20tax_20return more:bizfinance irs. Amended tax return more:label_amended_20tax_20return more:bizfinance gov/irb/2005-25_IRB/2005-25_IRB/ar09. Amended tax return more:label_amended_20tax_20return more:bizfinance html. Amended tax return more:label_amended_20tax_20return more:bizfinance Material improvements or significant intervening use. Amended tax return more:label_amended_20tax_20return more:bizfinance   To constitute significant intervening use, the organization must actually use the vehicle to substantially further the organization's regularly conducted activities, and the use must be significant, not incidental. Amended tax return more:label_amended_20tax_20return more:bizfinance Factors in determining whether a use is a significant intervening use depend on the nature, extent, frequency, and duration. Amended tax return more:label_amended_20tax_20return more:bizfinance For this purpose, use includes providing transportation on a regular basis for a significant period of time or significant use directly related to training in vehicle repair. Amended tax return more:label_amended_20tax_20return more:bizfinance Use does not include the use of a vehicle to provide training in business skills, such as marketing or sales. Amended tax return more:label_amended_20tax_20return more:bizfinance Examples of significant use include: Driving a vehicle every day for 1 year to deliver meals to needy individuals, if delivering meals is an activity regularly conducted by the organization. Amended tax return more:label_amended_20tax_20return more:bizfinance Driving a vehicle for 10,000 miles over a 1-year period to deliver meals to needy individuals, if delivering meals is an activity regularly conducted by the organization. Amended tax return more:label_amended_20tax_20return more:bizfinance   Material improvements include major repairs and additions that improve the condition of the vehicle in a manner that significantly increases the value. Amended tax return more:label_amended_20tax_20return more:bizfinance To be a material improvement, the improvement cannot be funded by an additional payment to the organization from the donor of the vehicle. Amended tax return more:label_amended_20tax_20return more:bizfinance Material improvements do not include cleaning, minor repairs, routine maintenance, painting, removal of dents or scratches, cleaning or repair of upholstery, and installation of theft deterrent devices. Amended tax return more:label_amended_20tax_20return more:bizfinance Penalties. Amended tax return more:label_amended_20tax_20return more:bizfinance   If your charitable organization receives contributions of used motor vehicles, boats, and airplanes valued over $500 it may be subject to a penalty if it knowingly: Fails to furnish an acknowledgement in a timely manner, showing the required information, or Furnishes a false or fraudulent acknowledgement of the contribution. Amended tax return more:label_amended_20tax_20return more:bizfinance    Other penalties may apply. Amended tax return more:label_amended_20tax_20return more:bizfinance See Part O in the 2012 General Instructions for Certain Information Returns. Amended tax return more:label_amended_20tax_20return more:bizfinance   An acknowledgment containing a certification will be presumed to be false or fraudulent if the qualified vehicle is sold to a buyer other than a needy individual without a significant intervening use or material improvement within 6 months of the date of the contribution. Amended tax return more:label_amended_20tax_20return more:bizfinance   If a charity sells a donated vehicle at auction, the IRS will not accept as substantiation an acknowledgment from the charity stating that the vehicle is to be transferred to a needy individual for significantly below fair market value. Amended tax return more:label_amended_20tax_20return more:bizfinance Vehicles sold at auction are not sold at prices significantly below fair market value, and the IRS will not treat vehicles sold at auction as qualifying for this exception. Amended tax return more:label_amended_20tax_20return more:bizfinance   The penalty for a false or fraudulent acknowledgment where the donee certifies that the vehicle will not be transferred for money, other property, or services before completion of material improvements or significant intervening use or the donee certifies that the vehicle is to be transferred to a needy individual for significantly below fair market value in furtherance of the donee's charitable purpose is the larger of $5,000 or the claimed value of the vehicle multiplied by 39. Amended tax return more:label_amended_20tax_20return more:bizfinance 6%. Amended tax return more:label_amended_20tax_20return more:bizfinance   The penalty for an acknowledgment relating to a qualified vehicle being sold in an arm's length transaction to an unrelated party is the larger of the gross proceeds from the sale or the sales price stated in the acknowledgment multiplied by 39. Amended tax return more:label_amended_20tax_20return more:bizfinance 6%. Amended tax return more:label_amended_20tax_20return more:bizfinance Qualified Intellectual Property A taxpayer who contributes qualified intellectual property to a charity may be entitled to a charitable deduction, in addition to any initial deduction allowed in the year of contribution. Amended tax return more:label_amended_20tax_20return more:bizfinance The additional deduction is based on a specified percentage of the qualified donee income with respect to the qualified intellectual property. Amended tax return more:label_amended_20tax_20return more:bizfinance To qualify for the additional charitable deduction, the donor must provide notice to the donee at the time of the contribution that the donor intends to treat the contribution as qualified intellectual property contribution for purposes of sections 170(m) and 6050L. Amended tax return more:label_amended_20tax_20return more:bizfinance Every donee organization described in section 170(c) (except a private foundation as defined in section 509(a) that is not described in section 170(b)(1)(F)) that receives or accrues net income from a charitable gift of qualified intellectual property must file Form 8899. Amended tax return more:label_amended_20tax_20return more:bizfinance Form 8899. Amended tax return more:label_amended_20tax_20return more:bizfinance   Form 8899, Notice of Income From Donated Intellectual Property, is used by a donee to report net income from qualified intellectual property to the donor of the property and to the IRS and is due by the last day of the first full month following the close of the donee’s tax year. Amended tax return more:label_amended_20tax_20return more:bizfinance This form must be filed for each tax year of the donee in which the donated property produces net income, but only if all or part of that tax year occurs during the 10-year period beginning on the date of the contribution and that tax year does not begin after the expiration of the legal life of the donated property. Amended tax return more:label_amended_20tax_20return more:bizfinance Qualified donee income. Amended tax return more:label_amended_20tax_20return more:bizfinance   Qualified donee income is any net income received by or accrued to the donee that is properly allocable to the qualified intellectual property for the tax year of the donee which ends within or with the tax year of the donor. Amended tax return more:label_amended_20tax_20return more:bizfinance Income is not treated as allocated to qualified intellectual property if it is received or accrued after the earlier of the expiration of the legal life of the qualified intellectual property, or the 10-year period beginning with the date of