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Irs gov 1. Irs gov Filing and Paying Business Taxes Table of Contents Introduction Useful Items - You may want to see: Identification NumbersNew EIN. Irs gov Employee. Irs gov Other payee. Irs gov Income TaxDo I Have To File an Income Tax Return? How Do I File? IRS e-file (Electronic Filing) When Is My Tax Return Due? How Do I Pay Income Tax? Self-Employment (SE) TaxHow to become insured under social security. Irs gov Earning credits in 2013 and 2014. Irs gov Employment Taxes Excise Taxes Information ReturnsWaiver of penalties. Irs gov Penalties. Irs gov Introduction This chapter explains the business taxes you may have to pay and the forms you may have to file. Irs gov It also discusses taxpayer identification numbers. Irs gov Table 1-1 lists the benefits of filing electronically. Irs gov Table 1-2 lists the federal taxes you may have to pay, their due dates, and the forms you use to report them. Irs gov Table 1-3 provides checklists that highlight the typical forms and schedules you may need to file if you ever go out of business. Irs gov You may want to get Publication 509, Tax Calendars. Irs gov It has tax calendars that tell you when to file returns and make tax payments. Irs gov Useful Items - You may want to see: Publication 505 Tax Withholding and Estimated Tax Form (and Instructions) 1040 U. Irs gov S. Irs gov Individual Income Tax Return 1040-ES Estimated Tax for Individuals Sch C (Form 1040) Profit or Loss From Business Sch C-EZ (Form 1040) Net Profit From Business Sch SE (Form 1040) Self-Employment Tax See chapter 12 for information about getting publications and forms. Irs gov Identification Numbers This section explains three types of taxpayer identification numbers, who needs them, when to use them, and how to get them. Irs gov Social security number (SSN). Irs gov Generally, use your SSN as your taxpayer identification number. Irs gov You must put this number on each of your individual income tax forms, such as Form 1040 and its schedules. Irs gov To apply for an SSN, use Form SS-5, Application for a Social Security Card. Irs gov This form is available at Social Security Administration (SSA) offices or by calling 1-800-772-1213. Irs gov It is also available from the SSA website at www. Irs gov socialsecurity. Irs gov gov. Irs gov Individual taxpayer identification number (ITIN). Irs gov The IRS will issue an ITIN if you are a nonresident or resident alien and you do not have and are not eligible to get an SSN. Irs gov In general, if you need to obtain an ITIN, you must attach Form W-7, Application for IRS Individual Taxpayer Identification Number, with your signed, original, completed tax return and any other required documentation and mail them to the following address. Irs gov Internal Revenue Service ITIN Operation P. Irs gov O. Irs gov Box 149342 Austin, TX 78714-9342 The exceptions are covered in detail in the instructions for Form W-7. Irs gov If you must include another person's SSN on your return and that person does not have and cannot get an SSN, enter that person's ITIN. Irs gov The application is also available in Spanish. Irs gov The form is available at IRS. Irs gov gov or you can call 1-800-829-3676 to order the form. Irs gov An ITIN is for tax use only. Irs gov It does not entitle the holder to social security benefits or change the holder's employment or immigration status. Irs gov Employer identification number (EIN). Irs gov You must also have an EIN to use as a taxpayer identification number if you do either of the following. Irs gov Pay wages to one or more employees. Irs gov File pension or excise tax returns. Irs gov If you must have an EIN, include it along with your SSN on your Schedule C or C-EZ. Irs gov You can apply for an EIN: Online by clicking on the Employer ID Numbers (EINs) link at www. Irs gov irs. Irs gov gov/businesses/small. Irs gov The EIN is issued immediately once the application information is validated. Irs gov By telephone at 1-800-829-4933. Irs gov By mailing or faxing Form SS-4, Application for Employer Identification Number. Irs gov New EIN. Irs gov You may need to get a new EIN if either the form or the ownership of your business changes. Irs gov For more information, see Publication 1635, Understanding Your EIN. Irs gov When you need identification numbers of other persons. Irs gov In operating your business, you will probably make certain payments you must report on information returns. Irs gov These payments are discussed under Information Returns, later in this chapter. Irs gov You must give the recipient of these payments (the payee) a statement showing the total amount paid during the year. Irs gov You must include the payee's identification number and your identification number on the returns and statements. Irs gov Employee. Irs gov If you have employees, you must get an SSN from each of them. Irs gov Record the name and SSN of each employee exactly as they are shown on the employee's social security card. Irs gov If the employee's name is not correct as shown on the card, the employee should request a new card from the SSA. Irs gov This may occur if the employee's name was changed due to marriage or divorce. Irs gov Form W-4, Employee's Withholding Allowance Certificate, is completed by each employee so the correct federal income tax can be withheld from their pay. Irs gov If your employee does not have an SSN, he or she should file Form SS-5 with the SSA. Irs gov Other payee. Irs gov 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. Irs gov If you must report payments to an organization, such as a corporation or partnership, you must get its EIN. Irs gov To get the payee's SSN or EIN, use Form W-9, Request for Taxpayer Identification Number and Certification. Irs gov A payee who does not provide you with an identification number may