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I Need To Amend My 2012 Taxes

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I Need To Amend My 2012 Taxes

I need to amend my 2012 taxes Index A Adjusted basis, Adjusted Basis Assessments For local benefits, Assessments for local benefits. I need to amend my 2012 taxes Homeowners association, Homeowners association assessments. I need to amend my 2012 taxes Assistance (see Tax help) B Basis, Basis C Certificate, mortgage credit, Who qualifies. I need to amend my 2012 taxes Construction, Construction. I need to amend my 2012 taxes Cooperatives, Special Rules for Cooperatives, Cooperative apartment. I need to amend my 2012 taxes Cost basis, Cost as Basis Credit Mortgage interest, Mortgage Interest Credit D Deduction Home mortgage interest, Deductible Mortgage Interest Real estate taxes, Deductible Real Estate Taxes E Emergency Homeowners' Loan Program, Hardest Hit Fund and Emergency Homeowners' Loan Programs Escrow accounts, Escrow accounts. I need to amend my 2012 taxes F Fire insurance premiums, Items not added to basis and not deductible. I need to amend my 2012 taxes Form 1098, Mortgage Interest Statement 8396, How to claim the credit. I need to amend my 2012 taxes , Figuring the Credit Free tax services, Free help with your tax return. I need to amend my 2012 taxes G Gift of home, Gift Ground rent, Ground rent. I need to amend my 2012 taxes H Help (see Tax help) HFA Hardest Hit Fund, Hardest Hit Fund and Emergency Homeowners' Loan Programs Home Acquisition debt, Home Acquisition Debt Inherited, Inheritance Mortgage interest, Home Mortgage Interest Purchase of, Purchase. I need to amend my 2012 taxes Received as gift, Gift Homeowners association assessments, Homeowners association assessments. I need to amend my 2012 taxes House payment, Your house payment. I need to amend my 2012 taxes Housing allowance, minister or military, Minister's or military housing allowance. I need to amend my 2012 taxes I Improvements, Improvements. I need to amend my 2012 taxes Inheritance, Inheritance Insurance, Nondeductible payments. I need to amend my 2012 taxes , Items not added to basis and not deductible. I need to amend my 2012 taxes Interest Home mortgage, Home Mortgage Interest Prepaid, Prepaid interest. I need to amend my 2012 taxes K Keeping records, Keeping Records L Late payment charge, Late payment charge on mortgage payment. I need to amend my 2012 taxes Local benefits, assessments for, Assessments for local benefits. I need to amend my 2012 taxes M MCC (Mortgage credit certificate), Who qualifies. I need to amend my 2012 taxes Minister's or military housing allowance, Minister's or military housing allowance. I need to amend my 2012 taxes Mortgage credit certificate (MCC), Who qualifies. I need to amend my 2012 taxes Mortgage debt forgiveness, Discharges of qualified principal residence indebtedness. I need to amend my 2012 taxes Mortgage insurance premiums, Mortgage Insurance Premiums Mortgage interest Credit, Mortgage Interest Credit Deduction, Deductible Mortgage Interest Late payment charge, Late payment charge on mortgage payment. I need to amend my 2012 taxes Paid at settlement, Mortgage Interest Paid at Settlement Refund, Refund of home mortgage interest. I need to amend my 2012 taxes , Refund of overpaid interest. I need to amend my 2012 taxes Statement, Mortgage Interest Statement Mortgage prepayment penalty, Mortgage prepayment penalty. I need to amend my 2012 taxes N Nondeductible payments, Nondeductible payments. I need to amend my 2012 taxes , Items not added to basis and not deductible. I need to amend my 2012 taxes P Points, Points Prepaid interest, Prepaid interest. I need to amend my 2012 taxes Publications (see Tax help) R Real estate taxes, Real Estate Taxes Deductible, Deductible Real Estate Taxes Paid at settlement or closing, Real estate taxes paid at settlement or closing. I need to amend my 2012 taxes , Real estate taxes. I need to amend my 2012 taxes Refund or rebate, Refund or rebate of real estate taxes. I need to amend my 2012 taxes Recordkeeping, Keeping Records Refund of Mortgage interest, Refund of home mortgage interest. I need to amend my 2012 taxes , Refund of overpaid interest. I need to amend my 2012 taxes Real estate taxes, Refund or rebate of real estate taxes. I need to amend my 2012 taxes Repairs, Repairs versus improvements. I need to amend my 2012 taxes S Sales taxes, Sales Taxes Settlement or closing costs Basis of home, Settlement or closing costs. I need to amend my 2012 taxes Mortgage interest, Mortgage Interest Paid at Settlement Real estate taxes, Real estate taxes paid at settlement or closing. I need to amend my 2012 taxes , Real estate taxes. I need to amend my 2012 taxes Stamp taxes, Transfer taxes (or stamp taxes). I need to amend my 2012 taxes Statement, mortgage interest, Mortgage Interest Statement T Tax help, How To Get Tax Help Taxes Real estate, Real Estate Taxes, Refund of real estate taxes. I need to amend my 2012 taxes Transfer taxes, Transfer taxes (or stamp taxes). I need to amend my 2012 taxes W What you can and cannot deduct, What You Can and Cannot Deduct Prev  Up     Home   More Online Publications
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The I Need To Amend My 2012 Taxes

I need to amend my 2012 taxes Publication 583 - Main Content Table of Contents What New Business Owners Need To Know Forms of BusinessMore information. I need to amend my 2012 taxes More information. I need to amend my 2012 taxes Exception—Community Income. I need to amend my 2012 taxes Exception—Qualified joint venture. I need to amend my 2012 taxes More information. I need to amend my 2012 taxes More information. I need to amend my 2012 taxes Identification NumbersEmployer Identification Number (EIN) Payee's Identification Number Tax Year Accounting Method Business TaxesIncome Tax Self-Employment Tax Employment Taxes Excise Taxes Depositing Taxes Information Returns PenaltiesWaiver of penalty. I need to amend my 2012 taxes Business ExpensesBusiness Start-Up Costs Depreciation Business Use of Your Home Car and Truck Expenses RecordkeepingWhy Keep Records? Kinds of Records To Keep How Long To Keep Records Sample Record System How to Get More InformationInternal Revenue Service Small Business Administration Other Federal Agencies What New Business Owners Need To Know As a new business owner, you need to know your federal tax responsibilities. I need to amend my 2012 taxes Table 1 can help you learn what those responsibilities are. I need to amend my 2012 taxes Ask yourself each question listed in the table, then see the related discussion to find the answer. I need to amend my 2012 taxes In addition to knowing about federal taxes, you need to make some basic business decisions. I need to amend my 2012 taxes Ask yourself: What are my financial resources? What products and services will I sell? How will I market my products and services? How will I develop a strategic business plan? How will I manage my business on a day-to-day basis? How will I recruit employees? The Small Business Administration (SBA) is a federal agency that can help you answer these types of questions. I need to amend my 2012 taxes For information on how to contact the SBA, see How to Get More Information, later. I need to amend my 2012 taxes Forms of Business The most common forms of business are the sole proprietorship, partnership, and corporation. I need to amend my 2012 taxes When beginning a business, you must decide which form of business to use. I need to amend my 2012 taxes Legal and tax considerations enter into this decision. I need to amend my 2012 taxes Only tax considerations are discussed in this publication. I need to amend my 2012 taxes Your form of business determines which income tax return form you have to file. I need to amend my 2012 taxes See Table 2 to find out which form you have to file. I need to amend my 2012 taxes Sole proprietorships. I need to amend my 2012 taxes   A sole proprietorship is an unincorporated business that is owned by one individual. I need to amend my 2012 taxes It is the simplest form of business organization to start and maintain. I need to amend my 2012 taxes The business has no existence apart from you, the owner. I need to amend my 2012 taxes Its liabilities are your personal liabilities. I need to amend my 2012 taxes You undertake the risks of the business for all assets owned, whether or not used in the business. I need to amend my 2012 taxes You include the income and expenses of the business on your personal tax return. I need to amend my 2012 taxes More information. I need to amend my 2012 taxes   For more information on sole proprietorships, see Publication 334, Tax Guide for Small Business. I need to amend my 2012 taxes If you are a farmer, see Publication 225, Farmer's Tax Guide. I need to amend my 2012 taxes Partnerships. I need to amend my 2012 taxes   A partnership is the relationship existing between two or more persons who join to carry on a trade or business. I need to amend my 2012 taxes Each person contributes money, property, labor, or skill, and expects to share in the profits and losses of the business. I need to amend my 2012 taxes   A partnership must file an annual information return to report the income, deductions, gains, losses, etc. I need to amend my 2012 taxes , from its operations, but it does not pay income tax. I need to amend my 2012 taxes Instead, it “passes through” any profits or losses to its partners. I need to amend my 2012 taxes Each partner includes his or her share of the partnership's items on his or her tax return. I need to amend my 2012 taxes More information. I need to amend my 2012 taxes   For more information on partnerships, see Publication 541, Partnerships. I need to amend my 2012 taxes Husband and wife business. I need to amend my 2012 taxes   If you and your spouse jointly own and operate an unincorporated business and share in the profits and losses, you are partners in a partnership, whether or not you have a formal partnership agreement. I need to amend my 2012 taxes Do not use Schedule C or C-EZ. I need to amend my 2012 taxes Instead, file Form 1065, U. I need to amend my 2012 taxes S. I need to amend my 2012 taxes Return of Partnership Income. I need to amend my 2012 taxes For more information, see Publication 541, Partnerships. I need to amend my 2012 taxes Exception—Community Income. I need to amend my 2012 taxes   If you and your spouse wholly own an unincorporated business as community property under the community property laws of a state, foreign country, or U. I need to amend my 2012 taxes S. I need to amend my 2012 taxes possession, you can treat the business either as a sole proprietorship or a partnership. I need to amend my 2012 taxes The only states with community property laws are Arizona, California, Idaho, Louisiana, Nevada, New Mexico, Texas, Washington, and Wisconsin. I need to amend my 2012 taxes A change in your reporting position will be treated as a conversion of the entity. I need to amend my 2012 taxes Exception—Qualified joint venture. I need to amend my 2012 taxes   If you and your spouse each materially participate as the only members of a jointly owned and operated business, and you file a joint return for the tax year, you can make a joint election to be treated as a qualified joint venture instead of a partnership for the tax year. I need to amend my 2012 taxes Making this election will allow you to avoid the complexity of Form 1065 but still give each spouse credit for social security earnings on which retirement benefits are based. I need to amend my 