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Federal Tax Income Return

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Federal Tax Income Return

Federal tax income return Publication 595 - Main Contents Table of Contents Capital Construction FundCCF Accounts Types of Accounts You Must Maintain Within a CCF Tax Treatment of CCF Deposits Tax Treatment of CCF Earnings Tax Treatment of CCF Withdrawals More Information How To Get Tax Help Capital Construction Fund The following sections discuss CCF accounts and the types of bookkeeping accounts you must maintain when you invest in a CCF account. Federal tax income return They also discuss the income tax treatment of CCF deposits, earnings, and withdrawals. Federal tax income return CCF Accounts This section explains who can open a CCF account and how to use the account to defer income tax. Federal tax income return Opening a CCF account. Federal tax income return   If you are a U. Federal tax income return S. Federal tax income return citizen and you own or lease one or more eligible vessels (defined later), you can open a CCF account. Federal tax income return However, before you open your CCF account, you must enter into an agreement with the Secretary of Commerce through the NMFS. Federal tax income return This agreement will establish the following. Federal tax income return Agreement vessels. Federal tax income return Eligible vessels named in the agreement that will be the basis for the deferral of income tax. Federal tax income return Planned use of withdrawals. Federal tax income return Use of CCF funds to acquire, build, or rebuild a vessel. Federal tax income return CCF depository. Federal tax income return Where your CCF funds will be held. Federal tax income return    You can request an application kit or get additional information from NMFS at the following address. Federal tax income return NOAA/NMFS, Financial Services Division, F/MB5 Capital Construction Fund Program 1315 East-West Highway Silver Spring, MD 20910-3282    You can obtain information on the Capital Construction Fund Program at the following website: www. Federal tax income return nmfs. Federal tax income return noaa. Federal tax income return gov/mb/financial_services/ccf. Federal tax income return htm. Federal tax income return    You can call NMFS to request an application kit or get additional information at (301) 713-2393 (ext. Federal tax income return 204). Federal tax income return Their fax number is (301) 713-1939. Federal tax income return Eligible vessels. Federal tax income return   There are two types of vessels that may be considered eligible, those weighing 5 tons or more and those weighing less than 5 tons. Federal tax income return For each type, certain requirements must be met. Federal tax income return Vessel weighing 5 tons or more. Federal tax income return   To be considered eligible, the vessel must meet all the following requirements. Federal tax income return Be built or rebuilt in the United States. Federal tax income return Be documented under the laws of the United States. Federal tax income return Be used commercially in the fisheries of the United States. Federal tax income return Be operated in the foreign or domestic commerce of the United States. Federal tax income return Vessel weighing less than 5 tons. Federal tax income return   A small vessel, weighing at least 2 net tons but less than 5 net tons, must meet all the following requirements to be considered eligible. Federal tax income return Be built or rebuilt in the United States. Federal tax income return Be owned by a U. Federal tax income return S. Federal tax income return citizen. Federal tax income return Have a home port in the United States. Federal tax income return Be used commercially in the fisheries of the United States. Federal tax income return Deferring tax on CCF deposits and earnings. Federal tax income return   You can use a CCF account to defer income tax by taking the following actions. Federal tax income return Making deposits to your CCF account from taxable income. Federal tax income return Excluding from income deposits assigned to certain accounts (discussed later). Federal tax income return Making withdrawals from your CCF account when you acquire, build, or rebuild fishing vessels. Federal tax income return Reducing the basis of fishing vessels you acquire, build, or rebuild to recapture amounts previously excluded from tax. Federal tax income return    Reporting requirements. Federal tax income return Beginning with the tax year in which you establish your agreement, you must report annual deposit and withdrawal activity to the NMFS on NOAA Form 34-82. Federal tax income return This form is due within 30 days after you file your federal income tax return even if no deposits or withdrawals are made. Federal tax income return For more information, contact the NMFS at the address or phone number given earlier. Federal tax income return Types of Accounts You Must Maintain Within a CCF This section discusses the three types of bookkeeping accounts you must maintain when you invest in a CCF account. Federal tax income return Your total CCF deposits and earnings for any given year are limited to the amount attributed to these three accounts for that year. Federal tax income return Capital account. Federal tax income return   The capital account consists primarily of amounts attributable to the following items. Federal tax income return Allowable depreciation deductions for agreement vessels. Federal tax income return Any nontaxable return of capital from either (a) or (b), below. Federal tax income return The sale or other disposition of agreement vessels. Federal tax income return Insurance or indemnity proceeds attributable to agreement vessels. Federal tax income return Any tax-exempt interest earned on state or local bonds in your CCF account. Federal tax income return Capital gain account. Federal tax income return   The capital gain account consists of amounts attributable to the following items reduced by any capital losses from assets held in your CCF account for more than 6 months. Federal tax income return Any capital gain from either of the following sources. Federal tax income return The sale or other disposition of agreement vessels held for more than 6 months. Federal tax income return Insurance or indemnity proceeds attributable to agreement vessels held for more than 6 months. Federal tax income return Any capital gain from assets held in your CCF account for more than 6 months. Federal tax income return Ordinary income account. Federal tax income return   The ordinary income account consists of amounts attributable to the following items. Federal tax income return Any earnings (without regard to the carryback of any net operating or net capital loss) from the operation of agreement vessels in the fisheries of the United States or in the foreign or domestic commerce of the United States. Federal tax income return Any capital gain from the following sources reduced by any capital losses from assets held in your CCF account for 6 months or less. Federal tax income return The sale or other disposition of agreement vessels held for 6 months or less. Federal tax income return Insurance or indemnity proceeds attributable to agreement vessels held for 6 months or less. Federal tax income return Any capital gain from assets held in your CCF account for 6 months or less. Federal tax income return Any ordinary income (such as depreciation recapture) from either of the following sources. Federal tax income return The sale or other disposition of agreement vessels. Federal tax income return Insurance or indemnity proceeds attributable to agreement vessels. Federal tax income return Any interest (not including tax-exempt interest from state and local bonds), most dividends, and other ordinary income earned on the assets in your CCF account. Federal tax income return Tax Treatment of CCF Deposits This section explains the tax treatment of income used as the basis for CCF deposits. Federal tax income return Capital gains. Federal tax income return   Do not report any transaction that produces a capital gain if you deposit the net proceeds into your CCF account. Federal tax income return This treatment applies to either of the following transactions. Federal tax income return The sale or other disposition of an agreement vessel. Federal tax income return The receipt of insurance or indemnity proceeds attributable to an agreement vessel. Federal tax income return Depreciation recapture. Federal tax income return   Do not report any transaction that produces depreciation recapture if you deposit the net proceeds into your CCF account. Federal tax income return This treatment applies to either of the following transactions. Federal tax income return The sale or other disposition of an agreement vessel. Federal tax income return The receipt of insurance or indemnity proceeds attributable to an agreement vessel. Federal tax income return Earnings from operations. Federal tax income return   Report earnings from the operation of agreement vessels on your Schedule C or C-EZ (Form 1040) even if you deposit part of these earnings into your CCF account. Federal tax income return You subtract any part of the earnings you deposited into your CCF account from the amount you would otherwise enter as taxable income on Form 1040, line 43 (for 2005). Federal tax income return Next to line 43, write “CCF” and the amount of the deposits. Federal tax income return Do not deduct these CCF deposits on Schedule C or C-EZ (Form 1040). Federal tax income return If you deposit earnings from operations into your CCF account and you must complete other forms such as Form 6251, Alternative Minimum Tax (Individuals), or a worksheet for Schedule D (Form 1040), you will need to make an extra computation. Federal tax income return When the other form instructs you to use the amount from Form 1040, line 41 (for 2005), do not use that amount. Federal tax income return Instead, add Form 1040, lines 42 and 43 (for 2005), and use that amount. Federal tax income return Self-employment tax. Federal tax income return   You must use your net profit or loss from your fishing business to figure your self-employment tax. Federal tax income return Do not reduce your net profit or loss by any earnings from operations you deposit into your CCF account. Federal tax income return    