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

Filing Free State Returns

Amend 2012 Tax Return Free2006 Taxes OnlineIrs 1040x Form InstructionsI Still Need To File My 2012 TaxesSc Tax Forms 1040ezFiling Amended Tax Return 20131040x 2010 FormFile State Income TaxWww H&rblock ComCan I Still File 2012 Tax ReturnTaxact 2011 FreeFiling A Tax AmendmentTax Form 1040Aarp Tax HelpHow To Amend 2013 Tax ReturnE File 2012 Federal TaxesAmend A Tax Return 2010How Can I Efile My 2010 Taxes2010 1040xHow To Prepare An Amended Tax ReturnWhen Last Day File Taxes 20121040ez 2011Amending 2010 Taxes1040ez On LineAmended TaxesFree H&r Block TaxHow Do I Amend My TaxesFile State Taxes FreeIrs ExtensionTaxes For 2012Income Tax AmendmentHow To Amend Taxes With TurbotaxCan You E File 2012 Taxes NowInstructions For Filing An Amended Tax Return2010 Federal Tax FormsH&r Block Federal Free1040 Tax FormNeed 2011 TaxesTaxact 2012 LoginForm 1040 Ez

Filing Free State Returns

Filing free state returns 4. Filing free state returns   Other Section 501(c) Organizations Table of Contents Introduction 501(c)(4) - Civic Leagues and Social Welfare OrganizationsSpecific Organizations 501(c)(5) - Labor, Agricultural and Horticultural OrganizationsLabor Organizations Agricultural and Horticultural Organizations 501(c)(6) - Business Leagues, etc. Filing free state returns Line of business. Filing free state returns Examples. Filing free state returns Improvement of business conditions. Filing free state returns Exception for local legislation. Filing free state returns De minimis exception. Filing free state returns Grass roots lobbying. Filing free state returns 501(c)(7) - Social and Recreation ClubsLimited membership. Filing free state returns Support. Filing free state returns Facilities open to public. Filing free state returns Gross receipts from nonmembership sources. Filing free state returns Gross receipts. Filing free state returns Nontraditional activities. Filing free state returns 501(c)(8) and 501(c)(10) - Fraternal Beneficiary Societies and Domestic Fraternal SocietiesFraternal Beneficiary Societies (501(c)(8)) Domestic Fraternal Societies (501(c)(10)) 501(c)(4), 501(c)(9), and 501(c)(17) - Employees' AssociationsLocal Employees' Associations (501(c)(4)) Voluntary Employees' Beneficiary Associations (501(c)(9)) Supplemental Unemployment Benefit Trusts (501(c)(17)) 501(c)(12) - Local Benevolent Life Insurance Associations, Mutual Irrigation and Telephone Companies, and Like OrganizationsMembership. Filing free state returns Losses and expenses. Filing free state returns Distributions of proceeds. Filing free state returns The 85% Requirement Local Life Insurance Associations Mutual or Cooperative Associations 501(c)(13) - Cemetery CompaniesBuying cemetery property. Filing free state returns Perpetual care organization. Filing free state returns Care of individual plots. Filing free state returns 501(c)(14) - Credit Unions and Other Mutual Financial OrganizationsState-Chartered Credit Unions Other Mutual Financial Organizations 501(c)(19) - Veterans' Organizations 501(c)(20) - Group Legal Services Plan Organizations 501(c)(21) - Black Lung Benefit TrustsExcise taxes. Filing free state returns 501(c)(2) - Title-Holding Corporations for Single Parent CorporationsExpenses. Filing free state returns Waiver of payment of income. Filing free state returns 501(c)(25) - Title-Holding Corporations or Trusts for Multiple Parent CorporationsUnrelated Business Income 501(c)(26) - State-Sponsored High-Risk Health Coverage Organizations 501(c)(27) - Qualified State-Sponsored Workers' Compensation Organizations 501(c)(29) - CO-OP Health Insurance Issuers New Guidance for IRC 501(c)(29) Qualified Nonprofit Health Insurance Issuers General Requirements for Exemption under 501(c)(29) and Annual Filing Requirement Additional Guidance for Prospective 501(c)(29) Organizations Introduction This chapter contains specific information for certain organizations described in section 501(c), other than those organizations that are described in section 501(c)(3). Filing free state returns Section 501(c)(3) organizations are covered in chapter 3 of this publication. Filing free state returns The Table of Contents at the beginning of this publication, as well as the Organization Reference Chart, may help you locate at a glance the type of organization discussed in this chapter. Filing free state returns 501(c)(4) - Civic Leagues and Social Welfare Organizations If your organization is not organized for profit and will be operated primarily to promote social welfare to benefit the community, you should file Form 1024 to apply for recognition of exemption from federal income tax under section 501(c)(4). Filing free state returns The discussion that follows describes the information you must provide when applying. Filing free state returns For application procedures, see chapter 1. Filing free state returns To qualify for exemption under section 501(c)(4), the organization's net earnings must be devoted primarily to charitable, educational, or recreational purposes. Filing free state returns In addition, no part of the organization's net earnings can inure to the benefit of any private shareholder or individual. Filing free state returns If the organization provides an excess benefit to certain persons, an excise tax may be imposed. Filing free state returns See Excise tax on excess benefit transactions , under Excess Benefit Transactions in chapter 5 for more information about this tax. Filing free state returns Examples. Filing free state returns   Types of organizations that are considered to be social welfare organizations are civic associations and volunteer fire companies. Filing free state returns Nonprofit operation. Filing free state returns   You must submit evidence that your organization is organized and will be operated on a nonprofit basis. Filing free state returns However, such evidence, including the fact that your organization is organized under a state law relating to nonprofit corporations, will not in itself establish a social welfare purpose. Filing free state returns Social welfare. Filing free state returns   To establish that your organization is organized primarily to promote social welfare, you should submit evidence with your application showing that your organization will operate primarily to further (in some way) the common good and general welfare of the people of the community (such as by bringing about civic betterment and social improvements). Filing free state returns   An organization that restricts the use of its facilities to employees of selected corporations and their guests is primarily benefiting a private group rather than the community. Filing free state returns It therefore does not qualify as a section 501(c)(4) organization. Filing free state returns Similarly, an organization formed to represent member-tenants of an apartment complex does not qualify, since its activities benefit the member-tenants and not all tenants in the community. Filing free state returns However, an organization formed to promote the legal rights of all tenants in a particular community may qualify under section 501(c)(4) as a social welfare organization. Filing free state returns Political activity. Filing free state returns   Promoting social welfare does not include direct or indirect participation or intervention in political campaigns on behalf of or in opposition to any candidate for public office. Filing free state returns However, if you submit proof that your organization is organized primarily to promote social welfare, it can obtain exemption even if it participates legally in some political activity on behalf of or in opposition to candidates for public office. Filing free state returns See the discussion in chapter 2 under Political Organization Income Tax Return . Filing free state returns Social or recreational activity. Filing free state returns   If social activities will be the primary purpose of your organization, you should not file an application for exemption as a social welfare organization but should file for exemption as a social club described in section 501(c)(7). Filing free state returns Retirement benefit program. Filing free state returns   An organization established by its members that has as its primary activity providing supplemental retirement benefits to its members or death benefits to their beneficiaries does not qualify as an exempt social welfare organization. Filing free state returns It may qualify under another paragraph of section 501(c) depending on all the facts. Filing free state returns   However, a nonprofit association that is established, maintained, and funded by a local government to provide the only retirement benefits to a class of employees may qualify as a social welfare organization under section 501(c)(4). Filing free state returns Tax treatment of donations. Filing free state returns   Donations to volunteer fire companies are deductible on the donor's federal income tax return, but only if made for exclusively public purposes. Filing free state returns Contributions to civic leagues or other section 501(c)(4) organizations generally are not deductible as charitable contributions for federal income tax purposes. Filing free state returns They may be deductible as trade or business expenses, if ordinary and necessary in the conduct of the taxpayer's business. Filing free state returns However, see Deduction not allowed for dues used for political or legislative activities , under 501(c)(6) - Business Leagues, etc. Filing free state returns for more information. Filing free state returns For more information on social welfare organizations, see Life Cycle of a Social Welfare Organization at IRS. Filing free state returns gov. Filing free state returns Specific Organizations The following information should be contained in the application form and accompanying statements of certain types of civic leagues or social welfare organizations. Filing free state returns Volunteer fire companies. Filing free state returns   If your organization wishes to obtain exemption as a volunteer fire company or similar organization, you should submit evidence that its members are actively engaged in fire fighting and similar disaster assistance, whether it actually owns the fire fighting equipment, and whether it provides any assistance for its members, such as death and medical benefits in case of injury to them. Filing free state returns   If your organization does not have an independent social purpose, such as providing recreational facilities for members, it may be exempt under section 501(c)(3). Filing free state returns In this event, your organization should file Form 1023. Filing free state returns Homeowners' associations. Filing free state returns   A membership organization formed by a real estate developer to own and maintain common green areas, streets, and sidewalks and to enforce covenants to preserve the appearance of the development should show that it is operated for the benefit of all the residents of the community. Filing free state returns The term community generally refers to a geographical unit recognizable as a governmental subdivision, unit, or district thereof. Filing free state returns Whether a particular association meets the requirement of benefiting a community depends on the facts and circumstances of each case. Filing free state returns Even if an area represented by an association is not a community, the association can still qualify for exemption if its activities benefit a community. Filing free state returns   The association should submit evidence that areas such as roadways and park land that it owns and maintains are open to the general public and not just its own members. Filing free state returns It also must show that it does not engage in exterior maintenance of private homes. Filing free state returns   A homeowners' association that is not exempt under section 501(c)(4) and that is a condominium management association, a residential real estate management association, or a timeshare association generally can elect under the provisions of section 528 to receive certain tax benefits that, in effect, permit it to exclude its exempt function income from its gross income. Filing free state returns Other organizations. Filing free state returns   Other nonprofit organizations that qualify as social welfare organizations include: An organization operating an airport that is on land owned by a local government, which supervises the airport's operation, and that serves the general public in an area with no other airport, A community association that works to improve public services, housing, and residential parking; publishes a free community newspaper; sponsors a community sports league, holiday programs, and meetings; and contracts with a private security service to patrol the community, A community association devoted to preserving the community's traditions, architecture, and appearance by representing it before the local legislature and administrative agencies in zoning, traffic, and parking matters, An organization that tries to encourage industrial development and relieve unemployment in an area by making loans to businesses so they will relocate to the area, and An organization that holds an annual festival of regional customs and traditions. Filing free state returns 501(c)(5) - Labor, Agricultural and Horticultural Organizations If you are a member of an organization that wants to obtain recognition of exemption from federal income tax as a labor, agricultural, or horticultural organization, you should submit an application on Form 1024. Filing free state returns You must indicate in your application for exemption and accompanying statements that no part of the organization's net earnings will inure to the benefit of any member. Filing free state returns In addition, you should follow the procedure for obtaining recognition of exempt status described in chapter 1. Filing free state returns Submit any additional information that may be required, as described in this section. Filing free state returns Tax treatment of donations. Filing free state returns   Contributions to labor, agricultural, and horticultural organizations are not deductible as charitable contributions on the donor's federal income tax return. Filing free state returns However, such payments may be deductible as business expenses if they are ordinary and necessary in the conduct of the taxpayer's trade or business. Filing free state returns For more information about certain limits affecting the deductibility of these business expenses, see Deduction not allowed for dues used for political or legislative activities , under 501(c)(6) - Business Leagues, etc. Filing free state returns Labor Organizations A labor organization is an association of workers who have combined to protect and promote the interests of the members by bargaining collectively with their employers to secure better working conditions. Filing free state returns To show that your organization has the purpose of a labor organization, you should include in the articles of organization or accompanying statements (submitted with your exemption application) information establishing that the organization is organized to better the conditions of workers, improve the grade of their products, and develop a higher degree of efficiency in their respective occupations. Filing free state returns In addition, no net earnings of the organization can inure to the benefit of any member. Filing free state returns Composition of membership. Filing free state returns   While a labor organization generally is composed of employees or representatives of the employees (in the form of collective bargaining agents) and similar employee groups, evidence that an organization's membership consists mainly of workers does not in itself indicate an exempt purpose. Filing free state returns You must show in your application that your organization has the purposes described in the preceding paragraph. Filing free state returns These purposes can be accomplished by a single labor organization acting alone or by several organizations acting together through a separate organization. Filing free state returns Benefits to members. Filing free state returns   The payment by a labor organization of death, sick, accident, and similar benefits to its individual members with funds contributed by its members, if made under a plan to better the conditions of the members, does not preclude exemption as a labor organization. Filing free state returns However, an organization does not qualify for exemption as a labor organization if it has no authority to represent members in job-related matters, even if it provides weekly income to its members in the event of a lawful strike by the members' union, in return for an annual payment by the member. Filing free state returns   For more information on labor organizations, see Life Cycle of a Labor Organization at IRS. Filing free state returns gov. Filing free state returns Agricultural and Horticultural Organizations Agricultural and horticultural organizations are connected with raising livestock, forestry, cultivating land, raising and harvesting crops or aquatic resources, cultivating useful or ornamental plants, and similar pursuits. Filing free state returns For the purpose of these provisions, aquatic resources include only animal or vegetable life, but not mineral resources. Filing free state returns The term harvesting, in this case, includes fishing and related pursuits. Filing free state returns Agricultural organizations can be quasi-public in character and are often designed to encourage the development of better agricultural and horticultural products through a system of awards, using income from entry fees, gate receipts, and donations to meet the necessary expenses of upkeep and operation. Filing free state returns When the activities are directed toward the improvement of marketing or other business conditions in one or more lines of business, rather than the improvement of production techniques or the betterment of the conditions of persons engaged in agriculture, the organization must qualify for exemption as a business league, board of trade, or other organization, as discussed next in the section on 501(c)(6) organizations. Filing free state returns The primary purpose of exempt agricultural and horticultural organizations must be to better the conditions of those engaged in agriculture or horticulture, develop more efficiency in agriculture or horticulture, or improve the products. Filing free state returns The following list contains some examples of activities that show an agricultural or horticultural purpose. Filing free state returns Promoting various cooperative agricultural, horticultural, and civic activities among rural residents by a state, farm, or home bureau. Filing free state returns Exhibiting livestock, farm products, and other characteristic features of agriculture and horticulture. Filing free state returns Testing soil for members and nonmembers of the farm bureau on a cost basis, the results of the tests and other recommendations being furnished to the community members to educate them in soil treatment. Filing free state returns Guarding the purity of a specific breed