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

Federal Tax Extension

2013 Tax Amendment Form1040ez HelpWhere To File 2012 Federal Income Tax ReturnIrs Gov Com2011 State Tax FormElectronic 1040x2010 1040Tax Filing Extension Deadline 2012Turbotax Free For MilitaryTax Return Amendment1040ez Tax Form InstructionsFiling Taxes For MilitaryTax Form 1040a1040 Ez Tax Return FormWww 1040ez ComTurbo Tax 20052007 Federal Tax Forms1040ez Instructions 2013File Prior Year Taxes2013 1040ezHttps Taxes Hrblock ComWww 1040ez ComFiling State ReturnFree File Taxes On LineFiling TaxesAmend Federal Tax Return FreeVita TaxTaxes1040ez Form InstructionsFree File Federal And State Taxes Online10w40ezFile Tax Extension ElectronicallyCan You File State Taxes For Free2008 Federal Tax FormsH R Block1040ez Forms 2012Amendment 1040x2010 Form 1040 EzTurbotax Military2009 Tax Forms Download

Federal Tax Extension

Federal tax extension 2. Federal tax extension   Ordinary or Capital Gain or Loss Table of Contents IntroductionSection 1231 transactions. Federal tax extension Topics - This chapter discusses: Useful Items - You may want to see: Capital Assets Noncapital AssetsCommodities derivative dealer. Federal tax extension Sales and Exchanges Between Related PersonsGain Is Ordinary Income Nondeductible Loss Other DispositionsSale of a Business Dispositions of Intangible Property Subdivision of Land Timber Precious Metals and Stones, Stamps, and Coins Coal and Iron Ore Conversion Transactions Introduction You must classify your gains and losses as either ordinary or capital (and your capital gains or losses as either short-term or long-term). Federal tax extension You must do this to figure your net capital gain or loss. Federal tax extension For individuals, a net capital gain may be taxed at a different tax rate than ordinary income. Federal tax extension See Capital Gains Tax Rates in chapter 4. Federal tax extension Your deduction for a net capital loss may be limited. Federal tax extension See Treatment of Capital Losses in chapter 4. Federal tax extension Capital gain or loss. Federal tax extension   Generally, you will have a capital gain or loss if you sell or exchange a capital asset. Federal tax extension You also may have a capital gain if your section 1231 transactions result in a net gain. Federal tax extension Section 1231 transactions. Federal tax extension   Section 1231 transactions are sales and exchanges of property held longer than 1 year and either used in a trade or business or held for the production of rents or royalties. Federal tax extension They also include certain involuntary conversions of business or investment property, including capital assets. Federal tax extension See Section 1231 Gains and Losses in chapter 3 for more information. Federal tax extension Topics - This chapter discusses: Capital assets Noncapital assets Sales and exchanges between  related persons Other dispositions Useful Items - You may want to see: Publication 550 Investment Income and Expenses Form (and Instructions) Schedule D (Form 1040) Capital Gains and Losses 4797 Sales of Business Property 8594 Asset Acquisition Statement Under Section 1060 8949 Sales and Other Dispositions of Capital Assets See chapter 5 for information about getting publications and forms. Federal tax extension Capital Assets Almost everything you own and use for personal purposes, pleasure, or investment is a capital asset. Federal tax extension For exceptions, see Noncapital Assets, later. Federal tax extension The following items are examples of capital assets. Federal tax extension Stocks and bonds. Federal tax extension A home owned and occupied by you and your family. Federal tax extension Timber grown on your home property or investment property, even if you make casual sales of the timber. Federal tax extension Household furnishings. Federal tax extension A car used for pleasure or commuting. Federal tax extension Coin or stamp collections. Federal tax extension Gems and jewelry. Federal tax extension Gold, silver, and other metals. Federal tax extension Personal-use property. Federal tax extension   Generally, property held for personal use is a capital asset. Federal tax extension Gain from a sale or exchange of that property is a capital gain. Federal tax extension Loss from the sale or exchange of that property is not deductible. Federal tax extension You can deduct a loss relating to personal-use property only if it results from a casualty or theft. Federal tax extension Investment property. Federal tax extension   Investment property (such as stocks and bonds) is a capital asset, and a gain or loss from its sale or exchange is a capital gain or loss. Federal tax extension This treatment does not apply to property used to produce rental income. Federal tax extension See Business assets, later, under Noncapital Assets. Federal tax extension Release of restriction on land. Federal tax extension   Amounts you receive for the release of a restrictive covenant in a deed to land are treated as proceeds from the sale of a capital asset. Federal tax extension Noncapital Assets A noncapital asset is property that is not a capital asset. Federal tax extension The following kinds of property are not capital assets. Federal tax extension Stock in trade, inventory, and other property you hold mainly for sale to customers in your trade or business. Federal tax extension Inventories are discussed in Publication 538, Accounting Periods and Methods. Federal tax extension But, see the Tip below. Federal tax extension Accounts or notes receivable acquired in the ordinary course of a trade or business for services rendered or from the sale of any properties described in (1), above. Federal tax extension Depreciable property used in your trade or business or as rental property (including section 197 intangibles defined later), even if the property is fully depreciated (or amortized). Federal tax extension Sales of this type of property are discussed in chapter 3. Federal tax extension Real property used in your trade or business or as rental property, even if the property is fully depreciated. Federal tax extension A copyright; a literary, musical, or artistic composition; a letter; a memorandum; or similar property (such as drafts of speeches, recordings, transcripts, manuscripts, drawings, or photographs): Created by your personal efforts, Prepared or produced for you (in the case of a letter, memorandum, or similar property), or Received from a person who created the property or for whom the property was prepared under circumstances (for example, by gift) entitling you to the basis of the person who created the property, or for whom it was prepared or produced. Federal tax extension But, see the Tip below. Federal tax extension U. Federal tax extension S. Federal tax extension Government publications you got from the government for free or for less than the normal sales price or that you acquired under circumstances entitling you to the basis of someone who got the publications for free or for less than the normal sales price. Federal tax extension Any commodities derivative financial instrument (discussed later) held by a commodities derivatives dealer unless it meets both of the following requirements. Federal tax extension It is established to the satisfaction of the IRS that the instrument has no connection to the activities of the dealer as a dealer. Federal tax extension The instrument is clearly identified in the dealer's records as meeting (a) by the end of the day on which it was acquired, originated, or entered into. Federal tax extension Any hedging transaction (defined later) that is clearly identified as a hedging transaction by the end of the day on which it was acquired, originated, or entered into. Federal tax extension Supplies of a type you regularly use or consume in the ordinary course of your trade or business. Federal tax extension You can elect to treat as capital assets certain self-created musical compositions or copyrights you sold or exchanged. Federal tax extension See chapter 4 of Publication 550 for details. Federal tax extension Property held mainly for sale to customers. Federal tax extension   Stock in trade, inventory, and other property you hold mainly for sale to customers in your trade or business are not capital assets. Federal tax extension Inventories are discussed in Publication 538. Federal tax extension Business assets. Federal tax extension   Real property and depreciable property used in your trade or business or as rental property (including section 197 intangibles defined later under Dispositions of Intangible Property) are not capital assets. Federal tax extension The sale or disposition of business property is discussed in chapter 3. Federal tax extension Letters and memoranda. Federal tax extension   Letters, memoranda, and similar property (such as drafts of speeches, recordings, transcripts, manuscripts, drawings, or photographs) are not treated as capital assets (as discussed earlier) if your personal efforts created them or if they were prepared or produced for you. Federal tax extension Nor is this property a capital asset if your basis in it is determined by reference to the person who created it or the person for whom it was prepared. Federal tax extension For this purpose, letters and memoranda addressed to you are considered prepared for you. Federal tax extension If letters or memoranda are prepared by persons under your administrative control, they are considered prepared for you whether or not you review them. Federal tax extension Commodities derivative financial instrument. Federal tax extension   A commodities derivative financial instrument is a commodities contract or other financial instrument for commodities (other than a share of corporate stock, a beneficial interest in a partnership or trust, a note, bond, debenture, or other evidence of indebtedness, or a section 1256 contract) the value or settlement price of which is calculated or determined by reference to a specified index (as defined in section 1221(b) of the Internal Revenue Code). Federal tax extension Commodities derivative dealer. Federal tax extension   A commodities derivative dealer is a person who regularly offers to enter into, assume, offset, assign, or terminate positions in commodities derivative financial instruments with customers in the ordinary course of a trade or business. Federal tax extension Hedging transaction. Federal tax extension   A hedging transaction is any transaction you enter into in the normal course of your trade or business primarily to manage any of the following. Federal tax extension Risk of price changes or currency fluctuations involving ordinary property you hold or will hold. Federal tax extension Risk of interest rate or price changes or currency fluctuations for borrowings you make or will make, or ordinary obligations you incur or will incur. Federal tax extension Sales and Exchanges Between Related Persons This section discusses the rules that may apply to the sale or exchange of property between related persons. Federal tax extension If these rules apply, gains may be treated as ordinary income and losses may not be deductible. Federal tax extension See Transfers to Spouse in chapter 1 for rules that apply to spouses. Federal tax extension Gain Is Ordinary Income If a gain is recognized on the sale or exchange of property to a related person, the gain may be ordinary income even if the property is a capital asset. Federal tax extension It is ordinary income if the sale or exchange is a depreciable property transaction or a controlled partnership transaction. Federal tax extension Depreciable property transaction. Federal tax extension   Gain on the sale or exchange of property, including a leasehold or a patent application, that is depreciable property in the hands of the person who receives it is ordinary income if the transaction is either directly or indirectly between any of the following pairs of entities. Federal tax extension A person and the person's controlled entity or entities. Federal tax extension A taxpayer and any trust in which the taxpayer (or his or her spouse) is a beneficiary unless the beneficiary's interest in the trust is a remote contingent interest; that is, the value of the interest computed actuarially is 5% or less of the value of the trust property. Federal tax extension An executor and a beneficiary of an estate unless the sale or exchange is in satisfaction of a pecuniary bequest (a bequest for a sum of money). Federal tax extension An employer (or any person related to the employer under rules (1), (2), or (3)) and a welfare benefit fund (within the meaning of section 419(e) of the Internal Revenue Code) that is controlled directly or indirectly by the employer (or any person related to the employer). Federal tax extension Controlled entity. Federal tax extension   A person's controlled entity is either of the following. Federal tax extension A corporation in which more than 50% of the value of all outstanding stock, or a partnership in which more than 50% of the capital interest or profits interest, is directly or indirectly owned by or for that person. Federal tax extension An entity whose relationship with that person is one of the following. Federal tax extension A corporation and a partnership if the same persons own more than 50% in value of the outstanding stock of the corporation and more than 50% of the capital interest or profits interest in the partnership. Federal tax extension Two corporations that are members of the same controlled group as defined in section 1563(a) of the Internal Revenue Code, except that “more than 50%” is substituted for “at least 80%” in that definition. Federal tax extension Two S corporations, if the same persons own more than 50% in value of the outstanding stock of each corporation. Federal tax extension Two corporations, one of which is an S corporation, if the same persons own more than 50% in value of the outstanding stock of each corporation. Federal tax extension Controlled partnership transaction. Federal tax extension   A gain recognized in a controlled partnership transaction may be ordinary income. Federal tax extension The gain is ordinary income if it results from the sale or exchange of property that, in the hands of the party who receives it, is a noncapital asset such as trade accounts receivable, inventory, stock in trade, or depreciable or real property used in a trade or business. Federal tax extension   