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Online EIN: Frequently Asked Questions

If you are unfamiliar with the Online EIN application, you may find this section helpful in answering your questions.

Q. When can I use my Internet EIN to make tax payments or file returns?
A
. This EIN is your permanent number and can be used immediately for most of your business needs, including:

  • Opening a bank account
  • Applying for business licenses
  • Filing a tax return by mail

However, it will take up to two weeks before your EIN becomes part of the IRS's permanent records. You must wait until this occurs before you can:

  • File an electronic return
  • Make an electronic payment
  • Pass an IRS Taxpayer Identification Number (TIN) matching program

Q. Sometimes I don't know all the information required on the application. Why do I have to complete the application online when I can send in paper or fax with missing information?
A. When paper or faxed Forms SS-4 are received by the IRS with information missing, additional time is needed to process that application, delaying the issuance of your Employer Identification Number. Applicants can get their EIN much quicker if all the required information is completed.

Q. The legal name of my business includes the symbol for a dollar sign ($). Does the IRS accept symbols as part of a business name?
A.
No. The only characters IRS systems can accept in a business name are: 1) alpha (A-Z), 2) numeric (0-9), 3) hyphen (-), and 4) ampersand (&). If the legal name of your business includes anything other than those listed above, you will need to decide how best to enter your business name into the online EIN application. Following are some suggestions:

If your legal name contains: Then:
A symbol or character, such as a “plus” symbol (+), “at” symbol (@), or a period (.) 1) Spell out the symbol or 2) drop the symbol and leave a space. Example: If the legal name of your business is Jones.Com, then input it as Jones Dot Com or Jones Com
Backward (\) or forward (/) slash Substitute a hyphen (-)
Apostrophe (') Drop the apostrophe and do not leave a space.

Q. What do I do if my entire address won't fit on your address line on the Internet application?
A
. IRS systems only allow 35 characters on the street address line. If your address does not fit in 35 characters, please make sure you provide the most essential address information (i.e., apartment numbers, suite numbers, etc). We’ll then validate the address you’ve provided with the United States Postal Service’s database and offer you an opportunity to make any changes to the address, if necessary.

Q. Are any entity types excluded from applying for an EIN over the Internet?
A
.  No. All customers whose principal business, office or agency, or legal residence (in the case of an individual) is located in the United States or in one of the U.S. Territories can apply for an EIN online. The principal officer, general partner, grantor, owner, trustor etc. must have a valid Taxpayer Identification Number (Social Security Number, Employer Identification Number, or Individual Taxpayer Identification Number) in order to use the online application.

If you were incorporated outside of the United States or the U.S. territories, you cannot apply for an EIN online. Please call us at (267) 941-1099 (this is not a toll free number) between the hours of 6:00 a.m. to 11:00 p.m. Eastern Time.

Q. What if I forget the number I obtained over the Internet?
A.
IRS records will be updated immediately with your EIN. Simply call (800) 829-4933 and select EIN from the list of options. Once connected with an IRS employee, tell the assistor you received an EIN from the Internet but can't remember it. The IRS employee will ask the necessary disclosure and security questions prior to providing the number.

Q. Do all the EINs obtained on the Internet start with 20, 26, 27, 45 or 46?
A.
Yes. The unique prefixes (20, 26, 27, 45 or 46) identify the EIN as a number issued via the Internet. Note: We cannot process your application online if the responsible party is an entity with an EIN previously obtained through the Internet. Please use one of our other methods to apply. See How to Apply for an EIN. We apologize for any inconvenience this may cause you.

Q. Do I need a certain computer or software to obtain an EIN over the Internet?
A
. No. You can go to IRS.gov through any computer that has Internet access. You should have a current Internet browser, which will allow you to view and complete the application process. However, you will need Adobe Reader installed if you would like to receive a confirmation letter online.

Q. Now that I have my EIN, when can I use it to make tax deposits?
A.
Based on the information you submit on your application or if you indicate you will have employees, you will automatically be enrolled in the Electronic Federal Tax Payment System—EFTPS—so you can make all your deposits online or by phone. Within a few days you will receive by mail your EFTPS enrollment confirmation, as well as a Personal Identification Number (PIN) and complete instructions for using EFTPS. You will need to wait until you receive your EFTPS information in the mail before you can make a payment electronically. Once you receive your EFTPS Confirmation Package, you can begin making EFTPS payments.

EFTPS is a service provided free by the U.S. Department of the Treasury that allows individual and business taxpayers to initiate all Federal tax payments using the Internet or phone. You can input your tax payments 24 hours a day, 7 days a week using a secure government website or an automated voice response phone system. Refer to Publication 4275, EFTPS Express Enrollment for New Businesses for additional information about EFTPS.