of livestock. Filing free state returns Encouraging improvements in the production of fish on privately owned fish farms. Filing free state returns Negotiating with processors for the price to be paid to members for their crops. Filing free state returns For more information on agricultural or horticultural organizations, see Life Cycle of an Agricultural or Horticultural Organization at IRS. Filing free state returns gov. Filing free state returns 501(c)(6) - Business Leagues, etc. Filing free state returns If your association wants to apply for recognition of exemption from federal income tax as a nonprofit business league, chamber of commerce, real estate board, or board of trade, it should file Form 1024. Filing free state returns For a discussion of the procedure to follow, see chapter 1. Filing free state returns Your organization must indicate in its application form and attached statements that no part of its net earnings will inure to the benefit of any private shareholder or individual and that it is not organized for profit or organized to engage in an activity ordinarily carried on for profit (even if the business is operated on a cooperative basis or produces only sufficient income to be self-sustaining). Filing free state returns In addition, your organization must be primarily engaged in activities or functions that are the basis for its exemption. Filing free state returns It must be primarily supported by membership dues and other income from activities substantially related to its exempt purpose. Filing free state returns A business league, in general, is an association of persons having some common business interest, the purpose of which is to promote that common interest and not to engage in a regular business of a kind ordinarily carried on for profit. Filing free state returns Trade associations and professional associations are considered business leagues. Filing free state returns Chamber of commerce. Filing free state returns   A chamber of commerce usually is composed of the merchants and traders of a city. Filing free state returns Board of trade. Filing free state returns   A board of trade often consists of persons engaged in similar lines of business. Filing free state returns For example, a nonprofit organization formed to regulate the sale of a specified agricultural commodity to assure equal treatment of producers, warehouse workers, and buyers is a board of trade. Filing free state returns   Chambers of commerce and boards of trade usually promote the common economic interests of all the commercial enterprises in a given trade community. Filing free state returns Real estate board. Filing free state returns   A real estate board consists of members interested in improving the business conditions in the real estate field. Filing free state returns It is not organized for profit and no part of the net earnings inures to the benefit of any private shareholder or individual. Filing free state returns Professional football leagues. Filing free state returns   The Internal Revenue Code specifically defines professional football leagues as exempt organizations under section 501(c)(6). Filing free state returns They are exempt whether or not they administer a pension fund for football players. Filing free state returns General purpose. Filing free state returns   You must indicate in the material submitted with your application that your organization will be devoted to the improvement of business conditions of one or more lines of business as distinguished from the performance of particular services for individual persons. Filing free state returns It must be shown that the conditions of a particular trade or the interests of the community will be advanced. Filing free state returns Merely indicating the name of the organization or the object of the local statute under which it is created is not enough to demonstrate the required general purpose. Filing free state returns Line of business. Filing free state returns   This term generally refers either to an entire industry or to all components of an industry within a geographic area. Filing free state returns It does not include a group composed of businesses that market a particular brand within an industry. Filing free state returns Common business interest. Filing free state returns   A common business interest of all members of the organization must be established by the application documents. Filing free state returns Examples. Filing free state returns   Activities that would tend to illustrate a common business interest are: Promotion of higher business standards and better business methods and encouragement of uniformity and cooperation by a retail merchants association, Education of the public in the use of credit, Establishment of uniform casualty rates and compilation of statistical information by an insurance rating bureau operated by casualty insurance companies, Establishment and maintenance of the integrity of a local commercial market, Operation of a trade publication primarily intended to benefit an entire industry, and Encouragement of the use of goods and services of an entire industry (such as a lawyer referral service whose main purpose is to introduce individuals to the use of the legal profession in the hope that they will enter into lawyer-client relationships on a paying basis as a result). Filing free state returns Improvement of business conditions. Filing free state returns   Generally, this must be shown to be the purpose of the organization. Filing free state returns This is not established by evidence of particular services that provide a convenience or economy to individual members in their businesses, such as advertising that carries the name of members, interest-free loans, assigning exclusive franchise areas, operation of a real estate multiple listing system, or operation of a credit reporting agency. Filing free state returns Stock or commodity exchange. Filing free state returns   A stock or commodity exchange is not a business league, chamber of commerce, real estate board, or board of trade and is not exempt under section 501(c)(6). Filing free state returns Legislative activity. Filing free state returns   An organization that is exempt under section 501(c)(6) can work for the enactment of laws to advance the common business interests of the organization's members. Filing free state returns Deduction not allowed for dues used for political or legislative activities. Filing free state returns   A taxpayer cannot deduct the part of dues or other payments to a business league, trade association, labor union, or similar organization that is reported to the taxpayer by the organization as having been used for any of the following activities. Filing free state returns Influencing legislation. Filing free state returns Participating or intervening in a political campaign for, or against, any candidate for public office. Filing free state returns Trying to influence the general public, or part of the general public, with respect to elections, legislative matters, or referendums (also known as grass roots lobbying). Filing free state returns Communicating directly with certain executive branch officials to try to influence their official actions or positions. Filing free state returns See Dues Used for Lobbying or Political Activities under Required Disclosures in chapter 2 for more information. Filing free state returns Exception for local legislation. Filing free state returns   Members can deduct dues (or assessments) to an organization that are for expenses of: Appearing before, submitting statements to, or sending communications to members of a local council or similar governing body with respect to legislation or proposed legislation of direct interest to the member, or Communicating information between the member and the organization with respect to local legislation or proposed legislation of direct interest to the organization or the member. Filing free state returns Legislation or proposed legislation is of direct interest to a taxpayer if it will, or can reasonably be expected to, affect the taxpayer's trade or business. Filing free state returns De minimis exception. Filing free state returns   In-house expenditures of $2,000 or less for the year for activities (1) – (4) listed earlier will not prevent a deduction for dues if the dues meet all other tests to be deductible as a business expense. Filing free state returns Grass roots lobbying. Filing free state returns   A tax-exempt trade association, labor union, or similar organization is considered to be engaging in grass roots lobbying if it contacts prospective members or calls upon its own members to contact their employees and customers for the purpose of urging such persons to communicate with their elected state or Congressional representatives to support the promotion, defeat, or repeal of legislation that is of direct interest to the organization. Filing free state returns Any dues or assessments directly related to such activities are not deductible by the taxpayer, since the individuals being contacted, who are not members of the organization, are a segment of the general public. Filing free state returns Tax treatment of donations. Filing free state returns   Contributions to organizations described in this section are not deductible as charitable contributions on the donor's federal income tax return. Filing free state returns They may be deductible as trade or business expenses if ordinary and necessary in the conduct of the taxpayer's business. Filing free state returns   For more information on business leagues, see Life Cycle of a Business League (Trade Association) on IRS. Filing free state returns gov. Filing free state returns 501(c)(7) - Social and Recreation Clubs If your club is organized for pleasure, recreation, and other similar nonprofitable purposes and substantially all of its activities are for these purposes, it should file Form 1024 to apply for recognition of exemption from federal income tax. Filing free state returns In applying for recognition of exemption, you should submit the information described in this section. Filing free state returns Also see chapter 1 for the procedures to follow. Filing free state returns Typical organizations that should file for recognition of exemption as social clubs include: College alumni associations that are not described in chapter 3 under Alumni association , College fraternities or sororities operating chapter houses for students, Country clubs, Amateur hunting, fishing, tennis, swimming, and other sport clubs, Dinner clubs that provide a meeting place, library, and dining room for members, Hobby clubs, Garden clubs, and Variety clubs. Filing free state returns Discrimination prohibited. Filing free state returns   Your organization will not be recognized as tax exempt if its charter, bylaws, or other governing instrument, or any written policy statement provides for discrimination against any person on the basis of race, color, or religion. Filing free state returns   However, a club that in good faith limits its membership to the members of a particular religion to further the teachings or principles of that religion and not to exclude individuals of a particular race or color will not be considered as discriminating on the basis of religion. Filing free state returns Also, the restriction on religious discrimination does not apply to a club that is an auxiliary of a fraternal beneficiary society (discussed later) if that society is described in section 501(c)(8) and exempt from tax under section 501(a) and limits its membership to the members of a particular religion. Filing free state returns Private benefit prohibited. Filing free state returns   No part of the organization's net earnings can inure to the benefit of any person having a personal and private interest in the activities of the organization. Filing free state returns For purposes of this requirement, it is not necessary that net earnings be actually distributed. Filing free state returns Even undistributed earnings can benefit members. Filing free state returns Examples of this include a decrease in membership dues or an increase in the services the club provides to its members without a corresponding increase in dues or other fees paid for club support. Filing free state returns However, fixed-fee payments to members who bring new members into the club are not an inurement of the club's net earnings, if the payments are reasonable compensation for performance of a necessary administrative service. Filing free state returns Purposes. Filing free state returns   To show that your organization possesses the characteristics of a club within the meaning of the exemption law, you should submit evidence with your application that personal contact, commingling, and fellowship exist among members. Filing free state returns You must show that members are bound together by a common objective of pleasure, recreation, and other nonprofitable purposes. Filing free state returns   Fellowship need not be present between each member and every other member of a club if it is a material part in the life of the organization. Filing free state returns A statewide or nationwide organization that is made up of individual members, but is divided into local groups, satisfies this requirement if fellowship is a material part of the life of each local group. Filing free state returns   The term other nonprofitable purposes means other purposes similar to pleasure and recreation. Filing free state returns For example, a club that, in addition to its social activities, has a plan for the payment of sick and death benefits is not operating exclusively for pleasure, recreation, and other nonprofitable purposes. Filing free state returns Limited membership. Filing free state returns   The membership in a social club must be limited. Filing free state returns To show that your organization has a purpose that would characterize it as a club, you should submit evidence with your application that there are limits on admission to membership consistent with the character of the club. Filing free state returns   A social club that issues corporate membership is dealing with the general public in the form of the corporation's employees. Filing free state returns Corporate members of a club are not the kind of members contemplated by the law. Filing free state returns Gross receipts from these members would be a factor in determining whether the club qualifies as a social club. Filing free state returns See Gross receipts from nonmembership sources , later. Filing free state returns Bona fide individual memberships paid for by a corporation would not have an effect on the gross receipts source. Filing free state returns   The fact that a social club may have an associate (nonvoting) class of membership will not be, in and of itself, a cause for nonrecognition of exemption. Filing free state returns However, if one membership class pays substantially lower dues and fees than another membership class, although both classes enjoy the same rights and privileges in using the club facilities, there may be an inurement of income to the benefited class, resulting in a denial of the club's exemption. Filing free state returns Support. Filing free state returns   In general, your club should be supported solely by membership fees, dues, and assessments. Filing free state returns However, if otherwise entitled to exemption, your club will not be disqualified because it raises revenue from members through the use of club facilities or in connection with club activities. Filing free state returns Business activities. Filing free state returns   If your club will engage in business, such as selling real estate, timber, or other products or services, it generally will be denied exemption. Filing free state returns However, evidence submitted with your application form that your organization will provide meals, refreshments, or services related to its exempt purposes only to its own members or their dependents or guests will not cause denial of exemption. Filing free state returns Facilities open to public. Filing free state returns   Evidence that your club's facilities will be open to the general public (persons other than members or their dependents or guests) may cause denial of exemption. Filing free state returns This does not mean, however, that any dealing with outsiders will automatically deprive a club of exemption. Filing free state returns Gross receipts from nonmembership sources. Filing free state returns   A section 501(c)(7) organization can receive up to 35% of its gross receipts, including investment income, from sources outside of its membership without losing its tax-exempt status. Filing free state returns Income from nontraditional business activity with members is not exempt function income, and thus is included as income from sources outside of the membership. Filing free state returns Of the 35% gross receipts listed above, up to 15% of the gross receipts can be derived from the use of the club's facilities or services by the general public. Filing free state returns If an organization has outside income that is more than these limits, all the facts and circumstances will be taken into account in determining whether the organization qualifies for exempt status. Filing free state returns Gross receipts. Filing free state returns   Gross receipts, for this purpose, are receipts from the normal and usual (traditionally conducted) activities of the club. Filing free state returns These receipts include charges, admissions, membership fees, dues, assessments, investment income, and normal recurring capital gains on investments. Filing free state returns Receipts do not include initiation fees and capital contributions. Filing free state returns Unusual amounts of income, such as from the sale of a clubhouse or similar facility, are not included in gross receipts or in figuring the percentage limits. Filing free state returns Nontraditional activities. Filing free state returns   Activities conducted by a social club need to further its exempt purposes. Filing free state returns Traditional business activities are those that further a social club's exempt purposes. Filing free state returns Nontraditional business activities do not further the exempt purposes of a social club even if conducted solely on a membership basis. Filing free state returns Nontraditional business activities are prohibited (subject to an insubstantial, trivial, and nonrecurrent test) for businesses conducted with both members and nonmembers. Filing free state returns Examples of nontraditional business activities include sale of package liquor, take-out food, and long-term room rental. Filing free state returns Fraternity foundations. Filing free state returns   If your organization is a foundation formed for the exclusive purpose of acquiring and leasing a chapter house to a local fraternity chapter or sorority chapter maintained at an educational institution and does not engage in any social or recreational activities, it may be a title holding corporation (discussed later under section 501(c)(2) organizations and under section 501(c)(25) organizations) rather than a social club. Filing free state returns Tax treatment of donations. Filing free