Partnerships and S corporations. Federal tax income return The deduction for partnership earnings from operations deposited into a CCF account is separately stated on Schedule K (Form 1065), line 13d, and allocated to the partners on Schedule K-1 (Form 1065), box 13 (for 2005). Federal tax income return   The deduction for S corporation earnings deposited into a CCF account is separately stated on Schedule K (Form 1120S), line 12d, and allocated to the shareholders on Schedule K-1 (Form 1120S), box 12 (for 2005). Federal tax income return Tax Treatment of CCF Earnings This section explains the tax treatment of the earnings from the assets in your CCF account when the earnings are redeposited or left in your account. Federal tax income return However, if you choose to withdraw the earnings in the year earned, you must generally pay income tax on them. Federal tax income return Capital gains. Federal tax income return   Do not report any capital gains from the sale of capital assets held in your CCF account. Federal tax income return This includes capital gain distributions reported to you on Form 1099-DIV or a substitute statement. Federal tax income return However, you should attach a statement to your tax return to list the payers and the amounts and to identify the capital gains as “CCF account earnings. Federal tax income return ” Interest and dividends. Federal tax income return   Do not report any ordinary income (such as interest and dividends) you earn on the assets in your CCF account. Federal tax income return However, you should attach a statement to your return to list the payers and the amounts and to identify them as “CCF account earnings. Federal tax income return ”   If you are required to file Schedule B (Form 1040), you can add these earnings to the list of payers and amounts on line 1 or line 5 and identify them as “CCF earnings. Federal tax income return ” Then, subtract the same amounts from the list and identify them as “CCF deposits. Federal tax income return ” Tax-exempt interest. Federal tax income return   Do not report tax-exempt interest from state or local bonds you held in your CCF account. Federal tax income return You are not required to report this interest on Form 1040, line 8b. Federal tax income return Tax Treatment of CCF Withdrawals This section discusses the tax treatment of amounts you withdraw from your CCF account during the year. Federal tax income return Qualified Withdrawals A qualified withdrawal from a CCF account is one that is approved by NMFS for either of the following uses. Federal tax income return Acquiring, building, or rebuilding qualified vessels (defined next). Federal tax income return Making principal payments on the mortgage of a qualified vessel. Federal tax income return NMFS will not approve amounts withdrawn to purchase nets not continuously attached to the vessel, such as seine nets, gill set-nets, and gill drift-nets. Federal tax income return NMFS will approve amounts withdrawn to purchase trawl nets. Federal tax income return Qualified vessel. Federal tax income return   This is any vessel that meets all of the following requirements. Federal tax income return The vessel was built or rebuilt in the United States. Federal tax income return The vessel is documented under the laws of the United States. Federal tax income return The person maintaining the CCF account agrees with the Secretary of Commerce that the vessel will be operated in United States foreign trade, Great Lakes trade, noncontiguous domestic trade, or the fisheries of the United States. Federal tax income return How to determine the source of qualified withdrawals. Federal tax income return   When you make a qualified withdrawal, the amount is treated as being withdrawn in the following order from the accounts listed below. Federal tax income return The capital account. Federal tax income return The capital gain account. Federal tax income return The ordinary income account. Federal tax income return Excluding qualified withdrawals from tax. Federal tax income return   Do not report on your income tax return any qualified withdrawals from your CCF account. Federal tax income return Reduce the depreciable basis of fishing vessels you acquire, build, or rebuild when you make a qualified withdrawal from either the capital gain or the ordinary income account. Federal tax income return Nonqualified Withdrawals A nonqualified withdrawal from a CCF account is generally any withdrawal that is not a qualified withdrawal. Federal tax income return Qualified withdrawals are defined under Qualified Withdrawals, earlier. Federal tax income return Examples. Federal tax income return   Examples of nonqualified withdrawals include the following amounts from either the ordinary income account or the capital gain account. Federal tax income return Amounts remaining in a CCF account upon termination of your agreement with NMFS. Federal tax income return Amounts you withdraw and use to make principal payments on the mortgage of a vessel if the basis of that vessel and the bases of other vessels you own have already been reduced to zero. Federal tax income return Amounts determined by the IRS to cause your CCF account balance to exceed the amount appropriate to meet your planned use of withdrawals. Federal tax income return You will generally be given 3 years to revise your plans to cover this excess balance. Federal tax income return Amounts you leave in your account for more than 25 years. Federal tax income return There is a graduated schedule under which the percentage applied to determine the amount of the nonqualified withdrawal increases from 20% in the 26th year to 100% in the 30th year. Federal tax income return How to determine the source of nonqualified withdrawals. Federal tax income return    When you make a nonqualified withdrawal from your CCF account, the amount is treated as being withdrawn in the following order from the accounts listed below. Federal tax income return The ordinary income account. Federal tax income return The capital gain account. Federal tax income return The capital account. Federal tax income return Paying tax on nonqualified withdrawals. Federal tax income return   In general, nonqualified withdrawals are taxed separately from your other gross income and at the highest marginal tax rate in effect for the year of withdrawal. Federal tax income return However, nonqualified withdrawals treated as made from the capital gain account are taxed at a rate that cannot exceed 15% for individuals and 34% for corporations. Federal tax income return    Partnerships and S corporations. Federal tax income return Taxable nonqualified partnership withdrawals are separately stated on Schedule K (Form 1065), line 20c, and allocated to the partners on Schedule K-1 (Form 1065), box 20 (for 2005). Federal tax income return Taxable nonqualified withdrawals by an S corporation are separately stated on Schedule K (Form 1120S), line 17d, and allocated to the shareholders on Schedule K-1 (Form 1120S), box 17. Federal tax income return Interest. Federal tax income return   You must pay interest on the additional tax due to nonqualified withdrawals that are treated as made from either the ordinary income or the capital gain account. Federal tax income return The interest period begins on the last date for paying tax for the year for which you deposited the amount you withdrew from your CCF account. Federal tax income return The period ends on the last date for paying tax for the year in which you make the nonqualified withdrawal. Federal tax income return The interest rate on the nonqualified withdrawal is simple interest. Federal tax income return The rate is subject to change annually and is published in the Federal Register. Federal tax income return    You also can call NMFS at (301) 713-2393 (ext. Federal tax income return 204) to get the current interest rate. Federal tax income return Interest deduction. Federal tax income return   You can deduct the interest you pay on a nonqualified withdrawal as a trade or business expense. Federal tax income return Reporting the additional tax and interest. Federal tax income return   Attach a statement to your income tax return showing your computation of the tax and the interest on a nonqualified withdrawal. Federal tax income return Include the tax and interest on Form 1040, line 63 (for 2005). Federal tax income return To the left of line 63, write in the amount of tax and interest and “CCF. Federal tax income return ” Tax benefit rule. Federal tax income return   If any portion of your nonqualified withdrawal is properly attributable to contributions (not earnings on the contributions) you made to the CCF account that did not reduce your tax liability for any tax year prior to the withdrawal year, the following tax treatment applies. Federal tax income return The part that did not reduce your tax liability for any year prior to the withdrawal year is not taxed. Federal tax income return That part is allowed as a net operating loss deduction. Federal tax income return More Information This section briefly discussed the CCF program. Federal tax income return For more detailed information, see the following legislative authorities. Federal tax income return Section 607 of the Merchant Marine Act of 1936, as amended (46 U. Federal tax income return S. Federal tax income return C. Federal tax income return 1177). Federal tax income return Chapter 2, Part 259 of title 50 of the Code of Federal Regulations (50 C. Federal tax income return F. Federal tax income return R. Federal tax income return , Part 259). Federal tax income return Subchapter A, Part 3 of title 26 of the Code of Federal Regulations (26 C. Federal tax income return F. Federal tax income return R. Federal tax income return , Part 3). Federal tax income return Section 7518 of the Internal Revenue Code (IRC 7518). Federal tax income return The application kit you can obtain from NMFS at the address or phone number given earlier may contain copies of some of these sources of additional information. Federal tax income return Also, see their web page at www. Federal tax income return nmfs. Federal tax income return noaa. Federal tax income return gov/mb/financial_services/ccf. Federal tax income return htm. Federal tax income return How To Get Tax Help You can get help with unresolved tax issues, order free publications and forms, ask tax questions, and get information