be subject to backup withholding. Irs gov For information on backup withholding, see the Form W-9 instructions and the General Instructions for Certain Information Returns. Irs gov Income Tax This part explains whether you have to file an income tax return and when you file it. Irs gov It also explains how you pay the tax. Irs gov Do I Have To File an Income Tax Return? You have to file an income tax return for 2013 if your net earnings from self-employment were $400 or more. Irs gov If your net earnings from self-employment were less than $400, you still have to file an income tax return if you meet any other filing requirement listed in the Form 1040 instructions. Irs gov How Do I File? File your income tax return on Form 1040 and attach Schedule C or Schedule C-EZ. Irs gov Enter the net profit or loss from Schedule C or Schedule C-EZ on page 1 of Form 1040. Irs gov Use Schedule C to figure your net profit or loss from your business. Irs gov If you operated more than one business as a sole proprietorship, you must attach a separate Schedule C for each business. Irs gov You can use the simpler Schedule C-EZ if you operated only one business as a sole proprietorship, you did not have a net loss, and you meet the other requirements listed in Part I of the schedule. Irs gov IRS e-file (Electronic Filing) Please click here for the text description of the image. Irs gov E-file logo You may be able to file your tax returns electronically using an IRS e-file option. Irs gov Table 1-1 lists the benefits of IRS e-file. Irs gov IRS e-file uses automation to replace most of the manual steps needed to process paper returns. Irs gov As a result, the processing of e-file returns is faster and more accurate than the processing of paper returns. Irs gov As with a paper return, you are responsible for making sure your return contains accurate information and is filed on time. Irs gov Using e-file does not affect your chances of an IRS examination of your return. Irs gov You can file most commonly used business forms using IRS e-file. Irs gov For more information, visit IRS. Irs gov gov. Irs gov Electronic signatures. Irs gov Paperless filing is easier than you think and it's available to most taxpayers who file electronically—including those first-time filers who were 16 or older at the end of 2013. Irs gov If you file electronically using tax preparation software or a tax professional, you will participate in the Self-Select PIN (personal identification number) program. Irs gov If you are married filing jointly, you and your spouse will each need to create a PIN and enter these PINs as your electronic signatures. Irs gov To create a PIN, you must know your adjusted gross income (AGI) from your originally filed 2012 income tax return (not from an amended return, Form 1040X, or any math error notice from the IRS). Irs gov You will also need to provide your date of birth (DOB). Irs gov Make sure your DOB is accurate and matches the information on record with the Social Security Administration before you e-file. Irs gov To do this, check your annual Social Security Statement. Irs gov With a Self-Select PIN, there is nothing to sign and nothing to mail—not even your Forms W-2. Irs gov For more details on the Self-Select PIN program, visit IRS. Irs gov gov. Irs gov State returns. Irs gov In most states, you can file an electronic state return simultaneously with your federal return. Irs gov For more information, check with your local IRS office, state tax agency, tax professional, or IRS. Irs gov gov. Irs gov Refunds. Irs gov You can have your refund check mailed to you, or you can have your refund deposited directly to your checking or savings account. Irs gov With e-file, your refund will be issued in half the time as when filing on paper. Irs gov Most refunds are issued within 3 weeks. Irs gov If you choose Direct Deposit, you can receive your refund in as few as 10 days. Irs gov Offset against debts. Irs gov As with a paper return, you may not get all of your refund if you owe certain past-due amounts, such as federal tax, state tax, a student loan, or child support. Irs gov You will be notified if the refund you claimed has been offset against your debts. Irs gov Refund inquiries. Irs gov You can check the status of your refund if it has been at least 24 hours (4 weeks if you mailed a paper return) from the date you filed your return. Irs gov Be sure to have a copy of your tax return available because you will need to know the filing status, the first social security number shown on the return, and the exact whole-dollar amount of the refund. Irs gov To check on your refund, do one of the following. Irs gov Go to IRS. Irs gov gov and click on Where's My Refund. Irs gov Call 1-800-829-4477 for automated refund information, and follow the recorded instructions. Irs gov Call 1-800-829-1954 during the hours shown in your form instructions. Irs gov Balance due. Irs gov If you owe tax, you must pay it by April 15, 2014, to avoid late-payment penalties and interest. Irs gov You can make your payment electronically by scheduling an electronic funds withdrawal from your checking or savings account or by credit card. Irs gov Using an Authorized IRS e-file Provider Many tax professionals can electronically file paperless returns for their clients. Irs gov You have two options. Irs gov You can prepare your return, take it to an authorized IRS e-file provider, and have the provider transmit it electronically to the IRS. Irs gov You can have an authorized IRS e-file provider prepare your return and transmit it for you electronically. Irs gov You will be asked to complete Form 8879, IRS e-file Signature Authorization, to authorize the provider to enter your self-selected PIN on your return. Irs gov Depending on the provider and the specific services requested, a fee may be charged. Irs gov To