Page Last Reviewed or Updated: 03-Jan-2014

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Back taxes Publication 3920 - Main Contents Table of Contents Tax ForgivenessYears Eligible for Tax Forgiveness Amount of Tax Forgiven Refund of Taxes Paid How To Claim Tax Forgiveness Payments to SurvivorsSeptember 11th Victim Compensation Fund of 2001 Qualified Disaster Relief Payments Disability Payments Death Benefits Canceled Debt Payments to Survivors of Public Safety Officers Postponed Tax DeadlinesCovered area. Back taxes Disaster Area Losses Estate Tax Reduction Structured Settlement Factoring Transactions Illustrated Worksheets B and C Additional Worksheets How To Get Tax Help Tax Forgiveness The IRS will forgive the federal income tax liabilities of decedents who died as a result of the Oklahoma City attack, September 11 attacks, and anthrax attacks. Back taxes Income tax is forgiven for these decedents whether they were killed in an attack or in rescue or recovery operations. Back taxes Any forgiven tax liability owed to the IRS will not have to be paid. Back taxes Any forgiven tax liability that has already been paid will be refunded. Back taxes (See Refund of Taxes Paid, later. Back taxes ) To determine the amount of tax to be forgiven, read Years Eligible for Tax Forgiveness first. Back taxes Then read Amount of Tax Forgiven. Back taxes Decedents whose total forgiven tax liability for all eligible years is less than $10,000 are entitled to $10,000 minimum relief. Back taxes Even decedents who were not required to file tax returns for the eligible tax years are entitled to $10,000 minimum relief. Back taxes See Minimum Amount of Relief later under Amount of Tax Forgiven. Back taxes Years Eligible for Tax Forgiveness The following paragraphs explain which years are eligible for tax forgiveness. Back taxes Oklahoma City attack. Back taxes   For those who died from this attack, income tax is forgiven for 1994 and all later years up to and including the year of death. Back taxes Example 1. Back taxes A man was killed in the bombing of the federal building in Oklahoma City on April 19, 1995. Back taxes His income tax is forgiven for 1994 and 1995. Back taxes Example 2. Back taxes A woman was wounded while walking outside the federal building in Oklahoma City on April 19, 1995. Back taxes She subsequently died of her wounds in 1996. Back taxes Her income tax is forgiven for 1994, 1995, and 1996. Back taxes September 11 attacks and anthrax attacks. Back taxes   For those who die from these attacks, income tax is forgiven for 2000 and all later years up to and including the year of death. Back taxes Example 1. Back taxes A Pentagon employee died in the September 11 attack. Back taxes Her income tax is forgiven for 2000 and 2001. Back taxes Example 2. Back taxes A visitor to the World Trade Center died in 2002 of wounds he sustained in the September 11 attack. Back taxes His income tax liability is forgiven for 2000, 2001, and 2002. Back taxes Amount of Tax Forgiven The IRS will forgive the decedent's income tax liability for all years eligible for tax forgiveness. Back taxes On a joint return, only the decedent's part of the joint income tax liability is eligible for forgiveness. Back taxes To figure the tax to be forgiven, use the following worksheets. Back taxes Use Worksheet A for any eligible year the decedent filed a return as single, married filing separately, head of household, or qualifying widow(er). Back taxes Use Worksheet B for any eligible year the decedent filed a joint return. Back taxes See the illustrated Worksheet B near the end of this publication. Back taxes Do not complete Worksheet A or B if the decedent was not required to file tax returns for the eligible tax years. Back taxes Instead, complete Worksheet C and file a return for the decedent's last tax year. Back taxes See Minimum Amount of Relief, later. Back taxes If you need assistance, call the IRS at 1–866–562–5227 Monday through Friday during the following times. Back taxes In English–7 a. Back taxes m. Back taxes to 10 p. Back taxes m. Back taxes local time. Back taxes In Spanish–8 a. Back taxes m. Back taxes to 9:30 p. Back taxes m. Back taxes local time. Back taxes Both spouses died. Back taxes   If both spouses died as a result of a terrorist attack and they filed a joint return for an eligible tax year, fill out Worksheet B for each spouse for that year. Back taxes Do this to determine if each spouse qualifies for the minimum relief of $10,000 (discussed later under Minimum Amount of Relief). Back taxes If you are certain that neither spouse's total forgiven tax liability for all eligible years is less than $10,000, skip Worksheet B. Back taxes However, attach a computation of the forgiven tax liability to the final income tax return or amended tax return for each eligible year. Back taxes The forgiven tax liability is the total tax shown on the joint return minus the taxes listed in the instructions for line 4 of Worksheet B. Back taxes Residents of community property states. Back taxes   If the decedent was domiciled in a community property state and the spouse reported half the community income on a separate return, the surviving spouse can get a refund of taxes paid on his or her share of the decedent's income for the eligible years. Back taxes Also, all of the decedent's income taxes paid for the eligible years will be refunded to either the executor or administrator of the estate, or to the surviving spouse if there is no legal representative. Back taxes Worksheet B. Back taxes Figuring the Tax To Be Forgiven (For Decedents Who Filed a Joint Return)       (A) First Eligible Year (1994 or 2000) (B) Second Eligible Year (1995 or 2001) (C) Third Eligible Year (1996 or 2002) 1 Enter the years eligible for forgiveness. Back taxes 1       2 Enter the decedent's taxable income. Back taxes Figure taxable income as if a separate return had been filed. Back taxes See the instructions. Back taxes 2       3 Enter the decedent's total tax. Back taxes See the instructions. Back taxes 3       4 Enter the total, if any, of the decedent's taxes not eligible for forgiveness. Back taxes See the instructions. Back taxes 4       5 Subtract line 4 from line 3. Back taxes 5       6 Enter the surviving spouse's taxable income. Back taxes Figure taxable income as if a separate return had been filed. Back taxes See the instructions. Back taxes 6       7 Enter the surviving spouse's total tax. Back taxes See the instructions. Back taxes 7       8 Enter the total, if any, of the surviving spouse's taxes listed in the instructions for line 4. Back taxes 8       9 Subtract line 8 from line 7. Back taxes 9       10 Add lines 5 and 9. Back taxes 10       11 Enter the total tax from the joint return. Back taxes See Table 1 on page 5 for the line number for years before 2002. Back taxes 11       12 Add lines 4 and 8. Back taxes 12       13 Subtract line 12 from line 11. Back taxes 13       14 Divide line 5 by line 10. Back taxes Enter the result as a decimal. Back taxes 14       15 Tax to be forgiven. Back taxes Multiply line 13 by line 14 and enter the result. Back taxes 15       Note. Back taxes If the total of columns (A), (B), and (C) of line 15 (including any amounts shown on line 5 of Worksheet A) is less than $10,000, also complete Worksheet C. Back taxes Attach the computation of the tax to be forgiven or a copy of this worksheet to the decedent's final income tax return or amended tax return (Form 1040X) for each year listed on line 1. Back taxes If filing Form 1040X for an eligible year, enter the amount from line 15 above on Form 1040X in column B of line 10 as a decrease in tax. Back taxes The IRS will determine the amount to be refunded. Back taxes Worksheet B. Back taxes Figuring the Tax To Be Forgiven (For Decedents Who Filed a Joint Return)       (A) First Eligible Year (1994 or 2000) (B) Second Eligible Year (1995 or 2001) (C) Third Eligible Year (1996 or 2002) 1 Enter the years eligible for forgiveness. Back taxes 1       2 Enter the decedent's taxable income. Back taxes Figure taxable income as if a separate return had been filed. Back taxes See the instructions. Back taxes 2       3 Enter the decedent's total tax. Back taxes See the instructions. Back taxes 3       4 Enter the total, if any, of the decedent's taxes not eligible for forgiveness. Back taxes See the instructions. Back taxes 4       5 Subtract line 4 from line 3. Back taxes 5       6 Enter the surviving spouse's taxable income. Back taxes Figure taxable income as if a separate return had been filed. Back taxes See the instructions. Back taxes 6       7 Enter the surviving spouse's total tax. Back taxes See the instructions. Back taxes 7       8 Enter the total, if any, of the surviving spouse's taxes listed in the instructions for line 4. Back taxes 8       9 Subtract line 8 from line 7. Back taxes 9       10 Add lines 5 and 9. Back taxes 10       11 Enter the total tax from the joint return. Back taxes See Table 1 on page 5 for the line number for years before 2002. Back taxes 11       12 Add lines 4 and 8. Back taxes 12       13 Subtract line 12 from line 11. Back taxes 13       14 Divide line 5 by line 10. Back taxes Enter the result as a decimal. Back taxes 14       15 Tax to be forgiven. Back taxes Multiply line 13 by line 14 and enter the result. Back taxes 15       Note. Back taxes If the total of columns (A), (B), and (C) of line 15 (including any amounts shown on line 5 of Worksheet A) is less than $10,000, also complete Worksheet C. Back taxes Attach the computation of the tax to be forgiven or a copy of this worksheet to the decedent's final income tax return or amended tax return (Form 1040X) for each year listed on line 1. Back taxes If filing Form 1040X for an eligible year, enter the amount from line 15 above on Form 1040X in column B of line 10 as a decrease in tax. Back taxes The IRS will determine the amount to be refunded. Back taxes Instructions for Worksheet B Table 1. Back taxes Total Tax Line on Decedent's Return Note: Use this table to find the total tax line on the decedent's income tax return. Back taxes * Form 1994 1995 1996 2000 2001 1040 Line 53 Line 54 Line 51 Line 57 Line 58 1040A Line 27 Line 28 Line 28 Line 35 File Form 1040 1040EZ Line 9 Line 10 Line 10 Line 10 