A controlled partnership transaction is a transaction directly or indirectly between either of the following pairs of entities. Federal tax extension A partnership and a person who directly or indirectly owns more than 50% of the capital interest or profits interest in the partnership. Federal tax extension Two partnerships, if the same persons directly or indirectly own more than 50% of the capital interests or profits interests in both partnerships. Federal tax extension Determining ownership. Federal tax extension   In the transactions under Depreciable property transaction and Controlled partnership transaction, earlier, use the following rules to determine the ownership of stock or a partnership interest. Federal tax extension Stock or a partnership interest directly or indirectly owned by or for a corporation, partnership, estate, or trust is considered owned proportionately by or for its shareholders, partners, or beneficiaries. Federal tax extension (However, for a partnership interest owned by or for a C corporation, this applies only to shareholders who directly or indirectly own 5% or more in value of the stock of the corporation. Federal tax extension ) An individual is considered as owning the stock or partnership interest directly or indirectly owned by or for his or her family. Federal tax extension Family includes only brothers, sisters, half-brothers, half-sisters, spouse, ancestors, and lineal descendants. Federal tax extension For purposes of applying (1) or (2), above, stock or a partnership interest constructively owned by a person under (1) is treated as actually owned by that person. Federal tax extension But stock or a partnership interest constructively owned by an individual under (2) is not treated as owned by the individual for reapplying (2) to make another person the constructive owner of that stock or partnership interest. Federal tax extension Nondeductible Loss A loss on the sale or exchange of property between related persons is not deductible. Federal tax extension This applies to both direct and indirect transactions, but not to distributions of property from a corporation in a complete liquidation. Federal tax extension For the list of related persons, see Related persons next. Federal tax extension If a sale or exchange is between any of these related persons and involves the lump-sum sale of a number of blocks of stock or pieces of property, the gain or loss must be figured separately for each block of stock or piece of property. Federal tax extension The gain on each item is taxable. Federal tax extension The loss on any item is nondeductible. Federal tax extension Gains from the sales of any of these items may not be offset by losses on the sales of any of the other items. Federal tax extension Related persons. Federal tax extension   The following is a list of related persons. Federal tax extension Members of a family, including only brothers, sisters, half-brothers, half-sisters, spouse, ancestors (parents, grandparents, etc. Federal tax extension ), and lineal descendants (children, grandchildren, etc. Federal tax extension ). Federal tax extension An individual and a corporation if the individual directly or indirectly owns more than 50% in value of the outstanding stock of the corporation. Federal tax extension Two corporations that are members of the same controlled group as defined in section 267(f) of the Internal Revenue Code. Federal tax extension A trust fiduciary and a corporation if the trust or the grantor of the trust directly or indirectly owns more than 50% in value of the outstanding stock of the corporation. Federal tax extension A grantor and fiduciary, and the fiduciary and beneficiary, of any trust. Federal tax extension Fiduciaries of two different trusts, and the fiduciary and beneficiary of two different trusts, if the same person is the grantor of both trusts. Federal tax extension A tax-exempt educational or charitable organization and a person who directly or indirectly controls the organization, or a member of that person's family. Federal tax extension A corporation and a partnership if the same persons own more than 50% in value of the outstanding stock of the corporation and more than 50% of the capital interest or profits interest in the partnership. Federal tax extension Two S corporations if the same persons own more than 50% in value of the outstanding stock of each corporation. Federal tax extension Two corporations, one of which is an S corporation, if the same persons own more than 50% in value of the outstanding stock of each corporation. Federal tax extension An executor and a beneficiary of an estate unless the sale or exchange is in satisfaction of a pecuniary bequest. Federal tax extension Two partnerships if the same persons directly or indirectly own more than 50% of the capital interests or profits interests in both partnerships. Federal tax extension A person and a partnership if the person directly or indirectly owns more than 50% of the capital interest or profits interest in the partnership. Federal tax extension Partnership interests. Federal tax extension   The nondeductible loss rule does not apply to a sale or exchange of an interest in the partnership between the related persons described in (12) or (13) above. Federal tax extension Controlled groups. Federal tax extension   Losses on transactions between members of the same controlled group described in (3) earlier are deferred rather than denied. Federal tax extension   For more information, see section 267(f) of the Internal Revenue Code. Federal tax extension Ownership of stock or partnership interests. Federal tax extension   In determining whether an individual directly or indirectly owns any of the outstanding stock of a corporation or an interest in a partnership for a loss on a sale or exchange, the following rules apply. Federal tax extension Stock or a partnership interest directly or indirectly owned by or for a corporation, partnership, estate, or trust is considered owned proportionately by or for its shareholders, partners, or beneficiaries. Federal tax extension (However, for a partnership interest owned by or for a C corporation, this applies only to shareholders who directly or indirectly own 5% or more in value of the stock of the corporation. Federal tax extension ) An individual is considered as owning the stock or partnership interest directly or indirectly owned by or for his or her family. Federal tax extension Family includes only brothers, sisters, half-brothers, half-sisters, spouse, ancestors, and lineal descendants. Federal tax extension An individual owning (other than by applying (2)) any stock in a corporation is considered to own the stock directly or indirectly owned by or for his or her partner. Federal tax extension For purposes of applying (1), (2), or (3), stock or a partnership interest constructively owned by a person under (1) is treated as actually owned by that person. Federal tax extension But stock or a partnership interest constructively owned by an individual under (2) or (3) is not treated as owned by the individual for reapplying either (2) or (3) to make another person the constructive owner of that stock or partnership interest. Federal tax extension Indirect transactions. Federal tax extension   You cannot deduct your loss on the sale of stock through your broker if under a prearranged plan a related person or entity buys the same stock you had owned. Federal tax extension This does not apply to a cross-trade between related parties through an exchange that is purely coincidental and is not prearranged. Federal tax extension Property received from a related person. Federal tax extension   If, in a purchase or exchange, you received property from a related person who had a loss that was not allowable and you later sell or exchange the property at a gain, you recognize the gain only to the extent it is more than the loss previously disallowed to the related person. Federal tax extension This rule applies only to the original transferee. Federal tax extension Example 1. Federal tax extension Your brother sold stock to you for $7,600. Federal tax extension His cost basis was $10,000. Federal tax extension His loss of $2,400 was not deductible. Federal tax extension You later sell the same stock to an unrelated party for $10,500, realizing a gain of $2,900 ($10,500 − $7,600). Federal tax extension Your recognized gain is only $500, the gain that is more than the $2,400 loss not allowed to your brother. Federal tax extension Example 2. Federal tax extension Assume the same facts as in Example 1, except that you sell the stock for $6,900 instead of $10,500. Federal tax extension Your recognized loss is only $700 ($7,600 − $6,900). Federal tax extension You cannot deduct the loss not allowed to your brother. Federal tax extension Other Dispositions This section discusses rules for determining the treatment of gain or loss from various dispositions of property. Federal tax extension Sale of a Business The sale of a business usually is not a sale of one asset. Federal tax extension Instead, all the assets of the business are sold. Federal tax extension Generally, when this occurs, each asset is treated as being sold separately for determining the treatment of gain or loss. Federal tax extension A business usually has many assets. Federal tax extension When sold, these assets must be classified as capital assets, depreciable property used in the business, real property used in the business, or property held for sale to customers, such as inventory or stock in trade. Federal tax extension The gain or loss on each asset is figured separately. Federal tax extension The sale of capital assets results in capital gain or loss. Federal tax extension The sale of real property or depreciable property used in the business and held longer than 1 year results in gain or loss from a section 1231 transaction (discussed in chapter 3). Federal tax extension The sale of inventory results in ordinary income or loss. Federal tax extension Partnership interests. Federal tax extension   An interest in a partnership or joint venture is treated as a capital asset when sold. Federal tax extension The part of any gain or loss from unrealized receivables or inventory items will be treated as ordinary gain or loss. Federal tax extension For more information, see Disposition of Partner's Interest in Publication 541. Federal tax extension Corporation interests. Federal tax extension   Your interest in a corporation is represented by stock certificates. Federal tax extension When you sell these certificates, you usually realize capital gain or loss. Federal tax extension For information on the sale of stock, see chapter 4 in Publication 550. Federal tax extension Corporate liquidations. Federal tax extension   Corporate liquidations of property generally are treated as a sale or exchange. Federal tax extension Gain or loss generally is recognized by the corporation on a liquidating sale of its assets. Federal tax extension Gain or loss generally is recognized also on a liquidating distribution of assets as if the corporation sold the assets to the distributee at fair market value. Federal tax extension   In certain cases in which the distributee is a corporation in control of the distributing corporation, the distribution may not be taxable. Federal tax extension For more information, see section 332 of the Internal Revenue Code and the related regulations. Federal tax extension Allocation of consideration paid for a business. Federal tax extension   The sale of a trade or business for a lump sum is considered a sale of each individual asset rather than of a single asset. Federal tax extension Except for assets exchanged under any nontaxable exchange rules, both the buyer and seller of a business must use the residual method (explained later) to allocate the consideration to each business asset transferred. Federal tax extension This method determines gain or loss from the transfer of each asset and how much of the consideration is for goodwill and certain other intangible property. Federal tax extension It also determines the buyer's basis in the business assets. Federal tax extension Consideration. Federal tax extension   The buyer's consideration is the cost of the assets acquired. Federal tax extension The seller's consideration is the amount realized (money plus the fair market value of property received) from the sale of assets. Federal tax extension Residual method. Federal tax extension   The residual method must be used for any transfer of a group of assets that constitutes a trade or business and for which the buyer's basis is determined only by the amount paid for the assets. Federal tax extension This applies to both direct and indirect transfers, such as the sale of a business or the sale of a partnership interest in which the basis of the buyer's share of the partnership assets is adjusted for the amount paid under section 743(b) of the Internal Revenue Code. Federal tax extension Section 743(b) applies if a partnership has an election in effect under section 754 of the Internal Revenue Code. Federal tax extension   A group of assets constitutes a trade or business if either of the following applies. Federal tax extension Goodwill or going concern value could, under any circumstances, attach to them. Federal tax extension The use of the assets would constitute an active trade or business under section 355 of the Internal Revenue Code. Federal tax extension   The residual method provides for the consideration to be reduced first by the amount of Class I assets (defined below). Federal tax extension The consideration remaining after this reduction must be allocated among the various business assets in a certain order. Federal tax extension See Classes of assets next for the complete order. Federal tax extension Classes of assets. Federal tax extension   The following definitions are the classifications for deemed or actual asset acquisitions. Federal tax extension Allocate the consideration among the assets in the following order. Federal tax extension The amount allocated to an asset, other than a Class VII asset, cannot exceed its fair market value on the purchase date. Federal tax extension The amount you can allocate to an asset also is subject to any applicable limits under the Internal Revenue Code or general principles of tax law. Federal tax extension Class I assets are cash and general deposit accounts (including checking and