File your Taxes for Free!
  • Get your maximum refund*
  • 100% accurate calculations guaranteed*

TurboTax Federal Free Edition - File Taxes Online

Don't let filing your taxes get you down! We'll help make it as easy as possible. With e-file and direct deposit, there's no faster way to get your refund!

Approved TurboTax Affiliate Site. TurboTax and TurboTax Online, among others, are registered trademarks and/or service marks of Intuit Inc. in the United States and other countries. Other parties' trademarks or service marks are the property of the respective owners.


© 2012 - 2018 All rights reserved.

This is an Approved TurboTax Affiliate site. TurboTax and TurboTax Online, among other are registered trademarks and/or service marks of Intuit, Inc. in the United States and other countries. Other parties' trademarks or service marks are the property of the respective owners.
When discussing "Free e-file", note that state e-file is an additional fee. E-file fees do not apply to New York state returns. Prices are subject to change without notice. E-file and get your refund faster
*If you pay an IRS or state penalty or interest because of a TurboTax calculations error, we'll pay you the penalty and interest.
*Maximum Refund Guarantee - or Your Money Back: If you get a larger refund or smaller tax due from another tax preparation method, we'll refund the applicable TurboTax federal and/or state purchase price paid. TurboTax Federal Free Edition customers are entitled to payment of $14.99 and a refund of your state purchase price paid. Claims must be submitted within sixty (60) days of your TurboTax filing date and no later than 6/15/14. E-file, Audit Defense, Professional Review, Refund Transfer and technical support fees are excluded. This guarantee cannot be combined with the TurboTax Satisfaction (Easy) Guarantee. *We're so confident your return will be done right, we guarantee it. Accurate calculations guaranteed. If you pay an IRS or state penalty or interest because of a TurboTax calculations error, we'll pay you the penalty and interest.
https://turbotax.intuit.com/corp/guarantees.jsp

Can I Electronic File My 1040x

How Do You Fill Out A 1040x FormFiling And Amended Tax ReturnIrs 1040 EzH & R Block Taxes For Free1040ez 2012 Tax Form1040x TurbotaxTaxcut 2011Military TaxFree Irs FilingTurbo Tax 1040ezTurbotax Freedom EditionH & R Block Free FilingFirst Time Filing Taxes College Student1040ezform1040ez Tax Form And BookletH R Block Home 2012File 2009 Taxes Online Free State And FederalElectronic 1040x1040 Ez File OnlineEz 40 Tax FormSelf Employment Tax FormsWhere Can I Get A 2011 Tax FormIrs Gov FormsFree Federal Tax E FilingTax DeductionsWhere To Get 1040ez Form1040ez FormsAmend Colorado Tax ReturnFile My Taxes OnlineCheap State Tax FilingFree Tax FormHow To Amend Income Tax Return1040x For 20121040aState ReturnHelp With 1040xRi 1040nrFile Back Tax1040x AmendmentTaxes For Military