from the IRS in several ways. Federal tax income return By selecting the method that is best for you, you will have quick and easy access to tax help. Federal tax income return Contacting your Taxpayer Advocate. Federal tax income return   If you have attempted to deal with an IRS problem unsuccessfully, you should contact your Taxpayer Advocate. Federal tax income return   The Taxpayer Advocate independently represents your interests and concerns within the IRS by protecting your rights and resolving problems that have not been fixed through normal channels. Federal tax income return While Taxpayer Advocates cannot change the tax law or make a technical tax decision, they can clear up problems that resulted from previous contacts and ensure that your case is given a complete and impartial review. Federal tax income return   To contact your Taxpayer Advocate: Call the Taxpayer Advocate toll free at 1-877-777-4778, Call, write, or fax the Taxpayer Advocate office in your area, Call 1-800-829-4059 if you are a TTY/TDD user, or Visit www. Federal tax income return irs. Federal tax income return gov/advocate. Federal tax income return   For more information, see Publication 1546, How To Get Help With Unresolved Tax Problems (now available in Chinese, Korean, Russian, and Vietnamese, in addition to English and Spanish). Federal tax income return Free tax services. Federal tax income return   To find out what services are available, get Publication 910, IRS Guide to Free Tax Services. Federal tax income return It contains a list of free tax publications and an index of tax topics. Federal tax income return It also describes other free tax information services, including tax education and assistance programs and a list of TeleTax topics. Federal tax income return Internet. Federal tax income return You can access the IRS website 24 hours a day, 7 days a week, at www. Federal tax income return irs. Federal tax income return gov to: E-file your return. Federal tax income return Find out about commercial tax preparation and e-file services available free to eligible taxpayers. Federal tax income return Check the status of your refund. Federal tax income return Click on Where's My Refund. Federal tax income return Be sure to wait at least 6 weeks from the date you filed your return (3 weeks if you filed electronically). Federal tax income return Have your tax return available because you will need to know your social security number, your filing status, and the exact whole dollar amount of your refund. Federal tax income return Download forms, instructions, and publications. Federal tax income return Order IRS products online. Federal tax income return Research your tax questions online. Federal tax income return Search publications online by topic or keyword. Federal tax income return View Internal Revenue Bulletins (IRBs) published in the last few years. Federal tax income return Figure your withholding allowances using our Form W-4 calculator. Federal tax income return Sign up to receive local and national tax news by email. Federal tax income return Get information on starting and operating a small business. Federal tax income return Phone. Federal tax income return Many services are available by phone. Federal tax income return Ordering forms, instructions, and publications. Federal tax income return Call 1-800-829-3676 to order current-year forms, instructions, and publications and prior-year forms and instructions. Federal tax income return You should receive your order within 10 days. Federal tax income return Asking tax questions. Federal tax income return Call the IRS with your tax questions at 1-800-829-1040. Federal tax income return Solving problems. Federal tax income return You can get face-to-face help solving tax problems every business day in IRS Taxpayer Assistance Centers. Federal tax income return An employee can explain IRS letters, request adjustments to your account, or help you set up a payment plan. Federal tax income return Call your local Taxpayer Assistance Center for an appointment. Federal tax income return To find the number, go to www. Federal tax income return irs. Federal tax income return gov/localcontacts or look in the phone book under United States Government, Internal Revenue Service. Federal tax income return TTY/TDD equipment. Federal tax income return If you have access to TTY/TDD equipment, call 1-800-829-4059 to ask tax questions or to order forms and publications. Federal tax income return TeleTax topics. Federal tax income return Call 1-800-829-4477 and press 2 to listen to pre-recorded messages covering various tax topics. Federal tax income return Refund information. Federal tax income return If you would like to check the status of your refund, call 1-800-829-4477 and press 1 for automated refund information and follow the recorded instructions or call 1-800-829-1954. Federal tax income return Be sure to wait at least 6 weeks from the date you filed your return (3 weeks if you filed electronically). Federal tax income return Have your tax return available because you will need to know your social security number, your filing status, and the exact whole dollar amount of your refund. Federal tax income return Evaluating the quality of our telephone services. Federal tax income return To ensure that IRS representatives give accurate, courteous, and professional answers, we use several methods to evaluate the quality of our telephone services. Federal tax income return One method is for a second IRS representative to sometimes listen in on or record telephone calls. Federal tax income return Another is to ask some callers to complete a short survey at the end of the call. Federal tax income return Walk-in. Federal tax income return Many products and services are available on a walk-in basis. Federal tax income return Products. Federal tax income return You can walk in to many post offices, libraries, and IRS offices to pick up certain forms, instructions, and publications. Federal tax income return Some IRS offices, libraries, grocery stores, copy centers, city and county government offices, credit unions, and office supply stores have a collection of products available to print from a CD-ROM or photocopy from reproducible proofs. Federal tax income return Also, some IRS offices and libraries have the Internal Revenue Code, regulations, Internal Revenue Bulletins, and Cumulative Bulletins available for research purposes. Federal tax income return Services. Federal tax income return You can walk in to your local Taxpayer Assistance Center every business day for personal, face-to-face tax help. Federal tax income return An employee can explain IRS letters, request adjustments to your account, or help you set up a payment plan. Federal tax income return If you need to resolve a tax problem, have questions about how the tax law applies to your individual tax return, or you're more comfortable talking with someone in person, visit your local Taxpayer Assistance Center where you can spread out your records and talk with an IRS representative face-to-face. Federal tax income return No appointment is necessary, but if you prefer, you can call your local Center and leave a message requesting an appointment to resolve a tax account issue. Federal tax income return A representative will call you back within 2 business days to schedule an in-person appointment at your convenience. Federal tax income return To find the number, go to www. Federal tax income return irs. Federal tax income return gov/localcontacts or look in the phone book under United States Government, Internal Revenue Service. Federal tax income return Mail. Federal tax income return You can send your order for forms, instructions, and publications to the address below and receive a response within 10 business days after your request is received. Federal tax income return National Distribution Center P. Federal tax income return O. Federal tax income return Box 8903 Bloomington, IL 61702-8903 CD-ROM for tax products. Federal tax income return You can order Publication 1796, IRS Tax Products on CD-ROM, and obtain: A CD that is released twice so you have the latest products. Federal tax income return The first release ships in late December and the final release ships in late February. Federal tax income return Current-year forms, instructions, and publications. Federal tax income return Prior-year forms, instructions, and publications. Federal tax income return Tax Map: an electronic research tool and finding aid. Federal tax income return Tax law frequently asked questions (FAQs). Federal tax income return Tax Topics from the IRS telephone response system. Federal tax income return Fill-in, print, and save features for most tax forms. Federal tax income return Internal Revenue Bulletins. Federal tax income return Toll-free and email technical support. Federal tax income return Buy the CD-ROM from National Technical Information Service (NTIS) at www. Federal tax income return irs. Federal tax income return gov/cdorders for $25 (no handling fee) or call 1-877-233-6767 toll free to buy the CD-ROM for $25 (plus a $5 handling fee). Federal tax income return CD-ROM for small businesses. Federal tax income return Publication 3207, Small Business Resource Guide CD-ROM, has a new look and enhanced navigation features. Federal tax income return This CD includes: Helpful information, such as how to prepare a business plan, find financing for your business, and much more. Federal tax income return All the business tax forms, instructions, and publications needed to successfully manage a business. Federal tax income return Tax law changes. Federal tax income return IRS Tax Map to help you find forms, instructions, and publications by searching on a keyword or topic. Federal tax income return Web links to various government agencies, business associations, and IRS organizations. Federal tax income return “Rate the Product” survey—your opportunity to suggest changes for future editions. Federal tax income return An updated version of this CD is available each year in early April. Federal tax income return You can get a free copy by calling 1-800-829-3676 or by visiting www. Federal tax income return irs. Federal tax income return gov/smallbiz. Federal tax income return Prev  Up  Next   Home   More Online Publications
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Understanding Your CP515 Business Notice