state returns   Donations to exempt social and recreation clubs are not deductible as charitable contributions on the donor's federal income tax return. Filing free state returns 501(c)(8) and 501(c)(10) - Fraternal Beneficiary Societies and Domestic Fraternal Societies This section describes the information to be provided upon application for recognition of exemption by two types of fraternal societies: beneficiary and domestic. Filing free state returns The major distinction is that fraternal beneficiary societies provide for the payment of life, sick, accident, or other benefits to their members or their dependents, while domestic fraternal societies do not provide these benefits but rather devote their earnings to fraternal, religious, charitable, etc. Filing free state returns , purposes. Filing free state returns The procedures to follow in applying for recognition of exemption are described in chapter 1. Filing free state returns If your organization is controlled by a central organization, you should check with your controlling organization to determine whether your unit has been included in a group exemption letter or can be added. Filing free state returns If so, your organization need not apply for individual recognition of exemption. Filing free state returns For more information, see Group Exemption Letter in chapter 1 of this publication. Filing free state returns Tax treatment of donations. Filing free state returns   Donations by an individual to a domestic fraternal beneficiary society or a domestic fraternal society operating under the lodge system are deductible as charitable contributions only if used exclusively for religious, charitable, scientific, literary, or educational purposes or for the prevention of cruelty to children or animals. Filing free state returns Fraternal Beneficiary Societies (501(c)(8)) A fraternal beneficiary society, order, or association must file an application for recognition of exemption from federal income tax on Form 1024. Filing free state returns The application and accompanying statements should establish that the organization: Is a fraternal organization, Operates under the lodge system or for the exclusive benefit of the members of a fraternal organization itself operating under the lodge system, and Provides for the payment of life, sick, accident, or other benefits to the members of the society, order, or association or their dependents. Filing free state returns Lodge system. Filing free state returns   Operating under the lodge system means carrying on activities under a form of organization that comprises local branches, chartered by a parent organization and largely self-governing, called lodges, chapters, or the like. Filing free state returns Payment of benefits. Filing free state returns   It is not essential that every member be covered by the society's program of sick, accident, or death benefits. Filing free state returns An organization can qualify for exemption if most of its members are eligible for benefits, and the benefits are paid from contributions or dues paid by those members. Filing free state returns   The benefits must be limited to members and their dependents. Filing free state returns If members will have the ability to confer benefits to other than themselves and their dependents, exemption will not be recognized. Filing free state returns Whole-life insurance. Filing free state returns   Whole-life insurance constitutes a life benefit under section 501(c)(8) even though the policy may contain investment features such as a cash surrender value or a policy loan. Filing free state returns Reinsurance pool. Filing free state returns   Payments by a fraternal beneficiary society into a state-sponsored reinsurance pool that protects participating insurers against excessive losses on major medical health and accident insurance will not preclude exemption as a fraternal beneficiary society. Filing free state returns Domestic Fraternal Societies (501(c)(10)) A domestic fraternal society, order, or association must file an application for recognition of exemption from federal income tax on Form 1024. Filing free state returns The application and accompanying statements should establish that the organization: Is a domestic fraternal organization organized in the U. Filing free state returns S. Filing free state returns , Operates under the lodge system, Devotes its net earnings exclusively to religious, charitable, scientific, literary, educational, and fraternal purposes, and Does not provide for the payment of life, sick, accident, or other benefits to its members. Filing free state returns The organization can arrange with insurance companies to provide optional insurance to its members without jeopardizing its exempt status. Filing free state returns 501(c)(4), 501(c)(9), and 501(c)(17) - Employees' Associations This section describes the information to be provided upon application for recognition of exemption by the following types of employees' associations: A voluntary employees' beneficiary association (including federal employees' associations) organized to pay life, sick, accident, and similar benefits to members or their dependents, or designated beneficiaries, if no part of the net earnings of the association inures to the benefit of any private shareholder or individual, and A supplemental unemployment benefit trust whose primary purpose is providing for payment of supplemental unemployment benefits. Filing free state returns Both the application form to file and the information to provide are discussed later under the section that describes your employee association. Filing free state returns Chapter 1 describes the procedures to follow in applying for exemption. Filing free state returns Tax treatment of donations. Filing free state returns   Donations to these organizations are not deductible as charitable contributions on the donor's federal income tax return. Filing free state returns Local Employees' Associations (501(c)(4)) A local association of employees whose membership is limited to employees of a designated person or persons in a particular municipality, and whose income will be devoted exclusively to charitable, educational, or recreational purposes. Filing free state returns A local employees' association must apply for recognition of exemption by filing Form 1024. Filing free state returns The organization must submit evidence that: It is of a purely local character, Its membership is limited to employees of a designated person or persons in a particular locality, and Its net earnings will be devoted exclusively to charitable, educational, or recreational purposes. Filing free state returns A local association of employees that has established a system of paying retirement or death benefits, or both, to its members will not qualify for exemption since the payment of these benefits is not considered as being for charitable, educational, or recreational purposes. Filing free state returns Similarly, a local association of employees that is operated primarily as a cooperative buying service for its members in order to obtain discount prices on merchandise, services, and activities does not qualify for exemption. Filing free state returns Voluntary Employees' Beneficiary Associations (501(c)(9)) An application for recognition of exemption as a voluntary employees' beneficiary association must be filed on Form 1024. Filing free state returns The material submitted with the application must show that your organization: Is a voluntary association of employees, Will provide for payment of life, sick, accident, or other benefits to members or their dependents or designated beneficiaries and substantially all of its operations are for this purpose, and Will not allow any of its net earnings to inure to the benefit of any private individual or shareholder except in the form of scheduled benefit payments. Filing free state returns To be complete, an application must include a copy of the document (such as the trust instrument) by which the organization was created; a full description of the benefits available to participants and the terms and conditions of eligibility for benefits (usually contained in a plan document); and, if providing benefits pursuant to a collective bargaining agreement, a copy of that agreement. Filing free state returns Note. Filing free state returns Under section 4976, the reversion of funds from a section 501(c)(9) organization to the employer who created the beneficiary association may subject the employer to a 100% penalty excise tax on the amount of the reversion. Filing free state returns Notice requirement. Filing free state returns   An organization will not be considered tax exempt under this section unless the organization gives notice to the IRS that it is applying for recognition of exempt status. Filing free state returns The organization gives notice by filing Form 1024. Filing free state returns If the notice is not given by 15 months after the end of the month in which the organization was created, the organization will not be exempt for any period before notice is given. Filing free state returns An extension of time for filing the notice can be granted under the same procedures as those described for section 501(c)(3) organizations in chapter 3 under Application for Recognition of Exemption . Filing free state returns Membership. Filing free state returns   Membership of a section 501(c)(9) organization must consist of individuals who are employees and have an employment-related common bond. Filing free state returns This common bond can be a common employer (or affiliated employers), coverage under one or more collective bargaining agreements, membership in a labor union, or membership in one or more locals of a national or international labor union. Filing free state returns   The membership of an association can include some individuals who are not employees, provided they have an employment-related bond with the employee-members. Filing free state returns For example, the owner of a business whose employees are members of the association can be a member. Filing free state returns An association will be considered composed of employees if 90% of its total membership on one day of each quarter of its tax year consists of employees. Filing free state returns Employees. Filing free state returns   Employees include individuals who became entitled to membership because they are or were employees. Filing free state returns For example, an individual will qualify as an employee even though the individual is on a leave of absence or has been terminated due to retirement, disability, or layoff. Filing free state returns   Generally, membership is voluntary if an affirmative act is required on the part of an employee to become a member. Filing free state returns Conversely, membership is involuntary if the designation as a member is due to employee status. Filing free state returns However, an association will be considered voluntary if employees are required to be members of the organization as a condition of their employment and they do not incur a detriment (such as a payroll deduction) as a result of their membership. Filing free state returns An employer has not imposed involuntary membership on the employee if membership is required as the result of a collective bargaining agreement or as an incident of membership in a labor organization. Filing free state returns Payment of benefits. Filing free state returns   The information submitted with your application must show that your organization will pay life, sick, accident, supplemental unemployment, or other similar benefits. Filing free state returns The benefits can be provided directly by your association or indirectly by your association through the payments of premiums to an insurance company (or fees to a medical clinic). Filing free state returns Benefits can be in the form of medical, clinical, or hospital services, transportation furnished for medical care, or money payments. Filing free state returns Nondiscrimination requirements. Filing free state returns   An organization that is part of a plan will not be exempt unless the plan meets certain nondiscrimination requirements. Filing free state returns However, if the organization is part of a plan that is a collective bargaining agreement that was the subject of good faith bargaining between employee organizations and employers, the plan need not meet these requirements for the organization to qualify as tax exempt. Filing free state returns   A plan meets the nondiscrimination requirements only if both of the following statements are true. Filing free state returns Each class of benefits under the plan is provided under a classification of employees that is set forth in the plan and does not discriminate in favor of employees who are highly compensated individuals. Filing free state returns The benefits provided under each class of benefits do not discriminate in favor of highly compensated individuals. Filing free state returns A life insurance, disability, severance pay, or supplemental unemployment compensation benefit does not discriminate in favor of highly compensated individuals merely because the benefits available bear a uniform relationship to the total compensation, or the basic or regular rate of compensation, of employees covered by the plan. Filing free state returns   For purposes of determining whether a plan meets the nondiscrimination requirements, the employer can elect to exclude all disability or severance payments payable to individuals who are in pay status as of January 1, 1985. Filing free state returns This will not apply to any increase in such payment by any plan amendment adopted after June 22, 1984. Filing free state returns   If a plan provides a benefit for which there is a nondiscrimination provision provided under Chapter 1 of the Internal Revenue Code as a condition of that benefit being excluded from gross income, these nondiscrimination requirements do not apply. Filing free state returns The benefit will be considered nondiscriminatory only if it meets the nondiscrimination provision of the applicable Code section. Filing free state returns For example, benefits provided under a medical reimbursement plan would meet the nondiscrimination requirements for an association, if the benefits meet the nondiscrimination requirements of section 105(h)(3) and 105(h)(4). Filing free state returns Excluded employees. Filing free state returns   Certain employees who are not covered by a plan can be excluded from consideration in applying these requirements. Filing free state returns These include employees: Who have not completed 3 years of service, Who have not attained age 21, Who are seasonal or less than half-time employees, Who are not in the plan and who are included in a unit of employees covered by a collective bargaining agreement if the class of benefits involved was the subject of good faith bargaining, or Who are nonresident aliens and who receive no earned income from the employer that has United States source income. Filing free state returns Highly compensated individual. Filing free state returns   A highly compensated individual is one who: Owned 5 percent or more of the employer at any time during the current year or the preceding year, Received more than $115,000 in compensation from the employer for the preceding year (the amount is annualized for inflation. Filing free state returns Go to IRS. Filing free state returns gov, and search “Pension Plan Limitation” for the year), and Was among the top 20% of employees by compensation for the preceding year. Filing free state returns However, the employer can choose not to have (3) apply. Filing free state returns Aggregation rules. Filing free state returns   The employer can choose to treat two or more plans as one plan for purposes of meeting the nondiscrimination requirements. Filing free state returns Employees of controlled groups of corporations, trades, or businesses under common control, or members of an affiliated service group, are treated as employees of a single employer. Filing free state returns Leased employees are treated as employees of the recipient. Filing free state returns One employee. Filing free state returns   A trust created to provide benefits to one employee will not qualify as a voluntary employees' beneficiary association under section 501(c)(9). Filing free state returns Supplemental Unemployment Benefit Trusts (501(c)(17)) A trust or trusts forming part of a written plan (established and maintained by an employer, his or her employees, or both) providing solely for the payment of supplemental unemployment compensation benefits must file the application for recognition of exemption on Form 1024. Filing free state returns The trust must be a valid, existing trust under local law and must be evidenced by an executed document. Filing free state returns A conformed copy of the plan of which the trust is a part should be attached to the application. Filing free state returns To be complete, an application must include a copy of the document (such as the trust instrument) by which the organization was created; a full description of the benefits available to participants and the terms and conditions of eligibility for benefits (usually contained in a plan document); and, if providing benefits pursuant to a collective bargaining agreement, a copy of that agreement. Filing free state returns Note. Filing free state returns Under section 4976, the reversion of funds from a section 501(c)(17) organization to the employer who created the supplemental unemployment benefit trust may subject the employer to a 100% penalty excise tax on the amount of the reversion. Filing free state returns Notice requirement. Filing free state returns   An organization will not be considered tax exempt under this section unless the organization gives notice to the IRS that it is applying for recognition of exempt status. Filing free state returns The organization gives notice by filing Form 1024. Filing free state returns If the notice is not given by 15 months after the end of the month in which the organization was created, the organization will not be exempt for any period before such notice is given. Filing free state returns An extension of time for filing the notice is granted under the same procedures as those described for section 501(c)(3) organizations in chapter 3 under Application for Recognition of Exemption . Filing free state returns Types of payments. Filing free state returns   You must show that the supplemental unemployment compensation benefits will be benefits paid to an employee because of the employee's involuntary separation from employment (whether or not the separation is temporary) resulting directly from a reduction-in-force, discontinuance of a plant or operation, or other similar conditions. Filing free state returns In addition, sickness and accident benefits (but not vacation, retirement, or death benefits) may be included in the plan if these are subordinate to the unemployment compensation benefits. Filing free state returns Diversion of funds. Filing free state returns   It must be impossible under the plan (at any time before the satisfaction of all liabilities with respect to employees under the plan) to use or to divert