savings accounts but excluding certificates of deposit). Federal tax extension Class II assets are certificates of deposit, U. Federal tax extension S. Federal tax extension Government securities, foreign currency, and actively traded personal property, including stock and securities. Federal tax extension Class III assets are accounts receivable, other debt instruments, and assets that you mark to market at least annually for federal income tax purposes. Federal tax extension However, see section 1. Federal tax extension 338-6(b)(2)(iii) of the regulations for exceptions that apply to debt instruments issued by persons related to a target corporation, contingent debt instruments, and debt instruments convertible into stock or other property. Federal tax extension Class IV assets are property of a kind that would properly be included in inventory if on hand at the end of the tax year or property held by the taxpayer primarily for sale to customers in the ordinary course of business. Federal tax extension Class V assets are all assets other than Class I, II, III, IV, VI, and VII assets. Federal tax extension    Note. Federal tax extension Furniture and fixtures, buildings, land, vehicles, and equipment, which constitute all or part of a trade or business are generally Class V assets. Federal tax extension Class VI assets are section 197 intangibles (other than goodwill and going concern value). Federal tax extension Class VII assets are goodwill and going concern value (whether the goodwill or going concern value qualifies as a section 197 intangible). Federal tax extension   If an asset described in one of the classifications described above can be included in more than one class, include it in the lower numbered class. Federal tax extension For example, if an asset is described in both Class II and Class IV, choose Class II. Federal tax extension Example. Federal tax extension The total paid in the sale of the assets of Company SKB is $21,000. Federal tax extension No cash or deposit accounts or similar accounts were sold. Federal tax extension The company's U. Federal tax extension S. Federal tax extension Government securities sold had a fair market value of $3,200. Federal tax extension The only other asset transferred (other than goodwill and going concern value) was inventory with a fair market value of $15,000. Federal tax extension Of the $21,000 paid for the assets of Company SKB, $3,200 is allocated to U. Federal tax extension S. Federal tax extension Government securities, $15,000 to inventory assets, and the remaining $2,800 to goodwill and going concern value. Federal tax extension Agreement. Federal tax extension   The buyer and seller may enter into a written agreement as to the allocation of any consideration or the fair market value of any of the assets. Federal tax extension This agreement is binding on both parties unless the IRS determines the amounts are not appropriate. Federal tax extension Reporting requirement. Federal tax extension   Both the buyer and seller involved in the sale of business assets must report to the IRS the allocation of the sales price among section 197 intangibles and the other business assets. Federal tax extension Use Form 8594, Asset Acquisition Statement Under Section 1060, to provide this information. Federal tax extension Generally, the buyer and seller should each attach Form 8594 to their federal income tax return for the year in which the sale occurred. Federal tax extension See the Instructions for Form 8594. Federal tax extension Dispositions of Intangible Property Intangible property is any personal property that has value but cannot be seen or touched. Federal tax extension It includes such items as patents, copyrights, and the goodwill value of a business. Federal tax extension Gain or loss on the sale or exchange of amortizable or depreciable intangible property held longer than 1 year (other than an amount recaptured as ordinary income) is a section 1231 gain or loss. Federal tax extension The treatment of section 1231 gain or loss and the recapture of amortization and depreciation as ordinary income are explained in chapter 3. Federal tax extension See chapter 8 of Publication 535, Business Expenses, for information on amortizable intangible property and chapter 1 of Publication 946, How To Depreciate Property, for information on intangible property that can and cannot be depreciated. Federal tax extension Gain or loss on dispositions of other intangible property is ordinary or capital depending on whether the property is a capital asset or a noncapital asset. Federal tax extension The following discussions explain special rules that apply to certain dispositions of intangible property. Federal tax extension Section 197 Intangibles Section 197 intangibles are certain intangible assets acquired after August 10, 1993 (after July 25, 1991, if chosen), and held in connection with the conduct of a trade or business or an activity entered into for profit whose costs are amortized over 15 years. Federal tax extension They include the following assets. Federal tax extension Goodwill. Federal tax extension Going concern value. Federal tax extension Workforce in place. Federal tax extension Business books and records, operating systems, and other information bases. Federal tax extension Patents, copyrights, formulas, processes, designs, patterns, know how, formats, and similar items. Federal tax extension Customer-based intangibles. Federal tax extension Supplier-based intangibles. Federal tax extension Licenses, permits, and other rights granted by a governmental unit. Federal tax extension Covenants not to compete entered into in connection with the acquisition of a business. Federal tax extension Franchises, trademarks, and trade names. Federal tax extension See chapter 8 of Publication 535 for a description of each intangible. Federal tax extension Dispositions. Federal tax extension   You cannot deduct a loss from the disposition or worthlessness of a section 197 intangible you acquired in the same transaction (or series of related transactions) as another section 197 intangible you still hold. Federal tax extension Instead, you must increase the adjusted basis of your retained section 197 intangible by the nondeductible loss. Federal tax extension If you retain more than one section 197 intangible, increase each intangible's adjusted basis. Federal tax extension Figure the increase by multiplying the nondeductible loss by a fraction, the numerator (top number) of which is the retained intangible's adjusted basis on the date of the loss and the denominator (bottom number) of which is the total adjusted basis of all retained intangibles on the date of the loss. Federal tax extension   In applying this rule, members of the same controlled group of corporations and commonly controlled businesses are treated as a single entity. Federal tax extension For example, a corporation cannot deduct a loss on the sale of a section 197 intangible if, after the sale, a member of the same controlled group retains other section 197 intangibles acquired in the same transaction as the intangible sold. Federal tax extension Covenant not to compete. Federal tax extension   A covenant not to compete (or similar arrangement) that is a section 197 intangible cannot be treated as disposed of or worthless before you have disposed of your entire interest in the trade or business for which the covenant was entered into. Federal tax extension Members of the same controlled group of corporations and commonly controlled businesses are treated as a single entity in determining whether a member has disposed of its entire interest in a trade or business. Federal tax extension Anti-churning rules. Federal tax extension   Anti-churning rules prevent a taxpayer from converting section 197 intangibles that do not qualify for amortization into property that would qualify for amortization. Federal tax extension However, these rules do not apply to part of the basis of property acquired by certain related persons if the transferor elects to do both the following. Federal tax extension Recognize gain on the transfer of the property. Federal tax extension Pay income tax on the gain at the highest tax rate. Federal tax extension   If the transferor is a partnership or S corporation, the partnership or S corporation (not the partners or shareholders) can make the election. Federal tax extension But each partner or shareholder must pay the tax on his or her share of gain. Federal tax extension   To make the election, you, as the transferor, must attach a statement containing certain information to your income tax return for the year of the transfer. Federal tax extension You must file the tax return by the due date (including extensions). Federal tax extension You must also notify the transferee of the election in writing by the due date of the return. Federal tax extension   If you timely filed your return without making the election, you can make the election by filing an amended return within 6 months after the due date of the return (excluding extensions). Federal tax extension Attach the statement to the amended return and write “Filed pursuant to section 301. Federal tax extension 9100-2” at the top of the statement. Federal tax extension File the amended return at the same address the original return was filed. Federal tax extension For more information about making the election, see Regulations section 1. Federal tax extension 197-2(h)(9). Federal tax extension For information about reporting the tax on your income tax return, see the Instructions for Form 4797. Federal tax extension Patents The transfer of a patent by an individual is treated as a sale or exchange of a capital asset held longer than 1 year. Federal tax extension This applies even if the payments for the patent are made periodically during the transferee's use or are contingent on the productivity, use, or disposition of the patent. Federal tax extension For information on the treatment of gain or loss on the transfer of capital assets, see chapter 4. Federal tax extension This treatment applies to your transfer of a patent if you meet all the following conditions. Federal tax extension You are the holder of the patent. Federal tax extension You transfer the patent other than by gift, inheritance, or devise. Federal tax extension You transfer all substantial rights to the patent or an undivided interest in all such rights. Federal tax extension You do not transfer the patent to a related person. Federal tax extension Holder. Federal tax extension   You are the holder of a patent if you are either of the following. Federal tax extension The individual whose effort created the patent property and who qualifies as the original and first inventor. Federal tax extension The individual who bought an interest in the patent from the inventor before the invention was tested and operated successfully under operating conditions and who is neither related to, nor the employer of, the inventor. Federal tax extension All substantial rights. Federal tax extension   All substantial rights to patent property are all rights that have value when they are transferred. Federal tax extension A security interest (such as a lien), or a reservation calling for forfeiture for nonperformance, is not treated as a substantial right for these rules and may be kept by you as the holder of the patent. Federal tax extension   All substantial rights to a patent are not transferred if any of the following apply to the transfer. Federal tax extension The rights are limited geographically within a country. Federal tax extension The rights are limited to a period less than the remaining life of the patent. Federal tax extension The rights are limited to fields of use within trades or industries and are less than all the rights that exist and have value at the time of the transfer. Federal tax extension The rights are less than all the claims or inventions covered by the patent that exist and have value at the time of the transfer. Federal tax extension Related persons. Federal tax extension   This tax treatment does not apply if the transfer is directly or indirectly between you and a related person as defined earlier in the list under Nondeductible Loss, with the following changes. Federal tax extension Members of your family include your spouse, ancestors, and lineal descendants, but not your brothers, sisters, half-brothers, or half-sisters. Federal tax extension Substitute “25% or more” ownership for “more than 50%. Federal tax extension ”   If you fit within the definition of a related person independent of family status, the brother-sister exception in (1), earlier, does not apply. Federal tax extension For example, a transfer between a brother and a sister as beneficiary and fiduciary of the same trust is a transfer between related persons. Federal tax extension The brother-sister exception does not apply because the trust relationship is independent of family status. Federal tax extension Franchise, Trademark, or Trade Name If you transfer or renew a franchise, trademark, or trade name for a price contingent on its productivity, use, or disposition, the amount you receive generally is treated as an amount realized from the sale of a noncapital asset. Federal tax extension A franchise includes an agreement that gives one of the parties the right to distribute, sell, or provide goods, services, or facilities within a specified area. Federal tax extension Significant power, right, or continuing interest. Federal tax extension   If you keep any significant power, right, or continuing interest in the subject matter of a franchise, trademark, or trade name that you transfer or renew, the amount you receive is ordinary royalty income rather than an amount realized from a sale or exchange. Federal tax extension   A significant power, right, or continuing interest in a franchise, trademark, or trade name includes, but is not limited to, the following rights in the transferred interest. Federal tax extension A right to disapprove any assignment of the interest, or any part of it. Federal tax extension A right to end the agreement at will. Federal tax extension A right to set standards of quality for products used or sold, or for services provided, and for the equipment and facilities used to promote such products or services. Federal tax extension A right to make the recipient sell or advertise only your products or services. Federal tax extension A right to make