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Amending 2012 Tax Return

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Amending 2012 Tax Return

Amending 2012 tax return 13. Amending 2012 tax return   How To Get Tax Help Table of Contents Whether it's help with a tax issue, preparing your tax return or a need for a free publication or form, get the help you need the way you want it: online, use a smart phone, call or walk in to an IRS office or volunteer site near you. Amending 2012 tax return Free help with your tax return. Amending 2012 tax return   You can get free help preparing your return nationwide from IRS-certified volunteers. Amending 2012 tax return The Volunteer Income Tax Assistance (VITA) program helps low-to-moderate income, elderly, people with disabilities, and limited English proficient taxpayers. Amending 2012 tax return The Tax Counseling for the Elderly (TCE) program helps taxpayers age 60 and older with their tax returns. Amending 2012 tax return 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. Amending 2012 tax return In addition, some VITA and TCE sites provide taxpayers the opportunity to prepare their own return with help from an IRS-certified volunteer. Amending 2012 tax return To find the nearest VITA or TCE site, you can use the VITA Locator Tool on IRS. Amending 2012 tax return gov, download the IRS2Go app, or call 1-800-906-9887. Amending 2012 tax return   As part of the TCE program, AARP offers the Tax-Aide counseling program. Amending 2012 tax return To find the nearest AARP Tax-Aide site, visit AARP's website at www. Amending 2012 tax return aarp. Amending 2012 tax return org/money/taxaide or call 1-888-227-7669. Amending 2012 tax return For more information on these programs, go to IRS. Amending 2012 tax return gov and enter “VITA” in the search box. Amending 2012 tax return Internet. Amending 2012 tax return    IRS. Amending 2012 tax return gov and IRS2Go are ready when you are —24 hours a day, 7 days a week. Amending 2012 tax return Download the free IRS2Go app from the iTunes app store or from Google Play. Amending 2012 tax return Use it to check your refund status, order transcripts of your tax returns or tax account, watch the IRS YouTube channel, get IRS news as soon as it's released to the public, subscribe to filing season updates or daily tax tips, and follow the IRS Twitter news feed, @IRSnews, to get the latest federal tax news, including information about tax law changes and important IRS programs. Amending 2012 tax return Check the status of your 2013 refund with the Where's My Refund? application on IRS. Amending 2012 tax return gov or download the IRS2Go app and select the Refund Status option. Amending 2012 tax return The IRS issues more than 9 out of 10 refunds in less than 21 days. Amending 2012 tax return Using these applications, you can start checking on the status of your return within 24 hours after we receive your e-filed return or 4 weeks after you mail a paper return. Amending 2012 tax return You will also be given a personalized refund date as soon as the IRS processes your tax return and approves your refund. Amending 2012 tax return The IRS updates Where's My Refund? every 24 hours, usually overnight, so you only need to check once a day. Amending 2012 tax return Use the Interactive Tax Assistant (ITA) to research your tax questions. Amending 2012 tax return No need to wait on the phone or stand in line. Amending 2012 tax return The ITA is available 24 hours a day, 7 days a week, and provides you with a variety of tax information related to general filing topics, deductions, credits, and income. Amending 2012 tax return When you reach the response screen, you can print the entire interview and the final response for your records. Amending 2012 tax return New subject areas are added on a regular basis. Amending 2012 tax return  Answers not provided through ITA may be found in Tax Trails, one of the Tax Topics on IRS. Amending 2012 tax return gov which contain general individual and business tax information or by searching the IRS Tax Map, which includes an international subject index. Amending 2012 tax return You can use the IRS Tax Map, to search publications and instructions by topic or keyword. Amending 2012 tax return The IRS Tax Map integrates forms and publications into one research tool and provides single-point access to tax law information by subject. Amending 2012 tax return When the user searches the IRS Tax Map, they will be provided with links to related content in existing IRS publications, forms and instructions, questions and answers, and Tax Topics. Amending 2012 tax return Coming this filing season, you can immediately view and print for free all 5 types of individual federal tax transcripts (tax returns, tax account, record of account, wage and income statement, and certification of non-filing) using Get Transcript. Amending 2012 tax return You can also ask the IRS to mail a return or an account transcript to you. Amending 2012 tax return Only the mail option is available by choosing the Tax Records option on the IRS2Go app by selecting Mail Transcript on IRS. Amending 2012 tax return gov or by calling 1-800-908-9946. Amending 2012 tax return Tax return and tax account transcripts are generally available for the current year and the past three years. Amending 2012 tax return Determine if you are eligible for the EITC and estimate the amount of the credit with the Earned Income Tax Credit (EITC) Assistant. Amending 2012 tax return Visit Understanding Your IRS Notice or Letter to get answers to questions about a notice or letter you received from the IRS. Amending 2012 tax return If you received the First Time Homebuyer Credit, you can use the First Time Homebuyer Credit Account Look-up tool for information on your repayments and account balance. Amending 2012 tax return Check the status of your amended return using Where's My Amended Return? Go to IRS. Amending 2012 tax return gov and enter Where's My Amended Return? in the search box. Amending 2012 tax return You can generally expect your amended return to be processed up to 12 weeks from the date we receive it. Amending 2012 tax return It can take up to 3 weeks from the date you mailed it to show up in our system. Amending 2012 tax return Make a payment using one of several safe and convenient electronic payment options available on IRS. Amending 2012 tax return gov. Amending 2012 tax return Select the Payment tab on the front page of IRS. Amending 2012 tax return gov for more information. Amending 2012 tax return Determine if you are eligible and apply for an online payment agreement, if you owe more tax than you can pay today. Amending 2012 tax return Figure your income tax withholding with the IRS Withholding Calculator on IRS. Amending 2012 tax return gov. Amending 2012 tax return Use it if you've had too much or too little withheld, your personal situation has changed, you're starting a new job or you just want to see if you're having the right amount withheld. Amending 2012 tax return Determine if you might be subject to the Alternative Minimum Tax by using the Alternative Minimum Tax Assistant on IRS. Amending 2012 tax return gov. Amending 2012 tax return Request an Electronic Filing PIN by going to IRS. Amending 2012 tax return gov and entering Electronic Filing PIN in the search box. Amending 2012 tax return Download forms, instructions and publications, including accessible versions for people with disabilities. Amending 2012 tax return Locate the nearest Taxpayer Assistance Center (TAC) using the Office Locator tool on IRS. Amending 2012 tax return gov, or choose the Contact Us option on the IRS2Go app and search Local Offices. Amending 2012 tax return An employee can answer questions about your tax account or help you set up a payment plan. Amending 2012 tax return Before you visit, check the Office Locator on IRS. Amending 2012 tax return gov, or Local Offices under Contact Us on IRS2Go to confirm the address, phone number, days and hours of operation, and the services provided. Amending 2012 tax return If you have a special need, such as a disability, you can request an appointment. Amending 2012 tax return Call the local number listed in the Office Locator, or look in the phone book under United States Government, Internal Revenue Service. Amending 2012 tax return Apply for an Employer Identification Number (EIN). Amending 2012 tax return Go to IRS. Amending 2012 tax return gov and enter Apply for an EIN in the search box. Amending 2012 tax return Read the Internal Revenue Code, regulations, or other official guidance. Amending 2012 tax return Read Internal Revenue Bulletins. Amending 2012 tax return Sign up to receive local and national tax news and more by email. Amending 2012 tax return Just click on “subscriptions” above the search box on IRS. Amending 2012 tax return gov and choose from a variety of options. Amending 2012 tax return    Phone. Amending 2012 tax return You can call the IRS, or you can carry it in your pocket with the IRS2Go app on your smart phone or tablet. Amending 2012 tax return Download the free IRS2Go app from the iTunes app store or from Google Play. Amending 2012 tax return Call to locate the nearest volunteer help site, 1-800-906-9887 or you can use the VITA Locator Tool on IRS. Amending 2012 tax return gov, or download the IRS2Go app. Amending 2012 tax return Low-to-moderate income, elderly, people with disabilities, and limited English proficient taxpayers can get free help with their tax return from the nationwide Volunteer Income Tax Assistance (VITA) program. Amending 2012 tax return The Tax Counseling for the Elderly (TCE) program helps taxpayers age 60 and older with their tax returns. Amending 2012 tax return Most VITA and TCE sites offer free electronic filing. Amending 2012 tax return Some VITA and TCE sites provide IRS-certified volunteers who can help prepare your tax return. Amending 2012 tax return Through the TCE program, AARP offers the Tax-Aide counseling program; call 1-888-227-7669 to find the nearest Tax-Aide location. Amending 2012 tax return Call the automated Where's My Refund? information hotline to check the status of your 2013 refund 24 hours a day, 7 days a week at 1-800-829-1954. Amending 2012 tax return If you e-file, you can start checking on the status of your return within 24 hours after the IRS receives your tax return or 4 weeks after you've mailed a paper return. Amending 2012 tax return The IRS issues more than 9 out of 10 refunds in less than 21 days. Amending 2012 tax return Where's My Refund? will give you a personalized refund date as soon as the IRS processes your tax return and approves your refund. Amending 2012 tax return Before you call this automated hotline, have your 2013 tax return handy so you can enter your social security number, your filing status, and the exact whole dollar amount of your refund. Amending 2012 tax return The IRS updates Where's My Refund? every 24 hours, usually overnight, so you only need to check once a day. Amending 2012 tax return Note, the above information is for our automated hotline. Amending 2012 tax return Our live phone and walk-in assistors can research the status of your refund only if it's been 21 days or more since you filed electronically or more than 6 weeks since you mailed your paper return. Amending 2012 tax return Call the Amended Return Hotline, 1-866-464-2050, to check the status of your amended return. Amending 2012 tax return You can generally expect your amended return to be processed up to 12 weeks from the date we receive it. Amending 2012 tax return It can take up to 3 weeks from the date you mailed it to show up in our system. Amending 2012 tax return Call 1-800-TAX-FORM (1-800-829-3676) to order current-year forms, instructions, publications, and prior-year forms and instructions (limited to 5 years). Amending 2012 tax return You should receive your order within 10 business days. Amending 2012 tax return Call TeleTax, 1-800-829-4477, to listen to pre-recorded