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

How To Amend 2010 Tax Return Online

Aarp Tax Help LocationsHow To File Amended Tax Return 2012How To File 2011 Taxes Late Online1040esHow To Amend Taxes10 40 Ez Form 20121040ez 2012E File Income Tax ReturnFiling 2011 Taxes For FreeFree Efile2008 Amended Tax ReturnWww Onlinetaxes H&rblock ComWww Freetaxusa ComFree Tax ServicesH&rblock Com2011 1040 FormFederal Tax Forms 1040ezCan I File My State Taxes Online For Free1040x 2012 Tax FormAmended Federal Tax Return 2011Amend Turbotax ReturnFile 1040nr OnlineTaxact 1040nrHow To File State Taxes Online FreeEz Form 2010Irs 2011 Taxes Online1040zFree State Income Tax EfileTax Credit For MilitaryEz Tax Form 20122012 Form 1040ezFree File 2011 Taxes OnlineRi 1040nrCan I Still File 2012 Taxes OnlineIrs Gov Form 1040How Do I File An Amended Tax Return For 20112012 Tax Form 1040x2012 Form 1040ezState Tax Return 2013Free H&r Block Efile

How To Amend 2010 Tax Return Online

How to amend 2010 tax return online 2. How to amend 2010 tax return online   Possession Source Income Table of Contents Types of IncomeCompensation for Labor or Personal Services Investment Income Sales or Other Dispositions of Property Scholarships, Fellowships, Grants, Prizes, and Awards Effectively Connected Income In order to determine where to file your return and which form(s) you need to complete, you must determine the source of each item of income you received during the tax year. How to amend 2010 tax return online Income you received from sources within, or that was effectively connected with the conduct of a trade or business within, the relevant possession must be identified separately from U. How to amend 2010 tax return online S. How to amend 2010 tax return online or foreign source income. How to amend 2010 tax return online This chapter discusses the rules for determining if the source of your income is from: American Samoa, The Commonwealth of the Northern Mariana Islands (CNMI), The Commonwealth of Puerto Rico (Puerto Rico), Guam, or The U. How to amend 2010 tax return online S. How to amend 2010 tax return online Virgin Islands (USVI). How to amend 2010 tax return online Generally, the same rules that apply for determining U. How to amend 2010 tax return online S. How to amend 2010 tax return online source income also apply for determining possession source income. How to amend 2010 tax return online However, there are some important exceptions to these rules. How to amend 2010 tax return online Both the general rules and the exceptions are discussed in this chapter. How to amend 2010 tax return online U. How to amend 2010 tax return online S. How to amend 2010 tax return online income rule. How to amend 2010 tax return online   This rule states that income is not possession source income if, under the rules of Internal Revenue Code sections 861–865, it is treated as income: From sources within the United States, or Effectively connected with the conduct of a trade or business within the United States. How to amend 2010 tax return online Table 2-1 shows the general rules for determining whether income is from sources within the United States. How to amend 2010 tax return online Table 2-1. How to amend 2010 tax return online General Rules for Determining U. How to amend 2010 tax return online S. How to amend 2010 tax return online Source of Income Item of Income Factor Determining Source Salaries, wages, and other compensation for labor or personal services Where labor or services performed Pensions Contributions: Where services were performed that earned the pension Investment earnings: Where pension trust is located Interest Residence of payer Dividends Where corporation created or organized Rents Location of property Royalties:   Natural resources Location of property Patents, copyrights, etc. How to amend 2010 tax return online Where property is used Sale of business inventory—purchased Where sold Sale of business inventory—produced Allocation if produced and sold in different locations Sale of real property Location of property Sale of personal property Seller's tax home (but see Special Rules for Gains From Dispositions of Certain Property , later, for exceptions) Sale of natural resources Allocation based on fair market value of product at export terminal. How to amend 2010 tax return online For more information, see Regulations section 1. How to amend 2010 tax return online 863-1(b). How to amend 2010 tax return online Types of Income This section looks at the most common types of income received by individuals, and the rules for determining the source of the income. How to amend 2010 tax return online Generally, the same rules shown in Table 2-1 are used to determine if you have possession source income. How to amend 2010 tax return online Compensation for Labor or Personal Services Income from labor or personal services includes wages, salaries, commissions, fees, per diem allowances, employee allowances and bonuses, and fringe benefits. How to amend 2010 tax return online It also includes income earned by sole proprietors and general partners from providing personal services in the course of their trade or business. How to amend 2010 tax return online Services performed wholly within a relevant possession. How to amend 2010 tax return online   Generally, all pay you receive for services performed in a relevant possession is considered to be from sources within that possession. How to amend 2010 tax return online However, there is an exception for income earned as a member of the U. How to amend 2010 tax return online S. How to amend 2010 tax return online Armed Forces or a civilian spouse. How to amend 2010 tax return online U. How to amend 2010 tax return online S. How to amend 2010 tax return online Armed Forces. How to amend 2010 tax return online   If you are a bona fide resident of a relevant possession, your military service pay will be sourced in that possession even if you perform the services in the United States or another possession. How to amend 2010 tax return online However, if you are not a bona fide resident of a possession, your military service pay will be income from the  United States even if you perform services in a possession. How to amend 2010 tax return online Civilian spouse of active duty member of the U. How to amend 2010 tax return online S. How to amend 2010 tax return online Armed Forces. How to amend 2010 tax return online   If you are a bona fide resident of a U. How to amend 2010 tax return online S. How to amend 2010 tax return online possession and choose to keep that possession as your tax residence under MSRRA when relocating with your servicemember spouse under military orders, the source of income for your labor or personal services is considered to be that possession. How to amend 2010 tax return online Likewise, if your tax residence is in one of the 50 states or the District of Columbia before relocating and you choose to keep it as your tax residence, the source of income for services performed in any of the U. How to amend 2010 tax return online S. How to amend 2010 tax return online possessions is considered to be the United States and, specifically, your state of residence or the District of Columbia. How to amend 2010 tax return online Services performed partly inside and partly outside a relevant possession. How to amend 2010 tax return online   If you are an employee and receive compensation for labor or personal services performed both inside and outside the relevant possession, special rules apply in determining the source of the compensation. How to amend 2010 tax return online Compensation (other than certain fringe benefits) is sourced on a time basis. How to amend 2010 tax return online Certain fringe benefits (such as housing and education) are sourced on a geographical basis. How to amend 2010 tax return online   Or, you may be permitted to use an alternative basis to determine the source of compensation. How to amend 2010 tax return online See Alternative basis , later. How to amend 2010 tax return online   If you are self-employed, determine the source of your income for labor or personal services from self-employment on the basis that most correctly reflects the proper source of that income under the facts and circumstances of your particular case. How to amend 2010 tax return online In many cases, the facts and circumstances will call for an apportionment on a time basis as explained next. How to amend 2010 tax return online Time basis. How to amend 2010 tax return online   Use a time basis to figure your compensation for labor or personal services from the relevant possession (other than the fringe benefits discussed later). How to amend 2010 tax return online Do this by multiplying your total compensation (other than the fringe benefits discussed later) by the following fraction:   Number of days you performed  services in the relevant  possession during the year     Total number of days you  performed services during the year           You can use a unit of time less than a day in the above fraction, if appropriate. How to amend 2010 tax return online The time period for which the income is made does not have to be a year. How to amend 2010 tax return online Instead, you can use another distinct, separate, and continuous time period if you can establish to the satisfaction of the IRS that this other period is more appropriate. How to amend 2010 tax return online Example. How to amend 2010 tax return online In 2013, you worked in your employer's office in the United States for 60 days and in the Puerto Rico office for 180 days, earning a total of $80,000 for the year. How to amend 2010 tax return online Your Puerto Rico source income is $60,000, figured as follows. How to amend 2010 tax return online       180 days 240 days × $80,000 = $60,000                 Multi-year compensation. How to amend 2010 tax return online   The source of multi-year compensation is generally determined on a time basis over the period to which the compensation is attributable. How to amend 2010 tax return online Multi-year compensation is compensation that is included in your income in 1 tax year but is attributable to a period that includes 2 or more tax years. How to amend 2010 tax return online You determine the period to which the income is attributable based on the facts and circumstances of your case. How to amend 2010 tax return online For more information on multi-year compensation, see Treasury Decision (T. How to amend 2010 tax return online D. How to amend 2010 tax return online ) 9212 and Regulations section 1. How to amend 2010 tax return online 861-4, 2005-35 I. How to amend 2010 tax return online R. How to amend 2010 tax return online B. How to amend 2010 tax return online 429, available at www. How to amend 2010 tax return online irs. How to amend 2010 tax return online gov/irb/2005-35_IRB/ar14. How to amend 2010 tax return online html. How to amend 2010 tax return online Certain fringe benefits sourced on a geographical basis. How to amend 2010 tax return online   If you received any of the following fringe benefits as compensation for labor or services performed as an employee partly inside and partly outside a relevant possession, you must source that income on a geographical basis. How to amend 2010 tax return online Housing. How to amend 2010 tax return online Education. How to amend 2010 tax return online Local transportation. How to amend 2010 tax return online Tax reimbursement. How to amend 2010 tax return online Hazardous or hardship duty pay. How to amend 2010 tax return online Moving expense reimbursement. How to amend 2010 tax return online For information on determining the source of the fringe benefits listed above, see Regulations section 1. How to amend 2010 tax return online 861-4. How to amend 2010 tax return online Alternative basis. How to amend 2010 tax return online   You can determine the source of your compensation under an alternative basis if you establish to the satisfaction of the IRS that, under the facts and circumstances of your case, the alternative basis more properly determines the source of your income than the time or geographical basis. How to amend 2010 tax return online If you use an alternative basis, you must keep (and have available for inspection) records to document why the alternative basis more properly determines the source of your income. How to amend 2010 tax return online De minimis exception. How to amend 2010 tax return online   There is an exception to the rule for determining the source of income earned in a possession. How to amend 2010 tax return online Generally, you will not have income from a possession if during a tax year you: Are a U. How to amend 2010 tax return online S. How to amend 2010 tax return online citizen or resident, Are not a bona fide resident of that possession, Are not employed by or under contract with an individual, partnership, or corporation that is engaged in a trade or business in that possession, Temporarily perform services in that possession for 90 days or less, and Earned $3,000 or less from such services. How to amend 2010 tax return online This exception began with income earned during your 2008 tax year. How to amend 2010 tax return online Pensions. How to amend 2010 tax return online   Generally, pension income has two components: contributions to the pension plan and the earnings accrued from investing those contributions. How to amend 2010 tax return online The contribution portion is sourced according to where services were performed that earned the pension. How to amend 2010 tax return online The investment earnings portion is sourced according to the location of the pension trust. How to amend 2010 tax return online Example. How to amend 2010 tax return online You are a U. How to amend 2010 tax return online S. How to amend 2010 tax return online citizen who worked in Puerto Rico for a U. How to amend 2010 tax return online S. How to amend 2010 tax return online company. How to amend 2010 tax return online All services were performed in Puerto Rico. How to amend 2010 tax return online Upon retirement you remained in Puerto Rico and began receiving your pension from the U. How to amend 2010 tax return online S. How to amend 2010 tax return online pension trust of your employer. How to amend 2010 tax return online Distributions from the U. How to amend 2010 tax return online S. How to amend 2010 tax return online pension trust must be allocated between (1) contributions, which are Puerto Rico source income, and (2) investment earnings, which are U. How to amend 2010 tax return online S. How to amend 2010 tax return online source income. How to amend 2010 tax return online Investment Income This category includes such income as interest, dividends, rents, and royalties. How to amend 2010 tax return online Interest income. How to amend 2010 tax return online   The source of interest income is generally determined by the residence of the payer. How to amend 2010 tax return online Interest paid by corporations created or organized in a relevant possession (possession corporation) or by individuals who are bona fide residents of a relevant possession is considered income from sources within that possession. How to amend 2010 tax return online   However, there is an exception to this rule if you are a bona fide resident of a relevant possession, receive interest from a corporation created or organized in that possession, and are a shareholder of that corporation who owns, directly or indirectly, at least 10% of the total voting stock of the corporation. How to amend 2010 tax return online See Regulations section 1. How to amend 2010 tax return online 937-2(i) for more information. How to amend 2010 tax return online Dividends. How to amend 2010 tax return online   Generally, dividends paid by a corporation created or organized in a relevant possession will be considered income from sources within that possession. How to amend 2010 tax return online There are additional rules for bona fide residents of a relevant possession who receive dividend income from possession corporations, and who own, directly or indirectly, at least 10% of the voting stock of the corporation. How to amend 2010 tax return online For more information, see Regulations section 1. How to amend 2010 tax return online 937-2(g). How to amend 2010 tax return online Rental income. How to amend 2010 tax return online   Rents from property located in a relevant possession are treated as income from sources within that possession. How to amend 2010 tax return online Royalties. How to amend 2010 tax return online   Royalties from natural resources located in a relevant possession are considered income from sources within that possession. How to amend 2010 tax return online   Also considered possession source income are royalties received for the use of, or for the privilege of using, in a relevant possession, patents, copyrights, secret processes and