the recipient buy most supplies and equipment from you. Federal tax extension A right to receive payments based on the productivity, use, or disposition of the transferred item of interest if those payments are a substantial part of the transfer agreement. Federal tax extension Subdivision of Land If you own a tract of land and, to sell or exchange it, you subdivide it into individual lots or parcels, the gain normally is ordinary income. Federal tax extension However, you may receive capital gain treatment on at least part of the proceeds provided you meet certain requirements. Federal tax extension See section 1237 of the Internal Revenue Code. Federal tax extension Timber Standing timber held as investment property is a capital asset. Federal tax extension Gain or loss from its sale is reported as a capital gain or loss on Form 8949, and Schedule D (Form 1040), as applicable. Federal tax extension If you held the timber primarily for sale to customers, it is not a capital asset. Federal tax extension Gain or loss on its sale is ordinary business income or loss. Federal tax extension It is reported in the gross receipts or sales and cost of goods sold items of your return. Federal tax extension Farmers who cut timber on their land and sell it as logs, firewood, or pulpwood usually have no cost or other basis for that timber. Federal tax extension These sales constitute a very minor part of their farm businesses. Federal tax extension In these cases, amounts realized from such sales, and the expenses of cutting, hauling, etc. Federal tax extension , are ordinary farm income and expenses reported on Schedule F (Form 1040), Profit or Loss From Farming. Federal tax extension Different rules apply if you owned the timber longer than 1 year and elect to either: Treat timber cutting as a sale or exchange, or Enter into a cutting contract. Federal tax extension Timber is considered cut on the date when, in the ordinary course of business, the quantity of felled timber is first definitely determined. Federal tax extension This is true whether the timber is cut under contract or whether you cut it yourself. Federal tax extension Under the rules discussed below, disposition of the timber is treated as a section 1231 transaction. Federal tax extension See chapter 3. Federal tax extension Gain or loss is reported on Form 4797. Federal tax extension Christmas trees. Federal tax extension   Evergreen trees, such as Christmas trees, that are more than 6 years old when severed from their roots and sold for ornamental purposes are included in the term timber. Federal tax extension They qualify for both rules discussed below. Federal tax extension Election to treat cutting as a sale or exchange. Federal tax extension   Under the general rule, the cutting of timber results in no gain or loss. Federal tax extension It is not until a sale or exchange occurs that gain or loss is realized. Federal tax extension But if you owned or had a contractual right to cut timber, you can elect to treat the cutting of timber as a section 1231 transaction in the year the timber is cut. Federal tax extension Even though the cut timber is not actually sold or exchanged, you report your gain or loss on the cutting for the year the timber is cut. Federal tax extension Any later sale results in ordinary business income or loss. Federal tax extension See Example, later. Federal tax extension   To elect this treatment, you must: Own or hold a contractual right to cut the timber for a period of more than 1 year before it is cut, and Cut the timber for sale or for use in your trade or business. Federal tax extension Making the election. Federal tax extension   You make the election on your return for the year the cutting takes place by including in income the gain or loss on the cutting and including a computation of the gain or loss. Federal tax extension You do not have to make the election in the first year you cut timber. Federal tax extension You can make it in any year to which the election would apply. Federal tax extension If the timber is partnership property, the election is made on the partnership return. Federal tax extension This election cannot be made on an amended return. Federal tax extension   Once you have made the election, it remains in effect for all later years unless you cancel it. Federal tax extension   If you previously elected to treat the cutting of timber as a sale or exchange, you may revoke this election without the consent of the IRS. Federal tax extension The prior election (and revocation) is disregarded for purposes of making a subsequent election. Federal tax extension See Form T (Timber), Forest Activities Schedule, for more information. Federal tax extension Gain or loss. Federal tax extension   Your gain or loss on the cutting of standing timber is the difference between its adjusted basis for depletion and its fair market value on the first day of your tax year in which it is cut. Federal tax extension   Your adjusted basis for depletion of cut timber is based on the number of units (feet board measure, log scale, or other units) of timber cut during the tax year and considered to be sold or exchanged. Federal tax extension Your adjusted basis for depletion is also based on the depletion unit of timber in the account used for the cut timber, and should be figured in the same manner as shown in section 611 of the Internal Revenue Code and the related regulations. Federal tax extension   Timber depletion is discussed in chapter 9 of Publication 535. Federal tax extension Example. Federal tax extension In April 2013, you had owned 4,000 MBF (1,000 board feet) of standing timber longer than 1 year. Federal tax extension It had an adjusted basis for depletion of $40 per MBF. Federal tax extension You are a calendar year taxpayer. Federal tax extension On January 1, 2013, the timber had a fair market value (FMV) of $350 per MBF. Federal tax extension It was cut in April for sale. Federal tax extension On your 2013 tax return, you elect to treat the cutting of the timber as a sale or exchange. Federal tax extension You report the difference between the fair market value and your adjusted basis for depletion as a gain. Federal tax extension This amount is reported on Form 4797 along with your other section 1231 gains and losses to figure whether it is treated as capital gain or as ordinary gain. Federal tax extension You figure your gain as follows. Federal tax extension FMV of timber January 1, 2013 $1,400,000 Minus: Adjusted basis for depletion 160,000 Section 1231 gain $1,240,000 The fair market value becomes your basis in the cut timber and a later sale of the cut timber including any by-product or tree tops will result in ordinary business income or loss. Federal tax extension Outright sales of timber. Federal tax extension   Outright sales of timber by landowners qualify for capital gains treatment using rules similar to the rules for certain disposal of timber under a contract with retained economic interest (defined below). Federal tax extension However, for outright sales, the date of disposal is not deemed to be the date the timber is cut because the landowner can elect to treat the payment date as the date of disposal (see below). Federal tax extension Cutting contract. Federal tax extension   You must treat the disposal of standing timber under a cutting contract as a section 1231 transaction if all the following apply to you. Federal tax extension You are the owner of the timber. Federal tax extension You held the timber longer than 1 year before its disposal. Federal tax extension You kept an economic interest in the timber. Federal tax extension   You have kept an economic interest in standing timber if, under the cutting contract, the expected return on your investment is conditioned on the cutting of the timber. Federal tax extension   The difference between the amount realized from the disposal of the timber and its adjusted basis for depletion is treated as gain or loss on its sale. Federal tax extension Include this amount on Form 4797 along with your other section 1231 gains or losses to figure whether it is treated as capital or ordinary gain or loss. Federal tax extension Date of disposal. Federal tax extension   The date of disposal is the date the timber is cut. Federal tax extension However, for outright sales by landowners or if you receive payment under the contract before the timber is cut, you can elect to treat the date of payment as the date of disposal. Federal tax extension   This election applies only to figure the holding period of the timber. Federal tax extension It has no effect on the time for reporting gain or loss (generally when the timber is sold or exchanged). Federal tax extension   To make this election, attach a statement to the tax return filed by the due date (including extensions) for the year payment is received. Federal tax extension The statement must identify the advance payments subject to the election and the contract under which they were made. Federal tax extension   If you timely filed your return for the year you received payment without making the election, you still can make the election by filing an amended return within 6 months after the due date for that year's return (excluding extensions). Federal tax extension Attach the statement to the amended return and write “Filed pursuant to section 301. Federal tax extension 9100-2” at the top of the statement. Federal tax extension File the amended return at the same address the original return was filed. Federal tax extension Owner. Federal tax extension   The owner of timber is any person who owns an interest in it, including a sublessor and the holder of a contract to cut the timber. Federal tax extension You own an interest in timber if you have the right to cut it for sale on your own account or for use in your business. Federal tax extension Tree stumps. Federal tax extension   Tree stumps are a capital asset if they are on land held by an investor who is not in the timber or stump business as a buyer, seller, or processor. Federal tax extension Gain from the sale of stumps sold in one lot by such a holder is taxed as a capital gain. Federal tax extension However, tree stumps held by timber operators after the saleable standing timber was cut and removed from the land are considered by-products. Federal tax extension Gain from the sale of stumps in lots or tonnage by such operators is taxed as ordinary income. Federal tax extension   See Form T (Timber) and its separate instructions for more information about dispositions of timber. Federal tax extension Precious Metals and Stones, Stamps, and Coins Gold, silver, gems, stamps, coins, etc. Federal tax extension , are capital assets except when they are held for sale by a dealer. Federal tax extension Any gain or loss from their sale or exchange generally is a capital gain or loss. Federal tax extension If you are a dealer, the amount received from the sale is ordinary business income. Federal tax extension Coal and Iron Ore You must treat the disposal of coal (including lignite) or iron ore mined in the United States as a section 1231 transaction if both the following apply to you. Federal tax extension You owned the coal or iron ore longer than 1 year before its disposal. Federal tax extension You kept an economic interest in the coal or iron ore. Federal tax extension For this rule, the date the coal or iron ore is mined is considered the date of its disposal. Federal tax extension Your gain or loss is the difference between the amount realized from disposal of the coal or iron ore and the adjusted basis you use to figure cost depletion (increased by certain expenses not allowed as deductions for the tax year). Federal tax extension This amount is included on Form 4797 along with your other section 1231 gains and losses. Federal tax extension You are considered an owner if you own or sublet an economic interest in the coal or iron ore in place. Federal tax extension If you own only an option to buy the coal in place, you do not qualify as an owner. Federal tax extension In addition, this gain or loss treatment does not apply to income realized by an owner who is a co-adventurer, partner, or principal in the mining of coal or iron ore. Federal tax extension The expenses of making and administering the contract under which the coal or iron ore was disposed of and the expenses of preserving the economic interest kept under the contract are not allowed as deductions in figuring taxable income. Federal tax extension Rather, their total, along with the adjusted depletion basis, is deducted from the amount received to determine gain. Federal tax extension If the total of these expenses plus the adjusted depletion basis is more than the amount received, the result is a loss. Federal tax extension Special rule. Federal tax extension   The above treatment does not apply if you directly or indirectly dispose of the iron ore or coal to any of the following persons. Federal tax extension A related person whose relationship to you would result in the disallowance of a loss (see Nondeductible Loss under Sales and Exchanges Between Related Persons, earlier). Federal tax extension An individual, trust, estate, partnership, association, company, or corporation owned or controlled directly or indirectly by the same interests that own or control your business. Federal tax extension Conversion Transactions Recognized gain on the disposition or termination of any position held as part of certain conversion transactions is treated as ordinary income. Federal tax extension This applies if substantially all your expected return is attributable to the time value of your net investment (like interest on a loan) and the transaction is any of the following. Federal tax extension An applicable straddle (generally, any set of offsetting positions with respect to personal property, including stock). Federal tax extension A transaction in which you acquire property and, at or about the same time, you contract to sell the same or substantially identical property at a specified price. Federal tax extension Any other transaction that is marketed and sold as producing capital gain from a transaction in which substantially all of your expected return is due to the time value of your net investment. Federal tax extension For more information, see chapter 4 of Publication 550. Federal tax extension Prev  Up  Next   Home   More Online Publications
Print - Click this link to Print this page