2012 taxes For an explanation of "material participation," see the Instructions for Schedule C, line G. I need to amend my 2012 taxes   To make this election, you must divide all items of income, gain, loss, deduction, and credit attributable to the business between you and your spouse in accordance with your respective interests in the venture. I need to amend my 2012 taxes Each of you must file a separate Schedule C or C-EZ and a separate Schedule SE. I need to amend my 2012 taxes For more information, see Qualified Joint Venture in the Instructions for Schedule SE. I need to amend my 2012 taxes Corporations. I need to amend my 2012 taxes   In forming a corporation, prospective shareholders exchange money, property, or both, for the corporation's capital stock. I need to amend my 2012 taxes A corporation generally takes the same deductions as a sole proprietorship to figure its taxable income. I need to amend my 2012 taxes A corporation can also take special deductions. I need to amend my 2012 taxes   The profit of a corporation is taxed to the corporation when earned, and then is taxed to the shareholders when distributed as dividends. I need to amend my 2012 taxes However, shareholders cannot deduct any loss of the corporation. I need to amend my 2012 taxes More information. I need to amend my 2012 taxes   For more information on corporations, see Publication 542, Corporations. I need to amend my 2012 taxes S corporations. I need to amend my 2012 taxes   An eligible domestic corporation can avoid double taxation (once to the corporation and again to the shareholders) by electing to be treated as an S corporation. I need to amend my 2012 taxes Generally, an S corporation is exempt from federal income tax other than tax on certain capital gains and passive income. I need to amend my 2012 taxes On their tax returns, the S corporation's shareholders include their share of the corporation's separately stated items of income, deduction, loss, and credit, and their share of nonseparately stated income or loss. I need to amend my 2012 taxes More information. I need to amend my 2012 taxes   For more information on S corporations, see the instructions for Form 2553, Election by a Small Business Corporation, and Form 1120S, U. I need to amend my 2012 taxes S. I need to amend my 2012 taxes Income Tax Return for an S Corporation. I need to amend my 2012 taxes Limited liability company. I need to amend my 2012 taxes   A limited liability company (LLC) is an entity formed under state law by filing articles of organization as an LLC. I need to amend my 2012 taxes The members of an LLC are not personally liable for its debts. I need to amend my 2012 taxes An LLC may be classified for federal income tax purposes as either a partnership, a corporation, or an entity disregarded as an entity separate from its owner by applying the rules in regulations section 301. I need to amend my 2012 taxes 7701-3. I need to amend my 2012 taxes For more information, see the instructions for Form 8832, Entity Classification Election. I need to amend my 2012 taxes Identification Numbers You must have a taxpayer identification number so the IRS can process your returns. I need to amend my 2012 taxes The two most common kinds of taxpayer identification numbers are the social security number (SSN) and the employer identification number (EIN). I need to amend my 2012 taxes An SSN is issued to individuals by the Social Security Administration (SSA) and is in the following format: 000–00–0000. I need to amend my 2012 taxes An EIN is issued to individuals (sole proprietors), partnerships, corporations, and other entities by the IRS and is in the following format: 00–0000000. I need to amend my 2012 taxes You must include your taxpayer identification number (SSN or EIN) on all returns and other documents you send to the IRS. I need to amend my 2012 taxes You must also furnish your number to other persons who use your identification number on any returns or documents they send to the IRS. I need to amend my 2012 taxes This includes returns or documents filed to report the following information. I need to amend my 2012 taxes Interest, dividends, royalties, etc. I need to amend my 2012 taxes , paid to you. I need to amend my 2012 taxes Any amount paid to you as a dependent care provider. I need to amend my 2012 taxes Certain other amounts paid to you that total $600 or more for the year. I need to amend my 2012 taxes If you do not furnish your identification number as required, you may be subject to penalties. I need to amend my 2012 taxes See Penalties, later. I need to amend my 2012 taxes Employer Identification Number (EIN) EINs are used to identify the tax accounts of employers, certain sole proprietors, corporations, partnerships, estates, trusts, and other entities. I need to amend my 2012 taxes If you don't already have an EIN, you need to get one if you: Have employees, Have a qualified retirement plan, Operate your business as a corporation or partnership, or File returns for: Employment taxes, or Excise taxes. I need to amend my 2012 taxes Applying for an EIN. I need to amend my 2012 taxes   You may apply for an EIN: Online—Click on the EIN link at www. I need to amend my 2012 taxes irs. I need to amend my 2012 taxes gov/businesses/small. I need to amend my 2012 taxes The EIN is issued immediately once the application information is validated. I need to amend my 2012 taxes By telephone at 1-800-829-4933. I need to amend my 2012 taxes By mailing or faxing Form SS-4, Application for Employer Identification Number. I need to amend my 2012 taxes When to apply. I need to amend my 2012 taxes   You should apply for an EIN early enough to receive the number by the time you must file a return or statement or make a tax deposit. I need to amend my 2012 taxes If you apply by mail, file Form SS-4 at least 4 weeks before you need an EIN. I need to amend my 2012 taxes If you apply by telephone or through the IRS website, you can get an EIN immediately. I need to amend my 2012 taxes If you apply by fax, you can get an EIN within 4 business days. I need to amend my 2012 taxes   If you do not receive your EIN by the time a return is due, file your return anyway. I need to amend my 2012 taxes Write “Applied for” and the date you applied for the number in the space for the EIN. I need to amend my 2012 taxes Do not use your social security number as a substitute for an EIN on your tax returns. I need to amend my 2012 taxes More than one EIN. I need to amend my 2012 taxes   You should have only one EIN. I need to amend my 2012 taxes If you have more than one EIN and are not sure which to use, contact the Internal Revenue Service Center where you file your return. I need to amend my 2012 taxes Give the numbers you have, the name and address to which each was assigned, and the address of your main place of business. I need to amend my 2012 taxes The IRS will tell you which number to use. I need to amend my 2012 taxes More information. I need to amend my 2012 taxes   For more information about EINs, see Publication 1635, Understanding Your EIN. I need to amend my 2012 taxes Payee's Identification Number In the operation of a business, you will probably make certain payments you must report on information returns (discussed later under Information Returns). I need to amend my 2012 taxes The forms used to report these payments must include the payee's identification number. I need to amend my 2012 taxes Employee. I need to amend my 2012 taxes   If you have employees, you must get an SSN from each of them. I need to amend my 2012 taxes Record the name and SSN of each employee exactly as they are shown on the employee's social security card. I need to amend my 2012 taxes If the employee's name is not correct as shown on the card, the employee should request a new card from the SSA. I need to amend my 2012 taxes This may occur, for example, if the employee's name has changed due to marriage or divorce. I need to amend my 2012 taxes   If your employee does not have an SSN, he or she should file Form SS-5, Application for a Social Security Card, with the SSA. I need to amend my 2012 taxes This form is available at SSA offices or by calling 1-800-772-1213. I need to amend my 2012 taxes It is also available from the SSA website at www. I need to amend my 2012 taxes ssa. I need to amend my 2012 taxes gov. I need to amend my 2012 taxes Other payee. I need to amend my 2012 taxes   If you make payments to someone who is not your employee and you must report the payments on an information return, get that person's SSN. I need to amend my 2012 taxes If you make reportable payments to an organization, such as a corporation or partnership, you must get its EIN. I need to amend my 2012 taxes   To get the payee's SSN or EIN, use Form W-9, Request for Taxpayer Identification Number and Certification. I need to amend my 2012 taxes This form is available from IRS offices or by calling 1-800-829-3676. I need to amend my 2012 taxes It is also available from the IRS website at IRS. I need to amend my 2012 taxes gov. I need to amend my 2012 taxes    If the payee does not provide you with an identification number, you may have to withhold part of the payments as backup withholding. I need to amend my 2012 taxes For information on backup withholding, see the Form W-9 instructions and the General Instructions for Certain Information Returns. I need to amend my 2012 taxes Tax Year You must figure your taxable income and file an income tax return based on an annual accounting period called a tax year. I need to amend my 2012 taxes A tax year is usually 12 consecutive months. I need to amend my 2012 taxes There are two kinds of tax years. I need to amend my 2012 taxes Calendar tax year. I need to amend my 2012 taxes A calendar tax year is 12 consecutive months beginning January 1 and ending December 31. I need to amend my 2012 taxes Fiscal tax year. I need to amend my 2012 taxes A fiscal tax year is 12 consecutive months ending on the last day of any month except December. I need to amend my 2012 taxes A 52-53-week tax year is a fiscal tax year that varies from 52 to 53 weeks but does not have to end on the last day of a month. I need to amend my 2012 taxes If you file your first tax return using the calendar tax year and you later begin business as a sole proprietor, become a partner in a partnership, or become a shareholder in an S corporation, you must continue to use the calendar year unless you get IRS approval to change it or are otherwise allowed to change it without IRS approval. I need to amend my 2012 taxes You must use a calendar tax year if: You keep no books. I need to amend my 2012 taxes You have no annual accounting period. I need to amend my 2012 taxes Your present tax year does not qualify as a fiscal year. I need to amend my 2012 taxes You are required to use a calendar year by a provision of the Internal Revenue Code or the Income Tax Regulations. I need to amend my 2012 taxes For more information, see Publication 538, Accounting Periods and Methods. I need to amend my 2012 taxes First-time filer. I need to amend my 2012 taxes   If you have never filed an income tax return, you can adopt either a calendar tax year or a fiscal tax year. I need to amend my 2012 taxes You adopt a tax year by filing your first income tax return using that tax year. I need to amend my 2012 taxes You have not adopted a tax year if you merely did any of the following. I need to amend my 2012 taxes Filed an application for an extension of time to file an income tax return. I need to amend my 2012 taxes Filed an application for an employer identification