formulas, goodwill, trademarks, trade brands, franchises, and other like property. How to amend 2010 tax return online Sales or Other Dispositions of Property The source rules for sales or other dispositions of property are varied. How to amend 2010 tax return online The most common situations are discussed below. How to amend 2010 tax return online Real property. How to amend 2010 tax return online   Real property includes land and buildings, and generally anything built on, growing on, or attached to land. How to amend 2010 tax return online The location of the property generally determines the source of income from the sale. How to amend 2010 tax return online For example, if you are a bona fide resident of Guam and sell your home that is located in Guam, the gain on the sale is sourced in Guam. How to amend 2010 tax return online If, however, the home you sold was located in the United States, the gain is U. How to amend 2010 tax return online S. How to amend 2010 tax return online source income. How to amend 2010 tax return online Personal property. How to amend 2010 tax return online   The term “personal property” refers to property (such as machinery, equipment, or furniture) that is not real property. How to amend 2010 tax return online Generally, gain (or loss) from the sale or other disposition is sourced according to the seller's tax home. How to amend 2010 tax return online If personal property is sold by a bona fide resident of a relevant possession, the gain (or loss) from the sale is treated as sourced within that possession. How to amend 2010 tax return online   This rule does not apply to the sale of inventory, intangible property, depreciable personal property, or property sold through a foreign office or fixed place of business. How to amend 2010 tax return online The rules applying to sales of inventory are discussed below. How to amend 2010 tax return online For information on sales of the other types of property mentioned, see Internal Revenue Code section 865. How to amend 2010 tax return online Inventory. How to amend 2010 tax return online   Your inventory is personal property that is stock in trade or that is held primarily for sale to customers in the ordinary course of your trade or business. How to amend 2010 tax return online The source of income from the sale of inventory depends on whether the inventory was purchased or produced. How to amend 2010 tax return online Purchased. How to amend 2010 tax return online   Income from the sale of inventory that you purchased is sourced where you sell the property. How to amend 2010 tax return online Generally, this is where title to the property passes to the buyer. How to amend 2010 tax return online Produced. How to amend 2010 tax return online   Income from the sale of inventory that you produced in a relevant possession and sold outside that possession (or vice versa) is sourced based on an allocation. How to amend 2010 tax return online For information on making the allocation, see Regulations section 1. How to amend 2010 tax return online 863-3(f). How to amend 2010 tax return online Special Rules for Gains From Dispositions of Certain Property There are special rules for gains from dispositions of certain investment property (for example, stocks, bonds, debt instruments, diamonds, and gold) owned by a U. How to amend 2010 tax return online S. How to amend 2010 tax return online citizen or resident alien prior to becoming a bona fide resident of a possession. How to amend 2010 tax return online You are subject to these special rules if you meet both of the following conditions. How to amend 2010 tax return online For the tax year for which the source of the gain must be determined, you are a bona fide resident of the relevant possession. How to amend 2010 tax return online For any of the 10 years preceding that year, you were a citizen or resident alien of the United States (other than a bona fide resident of the relevant possession). How to amend 2010 tax return online If you meet these conditions, gains from the disposition of this property will not be treated as income from sources within the relevant possession for purposes of the Internal Revenue Code. How to amend 2010 tax return online Accordingly, bona fide residents of American Samoa and Puerto Rico, for example, may not exclude the gain on their U. How to amend 2010 tax return online S. How to amend 2010 tax return online tax return. How to amend 2010 tax return online (See chapter 3 for additional filing information. How to amend 2010 tax return online ) With respect to the CNMI, Guam, and the USVI, the gain from the disposition of this property will not meet the requirements for certain tax rules that may allow bona fide residents of those possessions to reduce or obtain a rebate of taxes on income from sources within the relevant possessions. How to amend 2010 tax return online These rules apply to dispositions after April 11, 2005. How to amend 2010 tax return online For details, see Regulations section 1. How to amend 2010 tax return online 937-2(f)(1) and Examples 1 and 2 of section 1. How to amend 2010 tax return online 937-2(k). How to amend 2010 tax return online Example 1. How to amend 2010 tax return online In 2007, Cheryl Jones, a U. How to amend 2010 tax return online S. How to amend 2010 tax return online citizen, lived in the United States and paid $1,000 for 100 shares of stock in the Rose Corporation, a U. How to amend 2010 tax return online S. How to amend 2010 tax return online corporation listed on the New York Stock Exchange. How to amend 2010 tax return online On March 1, 2010, she moved to Puerto Rico and changed her tax home to Puerto Rico on the same date. How to amend 2010 tax return online Cheryl satisfied the presence test in 2010 and, under the year-of-move exception, she was considered a bona fide resident of Puerto Rico for the rest of 2010. How to amend 2010 tax return online On March 1, 2010, the closing value of Cheryl's stock in the Rose Corporation was $2,000. How to amend 2010 tax return online On January 5, 2013, while still a bona fide resident of Puerto Rico, Cheryl sold all her Rose Corporation stock for $7,000. How to amend 2010 tax return online Under the earlier rules, none of Cheryl's $6,000 gain will be treated as income from sources within Puerto Rico. How to amend 2010 tax return online The source rules discussed in the preceding paragraphs supplement, and may apply in conjunction with, an existing special rule. How to amend 2010 tax return online This existing special rule applies if you are a U. How to amend 2010 tax return online S. How to amend 2010 tax return online citizen or resident alien who becomes a bona fide resident of American Samoa, the CNMI, or Guam, and who has gain from the disposition of certain U. How to amend 2010 tax return online S. How to amend 2010 tax return online assets during the 10-year period beginning when you became a bona fide resident. How to amend 2010 tax return online The gain is U. How to amend 2010 tax return online S. How to amend 2010 tax return online source income that generally is subject to U. How to amend 2010 tax return online S. How to amend 2010 tax return online tax if the property is either (1) located in the United States; (2) stock issued by a U. How to amend 2010 tax return online S. How to amend 2010 tax return online corporation or a debt obligation of a U. How to amend 2010 tax return online S. How to amend 2010 tax return online person or of the United States, a state (or political subdivision), or the District of Columbia; or (3) property that has a basis in whole or in part by reference to property described in (1) or (2). How to amend 2010 tax return online See chapter 3 for filing information. How to amend 2010 tax return online Special election. How to amend 2010 tax return online   For dispositions after April 11, 2005, you can choose to treat the part of gain (or loss) attributable to the time you held the property while a bona fide resident of the relevant possession (the possession holding period) as gain (or loss) from sources within that possession. How to amend 2010 tax return online Make the election by reporting the gain attributable to the possession holding period on your income tax return for the year of disposition. How to amend 2010 tax return online This election overrides both of the special rules discussed earlier. How to amend 2010 tax return online   There are two methods for figuring the gain for the possession holding period, one for marketable securities and another for other types of investment property. How to amend 2010 tax return online Marketable securities. How to amend 2010 tax return online   Marketable securities are those actively traded on an established financial market, such as stock in a publicly held corporation. How to amend 2010 tax return online Under the special election, allocate the gain (or loss) by figuring the appreciation separately for your possession and U. How to amend 2010 tax return online S. How to amend 2010 tax return online holding periods. How to amend 2010 tax return online   Your possession holding period begins on the first day you do not have a tax home outside the relevant possession. How to amend 2010 tax return online The gain (or loss) attributable to the possession holding period is the difference in fair market value of the security at the close of the market on the first and last days of this holding period. How to amend 2010 tax return online This is your gain (or loss) that is treated as being from sources within the relevant possession. How to amend 2010 tax return online If you were a bona fide resident of the relevant possession for more than one continuous period, combine the gains (or losses) from each possession holding period. How to amend 2010 tax return online Example 2. How to amend 2010 tax return online Assume the same facts as in Example 1, except that Cheryl makes the special election to allocate the gain between her U. How to amend 2010 tax return online S. How to amend 2010 tax return online and possession holding periods. How to amend 2010 tax return online Cheryl's possession holding period began March 1, 2010, the date her tax home changed to Puerto Rico. How to amend 2010 tax return online Therefore, the portion of gain attributable to her possession holding period is $5,000 ($7,000 sale price – $2,000 closing value on first day of the possession holding period). How to amend 2010 tax return online By reporting $5,000 of her $6,000 gain as Puerto Rico source income on her 2013 Puerto Rico tax return (and the remainder as non-Puerto Rico source income), Cheryl elects to treat that amount as Puerto Rico source income. How to amend 2010 tax return online Other personal property. How to amend 2010 tax return online   For personal property other than marketable securities, use a time-based allocation. How to amend 2010 tax return online Figure the gain (or loss) attributable to the possession holding period by multiplying your total gain (or loss) by the following fraction. How to amend 2010 tax return online      Number of days in the  possession holding period     Total number of days  in your holding period         The result is your gain (or loss) that is treated as being from sources within the relevant possession. How to amend 2010 tax return online Example 3. How to amend 2010 tax return online In addition to the stock in Rose Corporation, Cheryl acquired a 5% interest in the Alder Partnership on January 1, 2009. How to amend 2010 tax return online On March 1, 2010, when she established bona fide residency in Puerto Rico, her partnership interest was not considered a marketable security. How to amend 2010 tax return online On September 16, 2013, while still a bona fide resident of Puerto Rico, Cheryl sold her interest in Alder Partnership for a $100,000 gain. How to amend 2010 tax return online She had owned the interest for a total of 1,720 days. How to amend 2010 tax return online Cheryl's possession holding period (from March 1, 2010, through September 16, 2013) is 1,296 days. How to amend 2010 tax return online The portion of her gain attributable to Puerto Rico is $75,349 ($100,000 x (1,296 Puerto Rico days ÷ 1,720 total days)). How to amend 2010 tax return online By reporting $75,349 of her $100,000 gain as Puerto Rico source income on her 2013 Puerto Rico tax return (and the remainder as non-Puerto Rico source income), Cheryl elects to treat that amount as Puerto Rico source income. How to amend 2010 tax return online Scholarships, Fellowships, Grants, Prizes, and Awards The source of these types of income is generally the residence of the payer, regardless of who actually disburses the funds. How to amend 2010 tax return online Therefore, in order to be possession source income, the payer must be a resident of the relevant possession, such as an individual who is a bona fide resident or a corporation created or organized in that possession. How to amend 2010 tax return online These rules do not apply to amounts paid as salary or other compensation for services. How to amend 2010 tax return online See Compensation for Labor or Personal Services, earlier in this chapter, for the source rules that apply. How to amend 2010 tax return online Effectively Connected Income In limited circumstances, some kinds of income from sources outside the relevant possession must be treated as effectively connected with a trade or business in that possession. How to amend 2010 tax return online These circumstances are listed below. How to amend 2010 tax return online You have an office or other fixed place of business in the relevant possession to which the income can be attributed. How to amend 2010 tax return online That office or place of business is a material factor in producing the income. How to amend 2010 tax return online The income is produced in the ordinary course of the trade or business carried on through that office or other fixed place of business. How to amend 2010 tax return online An office or other fixed place of business is a material factor if it significantly contributes to, and is an essential economic element in, the earning of the income. How to amend 2010 tax return online The three kinds of income from sources outside the relevant possession to which these rules apply are the following. How to amend 2010 tax return online Rents and royalties for the use of, or for the privilege of using, intangible personal property located outside the relevant possession or from any interest in such property. How to amend 2010 tax return online Included are rents or royalties for the use of, or for the privilege of using, outside the relevant possession, patents, copyrights, secret processes and formulas, goodwill, trademarks, trade brands, franchises, and similar properties if the rents or royalties are from the active conduct of a trade or business in the relevant possession. How to amend 2010 tax return online Dividends or interest from the active conduct of a banking, financing, or similar business in the relevant possession. How to amend 2010 tax return online Income, gain, or loss from the sale or exchange outside the relevant possession, through the office or other fixed place of business in the relevant possession, of: Stock in trade, Property that would be included in inventory if on hand at the end of the tax year, or Property held primarily for sale to customers in the ordinary course of business. How to amend 2010 tax return online Item (3) will not apply if you sold the property for use, consumption, or disposition outside the relevant possession and an office or other fixed place of business in a foreign country was a material factor in the sale. How to amend 2010 tax return online Example. How to amend 2010 tax return online Marcy Jackson is a bona fide resident of American Samoa. How to amend 2010 tax return online Her business, which she conducts from an office in American Samoa, is developing and selling specialized computer software. How to amend 2010 tax return online A software purchaser will frequently pay Marcy an additional amount to install the software on the purchaser's operating system and to ensure that the software is functioning properly. How to amend 2010 tax return online Marcy installs the software at the purchaser's place of business, which may be in American Samoa, in the United States, or in another country. How to amend 2010 tax return online The income from selling the software is effectively connected with the conduct of Marcy's business in American Samoa, even though the product's destination may be outside the possession. How to amend 2010 tax return online However, the compensation she receives for installing the software (personal services) outside of American Samoa is not effectively connected with the conduct of her business in the possession—the income is sourced where she performs the services. How to amend 2010 tax return online Prev  Up  Next   Home   More Online Publications
Español