Understanding your CP09 Notice

We've sent you this notice because our records indicate you may be eligible for the Earned Income Credit (EIC), but didn't claim it on your tax return.


What you need to do

  • Read your notice carefully — it will explain the steps needed to determine your qualifications.
  • Complete the Earned Income Credit Eligibility Worksheet.

    If you are eligible for the credit,
    • Sign and date the worksheet.
    • Mail the signed worksheet in the envelope provided.
    If you are not eligible for the credit,
    • Do not return the worksheet to us.

What we will do

We will review your worksheet and make a determination.

  • If you're eligible for the credit, we'll send you a refund check in 6 ― 8 weeks, as long as you don't owe tax or any other debts we’re required to collect.
  • If we deny the credit, we will send you a letter of explanation.
  • If you don't hear from us after 8 weeks, call our toll free line at 1-800-829-0922 to check the status.

You may want to...


Answers to Common Questions

Why did the IRS send me this notice?
You may be eligible for the Earned Income Credit (EIC). The EIC is a credit for certain people who work and have earned income. The credit may give you a refund even if you do not owe any tax.


Tips for next year

Claim the credit if you are still eligible.

Ask the IRS to figure the earned income credit for you by writing "EIC" on the EIC line, complete Schedule EIC, and attach it to your return. If you qualify for the credit, the IRS will calculate it for you.

Write "NO" on the EIC line if you do not want or you do not qualify for the credit.

Page Last Reviewed or Updated: 19-Feb-2014

How to get help

  • Call the 1-800 number listed on the top right corner of your notice.
  • Authorize someone (e.g., accountant) to contact the IRS on your behalf using Form 2848.
  • See if you qualify for help from a Low Income Taxpayer Clinic.
     