Can I Electronic File My 1040x

Can i electronic file my 1040x 11. Can i electronic file my 1040x   Departing Aliens and the Sailing or Departure Permit Table of Contents Introduction Topics - This chapter discusses: Useful Items - You may want to see: Aliens Not Required To Obtain Sailing or Departure Permits Aliens Required To Obtain Sailing or Departure PermitsGetting a Sailing or Departure Permit Forms To File Paying Taxes and Obtaining Refunds Bond To Ensure Payment Filing Annual U. Can i electronic file my 1040x S. Can i electronic file my 1040x Income Tax Returns Introduction Before leaving the United States, all aliens (except those listed under Aliens Not Required To Obtain Sailing or Departure Permits must obtain a certificate of compliance. Can i electronic file my 1040x This document, also popularly known as the sailing permit or departure permit, is part of the income tax form you must file before leaving. Can i electronic file my 1040x You will receive a sailing or departure permit after filing a Form 1040-C or Form 2063. Can i electronic file my 1040x These forms are discussed in this chapter. Can i electronic file my 1040x To find out if you need a sailing or departure permit, first read Aliens Not Required To Obtain Sailing or Departure Permits . Can i electronic file my 1040x If you do not fall into one of the categories in that discussion, you must obtain a sailing or departure permit. Can i electronic file my 1040x Read Aliens Required To Obtain Sailing or Departure Permits . Can i electronic file my 1040x Topics - This chapter discusses: Who needs a sailing permit, How to get a sailing permit, and Forms you file to get a sailing permit. Can i electronic file my 1040x Useful Items - You may want to see: Form (and Instructions) 1040-C U. Can i electronic file my 1040x S. Can i electronic file my 1040x Departing Alien Income Tax Return 2063 U. Can i electronic file my 1040x S. Can i electronic file my 1040x Departing Alien Income Tax Statement See chapter 12 for information about getting these forms. Can i electronic file my 1040x Aliens Not Required To Obtain Sailing or Departure Permits If you are included in one of the following categories, you do not have to get a sailing or departure permit before leaving the United States. Can i electronic file my 1040x If you are in one of these categories and do not have to get a sailing or departure permit, you must be able to support your claim for exemption with proper identification or give the authority for the exemption. Can i electronic file my 1040x Category 1. Can i electronic file my 1040x   Representatives of foreign governments with diplomatic passports, whether accredited to the United States or other countries, members of their households, and servants accompanying them. Can i electronic file my 1040x Servants who are leaving, but not with a person with a diplomatic passport, must get a sailing or departure permit. Can i electronic file my 1040x However, they can get a sailing or departure permit on Form 2063 without examination of their income tax liability by presenting a letter from the chief of their diplomatic mission certifying that: Their name appears on the “White List” (a list of employees of diplomatic missions), and They do not owe to the United States any income tax, and will not owe any tax up to and including the intended date of departure. Can i electronic file my 1040x   The statement must be presented to an IRS office. Can i electronic file my 1040x Category 2. Can i electronic file my 1040x    Employees of international organizations and foreign governments (other than diplomatic representatives exempt under category 1) and members of their households: Whose compensation for official services is exempt from U. Can i electronic file my 1040x S. Can i electronic file my 1040x tax under U. Can i electronic file my 1040x S. Can i electronic file my 1040x tax laws (described in chapter 10), and Who receive no other income from U. Can i electronic file my 1040x S. Can i electronic file my 1040x sources. Can i electronic file my 1040x If you are an alien in category (1) or (2), above, who filed the waiver under section 247(b) of the Immigration and Nationality Act, you must get a sailing or departure permit. Can i electronic file my 1040x This is true even if your income is exempt from U. Can i electronic file my 1040x S. Can i electronic file my 1040x tax because of an income tax treaty, consular agreement, or international agreement. Can i electronic file my 1040x Category 3. Can i electronic file my 1040x   Alien students, industrial trainees, and exchange visitors, including their spouses and children, who enter on an “F-1,” “F-2,” “H-3,” “H-4,” “J-1,” “J-2,” or “Q” visa only and who receive no income from U. Can i electronic file my 1040x S. Can i electronic file my 1040x sources while in the United States under those visas other than: Allowances to cover expenses incident to study or training in the United States, such as expenses for travel, maintenance, and tuition, The value of any services or food and lodging connected with this study or training, Income from employment authorized by the U. Can i electronic file my 1040x S. Can i electronic file my 1040x Citizenship and Immigration Services (USCIS), or Interest income on deposits that is not effectively connected with a U. Can i electronic file my 1040x S. Can i electronic file my 1040x trade or business. Can i electronic file my 1040x (See Interest Income in chapter 3. Can i electronic file my 1040x ) Category 4. Can i electronic file my 1040x   Alien students, including their spouses and children, who enter on an “M-1” or “M-2” visa only and who receive no income from U. Can i electronic file my 1040x S. Can i electronic file my 1040x sources while in the United States under those visas, other than: Income from employment authorized by the U. Can i electronic file my 1040x S. Can i electronic file my 1040x Citizenship and Immigration Services (USCIS) or Interest income on deposits that is not effectively connected with a U. Can i electronic file my 1040x S. Can i electronic file my 1040x trade or business. Can i electronic file my 1040x (See Interest Income in chapter 3. Can i electronic file my 1040x ) Category 5. Can i electronic file my 1040x   Certain other aliens temporarily in the United States who have received no taxable income during the tax year up to and including the date of departure or during the preceding tax year. Can i electronic file my 1040x If the IRS has reason to believe that an alien has received income subject to tax and that the collection of income tax is jeopardized by departure, it may then require the alien to obtain a sailing or departure permit. Can i electronic file my 1040x Aliens in this category are: Alien military trainees who enter the United States for training under the sponsorship of the Department of Defense and who leave the United States on official military travel orders, Alien visitors for business on a “B-1” visa, or on both a “B-1” visa and a “B-2” visa, who do not remain in the United States or a U. Can i electronic file my 1040x S. Can i electronic file my 1040x possession for more than 90 days during the tax year, Alien visitors for pleasure on a “B-2” visa, Aliens in transit through the United States or any of its possessions on a “C-1” visa, or under a contract, such as a bond agreement, between a transportation line and the Attorney General, and Aliens who enter the United States on a border-crossing identification card or for whom passports, visas, and border-crossing identification cards are not required, if they are: Visitors for pleasure, Visitors for business who do not remain in the United States or a U. Can i electronic file my 1040x S. Can i electronic file my 1040x possession for more than 90 days during the tax year, or In transit through the United States or any of its possessions. Can i electronic file my 1040x Category 6. Can i electronic file my 1040x   Alien residents of Canada or Mexico who frequently commute between that country and the United States for employment, and whose wages are subject to the withholding of U. Can i electronic file my 1040x S. Can i electronic file my 1040x tax. Can i electronic file my 1040x Aliens Required To Obtain Sailing or Departure Permits If you do not fall into one of the categories listed under Aliens Not Required To Obtain Sailing or Departure Permits, you must obtain a sailing or departure permit. Can i electronic file my 1040x To obtain a permit, file Form 1040-C or Form 2063 (whichever applies) with your local IRS office before you leave the United States. Can i electronic file my 1040x See Forms To File , later. Can i electronic file my 1040x You must also pay all the tax shown as due on Form 1040-C and any taxes due for past years. Can i electronic file my 1040x See Paying Taxes and Obtaining Refunds , later. Can i electronic file my 1040x Getting a Sailing or Departure Permit The following discussion covers when and where to get your sailing permit. Can i electronic file my 1040x Where to get a sailing or departure permit. Can i electronic file my 1040x   If you have been working in the United States, you should get the permit from an IRS office in the area of your employment, or you may obtain one from an IRS office in the area of your departure. Can i electronic file my 1040x When to get a sailing or departure permit. Can i electronic file my 1040x   You should get your sailing or departure permit at least 2 weeks before you plan to leave. Can i electronic file my 1040x You cannot apply earlier than 30 days before your planned departure date. Can i electronic file my 1040x Do not wait until the last minute in case there are unexpected problems. Can i electronic file my 1040x