You received this reminder notice because our records indicate you didn't file a business tax return.


What you need to do

  • File your required business return immediately.
  • If eligible, file your return electronically with all required schedules, using your e-file provider, or
  • File a paper return with all required schedules
  • Complete the Response form enclosed with your notice and mail it to us, using the enclosed envelope:
    • To explain why you are filing late.
    • To explain why you don’t think you need to file.
    • If you already filed and it's been more than four weeks, or if you used a different name or employer ID number (EIN) than shown on the notice when filing.
  • If you filed within the last four weeks using the same name and EIN shown on the notice, you may disregard this notice.

You may want to...

  • Review Tax Information for Businesses which provides information regarding various business filing issues.
  • Review your records and ensure all returns are filed timely.

Answers to Common Questions

Why did I receive multiple CP 515 notices?
If your business hasn't filed tax returns, a notice will be generated and mailed for each tax form and tax period the IRS shows as delinquent.

I have never had employees and or filed this return previously so why did I receive a notice requesting me to file?
When you apply for an employer identification number, filing requirements are established requiring specific types of returns to be filed (e.g. Form 940, Employer's Annual Federal Unemployment Tax Return; Form 941, Employer's Quarterly Federal Tax Return; Form 1120, U.S. Corporation Income Tax Return, etc.). When the return isn't filed, the IRS considers it to be delinquent and generates a notice requesting the return be filed.

Do I still need to file a tax return even if I had no employees or business activity during the tax period(s) in question?
If you had no employees or business activity during a tax period, you aren't required to file a return for that tax period. You still need to respond to this notice. 

If you made Federal Tax Deposits or other payments or credits for the tax period, you must file a signed return showing the payments to get a refund.


Tips for next year

File all required returns by the appropriate due date.


  • Understanding your notice

    Your notice may look different from the sample because the information contained in your notice is tailored to your situation.

    Notice CP515B, Page 1

    Notice CP515B, Page 2

    Notice CP515B, Page 3

    Notice CP515B, Page 4

    Notice CP515B, Page 5

Page Last Reviewed or Updated: 10-Jan-2014

Printable samples of this notice (PDF)

 

 