number. I need to amend my 2012 taxes Paid estimated taxes for that tax year. I need to amend my 2012 taxes Changing your tax year. I need to amend my 2012 taxes   Once you have adopted your tax year, you may have to get IRS approval to change it. I need to amend my 2012 taxes To get approval, you must file Form 1128, Application To Adopt, Change, or Retain a Tax Year. I need to amend my 2012 taxes You may have to pay a fee. I need to amend my 2012 taxes For more information, see Publication 538. I need to amend my 2012 taxes Accounting Method An accounting method is a set of rules used to determine when and how income and expenses are reported. I need to amend my 2012 taxes You choose an accounting method for your business when you file your first income tax return. I need to amend my 2012 taxes There are two basic accounting methods. I need to amend my 2012 taxes Cash method. I need to amend my 2012 taxes Under the cash method, you report income in the tax year you receive it. I need to amend my 2012 taxes You usually deduct or capitalize expenses in the tax year you pay them. I need to amend my 2012 taxes Accrual method. I need to amend my 2012 taxes Under an accrual method, you generally report income in the tax year you earn it, even though you may receive payment in a later year. I need to amend my 2012 taxes You deduct or capitalize expenses in the tax year you incur them, whether or not you pay them that year. I need to amend my 2012 taxes For other methods, see Publication 538. I need to amend my 2012 taxes If you need inventories to show income correctly, you must generally use an accrual method of accounting for purchases and sales. I need to amend my 2012 taxes Inventories include goods held for sale in the normal course of business. I need to amend my 2012 taxes They also include raw materials and supplies that will physically become a part of merchandise intended for sale. I need to amend my 2012 taxes Inventories are explained in Publication 538. I need to amend my 2012 taxes Certain small business taxpayers can use the cash method of accounting and can also account for inventoriable items as materials and supplies that are not incidental. I need to amend my 2012 taxes For more information, see Publication 538. I need to amend my 2012 taxes You must use the same accounting method to figure your taxable income and to keep your books. I need to amend my 2012 taxes Also, you must use an accounting method that clearly shows your income. I need to amend my 2012 taxes In general, any accounting method that consistently uses accounting principles suitable for your trade or business clearly shows income. I need to amend my 2012 taxes An accounting method clearly shows income only if it treats all items of gross income and expense the same from year to year. I need to amend my 2012 taxes More than one business. I need to amend my 2012 taxes   When you own more than one business, you can use a different accounting method for each business if the method you use for each clearly shows your income. I need to amend my 2012 taxes You must keep a complete and separate set of books and records for each business. I need to amend my 2012 taxes Changing your method of accounting. I need to amend my 2012 taxes   Once you have set up your accounting method, you must generally get IRS approval before you can change to another method. I need to amend my 2012 taxes A change in accounting method not only includes a change in your overall system of accounting, but also a change in the treatment of any material item. I need to amend my 2012 taxes For examples of changes that require approval and information on how to get approval for the change, see Publication 538. I need to amend my 2012 taxes Business Taxes The form of business you operate determines what taxes you must pay and how you pay them. I need to amend my 2012 taxes The following are the four general kinds of business taxes. I need to amend my 2012 taxes Income tax. I need to amend my 2012 taxes Self-employment tax. I need to amend my 2012 taxes Employment taxes. I need to amend my 2012 taxes Excise taxes. I need to amend my 2012 taxes See Table 2 for the forms you file to report these taxes. I need to amend my 2012 taxes You may want to get Publication 509. I need to amend my 2012 taxes It has tax calendars that tell you when to file returns and make tax payments. I need to amend my 2012 taxes Income Tax All businesses except partnerships must file an annual income tax return. I need to amend my 2012 taxes Partnerships file an information return. I need to amend my 2012 taxes Which form you use depends on how your business is organized. I need to amend my 2012 taxes See Table 2 to find out which return you have to file. I need to amend my 2012 taxes The federal income tax is a pay-as-you-go tax. I need to amend my 2012 taxes You must pay the tax as you earn or receive income during the year. I need to amend my 2012 taxes An employee usually has income tax withheld from his or her pay. I need to amend my 2012 taxes If you do not pay your tax through withholding, or do not pay enough tax that way, you might have to pay estimated tax. I need to amend my 2012 taxes If you are not required to make estimated tax payments, you may pay any tax due when you file your return. I need to amend my 2012 taxes Table 2. I need to amend my 2012 taxes Which Forms Must I File? IF you are a. I need to amend my 2012 taxes . I need to amend my 2012 taxes . I need to amend my 2012 taxes   THEN you may be liable for. I need to amend my 2012 taxes . I need to amend my 2012 taxes . I need to amend my 2012 taxes   Use Form. I need to amend my 2012 taxes . I need to amend my 2012 taxes . I need to amend my 2012 taxes Sole proprietor   Income tax   1040 and Schedule C 1 or C-EZ (Schedule F 1 for farm business)     Self-employment tax   1040 and Schedule SE     Estimated tax   1040-ES     Employment taxes:         • Social security and Medicare   taxes and income tax   withholding   941 or 944 (943 for farm employees)     • Federal unemployment (FUTA)   tax   940     Excise taxes   See Excise Taxes Partnership   Annual return of income   1065     Employment taxes   Same as sole proprietor     Excise taxes   See Excise Taxes Partner in a partnership (individual)   Income tax   1040 and Schedule E 2     Self-employment tax   1040 and Schedule SE     Estimated tax   1040-ES Corporation or S corporation   Income tax   1120 (corporation) 2  1120S (S corporation) 2     Estimated tax   1120-W (corporation only)     Employment taxes   Same as sole proprietor     Excise taxes   See Excise Taxes S corporation shareholder   Income tax   1040 and Schedule E 2     Estimated tax   1040-ES 1 File a separate schedule for each business. I need to amend my 2012 taxes 2 Various other schedules may be needed. I need to amend my 2012 taxes Estimated tax. I need to amend my 2012 taxes   Generally, you must pay taxes on income, including self-employment tax (discussed next), by making regular payments of estimated tax during the year. I need to amend my 2012 taxes Sole proprietors, partners, and S corporation shareholders. I need to amend my 2012 taxes   You generally have to make estimated tax payments if you expect to owe tax of $1,000 or more when you file your return. I need to amend my 2012 taxes Use Form 1040-ES, Estimated Tax for Individuals, to figure and pay your estimated tax. I need to amend my 2012 taxes For more information, see Publication 505, Tax Withholding and Estimated Tax. I need to amend my 2012 taxes Corporations. I need to amend my 2012 taxes   You generally have to make estimated tax payments for your corporation if you expect it to owe tax of $500 or more when you file its return. I need to amend my 2012 taxes Use Form 1120-W, Estimated Tax for Corporations, to figure the estimated tax. I need to amend my 2012 taxes You must deposit the payments as explained later under Depositing Taxes. I need to amend my 2012 taxes For more information, see Publication 542. I need to amend my 2012 taxes Self-Employment Tax Self-employment tax (SE tax) is a social security and Medicare tax primarily for individuals who work for themselves. I need to amend my 2012 taxes Your payments of SE tax contribute to your coverage under the social security system. I need to amend my 2012 taxes Social security coverage provides you with retirement benefits, disability benefits, survivor benefits, and hospital insurance (Medicare) benefits. I need to amend my 2012 taxes You must pay SE tax and file Schedule SE (Form 1040) if either of the following applies. I need to amend my 2012 taxes Your net earnings from self-employment were $400 or more. I need to amend my 2012 taxes You had church employee income of $108. I need to amend my 2012 taxes 28 or more. I need to amend my 2012 taxes Use Schedule SE (Form 1040) to figure your SE tax. I need to amend my 2012 taxes For more information, see Publication 334, Tax Guide for Small Business. I need to amend my 2012 taxes You can deduct a portion of your SE tax as an adjustment to income on your Form 1040. I need to amend my 2012 taxes The Social Security Administration (SSA) time limit for posting self-employment income. I need to amend my 2012 taxes   Generally, the SSA will give you credit only for self-employment income reported on a tax return filed within 3 years, 3 months, and 15 days after the tax year you earned the income. I need to amend my 2012 taxes If you file your tax return or report a change in your self-employment income after this time limit, the SSA may change its records, but only to remove or reduce the amount. I need to amend my 2012 taxes The SSA will not change its records to increase your self-employment income. I need to amend my 2012 taxes Employment Taxes This section briefly discusses the employment taxes you must pay, the forms you must file to report them, and other forms that must be filed when you have employees. I need to amend my 2012 taxes Employment taxes include the following. I need to amend my 2012 taxes Social security and Medicare taxes. I need to amend my 2012 taxes Federal income tax withholding. I need to amend my 2012 taxes Federal unemployment (FUTA) tax. I need to amend my 2012 taxes If you have employees, you will need to get Publication 15, Circular E, Employer's Tax Guide. I need to amend my 2012 taxes If you have agricultural employees, get Publication 51, Circular A, Agricultural Employer's Tax Guide. I need to amend my 2012 taxes These publications explain your tax responsibilities as an employer. I need to amend my 2012 taxes If you are not sure whether the people working for you are your employees, see Publication 15-A, Employer's Supplemental Tax Guide. I need to amend my 2012 taxes That publication has information to help you determine whether an individual is an employee or an independent contractor. I need to amend my 2012 taxes If you classify an employee as an independent contractor, you can be held liable for employment taxes for that worker plus a penalty. I need to amend my 2012 taxes An independent contractor is someone who is self-employed. I need to amend my 2012 taxes Generally, you do not have to withhold or pay any taxes on payments to an independent contractor. I need to amend my 2012 taxes Federal Income, Social Security, and Medicare Taxes You generally must withhold federal income tax from your employee's wages. I need to amend my 2012 taxes To figure how much federal income tax to withhold from each wage payment, use the employee's Form W-4 (discussed later under Hiring Employees) and the methods described in Publication 15. I need to amend my 2012 taxes Social security and Medicare taxes pay for benefits that workers and their families receive under the Federal Insurance Contributions Act (FICA). I need to amend my 2012 taxes Social security tax pays for benefits under the old-age, survivors, and disability insurance part of FICA. I need to amend my 2012 taxes Medicare tax pays for benefits under the hospital insurance part of FICA. I need to amend my 2012 taxes You withhold part of these taxes from your employee's wages and you pay a part yourself. I need to amend my 2012 taxes To find out how much social security and Medicare tax to withhold and to pay, see Publication 15. I need to amend my 2012 taxes Which form do I file?   