TeleFile Tax Record ** Line E Line J Line K 1040NR Line 51 Line 52 Line 49 Line 54 Line 54 1040NR–EZ N/A Line 17 Line 17 Line 18 File Form 1040NR * Line numbers for the 2002 forms were not available when this publication went to print. Back taxes ** File Form 4506 to get a transcript of the decedent's account. Back taxes Table 1. Back taxes Total Tax Line on Decedent's Return Note: Use this table to find the total tax line on the decedent's income tax return. Back taxes * Form 1994 1995 1996 2000 2001 1040 Line 53 Line 54 Line 51 Line 57 Line 58 1040A Line 27 Line 28 Line 28 Line 35 File Form 1040 1040EZ Line 9 Line 10 Line 10 Line 10 TeleFile Tax Record ** Line E Line J Line K 1040NR Line 51 Line 52 Line 49 Line 54 Line 54 1040NR–EZ N/A Line 17 Line 17 Line 18 File Form 1040NR * Line numbers for the 2002 forms were not available when this publication went to print. Back taxes ** File Form 4506 to get a transcript of the decedent's account. Back taxes Lines 2 and 6. Back taxes   Allocate income and deductions in the same manner they would have been allocated if the spouses had filed separate returns. Back taxes   Allocate wages and salaries to the spouse who performed the services and received the Form W-2. Back taxes Business and investment income (including capital gains) are generally allocated to the spouse who owned the business or investment that produced the income. Back taxes Income from a jointly owned business or investment should be allocated equally between the spouses unless there is evidence that shows a different allocation is appropriate. Back taxes   Allocate business deductions to the owner of the business. Back taxes Allocate personal deductions (such as itemized deductions for mortgage interest and taxes) equally between the spouses unless there is evidence that shows a different allocation is appropriate. Back taxes Lines 3 and 7. Back taxes   Figure the total tax as if a separate return had been filed. Back taxes The total tax is the tax that would have been entered on the tax return line shown in Table 1 if a separate return had been filed. Back taxes When figuring the tax using the Tax Table or Tax Rate Schedule, use the “Married filing separately” column in the Tax Table or Tax Rate Schedule Y-2. Back taxes   When figuring the total tax, allocate credits and other taxes, if any, in the same manner as they would have been allocated if the spouses had filed separate returns. Back taxes If a credit would not have been allowed on a separate return, allocate the credit shown on the joint return between the spouses. Back taxes Examples of credits generally not allowed on a separate return are the child and dependent care credit, credit for the elderly, adoption credit, education credits, and earned income credit. Back taxes Line 4. Back taxes   Enter the total, if any, of the following taxes. Back taxes Self-employment tax. Back taxes Social security and Medicare tax on tip income not reported to employer. Back taxes Tax on excess contributions to IRAs, Coverdell education savings accounts (formerly Ed IRAs), or Archer MSAs (formerly medical savings accounts). Back taxes Tax on excess accumulation in qualified retirement plans. Back taxes Household employment taxes. Back taxes Uncollected social security and Medicare or RRTA tax on tips or group-term life insurance. Back taxes Tax on golden parachute payments. Back taxes Minimum Amount of Relief The minimum amount of relief is $10,000. Back taxes If the decedent's total forgiven tax liability for all eligible years is less than $10,000, the difference between $10,000 and the total forgiven tax liability for those years will be treated as a tax payment for the decedent's last tax year. Back taxes The IRS will refund the difference as explained under Refund of Taxes Paid. Back taxes Use Worksheet C to figure the additional tax payment. Back taxes But first complete Worksheet A or B, unless the decedent was not required to file tax returns for the eligible tax years. Back taxes Example 1. Back taxes An individual who died in the September 11 attacks had an income tax liability of $-0- for 2000 and $6,400 for 2001. Back taxes The $6,400 is eligible for forgiveness. Back taxes The IRS will forgive $6,400 and treat the difference between $10,000 and $6,400 ($3,600) as a tax payment for 2001. Back taxes Example 2. Back taxes A child who died in the September 11 attacks had no (-0-) income tax liability for 2000 or 2001. Back taxes The IRS will treat $10,000 as a tax payment for 2001. Back taxes Income received after date of death. Back taxes   Generally, income of the decedent received after the date of death must be reported on Form 1041 if the estate has gross income for the tax year of $600 or more. Back taxes Examples are the final paycheck or dividends on stock owned by the decedent. Back taxes However, this income is exempt from income tax and is not included on Form 1041 if it is received: After the date of the decedent's death, and Before the end of the decedent's tax year (determined without regard to death). Back taxes Nonqualifying income. Back taxes   The following income is not exempt from tax. Back taxes The tax on it is not eligible for forgiveness. Back taxes Deferred compensation that would have been payable if the death had occurred because of an event other than these attacks. Back taxes Amounts that would not have been payable but for an action taken after September 11, 2001. Back taxes The following are examples of nonqualifying income. Back taxes Amounts payable from a qualified retirement plan or IRA to the beneficiary or estate of the decedent. Back taxes Amounts payable only as death or survivor's benefits from pre-existing arrangements that would have been paid if the death had occurred for another reason. Back taxes Income received as a result of adjustments made by the decedent's employer to a plan or arrangement to accelerate the vesting of restricted property or the payment of nonqualified deferred compensation after the date of the attack. Back taxes Interest on savings bonds cashed by the beneficiary of the decedent. Back taxes If you are responsible for the estate of a decedent, see Publication 559. Back taxes Publication 559 discusses how to complete and file federal income tax returns and explains your responsibility to pay any taxes due. Back taxes Instructions for lines 2–9 of Worksheet C. Back taxes   The tax that would have been payable on the exempt income (discussed earlier) must be considered when determining whether a decedent is entitled to the $10,000 minimum relief. Back taxes To figure the tax that would have been payable, you can use lines 2 through 9 of Worksheet C. Back taxes Or, if special requirements are met, you can use the alternative computation instead. Back taxes See Alternative computation, later. Back taxes   You have to use lines 2–9 (or the alternative computation) to figure the tax that would have been payable even if Form 1041 was not required to be filed. Back taxes Use Form 1041 to figure what the taxable income would be without including the exempt income. Back taxes Then enter that taxable income (even if a negative number) on line 2 of Worksheet C (or line 1 of Worksheet D, Alternative Computation of Tax on Exempt Income (Line 9 of Worksheet C)). Back taxes Alternative computation. Back taxes   Instead of using lines 2–8 of Worksheet C to figure the tax on exempt income (line 9 of Worksheet C), you may be able to use Worksheet D. Back taxes You can use Worksheet D to figure the tax on the exempt income payable by the estate and its beneficiaries only if both of the following requirements are met. Back taxes The estate claimed an income distribution deduction on line 18 (Form 1041). Back taxes Each beneficiary submits the information necessary to refigure the income tax payable on the exempt income received from the decedent's estate. Back taxes If requirement (2) is met but requirement (1) is not, you can still use Worksheet D if: Form 1041 was not required because exempt income was received, and The estate would have claimed an income distribution deduction if the exempt income were taxable. Back taxes If you use this alternative computation, skip lines 2–8 of Worksheet C and enter the amount from line 8 of Worksheet D on line 9 of Worksheet C. Back taxes Complete the rest of Worksheet C to determine the additional payment allowed. Back taxes Worksheet C. Back taxes Amount Treated as Tax Payment for Decedent's Last Tax Year Caution: The decedent is entitled to minimum relief of $10,000. Back taxes Complete this worksheet only if the total tax forgiven for all eligible years is less than $10,000. Back taxes 1 Minimum relief amount. Back taxes Note: Before completing lines 2–9, see Instructions for lines 2–9 of Worksheet C. Back taxes 1 $10,000 2 Enter the taxable income from line 22 (Form 1041) 2       3 Enter the distribution deduction from line 18 (Form 1041) . Back taxes 3       4 Add lines 2 and 3. Back taxes 4       5 Enter exempt income received after death minus expenses allocable to exempt income. Back taxes (See Income received after date of death on page 5. Back taxes ) 5       6 Add lines 4 and 5. Back taxes 6       7 Figure the tax on line 6 using Schedule G (Form 1041). Back taxes 7       8 Figure the tax on line 4 using Schedule G (Form 1041). Back taxes 8       9 Tax on exempt income. Back taxes Subtract line 8 from line 7. Back taxes 9       10 Enter the total of columns (A)–(C) from line 5 of Worksheet A or line 15 of Worksheet B. Back taxes If the decedent was not required to file tax returns for the eligible tax years, enter -0-. Back taxes 10       11 Add lines 9 and 10. Back taxes 11   12 Additional payment allowed. Back taxes If line 11 is $10,000 or more, enter -0- and stop here. Back taxes No additional amount is allowed as a tax payment. Back taxes Otherwise, subtract line 11 from line 1 and enter the result. Back taxes 12   Note. Back taxes The amount on line 12 is allowed as a tax payment for the decedent's last tax year (usually 1995 or 2001). Back taxes Attach the computation of the additional payment allowed or a copy of this worksheet to the original or amended income tax return for the decedent's last tax year. Back taxes If filing Form 1040, include the amount from line 