Consumer Protection Offices

City, county, regional, and state consumer offices offer a variety of important services. They might mediate complaints, conduct investigations, prosecute offenders of consumer laws, license and regulate professional service providers, provide educational materials and advocate for consumer rights. To save time, call before sending a written complaint. Ask if the office handles the type of complaint you have and if complaint forms are provided.

State Consumer Protection Offices

Office of Kansas Attorney

Website: Office of Kansas Attorney

Address: Office of Kansas Attorney
Consumer Protection Division
120 S.W. 10th St., Suite 430
Topeka, KS 66612-1597

Phone Number: 785-296-3751

Toll-free: 1-800-432-2310 (KS)

Back to Top

County Consumer Protection Offices

Douglas County District Attorney's Office

Website: Douglas County District Attorney's Office

Address: Douglas County District Attorney's Office
Consumer Protection Division
111 E. 11th St.
Lawrence, KS 66044

Phone Number: 785-330-2849 (Consumer Hotline) 785-841-0211 (Main)

Johnson County District Attorney's Office

Website: Johnson County District Attorney's Office

Address: Johnson County District Attorney's Office
Consumer Protection Division
Consumer Fraud Unit

PO Box 728
Olathe, KS 66051

Phone Number: 913-715-3003 (Consumer Hotline)

Sedgwick County District Attorney's Office

Website: Sedgwick County District Attorney's Office

Address: Sedgwick County District Attorney's Office
Consumer Division
1900 E. Morris St.
Wichita, KS 67211

Phone Number: 316-660-3600

Toll-free: 1-800-432-6878 (KS)

Back to Top

Banking Authorities

The officials listed in this section regulate and supervise state-chartered banks. Many of them handle or refer problems and complaints about other types of financial institutions as well. Some also answer general questions about banking and consumer credit. If you are dealing with a federally chartered bank, check Federal Agencies.

Office of the State Bank Commissioner

Website: Office of the State Bank Commissioner

Address: Office of the State Bank Commissioner
700 S.W. Jackson St., Suite 300
Topeka, KS 66603

Phone Number: 785-296-2266

Back to Top

Insurance Regulators

Each state has its own laws and regulations for each type of insurance. The officials listed in this section enforce these laws. Many of these offices can also provide you with information to help you make informed insurance buying decisions.

Insurance Department

Website: Insurance Department

Address: Insurance Department
Consumer Assistance Division
420 S.W. 9th St.
Topeka, KS 66612

Phone Number: 785-296-7829

Toll-free: 1-800-432-2484

TTY: 1-877-235-3151

Back to Top

Securities Administrators

Each state has its own laws and regulations for securities brokers and securities - including stocks, mutual funds, commodities, real estate, etc. The officials and agencies listed in this section enforce these laws and regulations. Many of these offices can also provide information to help you make informed investment decisions.

Office of the Securities Commissioner

Website: Office of the Securities Commissioner

Address: Office of the Securities Commissioner
109 S.W. 9th St.
Suite 600
Topeka, KS 66612-1215

Phone Number: 785-296-3307

Toll-free: 1-800-232-9580 (KS)

Back to Top

Utility Commissions

State Utility Commissions regulate services and rates for gas, electricity and telephones within your state. In some states, the utility commissions regulate other services such as water, transportation, and the moving of household goods. Many utility commissions handle consumer complaints. Sometimes, if a number of complaints are received about the same utility matter, they will conduct investigations.

Corporation Commission

Website: Corporation Commission

Address: Corporation Commission
Office of Public Affairs and Consumer Protection
1500 S.W. Arrowhead Rd.
Topeka, KS 66604-4027

Phone Number: 785-271-3140

Toll-free: 1-800-662-0027 (KS)