Report these taxes on Form 941, Employer's QUARTERLY Federal Tax Return, or Form 944, Employer's ANNUAL Federal Tax Return. I need to amend my 2012 taxes (Farm employers use Form 943, Employer's Annual Federal Tax Return for Agricultural Employees. I need to amend my 2012 taxes ) Federal Unemployment (FUTA) Tax The federal unemployment tax is part of the federal and state program under the Federal Unemployment Tax Act (FUTA) that pays unemployment compensation to workers who lose their jobs. I need to amend my 2012 taxes You report and pay FUTA tax separately from social security and Medicare taxes and withheld income tax. I need to amend my 2012 taxes You pay FUTA tax only from your own funds. I need to amend my 2012 taxes Employees do not pay this tax or have it withheld from their pay. I need to amend my 2012 taxes Which form do I file?   Report federal unemployment tax on Form 940, Employer's Annual Federal Unemployment (FUTA) Tax Return. I need to amend my 2012 taxes See Publication 15 to find out if you can use this form. I need to amend my 2012 taxes Hiring Employees Have the employees you hire fill out Form I-9 and Form W-4. I need to amend my 2012 taxes Form I-9. I need to amend my 2012 taxes   You must verify that each new employee is legally eligible to work in the United States. I need to amend my 2012 taxes Both you and the employee must complete the U. I need to amend my 2012 taxes S. I need to amend my 2012 taxes Citizenship and Immigration Services (USCIS) Form I-9, Employment Eligibility Verification. I need to amend my 2012 taxes You can get the form from USCIS offices or from the USCIS website at www. I need to amend my 2012 taxes uscis. I need to amend my 2012 taxes gov. I need to amend my 2012 taxes Call the USCIS at 1-800-375-5283 for more information about your responsibilities. I need to amend my 2012 taxes Form W-4. I need to amend my 2012 taxes   Each employee must fill out Form W-4, Employee's Withholding Allowance Certificate. I need to amend my 2012 taxes You will use the filing status and withholding allowances shown on this form to figure the amount of income tax to withhold from your employee's wages. I need to amend my 2012 taxes For more information, see Publication 15. I need to amend my 2012 taxes Employees claiming more than 10 withholding allowances. I need to amend my 2012 taxes   An employer of an employee who claims more than 10 withholding allowances for wages paid can use several methods of withholding. I need to amend my 2012 taxes See section 16 of Publication 15. I need to amend my 2012 taxes Form W-2 Wage Reporting After the calendar year is over, you must furnish copies of Form W-2, Wage and Tax Statement, to each employee to whom you paid wages during the year. I need to amend my 2012 taxes You must also send copies to the Social Security Administration. I need to amend my 2012 taxes See Information Returns, later, for more information on Form W-2. I need to amend my 2012 taxes Excise Taxes This section describes the excise taxes you may have to pay and the forms you have to file if you do any of the following. I need to amend my 2012 taxes Manufacture or sell certain products. I need to amend my 2012 taxes Operate certain kinds of businesses. I need to amend my 2012 taxes Use various kinds of equipment, facilities, or products. I need to amend my 2012 taxes Receive payment for certain services. I need to amend my 2012 taxes For more information on excise taxes, see Publication 510, Excise Taxes. I need to amend my 2012 taxes Form 720. I need to amend my 2012 taxes   The federal excise taxes reported on Form 720, Quarterly Federal Excise Tax Return, consist of several broad categories of taxes, including the following. I need to amend my 2012 taxes Environmental taxes. I need to amend my 2012 taxes Communications and air transportation taxes. I need to amend my 2012 taxes Fuel taxes. I need to amend my 2012 taxes Tax on the first retail sale of heavy trucks, trailers, and tractors. I need to amend my 2012 taxes Manufacturers taxes on the sale or use of a variety of different articles. I need to amend my 2012 taxes Form 2290. I need to amend my 2012 taxes   There is a federal excise tax on certain trucks, truck tractors, and buses used on public highways. I need to amend my 2012 taxes The tax applies to vehicles having a taxable gross weight of 55,000 pounds or more. I need to amend my 2012 taxes Report the tax on Form 2290, Heavy Highway Vehicle Use Tax Return. I need to amend my 2012 taxes For more information, see the instructions for Form 2290. I need to amend my 2012 taxes Form 730. I need to amend my 2012 taxes   If you are in the business of accepting wagers or conducting a wagering pool or lottery, you may be liable for the federal excise tax on wagering. I need to amend my 2012 taxes Use Form 730, Monthly Tax Return for Wagers, to figure the tax on the wagers you receive. I need to amend my 2012 taxes Form 11-C. I need to amend my 2012 taxes   Use Form 11-C, Occupational Tax and Registration Return for Wagering, to register for any wagering activity and to pay the federal occupational tax on wagering. I need to amend my 2012 taxes Depositing Taxes You generally have to deposit employment taxes, certain excise taxes, corporate income tax, and S corporation taxes before you file your return. I need to amend my 2012 taxes Generally, taxpayers are required to deposit taxes through the Electronic Federal Tax Payment System (EFTPS). I need to amend my 2012 taxes Any business that has a federal tax obligation and requests a new EIN will automatically be enrolled in EFTPS. I need to amend my 2012 taxes Through the mail, the business will receive an EFTPS PIN package that contains instructions for activating its EFTPS enrollment. I need to amend my 2012 taxes Information Returns If you make or receive payments in your business, you may have to report them to the IRS on information returns. I need to amend my 2012 taxes The IRS compares the payments shown on the information returns with each person's income tax return to see if the payments were included in income. I need to amend my 2012 taxes You must give a copy of each information return you are required to file to the recipient or payer. I need to amend my 2012 taxes In addition to the forms described below, you may have to use other returns to report certain kinds of payments or transactions. I need to amend my 2012 taxes For more details on information returns and when you have to file them, see the General Instructions for Certain Information Returns. I need to amend my 2012 taxes Form 1099-MISC. I need to amend my 2012 taxes   Use Form 1099-MISC, Miscellaneous Income, to report certain payments you make in your trade or business. I need to amend my 2012 taxes These payments include the following items. I need to amend my 2012 taxes Payments of $600 or more for services performed for your business by people not treated as your employees, such as subcontractors, attorneys, accountants, or directors. I need to amend my 2012 taxes Rent payments of $600 or more, other than rents paid to real estate agents. I need to amend my 2012 taxes Prizes and awards of $600 or more that are not for services, such as winnings on TV or radio shows. I need to amend my 2012 taxes Royalty payments of $10 or more. I need to amend my 2012 taxes Payments to certain crew members by operators of fishing boats. I need to amend my 2012 taxes You also use Form 1099-MISC to report your sales of $5,000 or more of consumer goods to a person for resale anywhere other than in a permanent retail establishment. I need to amend my 2012 taxes Form W-2. I need to amend my 2012 taxes   You must file Form W-2, Wage and Tax Statement, to report payments to your employees, such as wages, tips, and other compensation, withheld income, social security, and Medicare taxes. I need to amend my 2012 taxes For more information on what to report on Form W-2, see the Instructions for Forms W-2 and W-3. I need to amend my 2012 taxes Form 8300. I need to amend my 2012 taxes   You must file Form 8300, Report of Cash Payments Over $10,000 Received in a Trade or Business, if you receive more than $10,000 in cash in one transaction or two or more related business transactions. I need to amend my 2012 taxes Cash includes U. I need to amend my 2012 taxes S. I need to amend my 2012 taxes and foreign coin and currency. I need to amend my 2012 taxes It also includes certain monetary instruments such as cashier's and traveler's checks and money orders. I need to amend my 2012 taxes For more information, see Publication 1544, Reporting Cash Payments of Over $10,000 (Received in a Trade or Business). I need to amend my 2012 taxes Penalties The law provides penalties for not filing returns or paying taxes as required. I need to amend my 2012 taxes Criminal penalties may be imposed for willful failure to file, tax evasion, or making a false statement. I need to amend my 2012 taxes Failure to file tax returns. I need to amend my 2012 taxes   If you do not file your tax return by the due date, you may have to pay a penalty. I need to amend my 2012 taxes The penalty is based on the tax not paid by the due date. I need to amend my 2012 taxes See your tax return instructions for more information about this penalty. I need to amend my 2012 taxes Failure to pay tax. I need to amend my 2012 taxes   If you do not pay your taxes by the due date, you will have to pay a penalty for each month, or part of a month, that your taxes are not paid. I need to amend my 2012 taxes For more information, see your tax return instructions. I need to amend my 2012 taxes Failure to withhold, deposit, or pay taxes. I need to amend my 2012 taxes   If you do not withhold income, social security, or Medicare taxes from employees, or if you withhold taxes but do not deposit them or pay them to the IRS, you may be subject to a penalty of the unpaid tax, plus interest. I need to amend my 2012 taxes You may also be subject to penalties if you deposit the taxes late. I need to amend my 2012 taxes For more information, see Publication 15. I need to amend my 2012 taxes Failure to follow information reporting requirements. I need to amend my 2012 taxes   The following penalties apply if you are required to file information returns. I need to amend my 2012 taxes For more information, see the General Instructions for Certain Information Returns. I need to amend my 2012 taxes Failure to file information returns. I need to amend my 2012 taxes A penalty applies if you do not file information returns by the due date, if you do not include all required information, or if you report incorrect information. I need to amend my 2012 taxes Failure to furnish correct payee statements. I need to amend my 2012 taxes A penalty applies if you do not furnish a required statement to a payee by the due date, if you do not include all required information, or if you report incorrect information. I