12 above on the “Other payments” line of the form. Back taxes Write "Sec. Back taxes 692(d)(2) Payment" and the amount to the right of the entry space. Back taxes Also indicate whether a Form 1041 is being filed for the decedent's estate. Back taxes If filing Form 1040X, include the amount from line 12 above on Form 1040X on line 15, columns (B) and (C). Back taxes Write “Sec. Back taxes 692(d)(2) Payment” on the dotted line to the left of the entry space. Back taxes Worksheet C. Back taxes Amount Treated as Tax Payment for Decedent's Last Tax Year Caution: The decedent is entitled to minimum relief of $10,000. Back taxes Complete this worksheet only if the total tax forgiven for all eligible years is less than $10,000. Back taxes 1 Minimum relief amount. Back taxes Note: Before completing lines 2–9, see Instructions for lines 2–9 of Worksheet C. Back taxes 1 $10,000 2 Enter the taxable income from line 22 (Form 1041) 2       3 Enter the distribution deduction from line 18 (Form 1041) . Back taxes 3       4 Add lines 2 and 3. Back taxes 4       5 Enter exempt income received after death minus expenses allocable to exempt income. Back taxes (See Income received after date of death on page 5. Back taxes ) 5       6 Add lines 4 and 5. Back taxes 6       7 Figure the tax on line 6 using Schedule G (Form 1041). Back taxes 7       8 Figure the tax on line 4 using Schedule G (Form 1041). Back taxes 8       9 Tax on exempt income. Back taxes Subtract line 8 from line 7. Back taxes 9       10 Enter the total of columns (A)–(C) from line 5 of Worksheet A or line 15 of Worksheet B. Back taxes If the decedent was not required to file tax returns for the eligible tax years, enter -0-. Back taxes 10       11 Add lines 9 and 10. Back taxes 11   12 Additional payment allowed. Back taxes If line 11 is $10,000 or more, enter -0- and stop here. Back taxes No additional amount is allowed as a tax payment. Back taxes Otherwise, subtract line 11 from line 1 and enter the result. Back taxes 12   Note. Back taxes The amount on line 12 is allowed as a tax payment for the decedent's last tax year (usually 1995 or 2001). Back taxes Attach the computation of the additional payment allowed or a copy of this worksheet to the original or amended income tax return for the decedent's last tax year. Back taxes If filing Form 1040, include the amount from line 12 above on the “Other payments” line of the form. Back taxes Write "Sec. Back taxes 692(d)(2) Payment" and the amount to the right of the entry space. Back taxes Also indicate whether a Form 1041 is being filed for the decedent's estate. Back taxes If filing Form 1040X, include the amount from line 12 above on Form 1040X on line 15, columns (B) and (C). Back taxes Write “Sec. Back taxes 692(d)(2) Payment” on the dotted line to the left of the entry space. Back taxes Worksheet D. Back taxes Alternative Computation of Tax on Exempt Income (Line 9 of Worksheet C) 1 Enter the taxable income from line 22 (Form 1041) 1   2 Enter exempt income received after death minus expenses allocable to exempt income. Back taxes (See Income received after date of death on page 5. Back taxes ) 2   3 Add lines 1 and 2 3   4 Figure the tax on line 3 using Schedule G (Form 1041). Back taxes 4   5 Figure the tax on line 1 using Schedule G (Form 1041). Back taxes 5   6 Estate's tax on exempt income. Back taxes Subtract line 5 from line 4 6   7 Beneficiaries' tax on exempt income. Back taxes Figure the total tax that would have been payable by all beneficiaries. Back taxes Do this by including in each beneficiary's gross income the exempt income received from the decedent's estate and refiguring the income tax. Back taxes Add the amounts by which each beneficiary's income tax is increased. Back taxes 7   8 Add lines 6 and 7. Back taxes Enter this amount on line 9 of Worksheet C. Back taxes 8   Worksheet D. Back taxes Alternative Computation of Tax on Exempt Income (Line 9 of Worksheet C) 1 Enter the taxable income from line 22 (Form 1041) 1   2 Enter exempt income received after death minus expenses allocable to exempt income. Back taxes (See Income received after date of death on page 5. Back taxes ) 2   3 Add lines 1 and 2 3   4 Figure the tax on line 3 using Schedule G (Form 1041). Back taxes 4   5 Figure the tax on line 1 using Schedule G (Form 1041). Back taxes 5   6 Estate's tax on exempt income. Back taxes Subtract line 5 from line 4 6   7 Beneficiaries' tax on exempt income. Back taxes Figure the total tax that would have been payable by all beneficiaries. Back taxes Do this by including in each beneficiary's gross income the exempt income received from the decedent's estate and refiguring the income tax. Back taxes Add the amounts by which each beneficiary's income tax is increased. Back taxes 7   8 Add lines 6 and 7. Back taxes Enter this amount on line 9 of Worksheet C. Back taxes 8   Refund of Taxes Paid The IRS will refund the following forgiven income tax liabilities. Back taxes Income tax liabilities that have been paid. Back taxes Income tax liabilities treated as paid because the total tax liability for all years eligible for tax forgiveness is less than $10,000. Back taxes See Minimum Amount of Relief, earlier. Back taxes Example 1. Back taxes A man who died in the September 11 attacks had an income tax liability of $7,500 for 2000 and $6,500 for 2001. Back taxes The total, $14,000, is eligible for tax forgiveness. Back taxes However, he paid only $13,000 of that amount. Back taxes The IRS will refund the $13,000 paid. Back taxes Example 2. Back taxes A child who died in the September 11 attacks had no income tax liability for 2000 or 2001. Back taxes The child qualifies for the minimum relief of $10,000. Back taxes The $10,000 is treated as a tax payment for 2001 and will be refunded. Back taxes Period for filing a claim for credit or refund. Back taxes   To obtain a tax refund on a previously filed income tax return, file an amended return (Form 1040X or an amended Form 1041) within 3 years from the time the return was filed or 2 years from the time the tax was paid, whichever is later. Back taxes For example, you have until April 15, 2004, to file an amended return on a 2000 Form 1040, 1040A, or 1040EZ that was filed by April 16, 2001, and for which the tax was paid when due. Back taxes To obtain a refund on a return that has not been filed, file the return within 3 years of the original due date of the return. Back taxes Extension of time for victims of Oklahoma City attack. Back taxes   The period described above has been extended for victims of the Oklahoma City attack. Back taxes Survivors and personal representatives of these victims have until January 22, 2003, to file an original or amended return. Back taxes How To Claim Tax Forgiveness Use the following procedures to claim income tax forgiveness. Back taxes Which Form To Use The form you use depends on whether an income tax return for the eligible year was already filed for the decedent. Back taxes Return required but not yet filed. Back taxes   File Form 1040 if the decedent was a U. Back taxes S. Back taxes citizen or resident. Back taxes File Form 1040NR if the decedent was a nonresident alien. Back taxes A nonresident alien is someone who is not a U. Back taxes S. Back taxes citizen or resident. Back taxes Return required and already filed. Back taxes   File a separate Form 1040X for each year you are claiming tax relief. Back taxes Return not required and not filed. Back taxes   File Form 1040 only for the year of death if the decedent was a U. Back taxes S. Back taxes citizen or resident. Back taxes File Form 1040NR if the decedent was a nonresident alien. Back taxes Return not required but already filed. Back taxes   File Form 1040X only for the year of death. Back taxes How to complete the returns. Back taxes   Fill out Form 1040 or 1040NR according to its instructions but do not reduce the decedent's tax liability by any taxes that will be forgiven. Back taxes Attach to each return a computation of the income tax to be forgiven or a copy of Worksheet A or B. Back taxes If filing Form 1040 or Form 1040NR, also attach any Forms W–2. Back taxes If the total forgiven tax liability for all eligible years is less than $10,000, attach to the decedent's final return a computation of the additional tax payment allowed or a copy of Worksheet C. Back taxes Also, please write one of the following across the top of page 1 of each return. Back taxes KITA—Oklahoma City KITA—9/11 KITA—Anthrax “KITA” means “killed in terrorist attack. Back taxes ” Need a copy of a previously filed return?   You will find it easier to prepare Form 1040X if you have a copy of the decedent's previously filed tax return. Back taxes If you need a copy, use Form 4506. Back taxes The IRS will provide a free copy of the tax return if you write “DISASTER” in the top margin of Form 4506. Back taxes Attach Letters Testamentary or other evidence to establish that you are authorized to act for the decedent's estate. Back taxes Send Form 4506 to the address shown in the form instructions. Back taxes Taxpayer identification number. Back taxes   A taxpayer identification number must be furnished on the decedent's returns. Back taxes This is usually the decedent's social security number (SSN). Back taxes However, a nonresident alien who is not eligible to get an SSN should have an individual taxpayer identification number (ITIN). Back taxes If the decedent was a nonresident alien, had neither an SSN nor an ITIN, and was not required to file a U. Back taxes S. Back taxes income tax return for any tax year, do not apply for an ITIN. Back taxes You may claim a refund by filing Form 1040NR without an SSN or ITIN. Back taxes Necessary Documents Please attach the following documents to the return or amended return. Back taxes Proof of death. Back taxes   Attach a copy of the death certificate. Back taxes If the Department of Defense issued DD Form 1300, Report of Casualty, you can attach that form instead of the death certificate. Back taxes Form 1310. Back taxes   You must send Form 1310 with all returns and claims for refund, unless either of the following applies. Back taxes You are a surviving spouse filing an original or amended joint return with the decedent. Back taxes You are a personal representative