The Federal Tax Extension

Federal tax extension 5. Federal tax extension   Manufacturers Taxes Table of Contents Importer. Federal tax extension Use considered sale. Federal tax extension Lease considered sale. Federal tax extension Bonus goods. Federal tax extension Taxable Event ExemptionsRequirements for Exempt Sales Credits or Refunds Sport Fishing EquipmentRelated person. Federal tax extension Bows, Quivers, Broadheads, and Points Arrow ShaftsExemption for certain wooden arrows. Federal tax extension CoalExported. Federal tax extension Taxable TiresQualifying intercity or local bus. Federal tax extension Qualifying school bus. Federal tax extension Gas Guzzler TaxVehicles not subject to tax. Federal tax extension Imported automobiles. Federal tax extension VaccinesConditions to allowance. Federal tax extension Taxable Medical Devices The following discussion of manufacturers taxes applies to the tax on: Sport fishing equipment; Fishing rods and fishing poles; Electric outboard motors; Fishing tackle boxes; Bows, quivers, broadheads, and points; Arrow shafts; Coal; Taxable tires; Gas guzzler automobiles; and Vaccines. Federal tax extension Manufacturer. Federal tax extension   The term “manufacturer” includes a producer or importer. Federal tax extension A manufacturer is any person who produces a taxable article from new or raw material, or from scrap, salvage, or junk material, by processing or changing the form of an article or by combining or assembling two or more articles. Federal tax extension If you furnish the materials and keep title to those materials and to the finished article, you are considered the manufacturer even though another person actually manufactures the taxable article. Federal tax extension   A manufacturer who sells a taxable article in knockdown (unassembled) condition is liable for the tax. Federal tax extension The person who buys these component parts and assembles a taxable article may also be liable for tax as a further manufacturer depending on the labor, material, and overhead required to assemble the completed article if the article is assembled for business use. Federal tax extension Importer. Federal tax extension   An importer is a person who brings a taxable article into the United States, or withdraws a taxable article from a customs bonded warehouse for sale or use in the United States. Federal tax extension Sale. Federal tax extension   A sale is the transfer of the title to, or the substantial incidents of ownership in, an article to a buyer for consideration that may consist of money, services, or other things. Federal tax extension Use considered sale. Federal tax extension   A manufacturer who uses a taxable article is liable for the tax in the same manner as if it were sold. Federal tax extension Lease considered sale. Federal tax extension   The lease of an article (including any renewal or extension of the lease) by the manufacturer is generally considered a taxable sale. Federal tax extension However, for the gas guzzler tax, only the first lease (excluding any renewal or extension) of the automobile by the manufacturer is considered a sale. Federal tax extension Manufacturers taxes based on sale price. Federal tax extension   The manufacturers taxes imposed on the sale of sport fishing equipment, electric outboard motors, and bows are based on the sale price of the article. Federal tax extension The taxes imposed on coal are based either on the sale price or the weight. Federal tax extension   The price for which an article is sold includes the total consideration paid for the article, whether that consideration is in the form of money, services, or other things. Federal tax extension However, you include certain charges made when a taxable article is sold and you exclude others. Federal tax extension To figure the price on which you base the tax, use the following rules. Federal tax extension Include both the following charges in the price. Federal tax extension Any charge for coverings or containers (regardless of their nature). Federal tax extension Any charge incident to placing the article in a condition packed ready for shipment. Federal tax extension Exclude all the following amounts from the price. Federal tax extension The manufacturers excise tax, whether or not it is stated as a separate charge. Federal tax extension The transportation charges pursuant to the sale. Federal tax extension The cost of transportation of goods to a warehouse before their bona fide sale is not excludable. Federal tax extension Delivery, insurance, installation, retail dealer preparation charges, and other charges you incur in placing the article in the hands of the purchaser under a bona fide sale. Federal tax extension Discounts, rebates, and similar allowances actually granted to the purchaser. Federal tax extension Local advertising charges. Federal tax extension A charge made separately when the article is sold and that qualifies as a charge for “local advertising” may, within certain limits, be excluded from the sale price. Federal tax extension Charges for warranty paid at the purchaser's option. Federal tax extension However, a charge for a warranty of an article that the manufacturer requires the purchaser to pay to obtain the article is included in the sale price on which the tax is figured. Federal tax extension Bonus goods. Federal tax extension   Allocate the sale price if you give free nontaxable goods with the purchase of taxable merchandise. Federal tax extension Figure the tax only on the sale price attributable to the taxable articles. Federal tax extension Example. Federal tax extension A manufacturer sells a quantity of taxable articles and gives the purchaser certain nontaxable articles as a bonus. Federal tax extension The sale price of the shipment is $1,500. Federal tax extension The normal sale price is $2,000: $1,500 for the taxable articles and $500 for the nontaxable articles. Federal tax extension Since the taxable items represent 75% of the normal sale price, the tax is based on 75% of the actual sale price, or $1,125 (75% of $1,500). Federal tax extension The remaining $375 is allocated to the nontaxable articles. Federal tax extension Taxable Event Tax attaches when the title to the article sold passes from the manufacturer to the buyer. Federal tax extension When the title passes depends on the intention of the parties as gathered from the contract of sale. Federal tax extension In the absence of expressed intention, the legal rules of presumption followed in the jurisdiction where the sale occurs determine when title passes. Federal tax extension If the taxable article is used by the manufacturer, the tax attaches at the time use begins. Federal tax extension The manufacturer is liable for the tax. Federal tax extension Partial payments. Federal tax extension   The tax applies to each partial payment received when taxable articles are: Leased, Sold conditionally, Sold on installment with chattel mortgage, or Sold on installment with title to pass in the future. Federal tax extension To figure the tax, multiply the partial payment by the tax rate in effect at the time of the payment. Federal tax extension Exemptions The following sales by the manufacturer are exempt from the manufacturers tax. Federal tax extension Sale of an article to a state or local government for the exclusive use of the state or local government. Federal tax extension This exemption does not apply to the taxes on coal, gas guzzlers, and vaccines. Federal tax extension State is defined in Definitions in chapter 1. Federal tax extension Sale of an article to a nonprofit educational organization for its exclusive use. Federal tax extension This exemption does not apply to the taxes on coal, gas guzzlers, and vaccines. Federal tax extension Nonprofit educational organization is defined under Communications Tax in chapter 4. Federal tax extension Sale of an article to a qualified blood collector organization. Federal tax extension This exemption does not apply to gas guzzlers, recreational equipment, and vaccines. Federal tax extension Qualified blood collector organizations are defined under Communications Tax in chapter 4. Federal tax extension Sale of an article for use by the purchaser as supplies for vessels. Federal tax extension This exemption does not apply to the taxes on coal and vaccines. Federal tax extension Supplies for vessels means ships' stores, sea stores, or legitimate equipment on vessels of war of the United States or any foreign nation, vessels employed in the fisheries or whaling business, or vessels actually engaged in foreign trade. Federal tax extension Sale of an article for use by the purchaser for further manufacture, or for resale by the purchaser to a second purchaser for use by the second purchaser for further manufacture. Federal tax extension This exemption does not apply to the tax on coal and tires. Federal tax extension Use for further manufacture means use in the manufacture or production of an article subject to the manufacturers excise taxes. Federal tax extension If you buy articles tax free and resell or use them other than in the manufacture of another article, you are liable for the tax on their resale or use just as if you had manufactured and sold them. Federal tax extension Sale of an article for export or for resale by the purchaser to a second purchaser for export. Federal tax extension The article may be exported to a foreign country or to a possession of the United States. Federal tax extension A vaccine shipped to a possession of the United States is not considered to be exported. Federal tax extension If an article is sold tax free for export and the manufacturer does not receive proof of export, described later, the manufacturer is liable for the tax. Federal tax extension Sales of articles of native Indian handicraft, such as bows and arrow shafts, manufactured by Indians on reservations, in Indian schools, or under U. Federal tax extension S. Federal tax extension jurisdiction in Alaska. Federal tax extension For tire exemptions, see section 4221(e)(2). Federal tax extension Requirements for Exempt Sales The following requirements must be met for a sale to be exempt from the manufacturers tax. Federal tax extension Registration requirements. Federal tax extension   The manufacturer, first purchaser, and second purchaser in the case of resales must be registered. Federal tax extension See the Form 637 instructions for more information. Federal tax extension Exceptions to registration requirements. Federal tax extension   Registration is not required for: State or local governments, Foreign purchasers of articles sold or resold for export, The United States, or Parties to a sale of supplies for vessels and aircraft. Federal tax extension Certification requirement. Federal tax extension   If the purchaser is required to be registered, the purchaser must give the manufacturer its registration number and certify the exempt purpose for which the article will be used. Federal tax extension The information must be in writing and may be noted on the purchase order or other document furnished by the purchaser to the seller in connection with the sale. Federal tax extension   For a sale to a state or local government, an exemption certificate must be signed by an officer or employee authorized by the state or local government. Federal tax extension See Regulations section 48. Federal tax extension 4221-5(c) for the certificate requirements. Federal tax extension   For sales for use as supplies for vessels and aircraft, if the manufacturer and purchaser are not registered, the owner or agent of the vessel must provide an exemption certificate to the manufacturer before or at the time of sale. Federal tax extension See Regulations section 48. Federal tax extension 4221-4(d) for the certificate requirements. Federal tax extension Proof of export requirement. Federal tax extension   Within 6 months of the date of sale or shipment by the manufacturer, whichever is earlier, the manufacturer must receive proof of exportation. Federal tax extension See Regulations section 48. Federal tax extension 4221-3(d) for evidence that qualifies as proof of exportation. Federal tax extension Proof of resale for further manufacture requirement. Federal tax extension   Within 6 months of the date of sale or shipment by the manufacturer, whichever is earlier, the manufacturer must receive proof that the article has been resold for use in further manufacture. Federal tax extension See Regulations section 48. Federal tax extension 4221-2(c) for evidence that qualifies as proof of resale. Federal tax extension Information to be furnished to purchaser. Federal tax extension   The manufacturer must indicate to the purchaser that the articles normally would be subject to tax and are being sold tax free for an exempt purpose because the purchaser has provided the required certificate. Federal tax extension Credits or Refunds The manufacturer may be eligible to obtain a credit or refund of the manufacturers tax for certain uses, sales, exports, and price readjustments. Federal tax extension The claim must set forth in detail the facts upon which the claim is based. Federal tax extension Uses, sales, and exports. Federal tax extension   A credit or refund (without interest) of the manufacturers taxes may be allowable if a tax-paid article is, by any person: Exported, Used or sold for use as supplies for vessels (except for coal and vaccines), Sold to a state or local government for its exclusive use (except for coal, gas guzzlers, and vaccines), Sold to a nonprofit educational organization for its exclusive use (except for coal, gas guzzlers, and vaccines), Sold to a qualified blood collector organization for its exclusive use (except for gas guzzlers, recreational equipment, and vaccines), or Used for further manufacture of another article subject to the manufacturers taxes (except for coal). Federal tax extension Export. Federal tax extension   If a tax-paid article is exported, the exporter or shipper may claim a credit or refund if the manufacturer waives its right to claim the credit or refund. Federal tax extension In the case of a tax-paid article used to make another taxable article, the subsequent manufacturer may claim the credit or refund. Federal tax extension Price readjustments. Federal tax extension   In addition, a credit or refund (without interest) may be allowable for a tax-paid article for which the price is readjusted by reason of return or repossession of the article or a bona fide discount, rebate, or allowance for taxes based on price. Federal tax extension Conditions to allowance. Federal tax extension   To claim a credit or refund in the case of export; supplies for vessels; or sales to a state or local government, nonprofit educational