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 Income Return

Federal tax income return 4. Federal tax income return   Underpayment Penalty for 2013 Table of Contents Introduction Topics - This chapter discusses: Useful Items - You may want to see: General RuleFarmers and fishermen. Federal tax income return Higher income taxpayers. Federal tax income return Minimum required for higher income taxpayers. Federal tax income return Estate or trust payments of estimated tax. Federal tax income return Lowering or eliminating the penalty. Federal tax income return ExceptionsLess Than $1,000 Due No Tax Liability Last Year Figuring Your Required Annual Payment (Part I) Short Method for Figuring the Penalty (Part III) Regular Method for Figuring the Penalty (Part IV)Figuring Your Underpayment (Part IV, Section A) Worksheet for Form 2210, Part IV, Section B—Figuring the Penalty Annualized Income Installment Method (Schedule AI) Farmers and Fishermen Waiver of PenaltyFarmers and fishermen. Federal tax income return Introduction If you did not pay enough tax, either through withholding or by making timely estimated tax payments, you will have underpaid your estimated tax and may have to pay a penalty. Federal tax income return You may understand this chapter better if you can refer to a copy of your latest federal income tax return. Federal tax income return No penalty. Federal tax income return   Generally, you will not have to pay a penalty for 2013 if any of the following apply. Federal tax income return The total of your withholding and timely estimated tax payments was at least as much as your 2012 tax. Federal tax income return (See Special rules for certain individuals for higher income taxpayers and farmers and fishermen. Federal tax income return ) The tax balance due on your 2013 return is no more than 10% of your total 2013 tax, and you paid all required estimated tax payments on time. Federal tax income return Your total tax for 2013 (defined later) minus your withholding is less than $1,000. Federal tax income return You did not have a tax liability for 2012. Federal tax income return You did not have any withholding taxes and your current year tax (less any household employment taxes) is less than $1,000. Federal tax income return IRS can figure the penalty for you. Federal tax income return   If you think you owe the penalty, but you do not want to figure it yourself when you file your tax return, you may not have to. Federal tax income return Generally, the IRS will figure the penalty for you and send you a bill. Federal tax income return   You only need to figure your penalty in the following three situations. Federal tax income return You are requesting a waiver of part, but not all, of the penalty. Federal tax income return You are using the annualized income installment method to figure the penalty. Federal tax income return You are treating the federal income tax withheld from your income as paid on the dates actually withheld. Federal tax income return However, if these situations do not apply to you, and you think you can lower or eliminate your penalty, complete Form 2210 or Form 2210-F and attach it to your return. Federal tax income return See Form 2210 , later. Federal tax income return Topics - This chapter discusses: The general rule for the underpayment penalty, Special rules for certain individuals, Exceptions to the underpayment penalty, How to figure your underpayment and the amount of your penalty on Form 2210, and How to ask the IRS to waive the penalty. Federal tax income return Useful Items - You may want to see: Form (and Instructions) 2210 Underpayment of Estimated Tax by Individuals, Estates, and Trusts 2210-F Underpayment of Estimated Tax by Farmers and Fishermen See chapter 5 for information about getting these forms. Federal tax income return General Rule In general, you may owe a penalty for 2013 if the total of your withholding and timely estimated tax payments did not equal at least the smaller of: 90% of your 2013 tax, or 100% of your 2012 tax. Federal tax income return (Your 2012 tax return must cover a 12-month period. Federal tax income return ) Your 2013 tax, for this purpose, is defined under Total tax for 2013 , later. Federal tax income return Special rules for certain individuals. Federal tax income return   There are special rules for farmers and fishermen and certain higher income taxpayers. Federal tax income return Farmers and fishermen. Federal tax income return   If at least two-thirds of your gross income for 2012 or 2013 is from farming or fishing, substitute  662/3% for 90% in (1) above. Federal tax income return   See Farmers and Fishermen , later. Federal tax income return Higher income taxpayers. Federal tax income return   If your AGI for 2012 was more than $150,000 ($75,000 if your 2013 filing status is married filing a separate return), substitute 110% for 100% in (2) under General Rule . Federal tax income return This rule does not apply to farmers or fishermen. Federal tax income return   For 2012, AGI is the amount shown on Form 1040, line 37; Form 1040A, line 21; and Form 1040EZ, line 4. Federal tax income return Penalty figured separately for each period. Federal tax income return   Because the penalty is figured separately for each payment period, you may owe a penalty for an earlier payment period even if you later paid enough to make up the underpayment. Federal tax income return This is true even if you are due a refund when you file your income tax return. Federal tax income return Example. Federal tax income return You did not make estimated tax payments for 2013 because you thought you had enough tax withheld from your wages. Federal tax income return Early in January 2014, you made an estimate of your total 2013 tax. Federal tax income return Then you realized that your withholding was $2,000 less than the amount needed to avoid a penalty for underpayment of estimated tax. Federal tax income return On January 10, you made an estimated tax payment of $3,000, which is the difference between your withholding and your estimate of your total tax. Federal tax income return Your final return shows your total tax to be $50 less than your estimate, so you are due a refund. Federal tax income return You do not owe a penalty for your payment due January 15, 2014. Federal tax income return However, you may owe a penalty through January 10, 2014, the day you made the $3,000 payment, for your underpayments for the earlier payment periods. Federal tax income return Minimum required each period. Federal tax income return   You will owe a penalty for any 2013 payment period for which your estimated tax payment plus your withholding for the period and overpayments applied from previous periods was less than the smaller of: 22. Federal tax income return 5% of your 2013 tax, or 25% of your 2012 tax. Federal tax income return (Your 2012 tax return must cover a 12-month period. Federal tax income return ) Minimum required for higher income taxpayers. Federal tax income return   If you are subject to the rule for higher income taxpayers, discussed above, substitute 27. Federal tax income return 5% for 25% in (2) under General Rule . Federal tax income return When penalty is charged. Federal tax income return   If you miss a payment or you paid less than the minimum required in a period, you may be charged an underpayment penalty from the date the amount was due to the date the payment is made. Federal tax income return If a payment is mailed, the date of the U. Federal tax income return S. Federal tax income return postmark is considered the date of payment. Federal tax income return   If a payment is made electronically, the date the payment is shown on your payment account (checking, savings, etc. Federal tax income return ) is considered to be the date of payment. Federal tax income return Estate or trust payments of estimated tax. Federal tax income return   If you have estimated taxes credited to you from an estate or trust (Schedule K-1 (Form 1041)), treat the payment as made by you on January 15, 2014. Federal tax income return Amended returns. Federal tax income return    If you file an amended return by the due date of your original return, use the tax shown on your amended return to figure your required estimated tax payments. Federal tax income return If you file an amended return after the due date of the original return, use the tax shown on the original return. Federal tax income return   However, if you and your spouse file a joint return after the due date to replace separate returns you originally filed by the due date, use the tax shown on the joint return to figure your required estimated tax payments. Federal tax income return This rule applies only if both original separate returns were filed on time. Federal tax income return 2012 separate returns and 2013 joint return. Federal tax income return    If you file a joint return with your spouse for 2013, but you filed separate returns for 2012, your 2012 tax is the total of the tax shown on your separate returns. Federal tax income return You filed a separate return if you filed as single, head of household, or married filing separately. Federal tax income return 2012 joint return and 2013 separate returns. Federal tax income return    If you file a separate return for 2013, but you filed a joint return with your spouse for 2012, your 2012 tax is your share of the tax on the joint return. Federal tax income return You are filing a separate return if you file as single, head of household, or married filing separately. Federal tax income return   To figure your share of the taxes on a joint return, first figure the tax both you and your spouse would have paid had you filed separate returns for 2012 using the same filing status as for 2013. Federal tax income return Then multiply the tax on the joint return by the following fraction. Federal tax income return   The tax you would have paid had you filed a separate return   The total tax you and your spouse would have paid had you filed separate returns Example. Federal tax income return Lisa and Paul filed a joint return for 2012 showing taxable income of $49,000 and a tax of $6,484. Federal tax income return Of the $49,000 taxable income, $41,000 was Lisa's and the rest was Paul's. Federal tax income return For 2013, they file married filing separately. Federal tax income return Lisa figures her share of the tax on the 2012 joint return as follows. Federal tax income return 2012 tax on $41,000 based on a separate return $ 6,286 2012 tax on $8,000 based on a  separate return 803 Total $ 7,089 Lisa's percentage of total tax  ($6,286 ÷ $ 7,089) 88. Federal tax income return 67% Lisa's part of tax on joint return ($6,484 × 88. Federal tax income return 67%) $ 5,749 Form 2210. Federal tax income return   In most cases, you do not need to file Form 2210. Federal tax income return The IRS will figure the penalty for you and send you a bill. Federal tax income return If you want us to figure the penalty for you, leave the penalty line on your return blank. Federal tax income return Do not file Form 2210. Federal tax income return   To determine if you should file Form 2210, see Part II of Form 2210. Federal tax income return If you decide to figure your penalty, complete Part I, Part II, and either Part III or Part IV of the form and the Penalty Worksheet in the Instructions for Form 2210. Federal tax income return If you use Form 2210, you cannot file Form 1040EZ. Federal tax income return   On Form 1040, enter the amount of your penalty on line 77. Federal tax income return If you owe tax on line 76, add the penalty to your tax due and show your total payment on line 76. Federal tax income return If you are due a refund, subtract the penalty from the overpayment and enter the result on line 73. Federal tax income return   On Form 1040A, enter the amount of your penalty on line 46. Federal tax income return If you owe tax on line 45, add the penalty to your tax due and show your total payment on line 45. Federal tax income return If you are due a refund, subtract the penalty from the overpayment and enter the