any of the corpus or income of the trust to any purpose other than the payment of supplemental unemployment compensation benefits (or sickness or accident benefits to the extent just explained). Filing free state returns Discrimination in benefits. Filing free state returns   Neither the terms of the plan nor the actual payment of benefits can be discriminatory in favor of the company's officers, stockholders, supervisors, or highly paid employees. Filing free state returns However, a plan is not discriminatory merely because benefits bear a uniform relationship to compensation or the rate of compensation. Filing free state returns Prohibited transactions and exemption. Filing free state returns   If your organization is a supplemental unemployment benefit trust and has received a denial of exemption because it engaged in a prohibited transaction, as defined by section 503(b), it can file a claim for exemption in any tax year following the tax year in which the notice of denial was issued. Filing free state returns It must file the claim on Form 1024. Filing free state returns The organization must include a written declaration that it will not knowingly again engage in a prohibited transaction. Filing free state returns An authorized principal officer of your organization must make this declaration under the penalties of perjury. Filing free state returns   If your organization has satisfied all requirements as a supplemental unemployment benefit trust described in section 501(c)(17), it will be notified in writing that it has been recognized as exempt. Filing free state returns However, the organization will be exempt only for those tax years after the tax year in which the claim for exemption (Form 1024) is filed. Filing free state returns Tax year in this case means the established annual accounting period of the organization or, if the organization has not established an annual accounting period, the calendar year. Filing free state returns For more information about the requirements for reestablishing an exemption previously denied, contact the IRS. Filing free state returns 501(c)(12) - Local Benevolent Life Insurance Associations, Mutual Irrigation and Telephone Companies, and Like Organizations Each of the following organizations apply for recognition of exemption from federal income tax by filing Form 1024. Filing free state returns Benevolent life insurance associations of a purely local character and like organizations. Filing free state returns Mutual ditch or irrigation companies and like organizations. Filing free state returns Mutual or cooperative telephone companies and like organizations. Filing free state returns A like organization is an organization that performs a service comparable to that performed by any one of the above organizations. Filing free state returns The information to be provided upon application by each of these organizations is described in this section. Filing free state returns For information as to the procedures to follow in applying for exemption, see chapter 1. Filing free state returns General requirements. Filing free state returns   These organizations must use their income solely to cover losses and expenses, with any excess being returned to members or retained to cover future losses and expenses. Filing free state returns They must collect at least 85% of their income from members for the sole purpose of meeting losses and expenses. Filing free state returns Mutual character. Filing free state returns   These organizations, other than benevolent life insurance associations, must be organized and operated on a mutual or cooperative basis. Filing free state returns They are associations of persons or organizations, or both, banded together to provide themselves a mutually desirable service approximately at cost and on a mutual basis. Filing free state returns To maintain the mutual characteristic of democratic ownership and control, they must be so organized and operated that their members have the right to choose the management, to receive services at cost, to receive a return of any excess of payments over losses and expenses, and to share in any assets upon dissolution. Filing free state returns   The rights and interests of members in the annual savings of the organization must be determined in proportion to their business with the organization. Filing free state returns Upon dissolution, gains from the sale of appreciated assets must be distributed to all persons who were members during the period the assets were owned by the organization in proportion to the amount of business done during that period. Filing free state returns The bylaws must not provide for forfeiture of a member's rights and interest upon withdrawal or termination. Filing free state returns Membership. Filing free state returns   Membership of a mutual organization consists of those who join the organization to obtain its services, and have a voice in its management. Filing free state returns In a stock company, the stockholders are members. Filing free state returns However, a mutual life insurance organization cannot have policyholders other than its members. Filing free state returns Losses and expenses. Filing free state returns   In furnishing services substantially at cost, an organization must use its income solely for paying losses and expenses. Filing free state returns Any excess income not retained in reasonable reserves for future losses and expenses belongs to members in proportion to their patronage or business done with the organization. Filing free state returns If such patronage refunds are retained in reasonable amounts for purposes of expanding and improving facilities, retiring capital indebtedness, acquiring other assets, and unexpected expenses, the organization must maintain records sufficient to reflect the equity of each member in the assets acquired with the funds. Filing free state returns Distributions of proceeds. Filing free state returns   The cooperative may distribute the unexpended balance of collections or assessments remaining on hand at the end of the year to members or patrons prorated on the basis of their patronage or business done with the cooperative. Filing free state returns Such distribution represents a refund in the costs of services rendered to the member. Filing free state returns The 85% Requirement All of the organizations listed above must submit evidence with their application that they receive 85% or more of their gross income from their members for the sole purpose of meeting losses and expenses. Filing free state returns Nevertheless, certain items of income are excluded from the computation of the 85% requirement if the organization is a mutual or cooperative telephone or electric company. Filing free state returns Mutual or cooperative telephone company. Filing free state returns   A mutual or cooperative telephone company will exclude from the computation of the 85% requirement any income received or accrued from: A nonmember telephone company for the performance of communication services involving the completion of long distance calls to, from, or between members of the mutual or cooperative telephone company, Qualified pole rentals, The sale of display listings in a directory furnished to its members, or The prepayment of a loan created in 1987, 1988, or 1989, under section 306A, 306B, or 311 of the Rural Electrification Act of 1936. Filing free state returns Mutual or cooperative electric company. Filing free state returns   A mutual or cooperative electric company will exclude from the computation of the 85% requirement any income received or accrued from: Qualified pole rentals, Any provision or sale of electric energy transmission services or ancillary service if the services are provided on a nondiscriminatory open access basis under an open access transmission tariff approved or accepted by the Federal Energy Regulatory Commission (FERC) or under an independent transmission provider agreement approved or accepted by FERC (other than income received or accrued directly or indirectly from a member), The provision or sale of electric energy distribution services or ancillary services if the services are provided on a nondiscriminatory open-access basis to distribute electric energy not owned by the mutual or electric cooperative company: To end-users who are served by distribution facilities not owned by the company or any of its members (other than income received or accrued directly or indirectly from a member), or Generated by a generation facility not owned or leased by the company or any of its members and which is directly connected to distribution facilities owned by the company or any of its members (other than income received or accrued directly or indirectly from a member), Any nuclear decommissioning transaction, or Any asset exchange or conversion transaction. Filing free state returns   An electric cooperative's sale of excess fuel at cost in the year of purchase is not income for purposes of determining compliance with the 85% requirement. Filing free state returns Qualified pole rental. Filing free state returns   The term qualified pole rental means any rental of a pole (or other structure used to support wires) if the pole (or other structure) is used: By the telephone or electric company to support one or more wires that are used by the company in providing telephone or electric services to its members, and Pursuant to the rental to support one or more wires (in addition to wires described in (1)) for use in connection with the transmission by wire of electricity or of telephone or other communications. Filing free state returns   The term rental, for this purpose, includes any sale of the right to use the pole (or other structure). Filing free state returns The 85% requirement is applied on the basis of an annual accounting period. Filing free state returns Failure of an organization to meet the requirement in a particular year precludes exemption for that year, but has no effect upon exemption for years in which the 85% requirement is met. Filing free state returns Gain from the sale or conversion of the organization's property is not considered an amount received from members in determining whether the organization's income consists of amounts collected from members. Filing free state returns Because the 85% income test is based on gross income, capital losses cannot be used to reduce capital gains for purposes of this test. Filing free state returns Example. Filing free state returns   The books of an organization reflect the following for the calendar year. Filing free state returns Collections from members $2,400 Short-term capital gains 600 Short-term capital losses 400 Other income None Gross income ($2,400 + $600 =$3000) 100% Collected from members ($2,400) 80%   Since amounts collected from members do not constitute at least 85% of gross income, the organization is not entitled to exemption from federal income tax for the year. Filing free state returns   Voluntary contributions in the nature of gifts are not taken into account for purposes of the 85% computation. Filing free state returns   Other tax-exempt income besides gifts is considered as income received from other than members in applying the 85% test. Filing free state returns   If the 85% test is not met, your organization, if classifiable under this section, will not qualify for exemption as any other type of organization described in this publication. Filing free state returns Tax treatment of donations. Filing free state returns   Donations to an organization described in this section are not deductible as charitable contributions on the donor's federal income tax return. Filing free state returns Local Life Insurance Associations A benevolent life insurance association or an organization seeking recognition of exemption on grounds of similarity to a benevolent life insurance association must submit evidence upon applying for recognition of exemption that it will be of a purely local character, that its excess funds will be refunded to members or retained in reasonable reserves to meet future losses and expenses, and that it meets the 85% income requirement. Filing free state returns If an organization issues policies for stipulated cash premiums, or if it requires advance deposits to cover the cost of the insurance and maintains investments from which more than 15% of its income is derived, it will not be entitled to exemption. Filing free state returns To establish that your organization is of a purely local character, it should show that its activities will be confined to a particular community, place, or district irrespective of political subdivisions. Filing free state returns If the activities of an organization are limited only by the borders of a state, it cannot be purely local in character. Filing free state returns A benevolent life insurance association that does not terminate membership when a member moves from the local area in which the association operates will qualify for exemption if it meets the other requirements. Filing free state returns A copy of each type of policy issued by your organization should be included with the application for recognition of exemption. Filing free state returns Organizations similar to local benevolent life insurance companies. Filing free state returns   These organizations include those that in addition to paying death benefits also provide for the payment of sick, accident, or health benefits. Filing free state returns However, an organization that pays only sick, accident, or health benefits, but not life insurance benefits, is not an organization similar to a benevolent life insurance association and should not apply for recognition of exemption as described in this section. Filing free state returns Burial and funeral benefit insurance organization. Filing free state returns   This type of organization can apply for recognition of exemption as an organization similar to a benevolent life insurance company if it establishes that the benefits are paid in cash and if it is not engaged directly in the manufacture of funeral supplies or the performance of funeral services. Filing free state returns An organization that provides its benefits in the form of supplies and service is not a life insurance company. Filing free state returns Such an organization can seek recognition of exemption from federal income tax, however, as a mutual insurance company other than life. Filing free state returns Mutual or Cooperative Associations Mutual ditch or irrigation companies, mutual or cooperative telephone companies, and like organizations need not establish that they are of a purely local character. Filing free state returns They can serve noncontiguous areas. Filing free state returns Like organization. Filing free state returns   A like organization is a cooperative or mutual organization that performs a service similar to mutual ditch, irrigation, telephone, or electric companies. Filing free state returns Examples include the following: cooperatives that provide protection of river banks to prevent erosion, water and sewer services, cable television, satellite, television, cellular phone services, two-way radio service, or natural gas services. Filing free state returns 501(c)(13) - Cemetery Companies If your organization wishes to obtain recognition of exemption from federal income tax as a cemetery company or a corporation chartered solely for the purpose of the disposal of human bodies by burial or cremation, it must file an application on Form 1024. Filing free state returns For the procedure to follow to file an application, see Application, Approval, and Appeal Procedures in chapter 1. Filing free state returns A nonprofit mutual cemetery company that seeks recognition of exemption should submit evidence with its application that it is owned and operated exclusively for the benefit of its lot owners who hold lots for bona fide burial purposes and not for purposes of resale. Filing free state returns A mutual cemetery company that also engages in charitable activities, such as the burial of paupers, will be regarded as operating within this standard. Filing free state returns The fact that a mutual cemetery company limits its membership to a particular class of individuals, such as members of a family, will not affect its status as mutual so long as all the other requirements of section 501(c)(13) are met. Filing free state returns If your organization is a nonprofit corporation chartered solely for the purpose of the disposal of human bodies by burial or cremation, you should show that it is not permitted by its charter to engage in any business not necessarily incident to that purpose. Filing free state returns Operating a mortuary is not permitted. Filing free state returns However, selling monuments, markers, vaults, and flowers solely for use in the cemetery is permitted if the profits from these sales are used to maintain the cemetery as a whole. Filing free state returns How income can be used. Filing free state returns   You should show that your organization's earnings are or will be used only in one or more of the following ways. Filing free state returns To pay the ordinary and necessary expenses of operating, maintaining, and improving the cemetery or crematorium. Filing free state returns To buy cemetery property. Filing free state returns To create a fund that will provide a source of income for the perpetual care of the cemetery or a reasonable reserve for any ordinary or necessary purpose. Filing free state returns No part of the net earnings of your organization can inure to the benefit of any private shareholder or individual. Filing free state returns Ordinary and necessary expenses in connection with the operation, management, maintenance, and improvement of the cemetery are permitted, as are reasonable fees for the services of a manager. Filing free state returns Buying cemetery property. Filing free state returns   Payments can be made to amortize debt incurred to buy land, but cannot be in the nature of profit distributions. Filing free state returns You must show the method used to finance the purchase of the cemetery property and that the purchase price of the land at the time of its sale to the cemetery was not unreasonable. Filing free state returns   Except for holders of preferred stock (discussed later), no person can have any interest in the net earnings of a tax-exempt cemetery company or crematorium. Filing free state returns Therefore, if property is transferred to the organization in exchange for an interest in the organization's net earnings, the organization will not
Español

Better Business Bureaus (BBBs) are nonprofit organizations that encourage honest advertising and selling practices and are supported primarily by local businesses. They offer a variety of consumer services, including consumer education materials; business reports, particularly unanswered or unsettled complaints or other problems; mediation and arbitration services; and information about charities and other organizations that are seeking public donations. They also provide ratings (A, B, C, D, or F) of local companies to express the BBB's confidence that the company operates in a trustworthy manner and demonstrates a willingness to resolve customer concerns.