organization, or qualified blood collector organization; the person who paid the tax must certify on the claim that one of the following applies and that the claimant has the required supporting information. Federal tax extension The claimant sold the article at a tax-excluded price. Federal tax extension The person has repaid, or agreed to repay, the tax to the ultimate vendor of the article. Federal tax extension The person has obtained the written consent of the ultimate vendor to make the claim. Federal tax extension The ultimate vendor generally is the seller making the sale that gives rise to the overpayment of tax. Federal tax extension Claim for further manufacture. Federal tax extension   To claim a credit or refund for further manufacture, the claimant must include a statement that contains the following. Federal tax extension The name and address of the manufacturer and the date of payment. Federal tax extension An identification of the article for which the credit or refund is claimed. Federal tax extension The amount of tax paid on the article and the date on which it was paid. Federal tax extension Information indicating that the article was used as material in the manufacture or production of, or as a component part of, a second article manufactured or produced by the manufacturer, or was sold on or in connection with, or with the sale of a second article manufactured or produced by the manufacturer. Federal tax extension An identification of the second article. Federal tax extension   For claims by the exporter or shipper, the claim must contain the proof of export and a statement signed by the person that paid the tax waiving the right to claim a credit or refund. Federal tax extension The statement must include the amount of tax paid, the date of payment, and the office to which it was paid. Federal tax extension Claim for price readjustment. Federal tax extension   To claim a credit or refund for a price readjustment, the person who paid the tax must include with the claim, a statement that contains the following. Federal tax extension A description of the circumstances that gave rise to the price readjustment. Federal tax extension An identification of the article whose price was readjusted. Federal tax extension The price at which the article was sold. Federal tax extension The amount of tax paid on the article and the date on which it was paid. Federal tax extension The name and address of the purchaser. Federal tax extension The amount repaid to the purchaser or credited to the purchaser's account. Federal tax extension Sport Fishing Equipment A tax of 10% of the sale price is imposed on many articles of sport fishing equipment sold by the manufacturer. Federal tax extension This includes any parts or accessories sold on or in connection with the sale of those articles. Federal tax extension Pay this tax with Form 720. Federal tax extension No tax deposits are required. Federal tax extension Sport fishing equipment includes all the following items. Federal tax extension Fishing rods and poles (and component parts), fishing reels, fly fishing lines, and other fishing lines not over 130 pounds test, fishing spears, spear guns, and spear tips. Federal tax extension Items of terminal tackle, including leaders, artificial lures, artificial baits, artificial flies, fishing hooks, bobbers, sinkers, snaps, drayles, and swivels (but not including natural bait or any item of terminal tackle designed for use and ordinarily used on fishing lines not described in (1)). Federal tax extension The following items of fishing supplies and accessories: fish stringers, creels, bags, baskets, and other containers designed to hold fish, portable bait containers, fishing vests, landing nets, gaff hooks, fishing hook disgorgers, and dressing for fishing lines and artificial flies. Federal tax extension Fishing tip-ups and tilts. Federal tax extension Fishing rod belts, fishing rodholders, fishing harnesses, fish fighting chairs, fishing outriggers, and fishing downriggers. Federal tax extension See Revenue Ruling 88-52 in Cumulative Bulletin 1988-1 for a more complete description of the items of taxable equipment. Federal tax extension Fishing rods and fishing poles. Federal tax extension   The tax on fishing rods and fishing poles (and component parts) is 10% of the sales price not to exceed $10 per article. Federal tax extension The tax is paid by the manufacturer, producer, or importer. Federal tax extension Fishing tackle boxes. Federal tax extension   The tax on fishing tackle boxes is 3% of the sales price. Federal tax extension The tax is paid by the manufacturer, producer, or importer. Federal tax extension Electric outboard boat motors. Federal tax extension   A tax of 3% of the sale price is imposed on the sale by the manufacturer of electric outboard motors. Federal tax extension This includes any parts or accessories sold on or in connection with the sale of those articles. Federal tax extension Certain equipment resale. Federal tax extension   The tax on the sale of sport fishing equipment is imposed a second time under the following circumstances. Federal tax extension If the manufacturer sells a taxable article to any person, the manufacturer is liable for the tax. Federal tax extension If the purchaser or any other person then sells it to a person who is related (discussed next) to the manufacturer, that related person is liable for a second tax on any subsequent sale of the article. Federal tax extension The second tax, however, is not imposed if the constructive sale price rules under section 4216(b) apply to the sale by the manufacturer. Federal tax extension   If the second tax is imposed, a credit for tax previously paid by the manufacturer is available provided the related person can document the tax paid. Federal tax extension The documentation requirement is generally satisfied only through submission of copies of actual records of the person that previously paid the tax. Federal tax extension Related person. Federal tax extension   For the tax on sport fishing equipment, a person is a related person of the manufacturer if that person and the manufacturer have a relationship described in section 465(b)(3)(C). Federal tax extension Bows, Quivers, Broadheads, and Points The tax on bows is 11% (. Federal tax extension 11) of the sales price. Federal tax extension The tax is paid by the manufacturer, producer, or importer. Federal tax extension It applies to bows having a peak draw weight of 30 pounds or more. Federal tax extension The tax is also imposed on the sale of any part or accessory suitable for inclusion in or attachment to a taxable bow and any quiver, broadhead, or point suitable for use with arrows described below. Federal tax extension Pay this tax with Form 720. Federal tax extension No tax deposits are required. Federal tax extension Arrow Shafts The tax on arrow shafts is listed on Form 720. Federal tax extension The tax is paid by the manufacturer, producer, or importer of any arrow shaft (whether sold separately or incorporated as part of a finished or unfinished product) of a type used in the manufacture of any arrow that after its assembly meets either of the following conditions. Federal tax extension It measures 18 inches or more in overall length. Federal tax extension It measures less than 18 inches in overall length but is suitable for use with a taxable bow, described earlier. Federal tax extension Exemption for certain wooden arrows. Federal tax extension   After October 3, 2008, the tax does not apply to any shaft made of all natural wood with no laminations or artificial means of enhancing the spine of such shaft (whether sold separately or incorporated as part of a finished or unfinished product) and used in the manufacture of any arrow that after its assembly meets both of the following conditions. Federal tax extension It measures 5/16 of an inch or less in diameter. Federal tax extension It is not suitable for use with a taxable bow, described earlier. Federal tax extension Pay this tax with Form 720. Federal tax extension No tax deposits are required. Federal tax extension Coal A tax is imposed on the first sale of coal mined in the United States. Federal tax extension The producer of the coal is liable for the tax. Federal tax extension The producer is the person who has vested ownership of the coal under state law immediately after the coal is severed from the ground. Federal tax extension Determine vested ownership without regard to any contractual arrangement for the sale or other disposition of the coal or the payment of any royalties between the producer and third parties. Federal tax extension A producer includes any person who extracts coal from coal waste refuse piles (or from the silt waste product that results from the wet washing of coal). Federal tax extension The tax is not imposed on coal extracted from a riverbed by dredging if it can be shown that the coal has been taxed previously. Federal tax extension Tax rates. Federal tax extension   The tax on underground-mined coal is the lower of: $1. Federal tax extension 10 a ton, or 4. Federal tax extension 4% of the sale price. Federal tax extension   The tax on surface-mined coal is the lower of: 55 cents a ton, or 4. Federal tax extension 4% of the sale price. Federal tax extension   Coal will be taxed at the 4. Federal tax extension 4% rate if the selling price is less than $25 a ton for underground-mined coal and less than $12. Federal tax extension 50 a ton for surface-mined coal. Federal tax extension Apply the tax proportionately if a sale or use includes a portion of a ton. Federal tax extension Example. Federal tax extension If you sell 21,000 pounds (10. Federal tax extension 5 tons) of coal from an underground mine for $525, the price per ton is $50. Federal tax extension The tax is $1. Federal tax extension 10 × 10. Federal tax extension 5 tons ($11. Federal tax extension 55). Federal tax extension Coal production. Federal tax extension   Coal is produced from surface mines if all geological matter (trees, earth, rock) above the coal is removed before the coal is mined. Federal tax extension Treat coal removed by auger and coal reclaimed from coal waste refuse piles as produced from a surface mine. Federal tax extension   Treat coal as produced from an underground mine when the coal is not produced from a surface mine. Federal tax extension In some cases, a single mine may yield coal from both surface mining and underground mining. Federal tax extension Determine if the coal is from a surface mine or an underground mine for each ton of coal produced and not on a mine-by-mine basis. Federal tax extension Determining tonnage or selling price. Federal tax extension   The producer pays the tax on coal at the time of sale or use. Federal tax extension In figuring the selling price for applying the tax, the point of sale is f. Federal tax extension o. Federal tax extension b. Federal tax extension (free on board) mine or f. Federal tax extension o. Federal tax extension b. Federal tax extension cleaning plant if you clean the coal before selling it. Federal tax extension This applies even if you sell the coal for a delivered price. Federal tax extension The f. Federal tax extension o. Federal tax extension b. Federal tax extension mine or f. Federal tax extension o. Federal tax extension b. Federal tax extension cleaning plant is the point at which you figure the number of tons sold for applying the applicable tonnage rate, and the point at which you figure the sale price for applying the 4. Federal tax extension 4% rate. Federal tax extension   The tax applies to the full amount of coal sold. Federal tax extension However, the IRS allows a calculated reduction of the taxable weight of the coal for the weight of the moisture in excess of the coal's inherent moisture content. Federal tax extension Include in the sale price any additional charge for a freeze-conditioning additive in figuring the tax. Federal tax extension   Do not include in the sales price the excise tax imposed on coal. Federal tax extension Coal used by the producer. Federal tax extension   The tax on coal applies if the coal is used by the producer in other than a mining process. Federal tax extension A mining process means the same for this purpose as for percentage depletion. Federal tax extension For example, the tax does not apply if, before selling the coal, you break it, clean it, size it, or apply any other process considered mining under the rules for depletion. Federal tax extension In this case, the tax applies only when you sell the coal. Federal tax extension The tax does not apply to coal used as fuel in the coal drying process since it is considered to be used in a mining process. Federal tax extension However, the tax does apply when you use the coal as fuel or as an ingredient in making coke since the coal is not used in a mining process. Federal tax extension   You must use a constructive sale price to figure the tax under the 4. Federal tax extension 4% rate if you use the coal in other than a mining process. Federal tax extension Base your constructive sale price on sales of a like kind and grade of coal by you or other producers made f. Federal tax extension o. Federal tax extension b. Federal tax extension mine or cleaning plant. Federal tax extension Normally, you use the same constructive price used to figure your percentage depletion deduction. Federal tax extension Blending. Federal tax extension   If you blend surface-mined coal with underground-mined coal during the cleaning process, you must figure the excise tax on the sale of the blended, cleaned coal. Federal tax extension Figure the tax separately for each type of coal in the blend. Federal tax extension Base the tax on the amount of each type in the blend if you can determine the proportion of each type of coal contained in the final blend. Federal tax extension Base the tax on the ratio of each type originally put into the cleaning process if you cannot determine the proportion of each type of coal in the blend. Federal tax extension However, the tax is limited to 4. Federal tax extension 4% of the sale price per ton of the blended coal. Federal tax extension Exemption from tax. Federal tax extension   The tax does not apply to sales of lignite and imported coal. Federal tax extension The only other exemption from the tax on the sale of coal is for coal exported as discussed next. Federal tax extension Exported. Federal tax extension   The tax does not apply to the sale of coal if the coal is in the stream of export when sold by the producer and the coal is actually exported. Federal tax extension   Coal is in the stream of export when sold by the producer if the sale is a step in the exportation of the coal to its ultimate destination in a foreign