result on line 42. Federal tax income return Lowering or eliminating the penalty. Federal tax income return    You may be able to lower or eliminate your penalty if you file Form 2210. Federal tax income return You must file Form 2210 with your return if any of the following applies. Federal tax income return You request a waiver. Federal tax income return See Waiver of Penalty , later. Federal tax income return You use the annualized income installment method. Federal tax income return See the explanation of this method under Annualized Income Installment Method (Schedule AI) . Federal tax income return You use your actual withholding for each payment period for estimated tax purposes. Federal tax income return See Actual withholding method under Figuring Your Underpayment (Part IV, Section A). Federal tax income return You base any of your required installments on the tax shown on your 2012 return and you filed or are filing a joint return for either 2012 or 2013, but not for both years. Federal tax income return Exceptions Generally, you do not have to pay an underpayment penalty if either: Your total tax is less than $1,000, or You had no tax liability last year. Federal tax income return Less Than $1,000 Due You do not owe a penalty if the total tax shown on your return minus the amount you paid through withholding (including excess social security and tier 1 railroad retirement (RRTA) tax withholding) is less than $1,000. Federal tax income return Total tax for 2013. Federal tax income return   For 2013, your total tax on Form 1040 is the amount on line 61 reduced by the following. Federal tax income return    Unreported social security and Medicare tax or RRTA tax from Forms 4137 or 8919 (line 57). Federal tax income return Any tax included on line 58 for excess contributions to IRAs, Archer MSAs, Coverdell education savings accounts, and health savings accounts, or any tax on excess accumulations in qualified retirement plans. Federal tax income return The following write-ins on line 60: Uncollected social security and Medicare tax or RRTA tax on tips or group-term life insurance, Tax on excess golden parachute payments, Excise tax on insider stock compensation from an expatriated corporation, Look-back interest due under section 167(g), Look-back interest due under section 460(b), Recapture of federal mortgage subsidy, and Additional tax on advance payments of health coverage tax credit when not eligible. Federal tax income return Any refundable credit amounts listed on lines 64a, 65, 66, 70, and any credit from Form 8885 included on line 71. Federal tax income return   If you filed Form 1040A, your 2013 total tax is the amount on line 35 reduced by any refundable credits on lines 38a, 39, and 40. Federal tax income return   If you filed Form 1040EZ, your 2013 total tax is the amount on line 10 reduced by the amount on line 8a. Federal tax income return Note. Federal tax income return When figuring the amount on line 60, include household employment taxes only if you had federal income tax withheld from your income or you would owe the penalty even if you did not include those taxes. Federal tax income return Paid through withholding. Federal tax income return    For 2013, the amount you paid through withholding on Form 1040 is the amount on line 62 plus any excess social security or tier 1 RRTA tax withholding on line 69. Federal tax income return Add to that any write-in amount on line 72 identified as “Form 8689. Federal tax income return ” On Form 1040A, the amount you paid through withholding is the amount on line 36 plus any excess social security or tier 1 RRTA tax withholding included on line 41. Federal tax income return On Form 1040EZ, it is the amount on line 7. Federal tax income return No Tax Liability Last Year You do not owe a penalty if you had no tax liability last year and you were a U. Federal tax income return S. Federal tax income return citizen or resident for the whole year. Federal tax income return For this rule to apply, your tax year must have included all 12 months of the year. Federal tax income return You had no tax liability for 2012 if your total tax was zero or you were not required to file an income tax return. Federal tax income return Example. Federal tax income return Ray, who is single and 22 years old, was unemployed for a few months during 2012. Federal tax income return He earned $6,700 in wages before he was laid off, and he received $1,400 in unemployment compensation afterwards. Federal tax income return He had no other income. Federal tax income return Even though he had gross income of $8,100, he did not have to pay income tax because his gross income was less than the filing requirement for a single person under age 65 ($9,750 for 2012). Federal tax income return He filed a return only to have his withheld income tax refunded to him. Federal tax income return In 2013, Ray began regular work as an independent contractor. Federal tax income return Ray made no estimated tax payments in 2013. Federal tax income return Even though he did owe tax at the end of the year, Ray does not owe the underpayment penalty for 2013 because he had no tax liability in 2012. Federal tax income return Total tax for 2012. Federal tax income return   For 2012, your total tax on Form 1040 is the amount on line 61 reduced by the following. Federal tax income return    Unreported social security and Medicare tax or RRTA tax from Forms 4137 or 8919 (line 57). Federal tax income return Any tax included on line 58 for excess contributions to IRAs, Archer MSAs, Coverdell education savings accounts, and health savings accounts, or any tax on excess accumulations in qualified retirement plans. Federal tax income return The following write-ins on line 60: Uncollected social security and Medicare tax or RRTA tax on tips or group-term life insurance, Tax on excess golden parachute payments, Excise tax on insider stock compensation from an expatriated corporation, Look-back interest due under section 167(g), Look-back interest due under section 460(b), Recapture of federal mortgage subsidy, and Additional tax on advance payments of health coverage tax credit when not eligible. Federal tax income return Any refundable credit amounts listed on lines 64a, 65, 66, 70, and credits from Forms 8801 (line 27 only), and 8885 included on line 71. Federal tax income return   If you filed Form 1040A, your 2012 total tax is the amount on line 35 reduced by any refundable credits on lines 38a, 39, and 40. Federal tax income return   If you filed Form 1040EZ, your 2012 total tax is the amount on line 11 reduced by the amount on line 8a. Federal tax income return Figuring Your Required Annual Payment (Part I) Figure your required annual payment in Part I of Form 2210, following the line-by-line instructions. Federal tax income return If you rounded the entries on your tax return to whole dollars, you can round on Form 2210. Federal tax income return Example. Federal tax income return The tax on Lori Lane's 2012 return was $12,400. Federal tax income return Her AGI was not more than $150,000 for either 2012 or 2013. Federal tax income return The tax on her 2013 return (Form 1040, line 55) is $13,044. Federal tax income return Line 56 (self-employment tax) is $8,902. Federal tax income return Her 2013 total tax is $21,946. Federal tax income return For 2013, Lori had $1,600 income tax withheld and made four equal estimated tax payments ($1,000 each). Federal tax income return 90% of her 2013 tax is $19,751. Federal tax income return Because she paid less than her 2012 tax ($12,400) and less than 90% of her 2013 tax ($19,751), and does not meet an exception, Lori knows that she owes a penalty for underpayment of estimated tax. Federal tax income return The IRS will figure the penalty for Lori, but she decides to figure it herself on Form 2210 and pay it with her taxes when she files her tax return. Federal tax income return Lori's required annual payment is $12,400 (100% of 2012 tax) because that is smaller than 90% of her 2013 tax. Federal tax income return Different 2012 filing status. Federal tax income return    If you file a separate return for 2013, but you filed a joint return with your spouse for 2012, see 2012 joint return and 2013 separate returns , earlier, to figure the amount to enter as your 2012 tax on line 8 of Form 2210. Federal tax income return Short Method for Figuring the Penalty (Part III) You may be able to use the short method in Part III of Form 2210 to figure your penalty for underpayment of estimated tax. Federal tax income return If you qualify to use this method, it will result in the same penalty amount as the regular method. Federal tax income return However, either the annualized income installment method or the actual withholding method, explained later, may result in a smaller penalty. Federal tax income return You can use the short method only if you meet one of the following requirements. Federal tax income return You made no estimated tax payments for 2013 (it does not matter whether you had income tax withholding). Federal tax income return You paid the same amount of estimated tax on each of the four payment due dates. Federal tax income return If you do not meet either requirement, figure your penalty using the regular method in Part IV of Form 2210 and the Penalty Worksheet in the instructions. Federal tax income return Note. Federal tax income return If any payment was made before the due date, you can use the short method, but the penalty may be less if you use the regular method. Federal tax income return However, if the payment was only a few days early, the difference is likely to be small. Federal tax income return You cannot use the short method if any of the following apply. Federal tax income return You made any estimated tax payments late. Federal tax income return You checked box C or D in Part II of Form 2210. Federal tax income return You are filing Form 1040NR or 1040NR-EZ and you did not receive wages as an employee subject to U. Federal tax income return S. Federal tax income return income tax withholding. Federal tax income return If you use the short method, you cannot use the annualized income installment method to figure your underpayment for each payment period. Federal tax income return Also, you cannot use your actual withholding during each period to figure your payments for each period. Federal tax income return These methods, which may give you a smaller penalty amount, are explained under Figuring Your Underpayment (Part IV, Section A). Federal tax income return Complete Part III of Form 2210 following the line-by-line instructions in the Instructions for Form 2210. Federal tax income return Regular Method for Figuring the Penalty (Part IV) You can use the regular method in Part IV of Form 2210 to figure your penalty for underpayment of estimated tax if you paid one or more estimated tax payments earlier than the due date. Federal tax income return You must use the regular method in Part IV of Form 2210 to figure your penalty for underpayment of estimated tax if any of the following apply to you. Federal tax income return You paid one or more estimated tax payments on a date after the due date. Federal tax income return You paid at least one, but less than four, installments of estimated tax. Federal tax income return You paid estimated tax payments in un- equal amounts. Federal tax income return You use the annualized income installment method to figure your underpayment for each payment period. Federal tax income return You use your actual withholding during each payment period to figure your payments. Federal tax income return Under the regular method, figure your underpayment for each payment period in Section A, then figure your penalty using the Penalty Worksheet in the Instructions for Form 2210. Federal tax income return Enter the results on line 27 of Section B. Federal tax income return Figuring Your Underpayment (Part IV, Section A) Figure your underpayment of estimated tax for each payment period in Section A following the line-by-line instructions in the Instructions for Form 2210. Federal tax income