TTY: 1-800-766-3777

Back to Top

The How To Amend 2010 Tax Return Online

How to amend 2010 tax return online Publication 542 - Main Content Table of Contents Businesses Taxed as CorporationsPersonal services. How to amend 2010 tax return online Employee-owners. How to amend 2010 tax return online Other rules. How to amend 2010 tax return online Other rules. How to amend 2010 tax return online Property Exchanged for StockNonqualified preferred stock. How to amend 2010 tax return online Liabilities. How to amend 2010 tax return online Election to reduce basis. How to amend 2010 tax return online Capital Contributions Filing and Paying Income TaxesIncome Tax Return Penalties Estimated Tax U. How to amend 2010 tax return online S. How to amend 2010 tax return online Real Property Interest Accounting MethodsSection 481(a) adjustment. How to amend 2010 tax return online Accounting Periods Recordkeeping Income, Deductions, and Special ProvisionsCosts of Going Into Business Related Persons Income From Qualifying Shipping Activities Election to Expense Qualified Refinery Property Deduction to Comply With EPA Sulfur Regulations Energy-Efficient Commercial Building Property Deduction Corporate Preference Items Dividends-Received Deduction Extraordinary Dividends Below-Market Loans Charitable Contributions Capital Losses Net Operating Losses At-Risk Limits Passive Activity Limits Figuring TaxTax Rate Schedule Alternative Minimum Tax (AMT) Credits Recapture Taxes Accumulated Earnings Tax Distributions to ShareholdersMoney or Property Distributions Distributions of Stock or Stock Rights Constructive Distributions Reporting Dividends and Other Distributions How To Get Tax Help Businesses Taxed as Corporations The rules you must use to determine whether a business is taxed as a corporation changed for businesses formed after 1996. How to amend 2010 tax return online Business formed before 1997. How to amend 2010 tax return online   A business formed before 1997 and taxed as a corporation under the old rules will generally continue to be taxed as a corporation. How to amend 2010 tax return online Business formed after 1996. How to amend 2010 tax return online   The following businesses formed after 1996 are taxed as corporations. How to amend 2010 tax return online A business formed under a federal or state law that refers to it as a corporation, body corporate, or body politic. How to amend 2010 tax return online A business formed under a state law that refers to it as a joint-stock company or joint-stock association. How to amend 2010 tax return online An insurance company. How to amend 2010 tax return online Certain banks. How to amend 2010 tax return online A business wholly owned by a state or local government. How to amend 2010 tax return online A business specifically required to be taxed as a corporation by the Internal Revenue Code (for example, certain publicly traded partnerships). How to amend 2010 tax return online Certain foreign businesses. How to amend 2010 tax return online Any other business that elects to be taxed as a corporation. How to amend 2010 tax return online For example, a limited liability company (LLC) can elect to be treated as an association taxable as a corporation by filing Form 8832, Entity Classification Election. How to amend 2010 tax return online For more information about LLCs, see Publication 3402, Taxation of Limited Liability Companies. How to amend 2010 tax return online S corporations. How to amend 2010 tax return online   Some corporations may meet the qualifications for electing to be S corporations. How to amend 2010 tax return online For information on S corporations, see the instructions for Form 1120S, U. How to amend 2010 tax return online S. How to amend 2010 tax return online Income Tax Return for an S Corporation. How to amend 2010 tax return online Personal service corporations. How to amend 2010 tax return online   A corporation is a personal service corporation if it meets all of the following requirements. How to amend 2010 tax return online Its principal activity during the “testing period” is performing personal services (defined later). How to amend 2010 tax return online Generally, the testing period for any tax year is the prior tax year. How to amend 2010 tax return online If the corporation has just been formed, the testing period begins on the first day of its tax year and ends on the earlier of: The last day of its tax year, or The last day of the calendar year in which its tax year begins. How to amend 2010 tax return online Its employee-owners substantially perform the services in (1), above. How to amend 2010 tax return online This requirement is met if more than 20% of the corporation's compensation cost for its activities of performing personal services during the testing period is for personal services performed by employee-owners. How to amend 2010 tax return online Its employee-owners own more than 10% of the fair market value of its outstanding stock on the last day of the testing period. How to amend 2010 tax return online Personal services. How to amend 2010 tax return online   Personal services include any activity performed in the fields of accounting, actuarial science, architecture, consulting, engineering, health (including veterinary services), law, and the performing arts. How to amend 2010 tax return online Employee-owners. How to amend 2010 tax return online   A person is an employee-owner of a personal service corporation if both of the following apply. How to amend 2010 tax return online He or she is an employee of the corporation or performs personal services for, or on behalf of, the corporation (even if he or she is an independent contractor for other purposes) on any day of the testing period. How to amend 2010 tax return online He or she owns any stock in the corporation at any time during the testing period. How to amend 2010 tax return online Other rules. How to amend 2010 tax return online   For other rules that apply to personal service corporations see Accounting Periods, later. How to amend 2010 tax return online Closely held corporations. How to amend 2010 tax return online   A corporation is closely held if all of the following apply. How to amend 2010 tax return online It is not a personal service corporation. How to amend 2010 tax return online At any time during the last half of the tax year, more than 50% of the value of its outstanding stock is, directly or indirectly, owned by or for five or fewer individuals. How to amend 2010 tax return online “Individual” includes certain trusts and private foundations. How to amend 2010 tax return online Other rules. How to amend 2010 tax return online   For the at-risk rules that apply to closely held corporations, seeAt-Risk Limits, later. How to amend 2010 tax return online Property Exchanged for Stock If you transfer property (or money and property) to a corporation in exchange for stock in that corporation (other than nonqualified preferred stock, described later), and immediately afterward you are in control of the corporation, the exchange is usually not taxable. How to amend 2010 tax return online This rule applies both to individuals and to groups who transfer property to a corporation. How to amend 2010 tax return online It also applies whether the corporation is being formed or is already operating. How to amend 2010 tax return online It does not apply in the following situations. How to amend 2010 tax return online The corporation is an investment company. How to amend 2010 tax return online You transfer the property in a bankruptcy or similar proceeding in exchange for stock used to pay creditors. How to amend 2010 tax return online The stock is received in exchange for the corporation's debt (other than a security) or for interest on the corporation's debt (including a security) that accrued while you held the debt. How to amend 2010 tax return online Both the corporation and any person involved in a nontaxable exchange of property for stock must attach to their income tax returns a complete statement of all facts pertinent to the exchange. How to amend 2010 tax return online For more information, see section 1. How to amend 2010 tax return online 351-3 of the Regulations. How to amend 2010 tax return online Control of a corporation. How to amend 2010 tax return online   To be in control of a corporation, you or your group of transferors must own, immediately after the exchange, at least 80% of the total combined voting power of all classes of stock entitled to vote and at least 80% of the outstanding shares of each class of nonvoting stock. How to amend 2010 tax return online Example 1. How to amend 2010 tax return online You and Bill Jones buy property for $100,000. How to amend 2010 tax return online You both organize a corporation when the property has a fair market value of $300,000. How to amend 2010 tax return online You transfer the property to the corporation for all its authorized capital stock, which has a par value of $300,000. How to amend 2010 tax return online No gain is recognized by you, Bill, or the corporation. How to amend 2010 tax return online Example 2. How to amend 2010 tax return online You and Bill transfer the property with a basis of $100,000 to a corporation in exchange for stock with a fair market value of $300,000. How to amend 2010 tax return online This represents only 75% of each class of stock of the corporation. How to amend 2010 tax return online The other 25% was already issued to someone else. How to amend 2010 tax return online You and Bill recognize a taxable gain of $200,000 on the transaction. How to amend 2010 tax return online Services rendered. How to amend 2010 tax return online   The term property does not include services rendered or to be rendered to the issuing corporation. How to amend 2010 tax return online The value of stock received for services is income to the recipient. How to amend 2010 tax return online Example. How to amend 2010 tax return online You transfer property worth $35,000 and render services valued at $3,000 to a corporation in exchange for stock valued at $38,000. How to amend 2010 tax return online Right after the exchange, you own 85% of the outstanding stock. How to amend 2010 tax return online No gain is recognized on the exchange of property. How to amend 2010 tax return online However, you recognize ordinary income of $3,000 as payment for services you rendered to the corporation. How to amend 2010 tax return online Property of relatively small value. How to amend 2010 tax return online   The term property does not include property of a relatively small value when it is compared to the value of stock and securities already owned or to be received for services by the transferor if the main purpose of the transfer is to qualify for the nonrecognition of gain or loss by other transferors. How to amend 2010 tax return online   Property transferred will not be considered to be of relatively small value if its fair market value is at least 10% of the fair market value of the stock and securities already owned or to be received for services by the transferor. How to amend 2010 tax return online Stock received in disproportion to property transferred. How to amend 2010 tax return online   If a group of transferors exchange property for corporate stock, each transferor does not have to receive stock in proportion to his or her interest in the property transferred. How to amend 2010 tax return online If a disproportionate transfer takes place, it will be treated for tax purposes in accordance with its true nature. How to amend 2010 tax return online It may be treated as if the stock were first received in proportion and then some of it used to make gifts, pay compensation for services, or satisfy the transferor's obligations. How to amend 2010 tax return online Money or other property received. How to amend 2010 tax return online   If, in an otherwise nontaxable exchange of property for corporate stock, you also receive money or property other than stock, you may have to recognize gain. How to amend 2010 tax return online You must recognize gain only up to the amount of money plus the fair market value of the other property you receive. How to amend 2010 tax return online The rules for figuring the recognized gain in this situation generally follow those for a partially nontaxable exchange discussed in Publication 544 under Like-Kind Exchanges. How to amend 2010 tax return online If the property you give up includes depreciable property, the recognized gain may have to be reported as ordinary income from depreciation. How to amend 2010 tax return online See chapter 3 of Publication 544. How to amend 2010 tax return online No loss is recognized. How to amend 2010 tax return online Nonqualified preferred stock. How to amend 2010 tax return online   Nonqualified preferred stock is treated as property other than stock. How to amend 2010 tax return online Generally, it is preferred stock with any of the following features. How to amend 2010 tax return online The holder has the right to require the issuer or a related person to redeem or buy the stock. How to amend 2010 tax return online The issuer or a related person is required to redeem or buy the stock. How to amend 2010 tax return online The issuer or a related person has the right to redeem or buy the stock and, on the issue date, it is more likely than not that the right will be exercised. How to amend 2010 tax return online The dividend rate on the stock varies with reference to interest rates, commodity prices, or similar indices. How to amend 2010 tax return online For a detailed definition of nonqualified preferred stock, see section 351(g)(2) of the Internal Revenue Code. How to amend 2010 tax return online Liabilities. How to amend 2010 tax return online   If the corporation assumes your liabilities, the exchange generally is not treated as if you received money or other property. How to amend 2010 tax return online There are two exceptions to this treatment. How to amend 2010 tax return online If the liabilities the corporation assumes are more than your adjusted basis in the property you transfer, gain is recognized up to the difference. How to amend 2010 tax return online However, if the liabilities assumed give rise to a deduction when paid, such as a trade account payable or interest, no gain is recognized. How to amend 2010 tax return online If there is no good business reason for the corporation to assume your liabilities, or if your main purpose in the exchange is to avoid federal income tax, the assumption is treated as if you received money in the amount of the liabilities. How to amend 2010 tax return online For more information on the assumption of liabilities, see section 357(d) of the Internal Revenue Code. How to amend 2010 tax return online Example. How to amend 2010 tax return online You transfer property to a corporation for stock. How to amend 2010 tax return online Immediately after the transfer, you control the corporation. How to amend 2010 tax return online You also receive $10,000 in the exchange. How to amend 2010 tax return online Your adjusted basis in the transferred property is $20,000. How to amend 2010 tax return online The stock you receive has a fair market value (FMV) of $16,000. How to amend 2010 tax return online The corporation also assumes a $5,000 mortgage on the property for which you are personally liable. How to amend 2010 tax return online Gain is realized as follows. How to amend 2010 tax return online FMV of stock received $16,000 Cash received 10,000 Liability assumed by corporation 5,000 Total received $31,000 Minus: Adjusted basis of property transferred 20,000 Realized gain $11,000   The liability assumed is not treated as money or other property. How to amend 2010 tax return online The recognized gain is limited to $10,000, the cash received. How to amend 2010 tax return online Loss on exchange. How to amend 2010 tax return online   If you have a loss from an exchange and own, directly or indirectly, more than 50% of the corporation's stock, you cannot deduct the loss. How to amend 2010 tax return online For more information, see Nondeductible Loss under Sales and Exchanges Between Related Persons in chapter 2 of Publication 544. How to amend 2010 tax return online Basis of stock or other property received. How to amend 2010 tax return online   The basis of the stock you receive is generally the adjusted basis of the property you transfer. How to amend 2010 tax return online Increase this amount by any amount treated as a dividend, plus any gain recognized on the exchange. How to amend 2010 tax return online Decrease this amount by any cash you received, the fair market value of any other property you received, and any loss recognized on the exchange. How to amend 2010 tax return online Also decrease this amount by the amount of any liability the corporation or another party to the exchange assumed from you, unless payment of the liability gives rise to a deduction when paid. How to amend 2010 tax return online    Further decreases may be required when the corporation or another party to the exchange assumes from you a liability that gives rise to a deduction when paid, if the basis of the stock would otherwise be higher than its fair market value on the date of the exchange. How to amend 2010 tax return online This rule does not apply if the entity assuming the liability acquired either substantially