Papers to submit. Can i electronic file my 1040x   Getting your sailing or departure permit will go faster if you bring to the IRS office papers and documents related to your income and your stay in the United States. Can i electronic file my 1040x Bring the following records with you if they apply. Can i electronic file my 1040x Your passport and alien registration card or visa. Can i electronic file my 1040x Copies of your U. Can i electronic file my 1040x S. Can i electronic file my 1040x income tax returns filed for the past 2 years. Can i electronic file my 1040x If you were in the United States for less than 2 years, bring the income tax returns you filed for that period. Can i electronic file my 1040x Receipts for income taxes paid on these returns. Can i electronic file my 1040x Receipts, bank records, canceled checks, and other documents that prove your deductions, business expenses, and dependents claimed on your returns. Can i electronic file my 1040x A statement from each employer showing wages paid and tax withheld from January 1 of the current year to the date of departure if you were an employee. Can i electronic file my 1040x If you were self-employed, you must bring a statement of income and expenses up to the date you plan to leave. Can i electronic file my 1040x Proof of estimated tax payments for the past year and this year. Can i electronic file my 1040x Documents showing any gain or loss from the sale of personal property and/or real property, including capital assets and merchandise. Can i electronic file my 1040x Documents relating to scholarship or fellowship grants including: Verification of the grantor, source, and purpose of the grant. Can i electronic file my 1040x Copies of the application for, and approval of, the grant. Can i electronic file my 1040x A statement of the amount paid, and your duties and obligations under the grant. Can i electronic file my 1040x A list of any previous grants. Can i electronic file my 1040x Documents indicating you qualify for any special tax treaty benefits claimed. Can i electronic file my 1040x Document verifying your date of departure from the United States, such as an airline ticket. Can i electronic file my 1040x Document verifying your U. Can i electronic file my 1040x S. Can i electronic file my 1040x taxpayer identification number, such as a social security card or an IRS issued Notice CP 565 showing your individual taxpayer identification number (ITIN). Can i electronic file my 1040x Note. Can i electronic file my 1040x   If you are married and reside in a community property state, also bring the above-listed documents for your spouse. Can i electronic file my 1040x This applies whether or not your spouse requires a permit. Can i electronic file my 1040x Forms To File If you must get a sailing or departure permit, you must file Form 2063 or Form 1040-C. Can i electronic file my 1040x Employees in the IRS office can assist in filing these forms. Can i electronic file my 1040x Both forms have a “certificate of compliance” section. Can i electronic file my 1040x When the certificate of compliance is signed by an agent of the Field Assistance Area Director, it certifies that your U. Can i electronic file my 1040x S. Can i electronic file my 1040x tax obligations have been satisfied according to available information. Can i electronic file my 1040x Your Form 1040-C copy of the signed certificate, or the one detached from Form 2063, is your sailing or departure permit. Can i electronic file my 1040x Form 2063 This is a short form that asks for certain information but does not include a tax computation. Can i electronic file my 1040x The following departing aliens can get their sailing or departure permits by filing Form 2063. Can i electronic file my 1040x Aliens, whether resident or nonresident, who have had no taxable income for the tax year up to and including the date of departure and for the preceding year, if the period for filing the income tax return for that year has not expired. Can i electronic file my 1040x Resident aliens who have received taxable income during the tax year or preceding year and whose departure will not hinder the collection of any tax. Can i electronic file my 1040x However, if the IRS has information indicating that the aliens are leaving to avoid paying their income tax, they must file a Form 1040-C. Can i electronic file my 1040x Aliens in either of these categories who have not filed an income tax return or paid income tax for any tax year must file the return and pay the income tax before they can be issued a sailing or departure permit on Form 2063. Can i electronic file my 1040x The sailing or departure permit detached from Form 2063 can be used for all departures during the current year. Can i electronic file my 1040x However, the IRS may cancel the sailing or departure permit for any later departure if it believes the collection of income tax is jeopardized by that later departure. Can i electronic file my 1040x Form 1040-C If you must get a sailing or departure permit and you do not qualify to file Form 2063, you must file Form 1040-C. Can i electronic file my 1040x Ordinarily, all income received or reasonably expected to be received during the tax year up to and including the date of departure must be reported on Form 1040-C and the tax on it must be paid. Can i electronic file my 1040x When you pay any tax shown as due on the Form 1040-C, and you file all returns and pay all tax due for previous years, you will receive a sailing or departure permit. Can i electronic file my 1040x However, the IRS may permit you to furnish a bond guaranteeing payment instead of paying the taxes for certain years. Can i electronic file my 1040x See Bond To Ensure Payment , discussed later. Can i electronic file my 1040x The sailing or departure permit issued under the conditions in this paragraph is only for the specific departure for which it is issued. Can i electronic file my 1040x Returning to the United States. Can i electronic file my 1040x   If you furnish the IRS with information showing, to the satisfaction of the IRS, that you intend to return to the United States and that your departure does not jeopardize the collection of income tax, you can get a sailing or departure permit by filing Form 1040-C without having to pay the tax shown on it. Can i electronic file my 1040x You must, however, file all income tax returns that have not yet been filed as required, and pay all income tax that is due on these returns. Can i electronic file my 1040x   Your Form 1040-C must include all income received and reasonably expected to be received during the entire year of departure. Can i electronic file my 1040x The sailing or departure permit issued with this Form 1040-C can be used for all departures during the current year. Can i electronic file my 1040x However, the Service may cancel the sailing or departure permit for any later departure if the payment of income tax appears to be in jeopardy. Can i electronic file my 1040x Joint return on Form 1040-C. Can i electronic file my 1040x   Departing husbands and wives who are nonresident aliens cannot file joint returns. Can i electronic file my 1040x However, if both spouses are resident aliens, they can file a joint return on Form 1040-C if: Both spouses can reasonably be expected to qualify to file a joint return at the normal close of their tax year, and The tax years of the spouses end at the same time. Can i electronic file my 1040x Paying Taxes and Obtaining Refunds You must pay all tax shown as due on the Form 1040-C at the time of filing it, except when a bond is furnished, or the IRS is satisfied that your departure does not jeopardize the collection of income tax. Can i electronic file my 1040x You must also pay any taxes due for past years. Can i electronic file my 1040x If the tax computation on Form 1040-C results in an overpayment, there is no tax to pay at the time you file that return. Can i electronic file my 1040x However, the IRS cannot provide a refund at the time of departure. Can i electronic file my 1040x If you are due a refund, you must file either Form 1040NR or Form 1040NR-EZ at the end of the tax year. Can i electronic file my 1040x Bond To Ensure Payment Usually, you must pay the tax shown as due on Form 1040-C when you file it. Can i electronic file my 1040x However, if you pay all taxes due that you owe for prior years, you can furnish a bond guaranteeing payment instead of paying the income taxes shown as due on the Form 1040-C or the tax return for the preceding year if the period for filing that return has not expired. Can i electronic file my 1040x The bond must equal the tax due plus interest to the date of payment as figured by the IRS. Can i electronic file my 1040x Information about the form of bond and security on it can be obtained from your IRS office. Can i electronic file my 1040x Filing Annual U. Can i electronic file my 1040x S. Can i electronic file my 1040x Income Tax Returns Form 1040-C is not an annual U. Can i electronic file my 1040x S. Can i electronic file my 1040x income tax return. Can i electronic file my 1040x If an income tax return is required by law, that return must be filed even though a Form 1040-C has already been filed. Can i electronic file my 1040x Chapters 5 and 7 discuss filing an annual U. Can i electronic file my 1040x S. Can i electronic file my 1040x income tax return. Can i electronic file my 1040x The tax paid with Form 1040-C should be taken as a credit against the tax liability for the entire tax year on your annual U. Can i electronic file my 1040x S. Can i electronic file my 1040x income tax return. Can i electronic file my 1040x Prev  Up  Next   Home   More Online Publications
Print - Click this link to Print this page