filing an original Form 1040 or Form 1040NR for the decedent and a court certificate showing your appointment is attached to the return. Back taxes A personal representative is an executor or administrator of a decedent's estate, as certified or appointed by the court. Back taxes A copy of the decedent's will cannot be accepted as evidence that you are the personal representative. Back taxes      If you have proof of death but do not have enough tax information to file a timely claim for a refund, file Form 1040X with Form 1310. Back taxes Include a statement saying an amended return will be filed as soon as the necessary tax information is available. Back taxes Where To File The IRS has set up a special office for processing returns and claims for tax forgiveness. Back taxes Use one of the addresses shown below. Back taxes Where you file the returns or claims depends on whether you use the U. Back taxes S. Back taxes Postal Service or a private delivery service. Back taxes Please do not send these returns or claims to any of the addresses shown in the tax form instructions. Back taxes U. Back taxes S. Back taxes Postal Service. Back taxes   If you use the U. Back taxes S. Back taxes Postal Service, file these returns and claims at the following address. Back taxes Internal Revenue Service P. Back taxes O. Back taxes Box 4053 Woburn, MA 01888 Private delivery service. Back taxes   Private delivery services cannot deliver items to P. Back taxes O. Back taxes boxes. Back taxes If you use a private delivery service, file these returns and claims at the following address. Back taxes Internal Revenue Service Stop 661 310 Lowell St. Back taxes Andover, MA 01810 Designated private delivery services. Back taxes   You can use the following private delivery services to file these returns and claims. Back taxes Airborne Express (Airborne): Overnight Air Express Service, Next Afternoon Service, and Second Day Service. Back taxes DHL Worldwide Express (DHL): DHL “Same Day” Service, and DHL USA Overnight. Back taxes Federal Express (FedEx): FedEx Priority Overnight, FedEx Standard Overnight, and FedEx 2Day. Back taxes United Parcel Service (UPS): UPS Next Day Air, UPS Next Day Air Saver, UPS 2nd Day Air, UPS 2nd Day Air A. Back taxes M. Back taxes , UPS Worldwide Express Plus, and UPS Worldwide Express. Back taxes The private delivery service can tell you how to get written proof of the mailing date. Back taxes Payments to Survivors The following section discusses the tax treatment of certain amounts received by survivors. Back taxes September 11th Victim Compensation Fund of 2001 Payments from the September 11th Victim Compensation Fund of 2001 are not included in income. Back taxes Qualified Disaster Relief Payments Qualified disaster relief payments are not included in income. Back taxes These payments are not subject to income tax, self-employment tax, or employment taxes (social security, Medicare, and federal unemployment taxes). Back taxes No withholding applies to these payments. Back taxes Qualified disaster relief payments include payments you receive (regardless of the source) after September 10, 2001, for the following expenses. Back taxes Reasonable and necessary personal, family, living, or funeral expenses incurred as a result of a terrorist attack. Back taxes Reasonable and necessary expenses incurred for the repair or rehabilitation of a personal residence due to a terrorist attack. Back taxes (A personal residence can be a rented residence or one you own. Back taxes ) Reasonable and necessary expenses incurred for the repair or replacement of the contents of a personal residence due to a terrorist attack. Back taxes Qualified disaster relief payments also include the following. Back taxes Payments made by common carriers (for example, American Airlines and United Airlines regarding the September 11 attacks) because of death or physical injury incurred as a result of a terrorist attack. Back taxes Amounts paid by a federal, state, or local government in connection with a terrorist attack to those affected by the attack. Back taxes Qualified disaster relief payments do not include: Insurance or other reimbursements for expenses, or Income replacement payments, such as payments of lost wages, lost business income, or unemployment compensation. Back taxes Disability Payments For tax years ending after September 10, 2001, disability payments for injuries incurred as a direct result of a terrorist attack directed against the United States (or its allies), whether outside or within the United States, are not included in income. Back taxes Death Benefits Payments received by an individual or the estate of a decedent from the employer of an employee who died as a result of the Oklahoma City or September 11 terrorist attacks, or as a result of the anthrax attacks, are not included in income. Back taxes Only the amount that exceeds the benefits that would have been payable if the death had occurred for a reason other than a terrorist or anthrax attack is excludable. Back taxes However, the exclusion does apply to incidental death benefits paid under a qualified retirement plan even if these amounts would have been payable if the death had occurred for a reason other than a terrorist or anthrax attack. Back taxes If you included death benefits in income on a previously filed return and they are now excludable under the above rule, file Form 1040X to amend that return. Back taxes For information on the period for filing Form 1040X, see Period for filing claim for credit or refund earlier under Refund of Taxes Paid. Back taxes If that period has expired, you are granted an extension. Back taxes You have until January 22, 2003, to file Form 1040X to exclude the death benefits. Back taxes On top of page 1 of Form 1040X, write “Extension of Limitations Under PL 107–134, sec. Back taxes 102(b)(2). Back taxes ” Canceled Debt Canceled debt is not included in your income (or the income of the estate) if: You (or the estate) were liable, or became liable, for the debt of a decedent, and The debt was canceled after September 10, 2001, and before January 1, 2002, because the decedent died as a result of the September 11 attacks or anthrax attacks. Back taxes The lender is not required to report the canceled debt on Form 1099–C, Cancellation of Debt. Back taxes Payments to Survivors of Public Safety Officers If you are a survivor of a public safety officer who died in the line of duty, certain amounts you receive are not included in income. Back taxes Bureau of Justice Assistance payments. Back taxes   If you are a surviving dependent of a public safety officer (law enforcement officer or firefighter) who died in the line of duty, do not include in your income the death benefit paid to you by the Bureau of Justice Assistance. Back taxes Government plan annuity. Back taxes   If you receive a survivor annuity as the child or spouse (or former spouse) of a public safety officer who was killed in the line of duty, you generally do not have to include it in income. Back taxes This exclusion applies to the amount of the annuity based on the officer's service as a public safety officer. Back taxes For this purpose, the term public safety officer includes police and law enforcement officers, firefighters, and rescue squad and ambulance crews. Back taxes More information. Back taxes   For more information, see Publication 559. Back taxes Postponed Tax Deadlines The IRS may postpone for up to 1 year certain tax deadlines of taxpayers who are affected by a terrorist attack. Back taxes The tax deadlines the IRS may postpone include those for filing income and employment tax returns, paying income and employment taxes, and making contributions to a traditional IRA or Roth IRA. Back taxes If any tax deadline is postponed, the IRS will publicize the postponement in the affected area and publish a news release, revenue ruling, revenue procedure, notice, announcement, or other guidance in the Internal Revenue Bulletin (IRB). Back taxes Affected taxpayers. Back taxes   If the IRS postpones a tax deadline, the following taxpayers are eligible for the postponement. Back taxes Any individual whose main home is located in a covered area (defined later). Back taxes Any business entity or sole proprietor whose principal place of business is located in a covered area. Back taxes Any individual, business entity, or sole proprietor whose records needed to meet a postponed deadline are maintained in a covered area. Back taxes The main home or principal place of business does not have to be located in the covered area. Back taxes Any estate or trust whose tax records necessary to meet a postponed tax deadline are maintained in a covered area. Back taxes Any individual who is a relief worker affiliated with a recognized government or philanthropic organization and who is assisting in a covered area. Back taxes The spouse on a joint return with a taxpayer who is eligible for postponements. Back taxes Any other person determined by the IRS to be affected by a terrorist attack. Back taxes Covered area. Back taxes   This is an area in which a terrorist attack took place and in which the IRS has decided to postpone tax deadlines for up to 1 year. Back taxes Abatement of interest. Back taxes   The IRS may abate (forgive) the interest on any underpaid income tax for the length of any postponement. Back taxes Disaster Area Losses If your property was damaged or destroyed as a result of the September 11 attacks, you can choose to deduct your disaster loss on your 2000 return (or amended return) rather than on your 2001 return. Back taxes You must make this choice to deduct your loss on your 2000 return by the later of the following dates. Back taxes The due date (without extensions) for filing your 2001 income tax return (April 15, 2002, if you are a calendar year taxpayer). Back taxes The due date (with extensions) for the 2000 return. Back taxes For more information about disaster area losses, see Publication 547. Back taxes Estate Tax Reduction The federal estate tax is reduced for taxable estates of individuals who died as a result of the Oklahoma City attack, the September 11 attacks, and the anthrax attacks. Back taxes The estate tax is computed using a new rate schedule on page 