messages covering general and business tax information. Amending 2012 tax return If, between January and April 15, you still have questions about the Form 1040, 1040A, or 1040EZ (like filing requirements, dependents, credits, Schedule D, pensions and IRAs or self-employment taxes), call 1-800-829-1040. Amending 2012 tax return Call using TTY/TDD equipment, 1-800-829-4059 to ask tax questions or order forms and publications. Amending 2012 tax return The TTY/TDD telephone number is for people who are deaf, hard of hearing, or have a speech disability. Amending 2012 tax return These individuals can also contact the IRS through relay services such as the Federal Relay Service. Amending 2012 tax return    Walk-in. Amending 2012 tax return You can find a selection of forms, publications and services — in-person. Amending 2012 tax return Products. Amending 2012 tax return You can walk in to some post offices, libraries, and IRS offices to pick up certain forms, instructions, and publications. Amending 2012 tax return Some IRS offices, libraries, and city and county government offices have a collection of products available to photocopy from reproducible proofs. Amending 2012 tax return Services. Amending 2012 tax return You can walk in to your local TAC for face-to-face tax help. Amending 2012 tax return An employee can answer questions about your tax account or help you set up a payment plan. Amending 2012 tax return Before visiting, use the Office Locator tool on IRS. Amending 2012 tax return gov, or choose the Contact Us option on the IRS2Go app and search Local Offices for days and hours of operation, and services provided. Amending 2012 tax return    Mail. Amending 2012 tax return You can send your order for forms, instructions, and publications to the address below. Amending 2012 tax return You should receive a response within 10 business days after your request is received. Amending 2012 tax return Internal Revenue Service 1201 N. Amending 2012 tax return Mitsubishi Motorway Bloomington, IL 61705-6613    The Taxpayer Advocate Service Is Here to Help You. Amending 2012 tax return The Taxpayer Advocate Service (TAS) is your voice at the IRS. Amending 2012 tax return Our job is to ensure that every taxpayer is treated fairly and that you know and understand your rights. Amending 2012 tax return   What can TAS do for you? We can offer you free help with IRS problems that you can't resolve on your own. Amending 2012 tax return We know this process can be confusing, but the worst thing you can do is nothing at all! TAS can help if you can't resolve your tax problem and: Your problem is causing financial difficulties for you, your family, or your business. Amending 2012 tax return You face (or your business is facing) an immediate threat of adverse action. Amending 2012 tax return You've tried repeatedly to contact the IRS but no one has responded, or the IRS hasn't responded by the date promised. Amending 2012 tax return   If you qualify for our help, you'll be assigned to one advocate who'll be with you at every turn and will do everything possible to resolve your problem. Amending 2012 tax return Here's why we can help: TAS is an independent organization within the IRS. Amending 2012 tax return Our advocates know how to work with the IRS. Amending 2012 tax return Our services are free and tailored to meet your needs. Amending 2012 tax return We have offices in every state, the District of Columbia, and Puerto Rico. Amending 2012 tax return   How can you reach us? If you think TAS can help you, call your local advocate, whose number is in your local directory and at Taxpayer Advocate, or call us toll-free at 1-877-777-4778. Amending 2012 tax return   How else does TAS help taxpayers?  TAS also works to resolve large-scale, systemic problems that affect many taxpayers. Amending 2012 tax return If you know of one of these broad issues, please report it to us through our Systemic Advocacy Management System. Amending 2012 tax return Low Income Taxpayer Clinics. Amending 2012 tax return   Low Income Taxpayer Clinics (LITCs) serve individuals whose income is below a certain level and need to resolve tax problems such as audits, appeals, and tax collection disputes. Amending 2012 tax return Some clinics can provide information about taxpayer rights and responsibilities in different languages for individuals who speak English as a second language. Amending 2012 tax return Visit Taxpayer Advocate or see IRS Publication 4134, Low Income Taxpayer Clinic List. Amending 2012 tax return Prev  Up  Next   Home   More Online Publications
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The Amending 2012 Tax Return

Amending 2012 tax return Publication 908 - Main Content Table of Contents Bankruptcy Code Tax Compliance RequirementsTax Returns Due for Periods Ending Before the Bankruptcy Filing in Chapter 13 Cases Tax Returns Due After the Bankruptcy Filing Individuals in Chapter 12 or 13 Individuals in Chapter 7 or 11Debtor's Election To End Tax Year – Form 1040 Taxes and the Bankruptcy Estate Bankruptcy Estate – Income, Deductions, and Credits Tax Reporting – Chapter 11 Cases Bankruptcy Estate Tax Return Filing Requirements and Payment of Tax Due Tax Return Example – Form 1041 Partnerships and CorporationsFiling Requirements Partnerships Corporations Receiverships Determination of TaxPrompt Determination Requests Court Jurisdiction Over Tax MattersBankruptcy Court Tax Court Federal Tax ClaimsUnsecured Tax Claims Discharge of Unpaid Tax Debt CancellationExclusions Reduction of Tax Attributes Partnerships Corporations Tax Attribute Reduction Example How To Get Tax HelpTaxpayer Advocacy Panel (TAP). Amending 2012 tax return Low Income Taxpayer Clinics (LITCs). Amending 2012 tax return Bankruptcy Code Tax Compliance Requirements Tax Returns Due for Periods Ending Before the Bankruptcy Filing in Chapter 13 Cases The Bankruptcy Code requires chapter 13 debtors to file all required tax returns for tax periods ending within 4 years of the debtor's bankruptcy filing. Amending 2012 tax return All such federal tax returns must be filed with the IRS before the date first set for the first meeting of creditors. Amending 2012 tax return The debtor may request the trustee to hold the meeting open for an additional 120 days to enable the debtor to file the returns (or until the day the returns are due under an automatic IRS extension, if later). Amending 2012 tax return After notice and hearing, the bankruptcy court may extend the period for another 30 days. Amending 2012 tax return Failure to timely file the returns can prevent confirmation of a chapter 13 plan and result in either dismissal of the chapter 13 case or conversion to a chapter 7 case. Amending 2012 tax return Note. Amending 2012 tax return Individual debtors should use their home address when filing Form 1040 with the IRS. Amending 2012 tax return Returns should not be filed “in care of” the trustee's address. Amending 2012 tax return Ordering tax transcripts and copies of returns. Amending 2012 tax return   Trustees may require the debtor to submit copies or transcripts of the debtor's returns as proof of filing. Amending 2012 tax return The debtor can request free transcripts of the debtor's income tax returns by filing Form 4506-T, Request for Transcript of Tax Return, with the IRS or by placing a request on the IRS's free Automated Delivery Service (ADS), available by calling 1-800-829-1040. Amending 2012 tax return If requested through ADS, the transcript will be mailed to the debtor's most current address according to the IRS's records. Amending 2012 tax return Transcripts requested using Form 4506-T may be mailed to any address, including to the attention of the trustee in the debtor's bankruptcy case. Amending 2012 tax return Transcripts are normally mailed within 10 to 15 days of receipt of the request by the IRS. Amending 2012 tax return A transcript contains most of the information on the debtor's filed return, but it is not a copy of the return. Amending 2012 tax return To request a copy of the debtor's filed return, file Form 4506, Request for Copy of Tax Return. Amending 2012 tax return It may take up to 60 days for the IRS to provide the copies after receipt of the debtor's request, and there is a fee of $57. Amending 2012 tax return 00 per tax return for copies of the returns. Amending 2012 tax return Tax Returns Due After the Bankruptcy Filing For debtors filing bankruptcy under all chapters (chapters 7, 11, 12, or 13), the Bankruptcy Code provides that if the debtor does not file a tax return that becomes due after the commencement of the bankruptcy case, or obtain an extension for filing the return before the due date, the taxing authority may request that the bankruptcy court either dismiss the case or convert the case to a case under another chapter of the Bankruptcy Code. Amending 2012 tax return If the debtor does not file the required return or obtain an extension within 90 days after the request is made, the bankruptcy court must dismiss or convert the case. Amending 2012 tax return Tax returns and payment of taxes in chapter 11 cases. Amending 2012 tax return   The Bankruptcy Code provides that a chapter 11 debtor's failure to timely file tax returns and pay taxes owed after the date of the “order for relief” (the bankruptcy petition date in voluntary cases) is cause for dismissal of the chapter 11 case, conversion to a chapter 7 case, or appointment of a chapter 11 trustee. Amending 2012 tax return Disclosure of debtor's return information to trustee. Amending 2012 tax return   In bankruptcy cases filed under chapter 7 or 11 by individuals, the debtor's income tax returns for the year the bankruptcy case begins and for earlier years are, upon written request, open to inspection by or disclosure to the trustee. Amending 2012 tax return If the bankruptcy case was not voluntary, disclosure cannot be made before the bankruptcy court has entered an order for relief, unless the court rules that the disclosure is needed for determining whether relief should be ordered. Amending 2012 tax return    In bankruptcy cases other than those of individuals filing under chapter 7 or 11, the debtor's income tax returns for the current and prior years are, upon written request, open to inspection by or disclosure to the trustee, but only if the IRS finds that the trustee has a material interest that will be affected by information on the return. Amending 2012 tax return Material interest is generally defined as a financial or monetary interest. Amending 2012 tax return Material interest is not limited to the trustee's responsibility to file a return on behalf of the bankruptcy estate. Amending 2012 tax return   However, the U. Amending 2012 tax return S. Amending 2012 tax return Trustee (an officer of the Department of Justice, responsible for maintaining and supervising a panel of private trustees for chapter 7 bankruptcy cases) and the standing chapter 13 trustee (the administrator of chapter 13 cases in a specific geographic region) generally do not have a material interest in the debtor’s return or return information. Amending 2012 tax return Disclosure of bankruptcy estate's return information to debtor. Amending 2012 tax return    The bankruptcy estate's tax return(s) are open, upon written request, to inspection by or disclosure to the individual debtor in a chapter 7 or 11 bankruptcy. Amending 2012 tax return Disclosure of the estate's return to the debtor may be necessary to enable the debtor to determine the amount and nature of the tax attributes, if any, that the debtor assumes when the bankruptcy estate terminates. Amending 2012 tax return Individuals in Chapter 12 or 13 Only individuals may file a chapter 13 bankruptcy. Amending 2012 tax return Chapter 13 relief is not available to corporations or partnerships. Amending 2012 tax return The bankruptcy estate is not treated as a separate entity for tax purposes when an individual files a petition under chapter 12 (Adjustment of Debts of a Family Farmer or