Security Forms

IRS Contractor Investigation Risk Assessment Checklist (RAC)

IRS contractors who require a background investigation prior to starting work on an IRS contract must complete the RAC xls spreadsheet. The spreadsheet is completed by the vendor and individual contractor, and should be forwarded to both the COTR of record and the Contractor Security Lifecycle Program (CSLP) office.

All fields on Tab 1 of the RAC must be completed. Tab 2 contains instructions for each field. The spreadsheet contains a variety of information required for entry into various IRS systems to initiate and/or update the contractor investigation. These systems include but are not limited to:

• PBIP (PIV Background Investigation Process) – the contractor lifecycle tracking system, which tracks personal, investigation, training, badge, and separation information.
• USAccess – government-wide system used to submit fingerprints to OPM for a criminal check.
• ABIS (Automated Background Investigation System) – the system used to initiate the actual IRS investigation.
• e-QIP – the OPM  system used to complete the SF85 or SF85P (Questionnaire for Public Trust Positions)

Other forms that may be required prior to the investigation initiation may include the Fair Credit Reporting Act (Form 13440), Tax Check Notice (Form 1379), and the Declaration for Federal Employment (OF 0306).  You will be notified regarding which forms are required when you are contacted about initiating investigations for a specific contract with the IRS.  

If you have questions or concerns please contact Contractor Security Lifecycle Program office.  Be sure to include the Contracting Officer’s Technical Representative (COTR) on any questions or communications with CSLP.

Risk Assessment Spreadsheet
13340 - Fair Credit Reporting Act
1379 - Tax Record Check Notice
OF-306 - Declaration for Federal Employment
Page Last Reviewed or Updated: 03-Feb-2014