25 of the November 2001 revision of the instructions for Form 706. Back taxes The estate tax is reduced by credits against the estate tax, including the unified credit and the state death tax credit. Back taxes These credits may reduce or eliminate the estate tax due. Back taxes A special rule extends until January 22, 2003, the period of time allowed to file a claim for a refund of estate taxes that have been paid. Back taxes Recovery from the September 11th Victim Compensation Fund. Back taxes   The value of claims for a decedent's pain and suffering is normally included in the gross estate. Back taxes However, if the estate chooses to seek recovery from this fund, the IRS has determined that, in view of the unique circumstances of this situation and the high likelihood that such claims will be valued at a nominal or zero amount, the claims will be valued at zero for estate tax purposes. Back taxes Thus, there are no federal estate tax consequences if an estate or beneficiary receives a recovery from this fund. Back taxes Which estates must file a return. Back taxes   For decedents dying in 2001, Form 706 must be filed by the executor for the estate of every U. Back taxes S. Back taxes citizen or resident whose gross estate, plus adjusted taxable gifts and specific exemption, is more than $675,000. Back taxes Form 706 must be filed within 9 months after the date of decedent's death unless you receive an extension of time to file. Back taxes Use Form 4768, Application for Extension of Time To File a Return and/or Pay U. Back taxes S. Back taxes Estate (and Generation-Skipping Transfer) Taxes, to apply for an extension. Back taxes Where to file. Back taxes   Returns on which the new rate schedule is used should be sent to the following address, which was not available when Form 706 went to print. Back taxes Internal Revenue Service E & G Department/Stop 824T 201 W. Back taxes Rivercenter Blvd. Back taxes Covington, KY 41011 More information. Back taxes   For more information on the federal estate tax, see the instructions for Form 706. Back taxes Structured Settlement Factoring Transactions A person who acquires payment rights in a structured settlement arrangement after February 21, 2002, may be subject to a 40% excise tax unless the transfer of the payment rights was approved in advance in a qualified order. Back taxes The excise tax is figured on the excess of the undiscounted amount of the payments being acquired over the total amount actually paid to acquire them. Back taxes However, this tax will not apply to transactions entered into from February 22, 2002, to July 1, 2002, if certain requirements are met. Back taxes For information about these requirements, see Internal Revenue Code section 5891. Back taxes Worksheet B Illustrated. Back taxes Figuring the Tax To Be Forgiven (For Decedents Who Filed a Joint Return)       (A) First Eligible Year (1994 or 2000) (B) Second Eligible Year (1995 or 2001) (C) Third Eligible Year (1996 or 2002) 1 Enter the years eligible for forgiveness. Back taxes 1 2000 2001   2 Enter the decedent's taxable income. Back taxes Figure taxable income as if a separate return had been filed. Back taxes See the instructions. Back taxes 2 $17,259 $14,295   3 Enter the decedent's total tax. Back taxes See the instructions. Back taxes 3 6,123 5,250   4 Enter the total, if any, of the decedent's taxes not eligible for forgiveness. Back taxes See the instructions. Back taxes 4 3,532 3,109   5 Subtract line 4 from line 3. Back taxes 5 2,591 2,141   6 Enter the surviving spouse's taxable income. Back taxes Figure taxable income as if a separate return had been filed. Back taxes See the instructions for line 2. Back taxes 6 29,025 29,850   7 Enter the surviving spouse's total tax. Back taxes See the instructions. Back taxes 7 5,277 5,391   8 Enter the total, if any, of the surviving spouse's taxes listed in the instructions for line 4. Back taxes 8 0 0   9 Subtract line 8 from line 7. Back taxes 9 5,277 5,391   10 Add lines 5 and 9. Back taxes 10 7,868 7,532   11 Enter the total tax from the joint return. Back taxes See Table 1 on page 5 for the line number for years before 2002. Back taxes 11 10,789 9,728   12 Add lines 4 and 8. Back taxes 12 3,532 3,109   13 Subtract line 12 from line 11. Back taxes 13 7,257 6,619   14 Divide line 5 by line 10. Back taxes Enter the result as a decimal. Back taxes 14 . Back taxes 329 . Back taxes 284   15 Tax to be forgiven. Back taxes Multiply line 13 by line 14 and enter the result. Back taxes 15 $2,388 $1,880   Note. Back taxes If the total of columns (A), (B), and (C) of line 15 (including any amounts shown on line 5 of Worksheet A) is less than $10,000, also complete Worksheet C. Back taxes Attach the computation of the tax to be forgiven or a copy of this worksheet to the decedent's final income tax return or amended tax return (Form 1040X) for each year listed on line 1. Back taxes If filing Form 1040X for an eligible year, enter the amount from line 15 above on Form 1040X in column B of line 10 as a decrease in tax. Back taxes The IRS will determine the amount to be refunded. Back taxes Worksheet B Illustrated. Back taxes Figuring the Tax To Be Forgiven (For Decedents Who Filed a Joint Return)       (A) First Eligible Year (1994 or 2000) (B) Second Eligible Year (1995 or 2001) (C) Third Eligible Year (1996 or 2002) 1 Enter the years eligible for forgiveness. Back taxes 1 2000 2001   2 Enter the decedent's taxable income. Back taxes Figure taxable income as if a separate return had been filed. Back taxes See the instructions. Back taxes 2 $17,259 $14,295   3 Enter the decedent's total tax. Back taxes See the instructions. Back taxes 3 6,123 5,250   4 Enter the total, if any, of the decedent's taxes not eligible for forgiveness. Back taxes See the instructions. Back taxes 4 3,532 3,109   5 Subtract line 4 from line 3. Back taxes 5 2,591 2,141   6 Enter the surviving spouse's taxable income. Back taxes Figure taxable income as if a separate return had been filed. Back taxes See the instructions for line 2. Back taxes 6 29,025 29,850   7 Enter the surviving spouse's total tax. Back taxes See the instructions. Back taxes 7 5,277 5,391   8 Enter the total, if any, of the surviving spouse's taxes listed in the instructions for line 4. Back taxes 8 0 0   9 Subtract line 8 from line 7. Back taxes 9 5,277 5,391   10 Add lines 5 and 9. Back taxes 10 7,868 7,532   11 Enter the total tax from the joint return. Back taxes See Table 1 on page 5 for the line number for years before 2002. Back taxes 11 10,789 9,728   12 Add lines 4 and 8. Back taxes 12 3,532 3,109   13 Subtract line 12 from line 11. Back taxes 13 7,257 6,619   14 Divide line 5 by line 10. Back taxes Enter the result as a decimal. Back taxes 14 . Back taxes 329 . Back taxes 284   15 Tax to be forgiven. Back taxes Multiply line 13 by line 14 and enter the result. Back taxes 15 $2,388 $1,880   Note. Back taxes If the total of columns (A), (B), and (C) of line 15 (including any amounts shown on line 5 of Worksheet A) is less than $10,000, also complete Worksheet C. Back taxes Attach the computation of the tax to be forgiven or a copy of this worksheet to the decedent's final income tax return or amended tax return (Form 1040X) for each year listed on line 1. Back taxes If filing Form 1040X for an eligible year, enter the amount from line 15 above on Form 1040X in column B of line 10 as a decrease in tax. Back taxes The IRS will determine the amount to be refunded. Back taxes Illustrated Worksheets B and C A wife lost her husband in the September 11 attack on the World Trade Center. Back taxes They filed a joint return for 2000 and the wife chose to file a joint return as a surviving spouse for 2001. Back taxes The returns for 2000 and 2001 showed the following income, deductions, and tax liabilities. Back taxes After the husband died, his estate received income of $4,000. Back taxes Of that amount, $1,000 is net profit from Schedule C received before the end of 2001. Back taxes This net profit is exempt from income tax as explained earlier under Income received after date of death. Back taxes The wife files Form 1041 because the gross income of the estate for the tax year ($3,000) is $600 or more. Back taxes To determine how much of the husband's tax liability for 2000 and 2001 is to be forgiven, the wife completes Worksheet B. Back taxes She also completes Worksheet C because the forgiven tax liabilities for 2000 and 2001 (line 15 of Worksheet B) total less than $10,000. Back taxes To claim tax relief for 2000, the wife files Form 1040X and attaches a copy of Worksheet B. Back taxes To claim tax relief for 2001, she files Form 1040 and attaches copies of Worksheets B and C. Back taxes   2000 2001 Wages (wife) $35,000 $36,000 Net profit from Schedule C, Profit or Loss From Business (husband) 25,000 22,000 Interest income (joint account) 1,000 1,100 Deduction for ½ of self-employment tax (husband) (1,766) (1,555) Standard deduction (7,350) (7,600) Personal exemptions (2) (5,600) (5,800) Taxable income $46,284 $44,145 Joint income tax liability $7,257 $6,619 Plus: Self-employment tax (husband) 3,532 3,109 Total tax liability $10,789 $9,728   2000 2001 Wages (wife) $35,000 $36,000 Net profit from Schedule C, Profit or Loss From Business (husband) 25,000 22,000 Interest income (joint account) 1,000 1,100 Deduction for ½ of self-employment tax (husband) (1,766) (1,555) Standard deduction (7,350) (7,600) Personal exemptions (2) (5,600) (5,800) Taxable income $46,284 $44,145 Joint income tax liability $7,257 $6,619 Plus: Self-employment tax (husband) 3,532 3,109 Total tax liability $10,789 $9,728 Worksheet C Illustrated. Back taxes Amount Treated as Tax Payment for Decedent's Last Tax Year Caution: The decedent is entitled to minimum relief of $10,000. Back taxes Complete this worksheet only if the total tax forgiven for all eligible years is less than $10,000. Back taxes 1 Minimum relief amount. Back taxes Note: Before completing lines 2–9, see Instructions for lines 2–9 of Worksheet C. Back taxes 1 $10,000 2 Enter the taxable income from line 22 (Form 1041) 2 2,400     3 Enter the distribution deduction from line 18 (Form 1041) . Back taxes 3 0     4 Add lines 2 and 3. Back taxes 4 2,400     5 Enter exempt income received after