need to amend my 2012 taxes Waiver of penalty. I need to amend my 2012 taxes   These penalties will not apply if you can show that the failures were due to reasonable cause and not willful neglect. I need to amend my 2012 taxes   In addition, there is no penalty for failure to include all the required information, or for including incorrect information, on a de minimis number of information returns if you correct the errors by August 1 of the year the returns are due. I need to amend my 2012 taxes (To be considered de minimis, the number of returns cannot exceed the greater of 10 or ½ of 1% of the total number of returns you are required to file for the year. I need to amend my 2012 taxes ) Failure to supply taxpayer identification number. I need to amend my 2012 taxes   If you do not include your taxpayer identification number (SSN or EIN) or the taxpayer identification number of another person where required on a return, statement, or other document, you may be subject to a penalty of $50 for each failure. I need to amend my 2012 taxes You may also be subject to the $50 penalty if you do not give your taxpayer identification number to another person when it is required on a return, statement, or other document. I need to amend my 2012 taxes Business Expenses You can deduct business expenses on your income tax return. I need to amend my 2012 taxes These are the current operating costs of running your business. I need to amend my 2012 taxes To be deductible, a business expense must be both ordinary and necessary. I need to amend my 2012 taxes An ordinary expense is one that is common and accepted in your field of business, trade, or profession. I need to amend my 2012 taxes A necessary expense is one that is helpful and appropriate for your business, trade, or profession. I need to amend my 2012 taxes An expense does not have to be indispensable to be considered necessary. I need to amend my 2012 taxes The following are brief explanations of some expenses that are of interest to people starting a business. I need to amend my 2012 taxes There are many other expenses that you may be able to deduct. I need to amend my 2012 taxes See your form instructions and Publication 535, Business Expenses. I need to amend my 2012 taxes Business Start-Up Costs Business start-up costs are the expenses you incur before you actually begin business operations. I need to amend my 2012 taxes Your business start-up costs will depend on the type of business you are starting. I need to amend my 2012 taxes They may include costs for advertising, travel, surveys, and training. I need to amend my 2012 taxes These costs are generally capital expenses. I need to amend my 2012 taxes You usually recover costs for a particular asset (such as machinery or office equipment) through depreciation (discussed next). I need to amend my 2012 taxes You can elect to deduct up to $5,000 of business start-up costs and $5,000 of organizational costs paid or incurred after October 22, 2004. I need to amend my 2012 taxes The $5,000 deduction is reduced by the amount your total start-up or organizational costs exceed $50,000. I need to amend my 2012 taxes Any remaining cost must be amortized. I need to amend my 2012 taxes For more information about amortizing start-up and organizational costs, see chapter 7 in Publication 535. I need to amend my 2012 taxes Depreciation If property you acquire to use in your business has a useful life that extends substantially beyond the year it is placed in service, you generally cannot deduct the entire cost as a business expense in the year you acquire it. I need to amend my 2012 taxes You must spread the cost over more than one tax year and deduct part of it each year. I need to amend my 2012 taxes This method of deducting the cost of business property is called depreciation. I need to amend my 2012 taxes Business property you must depreciate includes the following items. I need to amend my 2012 taxes Office furniture. I need to amend my 2012 taxes Buildings. I need to amend my 2012 taxes Machinery and equipment. I need to amend my 2012 taxes You can choose to deduct a limited amount of the cost of certain depreciable property in the year you place the property in service. I need to amend my 2012 taxes This deduction is known as the “section 179 deduction. I need to amend my 2012 taxes ” For more information about depreciation and the section 179 deduction, see Publication 946, How To Depreciate Property. I need to amend my 2012 taxes Depreciation must be taken in the year it is allowable. I need to amend my 2012 taxes Allowable depreciation not taken in a prior year cannot be taken in the current year. I need to amend my 2012 taxes If you do not deduct the correct depreciation, you may be able to make a correction by filing Form 1040X, Amended U. I need to amend my 2012 taxes S. I need to amend my 2012 taxes Individual Income Tax Return, or by changing your accounting method. I need to amend my 2012 taxes For more information on how to correct depreciation deductions, see chapter 1 in Publication 946. I need to amend my 2012 taxes Business Use of Your Home To deduct expenses related to the business use of part of your home, you must meet specific requirements. I need to amend my 2012 taxes Even then, your deduction may be limited. I need to amend my 2012 taxes To qualify to claim expenses for business use of your home, you must meet both the following tests. I need to amend my 2012 taxes Your use of the business part of your home must be: Exclusive (however, see Exceptions to exclusive use, later), Regular, For your trade or business, AND The business part of your home must be one of the following: Your principal place of business (defined later), A place where you meet or deal with patients, clients, or customers in the normal course of your trade or business, or A separate structure (not attached to your home) you use in connection with your trade or business. I need to amend my 2012 taxes Exclusive use. I need to amend my 2012 taxes   To qualify under the exclusive use test, you must use a specific area of your home only for your trade or business. I need to amend my 2012 taxes The area used for business can be a room or other separately identifiable space. I need to amend my 2012 taxes The space does not need to be marked off by a permanent partition. I need to amend my 2012 taxes   You do not meet the requirements of the exclusive use test if you use the area in question both for business and for personal purposes. I need to amend my 2012 taxes Exceptions to exclusive use. I need to amend my 2012 taxes   You do not have to meet the exclusive use test if either of the following applies. I need to amend my 2012 taxes You use part of your home for the storage of inventory or product samples. I need to amend my 2012 taxes You use part of your home as a daycare facility. I need to amend my 2012 taxes For an explanation of these exceptions, see Publication 587, Business Use of Your Home (Including Use by Daycare Providers). I need to amend my 2012 taxes Principal place of business. I need to amend my 2012 taxes   Your home office will qualify as your principal place of business for deducting expenses for its use if you meet the following requirements. I need to amend my 2012 taxes You use it exclusively and regularly for administrative or management activities of your trade or business. I need to amend my 2012 taxes You have no other fixed location where you conduct substantial administrative or management activities of your trade or business. I need to amend my 2012 taxes   Alternatively, if you use your home exclusively and regularly for your business, but your home office does not qualify as your principal place of business based on the previous rules, you determine your principal place of business based on the following factors. I need to amend my 2012 taxes The relative importance of the activities performed at each location. I need to amend my 2012 taxes If the relative importance factor does not determine your principal place of business, the time spent at each location. I need to amend my 2012 taxes    If, after considering your business locations, your home cannot be identified as your principal place of business, you cannot deduct home office expenses. I need to amend my 2012 taxes However, for other ways to qualify to deduct home office expenses, see Publication 587. I need to amend my 2012 taxes Which form do I file?   If you file Schedule C (Form 1040), use Form 8829, Expenses for Business Use of Your Home, to figure your deduction. I need to amend my 2012 taxes If you file Schedule F (Form 1040) or you are a partner, you can use the worksheet in Publication 587. I need to amend my 2012 taxes More information. I need to amend my 2012 taxes   For more information about business use of your home, see Publication 587. I need to amend my 2012 taxes Car and Truck Expenses If you use your car or truck in your business, you can deduct the costs of operating and maintaining it. I need to amend my 2012 taxes You generally can deduct either your actual expenses or the standard mileage rate. I need to amend my 2012 taxes Actual expenses. I need to amend my 2012 taxes   If you deduct actual expenses, you can deduct the cost of the following items: Depreciation Lease payments Registration Garage rent Licenses Repairs Gas Oil Tires Insurance Parking fees Tolls   If you use your vehicle for both business and personal purposes, you must divide your expenses between business and personal use. I need to amend my 2012 taxes You can divide your expenses based on the miles driven for each purpose. I need to amend my 2012 taxes Example. I need to amend my 2012 taxes You are the sole proprietor of a flower shop. I need to amend my 2012 taxes You drove your van 20,000 miles during the year. I need to amend my 2012 taxes 16,000 miles were for delivering flowers to customers and 4,000 miles were for personal use. I need to amend my 2012 taxes You can claim only 80% (16,000 ÷ 20,000) of the cost of operating your van as a business expense. I need to amend my 2012 taxes Standard mileage rate. I need to amend my 2012 taxes   Instead of figuring actual expenses, you may be able to use the standard mileage rate to figure the deductible costs of operating your car, van, pickup, or panel truck for business purposes. I need to amend my 2012 taxes You can use the standard mileage rate for a vehicle you own or lease. I need to amend my 2012 taxes The standard mileage rate is a specified amount of money you can deduct for each business mile you drive. I need to amend my 2012 taxes It is announced annually by the IRS. I need to amend my 2012 taxes To figure your deduction, multiply your business miles by the standard mileage rate for the year. I need to amend my 2012 taxes    Generally, if you use the standard mileage rate, you cannot deduct your actual expenses. I need to amend my 2012 taxes However, you may be able to deduct business-related parking fees, tolls, interest on your car loan, and certain state and local taxes. I need to amend my 2012 taxes Choosing the standard mileage rate. I need to amend my 2012 taxes   If you want to use the standard mileage rate for a car you own, you must choose to use it in the first year the car is available for use in your business. I need to amend my 2012 taxes In later years, you can choose to use either the standard mileage rate or actual expenses. I need to amend my 2012 taxes   If you use the standard mileage rate for a car you lease, you must choose to use it for the entire lease period (including renewals). I need to amend my 2012 taxes Additional