all of the assets or the trade or business with which the liability is associated. How to amend 2010 tax return online The basis of any other property you receive is its fair market value on the date of the trade. How to amend 2010 tax return online Basis of property transferred. How to amend 2010 tax return online   A corporation that receives property from you in exchange for its stock generally has the same basis you had in the property, increased by any gain you recognized on the exchange. How to amend 2010 tax return online However, the increase for the gain recognized may be limited. How to amend 2010 tax return online For more information, see section 362 of the Internal Revenue Code. How to amend 2010 tax return online Election to reduce basis. How to amend 2010 tax return online   In a section 351 transaction, if the adjusted basis of the property transferred exceeds the property's fair market value, the transferor and transferee may make an irrevocable election to treat the basis of the stock received by the transferor as having a basis equal to the fair market value of the property transferred. How to amend 2010 tax return online The transferor and transferee make this election by attaching a statement to their tax returns filed by the due date (including extensions) for the tax year in which the transaction occurred. How to amend 2010 tax return online However, if the transferor makes the election by including the certification provided in Notice 2005-70, 2005-41, I. How to amend 2010 tax return online R. How to amend 2010 tax return online B. How to amend 2010 tax return online 694, on or with its tax return filed by the due date (including extensions), then no election need be made by the transferee. How to amend 2010 tax return online    For more information on making this election, see section 362(e)(2)(C) of the Internal Revenue Code, and Notice 2005-70. How to amend 2010 tax return online Capital Contributions This section explains the tax treatment of contributions from shareholders and nonshareholders. How to amend 2010 tax return online Paid-in capital. How to amend 2010 tax return online   Contributions to the capital of a corporation, whether or not by shareholders, are paid-in capital. How to amend 2010 tax return online These contributions are not taxable to the corporation. How to amend 2010 tax return online Basis. How to amend 2010 tax return online   The corporation's basis of property contributed to capital by a shareholder is the same as the basis the shareholder had in the property, increased by any gain the shareholder recognized on the exchange. How to amend 2010 tax return online However, the increase for the gain recognized may be limited. How to amend 2010 tax return online For more information, see Basis of property transferred, above, and section 362 of the Internal Revenue Code. How to amend 2010 tax return online   The basis of property contributed to capital by a person other than a shareholder is zero. How to amend 2010 tax return online   If a corporation receives a cash contribution from a person other than a shareholder, the corporation must reduce the basis of any property acquired with the contribution during the 12-month period beginning on the day it received the contribution by the amount of the contribution. How to amend 2010 tax return online If the amount contributed is more than the cost of the property acquired, then reduce, but not below zero, the basis of the other properties held by the corporation on the last day of the 12-month period in the following order. How to amend 2010 tax return online Depreciable property. How to amend 2010 tax return online Amortizable property. How to amend 2010 tax return online Property subject to cost depletion but not to percentage depletion. How to amend 2010 tax return online All other remaining properties. How to amend 2010 tax return online   Reduce the basis of property in each category to zero before going on to the next category. How to amend 2010 tax return online   There may be more than one piece of property in each category. How to amend 2010 tax return online Base the reduction of the basis of each property on the following ratio:   Basis of each piece of property   Bases of all properties (within that category) If the corporation wishes to make this adjustment in some other way, it must get IRS approval. How to amend 2010 tax return online The corporation files a request for approval with its income tax return for the tax year in which it receives the contribution. How to amend 2010 tax return online Filing and Paying Income Taxes The federal income tax is a pay-as-you-go tax. How to amend 2010 tax return online A corporation generally must make estimated tax payments as it earns or receives income during its tax year. How to amend 2010 tax return online After the end of the year, the corporation must file an income tax return. How to amend 2010 tax return online This section will help you determine when and how to pay and file corporate income taxes. How to amend 2010 tax return online For certain corporations affected by Presidentially declared disasters such as hurricanes, the due dates for filing returns, paying taxes, and performing other time-sensitive acts may be extended. How to amend 2010 tax return online The IRS may also forgive the interest and penalties on any underpaid tax for the length of any extension. How to amend 2010 tax return online For more information, visit www. How to amend 2010 tax return online irs. How to amend 2010 tax return online gov/newsroom/article/0,,id=108362. How to amend 2010 tax return online 00. How to amend 2010 tax return online Income Tax Return This section will help you determine when and how to report a corporation's income tax. How to amend 2010 tax return online Who must file. How to amend 2010 tax return online   Unless exempt under section 501 of the Internal Revenue Code, all domestic corporations in existence for any part of a tax year (including corporations in bankruptcy) must file an income tax return whether or not they have taxable income. How to amend 2010 tax return online Which form to file. How to amend 2010 tax return online   A corporation generally must file Form 1120, U. How to amend 2010 tax return online S. How to amend 2010 tax return online Corporation Income Tax Return, to report its income, gains, losses, deductions, credits, and to figure its income tax liability. How to amend 2010 tax return online Certain organizations and entities must file special returns. How to amend 2010 tax return online For more information, see Special Returns for Certain Organizations, in the Instructions for Form 1120. How to amend 2010 tax return online Electronic filing. How to amend 2010 tax return online   Corporations can generally electronically file (e-file) Form 1120 and certain related forms, schedules, and attachments. How to amend 2010 tax return online Certain corporations with total assets of $10 million or more, that file at least 250 returns a year must e-file Form 1120. How to amend 2010 tax return online However, in certain instances, these corporations can request a waiver. How to amend 2010 tax return online For more information regarding electronic filing, visit www. How to amend 2010 tax return online irs. How to amend 2010 tax return online gov/efile. How to amend 2010 tax return online When to file. How to amend 2010 tax return online   Generally, a corporation must file its income tax return by the 15th day of the 3rd month after the end of its tax year. How to amend 2010 tax return online A new corporation filing a short-period return must generally file by the 15th day of the 3rd month after the short period ends. How to amend 2010 tax return online A corporation that has dissolved must generally file by the 15th day of the 3rd month after the date it dissolved. How to amend 2010 tax return online Example 1. How to amend 2010 tax return online A corporation's tax year ends December 31. How to amend 2010 tax return online It must file its income tax return by March 15th. How to amend 2010 tax return online Example 2. How to amend 2010 tax return online A corporation's tax year ends June 30. How to amend 2010 tax return online It must file its income tax return by September 15th. How to amend 2010 tax return online   If the due date falls on a Saturday, Sunday, or legal holiday, the due date is extended to the next business day. How to amend 2010 tax return online Extension of time to file. How to amend 2010 tax return online   File Form 7004, Application for Automatic Extension of Time To File Certain Business Income Tax, Information and Other Returns, to request an extension of time to file a corporation income tax return. How to amend 2010 tax return online The IRS will grant the extension if you complete the form properly, file it, and pay any tax due by the original due date for the return. How to amend 2010 tax return online   Form 7004 does not extend the time for paying the tax due on the return. How to amend 2010 tax return online Interest, and possibly penalties, will be charged on any part of the final tax due not shown as a balance due on Form 7004. How to amend 2010 tax return online The interest is figured from the original due date of the return to the date of payment. How to amend 2010 tax return online   For more information, see the instructions for Form 7004. How to amend 2010 tax return online How to pay your taxes. How to amend 2010 tax return online   A corporation must pay its tax due in full no later than the 15th day of the 3rd month after the end of its tax year. How to amend 2010 tax return online Electronic Federal Tax Payment System (EFTPS). How to amend 2010 tax return online   Corporations generally must use EFTPS to make deposits of all tax liabilities (including social security, Medicare, withheld income, excise, and corporate income taxes). How to amend 2010 tax return online For more information on EFTPS and enrollment, visit www. How to amend 2010 tax return online eftps. How to amend 2010 tax return online gov or call 1-800-555-4477. How to amend 2010 tax return online Also see Publication 966, The Secure Way to Pay Your Federal Taxes. How to amend 2010 tax return online Note. How to amend 2010 tax return online Forms 8109 and 8109-B, Federal Tax Deposit Coupon, can no longer be used to make federal tax deposits. How to amend 2010 tax return online Penalties Generally, if the corporation receives a notice about interest and penalties after it files its return, send the IRS an explanation and we will determine if the corporation meets reasonable-cause criteria. How to amend 2010 tax return online Do not attach an explanation when the corporation's return is filed. How to amend 2010 tax return online See the instructions for your income tax return. How to amend 2010 tax return online Late filing of return. How to amend 2010 tax return online    A corporation that does not file its tax return by the due date, including extensions, may be penalized 5% of the unpaid tax for each month or part of a month the return is late, up to a maximum of 25% of the unpaid tax. How to amend 2010 tax return online If the corporation is charged a penalty for late payment of tax (discussed next) for the same period of time, the penalty for late filing is reduced by the amount of the penalty for late payment. How to amend 2010 tax return online The minimum penalty for a return that is over 60 days late is the smaller of the tax due or $100. How to amend 2010 tax return online The penalty will not be imposed if the corporation can show the failure to file on time was due to a reasonable cause. How to amend 2010 tax return online Late payment of tax. How to amend 2010 tax return online    A corporation that does not pay the tax when due may be penalized ½ of 1% of the unpaid tax for each month or part of a month the tax is not paid, up to a maximum of 25% of the unpaid tax. How to amend 2010 tax return online The penalty will not be imposed if the corporation can show that the failure to pay on time was due to a reasonable cause. How to amend 2010 tax return online Trust fund recovery penalty. How to amend 2010 tax return online   If income, social security, and Medicare taxes that a corporation must withhold from employee wages are not withheld or are not deposited or paid to the United States Treasury, the trust fund recovery penalty may apply. How to amend 2010 tax return online The penalty is the full amount of the unpaid trust fund tax. How to amend 2010 tax return online This penalty may apply to you if these unpaid taxes cannot be immediately collected from the business. How to amend 2010 tax return online   The trust fund recovery penalty may be imposed on all persons who are determined by the IRS to be responsible for collecting, accounting for, and paying these taxes, and who acted willfully in not doing so. How to amend 2010 tax return online   A responsible person can be an officer or employee of a corporation, an accountant, or a volunteer director/trustee. How to amend 2010 tax return online A responsible person also may include one who signs checks for the corporation or otherwise has authority to cause the spending of business funds. How to amend 2010 tax return online   Willfully means voluntarily, consciously, and intentionally. How to amend 2010 tax return online A responsible person acts willfully if the person knows the required actions are not taking place. How to amend 2010 tax return online   For more information on withholding and paying these taxes, see Publication 15 (Circular E), Employer's Tax Guide, and Publication 51, (Circular A), Agricultural Employer's Tax Guide. How to amend 2010 tax return online Other penalties. How to amend 2010 tax return online   Other penalties can be imposed for negligence, substantial understatement of tax, reportable transaction understatements, and fraud. How to amend 2010 tax return online See sections 6662, 6662A, and 6663 of the Internal Revenue Code. How to amend 2010 tax return online Estimated Tax Generally, a corporation must make installment payments if it expects its estimated tax for the year to be $500 or more. How to amend 2010 tax return online If the corporation does not pay the installments when they are due, it could be subject to an underpayment penalty. How to amend 2010 tax return online This section will explain how to avoid this penalty. How to amend 2010 tax return online When to pay estimated tax. How to amend 2010 tax return online   Installment payments are due by the 15th day of the 4th, 6th, 9th, and 12th months of the corporation's tax year. How to amend 2010 tax return online Example 1. How to amend 2010 tax return online Your corporation's tax year ends December 31. How to amend 2010 tax return online Installment payments are due on April 15, June 15, September 15, and December 15. How to amend 2010 tax return online Example 2. How to amend 2010 tax return online Your corporation's tax year ends June 30. How to amend 2010 tax return online Installment payments are due on October 15, December 15, March 15, and June 15. How to amend 2010 tax return online   If any due date falls on a Saturday, Sunday, or legal holiday, the installment is due on the next business day. How to amend 2010 tax return online How to figure each required installment. How to amend 2010 tax return online   Use Form 1120-W, Estimated Tax for Corporations, as a worksheet to figure each required installment of estimated tax. How to amend 2010 tax return online You will generally use one of the following two methods to figure each required installment. How to amend 2010 tax return online You should use the method that yields the smallest installment payments. How to amend 2010 tax return online Note. How to amend 2010 tax return online In these discussions, “return” generally refers to the corporation's original return. How to amend 2010 tax return online However, an amended return is considered the original return if it is filed by the due date (including extensions) of the original return. How to amend 2010 tax return online Method 1. How to amend 2010 tax return online   Each required installment is 25% of the income tax the corporation will show on its return for the current year. How to amend 2010 tax return online Method 2. How to amend 2010 tax return online   Each required installment is 25% of the income tax shown on the corporation's return for the previous year. How to amend 2010 tax return online   To use Method 2: The corporation must have filed a return for the previous year, The return must have been for a full 12 months, and The return must have shown a positive tax liability (not zero). How to amend 2010 tax return online Also, if the corporation is a large corporation, it can use Method 2 to figure the first installment only. How to amend 2010 tax return online   See the Instructions for Form 1120-W, for the definition of a large corporation and other special rules for large corporations. How to amend 2010 tax return online Other methods. How to amend 2010 tax return online   If a corporation's income is expected to vary during the year because, for example, its business is seasonal, it may be able to lower the amount of one or more required installments by using one or both of the following methods. How to amend 2010 tax return online The annualized income installment method. How to amend 2010 tax return online The adjusted seasonal installment