Wallingford, CT

Website: Better Business Bureau

Email: info@ct.bbb.org

Address: Better Business Bureau
94 S. Turnpike Rd.
Wallingford, CT 06492

Phone Number: 203-269-2700

The Filing Free State Returns

Filing free state returns Publication 4492-B - Main Content Table of Contents DefinitionsMidwestern Disaster Areas Applicable Disaster Date Charitable Giving IncentivesTemporary Suspension of Limits on Charitable Contributions Standard Mileage Rate for Charitable Use of Vehicles Mileage Reimbursements to Charitable Volunteers Casualty and Theft LossesTime limit for making election. Filing free state returns Replacement Period for Nonrecognition of Gain Net Operating Losses IRAs and Other Retirement PlansDefinitions Taxation of Qualified Disaster Recovery Assistance Distributions Repayment of Qualified Disaster Recovery Assistance Distributions Repayment of Qualified Distributions for the Purchase or Construction of a Main Home Loans From Qualified Plans Additional Tax Relief for IndividualsEarned Income Credit and Child Tax Credit Additional Exemption for Housing Individuals Displaced by the Severe Storms, Tornadoes, or Flooding Education Credits Recapture of Federal Mortgage Subsidy Exclusion of Certain Cancellations of Indebtedness by Reason of the Severe Storms, Tornadoes, or Flooding Tax Relief for Temporary Relocation Additional Tax Relief for BusinessesEmployee Retention Credit Employer Housing Credit and Exclusion Demolition and Clean-up Costs Increase in Rehabilitation Tax Credit Request for Copy or Transcript of Tax Return How To Get Tax HelpLow Income Taxpayer Clinics (LITCs). Filing free state returns Definitions The following definitions are used throughout this publication. Filing free state returns Midwestern Disaster Areas A Midwestern disaster area is an area for which a major disaster was declared by the President during the period beginning on May 20, 2008, and ending on July 31, 2008, in the state of Arkansas, Illinois, Indiana, Iowa, Kansas, Michigan, Minnesota, Missouri, Nebraska, or Wisconsin, as a result of severe storms, tornadoes, or flooding that occurred on the applicable disaster date. Filing free state returns See Tables 1 and 2 for a list of the counties included in the Midwestern disaster areas. Filing free state returns Applicable Disaster Date The term “applicable disaster date” as used in this publication, refers to the date on which the severe storms, tornadoes, or flooding occurred in the Midwestern disaster areas. Filing free state returns You will need to know this date when using this publication for the various tax provisions. Filing free state returns Table 1 The counties listed in Table 1 below are eligible for all tax provisions shown in this publication. Filing free state returns Applicable Disaster Dates* State Affected Counties—Midwestern Disaster Areas 05/02/2008through05/12/2008 Arkansas Arkansas, Benton, Cleburne, Conway, Crittenden, Grant, Lonoke, Mississippi, Phillips, Pulaski, Saline, and Van Buren. Filing free state returns 06/01/2008through07/22/2008 Illinois Adams, Calhoun, Clark, Coles, Crawford, Cumberland, Douglas, Edgar, Hancock, Henderson, Jasper, Jersey, Lake, Lawrence, Mercer, Rock Island, Whiteside, and Winnebago. Filing free state returns 05/30/2008through06/27/2008 Indiana Adams, Bartholomew, Brown, Clay, Daviess, Dearborn, Decatur, Gibson, Grant, Greene, Hamilton, Hancock, Hendricks, Henry, Huntington, Jackson, Jefferson, Jennings, Johnson, Knox, Lawrence, Madison, Marion, Monroe, Morgan, Owen, Parke, Pike, Posey, Putnam, Randolph, Ripley, Rush, Shelby, Sullivan, Tippecanoe, Vermillion, Vigo, Washington, and Wayne. Filing free state returns 05/25/2008through08/13/2008 Iowa Adair, Adams, Allamakee, Appanoose, Audubon, Benton, Black Hawk, Boone, Bremer, Buchanan, Butler, Cass, Cedar, Cerro Gordo, Chickasaw, Clarke, Clayton, Clinton, Crawford, Dallas, Davis, Decatur, Delaware, Des Moines, Dubuque, Fayette, Floyd, Franklin, Fremont, Greene, Grundy, Guthrie, Hamilton, Hancock, Hardin, Harrison, Henry, Howard, Humboldt, Iowa, Jackson, Jasper, Johnson, Jones, Keokuk, Kossuth, Lee, Linn, Louisa, Lucas, Madison, Mahaska, Marion, Marshall, Mills, Mitchell, Monona, Monroe, Montgomery, Muscatine, Page, Polk, Pottawattamie, Poweshiek, Ringgold, Scott, Story, Tama, Union, Van Buren, Wapello, Warren, Washington, Webster, Winnebago, Winneshiek, Worth, and Wright. Filing free state returns 05/10/2008through05/11/2008 Missouri Barry, Jasper, and Newton. Filing free state returns 06/01/2008through08/13/2008 Missouri Adair, Andrew, Callaway, Cass, Chariton, Clark, Gentry, Greene, Harrison, Holt, Johnson, Lewis, Lincoln, Linn, Livingston, Macon, Marion, Monroe, Nodaway, Pike, Putnam, Ralls, St. Filing free state returns Charles, Stone, Taney, Vernon, and Webster. Filing free state returns 05/22/2008through06/24/2008 Nebraska Buffalo, Butler, Colfax, Custer, Dawson, Douglas, Gage, Hamilton, Holt, Jefferson, Kearney, Lancaster, Platte, Richardson, Sarpy, and Saunders. Filing free state returns 06/05/2008through07/25/2008 Wisconsin Adams, Calumet, Crawford, Columbia, Dane, Dodge, Fond du Lac, Grant, Green, Green Lake, Iowa, Jefferson, Juneau, Kenosha, La Crosse, Manitowoc, Marquette, Milwaukee, Monroe, Ozaukee, Racine, Richland, Rock, Sauk, Sheboygan, Vernon, Walworth, Washington, Waukesha, and Winnebago. Filing free state returns *For more details, go to www. Filing free state returns fema. Filing free state returns gov Table 2 The counties listed in Table 2 below are eligible for all of the special tax provisions shown in this publication except the following. Filing free state returns Charitable Giving Incentives. Filing free state returns Net Operating Losses. Filing free state returns Education Credits. Filing free state returns Recapture of Federal Mortgage Subsidy. Filing free state returns Tax Relief for Temporary Relocation. Filing free state returns Employee Retention Credit. Filing free state returns Employer Housing Credit and Exclusion. Filing free state returns Demolition and Clean-up Costs. Filing free state returns Increase in Rehabilitation Credit. Filing free state returns Applicable Disaster Dates* State Affected Counties—Midwestern Disaster Areas 06/01/2008through07/22/2008 Illinois Greene, Madison, Monroe, Pike, Randolph, St. Filing free state returns Clair, and Scott. Filing free state returns 05/30/2008through06/27/2008 Indiana Benton, Boone, Fountain, Franklin, Jay, Montgomery, Ohio, Switzerland, Union, and Wabash. Filing free state returns 05/25/2008through08/13/2008 Iowa Carroll, Cherokee, Lyon, Palo Alto, Pocahontas, Taylor, and Wayne. Filing free state returns 05/22/2008through06/16/2008 Kansas Barber, Barton, Bourbon, Brown, Butler, Chautauqua, Cherokee, Clark, Clay, Comanche, Cowley, Crawford, Decatur, Dickinson, Edwards, Elk, Ellis, Ellsworth, Franklin, Gove, Graham, Harper, Haskell, Hodgeman, Jackson, Jewell, Kingman, Kiowa, Lane, Linn, Logan, Mitchell, Montgomery, Ness, Norton, Osborne, Pawnee, Phillips, Pratt, Reno, Republic, Riley, Rooks, Rush, Saline, Seward, Sheridan, Smith, Stafford, Sumner, Thomas, Trego, Wallace, and Wilson. Filing free state returns 06/06/2008through06/13/2008 Michigan Allegan, Barry, Eaton, Ingham, Lake, Manistee, Mason, Missaukee, Osceola, Ottawa, Saginaw, and Wexford. Filing free state returns 06/06/2008through06/12/2008 Minnesota Cook, Fillmore, Freeborn, Houston, Mower, and Nobles. Filing free state returns 06/01/2008through08/13/2008 Missouri Atchison, Audrain, Bates, Buchanan, Cape Girardeau, Carroll, Christian, Daviess, Grundy, Howard, Jefferson, Knox, Mercer, Miller, Mississippi, Morgan, New Madrid, Pemiscot, Perry, Pettis, Platte, Polk, Randolph, Ray, Saline, Schuyler, Scotland, Shelby, St. Filing free state returns Genevieve, St. Filing free state returns Louis, the Independent City of St. Filing free state returns Louis, Scott, Sullivan, and Worth. Filing free state returns 04/23/2008through04/26/2008 Nebraska Gage, Johnson, Morrill, Nemaha, and Pawnee. Filing free state returns 05/22/2008through06/24/2008 Nebraska Adams, Blaine, Boone, Boyd, Brown, Burt, Cass, Chase, Cherry, Cuming, Dundy, Fillmore, Frontier, Furnas, Garfield, Gosper, Greeley, Hall, Hayes, Howard, Johnson, Keya Paha, Lincoln, Logan, Loup, Merrick, McPherson, Morrill, Nance, Nemaha, Otoe, Phelps, Polk, Red Willow, Rock, Saline, Seward, Sherman, Stanton, Thayer, Thomas, Thurston, Valley, Webster, Wheeler, and York. Filing free state returns 06/27/2008 Nebraska Dodge, Douglas, Sarpy, and Saunders. Filing free state returns 06/05/2008through07/25/2008 Wisconsin Lafayette. Filing free state returns * For more details, go to www. Filing free state returns fema. Filing free state returns gov Charitable Giving Incentives Temporary Suspension of Limits on Charitable Contributions This benefit applies only to the counties in Table 1. Filing free state returns Individuals. Filing free state returns   Qualified contributions are not subject to the overall limit on itemized deductions or the 50% of adjusted gross income (AGI) limit. Filing free state returns A qualified contribution is a charitable contribution paid in cash or by check to a 50% limit organization if you make an election to have the 50% limit not apply to these contributions. Filing free state returns   A qualified contribution must also meet all of the following requirements. Filing free state returns Be paid after May 1, 2008, and before January 1, 2009. Filing free state returns The contribution must be for relief efforts in one or more Midwestern disaster areas. Filing free state returns Documentation must be provided by the donee organization that the contribution was used (or will be used) for relief efforts in one or more Midwestern disaster areas. Filing free state returns   Your deduction for qualified contributions is limited to your AGI minus your deduction for all other charitable contributions. Filing free state returns You can carry over any contributions you are not able to deduct for 2008 because of this limit. Filing free state returns In 2009, the carryover of your unused qualified contributions is subject to the 50% of AGI limit. Filing free state returns Exception. Filing free state returns   Qualified contributions do not include contributions to certain private foundations described in section 509(a)(3) or contributions for the establishment of a new, or maintenance of an existing, donor advised fund. Filing free state returns Corporations. Filing free state returns   A corporation can elect to deduct qualified cash contributions without regard to the 10% of taxable income limit if the contributions were paid after May 1, 2008, and before January 1, 2009, to a qualified charitable organization (other than certain private foundations described in section 509(a)(3) or contributions for the establishment of a new, or maintenance of an existing, donor advised fund), for relief efforts in one or more Midwestern disaster areas. Filing free state returns Documentation must be provided by the donee organization that the contribution was used (or will be used) for relief efforts in one or more Midwestern disaster areas. Filing free state returns The corporation's deduction for these qualified contributions is limited to 100% of taxable income (as modified for the 10% limit) minus the corporation's deduction for all other charitable contributions. Filing free state returns Any qualified contributions over this limit can be carried over to the next 5 years, subject to the 10% of taxable income limit. Filing free state returns Partners and shareholders. Filing free state returns   Each partner in a partnership and each shareholder in an S corporation must make a separate election to have the appropriate limit not apply. Filing free state returns More information. Filing free state returns   For more information, see Publication 526 or Publication 542, Corporations. Filing free state returns Publication 526 includes a worksheet you can use to figure your deduction if any limits apply to your charitable contributions. Filing free state returns Standard Mileage Rate for Charitable Use of Vehicles This benefit applies only to the counties in Table 1. Filing free state returns The following are special standard mileage rates in effect for 2008 for the cost of operating your vehicle for providing charitable services related only to the severe storms, tornadoes, or flooding. Filing free state returns 36 cents per mile for the period beginning on the applicable disaster date through June 30, 2008. Filing free state returns 41 cents per mile for the period July 1 through December 31, 2008. Filing free state returns Mileage Reimbursements to Charitable Volunteers This benefit applies only to the counties in Table 1. Filing free state returns You can exclude from income amounts you receive as mileage reimbursements for the use of a private passenger vehicle for the benefit of a qualified charitable organization in providing relief related to the severe storms, tornadoes, or flooding during the period beginning on the applicable disaster date, and ending on December 31, 2008. Filing free state returns You cannot claim a deduction or credit for amounts you exclude. Filing free state returns You must keep records of miles driven, time, place (or use), and purpose of the mileage. Filing free state returns The amount you can exclude cannot exceed the standard business mileage rate (shown below) for expenses incurred during the following periods. Filing free state returns 50. Filing free state returns 5 cents per mile for the period beginning on the applicable disaster date through June 30, 2008. Filing free state returns 58. Filing free state returns 5 cents per mile for the period July 1 through December 31, 2008. Filing free state returns Casualty and Theft Losses This benefit applies to the counties in both Tables 1 and 2. Filing free state returns The following paragraphs explain changes to casualty and theft losses that were caused by the severe storms, tornadoes, or flooding in the Midwestern disaster areas. Filing free state returns For more information, see Publication 547. Filing free state returns Limits on personal casualty or theft losses. Filing free state returns   Losses of personal use property that arose in a Midwestern disaster area on or after the applicable disaster date are not subject to the $100 or 10% of AGI limits. Filing free state returns Qualifying losses include losses from casualties and thefts that arose in a Midwestern disaster area that were attributable to the severe storms, tornadoes, or flooding. Filing free state returns When completing Form 4684, do not include on line 17 any losses that arose in a Midwestern disaster area. Filing free state returns A loss arising in a Midwestern disaster area is not considered a loss attributable to a federally declared disaster for purposes of that line and cannot be added to your standard deduction. Filing free state returns When to deduct the loss. Filing free state returns   Casualty and theft losses are generally deductible only in the year the casualty occurred or the theft was discovered. Filing free state returns However, you can elect to deduct losses caused by the severe storms, tornadoes, or flooding on your return for the prior year. Filing free state returns Special instructions for individuals who elect to claim a Midwestern disaster area casualty or theft loss for 2007. Filing free state returns   Individuals filing or amending their 2007 tax return for casualty or theft losses that were attributable to the severe storms, tornadoes, or flooding should: Enter “Midwestern Disaster Area” at the top of Form 1040 or Form 1040X, and Complete the 2008 version of Form 4684. Filing free state returns Cross out “2008” and enter “2007” at the top of Form 4684. Filing free state returns Time limit for making election. Filing free state returns   You must make this election to claim your casualty or theft loss in 2007 by the later of the following dates. Filing free state returns The due date (without extensions) for filing your 2008 income tax return. Filing free state returns The due date (with extensions) for filing your 2007 income tax return. Filing free state returns Example. Filing free state returns If you are a calendar year individual taxpayer, you have until April 15, 2009, to amend your 2007 tax return to claim a casualty or theft loss that occurred during 2008. Filing free state returns Replacement Period for Nonrecognition of Gain This benefit applies to the counties in both Tables 1 and 2. Filing free state returns Generally, an involuntary conversion occurs when property is damaged, destroyed, stolen, seized, requisitioned, or condemned, and you receive other property or money in payment, such as insurance or a condemnation award. Filing free state returns Generally, you do not have to report a gain (if any) if you replace the property