Fisherman with Regular Annual Income) or 13 (Adjustment of Debts of an Individual with Regular Income) of the Bankruptcy Code. Amending 2012 tax return In these cases the individual continues to file the same federal income tax returns that were filed prior to the bankruptcy petition, Form 1040, U. Amending 2012 tax return S. Amending 2012 tax return Individual Income Tax Return. Amending 2012 tax return On the debtor's individual tax return, Form 1040, report all income received during the entire year and deduct all allowable expenses. Amending 2012 tax return Do not include in income the amount from any debt canceled due to the debtor's bankruptcy. Amending 2012 tax return To the extent the debtor has any losses, credits, or basis in property that were previously reduced as a result of canceled debt, these reductions must be included on the debtor's return. Amending 2012 tax return See Debt Cancellation, later. Amending 2012 tax return Interest on trust accounts in chapter 13 cases. Amending 2012 tax return   In chapter 13 proceedings, do not include interest earned on amounts held by the trustee in trust accounts as income on the debtor's return. Amending 2012 tax return This interest is not available to either the debtor or creditors, it is available only to the trustee for use by the U. Amending 2012 tax return S. Amending 2012 tax return Trustee system. Amending 2012 tax return The interest is also not taxable to the trustee as income. Amending 2012 tax return Individuals in Chapter 7 or 11 When an individual debtor files for bankruptcy under chapter 7 or 11 of the Bankruptcy Code, the bankruptcy estate is treated as a new taxable entity, separate from the individual taxpayer. Amending 2012 tax return The bankruptcy estate in a chapter 7 case is represented by a trustee. Amending 2012 tax return The trustee is appointed to administer the estate and liquidate any nonexempt assets. Amending 2012 tax return In chapter 11 cases, the debtor often remains in control of the assets as a “debtor-in-possession” and acts as the bankruptcy trustee. Amending 2012 tax return However, the bankruptcy court, for cause, may appoint a trustee if such appointment is in the best interests of the creditors and the estate. Amending 2012 tax return During the chapter 7 or 11 bankruptcy, the debtor continues to file an individual tax return on Form 1040. Amending 2012 tax return The bankruptcy trustee files a Form 1041 for the bankruptcy estate. Amending 2012 tax return However, when a debtor in a chapter 11 bankruptcy case remains a debtor-in-possession, he or she must file both a Form 1040 individual return and a Form 1041 estate return for the bankruptcy estate (if return filing requirements are met). Amending 2012 tax return Although a husband and wife may file a joint bankruptcy petition whose bankruptcy estates are jointly administered, the estates are be treated as two separate entities for tax purposes. Amending 2012 tax return Two separate bankruptcy estate income tax returns must be filed (if each spouse separately meets the filing requirements). Amending 2012 tax return For information about determining the tax due and paying tax for a chapter 7 or 11 bankruptcy estate, see Bankruptcy Estate Tax Return Filing Requirements and Payment of Tax Due, later. Amending 2012 tax return Debtor's Election To End Tax Year – Form 1040 Short tax years. Amending 2012 tax return   An individual debtor in a chapter 7 or 11 case may elect to close the debtor's tax year for the year in which the bankruptcy petition is filed, as of the day before the date on which the bankruptcy case commences. Amending 2012 tax return If the debtor makes this election, the debtor's tax year is divided into 2 short tax years of less than 12 months each. Amending 2012 tax return The first tax year ends on the day before the commencement date and the second tax year begins on the commencement date. Amending 2012 tax return   If the election is made, the debtor's federal income tax liability for the first short tax year becomes an allowable claim against the bankruptcy estate arising before the bankruptcy filing. Amending 2012 tax return Also, the tax liability for the first short tax year is not subject to discharge under the Bankruptcy Code. Amending 2012 tax return    If the debtor does not make an election to end the tax year, the commencement of the bankruptcy case does not affect the debtor's tax year. Amending 2012 tax return Also, no part of the debtor's income tax liability for the year in which the bankruptcy case commences can be collected from the bankruptcy estate. Amending 2012 tax return Note. Amending 2012 tax return The debtor cannot make a short tax year election if no assets, other than exempt property, are in the bankruptcy estate. Amending 2012 tax return Making the Election - Filing Requirements First short tax year. Amending 2012 tax return   The debtor can elect to end the debtor's tax year by filing a return on Form 1040 for the first short tax year. Amending 2012 tax return The return must be filed on or before the 15th day of the fourth full month after the end of that first tax year. Amending 2012 tax return Second short tax year. Amending 2012 tax return   If the debtor elects to end the tax year on the day before filing the bankruptcy case, the debtor must file the return for the first short tax year in the manner discussed above. Amending 2012 tax return   If the debtor makes this election, the debtor must also file a separate Form 1040 for the second short tax year by the regular due date. Amending 2012 tax return To avoid delays in processing the return, write “Second Short Year Return After Section 1398 Election” at the top of the return. Amending 2012 tax return Example. Amending 2012 tax return Jane Doe, an individual calendar year taxpayer, filed a bankruptcy petition under chapter 7 or 11 on May 8, 2012. Amending 2012 tax return If Jane elected to close her tax year at the commencement of her case, Jane's first short year for 2012 runs from January 1 through May 7, 2012. Amending 2012 tax return Jane's second short year runs from May 8, 2012, through December 31, 2012. Amending 2012 tax return To have a timely filed election for the first short year, Jane must file Form 1040 (or an extension of time to file) for the period January 1 through May 7 by September 15. Amending 2012 tax return To avoid delays in processing the return, write “Section 1398 Election” at the top of the return. Amending 2012 tax return The debtor may also make the election by attaching a statement to Form 4868, Automatic Extension of Time to File an U. Amending 2012 tax return S. Amending 2012 tax return Individual Tax Return. Amending 2012 tax return The statement must state that the debtor elects under IRC section 1398(d)(2) to close the debtor's tax year on the day before filing the bankruptcy case. Amending 2012 tax return The debtor must file Form 4868 by the due date of the return for the first short tax year. Amending 2012 tax return The debtor's spouse may also elect to close his or her tax year, see Election by debtor's spouse, below. Amending 2012 tax return Election by debtor's spouse. Amending 2012 tax return   If the debtor is married, the debtor's spouse may join in the election to end the tax year. Amending 2012 tax return If the debtor and spouse make a joint election, the debtor must file a joint return for the first short tax year. Amending 2012 tax return The debtor must elect by the due date for filing the return for the first short tax year. Amending 2012 tax return Once the election is made, it cannot be revoked for the first short tax year. Amending 2012 tax return However, the election does not prevent the debtor and the spouse from filing separate returns for the second short tax year. Amending 2012 tax return Later bankruptcy of spouse. Amending 2012 tax return    If the debtor's spouse files for bankruptcy later in the same year, he or she may also choose to end his or her tax year, regardless of whether he or she joined in the election to end the debtor's tax year. Amending 2012 tax return   As each spouse has a separate bankruptcy, one or both of them may have 3 short tax years in the same calendar year. Amending 2012 tax return If the debtor's spouse joined the debtor's election or if the debtor had not made the election to end the tax year, the debtor can join in the spouse's election. Amending 2012 tax return However, if the debtor made an election and the spouse did not join that election, the debtor cannot then join the spouse's later election. Amending 2012 tax return The debtor and the spouse are precluded from this election because they have different tax years. Amending 2012 tax return This results because the debtor does not have a tax year ending the day before the spouse's filing for bankruptcy, and the debtor cannot file a joint return for a year ending on the day before the spouse's filing of bankruptcy. Amending 2012 tax return Example 1. Amending 2012 tax return Paul and Mary Harris are calendar-year taxpayers. Amending 2012 tax return Paul's voluntary chapter 7 bankruptcy case begins on March 4. Amending 2012 tax return If Paul does not make an election, his tax year does not end on March 3. Amending 2012 tax return If he makes an election, Paul's first tax year is January 1–March 3, and his second tax year begins on March 4. Amending 2012 tax return Mary could join in Paul's election as long as they file a joint return for the tax year January 1–March 3. Amending 2012 tax return They must make the election by July 15, the due date for filing the joint return. Amending 2012 tax return Example 2. Amending 2012 tax return Fred and Ethel Barnes are calendar-year taxpayers. Amending 2012 tax return Fred's voluntary chapter 7 bankruptcy case begins on May 6, and Ethel's bankruptcy case begins on November 1 of the same year. Amending 2012 tax return Ethel could elect to end her tax year on October 31. Amending 2012 tax return If Fred did not elect to end his tax year on May 5, or if he elected to do so but Ethel had not joined in his election, Ethel would have 2 tax years in the same calendar year if she decided to close her tax year. Amending 2012 tax return Her first tax year is January 1–October 31, and her second year is November 1–December 31. Amending 2012 tax return If Fred did not end his tax year as of May 5, he could join in Ethel's election to close her tax year on October 31, but only if they file a joint return for the tax year January 1–October 31. Amending 2012 tax return If Fred elected to end his tax year on May 5, but Ethel did not join in Fred's election, Fred cannot join in Ethel's election to end her tax year on October 31. Amending 2012 tax return Fred and Ethel cannot file a joint return for that short tax year because their tax years preceding October 31 were not the same. Amending 2012 tax return Example 3. Amending 2012 tax return Jack and Karen Thomas are calendar-year taxpayers. Amending 2012 tax return Karen's voluntary chapter 7 bankruptcy case began on April 10, and Jack's voluntary chapter 7 bankruptcy case began on October 3 of the same year. Amending 2012 tax return Karen elected to close her tax year on April 9 and Jack joins in Karen's election. Amending 2012 tax return Under these facts, Jack would have 3 tax years for the same calendar year if he makes the election relating to his own bankruptcy case. Amending 2012 tax return The first tax year would be January 1–April 9; the second, April 10–October 2; and the third, October 3–December 31. Amending 2012 tax return Karen may join in Jack's election if they file a joint return for the second short tax year (April 10–October 2). Amending 2012 tax return If Karen does join in, she would have the same 3 short tax years as Jack. Amending 2012 tax return Also, if Karen joins in Jack's election, they may file a joint return for the third tax year (October 3–December 31), but they are not required to do so. Amending 2012 tax return Annualizing taxable income. Amending 2012 