death minus expenses allocable to exempt income. Back taxes (See Income received after date of death on page 5. Back taxes ) 5 1,000     6 Add lines 4 and 5. Back taxes 6 3,400     7 Figure the tax on line 6 using Schedule G (Form 1041). Back taxes 7 710     8 Figure the tax on line 4 using Schedule G (Form 1041). Back taxes 8 435     9 Tax on exempt income. Back taxes Subtract line 8 from line 7. Back taxes 9 275     10 Enter the total of columns (A)–(C) from line 5 of Worksheet A or line 15 of Worksheet B. Back taxes If the decedent was not required to file tax returns for the eligible tax years, enter -0-. Back taxes 10 4,268     11 Add lines 9 and 10. Back taxes 11 $4,543 12 Additional payment allowed. Back taxes If line 11 is $10,000 or more, enter -0- and stop here. Back taxes No additional amount is allowed as a tax payment. Back taxes Otherwise, subtract line 11 from line 1 and enter the result. Back taxes 12 $5,457 Note. Back taxes The amount on line 12 is allowed as a tax payment for the decedent's last tax year (usually 1995 or 2001). Back taxes Attach the computation of the additional payment allowed or a copy of this worksheet to the original or amended income tax return for the decedent's last tax year. Back taxes If filing Form 1040, include the amount from line 12 above on the “Other payments” line of the form. Back taxes Write "Sec. Back taxes 692(d)(2) Payment" and the amount to the right of the entry space. Back taxes Also indicate whether a Form 1041 is being filed for the decedent's estate. Back taxes If filing Form 1040X, include the amount from line 12 above on Form 1040X on line 15, columns (B) and (C). Back taxes Write “Sec. Back taxes 692(d)(2) Payment” on the dotted line to the left of the entry space. Back taxes Worksheet C Illustrated. Back taxes Amount Treated as Tax Payment for Decedent's Last Tax Year Caution: The decedent is entitled to minimum relief of $10,000. Back taxes Complete this worksheet only if the total tax forgiven for all eligible years is less than $10,000. Back taxes 1 Minimum relief amount. Back taxes Note: Before completing lines 2–9, see Instructions for lines 2–9 of Worksheet C. Back taxes 1 $10,000 2 Enter the taxable income from line 22 (Form 1041) 2 2,400     3 Enter the distribution deduction from line 18 (Form 1041) . Back taxes 3 0     4 Add lines 2 and 3. Back taxes 4 2,400     5 Enter exempt income received after death minus expenses allocable to exempt income. Back taxes (See Income received after date of death on page 5. Back taxes ) 5 1,000     6 Add lines 4 and 5. Back taxes 6 3,400     7 Figure the tax on line 6 using Schedule G (Form 1041). Back taxes 7 710     8 Figure the tax on line 4 using Schedule G (Form 1041). Back taxes 8 435     9 Tax on exempt income. Back taxes Subtract line 8 from line 7. Back taxes 9 275     10 Enter the total of columns (A)–(C) from line 5 of Worksheet A or line 15 of Worksheet B. Back taxes If the decedent was not required to file tax returns for the eligible tax years, enter -0-. Back taxes 10 4,268     11 Add lines 9 and 10. Back taxes 11 $4,543 12 Additional payment allowed. Back taxes If line 11 is $10,000 or more, enter -0- and stop here. Back taxes No additional amount is allowed as a tax payment. Back taxes Otherwise, subtract line 11 from line 1 and enter the result. Back taxes 12 $5,457 Note. Back taxes The amount on line 12 is allowed as a tax payment for the decedent's last tax year (usually 1995 or 2001). Back taxes Attach the computation of the additional payment allowed or a copy of this worksheet to the original or amended income tax return for the decedent's last tax year. Back taxes If filing Form 1040, include the amount from line 12 above on the “Other payments” line of the form. Back taxes Write "Sec. Back taxes 692(d)(2) Payment" and the amount to the right of the entry space. Back taxes Also indicate whether a Form 1041 is being filed for the decedent's estate. Back taxes If filing Form 1040X, include the amount from line 12 above on Form 1040X on line 15, columns (B) and (C). Back taxes Write “Sec. Back taxes 692(d)(2) Payment” on the dotted line to the left of the entry space. Back taxes Additional Worksheets The following additional worksheets are provided for your convenience. Back taxes Worksheet A. Back taxes Figuring the Tax To Be Forgiven (For Decedents Who Filed a Return as Single, Married Filing Separately, Head of Household, or Qualifying Widow(er))         (A) First Eligible Year (1994 or 2000) (B) Second Eligible Year (1995 or 2001) (C) Third Eligible Year (1996 or 2002) 1 Enter the years eligible for tax forgiveness. Back taxes 1       2 Enter the total tax from the decedent's income tax return. Back taxes See Table 1 on page 5 for the line number for years before 2002. Back taxes 2       3 Enter the following taxes, if any, shown on the decedent's income tax return. Back taxes (These taxes are not eligible for forgiveness. Back taxes )           a Self-employment tax. Back taxes 3a         b Social security and Medicare tax on tip income not reported to employer. Back taxes 3b         c Tax on excess contributions to IRAs, Coverdell education savings accounts (formerly Ed IRAs), or Archer MSAs (formerly medical savings accounts). Back taxes 3c         d Tax on excess accumulation in qualified retirement plans. Back taxes 3d         e Household employment taxes. Back taxes 3e         f Uncollected social security and Medicare or RRTA tax on tips or group-term life insurance. Back taxes 3f         g Tax on golden parachute payments. Back taxes 3g       4 Add lines 3a through 3g. Back taxes 4       5 Tax to be forgiven. Back taxes Subtract line 4 from line 2. Back taxes 5       Note. Back taxes If the total of columns (A), (B), and (C) of line 5 (including any amounts shown on line 15 of Worksheet B) is less than $10,000, also complete Worksheet C. Back taxes Attach the computation of the tax to be forgiven or a copy of this worksheet to the decedent's final income tax return or amended tax return (Form 1040X) for each year listed on line 1. Back taxes If filing Form 1040X for an eligible year, enter the amount from line 5 above on Form 1040X in column B of line 10 as a decrease in tax. Back taxes The IRS will determine the amount to be refunded. Back taxes Worksheet A. Back taxes Figuring the Tax To Be Forgiven (For Decedents Who Filed a Return as Single, Married Filing Separately, Head of Household, or Qualifying Widow(er))         (A) First Eligible Year (1994 or 2000) (B) Second Eligible Year (1995 or 2001) (C) Third Eligible Year (1996 or 2002) 1 Enter the years eligible for tax forgiveness. Back taxes 1       2 Enter the total tax from the decedent's income tax return. Back taxes See Table 1 on page 5 for the line number for years before 2002. Back taxes 2       3 Enter the following taxes, if any, shown on the decedent's income tax return. Back taxes (These taxes are not eligible for forgiveness. Back taxes )           a Self-employment tax. Back taxes 3a         b Social security and Medicare tax on tip income not reported to employer. Back taxes 3b         c Tax on excess contributions to IRAs, Coverdell education savings accounts (formerly Ed IRAs), or Archer MSAs (formerly medical savings accounts). Back taxes 3c         d Tax on excess accumulation in qualified retirement plans. Back taxes 3d         e Household employment taxes. Back taxes 3e         f Uncollected social security and Medicare or RRTA tax on tips or group-term life insurance. Back taxes 3f         g Tax on golden parachute payments. Back taxes 3g       4 Add lines 3a through 3g. Back taxes 4       5 Tax to be forgiven. Back taxes Subtract line 4 from line 2. Back taxes 5       Note. Back taxes If the total of columns (A), (B), and (C) of line 5 (including any amounts shown on line 15 of Worksheet B) is less than $10,000, also complete Worksheet C. Back taxes Attach the computation of the tax to be forgiven or a copy of this worksheet to the decedent's final income tax return or amended tax return (Form 1040X) for each year listed on line 1. Back taxes If filing Form 1040X for an eligible year, enter the amount from line 5 above on Form 1040X in column B of line 10 as a decrease in tax. Back taxes The IRS will determine the amount to be refunded. Back taxes Worksheet B. Back taxes Figuring the Tax To Be Forgiven (For Decedents Who Filed a Joint Return)       (A) First Eligible Year (1994 or 2000) (B) Second Eligible Year (1995 or 2001) (C) Third Eligible Year (1996 or 2002) 1 Enter the years eligible for forgiveness. Back taxes 1       2 Enter the decedent's taxable income. Back taxes Figure taxable income as if a separate return had been filed. Back taxes See the instructions. Back taxes 2       3 Enter the decedent's total tax. Back taxes See the instructions. Back taxes 3       4 Enter the total, if any, of the decedent's taxes not eligible for forgiveness. Back taxes See the instructions. Back taxes 4       5 Subtract line 4 from line 3. Back taxes 5       6 Enter the surviving spouse's taxable income. Back taxes Figure taxable income as if a separate return had been filed. Back taxes See the instructions. Back taxes 6       7 Enter the surviving spouse's total tax. Back taxes See the instructions. Back taxes 7       8 Enter the total, if any, of the surviving spouse's taxes listed in the instructions for line 4. Back taxes 8       9 Subtract line 8 from line 7. Back taxes 9       10 Add lines 5 and 9. Back taxes 10       11 Enter the total tax from the joint return. Back taxes See Table 1 on page 5 for the line number for years before 2002. Back taxes 11       12 Add lines 4 and 8. Back taxes 12       13 Subtract line 12 from line 11. Back taxes 13       14 Divide line 5 by line 10. Back taxes Enter the result as a decimal. Back taxes 14       15 Tax to be forgiven. Back taxes Multiply line 13 by line 14 and enter the result. Back taxes 15       Note. Back taxes If the total of columns (A), (B), and (C) of line 15 (including any amounts shown on line 5 of Worksheet A) is less than $10,000, also complete Worksheet C. Back taxes Attach the computation of the tax to be forgiven or a copy of this worksheet to the decedent's final income tax return or amended tax return (Form 1040X) for each year listed on line 1. Back taxes