information. I need to amend my 2012 taxes   For more information about the rules for claiming car and truck expenses, see Publication 463, Travel, Entertainment, Gift, and Car Expenses. I need to amend my 2012 taxes Recordkeeping This part explains why you must keep records, what kinds of records you must keep, and how to keep them. I need to amend my 2012 taxes It also explains how long you must keep your records for federal tax purposes. I need to amend my 2012 taxes A sample recordkeeping system is illustrated at the end of this part. I need to amend my 2012 taxes Why Keep Records? Everyone in business must keep records. I need to amend my 2012 taxes Good records will help you do the following. I need to amend my 2012 taxes Monitor the progress of your business. I need to amend my 2012 taxes   You need good records to monitor the progress of your business. I need to amend my 2012 taxes Records can show whether your business is improving, which items are selling, or what changes you need to make. I need to amend my 2012 taxes Good records can increase the likelihood of business success. I need to amend my 2012 taxes Prepare your financial statements. I need to amend my 2012 taxes   You need good records to prepare accurate financial statements. I need to amend my 2012 taxes These include income (profit and loss) statements and balance sheets. I need to amend my 2012 taxes These statements can help you in dealing with your bank or creditors and help you manage your business. I need to amend my 2012 taxes An income statement shows the income and expenses of the business for a given period of time. I need to amend my 2012 taxes A balance sheet shows the assets, liabilities, and your equity in the business on a given date. I need to amend my 2012 taxes Identify source of receipts. I need to amend my 2012 taxes   You will receive money or property from many sources. I need to amend my 2012 taxes Your records can identify the source of your receipts. I need to amend my 2012 taxes You need this information to separate business from nonbusiness receipts and taxable from nontaxable income. I need to amend my 2012 taxes Keep track of deductible expenses. I need to amend my 2012 taxes   You may forget expenses when you prepare your tax return unless you record them when they occur. I need to amend my 2012 taxes Prepare your tax returns. I need to amend my 2012 taxes   You need good records to prepare your tax returns. I need to amend my 2012 taxes These records must support the income, expenses, and credits you report. I need to amend my 2012 taxes Generally, these are the same records you use to monitor your business and prepare your financial statements. I need to amend my 2012 taxes Support items reported on tax returns. I need to amend my 2012 taxes   You must keep your business records available at all times for inspection by the IRS. I need to amend my 2012 taxes If the IRS examines any of your tax returns, you may be asked to explain the items reported. I need to amend my 2012 taxes A complete set of records will speed up the examination. I need to amend my 2012 taxes Kinds of Records To Keep Except in a few cases, the law does not require any specific kind of records. I need to amend my 2012 taxes You can choose any recordkeeping system suited to your business that clearly shows your income and expenses. I need to amend my 2012 taxes The business you are in affects the type of records you need to keep for federal tax purposes. I need to amend my 2012 taxes You should set up your recordkeeping system using an accounting method that clearly shows your income for your tax year. I need to amend my 2012 taxes See Accounting Method, earlier. I need to amend my 2012 taxes If you are in more than one business, you should keep a complete and separate set of records for each business. I need to amend my 2012 taxes A corporation should keep minutes of board of directors' meetings. I need to amend my 2012 taxes Your recordkeeping system should include a summary of your business transactions. I need to amend my 2012 taxes This summary is ordinarily made in your books (for example, accounting journals and ledgers). I need to amend my 2012 taxes Your books must show your gross income, as well as your deductions and credits. I need to amend my 2012 taxes For most small businesses, the business checkbook (discussed later) is the main source for entries in the business books. I need to amend my 2012 taxes In addition, you must keep supporting documents, explained later. I need to amend my 2012 taxes Electronic records. I need to amend my 2012 taxes   All requirements that apply to hard copy books and records also apply to electronic storage systems that maintain tax books and records. I need to amend my 2012 taxes When you replace hard copy books and records, you must maintain the electronic storage systems for as long as they are material to the administration of tax law. I need to amend my 2012 taxes An electronic storage system is any system for preparing or keeping your records either by electronic imaging or by transfer to an electronic storage media. I need to amend my 2012 taxes The electronic storage system must index, store, preserve, retrieve and reproduce the electronically stored books and records in legible format. I need to amend my 2012 taxes All electronic storage systems must provide a complete and accurate record of your data that is accessible to the IRS. I need to amend my 2012 taxes Electronic storage systems are also subject to the same controls and retention guidelines as those imposed on your original hard copy books and records. I need to amend my 2012 taxes   The original hard copy books and records may be destroyed provided that the electronic storage system has been tested to establish that the hard copy books and records are being reproduced in compliance with IRS requirements for an electronic storage system and procedures are established to ensure continued compliance with all applicable rules and regulations. I need to amend my 2012 taxes You still have the responsibility of retaining any other books and records that are required to be retained. I need to amend my 2012 taxes   The IRS may test your electronic storage system, including the equipment used, indexing methodology, software and retrieval capabilities. I need to amend my 2012 taxes This test is not considered an examination and the results must be shared with you. I need to amend my 2012 taxes If your electronic storage system meets the requirements mentioned earlier, you will be in compliance. I need to amend my 2012 taxes If not, you may be subject to penalties for non-compliance, unless you continue to maintain your original hard copy books and records in a manner that allows you and the IRS to determine your correct tax. I need to amend my 2012 taxes For details on electronic storage system requirements, see Revenue Procedure 97-22, available in Internal Revenue Bulletin 1997-13. I need to amend my 2012 taxes Supporting Documents Purchases, sales, payroll, and other transactions you have in your business generate supporting documents. I need to amend my 2012 taxes Supporting documents include sales slips, paid bills, invoices, receipts, deposit slips, and canceled checks. I need to amend my 2012 taxes These documents contain information you need to record in your books. I need to amend my 2012 taxes It is important to keep these documents because they support the entries in your books and on your tax return. I need to amend my 2012 taxes Keep them in an orderly fashion and in a safe place. I need to amend my 2012 taxes For instance, organize them by year and type of income or expense. I need to amend my 2012 taxes Gross receipts. I need to amend my 2012 taxes   Gross receipts are the income you receive from your business. I need to amend my 2012 taxes You should keep supporting documents that show the amounts and sources of your gross receipts. I need to amend my 2012 taxes Documents that show gross receipts include the following. I need to amend my 2012 taxes Cash register tapes. I need to amend my 2012 taxes Bank deposit slips. I need to amend my 2012 taxes Receipt books. I need to amend my 2012 taxes Invoices. I need to amend my 2012 taxes Credit card charge slips. I need to amend my 2012 taxes Forms 1099-MISC. I need to amend my 2012 taxes Purchases. I need to amend my 2012 taxes   Purchases are the items you buy and resell to customers. I need to amend my 2012 taxes If you are a manufacturer or producer, this includes the cost of all raw materials or parts purchased for manufacture into finished products. I need to amend my 2012 taxes Your supporting documents should show the amount paid and that the amount was for purchases. I need to amend my 2012 taxes Documents for purchases include the following. I need to amend my 2012 taxes Canceled checks. I need to amend my 2012 taxes Cash register tape receipts. I need to amend my 2012 taxes Credit card sales slips. I need to amend my 2012 taxes Invoices. I need to amend my 2012 taxes These records will help you determine the value of your inventory at the end of the year. I need to amend my 2012 taxes See Publication 538 for information on methods for valuing inventory. I need to amend my 2012 taxes Expenses. I need to amend my 2012 taxes   Expenses are the costs you incur (other than purchases) to carry on your business. I need to amend my 2012 taxes Your supporting documents should show the amount paid and that the amount was for a business expense. I need to amend my 2012 taxes Documents for expenses include the following. I need to amend my 2012 taxes Canceled checks. I need to amend my 2012 taxes Cash register tapes. I need to amend my 2012 taxes Account statements. I need to amend my 2012 taxes Credit card sales slips. I need to amend my 2012 taxes Invoices. I need to amend my 2012 taxes Petty cash slips for small cash payments. I need to amend my 2012 taxes    A petty cash fund allows you to make small payments without having to write checks for small amounts. I need to amend my 2012 taxes Each time you make a payment from this fund, you should make out a petty cash slip and attach it to your receipt as proof of payment. I need to amend my 2012 taxes Travel, transportation, entertainment, and gift expenses. I need to amend my 2012 taxes   Specific recordkeeping rules apply to these expenses. I need to amend my 2012 taxes For more information, see Publication 463. I need to amend my 2012 taxes Employment taxes. I need to amend my 2012 taxes   There are specific employment tax records you must keep. I need to amend my 2012 taxes For a list, see Publication 15. I need to amend my 2012 taxes Assets. I need to amend my 2012 taxes   Assets are the property, such as machinery and furniture you own and use in your business. I need to amend my 2012 taxes You must keep records to verify certain information about your business assets. I need to amend my 2012 taxes You need records to figure the annual depreciation and the gain or loss when you sell the assets. I need to amend my 2012 taxes Your records should show the following information. I need to amend my 2012 taxes When and how you acquired the asset. I need to amend my 2012 taxes Purchase price. I need to amend my 2012 taxes Cost of any improvements. I need to amend my 2012 taxes Section 179 deduction taken. I need to amend my 2012 taxes Deductions taken for depreciation. I need to amend my 2012 taxes Deductions taken for casualty losses, such as losses resulting from fires or storms. I need to amend my 2012 taxes How you used the asset. I need to amend my 2012 taxes When and how you disposed of the asset. I need to amend my 2012 taxes Selling price. I need to amend my 2012 taxes Expenses of sale. I need to amend my 2012 taxes   The following documents may show this information. I need to amend my 2012 taxes Purchase and sales invoices. I need to amend my 2012 taxes Real estate closing statements. I need to amend my 2012 taxes Canceled checks. I need to amend my 2012 taxes What if I don't have a canceled check?   