country. Federal tax extension For example, coal is in the stream of export when: The coal is loaded on an export vessel and title is transferred from the producer to a foreign purchaser, or The producer sells the coal to an export broker in the United States under terms of a contract showing that the coal is to be shipped to a foreign country. Federal tax extension   Proof of export includes any of the following items. Federal tax extension A copy of the export bill of lading issued by the delivering carrier. Federal tax extension A certificate signed by the export carrier's agent or representative showing actual exportation of the coal. Federal tax extension A certificate of landing signed by a customs officer of the foreign country to which the coal is exported. Federal tax extension If the foreign country does not have a customs administrator, a statement of the foreign consignee showing receipt of the coal. Federal tax extension Taxable Tires Taxable tires are divided into three categories for reporting and figuring the tax as described below. Federal tax extension A tax is imposed on taxable tires sold by the manufacturer, producer, or importer at the rate of $. Federal tax extension 0945 ($. Federal tax extension 04725 in the case of a biasply tire or super single tire) for each 10 pounds of the maximum rated load capacity over 3,500 pounds. Federal tax extension The three categories for reporting the tax and the tax rate are listed below. Federal tax extension Taxable tires other than biasply or super single tires at $. Federal tax extension 0945. Federal tax extension Taxable tires, biasply or super single tires (other than super single tires designed for steering) at $. Federal tax extension 04725. Federal tax extension Taxable tires, super single tires designed for steering at $. Federal tax extension 0945. Federal tax extension A taxable tire is any tire of the type used on highway vehicles if wholly or partially made of rubber and if marked according to federal regulations for highway use. Federal tax extension A biasply tire is a pneumatic tire on which the ply cords that extend to the beads are laid at alternate angles substantially less than 90 degrees to the centerline of the tread. Federal tax extension A super single tire is a tire greater than 13 inches in cross section width designed to replace 2 tires in a dual fitment. Federal tax extension Special rule, manufacturer's retail stores. Federal tax extension   The excise tax on taxable tires is imposed at the time the taxable tires are delivered to the manufacturer-owned retail stores, not at the time of sale. Federal tax extension Tires on imported articles. Federal tax extension   The importer of an article equipped with taxable tires is treated as the manufacturer of the tires and is liable for the taxable tire excise tax when the article is sold (except in the case of an automobile bus chassis or body with tires). Federal tax extension Tires exempt from tax. Federal tax extension   The tax on taxable tires does not apply to the following items. Federal tax extension Domestically recapped or retreaded tires if the tires have been sold previously in the United States and were taxable tires at the time of sale. Federal tax extension Tire carcasses not suitable for commercial use. Federal tax extension Tires for use on qualifying intercity, local, and school buses. Federal tax extension For tax-free treatment, the registration requirements discussed earlier under Requirements for Exempt Sales apply. Federal tax extension Tires sold for the exclusive use of the Department of Defense or the Coast Guard. Federal tax extension Tires of a type used exclusively on mobile machinery. Federal tax extension A taxable tire used on mobile machinery is not exempt from tax. Federal tax extension Qualifying intercity or local bus. Federal tax extension   This is any bus used mainly (more than 50%) to transport the general public for a fee and that either operates on a schedule along regular routes or seats at least 20 adults (excluding the driver). Federal tax extension Qualifying school bus. Federal tax extension   This is any bus substantially all the use (85% or more) of which is to transport students and employees of schools. Federal tax extension Credit or refund. Federal tax extension   A credit or refund (without interest) is allowable on tax-paid tires if the tires have been: Exported; Sold to a state or local government for its exclusive use; Sold to a nonprofit educational organization for its exclusive use (as defined under Communications Tax in chapter 4); Sold to a qualified blood collector organization (as defined under Communications Tax in chapter 4) for its exclusive use in connection with a vehicle the organization certifies will be primarily used in the collection, storage, or transportation of blood; Used or sold for use as supplies for vessels; or Sold in connection with qualified intercity, local, or school buses. Federal tax extension   Also, a credit or refund (without interest) is allowable on tax-paid tires sold by any person on, or in connection with, any other article that is sold or used in an activity listed above. Federal tax extension   The person who paid the tax is eligible to make the claim. Federal tax extension Gas Guzzler Tax Tax is imposed on the sale by the manufacturer of automobiles of a model type that has a fuel economy standard as measured by the Environmental Protection Agency (EPA) of less than 22. Federal tax extension 5 miles per gallon. Federal tax extension If you import an automobile for personal use, you may be liable for this tax. Federal tax extension Figure the tax on Form 6197, as discussed later. Federal tax extension The tax rate is based on fuel economy rating. Federal tax extension The tax rates for the gas guzzler tax are shown on Form 6197. Federal tax extension A person that lengthens an existing automobile is the manufacturer of an automobile. Federal tax extension Automobiles. Federal tax extension   An automobile (including limousines) means any four-wheeled vehicle that is: Rated at an unloaded gross vehicle weight of 6,000 pounds or less, Propelled by an engine powered by gasoline or diesel fuel, and Intended for use mainly on public streets, roads, and highways. Federal tax extension Vehicles not subject to tax. Federal tax extension   For the gas guzzler tax, the following vehicles are not considered automobiles. Federal tax extension Limousines with a gross unloaded vehicle weight of more than 6,000 pounds. Federal tax extension Vehicles operated exclusively on a rail or rails. Federal tax extension Vehicles sold for use and used primarily: As ambulances or combination ambulance-hearses, For police or other law enforcement purposes by federal, state, or local governments, or For firefighting purposes. Federal tax extension Vehicles treated under 49 U. Federal tax extension S. Federal tax extension C. Federal tax extension 32901 (1978) as non-passenger automobiles. Federal tax extension This includes limousines manufactured primarily to transport more than 10 persons. Federal tax extension   The manufacturer can sell a vehicle described in item (3) tax free only when the sale is made directly to a purchaser for the described emergency use and the manufacturer and purchaser (other than a state or local government) are registered. Federal tax extension   Treat an Indian tribal government as a state only if the police or other law enforcement purposes are an essential tribal government function. Federal tax extension Model type. Federal tax extension   Model type is a particular class of automobile as determined by EPA regulations. Federal tax extension Fuel economy. Federal tax extension   Fuel economy is the average number of miles an automobile travels on a gallon of gasoline (or diesel fuel) rounded to the nearest 0. Federal tax extension 1 mile as figured by the EPA. Federal tax extension Imported automobiles. Federal tax extension   The tax also applies to automobiles that do not have a prototype-based fuel economy rating assigned by the EPA. Federal tax extension An automobile imported into the United States without a certificate of conformity to United States emission standards and that has no assigned fuel economy rating must be either: Converted by installation of emission controls to conform in all material respects to an automobile already certified for sale in the United States, or Modified by installation of emission control components and individually tested to demonstrate emission compliance. Federal tax extension   An imported automobile that has been converted to conform to an automobile already certified for sale in the United States may use the fuel economy rating assigned to that certified automobile. Federal tax extension   A fuel economy rating is not generally available for modified imported automobiles because the EPA does not require a highway fuel economy test on them. Federal tax extension A separate highway fuel economy test would be required to devise a fuel economy rating (otherwise the automobile is presumed to fall within the lowest fuel economy rating category). Federal tax extension   For more information about fuel economy ratings for imported automobiles, see Revenue Ruling 86-20 and Revenue Procedure 86-9 in Cumulative Bulletin 1986-1, and Revenue Procedure 87-10 in Cumulative Bulletin 1987-1. Federal tax extension Exemptions. Federal tax extension   No one is exempt from the gas guzzler tax, including the federal government, state and local governments, qualified blood collector organizations, and nonprofit educational organizations. Federal tax extension However, see Vehicles not subject to tax, earlier. Federal tax extension Form 6197. Federal tax extension   Use Form 6197 to figure your tax liability for each quarter. Federal tax extension Attach Form 6197 to your Form 720 for the quarter. Federal tax extension See the Form 6197 instructions for more information and the one-time filing rules. Federal tax extension Credit or refund. Federal tax extension   If the manufacturer paid the tax on a vehicle that is used or resold for an emergency use (see item (3) under Vehicles not subject to tax), the manufacturer can claim a credit or refund. Federal tax extension For information about how to file for credits or refunds, see the Instructions for Form 720 or Form 8849. Federal tax extension Vaccines Tax is imposed on certain vaccines sold by the manufacturer in the United States. Federal tax extension A taxable vaccine means any of the following vaccines. Federal tax extension Any vaccine containing diphtheria toxoid. Federal tax extension Any vaccine containing tetanus toxoid. Federal tax extension Any vaccine containing pertussis bacteria, extracted or partial cell bacteria, or specific pertussis antigens. Federal tax extension Any vaccine containing polio virus. Federal tax extension Any vaccine against measles. Federal tax extension Any vaccine against mumps. Federal tax extension Any vaccine against rubella. Federal tax extension Any vaccine against hepatitis A. Federal tax extension Any vaccine against hepatitis B. Federal tax extension Any vaccine against chicken pox. Federal tax extension Any vaccine against rotavirus gastroenteritis. Federal tax extension Any HIB vaccine. Federal tax extension Any conjugate vaccine against streptococcus pneumoniae. Federal tax extension Any trivalent vaccine against influenza or any other vaccine against influenza. Federal tax extension Any meningococcal vaccine. Federal tax extension Any vaccine against the human papillomavirus. Federal tax extension The effective date for the tax on any vaccine against influenza, other than trivalent influenza vaccines, is the later of August 1, 2013, or the date the Secretary of Health and Human Services lists a vaccine against seasonal influenza for purposes of compensation for any vaccine-related injury or death through the Vaccine Injury Compensation Trust Fund. Federal tax extension The tax is $. Federal tax extension 75 per dose of each taxable vaccine. Federal tax extension The tax per dose on a vaccine that contains more than one taxable vaccine is $. Federal tax extension 75 times the number of taxable vaccines. Federal tax extension Taxable use. Federal tax extension   Any manufacturer (including a governmental entity) that uses a taxable vaccine before it is sold will be liable for the tax in the same manner as if the vaccine was sold by the manufacturer. Federal tax extension Credit or refund. Federal tax extension   A credit or refund (without interest) is available if the vaccine is: Returned to the person who paid the tax (other than for resale), or Destroyed. Federal tax extension The claim for a credit or refund must be filed within 6 months after the vaccine is returned or destroyed. Federal tax extension Conditions to allowance. Federal tax extension   To claim a credit or refund, the person who paid the tax must have repaid or agreed to repay the tax to the ultimate purchaser of the vaccine or obtained the written consent of such purchaser to allowance of the credit or refund. Federal tax extension Taxable Medical Devices Taxable medical devices. Federal tax extension   The tax on the sale of certain medical devices by the manufacturer, producer, or importer of the device is 2. Federal tax extension 3% (. Federal tax extension 023) of the sales price. Federal tax extension A taxable medical device is a device that is listed as a device with the Food and Drug Administration (FDA) under section 510(j) of the Federal Food, Drug, and Cosmetic Act and 21 CFR part 807, pursuant to FDA requirements. Federal tax extension There are specific exemptions for eyeglasses, contact lenses, and hearing aids. Federal tax extension There is also an exemption for devices that are determined by the Secretary to be of a type that are generally purchased by the general public at retail for individual use (this exemption is known as the retail exemption). Federal tax extension See T. Federal tax extension D. Federal tax extension 9604 for information on how to determine whether a device falls within the retail exemption, and examples of how a taxpayer might evaluate a given device. Federal tax extension More information. Federal tax extension   For more information on the medical device tax, see section 4191, T. Federal tax extension D. Federal tax extension 9604, and Notice 2012-77. Federal tax extension You can find T. Federal tax extension D. Federal tax extension 9604 and Notice 2012-77 on pages 730 and 781, respectively, of I. Federal tax extension R. Federal tax extension B. Federal tax extension 2012-52 at www. Federal tax extension irs. Federal tax extension gov/pub/irs-irbs/irb12-52. Federal tax extension pdf. Federal tax extension Prev  Up  Next   Home   More Online Publications