The Can I Electronic File My 1040x

Can i electronic file my 1040x 2. Can i electronic file my 1040x   Accounting Periods and Methods Table of Contents Introduction Useful Items - You may want to see: Accounting Periods Accounting MethodsCash Method Accrual Method Combination Method Inventories Uniform Capitalization Rules Special Methods Change in Accounting Method Introduction You must figure your taxable income and file an income tax return for an annual accounting period called a tax year. Can i electronic file my 1040x Also, you must consistently use an accounting method that clearly shows your income and expenses for the tax year. Can i electronic file my 1040x Useful Items - You may want to see: Publication 538 Accounting Periods and Methods See chapter 12 for information about getting publications and forms. Can i electronic file my 1040x Accounting Periods When preparing a statement of income and expenses (generally your income tax return), you must use your books and records for a specific interval of time called an accounting period. Can i electronic file my 1040x The annual accounting period for your income tax return is called a tax year. Can i electronic file my 1040x You can use one of the following tax years. Can i electronic file my 1040x A calendar tax year. Can i electronic file my 1040x A fiscal tax year. Can i electronic file my 1040x Unless you have a required tax year, you adopt a tax year by filing your first income tax return using that tax year. Can i electronic file my 1040x A required tax year is a tax year required under the Internal Revenue Code or the Income Tax Regulations. Can i electronic file my 1040x Calendar tax year. Can i electronic file my 1040x   A calendar tax year is 12 consecutive months beginning January 1 and ending December 31. Can i electronic file my 1040x   You must adopt the calendar tax year if any of the following apply. Can i electronic file my 1040x You do not keep books. Can i electronic file my 1040x You have no annual accounting period. Can i electronic file my 1040x Your present tax year does not qualify as a fiscal year. Can i electronic file my 1040x Your use of the calendar tax year is required under the Internal Revenue Code or the Income Tax Regulations. Can i electronic file my 1040x   If you filed your first income tax return using the calendar tax year and you later begin business as a sole proprietor, you must continue to use the calendar tax year unless you get IRS approval to change it or are otherwise allowed to change it without IRS approval. Can i electronic file my 1040x For more information, see Change in tax year, later. Can i electronic file my 1040x   If you adopt the calendar tax year, you must maintain your books and records and report your income and expenses for the period from January 1 through December 31 of each year. Can i electronic file my 1040x Fiscal tax year. Can i electronic file my 1040x   A fiscal tax year is 12 consecutive months ending on the last day of any month except December. Can i electronic file my 1040x A 52-53-week tax year is a fiscal tax year that varies from 52 to 53 weeks but does not have to end on the last day of a month. Can i electronic file my 1040x   If you adopt a fiscal tax year, you must maintain your books and records and report your income and expenses using the same tax year. Can i electronic file my 1040x   For more information on a fiscal tax year, including a 52-53-week tax year, see Publication 538. Can i electronic file my 1040x Change in tax year. Can i electronic file my 1040x   Generally, you must file Form 1128, Application To Adopt, Change, or Retain a Tax Year, to request IRS approval to change your tax year. Can i electronic file my 1040x See the Instructions for Form 1128 for exceptions. Can i electronic file my 1040x If you qualify for an automatic approval request, a user fee is not required. Can i electronic file my 1040x If you do not qualify for automatic approval, a ruling must be requested. Can i electronic file my 1040x See the instructions for Form 1128 for information about user fees if you are requesting a ruling. Can i electronic file my 1040x Accounting Methods An accounting method is a set of rules used to determine when and how income and expenses are reported. Can i electronic file my 1040x Your accounting method includes not only the overall method of accounting you use, but also the accounting treatment you use for any material item. Can i electronic file my 1040x You choose an accounting method for your business when you file your first income tax return that includes a Schedule C for the business. Can i electronic file my 1040x After that, if you want to change your accounting method, you must generally get IRS approval. Can i electronic file my 1040x See Change in Accounting Method, later. Can i electronic file my 1040x Kinds of methods. Can i electronic file my 1040x   Generally, you can use any of the following accounting methods. Can i electronic file my 1040x Cash method. Can i electronic file my 1040x An accrual method. Can i electronic file my 1040x Special methods of accounting for certain items of income and expenses. Can i electronic file my 1040x Combination method using elements of two or more of the above. Can i electronic file my 1040x You must use the same accounting method to figure your taxable income and to keep your books. Can i electronic file my 1040x Also, you must use an accounting method that clearly shows your income. Can i electronic file my 1040x Business and personal items. Can i electronic file my 1040x   You can account for business and personal items under different accounting methods. Can i electronic file my 1040x For example, you can figure your business income under an accrual method, even if you use the cash method to figure personal items. Can i electronic file my 1040x Two or more businesses. Can i electronic file my 1040x   If you have two or more separate and distinct businesses, you can use a different accounting method for each if the method clearly reflects the income of each business. Can i electronic file my 1040x They are separate and distinct only if you maintain complete and separate books and records for each business. Can i electronic file my 1040x Cash Method Most individuals and many sole proprietors with no inventory use the cash method because they find it easier to keep cash method records. Can i electronic file my 1040x However, if an inventory is necessary to account for your income, you must generally use an accrual method of accounting for sales and purchases. Can i electronic file my 1040x For more information, see Inventories, later. Can i electronic file my 1040x Income Under the cash method, include in your gross income all items of income you actually or constructively receive during your tax year. Can i electronic file my 1040x If you receive property or services, you must include their fair market value in income. Can i electronic file my 1040x Example. Can i electronic file my 1040x On December 30, 2012, Mrs. Can i electronic file my 1040x Sycamore sent you a check for interior decorating services you provided to her. Can i electronic file my 1040x You received the check on January 2, 2013. Can i electronic file my 1040x You must include the amount of the check in income for 2013. Can i electronic file my 1040x Constructive receipt. Can