within 2 years (4 years for a main home in a federally declared disaster area). Filing free state returns However, for property that was involuntarily converted on or after the applicable disaster date, as a result of the severe storms, tornadoes, or flooding, a 5-year replacement period applies if substantially all of the use of the replacement property is in a Midwestern disaster area. Filing free state returns For more information, see the Instructions for Form 4684. Filing free state returns Net Operating Losses This benefit applies only to the counties in Table 1. Filing free state returns Qualified disaster recovery assistance loss. Filing free state returns   Generally, you can carry a net operating loss (NOL) back to the 2 tax years before the NOL year. Filing free state returns However, the portion of an NOL that is a qualified disaster recovery assistance loss can be carried back to the 5 tax years before the NOL year. Filing free state returns In addition, the 90% limit on the alternative tax NOL deduction (ATNOLD) does not apply to such portion of the ATNOLD. Filing free state returns   A qualified disaster recovery assistance loss is the smaller of: The excess of the NOL for the year over the specified liability loss for the year to which a 10-year carryback applies, or The total of the following deductions (to the extent they are taken into account in computing the NOL for the tax year): Qualified disaster recovery assistance casualty loss (as defined below), Moving expenses paid or incurred on or after the applicable disaster date, and before January 1, 2011, for the employment of an individual whose main home was in a Midwestern disaster area before the applicable disaster date, who was unable to remain in that home because of the severe storms, tornadoes, or flooding, and whose main job location (after the move) is in a Midwestern disaster area, Temporary housing expenses paid or incurred on or after the applicable disaster date, and before January 1, 2011, to house employees of the taxpayer whose main job location is in a Midwestern disaster area, Depreciation or amortization allowable for any qualified disaster recovery assistance property (even if you elected not to claim the special disaster recovery assistance depreciation allowance for such property) for the year placed in service, and Repair expenses (including expenses for the removal of debris) paid or incurred on or after the applicable disaster date, and before January 1, 2011, for any damage from the severe storms, tornadoes, or flooding to property located in a Midwestern disaster area. Filing free state returns Qualified disaster recovery assistance casualty loss. Filing free state returns   A qualified disaster recovery assistance casualty loss is any deductible section 1231 loss of property located in a Midwestern disaster area if the loss was caused by the severe storms, tornadoes, or flooding. Filing free state returns For this purpose, the amount of the loss is reduced by any recognized gain from an involuntary conversion caused by the severe storms, tornadoes, or flooding of property located in a Midwestern disaster area. Filing free state returns Any such loss taken into account in figuring your qualified disaster recovery assistance loss is not eligible for the election to be treated as having occurred in the previous tax year. Filing free state returns More information. Filing free state returns   For more information on NOLs, see Publication 536 or Publication 542, Corporations. Filing free state returns IRAs and Other Retirement Plans New rules provide for tax-favored withdrawals, repayments, and loans from certain retirement plans for taxpayers who suffered economic losses as a result of the severe storms, tornadoes, or flooding. Filing free state returns Definitions Qualified disaster recovery assistance distribution. Filing free state returns   A qualified disaster recovery assistance distribution is any distribution you received from an eligible retirement plan if all of the following apply. Filing free state returns The distribution was made on or after the applicable disaster date and before January 1, 2010. Filing free state returns Your main home was located in a Midwestern disaster area on the applicable disaster date. Filing free state returns You sustained an economic loss because of the severe storms, tornadoes, or flooding and your main home was in a Midwestern disaster area on the applicable disaster date. Filing free state returns Examples of an economic loss include, but are not limited to: Loss, damage to, or destruction of real or personal property from fire, flooding, looting, vandalism, theft, wind, or other cause; Loss related to displacement from your home; or Loss of livelihood due to temporary or permanent layoffs. Filing free state returns   If (1) through (3) above apply, you can generally designate any distribution (including periodic payments and required minimum distributions) from an eligible retirement plan as a qualified disaster recovery assistance distribution, regardless of whether the distribution was made on account of the severe storms, tornadoes, or flooding. Filing free state returns Qualified disaster recovery assistance distributions are permitted without regard to your need or the actual amount of your economic loss. Filing free state returns   The total of your qualified disaster recovery assistance distributions from all plans is limited to $100,000. Filing free state returns If you have distributions in excess of $100,000 from more than one type of plan, such as a 401(k) plan and an IRA, you can allocate the $100,000 limit among the plans any way you choose. Filing free state returns   A reduction or offset (on or after the applicable disaster date) of your account balance in an eligible retirement plan in order to repay a loan can also be designated as a qualified disaster recovery assistance distribution. Filing free state returns Eligible retirement plan. Filing free state returns   An eligible retirement plan can be any of the following. Filing free state returns A qualified pension, profit-sharing, or stock bonus plan (including a 401(k) plan). Filing free state returns A qualified annuity plan. Filing free state returns A tax-sheltered annuity contract. Filing free state returns A governmental section 457 deferred compensation plan. Filing free state returns A traditional, SEP, SIMPLE, or Roth IRA. Filing free state returns Main home. Filing free state returns   Generally, your main home is the home where you live most of the time. Filing free state returns A temporary absence due to special circumstances, such as illness, education, business, military service, evacuation, or vacation, will not change your main home. Filing free state returns Taxation of Qualified Disaster Recovery Assistance Distributions This benefit applies to the counties in both Tables 1 and 2. Filing free state returns Qualified disaster recovery assistance distributions are included in income in equal amounts over three years. Filing free state returns However, if you elect, you can include the entire distribution in your income in the year it was received. Filing free state returns Qualified disaster recovery assistance distributions are not subject to the additional 10% tax (or the additional 25% tax for certain distributions from SIMPLE IRAs) on early distributions from qualified retirement plans (including IRAs). Filing free state returns However, any distributions you receive in excess of the $100,000 qualified disaster recovery assistance distribution limit may be subject to the additional tax on early distributions. Filing free state returns For more information, see Form 8930. Filing free state returns Repayment of Qualified Disaster Recovery Assistance Distributions This benefit applies to the counties in both Tables 1 and 2. Filing free state returns If you choose, you generally can repay any portion of a qualified disaster recovery assistance distribution that is eligible for tax-free rollover treatment to an eligible retirement plan. Filing free state returns Also, you can repay a qualified disaster recovery assistance distribution made on account of a hardship from a retirement plan. Filing free state returns However, see Exceptions later for qualified disaster recovery assistance distributions you cannot repay. Filing free state returns You have three years from the day after the date you received the distribution to make a repayment. Filing free state returns Amounts that are repaid are treated as a qualified rollover and are not included in income. Filing free state returns Also, a repayment of a qualified disaster recovery assistance distribution to an IRA is not counted when figuring the one-rollover-per-year limitation. Filing free state returns See Form 8930 for more information on how to report repayments. Filing free state returns Exceptions. Filing free state returns   You cannot repay the following types of distributions. Filing free state returns Qualified disaster recovery assistance distributions received as a beneficiary (other than a surviving spouse). Filing free state returns Required minimum distributions. Filing free state returns Periodic payments (other than from an IRA) that are for: A period of 10 years or more, Your life or life expectancy, or The joint lives or joint life expectancies of you and your beneficiary. Filing free state returns Repayment of Qualified Distributions for the Purchase or Construction of a Main Home This benefit applies to the counties in both Tables 1 and 2. Filing free state returns If you received a qualified distribution to purchase or construct a main home in a Midwestern disaster area, you can repay part or all of that distribution on or after the applicable disaster date, but no later than March 3, 2009, to an eligible retirement plan. Filing free state returns For this purpose, an eligible retirement plan is any plan, annuity, or IRA to which a qualified rollover can be made. Filing free state returns To be a qualified distribution, the distribution must meet all of the following requirements. Filing free state returns The distribution is a hardship distribution from a 401(k) plan, a hardship distribution from a tax-sheltered annuity contract, or a qualified first-time homebuyer distribution from an IRA. Filing free state returns The distribution was received after the date that was 6 months before the day after the applicable disaster date. Filing free state returns The distribution was to be used to purchase or construct a main home in a Midwestern disaster area that was not purchased or constructed because of the severe storms, tornadoes, or flooding. Filing free state returns Amounts that are repaid before March 4, 2009, are treated as a qualified rollover and are not included in income. Filing free state returns Also, a repayment of a qualified distribution to an IRA is not counted when figuring the one-rollover-per-year limitation. Filing free state returns A qualified distribution not repaid before March 4, 2009, may be taxable for 2007 or 2008 and subject to the additional 10% tax (or the additional 25% tax for certain SIMPLE IRAs) on early distributions. Filing free state returns You must file Form 8930 if you received a qualified distribution that you repaid, in whole or in part, before March 4, 2009. Filing free state returns Loans From Qualified Plans This benefit applies to the counties in both Tables 1 and 2. Filing free state returns The following benefits are available to qualified individuals. Filing free state returns Increases to the limits for distributions treated as loans from employer plans. Filing free state returns A 1-year suspension for payments due on plan loans. Filing free state returns Qualified individual. Filing free state returns   You are a qualified individual if your main home was located in a Midwestern disaster area on the applicable disaster date and you had an economic loss because of the severe storms, tornadoes, or flooding. Filing free state returns Examples of an economic loss include, but are not limited to: Loss, damage to, or destruction of real or personal property from fire, flooding, looting, vandalism, theft, wind, or other cause; Loss related to displacement from your home; or Loss of livelihood due to temporary or permanent layoffs. Filing free state returns Limits on plan loans. Filing free state returns   The $50,000 limit for distributions treated as plan loans is increased to $100,000. Filing free state returns In addition, the limit based on 50% of your vested accrued benefit is increased to 100% of that benefit. Filing free state returns If your main home was located in a Midwestern disaster area, the higher limits apply only to loans received during the period beginning on October 3, 2008, and ending on December 31, 2009. Filing free state returns One-year suspension of loan payments. Filing free state returns   Payments on plan loans outstanding on or after the applicable disaster date, may be suspended for 1 year by the plan administrator. Filing free state returns To qualify for the suspension, the due date for any loan payment must occur during the period beginning on the applicable disaster date and ending on December 31, 2009. Filing free state returns Additional Tax Relief for Individuals Earned Income Credit and Child Tax Credit This benefit applies to the counties in both Tables 1 and 2. Filing free state returns You can elect to use your 2007 earned income to figure your earned income credit (EIC) and additional child tax credit for 2008 if: Your 2008 earned income is less than your 2007 earned income, and At least one of the following statements is true. Filing free state returns Your main home on the applicable disaster date was in a Midwestern disaster area as shown in Table 1. Filing free state returns Your main home on the applicable disaster date was in a Midwestern disaster area as shown in Table 2, and you were displaced from that home because of the severe storms, tornadoes, or flooding. Filing free state returns Earned income. Filing free state returns    For the purpose of this election, your earned income for both the EIC and the additional child tax credit is the amount of earned income used to figure your EIC, even if you did not take the EIC and even if that amount is different than your earned income for the additional child tax credit. Filing free state returns If you are claiming only the additional child tax credit, you must figure the amount of your earned income for EIC purposes to determine your eligibility to make the election and the amount of the credit. Filing free state returns Joint returns. Filing free state returns   If you file a joint return, you qualify to make this election even if only one spouse meets the requirements. Filing free state returns If you make the election, your 2007 earned income is the sum of your 2007 earned income and your spouse's 2007 earned income. Filing free state returns Making the election. Filing free state returns   If you make the election to use your 2007 earned income, the election applies for figuring both the EIC and the additional child tax credit. Filing free state returns However, you can make the election for the additional child tax credit even if you do not take the EIC. Filing free state returns   Electing to use your 2007 earned income can increase or decrease your EIC. Filing free state returns Take the following steps to decide whether to make the election. Filing free state returns Figure your 2008 EIC using your 2007 earned income. Filing free state returns Figure your 2008 additional child tax credit using your 2007 earned income for EIC purposes. Filing free state returns Add the results of (1) and (2). Filing free state returns Figure your 2008 EIC using your 2008 earned income. Filing free state returns Figure your 2008 additional child tax credit using your 2008 earned income for additional child tax credit purposes. Filing free state returns Add the results of (4) and (5). Filing free state returns Compare the results of (3) and (6). Filing free state returns If (3) is larger than (6), it is to your benefit to make the election. Filing free state returns If (3) is equal to or smaller than (6), making the election will not help you. Filing free state returns   If you elect to use your 2007 earned income and you are claiming the EIC, enter “PYEI” and the amount of your 2007 earned income on the dotted line next to line 64a of Form 1040, on the line next to line 40a of Form 1040A, or in the space to the left of line 8a of Form 1040EZ. Filing free state returns   If you elect to use your 2007 earned income and you are claiming the additional child tax credit, enter your 2007 earned income for EIC purposes (even if you did not claim the EIC) on Form 8812, Additional Child Tax Credit, line 4a, and check the box on that line. Filing