tax return   If the debtor elects to close the tax year, the debtor must annualize taxable income for each short tax year in the same manner a change in annual accounting period is calculated. Amending 2012 tax return See Short Tax Year in Publication 538, for information on how to annualize the debtor's income and to figure the tax for the short tax year. Amending 2012 tax return Dismissal of bankruptcy case. Amending 2012 tax return   If the bankruptcy court later dismisses an individual chapter 7 or 11 case, the bankruptcy estate is no longer treated as a separate taxable entity. Amending 2012 tax return It is as if no bankruptcy estate was created for tax purposes. Amending 2012 tax return In this situation, the debtor must file amended tax returns on Form 1040X, to replace all full or short year individual returns (Form 1040) and bankruptcy estate returns (Form 1041) filed as a result of the bankruptcy case. Amending 2012 tax return Income, deductions, and credits previously reported by the bankruptcy estate must be reported on the debtor's amended returns. Amending 2012 tax return Attach a statement to the amended returns explaining why the debtor is filing an amended return. Amending 2012 tax return Taxes and the Bankruptcy Estate Property of the bankruptcy estate. Amending 2012 tax return   At the commencement of a bankruptcy case a bankruptcy estate is created. Amending 2012 tax return Bankruptcy law determines which of the debtor's assets become part of a bankruptcy estate. Amending 2012 tax return This estate generally includes all of the debtor's legal and equitable interests in property as of the commencement date. Amending 2012 tax return However, there are exceptions and certain property is exempted or excluded from the bankruptcy estate. Amending 2012 tax return Note. Amending 2012 tax return Exempt property and abandoned property are initially part of the bankruptcy estate, but are subsequently removed from the estate. Amending 2012 tax return Excluded property is never included in the estate. Amending 2012 tax return Transfer of assets between debtor and bankruptcy estate. Amending 2012 tax return   The transfer (other than by sale or exchange) of an asset from the debtor to the bankruptcy estate is not treated as a disposition for income tax purposes. Amending 2012 tax return The transfer does not result in gain or loss, acceleration of income or deductions, or recapture of deductions or credits. Amending 2012 tax return For example, the transfer of an installment obligation to the estate would not accelerate gain under the rules for reporting installment sales. Amending 2012 tax return The estate assumes the same basis, holding period, and character of the transferred assets. Amending 2012 tax return Also, the estate generally accounts for the transferred assets in the same manner as debtor. Amending 2012 tax return   When the bankruptcy estate is terminated or dissolved, any resulting transfer (other than by sale or exchange) of the estate's assets back to the debtor is also not treated as a disposition for tax purposes. Amending 2012 tax return The transfer does not result in gain or loss, acceleration of income or deductions, or recapture of deductions or credits to the estate. Amending 2012 tax return Abandoned property. Amending 2012 tax return    The abandonment of property by the estate to the debtor is a nontaxable disposition of property. Amending 2012 tax return If the debtor received abandoned property from the bankruptcy estate, the debtor assumes the same basis in the property that the bankruptcy estate had. Amending 2012 tax return Separate taxable entity. Amending 2012 tax return   When an individual files a bankruptcy petition under chapter 7 or 11, the bankruptcy estate is treated as a separate taxable entity from the debtor. Amending 2012 tax return The court appointed trustee or the debtor-in-possession is responsible for preparing and filing all of the bankruptcy estate's tax returns, including its income tax return on Form 1041, U. Amending 2012 tax return S. Amending 2012 tax return Income Tax Return for Estates and Trusts, and paying its taxes. Amending 2012 tax return The debtor remains responsible for filing his or her own returns on Form 1040, U. Amending 2012 tax return S. Amending 2012 tax return Individual Income Tax Return, and paying taxes on income that does not belong to the estate. Amending 2012 tax return Employer identification number. Amending 2012 tax return   The trustee or debtor-in-possession must obtain an EIN for a bankruptcy estate. Amending 2012 tax return The trustee or debtor-in-possession uses this EIN on all tax returns filed for the bankruptcy estate with the IRS, including estimated tax returns. Amending 2012 tax return See Employer identification number, under Bankruptcy Estate Tax Return Filing Requirements and Payment of Tax Due, later. Amending 2012 tax return    The social security number of the individual debtor cannot be used as the EIN for the bankruptcy estate. Amending 2012 tax return Income, deductions, and credits – Form 1040. Amending 2012 tax return   In an individual chapter 7 or 11 bankruptcy case, do not include the income, deductions, and credits that belong to the bankruptcy estate on the debtor's individual income tax return (Form 1040). Amending 2012 tax return Also, do not include as income on the debtor's return the amount of any debt canceled by reason of the bankruptcy discharge. Amending 2012 tax return The bankruptcy estate must reduce certain losses, credits, and the basis in property (to the extent of these items) by the amount of canceled debt. Amending 2012 tax return See Debt Cancellation, below. Amending 2012 tax return Note. Amending 2012 tax return The debtor may not be able to claim certain deductions available to the bankruptcy estate such as administrative expenses. Amending 2012 tax return Additionally, the bankruptcy exclusion cannot be used to exclude income from a cancelled debt if the discharge of indebtedness was not within the bankruptcy case, even though the debtor was under the bankruptcy court's protection at the time. Amending 2012 tax return However, other exclusions, such as the insolvency exclusion, may apply. Amending 2012 tax return Bankruptcy Estate – Income, Deductions, and Credits Bankruptcy Estate Income Income of the estate in individual chapter 7 cases. Amending 2012 tax return    The gross income of the bankruptcy estate includes gross income of the debtor to which the estate is entitled under the Bankruptcy Code. Amending 2012 tax return Gross income also includes income generated by the bankruptcy estate from property of the estate after the commencement of the case. Amending 2012 tax return   Gross income of the bankruptcy estate does not include amounts received or accrued by the debtor before the commencement of the case. Amending 2012 tax return Additionally, in chapter 7 cases, gross income of the bankruptcy estate does not include any income that the debtor earns after the date of the bankruptcy petition. Amending 2012 tax return Income of the estate in individual chapter 11 cases. Amending 2012 tax return    In chapter 11 cases, under IRC section 1398(e)(1), gross income of the bankruptcy estate includes income that the debtor earns for services performed after the bankruptcy petition date. Amending 2012 tax return Also, earnings from services performed by an individual debtor after the commencement of the chapter 11 case are property of the bankruptcy estate under section 1115 of the Bankruptcy Code (11 U. Amending 2012 tax return S. Amending 2012 tax return C. Amending 2012 tax return section 1115). Amending 2012 tax return Note. Amending 2012 tax return A debtor-in-possession may be compensated by the estate for managing or operating a trade or business that the debtor conducted before the commencement of the bankruptcy case. Amending 2012 tax return Such payments should be reported by the debtor as miscellaneous income on his or her individual income tax return (Form 1040). Amending 2012 tax return Amounts paid by the estate to the debtor-in-possession for managing or operating the trade or business may qualify as administrative expenses of the estate. Amending 2012 tax return See Administrative expenses, below. Amending 2012 tax return Conversion or dismissal of chapter 11 cases. Amending 2012 tax return   If a chapter 11 case is converted to a chapter 13 case, the chapter 13 estate is not a separate taxable entity and earnings from post-conversion services and income from property of the estate realized after the conversion to chapter 13 are taxed to the debtor. Amending 2012 tax return If the chapter 11 case is converted to a chapter 7 case, 11 U. Amending 2012 tax return S. Amending 2012 tax return C. Amending 2012 tax return section 1115 does not apply after conversion and: Earnings from post-conversion services will be taxed to the debtor, rather than the estate, and The property of the chapter 11 estate will become property of the chapter 7 estate. Amending 2012 tax return Any income on this property will be taxed to the estate even if the income is realized after the conversion to chapter 7. Amending 2012 tax return If a chapter 11 case is dismissed, the debtor is treated as if the bankruptcy case had never been filed and as if no bankruptcy estate had been created. Amending 2012 tax return Bankruptcy Estate Deductions and Credits A bankruptcy estate deducts expenses incurred in a trade, business, or activity, and uses credits in the same way the debtor would have deducted or credited them had he or she continued operations. Amending 2012 tax return Note. Amending 2012 tax return Expenses may be disallowed under other provisions of the IRC (such as the disallowance of certain capital expenditures or expenses relating to tax-exempt interest). Amending 2012 tax return Administrative expenses. Amending 2012 tax return   Allowable expenses include administrative expenses. Amending 2012 tax return    Administrative expenses can only be deducted by the estate, never by the debtor. Amending 2012 tax return   The bankruptcy estate is allowed deductions for bankruptcy administrative expenses and fees, including accounting fees, attorney fees, and court costs. Amending 2012 tax return These expenses are deductible on Form 1040, Schedule A as miscellaneous itemized deductions not subject to the 2% floor on miscellaneous itemized deductions, because they would not have been incurred if property had not been held by the bankruptcy estate. Amending 2012 tax return See IRC section 67(e). Amending 2012 tax return Administrative expenses of the bankruptcy estate attributable to conducting a trade or business for the production of estate rents or royalties are deductible in arriving at adjusted gross income on Form 1040, Schedules C, E, and F. Amending 2012 tax return Note. Amending 2012 tax return The bankruptcy estate uses Form 1041 as a transmittal for the tax return prepared using Form 1040 and its schedules. Amending 2012 tax return See Transmittal for Form 1040 under Tax Return Filing Requirements and Payment of Tax, later. Amending 2012 tax return Administrative expense loss. Amending 2012 tax return   If the administrative expenses of the bankruptcy estate are more than its gross income for a tax year, the excess amount may be carried back 3 years and forward 7 years. Amending 2012 tax return The amounts can only be carried to a tax year of the estate and never to a debtor's tax year. Amending 2012 tax return The excess amount to be carried back or forward is treated like a net operating loss (NOL) and must first be carried back to the earliest year possible. Amending 2012 tax return For a discussion of NOLs, see Publication 536. Amending 2012 tax return Attribute carryovers. Amending 2012 tax return   The bankruptcy estate may use its tax attributes the same way that the debtor would have used them. Amending 2012 tax return These items are determined as of the first day of the debtor's tax year in which the