i electronic file my 1040x   You have constructive receipt of income when an amount is credited to your account or made available to you without restriction. Can i electronic file my 1040x You do not need to have possession of it. Can i electronic file my 1040x If you authorize someone to be your agent and receive income for you, you are treated as having received it when your agent received it. Can i electronic file my 1040x Example. Can i electronic file my 1040x Interest is credited to your bank account in December 2013. Can i electronic file my 1040x You do not withdraw it or enter it into your passbook until 2014. Can i electronic file my 1040x You must include it in your gross income for 2013. Can i electronic file my 1040x Delaying receipt of income. Can i electronic file my 1040x   You cannot hold checks or postpone taking possession of similar property from one tax year to another to avoid paying tax on the income. Can i electronic file my 1040x You must report the income in the year the property is received or made available to you without restriction. Can i electronic file my 1040x Example. Can i electronic file my 1040x Frances Jones, a service contractor, was entitled to receive a $10,000 payment on a contract in December 2013. Can i electronic file my 1040x She was told in December that her payment was available. Can i electronic file my 1040x At her request, she was not paid until January 2014. Can i electronic file my 1040x She must include this payment in her 2013 income because it was constructively received in 2013. Can i electronic file my 1040x Checks. Can i electronic file my 1040x   Receipt of a valid check by the end of the tax year is constructive receipt of income in that year, even if you cannot cash or deposit the check until the following year. Can i electronic file my 1040x Example. Can i electronic file my 1040x Dr. Can i electronic file my 1040x Redd received a check for $500 on December 31, 2013, from a patient. Can i electronic file my 1040x She could not deposit the check in her business account until January 2, 2014. Can i electronic file my 1040x She must include this fee in her income for 2013. Can i electronic file my 1040x Debts paid by another person or canceled. Can i electronic file my 1040x   If your debts are paid by another person or are canceled by your creditors, you may have to report part or all of this debt relief as income. Can i electronic file my 1040x If you receive income in this way, you constructively receive the income when the debt is canceled or paid. Can i electronic file my 1040x For more information, see Canceled Debt under Kinds of Income in chapter 5. Can i electronic file my 1040x Repayment of income. Can i electronic file my 1040x   If you include an amount in income and in a later year you have to repay all or part of it, you can usually deduct the repayment in the year in which you make it. Can i electronic file my 1040x If the amount you repay is over $3,000, a special rule applies. Can i electronic file my 1040x For details about the special rule, see Repayments in chapter 11 of Publication 535, Business Expenses. Can i electronic file my 1040x Expenses Under the cash method, you generally deduct expenses in the tax year in which you actually pay them. Can i electronic file my 1040x This includes business expenses for which you contest liability. Can i electronic file my 1040x However, you may not be able to deduct an expense paid in advance or you may be required to capitalize certain costs, as explained later under Uniform Capitalization Rules. Can i electronic file my 1040x Expenses paid in advance. Can i electronic file my 1040x   You can deduct an expense you pay in advance only in the year to which it applies. Can i electronic file my 1040x Example. Can i electronic file my 1040x You are a calendar year taxpayer and you pay $1,000 in 2013 for a business insurance policy effective for one year, beginning July 1. Can i electronic file my 1040x You can deduct $500 in 2013 and $500 in 2014. Can i electronic file my 1040x Accrual Method Under an accrual method of accounting, you generally report income in the year earned and deduct or capitalize expenses in the year incurred. Can i electronic file my 1040x The purpose of an accrual method of accounting is to match income and expenses in the correct year. Can i electronic file my 1040x Income—General Rule Under an accrual method, you generally include an amount in your gross income for the tax year in which all events that fix your right to receive the income have occurred and you can determine the amount with reasonable accuracy. Can i electronic file my 1040x Example. Can i electronic file my 1040x You are a calendar year accrual method taxpayer. Can i electronic file my 1040x You sold a computer on December 28, 2013. Can i electronic file my 1040x You billed the customer in the first week of January 2014, but you did not receive payment until February 2014. Can i electronic file my 1040x You must include the amount received for the computer in your 2013 income. Can i electronic file my 1040x Income—Special Rules The following are special rules that apply to advance payments, estimating income, and changing a payment schedule for services. Can i electronic file my 1040x Estimated income. Can i electronic file my 1040x   If you include a reasonably estimated amount in gross income, and later determine the exact amount is different, take the difference into account in the tax year in which you make the determination. Can i electronic file my 1040x Change in payment schedule for services. Can i electronic file my 1040x   If you perform services for a basic rate specified in a contract, you must accrue the income at the basic rate, even if you agree to receive payments at a lower rate until you complete the services and then receive the difference. Can i electronic file my 1040x Advance payments for services. Can i electronic file my 1040x   Generally, you report an advance payment for services to be performed in a later tax year as income in the year you receive the payment. Can i electronic file my 1040x However, if you receive an advance payment for services you agree to perform by the end of the next tax year, you can elect to postpone including the advance payment in income until the next tax year. Can i electronic file my 1040x However, you cannot postpone including any payment beyond that tax year. Can i electronic file my 1040x   For more information, see Advance Payment for Services under Accrual Method in Publication 538. Can i electronic file my 1040x That publication also explains special rules for reporting the following types of income. Can i electronic file my 1040x Advance payments for service agreements. Can i electronic file my 1040x Prepaid rent. Can i electronic file my 1040x Advance payments for sales. Can i electronic file my 1040x   Special rules apply to including income from advance payments on agreements for future sales or other dispositions of goods you hold primarily for sale to your customers in the ordinary course of your business. Can i electronic file my 1040x If the advance payments are for contracts involving both the sale and service of goods, it may be necessary to treat them as two agreements. Can i electronic file my 1040x An agreement includes a gift certificate that can be redeemed for