method. How to amend 2010 tax return online Use Schedule A of Form 1120-W to determine if using one or both of these methods will lower the amount of any required installments. How to amend 2010 tax return online Refiguring required installments. How to amend 2010 tax return online   If after the corporation figures and deposits its estimated tax it finds that its tax liability for the year will be more or less than originally estimated, it may have to refigure its required installments to see if an underpayment penalty may apply. How to amend 2010 tax return online An immediate catchup payment should be made to reduce any penalty resulting from the underpayment of any earlier installments. How to amend 2010 tax return online Underpayment penalty. How to amend 2010 tax return online   If the corporation does not pay a required installment of estimated tax by its due date, it may be subject to a penalty. How to amend 2010 tax return online The penalty is figured separately for each installment due date. How to amend 2010 tax return online The corporation may owe a penalty for an earlier due date, even if it paid enough tax later to make up the underpayment. How to amend 2010 tax return online This is true even if the corporation is due a refund when its return is filed. How to amend 2010 tax return online Form 2220. How to amend 2010 tax return online   Use Form 2220, Underpayment of Estimated Tax by Corporations, to determine if a corporation is subject to the penalty for underpayment of estimated tax and to figure the amount of the penalty. How to amend 2010 tax return online   If the corporation is charged a penalty, the amount of the penalty depends on the following three factors. How to amend 2010 tax return online The amount of the underpayment. How to amend 2010 tax return online The period during which the underpayment was due and unpaid. How to amend 2010 tax return online The interest rate for underpayments published quarterly by the IRS in the Internal Revenue Bulletin. How to amend 2010 tax return online   A corporation generally does not have to file Form 2220 with its income tax return because the IRS will figure any penalty and bill the corporation. How to amend 2010 tax return online However, even if the corporation does not owe a penalty, complete and attach the form to the corporation's tax return if any of the following apply. How to amend 2010 tax return online The annualized income installment method was used to figure any required installment. How to amend 2010 tax return online The adjusted seasonal installment method was used to figure any required installment. How to amend 2010 tax return online The corporation is a large corporation figuring its first required installment based on the prior year's tax. How to amend 2010 tax return online How to pay estimated tax. How to amend 2010 tax return online   A corporation is generally required to use EFTPS to pay its taxes. How to amend 2010 tax return online See Electronic Federal Tax Payment System (EFTPS), earlier. How to amend 2010 tax return online Also see the Instructions for Form 1120-W. How to amend 2010 tax return online Quick refund of overpayments. How to amend 2010 tax return online   A corporation that has overpaid its estimated tax for the tax year may be able to apply for a quick refund. How to amend 2010 tax return online Use Form 4466, Corporation Application for Quick Refund of Overpayment of Estimated Tax, to apply for a quick refund of an overpayment of estimated tax. How to amend 2010 tax return online A corporation can apply for a quick refund if the overpayment is: At least 10% of its expected tax liability, and At least $500. How to amend 2010 tax return online Use Form 4466 to figure the corporation's expected tax liability and the overpayment of estimated tax. How to amend 2010 tax return online File Form 4466 before the 16th day of the 3rd month after the end of the tax year, but before the corporation files its income tax return. How to amend 2010 tax return online Do not file Form 4466 before the end of the corporation's tax year. How to amend 2010 tax return online An extension of time to file the corporation's income tax return will not extend the time for filing Form 4466. How to amend 2010 tax return online The IRS will act on the form within 45 days from the date you file it. How to amend 2010 tax return online U. How to amend 2010 tax return online S. How to amend 2010 tax return online Real Property Interest If a domestic corporation acquires a U. How to amend 2010 tax return online S. How to amend 2010 tax return online real property interest from a foreign person or firm, the corporation may have to withhold tax on the amount it pays for the property. How to amend 2010 tax return online The amount paid includes cash, the fair market value of other property, and any assumed liability. How to amend 2010 tax return online If a domestic corporation distributes a U. How to amend 2010 tax return online S. How to amend 2010 tax return online real property interest to a foreign person or firm, it may have to withhold tax on the fair market value of the property. How to amend 2010 tax return online A corporation that fails to withhold may be liable for the tax, and any penalties and interest that apply. How to amend 2010 tax return online For more information, see section 1445 of the Internal Revenue Code; Publication 515, Withholding of Tax on Nonresident Aliens and Foreign Entities; Form 8288, U. How to amend 2010 tax return online S. How to amend 2010 tax return online Withholding Tax Return for Dispositions by Foreign Persons of U. How to amend 2010 tax return online S. How to amend 2010 tax return online Real Property Interests; and Form 8288-A, Statement of Withholding on Dispositions by Foreign Persons of U. How to amend 2010 tax return online S. How to amend 2010 tax return online Real Property Interests. How to amend 2010 tax return online Accounting Methods An accounting method is a set of rules used to determine when and how income and expenses are reported. How to amend 2010 tax return online Taxable income should be determined using the method of accounting regularly used in keeping the corporation's books and records. How to amend 2010 tax return online In all cases, the method used must clearly show taxable income. How to amend 2010 tax return online Generally, permissible methods include: Cash, Accrual, or Any other method authorized by the Internal Revenue Code. How to amend 2010 tax return online Accrual method. How to amend 2010 tax return online   Generally, a corporation (other than a qualified personal service corporation) must use the accrual method of accounting if its average annual gross receipts exceed $5 million. How to amend 2010 tax return online A corporation engaged in farming operations also must use the accrual method. How to amend 2010 tax return online   If inventories are required, the accrual method generally must be used for sales and purchases of merchandise. How to amend 2010 tax return online However, qualifying taxpayers and eligible businesses of qualifying small business taxpayers are excepted from using the accrual method for eligible trades or businesses and may account for inventoriable items as materials and supplies that are not incidental. How to amend 2010 tax return online   Under the accrual method, an amount is includable in income when: All the events have occurred that fix the right to receive the income, which is the earliest of the date: The required performance takes place, Payment is due, or Payment is received; and The amount can be determined with reasonable accuracy. How to amend 2010 tax return online   Generally, an accrual basis taxpayer can deduct accrued expenses in the tax year when: All events that determine the liability have occurred, The amount of the liability can be figured with reasonable accuracy, and Economic performance takes place with respect to the expense. How to amend 2010 tax return online   There are exceptions to the economic performance rule for certain items, including recurring expenses. How to amend 2010 tax return online See section 461(h) of the Internal Revenue Code and the related regulations for the rules for determining when economic performance takes place. How to amend 2010 tax return online Nonaccrual experience method. How to amend 2010 tax return online   Accrual method corporations are not required to maintain accruals for certain amounts from the performance of services that, on the basis of their experience, will not be collected, if: The services are in the fields of health, law, engineering, architecture, accounting, actuarial science, performing arts, or consulting; or The corporation's average annual gross receipts for the 3 prior tax years does not exceed $5 million. How to amend 2010 tax return online   This provision does not apply if interest is required to be paid on the amount or if there is any penalty for failure to pay the amount timely. How to amend 2010 tax return online Percentage of completion method. How to amend 2010 tax return online   Long-term contracts (except for certain real property construction contracts) must generally be accounted for using the percentage of completion method described in section 460 of the Internal Revenue Code. How to amend 2010 tax return online Mark-to-market accounting method. How to amend 2010 tax return online   Generally, dealers in securities must use the mark-to-market accounting method described in section 475 of the Internal Revenue Code. How to amend 2010 tax return online Under this method any security held by a dealer as inventory must be included in inventory at its FMV. How to amend 2010 tax return online Any security not held as inventory at the close of the tax year is treated as sold at its FMV on the last business day of the tax year. How to amend 2010 tax return online Any gain or loss must be taken into account in determining gross income. How to amend 2010 tax return online The gain or loss taken into account is treated as ordinary gain or loss. How to amend 2010 tax return online   Dealers in commodities and traders in securities and commodities can elect to use the mark-to-market accounting method. How to amend 2010 tax return online Change in accounting method. How to amend 2010 tax return online   A corporation can change its method of accounting used to report taxable income (for income as a whole or for the treatment of any material item). How to amend 2010 tax return online The corporation must file Form 3115, Application for Change in Accounting Method. How to amend 2010 tax return online For more information, see Form 3115 and Publication 538. How to amend 2010 tax return online Section 481(a) adjustment. How to amend 2010 tax return online   The corporation may have to make an adjustment under section 481(a) of the Internal Revenue Code to prevent amounts of income or expense from being duplicated or omitted. How to amend 2010 tax return online The section 481(a) adjustment period is generally 1 year for a net negative adjustment and 4 years for a net positive adjustment. How to amend 2010 tax return online However, a corporation can elect to use a 1-year adjustment period if the net section 481(a) adjustment for the change is less than $25,000. How to amend 2010 tax return online The corporation must complete the appropriate lines of Form 3115 to make the election. How to amend 2010 tax return online See the Instructions for Form 3115. How to amend 2010 tax return online Accounting Periods A corporation must figure its taxable income on the basis of a tax year. How to amend 2010 tax return online A tax year is the annual accounting period a corporation uses to keep its records and report its income and expenses. How to amend 2010 tax return online Generally, corporations can use either a calendar year or a fiscal year as its tax year. How to amend 2010 tax return online Unless special rules apply, a corporation generally adopts a tax year by filing its first federal income tax return using that tax year. How to amend 2010 tax return online For more information, see Publication 538. How to amend 2010 tax return online Personal service corporation. How to amend 2010 tax return online   A personal service corporation must use a calendar year as its tax year unless: It elects to use a 52–53 week tax year that ends with reference to the calendar year; It can establish a business purpose for a different tax year and obtains approval of the IRS. How to amend 2010 tax return online See Form 1128, Application To Adopt, Change, or Retain a Tax Year, and Publication 538; or It elects under section 444 of the Internal Revenue Code to have a tax year other than a calendar year. How to amend 2010 tax return online Use Form 8716, Election to Have a Tax Year Other Than a Required Tax Year, to make the election. How to amend 2010 tax return online   If a personal service corporation makes a section 444 election, its deduction for certain amounts paid to employee-owners may be limited. How to amend 2010 tax return online See Schedule H (Form 1120), Section 280H Limitations for a Personal Service Corporation (PSC), to figure the maximum deduction. How to amend 2010 tax return online Change of tax year. How to amend 2010 tax return online   Generally, a corporation must get the consent of the IRS before changing its tax year by filing Form 1128. How to amend 2010 tax return online However, under certain conditions, a corporation can change its tax year without getting the consent. How to amend 2010 tax return online For more information, see Form 1128 and Publication 538. How to amend 2010 tax return online Recordkeeping A corporation should keep its records for as long as they may be needed for the administration of any provision of the Internal Revenue Code. How to amend 2010 tax return online Usually records that support items of income, deductions, or credits on the return must be kept for 3 years from the date the return is due or filed, whichever is later. How to amend 2010 tax return online Keep records that verify the corporation's basis in property for as long as they are needed to figure the basis of the original or replacement property. How to amend 2010 tax return online The corporation should keep copies of all filed returns. How to amend 2010 tax return online They help in preparing future and amended returns and in the calculation of earnings and profits. How to amend 2010 tax return online Income, Deductions, and Special Provisions Rules on income and deductions that apply to individuals also apply, for the most part, to corporations. How to amend 2010 tax return online However, the following special provisions apply only to corporations. How to amend 2010 tax return online Costs of Going Into Business When you go into business, treat all costs you incur to get your business started as capital expenses. How to amend 2010 tax return online However, a corporation can elect to deduct a limited amount of start-up or organizational costs. How to amend 2010 tax return online Any costs not deducted can be amortized. How to amend 2010 tax return online Start-up costs are costs for creating an active trade or business or investigating the creation or acquisition of an active trade or business. How to amend 2010 tax return online Organizational costs are the direct costs of creating the corporation. How to amend 2010 tax return online For more information on deducting or amortizing start-up and organizational costs, see the instructions for your income tax return. How to amend 2010 tax return online Also see, Publication 535, chapter 7, Costs You Can Deduct or Capitalize, and chapter 8, Amortization. How to amend 2010 tax return online Related Persons A corporation that uses an accrual method of accounting cannot deduct business expenses and interest owed to a related person who uses the cash method of accounting until the corporation makes the payment and the corresponding amount is includible in the related person's gross income. How to amend 2010 tax return online Determine the relationship, for this rule, as of the end of the tax year for which the expense or interest would otherwise be deductible. How to amend 2010 tax return online If a deduction is denied, the rule will continue to apply even if the corporation's relationship with the person ends before the expense or interest is includible in the gross income of that person. How to amend 2010 tax return online These rules also deny the deduction of losses on the sale or exchange of property between related persons. How to amend 2010 tax return online Related persons. How to amend 2010 tax return online   For purposes of this rule, the following persons are related to a corporation. How to amend 2010 tax return online Another corporation, that is a member of the same controlled group (as defined in section 267(f) of the Internal Revenue Code). How to amend 2010 tax return online An individual who owns, directly or indirectly, more than 50% of the value of the outstanding stock of the corporation. How to amend 2010 tax return online A trust fiduciary, when the trust or the grantor of the trust owns, directly or indirectly, more than 50% in value of the outstanding stock of the corporation. How to amend 2010 tax return online An S corporation, if the same persons own more than 50% in value of the outstanding stock of each corporation. How to amend 2010 tax return online A partnership, if the