bankruptcy case begins. Amending 2012 tax return The bankruptcy estate assumes the following tax attributes from the debtor: NOL carryovers, Carryovers of excess charitable contributions, Recovery of tax benefit items, Credit carryovers, Capital loss carryovers, Basis, holding period, and character of assets, Method of accounting, Passive activity loss and credit carryovers, Unused at-risk deductions, and Other tax attributes provided in the regulations. Amending 2012 tax return   Certain tax attributes of the bankruptcy estate must be reduced by the amount of income that was previously excluded as a result of cancellation of debt during the bankruptcy proceeding. Amending 2012 tax return See Debt Cancellation, later. Amending 2012 tax return   When the bankruptcy estate is terminated (for example, when the case ends), the debtor assumes any remaining tax attributes previously taken over by the bankruptcy estate. Amending 2012 tax return The debtor also generally assumes any of the tax attributes, listed above, that arose during the administration of the bankruptcy estate. Amending 2012 tax return Note. Amending 2012 tax return The debtor does not assume the bankruptcy estate's administrative expense losses because they cannot be used by an individual taxpayer filing Form 1040. Amending 2012 tax return See Administrative expense loss, above. Amending 2012 tax return Passive and at-risk activities. Amending 2012 tax return   For bankruptcy cases beginning after November 8, 1992, passive activity carryover losses and credits and unused at-risk deductions are treated as tax attributes passing from the debtor to the bankruptcy estate, which the estate then passes back to the debtor when the bankruptcy estate terminates. Amending 2012 tax return Additionally, transfers to the debtor (other than by sale or exchange) of interests in passive or at-risk activities are treated as non-taxable exchanges. Amending 2012 tax return These transfers include the return of exempt property and abandonment of estate property to the debtor. Amending 2012 tax return Carrybacks from the debtor's activities. Amending 2012 tax return   The debtor cannot carry back any NOL or credit carryback from a tax year ending after the bankruptcy case has begun to any tax year ending before the case began. Amending 2012 tax return Carrybacks from the bankruptcy estate. Amending 2012 tax return   If the bankruptcy estate has an NOL that did not pass to the estate from the debtor under the attribute carryover rules, the estate can carry the loss back not only to its own earlier tax years but also to the debtor's tax years before the year the bankruptcy case began. Amending 2012 tax return The estate may also carry back excess credits, such as the general business credit, to the pre-bankruptcy tax years. Amending 2012 tax return Tax Reporting – Chapter 11 Cases Allocation of income and credits on information returns and required statement for returns for individual chapter 11 cases. Amending 2012 tax return    In chapter 11 cases, when an employer issues a Form W-2 reporting all of the debtor's wages, salary, or other compensation for a calendar year, and a portion of the earnings represent post-petition services includible in the estate's gross income, the Form W-2 amounts must be allocated between the estate and the debtor. Amending 2012 tax return The debtor-in-possession or trustee must allocate the income amount reported in box 1 and the income tax withheld reported in box 2 between the debtor and the estate. Amending 2012 tax return These allocations must reflect that the debtor's gross earnings from post-petition services and gross income from post-petition property are, generally, includible in the estate's gross income and not the debtor's gross income. Amending 2012 tax return The debtor and trustee may use a simple percentage method to allocate income and income tax withheld. Amending 2012 tax return The same method must be used to allocate the income and the withheld tax. Amending 2012 tax return Example. Amending 2012 tax return If 20% of the wages reported on Form W-2 for a calendar year were earned after the commencement of the case and are included in the estate's gross income, 20% of the withheld income tax reported on Form W-2 must also be claimed as a credit on the estate's income tax return. Amending 2012 tax return Likewise, 80% of wages must be reported by the debtor and 80% of the income tax withheld must be claimed as a credit on the debtor's income tax return. Amending 2012 tax return See IRC section 31(a). Amending 2012 tax return   If information returns are issued to the debtor for gross income, gross proceeds, or other reportable payments that should have been reported to the bankruptcy estate, the debtor-in-possession or trustee must allocate the improperly reported income in a reasonable manner between the debtor and the estate. Amending 2012 tax return In general, the allocation must ensure that any income and income tax withheld attributable to the post-petition period is reported on the estate's return, and any income and income tax withheld attributable to the pre-petition period is reported on the debtor's return. Amending 2012 tax return    IRS Notice 2006-83 requires the debtor to attach a statement to his or her individual income tax return (Form 1040) stating that the return is filed subject to a chapter 11 bankruptcy case. Amending 2012 tax return The statement must also: Show the allocations of income and income tax withheld, Describe the method used to allocate income and income tax withheld, and List the filing date of the bankruptcy case, the bankruptcy court in which the case is pending, the bankruptcy court case number, and the bankruptcy estate's EIN. Amending 2012 tax return Note. Amending 2012 tax return The debtor-in-possession or trustee must attach a similar statement to the bankruptcy estate's income tax return (Form 1041). Amending 2012 tax return   The model Notice 2006-83 Statement, shown above, may be used by debtors, debtors-in-possession, and trustees to satisfy the reporting requirement. Amending 2012 tax return Self-employment taxes in individual chapter 11 cases. Amending 2012 tax return   IRC section 1401 imposes a tax upon the self-employment income, that is, the net earnings from self-employment of an individual. Amending 2012 tax return Net earnings from self-employment are equal to the gross income derived by an individual from any trade or business carried on by such individual, less deductions attributable to the business. Amending 2012 tax return   Neither section 1115 of the Bankruptcy Code nor IRC section 1398 addresses the application of self-employment tax to the post-petition earnings of the individual debtor. Amending 2012 tax return Therefore, if the debtor continues to derive gross income from the performance of services as a self-employed individual after the commencement of the bankruptcy case, the debtor must continue to report the debtor's self-employment income on Schedule SE (Form 1040) of the debtor's income tax return. Amending 2012 tax return This schedule includes self-employment income earned post-petition and the attributable deductions. Amending 2012 tax return The debtor must pay any self-employment tax imposed by IRC section 1401. Amending 2012 tax return Employment taxes and employer's obligation to file Form W-2 in individual chapter 11 cases. Amending 2012 tax return   In chapter 11 cases, post-petition wages earned by a debtor are generally treated as gross income of the estate. Amending 2012 tax return However, section 1115 of the Bankruptcy Code (11 U. Amending 2012 tax return S. Amending 2012 tax return C. Amending 2012 tax return section 1115) does not affect the determination of what are deemed wages for Federal Insurance Contributions Act (FICA) tax, Federal Unemployment Tax Act (FUTA) tax, or Federal Income Tax Withholding purposes. Amending 2012 tax return See Notice 2006-83. Amending 2012 tax return   The reporting and withholding obligations of a debtor's employer also do not change. Amending 2012 tax return An employer should continue to report the wages and tax withholding on a Form W-2 issued under the debtor's name and social security number. Amending 2012 tax return Notice to persons required to file information returns (other than Form W-2, Wage and Tax Statement) in individual chapter 11 cases. Amending 2012 tax return   Within a reasonable time after the commencement of a chapter 11 bankruptcy case, the trustee or debtor-in-possession should provide notification of the bankruptcy estate's EIN to all persons (or entities) that are required to file information returns for the bankruptcy estate's gross income, gross proceeds, or other types of reportable payments. Amending 2012 tax return See IRC section 6109(a)(2). Amending 2012 tax return As these payments are the property of the estate under section 1115 of the Bankruptcy Code, the payors should report the gross income, gross proceeds, or other reportable payments on the appropriate information return using the estate's name and EIN as required under the IRC and regulations (see IRC sections 6041 through 6049). Amending 2012 tax return   The trustee or debtor-in-possession should not, however, provide the EIN to a person (or entity) filing Form W-2 reporting the debtor's wages or other compensation, as section 1115 of the Bankruptcy Code does not affect the determination of what constitutes wages for purposes of federal income tax withholding or FICA. Amending 2012 tax return See Notice 2006-83. Amending 2012 tax return An employer should continue to report all wage income and tax withholding, both pre-petition and post-petition, on a Form W-2 to the debtor under the debtor's social security number. Amending 2012 tax return   The debtor in a chapter 11 case is not required to file a new Form W-4 with an employer solely because the debtor filed a chapter 11 case and the post-petition wages are includible in the estate's income and not the debtor's income. Amending 2012 tax return However, a new Form W-4 may be necessary if the debtor is no longer entitled to claim the same number of allowances previously claimed because certain deductions or credits now belong to the estate. Amending 2012 tax return See Employment Tax Regulations section 31. Amending 2012 tax return 3402(f)(2)-1. Amending 2012 tax return Additionally, the debtor may wish to file a new Form W-4 to increase the income tax withheld from post-petition wages allocated to the estate to avoid having to make estimated tax payments for the estate. Amending 2012 tax return See IRC section 6654(a). Amending 2012 tax return Notice required in converted and dismissed cases. Amending 2012 tax return   When a chapter 11 bankruptcy case is closed, dismissed, or converted to a chapter 12 or 13 case, the bankruptcy estate ends as a separate taxable entity. Amending 2012 tax return The debtor should, within a reasonable time, send notice of such event to the persons (or entities) previously notified of the bankruptcy case. Amending 2012 tax return This helps to ensure that gross income, proceeds, and other reportable payments realized after the event are reported to the debtor under the correct TIN rather than to the estate. Amending 2012 tax return   When a chapter 11 case is converted to a chapter 7 case, the bankruptcy estate will continue to exist as a separate taxable entity. Amending 2012 tax return Gross income (other than post-conversion income from the debtor's services), gross proceeds, or other reportable payments should continue to be reported to the estate if they are property of the chapter 7 estate. Amending 2012 tax return However, income from services performed by the debtor after conversion of the case to chapter 7 is not property of the chapter 7 estate. Amending 2012 tax return After the conversion, the debtor should notify payors required to report the debtor's nonemployee compensation that compensation earned after the conversion should be reported using the debtor's