goods. Can i electronic file my 1040x Treat amounts that are due and payable as amounts you received. Can i electronic file my 1040x   You generally include an advance payment in income for the tax year in which you receive it. Can i electronic file my 1040x However, you can use an alternative method. Can i electronic file my 1040x For information about the alternative method, see Publication 538. Can i electronic file my 1040x Expenses Under an accrual method of accounting, you generally deduct or capitalize a business expense when both the following apply. Can i electronic file my 1040x The all-events test has been met. Can i electronic file my 1040x The test has been met when: All events have occurred that fix the fact of liability, and The liability can be determined with reasonable accuracy. Can i electronic file my 1040x Economic performance has occurred. Can i electronic file my 1040x Economic performance. Can i electronic file my 1040x   You generally cannot deduct or capitalize a business expense until economic performance occurs. Can i electronic file my 1040x If your expense is for property or services provided to you, or for your use of property, economic performance occurs as the property or services are provided or as the property is used. Can i electronic file my 1040x If your expense is for property or services you provide to others, economic performance occurs as you provide the property or services. Can i electronic file my 1040x An exception allows certain recurring items to be treated as incurred during a tax year even though economic performance has not occurred. Can i electronic file my 1040x For more information on economic performance, see Economic Performance under Accrual Method in Publication 538. Can i electronic file my 1040x Example. Can i electronic file my 1040x You are a calendar year taxpayer and use an accrual method of accounting. Can i electronic file my 1040x You buy office supplies in December 2013. Can i electronic file my 1040x You receive the supplies and the bill in December, but you pay the bill in January 2014. Can i electronic file my 1040x You can deduct the expense in 2013 because all events that fix the fact of liability have occurred, the amount of the liability could be reasonably determined, and economic performance occurred in that year. Can i electronic file my 1040x Your office supplies may qualify as a recurring expense. Can i electronic file my 1040x In that case, you can deduct them in 2013 even if the supplies are not delivered until 2014 (when economic performance occurs). Can i electronic file my 1040x Keeping inventories. Can i electronic file my 1040x   When the production, purchase, or sale of merchandise is an income-producing factor in your business, you must generally take inventories into account at the beginning and the end of your tax year. Can i electronic file my 1040x If you must account for an inventory, you must generally use an accrual method of accounting for your purchases and sales. Can i electronic file my 1040x For more information, see Inventories , later. Can i electronic file my 1040x Special rule for related persons. Can i electronic file my 1040x   You cannot deduct business expenses and interest owed to a related person who uses the cash method of accounting until you make the payment and the corresponding amount is includible in the related person's gross income. Can i electronic file my 1040x Determine the relationship, for this rule, as of the end of the tax year for which the expense or interest would otherwise be deductible. Can i electronic file my 1040x If a deduction is not allowed under this rule, the rule will continue to apply even if your relationship with the person ends before the expense or interest is includible in the gross income of that person. Can i electronic file my 1040x   Related persons include members of your immediate family, including only brothers and sisters (either whole or half), your spouse, ancestors, and lineal descendants. Can i electronic file my 1040x For a list of other related persons, see section 267 of the Internal Revenue Code. Can i electronic file my 1040x Combination Method You can generally use any combination of cash, accrual, and special methods of accounting if the combination clearly shows your income and expenses and you use it consistently. Can i electronic file my 1040x However, the following restrictions apply. Can i electronic file my 1040x If an inventory is necessary to account for your income, you must generally use an accrual method for purchases and sales. Can i electronic file my 1040x (See, however, Inventories, later. Can i electronic file my 1040x ) You can use the cash method for all other items of income and expenses. Can i electronic file my 1040x If you use the cash method for figuring your income, you must use the cash method for reporting your expenses. Can i electronic file my 1040x If you use an accrual method for reporting your expenses, you must use an accrual method for figuring your income. Can i electronic file my 1040x If you use a combination method that includes the cash method, treat that combination method as the cash method. Can i electronic file my 1040x Inventories Generally, if you produce, purchase, or sell merchandise in your business, you must keep an inventory and use the accrual method for purchases and sales of merchandise. Can i electronic file my 1040x However, the following taxpayers can use the cash method of accounting even if they produce, purchase, or sell merchandise. Can i electronic file my 1040x These taxpayers can also account for inventoriable items as materials and supplies that are not incidental (discussed later). Can i electronic file my 1040x A qualifying taxpayer under Revenue Procedure 2001-10 in Internal Revenue Bulletin 2001-2. Can i electronic file my 1040x A qualifying small business taxpayer under Revenue Procedure 2002-28 in Internal Revenue Bulletin 2002-18. Can i electronic file my 1040x Qualifying taxpayer. Can i electronic file my 1040x   You are a qualifying taxpayer if: Your average annual gross receipts for each prior tax year ending on or after December 17, 1998, is $1 million or less. Can i electronic file my 1040x (Your average annual gross receipts for a tax year is figured by adding the gross receipts for that tax year and the 2 preceding tax years and dividing by 3. Can i electronic file my 1040x ) Your business is not a tax shelter, as defined under section 448(d)(3) of the Internal Revenue Code. Can i electronic file my 1040x Qualifying small business taxpayer. Can i electronic file my 1040x   You are a qualifying small business taxpayer if: Your average annual gross receipts for each prior tax year ending on or after December 31, 2000, is more than $1 million but not more than $10 million. Can i electronic file my 1040x (Your average annual gross receipts for a tax year is figured by adding the gross receipts for that tax year and the 2 preceding tax years and dividing the total by 3. Can i electronic file my 1040x ) You are not prohibited from using the cash method under section 448 of the Internal Revenue Code. Can i electronic file my 1040x Your principal business activity is an eligible business (described in Publication 538 and Revenue Procedure 2002-28). Can i electronic file my 1040x Business not owned or not in existence for 3 