same persons own more than 50% in value of the outstanding stock of the corporation and more than 50% of the capital or profits interest in the partnership. How to amend 2010 tax return online Any employee-owner, if the corporation is a personal service corporation (see Personal service corporation, earlier), regardless of the amount of stock owned by the employee-owner. How to amend 2010 tax return online Ownership of stock. How to amend 2010 tax return online   To determine whether an individual directly or indirectly owns any of the outstanding stock of a corporation, the following apply. How to amend 2010 tax return online Stock owned, directly or indirectly, by or for a corporation, partnership, estate, or trust, is treated as being owned proportionately by or for its shareholders, partners, or beneficiaries. How to amend 2010 tax return online An individual is treated as owning the stock owned, directly or indirectly, by or for the individual's family. How to amend 2010 tax return online Family includes only brothers and sisters (including half brothers and half sisters), a spouse, ancestors, and lineal descendants. How to amend 2010 tax return online Any individual owning (other than by applying (2), above) stock in a corporation, is treated as also owning the stock owned directly or indirectly by that individual's partner. How to amend 2010 tax return online To apply (1), (2), or (3), above, stock constructively owned by a person under (1) is treated as actually owned by that person. How to amend 2010 tax return online But stock constructively owned by an individual under (2) or (3) is not treated as actually owned by the individual for applying either (2) or (3) to make another person the constructive owner of that stock. How to amend 2010 tax return online Reallocation of income and deductions. How to amend 2010 tax return online   Where it is necessary to clearly show income or prevent tax evasion, the IRS can reallocate gross income, deductions, credits, or allowances between two or more organizations, trades, or businesses owned or controlled directly, or indirectly, by the same interests. How to amend 2010 tax return online Complete liquidations. How to amend 2010 tax return online   The disallowance of losses from the sale or exchange of property between related persons does not apply to liquidating distributions. How to amend 2010 tax return online More information. How to amend 2010 tax return online   For more information about the related person rules, see Publication 544. How to amend 2010 tax return online Income From Qualifying Shipping Activities A corporation may make an election to be taxed on its notional shipping income at the highest corporate tax rate. How to amend 2010 tax return online If a corporation makes this election it may exclude income from qualifying shipping activities from gross income. How to amend 2010 tax return online Also if the election is made, the corporation generally may not claim any loss, deduction, or credit with respect to qualifying shipping activities. How to amend 2010 tax return online A corporation making this election may also elect to defer gain on the disposition of a qualifying vessel. How to amend 2010 tax return online A corporation uses Form 8902, Alternative Tax on Qualifying Shipping Activities, to make the election and figure the alternative tax. How to amend 2010 tax return online For more information regarding the election, see Form 8902. How to amend 2010 tax return online Election to Expense Qualified Refinery Property A corporation can make an irrevocable election on its tax return filed by the due date (including extensions) to deduct 50% of the cost of qualified refinery property (defined in section 179C(c) of the Internal Revenue Code), placed in service before January 1, 2014. How to amend 2010 tax return online The deduction is allowed for the year in which the property is placed in service. How to amend 2010 tax return online A subchapter T cooperative can make an irrevocable election on its return by the due date (including extensions) to allocate this deduction to its owners based on their ownership interest. How to amend 2010 tax return online For more information, see section 179C of the Internal Revenue Code and the related Regulations. How to amend 2010 tax return online Deduction to Comply With EPA Sulfur Regulations A small business refiner can make an irrevocable election on its tax return filed by the due date (including extensions) to deduct up to 75% of qualified costs paid or incurred to comply with the Highway Diesel Fuel Sulfur Control Requirements of the Environmental Protection Agency (EPA). How to amend 2010 tax return online A subchapter T cooperative can make an irrevocable election on its return filed by the due date (including extensions) to allocate the deduction to its owners based on their ownership interest. How to amend 2010 tax return online For more information, see sections 45H and 179B of the Internal Revenue Code and the related Regulations. How to amend 2010 tax return online Energy-Efficient Commercial Building Property Deduction A corporation can claim a deduction for costs associated with energy-efficient commercial building property, placed in service before January 1, 2014. How to amend 2010 tax return online In order to qualify for the deduction: The costs must be associated with depreciable or amortizable property in a Standard 90. How to amend 2010 tax return online 1-2001 domestic building; The property must be either a part of the interior lighting system, the heating, cooling, ventilation and hot water system, or the building envelope (defined in section 179D(c)(1)(C) of the Internal Revenue Code); and The property must be installed as part of a plan to reduce the total annual energy and power costs of the building by 50% or more. How to amend 2010 tax return online The deduction is limited to $1. How to amend 2010 tax return online 80 per square foot of the building less the total amount of deductions taken for this property in prior tax years. How to amend 2010 tax return online Other rules and limitations apply. How to amend 2010 tax return online The corporation must reduce the basis of any property by any deduction taken. How to amend 2010 tax return online The deduction is subject to recapture if the corporation fails to fully implement an energy savings plan. How to amend 2010 tax return online For more information, see section 179D of the Internal Revenue Code. How to amend 2010 tax return online Also see Notice 2006-52, 2006-26 I. How to amend 2010 tax return online R. How to amend 2010 tax return online B. How to amend 2010 tax return online 1175, clarified and amplified by Notice 2008-40, 2008-14 I. How to amend 2010 tax return online R. How to amend 2010 tax return online B. How to amend 2010 tax return online 725, and any successor. How to amend 2010 tax return online Corporate Preference Items A corporation must make special adjustments to certain items before it takes them into account in determining its taxable income. How to amend 2010 tax return online These items are known as corporate preference items and they include the following. How to amend 2010 tax return online Gain on the disposition of section 1250 property. How to amend 2010 tax return online For more information, see section 1250 Property under Depreciation Recapture in chapter 3 of Publication 544. How to amend 2010 tax return online Percentage depletion for iron ore and coal (including lignite). How to amend 2010 tax return online For more information, see Mines and Geothermal Deposits under Mineral Property in chapter 9 of Publication 535. How to amend 2010 tax return online Amortization of pollution control facilities. How to amend 2010 tax return online For more information, see Pollution Control Facilities in chapter 8 of Publication 535 and section 291(a)(5) of the Internal Revenue Code. How to amend 2010 tax return online Mineral exploration and development costs. How to amend 2010 tax return online For more information, see Exploration Costs and Development Costs in chapter 7 of Publication 535. How to amend 2010 tax return online For more information on corporate preference items, see section 291 of the Internal Revenue Code. How to amend 2010 tax return online Dividends-Received Deduction A corporation can deduct a percentage of certain dividends received during its tax year. How to amend 2010 tax return online This section discusses the general rules that apply. How to amend 2010 tax return online The deduction is figured on Form 1120, Schedule C, or the applicable schedule of your income tax return. How to amend 2010 tax return online For more information, see the Instructions for Form 1120, or the instructions for your applicable income tax return. How to amend 2010 tax return online Dividends from domestic corporations. How to amend 2010 tax return online   A corporation can deduct, within certain limits, 70% of the dividends received if the corporation receiving the dividend owns less than 20% of the corporation distributing the dividend. How to amend 2010 tax return online If the corporation owns 20% or more of the distributing corporation's stock, it can, subject to certain limits, deduct 80% of the dividends received. How to amend 2010 tax return online Ownership. How to amend 2010 tax return online   Determine ownership, for these rules, by the amount of voting power and value of the paying corporation's stock (other than certain preferred stock) the receiving corporation owns. How to amend 2010 tax return online Small business investment companies. How to amend 2010 tax return online   Small business investment companies can deduct 100% of the dividends received from taxable domestic corporations. How to amend 2010 tax return online Dividends from regulated investment companies. How to amend 2010 tax return online   Regulated investment company dividends received are subject to certain limits. How to amend 2010 tax return online Capital gain dividends received from a regulated investment company do not qualify for the deduction. How to amend 2010 tax return online For more information, see section 854 of the Internal Revenue Code. How to amend 2010 tax return online No deduction allowed for certain dividends. How to amend 2010 tax return online   Corporations cannot take a deduction for dividends received from the following entities. How to amend 2010 tax return online A real estate investment trust (REIT). How to amend 2010 tax return online A corporation exempt from tax under section 501 or 521 of the Internal Revenue Code either for the tax year of the distribution or the preceding tax year. How to amend 2010 tax return online A corporation whose stock was held less than 46 days during the 91-day period beginning 45 days before the stock became ex-dividend with respect to the dividend. How to amend 2010 tax return online Ex-dividend means the holder has no rights to the dividend. How to amend 2010 tax return online A corporation whose preferred stock was held less than 91 days during the 181-day period beginning 90 days before the stock became ex-dividend with respect to the dividend if the dividends received are for a period or periods totaling more than 366 days. How to amend 2010 tax return online Any corporation, if your corporation is under an obligation (pursuant to a short sale or otherwise) to make related payments with respect to positions in substantially similar or related property. How to amend 2010 tax return online Dividends on deposits. How to amend 2010 tax return online   Dividends on deposits or withdrawable accounts in domestic building and loan associations, mutual savings banks, cooperative banks, and similar organizations are interest, not dividends. How to amend 2010 tax return online They do not qualify for this deduction. How to amend 2010 tax return online Limit on deduction for dividends. How to amend 2010 tax return online   The total deduction for dividends received or accrued is generally limited (in the following order) to: 80% of the difference between taxable income and the 100% deduction allowed for dividends received from affiliated corporations, or by a small business investment company, for dividends received or accrued from 20%-owned corporations, then 70% of the difference between taxable income and the 100% deduction allowed for dividends received from affiliated corporations, or by a small business investment company, for dividends received or accrued from less-than-20%-owned corporations (reducing taxable income by the total dividends received from 20%-owned corporations). How to amend 2010 tax return online Figuring the limit. How to amend 2010 tax return online   In figuring the limit, determine taxable income without the following items. How to amend 2010 tax return online The net operating loss deduction. How to amend 2010 tax return online The domestic production activities deduction. How to amend 2010 tax return online The deduction for dividends received. How to amend 2010 tax return online Any adjustment due to the nontaxable part of an extraordinary dividend (see Extraordinary Dividends, below). How to amend 2010 tax return online Any capital loss carryback to the tax year. How to amend 2010 tax return online Effect of net operating loss. How to amend 2010 tax return online   If a corporation has a net operating loss (NOL) for a tax year, the limit of 80% (or 70%) of taxable income does not apply. How to amend 2010 tax return online To determine whether a corporation has an NOL, figure the dividends-received deduction without the 80% (or 70%) of taxable income limit. How to amend 2010 tax return online Example 1. How to amend 2010 tax return online A corporation loses $25,000 from operations. How to amend 2010 tax return online It receives $100,000 in dividends from a 20%-owned corporation. How to amend 2010 tax return online Its taxable income is $75,000 ($100,000 – $25,000) before the deduction for dividends received. How to amend 2010 tax return online If it claims the full dividends-received deduction of $80,000 ($100,000 × 80%) and combines it with an operations loss of $25,000, it will have an NOL of ($5,000). How to amend 2010 tax return online Therefore, the 80% of taxable income limit does not apply. How to amend 2010 tax return online The corporation can deduct the full $80,000. How to amend 2010 tax return online Example 2. How to amend 2010 tax return online Assume the same facts as in Example 1, except that the corporation only loses $15,000 from operations. How to amend 2010 tax return online Its taxable income is $85,000 before the deduction for dividends received. How to amend 2010 tax return online After claiming the dividends-received deduction of $80,000 ($100,000 × 80%), its taxable income is $5,000. How to amend 2010 tax return online Because the corporation will not have an NOL after applying a full dividends-received deduction, its allowable dividends-received deduction is limited to 80% of its taxable income, or $68,000 ($85,000 × 80%). How to amend 2010 tax return online Extraordinary Dividends If a corporation receives an extraordinary dividend on stock held 2 years or less before the dividend announcement date, it generally must reduce its basis in the stock by the nontaxed part of the dividend. How to amend 2010 tax return online The nontaxed part is any dividends-received deduction allowable for the dividends. How to amend 2010 tax return online Extraordinary dividend. How to amend 2010 tax return online   An extraordinary dividend is any dividend on stock that equals or exceeds a certain percentage of the corporation's adjusted basis in the stock. How to amend 2010 tax return online The percentages are: 5% for stock preferred as to dividends, or 10% for other stock. How to amend 2010 tax return online Treat all dividends received that have ex-dividend dates within an 85-consecutive-day period as one dividend. How to amend 2010 tax return online Treat all dividends received that have ex-dividend dates within a 365-consecutive-day period as extraordinary dividends if the total of the dividends exceeds 20% of the corporation's adjusted basis in the stock. How to amend 2010 tax return online Disqualified preferred stock. How to amend 2010 tax return online   Any dividend on disqualified preferred stock is treated as an extraordinary dividend regardless of the period of time the corporation held the stock. How to amend 2010 tax return online   Disqualified preferred stock is any stock preferred as to dividends if any of the following apply. How to amend 2010 tax return online The stock when issued has a dividend rate that declines (or can reasonably be expected to decline) in the future. How to amend 2010 tax return online The issue price of the stock exceeds its liquidation rights or stated redemption price. How to amend 2010 tax return online The stock is otherwise structured to avoid the rules for extraordinary dividends and to enable corporate shareholders to reduce tax through a combination of dividends-received deductions and loss on the disposition of the stock. How to amend 2010 tax return online   These rules apply to stock issued after July 10, 1989, unless it was issued under a written binding contract in effect on that date, and thereafter, before the issuance of the stock. How to amend 2010 tax return online More information. How to amend 2010 tax return online   For more information on extraordinary