If you do not have a canceled check, you may be able to prove payment with certain financial account statements prepared by financial institutions. I need to amend my 2012 taxes These include account statements prepared for the financial institution by a third party. I need to amend my 2012 taxes These account statements must be highly legible. I need to amend my 2012 taxes The following table lists acceptable account statements. I need to amend my 2012 taxes  IF payment is by. I need to amend my 2012 taxes . I need to amend my 2012 taxes . I need to amend my 2012 taxes THEN the statement must show the. I need to amend my 2012 taxes . I need to amend my 2012 taxes . I need to amend my 2012 taxes Check Check number. I need to amend my 2012 taxes Amount. I need to amend my 2012 taxes Payee's name. I need to amend my 2012 taxes Date the check amount was posted to the account by the financial institution. I need to amend my 2012 taxes Electronic funds transfer Amount transferred. I need to amend my 2012 taxes Payee's name. I need to amend my 2012 taxes Date the transfer was posted to the account by the financial institution. I need to amend my 2012 taxes Credit card Amount charged. I need to amend my 2012 taxes Payee's name. I need to amend my 2012 taxes Transaction date. I need to amend my 2012 taxes    Proof of payment of an amount, by itself, does not establish you are entitled to a tax deduction. I need to amend my 2012 taxes You should also keep other documents, such as credit card sales slips and invoices, to show that you also incurred the cost. I need to amend my 2012 taxes Recording Business Transactions A good recordkeeping system includes a summary of your business transactions. I need to amend my 2012 taxes (Your business transactions are shown on the supporting documents just discussed. I need to amend my 2012 taxes ) Business transactions are ordinarily summarized in books called journals and ledgers. I need to amend my 2012 taxes You can buy them at your local stationery or office supply store. I need to amend my 2012 taxes A journal is a book where you record each business transaction shown on your supporting documents. I need to amend my 2012 taxes You may have to keep separate journals for transactions that occur frequently. I need to amend my 2012 taxes A ledger is a book that contains the totals from all of your journals. I need to amend my 2012 taxes It is organized into different accounts. I need to amend my 2012 taxes Whether you keep journals and ledgers and how you keep them depends on the type of business you are in. I need to amend my 2012 taxes For example, a recordkeeping system for a small business might include the following items. I need to amend my 2012 taxes Business checkbook. I need to amend my 2012 taxes Daily summary of cash receipts. I need to amend my 2012 taxes Monthly summary of cash receipts. I need to amend my 2012 taxes Check disbursements journal. I need to amend my 2012 taxes Depreciation worksheet. I need to amend my 2012 taxes Employee compensation record. I need to amend my 2012 taxes The business checkbook is explained next. I need to amend my 2012 taxes The other items are illustrated later under Sample Record System. I need to amend my 2012 taxes The system you use to record business transactions will be more effective if you follow good recordkeeping practices. I need to amend my 2012 taxes For example, record expenses when they occur, and identify the source of recorded receipts. I need to amend my 2012 taxes Generally, it is best to record transactions on a daily basis. I need to amend my 2012 taxes Business checkbook. I need to amend my 2012 taxes   One of the first things you should do when you start a business is open a business checking account. I need to amend my 2012 taxes You should keep your business account separate from your personal checking account. I need to amend my 2012 taxes   The business checkbook is your basic source of information for recording your business expenses. I need to amend my 2012 taxes You should deposit all daily receipts in your business checking account. I need to amend my 2012 taxes You should check your account for errors by reconciling it. I need to amend my 2012 taxes See Reconciling the checking account, later. I need to amend my 2012 taxes   Consider using a checkbook that allows enough space to identify the source of deposits as business income, personal funds, or loans. I need to amend my 2012 taxes You should also note on the deposit slip the source of the deposit and keep copies of all slips. I need to amend my 2012 taxes   You should make all payments by check to document business expenses. I need to amend my 2012 taxes Write checks payable to yourself only when making withdrawals from your business for personal use. I need to amend my 2012 taxes Avoid writing checks payable to cash. I need to amend my 2012 taxes If you must write a check for cash to pay a business expense, include the receipt for the cash payment in your records. I need to amend my 2012 taxes If you cannot get a receipt for a cash payment, you should make an adequate explanation in your records at the time of payment. I need to amend my 2012 taxes    Use the business account for business purposes only. I need to amend my 2012 taxes Indicate the source of deposits and the type of expense in the checkbook. I need to amend my 2012 taxes Reconciling the checking account. I need to amend my 2012 taxes   When you receive your bank statement, make sure the statement, your checkbook, and your books agree. I need to amend my 2012 taxes The statement balance may not agree with the balance in your checkbook and books if the statement: Includes bank charges you did not enter in your books and subtract from your checkbook balance, or Does not include deposits made after the statement date or checks that did not clear your account before the statement date. I need to amend my 2012 taxes   By reconciling your checking account, you will: Verify how much money you have in the account, Make sure that your checkbook and books reflect all bank charges and the correct balance in the checking account, and Correct any errors in your bank statement, checkbook, and books. I need to amend my 2012 taxes    You should reconcile your checking account each month. I need to amend my 2012 taxes     Before you reconcile your monthly bank statement, check your own figures. I need to amend my 2012 taxes Begin with the balance shown in your checkbook at the end of the previous month. I need to amend my 2012 taxes To this balance, add the total cash deposited during the month and subtract the total cash disbursements. I need to amend my 2012 taxes   After checking your figures, the result should agree with your checkbook balance at the end of the month. I need to amend my 2012 taxes If the result does not agree, you may have made an error in recording a check or deposit. I need to amend my 2012 taxes You can find the error by doing the following. I need to amend my 2012 taxes Adding the amounts on your check stubs and comparing that total with the total in the “amount of check” column in your check disbursements journal. I need to amend my 2012 taxes If the totals do not agree, check the individual amounts to see if an error was made in your check stub record or in the related entry in your check disbursements journal. I need to amend my 2012 taxes Adding the deposit amounts in your checkbook. I need to amend my 2012 taxes Compare that total with the monthly total in your cash receipt book, if you have one. I need to amend my 2012 taxes If the totals do not agree, check the individual amounts to find any errors. I need to amend my 2012 taxes   If your checkbook and journal entries still disagree, then refigure the running balance in your checkbook to make sure additions and subtractions are correct. I need to amend my 2012 taxes   When your checkbook balance agrees with the balance figured from the journal entries, you may begin reconciling your checkbook with the bank statement. I need to amend my 2012 taxes Many banks print a reconciliation worksheet on the back of the statement. I need to amend my 2012 taxes   To reconcile your account, follow these steps. I need to amend my 2012 taxes Compare the deposits listed on the bank statement with the deposits shown in your checkbook. I need to amend my 2012 taxes Note all differences in the dollar amounts. I need to amend my 2012 taxes Compare each canceled check, including both check number and dollar amount, with the entry in your checkbook. I need to amend my 2012 taxes Note all differences in the dollar amounts. I need to amend my 2012 taxes Mark the check number in the checkbook as having cleared the bank. I need to amend my 2012 taxes After accounting for all checks returned by the bank, those not marked in your checkbook are your outstanding checks. I need to amend my 2012 taxes Prepare a bank reconciliation. I need to amend my 2012 taxes One is illustrated later under Sample Record System. I need to amend my 2012 taxes Update your checkbook and journals for items shown on the reconciliation as not recorded (such as service charges) or recorded incorrectly. I need to amend my 2012 taxes At this point, the adjusted bank statement balance should equal your adjusted checkbook balance. I need to amend my 2012 taxes If you still have differences, check the previous steps to find the errors. I need to amend my 2012 taxes   Table 3. I need to amend my 2012 taxes Period of Limitations IF you. I need to amend my 2012 taxes . I need to amend my 2012 taxes . I need to amend my 2012 taxes   THEN the period is. I need to amend my 2012 taxes . I need to amend my 2012 taxes . I need to amend my 2012 taxes 1. I need to amend my 2012 taxes Owe additional tax and situations (2), (3), and (4), below, do not apply to you   3 years 2. I need to amend my 2012 taxes Do not report income that you should report and it is more than 25% of the gross income shown on the return   6 years 3. I need to amend my 2012 taxes File a fraudulent return   Not limited 4. I need to amend my 2012 taxes Do not file a return   Not limited 5. I need to amend my 2012 taxes File a claim for credit or refund after you filed your return   Later of: 3 years or  2 years after tax   was paid 6. I need to amend my 2012 taxes File a claim for a loss from worthless securities or a bad debt deduction   7 years Bookkeeping System You must decide whether to use a single-entry or a double-entry bookkeeping system. I need to amend my 2012 taxes The single-entry system of bookkeeping is the simplest to maintain, but it may not be suitable for everyone. I need to amend my 2012 taxes You may find the double-entry system better because it has built-in checks and balances to assure accuracy and control. I need to amend my 2012 taxes Single-entry. I need to amend my 2012 taxes   A single-entry system is based on the income statement (profit or loss statement). I need to amend my 2012 taxes It can be a simple and practical system if you are starting a small business. I need to amend my 2012 taxes The system records the flow of income and expenses through the use of: A daily summary of cash receipts, and Monthly