free state returns Getting your 2007 tax return information. Filing free state returns   If you do not have your 2007 tax records, you can get the amount of earned income used to figure your 2007 EIC by calling 1-866-562-5227. Filing free state returns You can also get this information by visiting the IRS website at www. Filing free state returns irs. Filing free state returns gov. Filing free state returns   If you prefer to figure your 2007 earned income yourself, copies or transcripts of your filed and processed tax returns can help you reconstruct your tax records. Filing free state returns See Request for Copy or Transcript of Tax Return on page 11. Filing free state returns Additional Exemption for Housing Individuals Displaced by the Severe Storms, Tornadoes, or Flooding This benefit applies to the counties in both Tables 1 and 2. Filing free state returns You can claim an additional exemption amount of $500 for providing housing in your main home for each individual displaced by the severe storms, tornadoes, or flooding. Filing free state returns The additional exemption amount is claimed on Form 8914. Filing free state returns You can claim an additional exemption amount only one time for a specific individual. Filing free state returns If you claimed an additional exemption amount for an individual in 2008, you cannot claim that amount again for the same individual in 2009. Filing free state returns The maximum additional exemption amount you can claim for all displaced individuals is $2,000. Filing free state returns Any additional exemption amount you claimed for displaced individuals in 2008 will reduce the $2,000 maximum for 2009. Filing free state returns The $2,000 limit applies to a husband and wife, whether the husband and wife file joint returns or separate returns. Filing free state returns If married filing separately, the $2,000 can be divided in $500 increments between the spouses. Filing free state returns For example, if one spouse claims an additional exemption amount for one displaced individual, the other spouse, if otherwise eligible, can claim additional exemption amounts for three different displaced individuals. Filing free state returns If two or more taxpayers share the same main home, only one taxpayer in that main home can claim the additional exemption amount for a specific displaced individual. Filing free state returns In order for you to be considered to have provided housing, you must have a legal interest in the main home (that is, own or rent the home). Filing free state returns To qualify as a displaced individual, the individual: Must have had his or her main home in a Midwestern disaster area on the applicable disaster date, and he or she must have been displaced from that home. Filing free state returns If the individual's main home was located in a Midwestern disaster area as shown in Table 2, that home must have been damaged by the severe storms, tornadoes, or flooding or the individual must have been evacuated from that home because of the severe storms, tornadoes, or flooding, Must have been provided housing in your main home for a period of at least 60 consecutive days ending in the tax year in which the exemption is claimed, and Cannot be your spouse or dependent. Filing free state returns You cannot claim the additional exemption amount if you received rent (or any other amount) from any source for providing the housing. Filing free state returns You are permitted to receive payments or reimbursements that do not relate to normal housing costs, including the following. Filing free state returns Food, clothing, or personal items consumed or used by the displaced individual. Filing free state returns Reimbursement for the cost of any long distance telephone calls made by the displaced individual. Filing free state returns Reimbursement for the cost of gasoline for the displaced individual's use of your vehicle. Filing free state returns However, you cannot claim the additional exemption amount if you received any reimbursement for the extra costs of heat, electricity, or water used by the displaced individual. Filing free state returns Also, you must report on Form 8914 the displaced individual's social security number or individual taxpayer identification number to claim an additional exemption amount. Filing free state returns For more information, see Form 8914. Filing free state returns Education Credits This benefit applies only to the counties in Table 1. Filing free state returns The education credits have been expanded for students attending an eligible educational institution located in a Midwestern disaster area (Midwestern disaster area students) for any tax year beginning in 2008 or 2009. Filing free state returns The Hope credit for a Midwestern disaster area student is increased to 100% of the first $2,400 in qualified education expenses and 50% of the next $2,400 of qualified education expenses for a maximum credit of $3,600 per student. Filing free state returns The lifetime learning credit rate for a Midwestern disaster area student is increased from 20% to 40%. Filing free state returns The definition of qualified education expenses for a Midwestern disaster area student also has been expanded. Filing free state returns This expanded definition also applies to the tuition and fees deduction claimed on Form 8917. Filing free state returns In addition to tuition and fees required for the student's enrollment or attendance at an eligible educational institution, qualified education expenses for a Midwestern disaster area student include the following. Filing free state returns Books, supplies, and equipment required for enrollment or attendance at an eligible educational institution. Filing free state returns For a special needs student, expenses that are necessary for that person's enrollment or attendance at an eligible educational institution. Filing free state returns For a student who is at least a half-time student, the reasonable costs of room and board, but only to the extent that the costs are not more than the greater of the following two amounts. Filing free state returns The allowance for room and board, as determined by the eligible educational institution, that was included in the cost of attendance (for federal financial aid purposes) for a particular academic period and living arrangement of the student. Filing free state returns The actual amount charged if the student is residing in housing owned or operated by the eligible educational institution. Filing free state returns You will need to contact the eligible educational institution for qualified room and board costs. Filing free state returns For more information, see Form 8863. Filing free state returns See Form 8917 for the tuition and fees deduction. Filing free state returns Recapture of Federal Mortgage Subsidy This benefit applies only to the counties in Table 1. Filing free state returns Generally, if you financed your home under a federally subsidized program (loans from tax-exempt qualified mortgage bonds or loans with mortgage credit certificates), you may have to recapture all or part of the benefit you received from that program when you sell or otherwise dispose of your home. Filing free state returns However, you do not have to recapture any benefit if your mortgage loan was a qualified home improvement loan of not more than $15,000. Filing free state returns This amount is increased to $150,000 if the loan was provided before 2011 and was used to alter, repair, or improve an existing owner-occupied residence in a Midwestern disaster area as shown in Table 1. Filing free state returns Exclusion of Certain Cancellations of Indebtedness by Reason of the Severe Storms, Tornadoes, or Flooding This benefit applies to the counties in both Tables 1 and 2. Filing free state returns Generally, discharges of nonbusiness debts (such as mortgages) made on or after the applicable disaster date and before January 1, 2010, are excluded from income for individuals whose main home was in a Midwestern disaster area on the applicable disaster date. Filing free state returns If the individual's main home was located in a Midwestern disaster area as shown in Table 2, the individual also must have had an economic loss because of the severe storms, tornadoes, or flooding. Filing free state returns Examples of an economic loss include, but are not limited to: Loss, damage to, or destruction of real or personal property from fire, flooding, looting, vandalism, theft, wind, or other cause; Loss related to displacement from your home; or Loss of livelihood due to temporary or permanent layoffs. Filing free state returns This relief does not apply to any debt secured by real property located outside a Midwestern disaster area. Filing free state returns You may also have to reduce certain tax attributes by the amount excluded. Filing free state returns For more information, see Form 982, Reduction of Tax Attributes Due to Discharge of Indebtedness (and Section 1082 Basis Adjustment). Filing free state returns Tax Relief for Temporary Relocation This benefit applies only to the counties in Table 1. Filing free state returns The IRS can adjust the internal revenue laws to ensure that taxpayers do not lose a deduction or credit or experience a change of filing status in 2008 or 2009 as a result of a temporary relocation caused by the severe storms, tornadoes, or flooding. Filing free state returns However, any such adjustment must ensure that an individual is not taken into account by more than one taxpayer for the same tax benefit. Filing free state returns The IRS has exercised this authority as follows. Filing free state returns In determining whether you furnished over one-half of the cost of maintaining a household, you can exclude from total household costs any assistance received from the government or charitable organizations because you were temporarily relocated as a result of the severe storms, tornadoes, or flooding. Filing free state returns In determining whether you provided more than one-half of an individual's support, you can disregard any assistance received from the government or charitable organizations because you were temporarily relocated as a result of the severe storms, tornadoes, or flooding. Filing free state returns You can treat as a student an individual who enrolled in school before the applicable disaster date, and who is unable to attend classes because of the severe storms, tornadoes, or flooding, for each month of the enrollment period that individual is prevented by the severe storms, tornadoes, or flooding from attending school as planned. Filing free state returns Additional Tax Relief for Businesses Employee Retention Credit This benefit applies only to the counties in Table 1. Filing free state returns An eligible employer who conducted an active trade or business in a Midwestern disaster area can claim the employee retention credit. Filing free state returns The credit is 40% of qualified wages for each eligible employee (up to a maximum of $6,000 in qualified wages per employee). Filing free state returns Generally, you must reduce your deduction for salaries and wages by the amount of this credit (before the tax liability limit). Filing free state returns Use Form 5884-A to claim the credit. Filing free state returns Employers affected by the severe storms, tornadoes, or flooding. Filing free state returns   The following definitions apply to employers affected by the severe storms, tornadoes, or flooding. Filing free state returns Eligible employer. Filing free state returns   For this purpose, an eligible employer is any employer who meets all of the following. Filing free state returns Employed an average of not more than 200 employees on business days during the tax year before the applicable disaster date. Filing free state returns Conducted an active trade or business on the applicable disaster date in a Midwestern disaster area. Filing free state returns Whose trade or business was inoperable on any day after the applicable disaster date and before January 1, 2009, because of the damage caused by the severe storms, tornadoes, or flooding. Filing free state returns Eligible employee. Filing free state returns   For this purpose, an eligible employee is an employee whose principal place of employment on the applicable disaster date with such eligible employer was in a Midwestern disaster area. Filing free state returns An employee is not an eligible employee for purposes of the severe storms, tornadoes, or flooding if the employee is treated as an eligible employee for the work opportunity credit. Filing free state returns Qualified wages. Filing free state returns   Qualified wages are wages (up to $6,000 per employee) you paid or incurred before January 1, 2009, for an eligible employee beginning on the date your trade or business first became inoperable at the employee's principal place of employment immediately before the applicable disaster, and ending on the date your trade or business resumed significant operations at that place. Filing free state returns In addition, the wages must have been paid or incurred after the applicable disaster date. Filing free state returns    This includes wages paid even if the employee performed no services, performed services at a place of employment other than the principal place of employment, or performed services at the principal place of employment before significant operations resumed. Filing free state returns    Wages qualifying for the credit generally have the same meaning as wages subject to the Federal Unemployment Tax Act (FUTA). Filing free state returns Qualified wages also include amounts you paid for medical or hospitalization expenses in connection with sickness or accident disability. Filing free state returns Qualified wages for any employee must be reduced by the amount of any work supplementation payment you received under the Social Security Act. Filing free state returns   For agricultural employees, if the work performed by any employee during more than half of any pay period qualified under FUTA as agricultural labor, that employee's wages subject to social security and Medicare taxes are qualified wages. Filing free state returns For a special rule that applies to railroad employees, see section 51(h)(1)(B). Filing free state returns   Qualified wages do not include the following. Filing free state returns Wages paid to your dependent or a related individual. Filing free state returns See section 51(i)(1). Filing free state returns Wages paid to any employee during the period for which you received payment for the employee from a federally funded on-the-job training program. Filing free state returns Wages for services of replacement workers during a strike or lockout. Filing free state returns   For more information, see Form 5884-A. Filing free state returns Employer Housing Credit and Exclusion This benefit applies only to the counties in Table 1. Filing free state returns An employer who conducted an active trade or business in a Midwestern disaster area can claim the employer housing credit. Filing free state returns The credit is equal to 30% of the value (up to $600 per month per employee) of in-kind lodging furnished to a qualified employee (and the employee's spouse or dependents) from November 1, 2008, through May 1, 2009. Filing free state returns The value of the lodging is excluded from the income of the qualified employee but is treated as wages for purposes of taxes imposed under the Federal Insurance Contributions Act (FICA) and the Federal Unemployment Tax Act (FUTA). Filing free state returns Generally, you must reduce your deduction for salaries and wages by the amount of this credit (before the tax liability limit). Filing free state returns The employer must use Form 5884-A to claim the credit. Filing free state returns A qualified employee is an individual who had a main home in a Midwestern disaster area on the applicable disaster date, and who performs substantially all employment services in a Midwestern disaster area for the employer furnishing the lodging. Filing free state returns The employee cannot be your dependent or a related individual. Filing free state returns See section 51(i)(1). Filing free state returns For more information, see Form 5884-A. Filing free state returns Demolition and Clean-up Costs This benefit applies only to the counties in Table 1. Filing free state returns You can elect to deduct 50% of any qualified disaster recovery assistance clean-up costs for the tax year in which the costs are paid or incurred, instead of capitalizing them. Filing free state returns Qualified disaster recovery assistance clean-up costs are any amounts paid or incurred on or after the applicable disaster date, and before January 1, 2011, for the removal of debris from, or the demolition of