years. Can i electronic file my 1040x   If you did not own your business for all of the 3-tax-year period used in figuring your average annual gross receipts, include the period of any predecessor. Can i electronic file my 1040x If your business has not been in existence for the 3-tax-year period, base your average on the period it has existed including any short tax years, annualizing the short tax year's gross receipts. Can i electronic file my 1040x Materials and supplies that are not incidental. Can i electronic file my 1040x   If you account for inventoriable items as materials and supplies that are not incidental, you will deduct the cost of the items you would otherwise include in inventory in the year you sell the items, or the year you pay for them, whichever is later. Can i electronic file my 1040x If you are a producer, you can use any reasonable method to estimate the raw material in your work in process and finished goods on hand at the end of the year to determine the raw material used to produce finished goods that were sold during the year. Can i electronic file my 1040x Changing accounting method. Can i electronic file my 1040x   If you are a qualifying taxpayer or qualifying small business taxpayer and want to change to the cash method or to account for inventoriable items as non-incidental materials and supplies, you must file Form 3115, Application for Change in Accounting Method. Can i electronic file my 1040x See Change in Accounting Method, later. Can i electronic file my 1040x More information. Can i electronic file my 1040x    For more information about the qualifying taxpayer exception, see Revenue Procedure 2001-10 in Internal Revenue Bulletin 2001-2. Can i electronic file my 1040x For more information about the qualifying small business taxpayer exception, see Revenue Procedure 2002-28 in Internal Revenue Bulletin 2002-18. Can i electronic file my 1040x Items included in inventory. Can i electronic file my 1040x   If you are required to account for inventories, include the following items when accounting for your inventory. Can i electronic file my 1040x Merchandise or stock in trade. Can i electronic file my 1040x Raw materials. Can i electronic file my 1040x Work in process. Can i electronic file my 1040x Finished products. Can i electronic file my 1040x Supplies that physically become a part of the item intended for sale. Can i electronic file my 1040x Valuing inventory. Can i electronic file my 1040x   You must value your inventory at the beginning and end of each tax year to determine your cost of goods sold (Schedule C, line 42). Can i electronic file my 1040x To determine the value of your inventory, you need a method for identifying the items in your inventory and a method for valuing these items. Can i electronic file my 1040x   Inventory valuation rules cannot be the same for all kinds of businesses. Can i electronic file my 1040x The method you use to value your inventory must conform to generally accepted accounting principles for similar businesses and must clearly reflect income. Can i electronic file my 1040x Your inventory practices must be consistent from year to year. Can i electronic file my 1040x More information. Can i electronic file my 1040x   For more information about inventories, see Publication 538. Can i electronic file my 1040x Uniform Capitalization Rules Under the uniform capitalization rules, you must capitalize the direct costs and part of the indirect costs for production or resale activities. Can i electronic file my 1040x Include these costs in the basis of property you produce or acquire for resale, rather than claiming them as a current deduction. Can i electronic file my 1040x You recover the costs through depreciation, amortization, or cost of goods sold when you use, sell, or otherwise dispose of the property. Can i electronic file my 1040x Activities subject to the uniform capitalization rules. Can i electronic file my 1040x   You may be subject to the uniform capitalization rules if you do any of the following, unless the property is produced for your use other than in a business or an activity carried on for profit. Can i electronic file my 1040x Produce real or tangible personal property. Can i electronic file my 1040x For this purpose, tangible personal property includes a film, sound recording, video tape, book, or similar property. Can i electronic file my 1040x Acquire property for resale. Can i electronic file my 1040x Exceptions. Can i electronic file my 1040x   These rules do not apply to the following property. Can i electronic file my 1040x Personal property you acquire for resale if your average annual gross receipts are $10 million or less. Can i electronic file my 1040x Property you produce if you meet either of the following conditions. Can i electronic file my 1040x Your indirect costs of producing the property are $200,000 or less. Can i electronic file my 1040x You use the cash method of accounting and do not account for inventories. Can i electronic file my 1040x For more information, see Inventories, earlier. Can i electronic file my 1040x Special Methods There are special methods of accounting for certain items of income or expense. Can i electronic file my 1040x These include the following. Can i electronic file my 1040x Amortization, discussed in chapter 8 of Publication 535, Business Expenses. Can i electronic file my 1040x Bad debts, discussed in chapter 10 of Publication 535. Can i electronic file my 1040x Depletion, discussed in chapter 9 of Publication 535. Can i electronic file my 1040x Depreciation, discussed in Publication 946, How To Depreciate Property. Can i electronic file my 1040x Installment sales, discussed in Publication 537, Installment Sales. Can i electronic file my 1040x Change in Accounting Method Once you have set up your accounting method, you must generally get IRS approval before you can change to another method. Can i electronic file my 1040x A change in your accounting method includes a change in: Your overall method, such as from cash to an accrual method, and Your treatment of any material item. Can i electronic file my 1040x To get approval, you must file Form 3115, Application for Change in Accounting Method. Can i electronic file my 1040x You can get IRS approval to change an accounting method under either the automatic change procedures or the advance consent request procedures. Can i electronic file my 1040x You may have to pay a user fee. Can i electronic file my 1040x For more information, see the form instructions. Can i electronic file my 1040x Automatic change procedures. Can i electronic file my 1040x   Certain taxpayers can presume to have IRS approval to change their method of accounting. Can i electronic file my 1040x The approval is granted for the tax year for which the taxpayer requests a change (year of change), if the taxpayer complies with the provisions of the automatic change procedures. Can i electronic file my 1040x No user fee is required for an application filed under an automatic change procedure generally covered in Revenue Procedure 2002-9. Can i electronic file my 1040x   Generally, you must use Form 3115 to request an automatic change. Can i electronic file my 1040x For more information, see the Instructions for Form 3115. Can i electronic file my 1040x Prev  Up  Next   Home   More Online Publications