name and TIN, not the estate's name and EIN. Amending 2012 tax return Employment taxes. Amending 2012 tax return   The trustee or debtor-in-possession must withhold income and social security taxes and file employment tax returns for any wages paid by the trustee or debtor, including wage claims paid as administrative expenses. Amending 2012 tax return See Publication 15, Circular E, Employer's Tax Guide, for details on employer tax responsibilities. Amending 2012 tax return   The trustee also has the duty to prepare and file Forms W-2 for wage claims paid by the trustee, regardless of whether the claims accrued before or during bankruptcy. Amending 2012 tax return For a further discussion of employment taxes, see Employment Taxes, later. Amending 2012 tax return Notice 2006-83 Statement Pending Bankruptcy Case The taxpayer, , filed a bankruptcy petition under chapter 11 of the Bankruptcy Code in the bankruptcy court for the District of . Amending 2012 tax return The bankruptcy court case number is . Amending 2012 tax return Gross income, and withheld federal income tax, reported on Form W-2, Forms 1099, Schedule K-1, and other information returns received under the taxpayer's name and social security number (or other taxpayer identification number) are allocated between the taxpayer's TIN and the bankruptcy estate's EIN as follows, using [describe allocation method]:. Amending 2012 tax return   Year Taxpayer   Estate 1. Amending 2012 tax return Form W-2, Payor: $   $     Withheld income tax shown on Form W-2 $   $   2. Amending 2012 tax return Form 1099-INT Payor: $   $     Withheld income tax (if any) shown on Form 1099-INT $   $   3. Amending 2012 tax return Form 1099-DIV Payor: $   $     Withheld income tax (if any) shown on Form 1099-DIV $   $   4. Amending 2012 tax return Form 1099-MISC Payor: $   $     Withheld income tax (if any) shown on Form 1099-MISC $   $   Bankruptcy Estate Tax Return Filing Requirements and Payment of Tax Due Filing Requirements Filing threshold. Amending 2012 tax return   If the bankruptcy estate has gross income that meets or exceeds the minimum amount required for filing, the trustee or debtor-in-possession must file an income tax return on Form 1041. Amending 2012 tax return This amount is equal to the sum of the personal exemption amount plus the basic standard deduction for a married individual filing separately. Amending 2012 tax return   For 2012, the threshold filing amount for a bankruptcy estate is $9,750 (the sum of the $3,800 personal exemption plus the $5,950 standard deduction for married individuals filing separately). Amending 2012 tax return   These amounts are generally adjusted annually. Amending 2012 tax return See the present year Form 1041 Instructions at www. Amending 2012 tax return irs. Amending 2012 tax return gov/form1041 for the current dollar amounts. Amending 2012 tax return Accounting period. Amending 2012 tax return   A bankruptcy estate may have a fiscal year. Amending 2012 tax return However, this period cannot be longer than 12 months. Amending 2012 tax return Change of accounting period. Amending 2012 tax return   The bankruptcy estate may change its accounting period (tax year) once without IRS approval. Amending 2012 tax return This rule allows the bankruptcy trustee to close the estate's tax year early, before the expected termination of the bankruptcy estate. Amending 2012 tax return The trustee can then file a return for the first short tax year to get a quick determination of the estate's tax liability. Amending 2012 tax return Employer identification number. Amending 2012 tax return   The trustee or debtor-in-possession must obtain an EIN for a bankruptcy estate. Amending 2012 tax return The trustee or debtor-in-possession uses this EIN on all tax returns filed for the bankruptcy estate with the IRS, including estimated tax returns. Amending 2012 tax return    The social security number of the individual debtor cannot be used as the EIN for the bankruptcy estate. Amending 2012 tax return   Obtain an EIN for a bankruptcy estate by applying: Online by clicking on the EIN link at www. Amending 2012 tax return irs. Amending 2012 tax return gov/businesses/small. Amending 2012 tax return The EIN is issued immediately once the application information is validated. Amending 2012 tax return By telephone at 1-800-829-4933 from 7:00 a. Amending 2012 tax return m. Amending 2012 tax return to 7:00 p. Amending 2012 tax return m. Amending 2012 tax return in the trustee's or debtor-in-possession's local time zone. Amending 2012 tax return Assistance provided to callers from Alaska and Hawaii will be based on the hours of operation in the Pacific time zone, or By mailing or faxing Form SS-4, Application for Employer Identification Number. Amending 2012 tax return   If the trustee or debtor-in-possession has not received the bankruptcy estate's EIN by the time the return is due, write “Applied for” and the date you applied in the space for the EIN. Amending 2012 tax return For more details, see Pub. Amending 2012 tax return 583, Starting a Business and Keeping Records. Amending 2012 tax return   Trustees representing ten or more bankruptcy estates (other than estates that will be filing employment or excise tax returns) may request a series or block of EINs. Amending 2012 tax return Figuring tax due. Amending 2012 tax return   The bankruptcy estate figures its taxable income the same way an individual figures taxable income. Amending 2012 tax return However, the estate uses the tax rates for a married individual filing separately to calculate the tax on its taxable income. Amending 2012 tax return The estate is entitled to one personal exemption and may either itemize deductions or take the basic standard deduction for a married individual filing a separate return. Amending 2012 tax return The estate cannot take the higher standard deduction allowed for married persons filing separately who are 65 or older or blind. Amending 2012 tax return Tax rate schedule. Amending 2012 tax return The tax on income for bankruptcy estates is calculated using the tax rate schedule for Married Individuals Filing Separately not the Estates and Trusts tax rate schedule. Amending 2012 tax return When to file. Amending 2012 tax return   Calendar year bankruptcy estates must file Form 1041 by April 15th. Amending 2012 tax return Fiscal year bankruptcy estates must file on or before the 15th day of the 4th month following the close of its tax year. Amending 2012 tax return For example, an estate that has a tax year that ends on June 30th must file Form 1041 by October 15th of the tax year. Amending 2012 tax return If the due date falls on a Saturday, Sunday, or legal holiday, file on the next business day. Amending 2012 tax return Note. Amending 2012 tax return The bankruptcy estate is allowed an automatic 6-month extension of time to file the bankruptcy estate tax return upon filing the required application, Form 7004, Application for Automatic Extension of Time To File Certain Business Income Tax, Information, and Other Returns. Amending 2012 tax return Transmittal for Form 1040. Amending 2012 tax return   Form 1041 is used as a transmittal for Form 1040. Amending 2012 tax return If a return is required, the trustee or debtor-in-possession must complete the identification area at the top of Form 1041 and indicate the chapter under which the bankruptcy estate filed, either chapter 7 or chapter 11. Amending 2012 tax return   Prepare the bankruptcy estate's return by completing Form 1040. Amending 2012 tax return In the top margin of Form 1040, write “Attachment to Form 1041 —DO NOT DETACH. Amending 2012 tax return ” Then, attach Form 1040 to the Form 1041 transmittal. Amending 2012 tax return Enter the tax and payment amounts on lines 23 through 29 of Form 1041, then sign and date the return. Amending 2012 tax return An example of a bankruptcy estate's tax return is prepared below. Amending 2012 tax return Note. Amending 2012 tax return The filing of the bankruptcy estate's tax return does not relieve a debtor from the requirement to file his or her individual tax return on Form 1040. Amending 2012 tax return Payment of Tax Due Payment methods. Amending 2012 tax return   Payment of tax due may be made by check or money order or by credit or debit card. Amending 2012 tax return For information on how to make payments electronically by credit or debit card, go to irs. Amending 2012 tax return gov/e-pay. Amending 2012 tax return      Payments may also be made electronically using the Electronic Federal Tax Payment System (EFTPS), a free tax payment system that allows you to make payments online or by phone. Amending 2012 tax return To enroll in EFTPS, go to eftps. Amending 2012 tax return gov or call 1-800-555-4477. Amending 2012 tax return For more information see Publication 966, Electronic Federal Tax Payment System: A Guide to Getting Started. Amending 2012 tax return Payment voucher – Form 1041-V. Amending 2012 tax return   Form 1041-V accompanies payments made by check or money order for Form 1041. Amending 2012 tax return The voucher includes information about the bankruptcy estate, including the name of the bankruptcy estate, trustee, EIN, and amount due. Amending 2012 tax return Using Form 1041-V assists the IRS in processing the payment more accurately and efficiently. Amending 2012 tax return We recommend the use of Form 1041-V; however, there is no penalty if the voucher is not used. Amending 2012 tax return Estimated tax – Form 1041-ES. Amending 2012 tax return   In most cases, the trustee or debtor-in-possession must pay any required estimated tax due for the bankruptcy estate. Amending 2012 tax return See the Form 1041-ES Instructions for information on the minimum threshold amount required for filing Form 1041-ES, paying the estimated tax, and exceptions to filing. Amending 2012 tax return Employment Taxes The trustee or debtor-in-possession must withhold income and social security taxes and file employment tax returns for any wages paid by the trustee or debtor, including wage claims paid as administrative expenses. Amending 2012 tax return Until these employment taxes are deposited as required by the IRC, they should be set aside in a separate bank account to ensure that funds are available to satisfy the liability. Amending 2012 tax return If the employment taxes are not paid as required, the trustee may be held personally liable for payment of the taxes. Amending 2012 tax return   See Publication 15, (Circular E), Employer's Tax Guide, for details on employer tax responsibilities. Amending 2012 tax return Also see IRS Notice 931, Deposit Requirements for Employment Taxes, for details on the deposit rules, including the requirement that federal employment tax deposits be made by electronic funds transfer. Amending 2012 tax return The trustee also has a duty to prepare and file Forms W-2, Wage and Tax Statement, for wage claims paid by the trustee, regardless of whether the claims accrued before or during bankruptcy. Amending 2012 tax return If the debtor fails to prepare and file Forms W-2 for wages paid before bankruptcy, the trustee should instruct the employees to file a Form 4852, Substitute for Form W-2, Wage and Tax Statement, or Form 1099-R, Distributions From Pensions, Annuities, Retirement or Profit-Sharing Plans, IRAs, Insurance Contracts, etc. Amending 2012 tax return , with their individual income tax returns. Amending 2012 tax return Tax Return Example – Form 1041 This publication is not revised annually. Amending 2012 tax return Future changes to the forms and their instructions may not be reflected in this example. Amending 2012 tax return Note. Amending 2012 tax return The following return was prepared for tax year 2011. Amending 2012 tax return In 2011, the threshold filing amount for a bankruptcy estate was $9,500 (the sum of the $3,700 personal exemption plus the $5,800 standard deduction for married individuals filing separately). Amending 2012 tax return Facts and circumstances. Amending 