summaries of cash receipts and disbursements. I need to amend my 2012 taxes Double-entry. I need to amend my 2012 taxes   A double-entry bookkeeping system uses journals and ledgers. I need to amend my 2012 taxes Transactions are first entered in a journal and then posted to ledger accounts. I need to amend my 2012 taxes These accounts show income, expenses, assets (property a business owns), liabilities (debts of a business), and net worth (excess of assets over liabilities). I need to amend my 2012 taxes You close income and expense accounts at the end of each tax year. I need to amend my 2012 taxes You keep asset, liability, and net worth accounts open on a permanent basis. I need to amend my 2012 taxes   In the double-entry system, each account has a left side for debits and a right side for credits. I need to amend my 2012 taxes It is self-balancing because you record every transaction as a debit entry in one account and as a credit entry in another. I need to amend my 2012 taxes   Under this system, the total debits must equal the total credits after you post the journal entries to the ledger accounts. I need to amend my 2012 taxes If the amounts do not balance, you have made an error and you must find and correct it. I need to amend my 2012 taxes   An example of a journal entry exhibiting a payment of rent in October is shown next. I need to amend my 2012 taxes General Journal Date Description of Entry Debit  Credit Oct. I need to amend my 2012 taxes 5 Rent expense 780. I need to amend my 2012 taxes 00     Cash   780. I need to amend my 2012 taxes 00                 Computerized System There are computer software packages you can use for recordkeeping. I need to amend my 2012 taxes They can be purchased in many retail stores. I need to amend my 2012 taxes These packages are very helpful and relatively easy to use; they require very little knowledge of bookkeeping and accounting. I need to amend my 2012 taxes If you use a computerized system, you must be able to produce sufficient legible records to support and verify entries made on your return and determine your correct tax liability. I need to amend my 2012 taxes To meet this qualification, the machine-sensible records must reconcile with your books and return. I need to amend my 2012 taxes These records must provide enough detail to identify the underlying source documents. I need to amend my 2012 taxes You must also keep all machine-sensible records and a complete description of the computerized portion of your recordkeeping system. I need to amend my 2012 taxes This documentation must be sufficiently detailed to show all of the following items. I need to amend my 2012 taxes Functions being performed as the data flows through the system. I need to amend my 2012 taxes Controls used to ensure accurate and reliable processing. I need to amend my 2012 taxes Controls used to prevent the unauthorized addition, alteration, or deletion of retained records. I need to amend my 2012 taxes Charts of accounts and detailed account descriptions. I need to amend my 2012 taxes See Revenue Procedure 98-25 in Cumulative Bulletin 1998-1 for more information. I need to amend my 2012 taxes How Long To Keep Records You must keep your records as long as they may be needed for the administration of any provision of the Internal Revenue Code. I need to amend my 2012 taxes Generally, this means you must keep records that support an item of income or deduction on a return until the period of limitations for that return runs out. I need to amend my 2012 taxes The period of limitations is the period of time in which you can amend your return to claim a credit or refund, or the IRS can assess additional tax. I need to amend my 2012 taxes Table 3 contains the periods of limitations that apply to income tax returns. I need to amend my 2012 taxes Unless otherwise stated, the years refer to the period after the return was filed. I need to amend my 2012 taxes Returns filed before the due date are treated as filed on the due date. I need to amend my 2012 taxes Keep copies of your filed tax returns. I need to amend my 2012 taxes They help in preparing future tax returns and making computations if you file an amended return. I need to amend my 2012 taxes Employment taxes. I need to amend my 2012 taxes   If you have employees, you must keep all employment tax records for at least 4 years after the date the tax becomes due or is paid, whichever is later. I need to amend my 2012 taxes For more information about recordkeeping for employment taxes, see Publication 15. I need to amend my 2012 taxes Assets. I need to amend my 2012 taxes   Keep records relating to property until the period of limitations expires for the year in which you dispose of the property in a taxable disposition. I need to amend my 2012 taxes You must keep these records to figure any depreciation, amortization, or depletion deduction, and to figure your basis for computing gain or loss when you sell or otherwise dispose of the property. I need to amend my 2012 taxes   Generally, if you received property in a nontaxable exchange, your basis in that property is the same as the basis of the property you gave up, increased by any money you paid. I need to amend my 2012 taxes You must keep the records on the old property, as well as on the new property, until the period of limitations expires for the year in which you dispose of the new property in a taxable disposition. I need to amend my 2012 taxes Records for nontax purposes. I need to amend my 2012 taxes   When your records are no longer needed for tax purposes, do not discard them until you check to see if you have to keep them longer for other purposes. I need to amend my 2012 taxes For example, your insurance company or creditors may require you to keep them longer than the IRS does. I need to amend my 2012 taxes Sample Record System This example illustrates a single-entry system used by Henry Brown, who is the sole proprietor of a small automobile body shop. I need to amend my 2012 taxes Henry uses part-time help, has no inventory of items held for sale, and uses the cash method of accounting. I need to amend my 2012 taxes These sample records should not be viewed as a recommendation of how to keep your records. I need to amend my 2012 taxes They are intended only to show how one business keeps its records. I need to amend my 2012 taxes 1. I need to amend my 2012 taxes Daily Summary of Cash Receipts This summary is a record of cash sales for the day. I need to amend my 2012 taxes It accounts for cash at the end of the day over the amount in the Change and Petty Cash Fund at the beginning of the day. I need to amend my 2012 taxes Henry takes the cash sales entry from his cash register tape. I need to amend my 2012 taxes If he had no cash register, he would simply total his cash sale slips and any other cash received that day. I need to amend my 2012 taxes He carries the total receipts shown in this summary for January 3 ($267. I need to amend my 2012 taxes 80), including cash sales ($263. I need to amend my 2012 taxes 60) and sales tax ($4. I need to amend my 2012 taxes 20), to the Monthly Summary of Cash Receipts. I need to amend my 2012 taxes Petty cash fund. I need to amend my 2012 taxes   Henry uses a petty cash fund to make small payments without having to write checks for small amounts. I need to amend my 2012 taxes Each time he makes a payment from this fund, he makes out a petty cash slip and attaches it to his receipt as proof of payment. I need to amend my 2012 taxes He sets up a fixed amount ($50) in his petty cash fund. I need to amend my 2012 taxes The total of the unspent petty cash and the amounts on the petty cash slips should equal the fixed amount of the fund. I need to amend my 2012 taxes When the totals on the petty cash slips approach the fixed amount, he brings the cash in the fund back to the fixed amount by writing a check to “Petty Cash” for the total of the outstanding slips. I need to amend my 2012 taxes (See the Check Disbursements Journal entry for check number 92. I need to amend my 2012 taxes ) This restores the fund to its fixed amount of $50. I need to amend my 2012 taxes He then summarizes the slips and enters them in the proper columns in the monthly check disbursements journal. I need to amend my 2012 taxes 2. I need to amend my 2012 taxes Monthly Summary of Cash Receipts This shows the income activity for the month. I need to amend my 2012 taxes Henry carries the total monthly net sales shown in this summary for January ($4,865. I need to amend my 2012 taxes 05) to his Annual Summary. I need to amend my 2012 taxes To figure total monthly net sales, Henry reduces the total monthly receipts by the sales tax imposed on his customers and turned over to the state. I need to amend my 2012 taxes He cannot take a deduction for sales tax turned over to the state because he only collected the tax. I need to amend my 2012 taxes He does not include the tax in his income. I need to amend my 2012 taxes 3. I need to amend my 2012 taxes Check Disbursements Journal Henry enters checks drawn on the business checking account in the Check Disbursements Journal each day. I need to amend my 2012 taxes All checks are prenumbered and each check number is listed and accounted for in the column provided in the journal. I need to amend my 2012 taxes Frequent expenses have their own headings across the sheet. I need to amend my 2012 taxes He enters in a separate column expenses that require comparatively numerous or large payments each month, such as materials, gross payroll, and rent. I need to amend my 2012 taxes Under the General Accounts column, he enters small expenses that normally have only one or two monthly payments, such as licenses and postage. I need to amend my 2012 taxes Henry does not pay personal or nonbusiness expenses by checks drawn on the business account. I need to amend my 2012 taxes If he did, he would record them in the journal, even though he could not deduct them as business expenses. I need to amend my 2012 taxes Henry carries the January total of expenses for materials ($1,083. I need to amend my 2012 taxes 50) to the Annual Summary. I need to amend my 2012 taxes Similarly, he enters the monthly total of expenses for telephone, truck/auto, etc. I need to amend my 2012 taxes , in the appropriate columns of that summary. I need to amend my 2012 taxes 4. I need to amend my 2012 taxes Employee Compensation Record This record shows the following information. I need to amend my 2012 taxes The number of hours Henry's employee worked in a pay period. I need to amend my 2012 taxes The employee's total pay for the period. I need to amend my 2012 taxes The deductions Henry withheld in figuring the employee's net pay. I need to amend my 2012 taxes The monthly gross payroll. I need to amend my 2012 taxes Henry carries the January gross payroll ($520) to the Annual Summary. I need to amend my 2012 taxes 5. I need to amend my 2012 taxes Annual Summary This annual summary of monthly cash receipts and expense totals provides the final amounts to enter on Henry's tax return. I need to amend my 2012 taxes He figures the cash receipts total from the total of monthly cash receipts shown in the Monthly Summary of Cash Receipts. I need to amend my 2012 taxes He figures the expense totals from the totals of monthly expense items shown in the Check Disbursements Journal. I need to amend my 2012 taxes As in the journal, he keeps each major expense in a separate column. I need to amend my 2012 taxes Henry carries the cash receipts total shown in the annual summary ($47,440. I need to amend my 2012 taxes 9