return Complete lines 20 through 26 of the first column before going to line 20 of the next column. Federal tax income return Required installments—line 18. Federal tax income return   Your required payment for each payment period (line 18) is usually one-fourth of your required annual payment (Part I, line 9). Federal tax income return This method—the regular method—is the one to use if you received your income evenly throughout the year. Federal tax income return   However, if you did not receive your income evenly throughout the year, you may be able to lower or eliminate your penalty by figuring your underpayment using the annualized income installment method. Federal tax income return First complete Schedule AI (Form 2210), then enter the amounts from line 25 of that schedule on line 18 of Form 2210, Part IV. Federal tax income return See Annualized Income Installment Method (Schedule AI), later. Federal tax income return Payments made—line 19. Federal tax income return   Enter in each column the total of: Your estimated tax paid after the due date for the previous column and by the due date shown at the top of the column, and One-fourth of your withholding. Federal tax income return For special rules for figuring your payments, see Form 2210 instructions for line 19. Federal tax income return   If you file Form 1040, your withholding is the amount on line 62, plus any excess social security or tier 1 RRTA tax withholding on line 69. Federal tax income return If you file Form 1040A, your withholding is the amount on line 36 plus any excess social security or tier 1 RRTA tax withholding included in line 41. Federal tax income return Actual withholding method. Federal tax income return    Instead of using one-fourth of your withholding for each quarter, you can choose to use the amounts actually withheld by each due date. Federal tax income return You can make this choice separately for the tax withheld from your wages and for all other withholding. Federal tax income return This includes any excess social security and tier 1 RRTA tax withheld. Federal tax income return   Using your actual withholding may result in a smaller penalty if most of your withholding occurred early in the year. Federal tax income return   If you use your actual withholding, you must check box D in Form 2210, Part II. Federal tax income return Then complete Form 2210 using the regular method (Part IV) and file it with your return. Federal tax income return Worksheet for Form 2210, Part IV, Section B—Figuring the Penalty Figure the amount of your penalty for Section B using the Penalty Worksheet in the Form 2210 instructions. Federal tax income return The penalty is imposed on each underpayment amount shown on Form 2210, Section A, line 25, for the number of days that it remained unpaid. Federal tax income return For 2013, there are four rate periods—April 16 through June 30, July 1 through September 30, October 1 through December 31, and January 1, 2014 through April 15, 2014. Federal tax income return A 3% rate applies to all four periods. Federal tax income return Payments. Federal tax income return    Before completing the Penalty Worksheet, it may be helpful to make a list of the payments you made and income tax withheld after the due date (or the last day payments could be made on time) for the earliest payment period an underpayment occurred. Federal tax income return For example, if you had an underpayment for the first payment period, list your payments after April 15, 2013. Federal tax income return You can use the table in the Form 2210 instructions to make your list. Federal tax income return Follow those instructions for listing income tax withheld and payments made with your return. Federal tax income return Use the list to determine when each underpayment was paid. Federal tax income return   If you mail your estimated tax payments, use the date of the U. Federal tax income return S. Federal tax income return postmark as the date of payment. Federal tax income return Line 1b. Federal tax income return   Apply the payments listed to underpayment balance in the first column until it is fully paid. Federal tax income return Apply payments in the order made. Federal tax income return Figuring the penalty. Federal tax income return   If an underpayment was paid in two or more payments on different dates, you must figure the penalty separately for each payment. Federal tax income return On line 3 of the Penalty Worksheet enter the number of days between the due date (line 2) and the date of each payment on line 1b. Federal tax income return On line 4 figure the penalty for the amount of each payment applied on line 1b or the amount remaining unpaid. Federal tax income return If no payments are applied, figure the penalty on the amount on line 1a. Federal tax income return Aid for counting days. Federal tax income return    Table 4-1 provides a simple method for counting the number of days between a due date and a payment date. Federal tax income return Find the number for the date the payment was due by going across to the column of the month the payment was due and moving down the column to the due date. Federal tax income return In the same manner, find the number for the date the payment was made. Federal tax income return Subtract the due date “number” from the payment date “number. Federal tax income return ”   For example, if a payment was due on June 15 (61), but was not paid until September 1 (139), the payment was 78 (139 – 61) days late. Federal tax income return Table 4-1. Federal tax income return Calendar To Determine the Number of Days a Payment Is Late Instructions. Federal tax income return Use this table with Form 2210 if you are completing Part IV, Section B. Federal tax income return First, find the number for the payment due date by going across to the column of the month the payment was due and moving down the column to the due date. Federal tax income return Then, in the same manner, find the number for the date the payment was made. Federal tax income return Finally, subtract the due date number from the payment date number. Federal tax income return The result is the number of days the payment is late. Federal tax income return Example. Federal tax income return The payment due date is June 15 (61). Federal tax income return The payment was made on November 4 (203). Federal tax income return The payment is 142 days late (203 – 61). Federal tax income return Tax Year 2013 Day of 2013 2013 2013 2013 2013 2013 2013 2013 2013 2014 2014 2014 2014 Month April May June July Aug. Federal tax income return Sept. Federal tax income return Oct. Federal tax income return Nov. Federal tax income return Dec. Federal tax income return Jan. Federal tax income return Feb. Federal tax income return Mar. Federal tax income return Apr. Federal tax income return 1   16 47 77 108 139 169 200 230 261 292 320 351 2   17 48 78 109 140 170 201 231 262 293 321 352 3   18 49 79 110 141 171 202 232 263 294 322 353 4   19 50 80 111 142 172 203 233 264 295 323 354 5   20 51 81 112 143 173 204 234 265 296 324 355 6   21 52 82 113 144 174 205 235 266 297 325 356 7   22 53 83 114 145 175 206 236 267 298 326 357 8   23 54 84 115 146 176 207 237 268 299 327 358 9   24 55 85 116 147 177 208 238 269 300 328 359 10   25 56 86 117 148 178 209 239 270 301 329 360 11   26 57 87 118 149 179 210 240 271 302 330 361 12   27 58 88 119 150 180 211 241 272 303 331 362 13   28 59 89 120 151 181 212 242 273 304 332 363 14   29 60 90 121 152 182 213 243 274 305 333 364 15 0 30 61 91 122 153 183 214 244 275 306 334 365 16 1 31 62 92 123 154 184 215 245 276 307 335   17 2 32 63 93 124 155 185 216 246 277 308 336   18 3 33 64 94 125 156 186 217 247 278 309 337   19 4 34 65 95 126 157 187 218 248 279 310 338   20 5 35 66 96 127 158 188 219 249 280 311 339   21 6 36 67 97 128 159 189 220 250 281 312 340   22 7 37 68 98 129 160 190 221 251 282 313 341   23 8 38 69 99 130 161 191 222 252 283 314 342   24 9 39 70 100 131 162 192 223 253 284 315 343   25 10 40 71 101 132 163 193 224 254 285 316 344   26 11 41 72 102 133 164 194 225 255 286 317 345   27 12 42 73 103 134 165 195 226 256 287 318 346   28 13 43 74 104 135 166 196 227 257 288 319 347   29 14 44 75 105 136 167 197 228 258 289   348   30 15 45 76 106 137 168 198 229 259 290   349   31   46   107 138   199   260 291   350   Annualized Income Installment Method (Schedule AI) If you did not receive your income evenly throughout the year (for example, your income from a shop you operated at a marina was much larger in the summer than it was during the rest of the year), you may be able to lower or eliminate your penalty by figuring your underpayment using the annualized income installment method. Federal tax income return Under this method, your required installment (Part IV, line 18) for one or more payment periods may be less than one-fourth of your required annual payment. Federal tax income return To figure your underpayment using this method, complete Form 2210, Schedule AI. Federal tax income return Schedule AI annualizes your tax at the end of each payment period based on your income, deductions, and other items relating to events that occurred from the beginning of the tax year through the end of the period. Federal tax income return If you use the annualized income installment method, you must check box C in Part II of Form 2210. Federal tax income return Also, you must attach Form 2210 and Schedule AI to your return. Federal tax income return If you use Schedule AI for any payment due date, you must use it for all payment due dates. Federal tax income return Completing Schedule AI. Federal tax income return   Follow the Form 2210 instructions to complete Schedule AI. Federal tax income return For each period shown on Schedule AI, figure your income and deductions based on your method of accounting. Federal tax income return If you use the cash method of accounting (used by most people), include all income actually or constructively received during the period and all deductions actually paid during the period. Federal tax income return Note. Federal tax income return Each period includes amounts from the previous period(s). Federal tax income return Period (a) includes items for January 1 through March 31. Federal tax income return Period (b) includes items for January 1 through May 31. Federal tax income return Period (c) includes items for January 1 through August 31. Federal tax income return Period (d) includes items for the entire year. Federal tax income return Farmers and Fishermen If you are a farmer or fisherman, the following special rules for underpayment of estimated tax apply to you. Federal tax income return The penalty for underpaying your 2013 estimated tax will not apply if you file your return and pay all the tax due by March 3, 2014. Federal tax income return If you are a fiscal year taxpayer, the penalty will not apply if you file your return and pay the tax due by the first day of the third month after the end of your tax year. Federal tax income return Any penalty you owe for underpaying your 2013 estimated tax will be figured from one payment due date, January 15, 2014. Federal tax income return The underpayment penalty for 2013 is figured on the difference between the amount of 2013 withholding plus estimated tax paid by the due date and the smaller of: 662/3% (rather than 90%) of your 2013 tax, or 100% of the tax shown on your 2012 return. Federal tax income return Even if these special rules apply to you, you will not owe the penalty if you meet either of the two conditions discussed under Exceptions . Federal tax income return See Who Must Pay Estimated Tax in chapter 2 for the definition of a farmer or fisherman who is eligible for these special rules. Federal tax income return Form 2210-F. Federal tax income return   Use Form 2210-F to figure any underpayment penalty. Federal tax income return Do not attach it to your return unless you check a box in Part I. Federal tax income return However, if none of the boxes apply to you and you owe a penalty, you do not need to attach Form 2210-F. Federal tax income return Enter the amount