2012 tax return   On December 15, 2010, Thomas Smith filed a bankruptcy petition under chapter 7. Amending 2012 tax return Joan Black was appointed trustee to administer the bankruptcy estate and to distribute the assets. Amending 2012 tax return   The estate received the following assets from Mr. Amending 2012 tax return Smith: A $100,000 certificate of deposit, Commercial rental real estate with a fair market value (FMV) of $280,000, and His personal residence with an FMV of $200,000. Amending 2012 tax return   Also, the estate received a $251,500 capital loss carryover. Amending 2012 tax return   Mr. Amending 2012 tax return Smith's bankruptcy case was closed on December 31, 2011. Amending 2012 tax return During 2011, Mr. Amending 2012 tax return Smith was relieved of $70,000 of debt by the bankruptcy court. Amending 2012 tax return The estate chose a calendar year as its tax year. Amending 2012 tax return Joan, the trustee, reviews the estate's transactions and reports the taxable events on the estate's final return. Amending 2012 tax return Schedule B (Form 1040). Amending 2012 tax return    The certificate of deposit earned $5,500 of interest during 2011. Amending 2012 tax return Joan reports this interest on Schedule B. Amending 2012 tax return She completes this schedule and enters the result on Form 1040. Amending 2012 tax return Form 4562. Amending 2012 tax return   Joan enters the depreciation allowed on Form 4562. Amending 2012 tax return She completes the form and enters the result on Schedule E. Amending 2012 tax return Schedule E (Form 1040). Amending 2012 tax return   The commercial real estate was rented through the date of sale. Amending 2012 tax return Joan reports the income and expenses on Schedule E. Amending 2012 tax return She enters the net income on Form 1040. Amending 2012 tax return Form 4797. Amending 2012 tax return   The commercial real estate was sold on July 1, 2011, for $280,000. Amending 2012 tax return The property was purchased in 2001 at a cost of $250,000. Amending 2012 tax return The total depreciation allowable as of the date of sale was $120,000. Amending 2012 tax return Additionally, $25,000 of selling expenses were incurred. Amending 2012 tax return Joan reports the gain or loss from the sale on Form 4797. Amending 2012 tax return She completes the form and enters the gain on Schedule D (Form 1040). Amending 2012 tax return   Mr. Amending 2012 tax return Smith's former residence was sold on September 30, 2011. Amending 2012 tax return The sale price was $200,000, the selling expenses were $20,000, and his adjusted basis was $130,000. Amending 2012 tax return This sale is excluded from gross income under IRC section 121. Amending 2012 tax return Note. Amending 2012 tax return Gains from the sale of personal residences are excluded from gross income up to $250,000 under IRC section 121 ($500,000 for married couples filing a joint return). Amending 2012 tax return Bankruptcy estates succeed to this exclusion at the commencement of the case. Amending 2012 tax return See Regulation section 1. Amending 2012 tax return 1398-3. Amending 2012 tax return Schedule D (Form 1040). Amending 2012 tax return   Joan completes Schedule D, taking into account the $250,000 capital loss carryover from 2010 ($251,500 transferred to the estate minus $1,500 used on the estate's 2010 return). Amending 2012 tax return She enters the results on Form 1040. Amending 2012 tax return Form 1040, page 1. Amending 2012 tax return   Joan completes page 1 of the Form 1040 and enters the adjusted gross income on the first line of Form 1040, page 2. Amending 2012 tax return Schedule A (Form 1040). Amending 2012 tax return   During 2011, the estate paid mortgage interest and real property tax on Mr. Amending 2012 tax return Smith's former residence. Amending 2012 tax return It also paid income tax to the state. Amending 2012 tax return Joan enters the mortgage interest, real estate tax, and income tax on Schedule A. Amending 2012 tax return Also, she reports the bankruptcy estate's administrative expenses as a miscellaneous deduction not subject to the 2% floor on miscellaneous itemized deductions. Amending 2012 tax return She completes the Schedule A and enters the result on page 2 of Form 1040. Amending 2012 tax return Form 1040, page 2. Amending 2012 tax return   Joan determines the estate's taxable income and figures its tax using the tax rate schedule for married filing separately. Amending 2012 tax return She then enters the estate's estimated tax payments and figures the amount the estate still owes. Amending 2012 tax return Form 982. Amending 2012 tax return   Joan completes the Schedule D Tax Worksheet to figure the capital loss carryover. Amending 2012 tax return Because $70,000 of debt was canceled, Joan must reduce the tax attributes of the estate by the amount of the canceled debt. Amending 2012 tax return See Debt Cancellation, later. Amending 2012 tax return After the bankruptcy case ends, Mr. Amending 2012 tax return Smith will assume the estate's tax attributes. Amending 2012 tax return Mr. Amending 2012 tax return Smith will assume a capital loss carryover of $53,500 ($123,500 carryover minus the $70,000 attribute reduction) for use in preparation of his individual tax return (Form 1040). Amending 2012 tax return Note. Amending 2012 tax return If the bankruptcy estate had continued, the capital loss carryover would be available to the bankruptcy estate for the 2012 tax year. Amending 2012 tax return Form 1041. Amending 2012 tax return   Joan enters the total tax, estimated tax payments, and tax due from Form 1040 on Form 1041. Amending 2012 tax return She completes the identification area at the top of Form 1041, then signs and dates the return as the trustee on behalf of the bankruptcy estate. Amending 2012 tax return This image is too large to be displayed in the current screen. Amending 2012 tax return Please click the link to view the image. Amending 2012 tax return Sample Form 1040 - page 1 This image is too large to be displayed in the current screen. Amending 2012 tax return Please click the link to view the image. Amending 2012 tax return Sample Form 1040 - page 2 This image is too large to be displayed in the current screen. Amending 2012 tax return Please click the link to view the image. Amending 2012 tax return Sample Schedule A This image is too large to be displayed in the current screen. Amending 2012 tax return Please click the link to view the image. Amending 2012 tax return Sample Schedule B This image is too large to be displayed in the current screen. Amending 2012 tax return Please click the link to view the image. Amending 2012 tax return Sample Schedule D This image is too large to be displayed in the current screen. Amending 2012 tax return Please click the link to view the image. Amending 2012 tax return Sample Schedule E This image is too large to be displayed in the current screen. Amending 2012 tax return Please click the link to view the image. Amending 2012 tax return Sample Form 4797 - page 1 This image is too large to be displayed in the current screen. Amending 2012 tax return Please click the link to view the image. Amending 2012 tax return Sample Form 2119 This image is too large to be displayed in the current screen. Amending 2012 tax return Please click the link to view the image. Amending 2012 tax return Sample Form 4797 - page 2 This image is too large to be displayed in the current screen. Amending 2012 tax return Please click the link to view the image. Amending 2012 tax return Sample Form 4562 This image is too large to be displayed in the current screen. Amending 2012 tax return Please click the link to view the image. Amending 2012 tax return Sample Capital Loss Carryover Worksheet This image is too large to be displayed in the current screen. Amending 2012 tax return Please click the link to view the image. Amending 2012 tax return Sample Form 982 Capital Loss Carryover Worksheet—Lines 6 and 14 Use this worksheet to figure your capital loss carryovers from 2010 to 2011 if your 2010 Schedule D, line 21, is a loss and (a) that loss is a smaller loss than the loss on your 2010 Schedule D, line 16, or (b) the amount on your 2010 Form 1040, line 41 (or your 2010 Form 1040NR, line 38, if applicable) is less than zero. Amending 2012 tax return Otherwise, you do not have any carryovers. Amending 2012 tax return 1. Amending 2012 tax return Enter the amount from your 2010 Form 1040, line 41, or Form 1040NR, line 38. Amending 2012 tax return If a loss, enclose the amount in parentheses 1. Amending 2012 tax return 19,880   2. Amending 2012 tax return Enter the loss from your 2010 Schedule D, line 21, as a positive amount 2. Amending 2012 tax return 1,500   3. Amending 2012 tax return Combine lines 1 and 2. Amending 2012 tax return If zero or less, enter -0- 3. Amending 2012 tax return 21,380   4. Amending 2012 tax return Enter the smaller of line 2 or line 3 4. Amending 2012 tax return 1,500     If line 7 of your 2010 Schedule D is a loss, go to line 5; otherwise, enter -0- on line 5 and go to line 9. Amending 2012 tax return       5. Amending 2012 tax return Enter the loss from your 2010 Schedule D, line 7, as a positive amount 5. Amending 2012 tax return 0   6. Amending 2012 tax return Enter any gain from your 2010 Schedule D, line 15. Amending 2012 tax return If a loss, enter -0- 6. Amending 2012 tax return         7. Amending 2012 tax return Add lines 4 and 6 7. Amending 2012 tax return 1,500   8. Amending 2012 tax return Short-term capital loss carryover for 2011. Amending 2012 tax return Subtract line 7 from line 5. Amending 2012 tax return If zero or less, enter -0-. Amending 2012 tax return If more than zero, also enter this amount on Schedule D, line 6 8. Amending 2012 tax return 0     If line 15 of your 2010 Schedule D is a loss, go to line 9; otherwise, skip lines 9 through 13. Amending 2012 tax return       9. Amending 2012 tax return Enter the loss from your 2010 Schedule D, line 15, as a positive amount 9. Amending 2012 tax return 251,500   10. Amending 2012 tax return Enter any gain from your 2010 Schedule D, line 7. Amending 2012 tax return If a loss, enter -0- 10. Amending 2012 tax return 0       11. Amending 2012 tax return Subtract line 5 from line 4. Amending 2012 tax return If zero or less, enter -0- 11. Amending 2012 tax return 1,500       12. Amending 2012 tax return Add lines 10 and 11 12. Amending 2012 tax return 1,500   13. Amending 2012 tax return Long-term capital loss carryover for 2011. Amending 2012 tax return Subtract line 12 from line 9. Amending 2012 tax return If zero or less, enter -0-. Amending 2012 tax return If more than zero, also enter this amount on Schedule D, line 14 13. Amending 2012 tax return 250,000                       Partnerships and Corporations Filing Requirements A separate taxable estate is not created when a partnership or corporation files a bankruptcy petition and their tax return filing requirements do not change. Amending 2012 tax return The debtor-in-possession, court appointed trustee, assignee, or receiver must file the entity's income tax returns on Form 1065, Form 1120 or, Form 1120S. Amending 2012 tax return In cases where a trustee or receiver is not appointed, the debtor-in-possession continues business operations and remains in possession of the business' property during the bankruptcy proceeding. Amending 2012 tax return The debtor-in-possession, rather than the general partner of a partnership or corporate officer of a corporation, assumes the fiduciary responsibility to file the business' tax returns. Amending 2012 tax return Partnerships The filing requirements for a partnership in a bankruptcy proceeding do not change. Amending 2012 tax return However, the responsibility to file the required returns becomes that of the court appointed trustee, receiver, or debtor-in-possession. Amending 2012 tax return A partnership's debt that is canceled as a result of the bankruptcy proceeding is not included in the partnership's