If filing Form 1040X for an eligible year, enter the amount from line 15 above on Form 1040X in column B of line 10 as a decrease in tax. Back taxes The IRS will determine the amount to be refunded. Back taxes Worksheet B. Back taxes Figuring the Tax To Be Forgiven (For Decedents Who Filed a Joint Return)       (A) First Eligible Year (1994 or 2000) (B) Second Eligible Year (1995 or 2001) (C) Third Eligible Year (1996 or 2002) 1 Enter the years eligible for forgiveness. Back taxes 1       2 Enter the decedent's taxable income. Back taxes Figure taxable income as if a separate return had been filed. Back taxes See the instructions. Back taxes 2       3 Enter the decedent's total tax. Back taxes See the instructions. Back taxes 3       4 Enter the total, if any, of the decedent's taxes not eligible for forgiveness. Back taxes See the instructions. Back taxes 4       5 Subtract line 4 from line 3. Back taxes 5       6 Enter the surviving spouse's taxable income. Back taxes Figure taxable income as if a separate return had been filed. Back taxes See the instructions. Back taxes 6       7 Enter the surviving spouse's total tax. Back taxes See the instructions. Back taxes 7       8 Enter the total, if any, of the surviving spouse's taxes listed in the instructions for line 4. Back taxes 8       9 Subtract line 8 from line 7. Back taxes 9       10 Add lines 5 and 9. Back taxes 10       11 Enter the total tax from the joint return. Back taxes See Table 1 on page 5 for the line number for years before 2002. Back taxes 11       12 Add lines 4 and 8. Back taxes 12       13 Subtract line 12 from line 11. Back taxes 13       14 Divide line 5 by line 10. Back taxes Enter the result as a decimal. Back taxes 14       15 Tax to be forgiven. Back taxes Multiply line 13 by line 14 and enter the result. Back taxes 15       Note. Back taxes If the total of columns (A), (B), and (C) of line 15 (including any amounts shown on line 5 of Worksheet A) is less than $10,000, also complete Worksheet C. Back taxes Attach the computation of the tax to be forgiven or a copy of this worksheet to the decedent's final income tax return or amended tax return (Form 1040X) for each year listed on line 1. Back taxes If filing Form 1040X for an eligible year, enter the amount from line 15 above on Form 1040X in column B of line 10 as a decrease in tax. Back taxes The IRS will determine the amount to be refunded. Back taxes Worksheet C. Back taxes Amount Treated as Tax Payment for Decedent's Last Tax Year Caution: The decedent is entitled to minimum tax forgiveness of $10,000. Back taxes Complete this worksheet only if the total tax forgiven for all eligible years is less than $10,000. Back taxes 1 Minimum tax forgiveness. Back taxes Note. Back taxes Before completing lines 2–9, see Instructions for lines 2–9 of Worksheet C. Back taxes 1 $10,000 2 Enter the taxable income from line 22 (Form 1041) 2       3 Enter the distribution deduction from line 18 (Form 1041) . Back taxes 3       4 Add lines 2 and 3. Back taxes 4       5 Enter exempt income received after death minus expenses allocable to exempt income. Back taxes (See Income received after date of death on page 5. Back taxes ) 5       6 Add lines 4 and 5. Back taxes 6       7 Figure the tax on line 6 using Schedule G (Form 1041). Back taxes 7       8 Figure the tax on line 4 using Schedule G (Form 1041). Back taxes 8       9 Tax on exempt income. Back taxes Subtract line 8 from line 7. Back taxes 9       10 Enter the total of columns (A)–(C) from line 5 of Worksheet A or line 15 of Worksheet B. Back taxes If the decedent was not required to file tax returns for the eligible tax years, enter -0-. Back taxes 10       11 Add lines 9 and 10. Back taxes 11   12 Additional payment allowed. Back taxes If line 11 is $10,000 or more, enter -0- and stop here. Back taxes No additional amount is allowed as a tax payment. Back taxes Otherwise, subtract line 11 from line 1 and enter the result. Back taxes 12   Note. Back taxes The amount on line 12 is allowed as a tax payment for the decedent's last tax year (usually 1995 or 2001). Back taxes Attach the computation of the additional payment allowed or a copy of this worksheet to the original or amended income tax return for the decedent's last tax year. Back taxes If filing Form 1040, include the amount from line 12 above on the “Other payments” line of the form. Back taxes Write "Sec. Back taxes 692(d)(2) Payment" and the amount to the right of the entry space. Back taxes Also indicate whether a Form 1041 is being filed for the decedent's estate. Back taxes If filing Form 1040X, include the amount from line 12 above on Form 1040X on line 15, columns (B) and (C). Back taxes Write “Sec. Back taxes 692(d)(2) Payment” on the dotted line to the left of the entry space. Back taxes Worksheet C. Back taxes Amount Treated as Tax Payment for Decedent's Last Tax Year Caution: The decedent is entitled to minimum tax forgiveness of $10,000. Back taxes Complete this worksheet only if the total tax forgiven for all eligible years is less than $10,000. Back taxes 1 Minimum tax forgiveness. Back taxes Note. Back taxes Before completing lines 2–9, see Instructions for lines 2–9 of Worksheet C. Back taxes 1 $10,000 2 Enter the taxable income from line 22 (Form 1041) 2       3 Enter the distribution deduction from line 18 (Form 1041) . Back taxes 3       4 Add lines 2 and 3. Back taxes 4       5 Enter exempt income received after death minus expenses allocable to exempt income. Back taxes (See Income received after date of death on page 5. Back taxes ) 5       6 Add lines 4 and 5. Back taxes 6       7 Figure the tax on line 6 using Schedule G (Form 1041). Back taxes 7       8 Figure the tax on line 4 using Schedule G (Form 1041). Back taxes 8       9 Tax on exempt income. Back taxes Subtract line 8 from line 7. Back taxes 9       10 Enter the total of columns (A)–(C) from line 5 of Worksheet A or line 15 of Worksheet B. Back taxes If the decedent was not required to file tax returns for the eligible tax years, enter -0-. Back taxes 10       11 Add lines 9 and 10. Back taxes 11   12 Additional payment allowed. Back taxes If line 11 is $10,000 or more, enter -0- and stop here. Back taxes No additional amount is allowed as a tax payment. Back taxes Otherwise, subtract line 11 from line 1 and enter the result. Back taxes 12   Note. Back taxes The amount on line 12 is allowed as a tax payment for the decedent's last tax year (usually 1995 or 2001). Back taxes Attach the computation of the additional payment allowed or a copy of this worksheet to the original or amended income tax return for the decedent's last tax year. Back taxes If filing Form 1040, include the amount from line 12 above on the “Other payments” line of the form. Back taxes Write "Sec. Back taxes 692(d)(2) Payment" and the amount to the right of the entry space. Back taxes Also indicate whether a Form 1041 is being filed for the decedent's estate. Back taxes If filing Form 1040X, include the amount from line 12 above on Form 1040X on line 15, columns (B) and (C). Back taxes Write “Sec. Back taxes 692(d)(2) Payment” on the dotted line to the left of the entry space. Back taxes How To Get Tax Help Special IRS assistance. Back taxes   The IRS is providing special help for those affected by the terrorist attacks, as well as survivors and personal representatives of the victims. Back taxes We have set up a special toll-free number for people who may have trouble filing or paying their taxes because they were affected by the terrorist attacks, or who have other tax issues related to the attacks. Back taxes Call 1–866–562–5227 Monday through Friday In English–7 a. Back taxes m. Back taxes to 10 p. Back taxes m. Back taxes local time In Spanish–8 a. Back taxes m. Back taxes to 9:30 p. Back taxes m. Back taxes local time   The IRS web site at www. Back taxes irs. Back taxes gov has notices and other tax relief information. Back taxes Check it periodically for any new guidance or to see if Congress has enacted new legislation. Back taxes   Business taxpayers affected by the attacks can e-mail their questions to corp. Back taxes disaster. Back taxes relief@irs. Back taxes gov. Back taxes   For current information on Presidentially declared disaster areas, check the Federal Emergency Management Agency Web site at www. Back taxes fema. Back taxes gov. Back taxes Other help from the IRS. Back taxes   You can get help with unresolved tax issues, order free publications and forms, ask tax questions, and get more information from the IRS in several ways. Back taxes By selecting the method that is best for you, you will have quick and easy access to tax help. Back taxes Contacting your Taxpayer Advocate. Back taxes   If you have attempted to deal with an IRS problem unsuccessfully, you should contact your Taxpayer Advocate. Back taxes   The Taxpayer Advocate represents your interests and concerns within the IRS by protecting your rights and resolving problems that have not been fixed through normal channels. Back taxes While Taxpayer Advocates cannot change the tax law or make a technical tax decision, they can clear up problems that resulted from previous contacts and ensure that your case is given a complete and impartial review. Back taxes   To contact your Taxpayer Advocate: Call the Taxpayer Advocate at 1–877–777–4778. Back taxes Call the IRS at 1–800–829–1040. Back taxes Call, write, or fax the Taxpayer Advocate office in your area. Back taxes Call 1–800–829–4059 if you are a TTY/TDD user. Back taxes   For more information, see Publication 1546, The Taxpayer Advocate Service of the IRS. Back taxes Free tax services. Back taxes   To find out what services are available, get Publication 910, Guide to Free Tax Services. Back taxes It contains a list of free tax publications and an index of tax topics. Back taxes It also describes other free tax information services, including tax education and assistance programs and a list of TeleTax topics. Back taxes Personal computer. Back taxes With your personal computer and modem, you can access the IRS on the Internet at www. Back taxes irs. Back taxes gov. Back taxes While visiting our web site, you can: Find answers to questions you may have. Back taxes Download forms and publications or search for forms and pub