from line 16 on Form 1040, line 77 and add the penalty to any balance due on your return or subtract it from your refund. Federal tax income return Keep your filled-in Form 2210-F for your records. Federal tax income return    If none of the boxes on Form 2210-F apply to you and you owe a penalty, the IRS can figure your penalty and send you a bill. Federal tax income return Waiver of Penalty The IRS can waive the penalty for underpayment if either of the following applies. Federal tax income return You did not make a payment because of a casualty, disaster, or other unusual circumstance and it would be inequitable to impose the penalty. Federal tax income return You retired (after reaching age 62) or became disabled in 2012 or 2013 and both the following requirements are met. Federal tax income return You had a reasonable cause for not making the payment. Federal tax income return Your underpayment was not due to willful neglect. Federal tax income return How to request a waiver. Federal tax income return   To request a waiver, see the Instructions for Form 2210. Federal tax income return Farmers and fishermen. Federal tax income return   To request a waiver, see the Instructions for Form 2210-F. Federal tax income return Federally declared disaster. Federal tax income return   Certain estimated tax payment deadlines for taxpayers who reside or have a business in a federally declared disaster area are postponed for a period during and after the disaster. Federal tax income return During the processing of your tax return, the IRS automatically identifies taxpayers located in a covered disaster area (by county or parish) and applies the appropriate penalty relief. Federal tax income return Do not file Form 2210 or 2210-F if your underpayment was due to a federally declared disaster. Federal tax income return If you still owe a penalty after the automatic waiver is applied, we will send you a bill. Federal tax income return   Individuals, estates, and trusts not in a covered disaster area but whose books, records, or tax professionals' offices are in a covered area are also entitled to relief. Federal tax income return Also eligible are relief workers affiliated with a recognized government or charitable organization assisting in the relief activities in a covered disaster area. Federal tax income return If you meet either of these eligibility requirements, you must call the IRS disaster hotline at 1-866-562-5227 and identify yourself as eligible for this relief. Federal tax income return   Details on the applicable disaster postponement period can be found at IRS. Federal tax income return gov. Federal tax income return Enter Tax Relief in Disaster Situations. Federal tax income return Select the federally declared disaster that affected you. Federal tax income return    Worksheet 4-1. Federal tax income return 2013 Form 2210, Schedule AI—Line 12 Qualified Dividends and Capital Gain Tax Worksheet Note. Federal tax income return To figure the annualized entries for lines 2, 3, and 5 below, multiply the expected amount for the period by the  annualization amount on line 2 of Schedule AI for the same period. Federal tax income return                   1. Federal tax income return Enter line 11 of your Schedule AI, or line 3 from Worksheet 4-2 1. Federal tax income return       2. Federal tax income return Enter your annualized qualified dividends for the period 2. Federal tax income return           3. Federal tax income return Are you filing Schedule D?               □ Yes. Federal tax income return Enter the smaller of your annualized amount from line 15 or line 16 of Schedule D. Federal tax income return If either line 15 or line 16 is blank or a loss, enter -0-. Federal tax income return 3. Federal tax income return             □ No. Federal tax income return Enter your annualized capital gain distributions from Form 1040, line 13             4. Federal tax income return Add lines 2 and 3   4. Federal tax income return           5. Federal tax income return If you are claiming investment interest expense on Form 4952, enter your annualized amount from line 4g of that form. Federal tax income return Otherwise, enter -0-   5. Federal tax income return           6. Federal tax income return Subtract line 5 from line 4. Federal tax income return If zero or less, enter -0- 6. Federal tax income return       7. Federal tax income return Subtract line 6 from line 1. Federal tax income return If zero or less, enter -0- 7. Federal tax income return       8. Federal tax income return Enter: $36,900 if single or married filing separately, $73,800 if married filing jointly or qualifying widow(er), $49,400 if head of household. Federal tax income return 8. Federal tax income return       9. Federal tax income return Enter the smaller of line 1 or line 8 9. Federal tax income return       10. Federal tax income return Enter the smaller of line 7 or line 9 10. Federal tax income return       11. Federal tax income return Subtract line 10 from line 9. Federal tax income return This amount is taxed at 0% 11. Federal tax income return       12. Federal tax income return Enter the smaller of line 1 or line 6 12. Federal tax income return       13. Federal tax income return Enter the amount from line 11 13. Federal tax income return       14. Federal tax income return Subtract line 13 from line 12 14. Federal tax income return       15. Federal tax income return Multiply line 14 by 15% (. Federal tax income return 15) 15. Federal tax income return   16. Federal tax income return Figure the tax on the amount on line 7. Federal tax income return If the amount on line 7 is less than $100,000, use the Tax Table in the 2013 Form 1040 instructions to figure this tax. Federal tax income return If the amount on line 7 is $100,000 or more, use the Tax Computation Worksheet in the 2013 Form 1040 instructions 16. Federal tax income return   17. Federal tax income return Add lines 15 and 16 17. Federal tax income return   18. Federal tax income return Figure the tax on the amount on line 1. Federal tax income return If the amount on line 1 is less than $100,000, use the Tax Table in the 2013 Form 1040 instructions to figure this tax. Federal tax income return If the amount on line 1 is $100,000 or more, use the Tax Computation Worksheet in the 2013 Form 1040 instructions 18. Federal tax income return   19. Federal tax income return Tax on all taxable income. Federal tax income return Enter the smaller of line 17 or line 18. Federal tax income return Also enter this amount on line 12 of Schedule AI in the appropriate column. Federal tax income return However, if you are using this worksheet to figure the tax on the amount on line 3 of Worksheet 4-2, enter the amount from line 19 on Worksheet 4-2, line 4 19. Federal tax income return   Worksheet 4-2. Federal tax income return 2013 Form 2210, Schedule AI—Line 12 Foreign Earned Income Tax Worksheet Before you begin:If Schedule AI, line 11, is zero for the period, do not complete this worksheet. Federal tax income return             1. Federal tax income return Enter the amount from line 11 of Schedule AI for the period 1. Federal tax income return   2. Federal tax income return Enter the annualized amount* of foreign earned income and housing amount excluded or deducted (from  Form 2555, lines 45 and 50, or Form 2555-EZ, line 18) in figuring the amount entered for the period on line 1  of Schedule AI 2. Federal tax income return   3. Federal tax income return Add lines 1 and 2 3. Federal tax income return   4. Federal tax income return Tax on the amount on line 3. Federal tax income return Use the Tax Table, Tax Computation Worksheet, Form 8615**, Qualified Dividends and Capital Gain Tax Worksheet***, or Schedule D Tax Worksheet***, whichever applies. Federal tax income return See the 2013 Instructions for Form 1040, line 44, to find out which tax computation method to use. Federal tax income return (Note. Federal tax income return You do not have to use the same method for each period on Schedule AI. Federal tax income return ) 4. Federal tax income return   5. Federal tax income return Tax on the amount on line 2. Federal tax income return If the amount on line 2 is less than $100,000, use the Tax Table in the 2013 Form 1040 instructions to figure this tax. Federal tax income return If the amount on line 7 is $100,000 or more, use the Tax Computation Worksheet in the 2013 Form 1040 instructions 5. Federal tax income return   6. Federal tax income return Subtract line 5 from line 4. Federal tax income return Enter the result here and on line 12 of Schedule AI. Federal tax income return If zero or less,  enter -0- 6. Federal tax income return             * To figure the annualized amount for line 2, multiply the exclusion or deduction for the period by the annualization amount on line 2 of Schedule AI for the same period. Federal tax income return     ** If you use Form 8615 to figure the tax on line 4 above, enter the amount from line 3 above on line 4 of Form 8615. Federal tax income return If the child's parent files Form 2555 or 2555-EZ, enter the amounts from lines 3 and 4 of the parent's Foreign Earned Income Tax Worksheet on lines 6 and 10, respectively, of Form 8615. Federal tax income return Complete the rest of Form 8615 according to its instructions. Federal tax income return Then complete lines 5 and 6 above. Federal tax income return     *** Enter the amount from line 3 above on line 1 of the Qualified Dividends and Capital Gain Tax Worksheet (or Worksheet 4-1 in this chapter) or the Schedule D Tax Worksheet, whichever worksheet you use to figure the tax on line 4 above. Federal tax income return Complete that worksheet through line 6 (line 10 if you use the Schedule D Tax Worksheet). Federal tax income return Next, determine if you have a capital gain excess. Federal tax income return     Figuring capital gain excess. Federal tax income return To find out if you have a capital gain excess for the appropriate period, subtract line 11 of Schedule AI from line 6 of Worksheet 4-1 or your Qualified Dividends and Capital Gain Tax Worksheet (line 10 of your Schedule D Tax Worksheet). Federal tax income return If the result is more than zero, that amount is your capital gain excess. Federal tax income return     No capital gain excess. Federal tax income return If you do not have a capital gain excess, complete the rest of Worksheet 4-1, Qualified Dividends and Capital Gain Tax Worksheet, or the Schedule D Tax Worksheet according to the worksheet's instructions. Federal tax income return Then complete lines 5 and 6 above. Federal tax income return     Capital gain excess. Federal tax income return If you have a capital gain excess, complete a second Worksheet 4-1, Qualified Dividends and Capital Gain Tax Worksheet, or Schedule D Tax Worksheet (whichever applies) as instructed above but in its entirety and with the following additional modifications. Federal tax income return Then complete lines 5 and 6 above. Federal tax income return     Make the modifications below only for purposes of filling out Worksheet 4-2 above. Federal tax income return     a. Federal tax income return Reduce (but not below zero) the amount you otherwise would enter on line 3 of your Worksheet 4-1, line 3 of your Qualified Dividends and Capital Gain Tax Worksheet, or line 9 of your Schedule D Tax Worksheet by your capital gain excess. Federal tax income return     b. Federal tax income return Reduce (but not below zero) the amount you otherwise would enter on line 2 of your Worksheet 4-1, line 2 of your Qualified Dividends and Capital Gain Tax Worksheet, or line 6 of your Schedule D Tax Worksheet by any of your capital gain excess not used in (a) above. Federal tax income return     c. Federal tax income return Reduce (but not below zero) the amount on your Schedule D (Form 1040), line 18, by your capital gain excess. Federal tax income return     d. Federal tax income return Include your capital gain excess as a loss on line 16 of your Unrecaptured Section 1250 Gain Worksheet in the 2013 Instructions for Schedule D (Form 1040). 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