dividends, see section 1059 of the Internal Revenue Code. How to amend 2010 tax return online Below-Market Loans If a corporation receives a below-market loan and uses the proceeds for its trade or business, it may be able to deduct the forgone interest. How to amend 2010 tax return online A below-market loan is a loan on which no interest is charged or on which interest is charged at a rate below the applicable federal rate. How to amend 2010 tax return online A below-market loan generally is treated as an arm's-length transaction in which the borrower is considered as having received both the following: A loan in exchange for a note that requires payment of interest at the applicable federal rate, and An additional payment in an amount equal to the forgone interest. How to amend 2010 tax return online Treat the additional payment as a gift, dividend, contribution to capital, payment of compensation, or other payment, depending on the substance of the transaction. How to amend 2010 tax return online Foregone interest. How to amend 2010 tax return online   For any period, forgone interest is equal to: The interest that would be payable for that period if interest accrued on the loan at the applicable federal rate and was payable annually on December 31, minus Any interest actually payable on the loan for the period. How to amend 2010 tax return online See Below-market loans, in chapter 4 of Publication 535 for more information. How to amend 2010 tax return online Charitable Contributions A corporation can claim a limited deduction for charitable contributions made in cash or other property. How to amend 2010 tax return online The contribution is deductible if made to, or for the use of, a qualified organization. How to amend 2010 tax return online For more information on qualified organizations, see Publication 526, Charitable Contributions. How to amend 2010 tax return online Also see, Exempt Organizations Select Check (EO Select Check) at www. How to amend 2010 tax return online irs. How to amend 2010 tax return online gov/charities, the on-line search tool for finding information on organizations eligible to receive tax-deductible contributions. How to amend 2010 tax return online Note. How to amend 2010 tax return online You cannot take a deduction if any of the net earnings of an organization receiving contributions benefit any private shareholder or individual. How to amend 2010 tax return online Cash method corporation. How to amend 2010 tax return online   A corporation using the cash method of accounting deducts contributions in the tax year paid. How to amend 2010 tax return online Accrual method corporation. How to amend 2010 tax return online   A corporation using an accrual method of accounting can choose to deduct unpaid contributions for the tax year the board of directors authorizes them if it pays them by the 15th day of the 3rd month after the close of that tax year. How to amend 2010 tax return online Make the choice by reporting the contribution on the corporation's return for the tax year. How to amend 2010 tax return online A declaration stating that the board of directors adopted the resolution during the tax year must accompany the return. How to amend 2010 tax return online The declaration must include the date the resolution was adopted. How to amend 2010 tax return online Limitations on deduction. How to amend 2010 tax return online   A corporation cannot deduct charitable contributions that exceed 10% of its taxable income for the tax year. How to amend 2010 tax return online Figure taxable income for this purpose without the following. How to amend 2010 tax return online The deduction for charitable contributions. How to amend 2010 tax return online The dividends-received deduction. How to amend 2010 tax return online The deduction allowed under section 249 of the Internal Revenue Code. How to amend 2010 tax return online The domestic production activities deduction. How to amend 2010 tax return online Any net operating loss carryback to the tax year. How to amend 2010 tax return online Any capital loss carryback to the tax year. How to amend 2010 tax return online Farmers and ranchers. How to amend 2010 tax return online    Corporations that are farmers and ranchers should see section 170(b)(2) of the Internal Revenue Code for special rules that may affect the deduction limit. How to amend 2010 tax return online Carryover of excess contributions. How to amend 2010 tax return online   You can carry over, within certain limits, to each of the subsequent 5 years any charitable contributions made during the current year that exceed the 10% limit. How to amend 2010 tax return online You lose any excess not used within that period. How to amend 2010 tax return online For example, if a corporation has a carryover of excess contributions paid in 2010 and it does not use all the excess on its return for 2011, it can carry any excess over to 2012, 2013, 2014, and 2015, if applicable. How to amend 2010 tax return online Any excess not used in 2015 is lost. How to amend 2010 tax return online Do not deduct a carryover of excess contributions in the carryover year until after you deduct contributions made in that year (subject to the 10% limit). How to amend 2010 tax return online You cannot deduct a carryover of excess contributions to the extent it increases a net operating loss carryover. How to amend 2010 tax return online Cash contributions. How to amend 2010 tax return online   A corporation must maintain a record of any contribution of cash, check, or other monetary contribution, regardless of the amount. How to amend 2010 tax return online The record can be a bank record, receipt, letter, or other written communication from the donee indicating the name of the organization, the date of the contribution, and the amount of the contribution. How to amend 2010 tax return online Keep the record of the contribution with the other corporate records. How to amend 2010 tax return online Do not attach the records to the corporation's return. How to amend 2010 tax return online For more information on cash contributions, see Publication 526. How to amend 2010 tax return online Gifts of $250 or more. How to amend 2010 tax return online   Generally, no deduction is allowed for any contribution of $250 or more unless the corporation gets a written acknowledgement from the donee organization. How to amend 2010 tax return online The acknowledgement should show the amount of cash contributed, a description of the property contributed, and either gives a description and a good faith estimate of the value of any goods or services provided in return for the contribution or states that no goods or services were provided in return for the contribution. How to amend 2010 tax return online The acknowledgement should be received by the due date (including extensions) of the return, or, if earlier, the date the return was filed. How to amend 2010 tax return online Keep the acknowledgement with other corporate records. How to amend 2010 tax return online Do not attach the acknowledgement to the return. How to amend 2010 tax return online Contributions of property other than cash. How to amend 2010 tax return online   If a corporation (other than a closely-held or a personal service corporation) claims a deduction of more than $500 for contributions of property other than cash, a schedule describing the property and the method used to determine its fair market value must be attached to the corporation's return. How to amend 2010 tax return online In addition the corporation should keep a record of: The approximate date and manner of acquisition of the donated property and The cost or other basis of the donated property held by the donor for less than 12 months prior to contribution. How to amend 2010 tax return online   Closely held and personal service corporations must complete and attach Form 8283, Noncash Charitable Contributions, to their returns if they claim a deduction of more than $500 for non-cash contributions. How to amend 2010 tax return online For all other corporations, if the deduction claimed for donated property exceeds $5,000, complete Form 8283 and attach it to the corporation's return. How to amend 2010 tax return online   A corporation must obtain a qualified appraisal for all deductions of property claimed in excess of $5,000. How to amend 2010 tax return online A qualified appraisal is not required for the donation of cash, publicly traded securities, inventory, and any qualified vehicles sold by a donee organization without any significant intervening use or material improvement. How to amend 2010 tax return online The appraisal should be maintained with other corporate records and only attached to the corporation's return when the deduction claimed exceeds $500,000; $20,000 for donated art work. How to amend 2010 tax return online   See Form 8283 for more information. How to amend 2010 tax return online Qualified conservation contributions. How to amend 2010 tax return online   If a corporation makes a qualified conservation contribution, the corporation must provide information regarding the legal interest being donated, the fair market value of the underlying property before and after the donation, and a description of the conservation purpose for which the property will be used. How to amend 2010 tax return online For more information, see section 170(h) of the Internal Revenue Code. How to amend 2010 tax return online Contributions of used vehicles. How to amend 2010 tax return online   A corporation is allowed a deduction for the contribution of used motor vehicles, boats, and airplanes. How to amend 2010 tax return online The deduction is limited, and other special rules apply. How to amend 2010 tax return online For more information, see Publication 526. How to amend 2010 tax return online Reduction for contributions of certain property. How to amend 2010 tax return online   For a charitable contribution of property, the corporation must reduce the contribution by the sum of: The ordinary income and short-term capital gain that would have resulted if the property were sold at its FMV and For certain contributions, the long-term capital gain that would have resulted if the property were sold at its FMV. How to amend 2010 tax return online   The reduction for the long-term capital gain applies to: Contributions of tangible personal property for use by an exempt organization for a purpose or function unrelated to the basis for its exemption; Contributions of any property to or for the use of certain private foundations except for stock for which market quotations are readily available; and Contributions of any patent, certain copyrights, trademark, trade name, trade secret, know-how, software (that is a section 197 intangible), or similar property, or applications or registrations of such property. How to amend 2010 tax return online Larger deduction. How to amend 2010 tax return online   A corporation (other than an S corporation) may be able to claim a deduction equal to the lesser of (a) the basis of the donated inventory or property plus one-half of the inventory or property's appreciation (gain if the donated inventory or property was sold at fair market value on the date of the donation), or (b) two times basis of the donated inventory or property. How to amend 2010 tax return online This deduction may be allowed for certain contributions of: Certain inventory and other property made to a donee organization and used solely for the care of the ill, the needy, and infants. How to amend 2010 tax return online Scientific property constructed by the corporation (other than an S corporation, personal holding company, or personal service corporation) and donated no later than 2 years after substantial completion of the construction. How to amend 2010 tax return online The property must be donated to a qualified organization and its original use must be by the donee for research, experimentation, or research training within the United States in the area of physical or biological science. How to amend 2010 tax return online Computer technology and equipment acquired or constructed and donated no later than 3 years after either acquisition or substantial completion of construction to an educational organization for educational purposes within the United States. How to amend 2010 tax return online Contributions to organizations conducting lobbying activities. How to amend 2010 tax return online   Contributions made to an organization that conducts lobbying activities are not deductible if: The lobbying activities relate to matters of direct financial interest to the donor's trade or business and The principal purpose of the contribution was to avoid federal income tax by obtaining a deduction for activities that would have been nondeductible under the lobbying expense rules if conducted directly by the donor. How to amend 2010 tax return online More information. How to amend 2010 tax return online   For more information on charitable contributions, including substantiation and recordkeeping requirements, see section 170 of the Internal Revenue Code, the related regulations, and Publication 526. How to amend 2010 tax return online Capital Losses A corporation can deduct capital losses only up to the amount of its capital gains. How to amend 2010 tax return online In other words, if a corporation has an excess capital loss, it cannot deduct the loss in the current tax year. How to amend 2010 tax return online Instead, it carries the loss to other tax years and deducts it from any net capital gains that occur in those years. How to amend 2010 tax return online A capital loss is carried to other years in the following order. How to amend 2010 tax return online 3 years prior to the loss year. How to amend 2010 tax return online 2 years prior to the loss year. How to amend 2010 tax return online 1 year prior to the loss year. How to amend 2010 tax return online Any loss remaining is carried forward for 5 years. How to amend 2010 tax return online When you carry a net capital loss to another tax year, treat it as a short-term loss. How to amend 2010 tax return online It does not retain its original identity as long term or short term. How to amend 2010 tax return online Example. How to amend 2010 tax return online A calendar year corporation has a net short-term capital gain of $3,000 and a net long-term capital loss of $9,000. How to amend 2010 tax return online The short-term gain offsets some of the long-term loss, leaving a net capital loss of $6,000. How to amend 2010 tax return online The corporation treats this $6,000 as a short-term loss when carried back or forward. How to amend 2010 tax return online The corporation carries the $6,000 short-term loss back 3 years. How to amend 2010 tax return online In year 1, the corporation had a net short-term capital gain of $8,000 and a net long-term capital gain of $5,000. How to amend 2010 tax return online It subtracts the $6,000 short-term loss first from the net short-term gain. How to amend 2010 tax return online This results in a net capital gain for year 1 of $7,000. How to amend 2010 tax return online This consists of a net short-term capital gain of $2,000 ($8,000 − $6,000) and a net long-term capital gain of $5,000. How to amend 2010 tax return online S corporation status. How to amend 2010 tax return online   A corporation may not carry a capital loss from, or to, a year for which it is an S corporation. How to amend 2010 tax return online Rules for carryover and carryback. How to amend 2010 tax return online   When carrying a capital loss from one year to another, the following rules apply. How to amend 2010 tax return online When figuring the current year's net capital loss, you cannot combine it with a capital loss carried from another year. How to amend 2010 tax return online In other words, you can carry capital losses only to years that would otherwise have a total net capital gain. How to amend 2010 tax return online If you carry capital losses from 2 or more years to the same year, deduct the loss from the earliest year first. How to amend 2010 tax return online You cannot use a capital loss carried from another year to produce or increase a net operating loss in the year to which you carry it back. How to amend 2010 tax return online Refunds. How to amend 2010 tax return online   When you carry back a capital loss to an earlier tax year, refigure your tax for that year. How to amend 2010 tax return online If your corrected tax is less than the tax you originally owed, use either Form 1139, Corporate Application for Tentative Refund, or Form 1120X, Amended U. How to amend 2010 tax return online S. How to amend 2010 tax return online Corporation Income Tax Return, to apply for a refund. How to amend 2010 tax return online Form 1139. How to amend 2010 tax return online    A corporation can get a refund faster by using Form 1139. How to amend 2010 tax return online It cannot file Form 1139 before filing the return for the corporation's capital loss year, but it must file Form 1139 no later than 1 year after the year it sustains the capital loss. How to amend 2010 tax return online Form 1120X. How to amend 2010 tax return online   If the corporation does not file Form 1139, it must file Form 1120X to apply for a refund. How to amend 2010 tax return online The corporation must file the Form 1120X within 3 years of the due date, includin