structures on, real property located in a Midwestern disaster area that is: Held by you for use in a trade or business or for the production of income, or Inventory or other property held primarily for sale to customers in the ordinary course of your trade or business. Filing free state returns Qualified disaster recovery assistance clean-up costs are limited to amounts necessary due to damage attributable to the severe storms, tornadoes, or flooding in the Midwestern disaster areas. Filing free state returns Increase in Rehabilitation Tax Credit This benefit applies only to the counties in Table 1. Filing free state returns The rehabilitation credit is increased for qualified rehabilitation expenditures paid or incurred on or after the applicable disaster date, and before January 1, 2012, on buildings located in a Midwestern disaster area as follows. Filing free state returns For pre-1936 buildings (other than certified historic structures), the credit percentage is increased from 10% to 13%. Filing free state returns For certified historic structures, the credit percentage is increased from 20% to 26%. Filing free state returns For more information, see Form 3468, Investment Credit. Filing free state returns Request for Copy or Transcript of Tax Return Request for copy of tax return. Filing free state returns   You can use Form 4506 to order a copy of your tax return. Filing free state returns Generally, there is a $57 fee for requesting each copy of a tax return. Filing free state returns If your main home, principal place of business, or tax records are located in a Midwestern disaster area, the fee will be waived if “Midwestern Disaster Area” is written in red across the top of the form when filed. Filing free state returns Request for transcript of tax return. Filing free state returns   You can use Form 4506-T to order a free transcript of your tax return. Filing free state returns A transcript provides most of the line entries from a tax return and usually contains the information that a third party requires. Filing free state returns You can also call 1-800-829-1040 to order a transcript. Filing free state returns How To Get Tax Help Special IRS assistance. Filing free state returns   The IRS is providing special help for those affected by the severe storms, tornadoes, or flooding, as well as survivors and personal representatives of the victims. Filing free state returns We have set up a special toll-free number for people who may have trouble filing or paying their taxes because they were affected by recent federally declared disasters, or who have other tax issues related to the severe storms, tornadoes, or flooding. Filing free state returns Call 1-866-562-5227 Monday through FridayIn English–7 a. Filing free state returns m. Filing free state returns to 10 p. Filing free state returns m. Filing free state returns local timeIn Spanish–8 a. Filing free state returns m. Filing free state returns to 9:30 p. Filing free state returns m. Filing free state returns local time   The IRS website at www. Filing free state returns irs. Filing free state returns gov has notices and other tax relief information. Filing free state returns Check it periodically for any new guidance. Filing free state returns 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. Filing free state returns By selecting the method that is best for you, you will have quick and easy access to tax help. Filing free state returns Contacting your Taxpayer Advocate. Filing free state returns   The Taxpayer Advocate Service (TAS) is an independent organization within the IRS whose employees assist taxpayers who are experiencing economic harm, who are seeking help in resolving tax problems that have not been resolved through normal channels, or who believe that an IRS system or procedure is not working as it should. Filing free state returns Here are seven things every taxpayer should know about TAS: TAS is your voice at the IRS. Filing free state returns Our service is free, confidential, and tailored to meet your needs. Filing free state returns You may be eligible for TAS help if you have tried to resolve your tax problem through normal IRS channels and have gotten nowhere, or you believe an IRS procedure just isn't working as it should. Filing free state returns TAS helps taxpayers whose problems are causing financial difficulty or significant cost, including the cost of professional representation. Filing free state returns This includes businesses as well as individuals. Filing free state returns TAS employees know the IRS and how to navigate it. Filing free state returns We will listen to your problem, help you understand what needs to be done to resolve it, and stay with you every step of the way until your problem is resolved. Filing free state returns TAS has at least one local taxpayer advocate in every state, the District of Columbia, and Puerto Rico. Filing free state returns You can call your local advocate, whose number is in your phone book, in Pub. Filing free state returns 1546, Taxpayer Advocate Service—Your Voice at the IRS, and on our website at www. Filing free state returns irs. Filing free state returns gov/advocate. Filing free state returns You can also call our toll-free line at 1-877-777-4778 or TTY/TDD 1-800-829-4059. Filing free state returns You can learn about your rights and responsibilities as a taxpayer by visiting our online tax toolkit at www. Filing free state returns taxtoolkit. Filing free state returns irs. Filing free state returns gov. Filing free state returns Low Income Taxpayer Clinics (LITCs). Filing free state returns   The Low Income Taxpayer Clinic program serves individuals who have a problem with the IRS and whose income is below a certain level. Filing free state returns LITCs are independent from the IRS. Filing free state returns Most LITCs can provide representation before the IRS or in court on audits, tax collection disputes, and other issues for free or a small fee. Filing free state returns If an individual's native language is not English, some clinics can provide multilingual information about taxpayer rights and responsibilities. Filing free state returns For more information, see Publication 4134, Low Income Taxpayer Clinic List. Filing free state returns This publication is available at www. Filing free state returns irs. Filing free state returns gov, by calling 1-800-TAX-FORM (1-800-829-3676), or at your local IRS office. Filing free state returns Free tax services. Filing free state returns   To find out what services are available, get Publication 910, IRS Guide to Free Tax Services. Filing free state returns It contains lists of free tax information sources, including publications, services, and free tax education and assistance programs. Filing free state returns It also has an index of over 100 TeleTax topics (recorded tax information) you can listen to on your telephone. Filing free state returns   Accessible versions of IRS published products are available on request in a variety of alternative formats for people with disabilities. Filing free state returns Free help with your return. Filing free state returns   Free help in preparing your return is available nationwide from IRS-trained volunteers. Filing free state returns The Volunteer Income Tax Assistance (VITA) program is designed to help low-income taxpayers and the Tax Counseling for the Elderly (TCE) program is designed to assist taxpayers age 60 and older with their tax returns. Filing free state returns Many VITA sites offer free electronic filing and all volunteers will let you know about credits and deductions you may be entitled to claim. Filing free state returns To find the nearest VITA or TCE site, call 1-800-829-1040. Filing free state returns   As part of the TCE program, AARP offers the Tax-Aide counseling program. Filing free state returns To find the nearest AARP Tax-Aide site, call 1-888-227-7669 or visit AARP's website atwww. Filing free state returns aarp. Filing free state returns org/money/taxaide. Filing free state returns   For more information on these programs, go to www. Filing free state returns irs. Filing free state returns gov and enter keyword “VITA” in the upper right-hand corner. Filing free state returns Internet. Filing free state returns You can access the IRS website at www. Filing free state returns irs. Filing free state returns gov 24 hours a day, 7 days a week to: E-file your return. Filing free state returns Find out about commercial tax preparation and e-file services available free to eligible taxpayers. Filing free state returns Check the status of your 2009 refund. Filing free state returns Go to www. Filing free state returns irs. Filing free state returns gov and click on Where's My Refund. Filing free state returns Wait at least 72 hours after the IRS acknowledges receipt of your e-filed return, or 3 to 4 weeks after mailing a paper return. Filing free state returns If you filed Form 8379 with your return, wait 14 weeks (11 weeks if you filed electronically). Filing free state returns Have your 2009 tax return available so you can provide your social security number, your filing status, and the exact whole dollar amount of your refund. Filing free state returns Download forms, instructions, and publications. Filing free state returns Order IRS products online. Filing free state returns Research your tax questions online. Filing free state returns Search publications online by topic or keyword. Filing free state returns Use the online Internal Revenue Code, Regulations, or other official guidance. Filing free state returns View Internal Revenue Bulletins (IRBs) published in the last few years. Filing free state returns Figure your withholding allowances using the withholding calculator online at www. Filing free state returns irs. Filing free state returns gov/individuals. Filing free state returns Determine if Form 6251 must be filed by using our Alternative Minimum Tax (AMT) Assistant. Filing free state returns Sign up to receive local and national tax news by email. Filing free state returns Get information on starting and operating a small business. Filing free state returns Phone. Filing free state returns Many services are available by phone. Filing free state returns Ordering forms, instructions, and publications. Filing free state returns Call 1-800-TAX FORM (1-800-829-3676) to order current-year forms, instructions, and publications, and prior-year forms and instructions. Filing free state returns You should receive your order within 10 days. Filing free state returns Asking tax questions. Filing free state returns Call the IRS with your tax questions at 1-800-829-1040. Filing free state returns Solving problems. Filing free state returns You can get face-to-face help solving tax problems every business day in IRS Taxpayer Assistance Centers. Filing free state returns An employee can explain IRS letters, request adjustments to your account, or help you set up a payment plan. Filing free state returns Call your local Taxpayer Assistance Center for an appointment. Filing free state returns To find the number, go to www. Filing free state returns irs. Filing free state returns gov/localcontacts or look in the phone book under United States Government, Internal Revenue Service. Filing free state returns TTY/TDD equipment. Filing free state returns If you have access to TTY/TDD equipment, call 1-800-829-4059 to ask tax questions or to order forms and publications. Filing free state returns TeleTax topics. Filing free state returns Call 1-800-829-4477 to listen to pre-recorded messages covering various tax topics. Filing free state returns Refund information. Filing free state returns To check the status of your 2009 refund, call 1-800-829-1954 during business hours or 1-800-829-4477 (automated refund information 24 hours a day, 7 days a week). Filing free state returns Wait at least 72 hours after the IRS acknowledges receipt of your e-filed return, or 3 to 4 weeks after mailing a paper return. Filing free state returns If you filed Form 8379 with your return, wait 14 weeks (11 weeks if you filed electronically). Filing free state returns Have your 2009 tax return available so you can provide your social security number, your filing status, and the exact whole dollar amount of your refund. Filing free state returns Refunds are sent out weekly on Fridays. Filing free state returns If you check the status of your refund and are not given the date it will be issued, please wait until the next week before checking back. Filing free state returns Other refund information. Filing free state returns To check the status of a prior year refund or amended return refund, call 1-800-829-1954. Filing free state returns Evaluating the quality of our telephone services. Filing free state returns To ensure IRS representatives give accurate, courteous, and professional answers, we use several methods to evaluate the quality of our telephone services. Filing free state returns One method is for a second IRS representative to listen in on or record random telephone calls. Filing free state returns Another is to ask some callers to complete a short survey at the end of the call. Filing free state returns Walk-in. Filing free state returns Many products and services are available on a walk-in basis. Filing free state returns Products. Filing free state returns You can walk in to many post offices, libraries, and IRS offices to pick up certain forms, instructions, and publications. Filing free state returns 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 or photocopy from reproducible proofs. Filing free state returns Also, some IRS offices and libraries have the Internal Revenue Code, regulations, Internal Revenue Bulletins, and Cumulative Bulletins available for research purposes. Filing free state returns Services. Filing free state returns You can walk in to your local Taxpayer Assistance Center every business day for personal, face-to-face tax help. Filing free state returns An employee can explain IRS letters, request adjustments to your tax account, or help you set up a payment plan. Filing free state returns If you need to resolve a tax problem, have questions about how the tax law applies to your individual tax return, or you are 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. Filing free state returns No appointment is necessary—just walk in. Filing free state returns If you prefer, you can call your local Center and leave a message requesting an appointment to resolve a tax account issue. Filing free state returns A representative will call you back within 2 business days to schedule an in-person appointment at your convenience. Filing free state returns If you have an ongoing, complex tax account problem or a special need, such as a disability, an appointment can be requested. Filing free state returns All other issues will be handled without an appointment. Filing free state returns To find the number of your local office, go to www. Filing free state returns irs. Filing free state returns gov/localcontacts or look in the phone book under United States Government, Internal Revenue Service. Filing free state returns Mail. Filing free state returns You can send your order for forms, instructions, and publications to the address below. Filing free state returns You should receive a response within 10 days after your request is received. Filing free state returns Internal Revenue Service1201 N. Filing free state returns Mitsubishi MotorwayBloomington, IL 61705-6613 DVD for tax products. Filing free state returns You can order Publication 1796, IRS Tax Products DVD, and obtain: Current-year forms, instructions, and publications. Filing free state returns Prior-year forms, instructions, and publications. Filing free state returns Tax Map: an electronic research tool and finding aid. Filing free state returns Tax law frequently asked questions. Filing free state returns Tax Topics from the IRS telephone response system. Filing free state returns Internal Revenue Code—Title 26 of the U. Filing free state returns S. Filing free state returns Code. Filing free state returns Fill-in, print, and save features for most tax forms. Filing free state returns Internal Revenue Bulletins. Filing free state returns Toll-free and email technical support. Filing free state returns Two releases during the year. Filing free state returns – The first release will ship the beginning of January 2010. Filing free state returns – The final release will ship the beginning of March 2010. Filing free state returns Purchase the DVD from National Technical Information Service (NTIS) at www. Filing free state returns irs. Filing free state returns gov/cdorders for $30 (no handling fee) or call 1-877-233-6767 toll free to buy the DVD for $30 (plus a $6 handling fee). Filing free state returns Prev  Up  Next   Home   More Online Publications