income. Amending 2012 tax return However, It may or may not be included in the individual partners' income. Amending 2012 tax return See Partnerships, below under Debt Cancellation. Amending 2012 tax return Corporations The filing requirements for a corporation in a bankruptcy proceeding also do not change. Amending 2012 tax return A bankruptcy trustee, receiver, or debtor-in-possession, having possession of or holding title to substantially all of the property or business operations of the debtor corporation, must file the debtor's corporate income tax return for the tax year. Amending 2012 tax return The following discussion only highlights bankruptcy tax rules applying to corporations. Amending 2012 tax return The complex details of corporate bankruptcy reorganizations are beyond the scope of this publication. Amending 2012 tax return Therefore, you may wish to seek the help of a professional tax advisor. Amending 2012 tax return See Corporations under Debt Cancellation for information about a corporation's debt canceled in a bankruptcy proceeding. Amending 2012 tax return Tax-Free Reorganizations The tax-free reorganization provisions of the Internal Revenue Code allow a corporation to transfer all or part of its assets to another corporation in a bankruptcy under title 11 of the United States Code or in a similar case. Amending 2012 tax return However, under the reorganization plan, the stock or securities of the corporation to which the assets are transferred must be distributed in a transaction that qualifies under IRC section 354, 355, or 356. Amending 2012 tax return A “similar case” includes a receivership, foreclosure, or other similar proceeding in a federal or state court. Amending 2012 tax return In these cases, any party to the reorganization must be under the jurisdiction of the court and the transfer of assets under the plan of reorganization must be approved by the court. Amending 2012 tax return In a receivership, foreclosure, or similar proceeding before a federal or state agency involving certain financial institutions, the agency is treated as a court. Amending 2012 tax return Generally, IRC section 354 provides that no gain or loss is recognized if a corporation's stock is exchanged solely for stock or securities in a corporation that is a party to the reorganization under a qualifying reorganization plan. Amending 2012 tax return In this case, shareholders in the bankrupt corporation would recognize no gain or loss if they exchange their stock solely for stock or securities of the corporation acquiring the bankrupt corporation's assets. Amending 2012 tax return IRC section 355 generally provides that no gain or loss is recognized by a shareholder if a corporation distributes solely stock or securities of another corporation that the distributing corporation controls immediately before the distribution. Amending 2012 tax return IRC section 356 allows tax-free exchanges in situations that would qualify under IRC section 354 or 355, except that other property or money, in addition to the permitted stock or securities, is received by the shareholder. Amending 2012 tax return In this situation, gain is recognized by the shareholder, but only to the extent of the money and the FMV of the other property received. Amending 2012 tax return No loss is recognized in this situation. Amending 2012 tax return Exemption from tax return filing A trustee, receiver, or assignee of a corporation in bankruptcy, receivership, or in the process of dissolving, may apply to the IRS for relief from filing federal income tax returns for the corporation. Amending 2012 tax return To qualify, the corporation must have ceased business operations and have no assets nor income for the tax year. Amending 2012 tax return The exemption request must be submitted to the local IRS Insolvency Office handling the case. Amending 2012 tax return The request to the IRS must include the name, address, and EIN of the corporation and a statement of the facts (with any supporting documents) showing why the debtor needs relief from the filing requirements. Amending 2012 tax return The request must also include the following statement: “I hereby request relief from filing federal income tax returns for tax years ending _____ for the above-named corporation and declare under penalties of perjury that to the best of my knowledge and belief the information contained herein is correct. Amending 2012 tax return ” The statement must be signed by the trustee, receiver or assignee. Amending 2012 tax return The statement must also include notice of appointment to act on behalf of the corporation (this is not required for bankruptcy trustees or debtors-in-possession). Amending 2012 tax return The IRS will act on your request within 90 days. Amending 2012 tax return Disclosure of return information to trustee. Amending 2012 tax return   Upon written request, current and earlier returns of the debtor are open to inspection by or disclosure to the trustee or receiver. Amending 2012 tax return However, in bankruptcy cases other than those of individuals filing under chapter 7 or 11, such as a corporate bankruptcy, the IRS must find that the trustee has a material interest that will be affected by information on the return. Amending 2012 tax return Material interest is generally defined as a financial or monetary interest. Amending 2012 tax return Material interest is not limited to the trustee's responsibility to file a return on behalf of the bankruptcy estate. Amending 2012 tax return Receiverships Court-established receiverships sometimes arise in connection with bankruptcies. Amending 2012 tax return Certain court-established receiverships should be treated as qualified settlement funds ("QSFs") for purposes of IRC section 468B and the underlying Treasury Regulations. Amending 2012 tax return QSFs are required to file an annual income tax return, Form 1120-SF, U. Amending 2012 tax return S. Amending 2012 tax return Income Tax Return for Settlement Funds. Amending 2012 tax return More information about QSFs may be found in Treasury Regulation sections 1. Amending 2012 tax return 468B-1 through -5. Amending 2012 tax return Determination of Tax The determination of the proper amount of tax due for a tax year begins with the bankruptcy estate's filing of Form 1041, and the individual debtor's filing of Form 1040, or for bankrupt entities filing Forms 1065, 1120, or 1120S. Amending 2012 tax return After a return is filed, the IRS will either accept the return as filed or select the return for examination. Amending 2012 tax return Under examination the IRS may redetermine the tax liability shown on the return. Amending 2012 tax return If the bankruptcy estate or debtor disagrees with the redetermined tax due, the tax as redetermined by the IRS may be contested in the bankruptcy court, or Tax Court, as applicable. Amending 2012 tax return See Court Jurisdiction over Tax Matters, later. Amending 2012 tax return Prompt Determination Requests Pursuant to Rev. Amending 2012 tax return Proc. Amending 2012 tax return 2006-24, 2006-22 I. Amending 2012 tax return R. Amending 2012 tax return B. Amending 2012 tax return 943, www. Amending 2012 tax return irs. Amending 2012 tax return gov/irb/2006-22_IRB/ar12, as modified by Announcement 2011-77, www. Amending 2012 tax return irs. Amending 2012 tax return gov/irb/2011-51_IRB/ar13, the bankruptcy trustee may request a determination of any unpaid tax liability incurred by the bankruptcy estate during the administration of the case, by filing a tax return and a request for such determination with the IRS. Amending 2012 tax return Unless the return is fraudulent or contains a material misrepresentation, the estate, trustee, debtor, and any successor to the debtor are discharged from liability upon payment of the tax: As determined by the IRS, As determined by the bankruptcy court, after completion of the IRS examination, or As shown on the return, if the IRS does not: Notify the trustee within 60 days after the request for determination that the return has been selected for examination, or Complete the examination and notify the trustee of any tax due within 180 days after the request (or any additional time permitted by the bankruptcy court). Amending 2012 tax return Making the request for determination. Amending 2012 tax return   As detailed in Rev. Amending 2012 tax return Proc. Amending 2012 tax return 2006-24, as modified by Announcement 2011-77, to request a prompt determination of any unpaid tax liability of the estate, the trustee must file a signed written request, in duplicate, with the Internal Revenue Service, Centralized Insolvency Operation, P. Amending 2012 tax return O. Amending 2012 tax return Box 7346, Philadelphia, PA 19101–7346 (marked “Request for Prompt Determination”). Amending 2012 tax return   The request must be submitted in duplicate and must be executed under penalties of perjury. Amending 2012 tax return In addition, the trustee must submit along with the request an exact copy of the return(s) filed by the trustee with the IRS for each completed tax period. Amending 2012 tax return The request must contain the following information: A statement indicating that it is a Request for Prompt Determination of Tax Liability, specifying the type of return and tax period for each return being filed. Amending 2012 tax return The name and location of the office where the return was filed. Amending 2012 tax return The name of the debtor. Amending 2012 tax return Debtor's social security number, TIN, or EIN. Amending 2012 tax return Type of bankruptcy estate. Amending 2012 tax return Bankruptcy case number. Amending 2012 tax return Court where the bankruptcy case is pending. Amending 2012 tax return   The copy of the return(s) submitted with the request must be an exact copy of a valid return. Amending 2012 tax return A request for prompt determination will be considered incomplete and returned to the trustee if it is filed with a copy of a document that does not qualify as a valid return. Amending 2012 tax return    To qualify as valid, a return must meet certain criteria, including a signature under penalties of perjury. Amending 2012 tax return A document filed by the trustee with the jurat stricken, deleted, or modified will not qualify as a valid return. Amending 2012 tax return Examination of return. Amending 2012 tax return   The IRS will notify the trustee within 60 days from receipt of the request whether the return filed by the trustee has been selected for examination or has been accepted as filed. Amending 2012 tax return If the return is selected for examination, it will be examined as soon as possible. Amending 2012 tax return The IRS will notify the trustee of any tax due within 180 days from receipt of the application or within any additional time permitted by the bankruptcy court. Amending 2012 tax return   If a prompt determination request is incomplete, all the documents received by the IRS will be returned to the trustee by the assigned Field Insolvency Office with an explanation identifying the missing item(s) and instructions to re-file the request once corrected. Amending 2012 tax return   Once corrected, the request must be filed with the IRS at the Field Insolvency Office address specified in the correspondence accompanying the returned incomplete request. Amending 2012 tax return   In the case of an incomplete request submitted with a copy of an invalid return document, the trustee must file a valid original return with the appropriate IRS office and submit a copy of that return with the corrected request when the request is re-filed. Amending 2012 tax return Note. Amending 2012 tax return An incomplete request includes those submitted with a copy of a return form, the original of which does not qualify as a valid return. Amending 2012 tax return   The 60-day period to notify the trustee whether the return is accepted as filed or has been selected for examination does not begin to run until a complete request package is recei