find an authorized IRS e-file provider near you, go to IRS. Irs gov gov or look for an “Authorized IRS e-file Provider” sign. Irs gov Using Your Personal Computer A computer with Internet access is all you need to file your tax return using IRS e-file. Irs gov When you use your personal computer, you can e-file your return from your home any time of the day or night. Irs gov Sign your return electronically using a self-selected PIN to complete the process. Irs gov There is no signature form to submit or Forms W-2 to send in. Irs gov Free Internet filing options. Irs gov More taxpayers can now prepare and e-file their individual income tax returns free using commercial tax preparation software accessible through IRS. Irs gov gov or www. Irs gov usa. Irs gov gov. Irs gov The IRS is partnering with the tax software industry to offer free preparation and filing services to a significant number of taxpayers. Irs gov Security and privacy certificate programs will assure tax data is safe and secure. Irs gov To see if you qualify for these services, visit the Return Preparation and Filing Options page at IRS. Irs gov gov. Irs gov If you cannot use the free services, you can buy tax preparation software at various electronics stores or computer and office supply stores. Irs gov You can also download software from the Internet or prepare and file your return completely online by using tax preparation software available on the Internet. Irs gov Filing Through Employers and Financial Institutions Some businesses offer free e-file to their employees, members, or customers. Irs gov Others offer it for a fee. Irs gov Ask your employer or financial institution if they offer IRS e-file as an employee, member, or customer benefit. Irs gov Free Help With Your Return Free help in preparing your return is available nationwide from IRS-trained volunteers. Irs gov The Volunteer Income Tax Assistance (VITA) program is designed to help low-income taxpayers, and the Tax Counseling for the Elderly (TCE) program is designed to assist taxpayers age 60 or older with their tax returns. Irs gov Some locations offer free electronic filing. Irs gov Table 1-1. Irs gov Benefits of IRS e-file Accuracy • Your chance of getting an error notice from the IRS is significantly reduced. Irs gov Security • Your privacy and security are assured. Irs gov Electronic signatures • Create your own personal identification number (PIN) and file a completely paperless return through your tax preparation software or tax professional. Irs gov There is nothing to mail. Irs gov Proof of acceptance • You receive an electronic acknowledgment within 48 hours that the IRS has accepted your return for processing. Irs gov Fast refunds • You get your refund faster with Direct Deposit—in as few as 10 days. Irs gov Free Internet filing options • Use IRS. Irs gov gov to access commercial tax preparation and e-file services available at no cost to eligible taxpayers. Irs gov Electronic payment options • Convenient, safe, and secure electronic payment options are available. Irs gov E-file and pay your taxes in a single step. Irs gov Schedule an electronic funds withdrawal from your checking or savings account (up to and including April 15, 2014) or pay by credit card. Irs gov Federal/State filing • Prepare and file your federal and state tax returns together and double the benefits you get from e-file. Irs gov When Is My Tax Return Due? Form 1040 for calendar year 2013 is due by April 15, 2014. Irs gov If you use a fiscal year (explained in chapter 2), your return is due by the 15th day of the 4th month after the end of your fiscal year. Irs gov If you file late, you may have to pay penalties and interest. Irs gov If you cannot file your return on time, use Form 4868, Application for Automatic Extension of Time To File U. Irs gov S. Irs gov Individual Income Tax Return, to request an automatic 6-month extension. Irs gov For calendar year taxpayers, this will extend the tax filing due date until October 15. Irs gov Filing an extension does not extend the time to pay your taxes, only the time to file the tax return. Irs gov How Do I Pay Income Tax? Federal income tax is a pay-as-you-go tax. Irs gov You must pay it as you earn or receive income during the year. Irs gov An employee usually has income tax withheld from his or her pay. Irs gov If you do not pay your tax through withholding, or do not pay enough tax that way, you might have to pay estimated tax. Irs gov You generally have to make estimated tax payments if you expect to owe taxes, including self-employment tax (discussed later), of $1,000 or more when you file your return. Irs gov Use Form 1040-ES to figure and pay the tax. Irs gov If you do not have to make estimated tax payments, you can pay any tax due when you file your return. Irs gov For more information on estimated tax, see Publication 505, Tax Withholding and Estimated Tax. Irs gov What are my payment options? You can pay your estimated tax electronically using various options. Irs gov If you pay electronically, there is no need to mail in Form 1040-ES payment vouchers. Irs gov These options include: Paying electronically through the Electronic Federal Tax Payment System (EFTPS). Irs gov Paying by authorizing an electronic funds withdrawal when you file Form 1040 electronically. Irs gov Paying by credit or debit card over the phone or by Internet. Irs gov Other options include crediting an overpayment from your 2013 return to your 2014 estimated tax, or mailing a check or money order with a Form 1040-ES payment voucher. Irs gov EFTPS To enroll in EFTPS, go to www. Irs gov eftps. Irs gov gov or call 1-800-555-4477. Irs gov When you request a new EIN and you will have a tax obligation, you are automatically enrolled in EFTPS. Irs gov Benefits of EFTPS: The chance of an error in making your payments is reduced. Irs gov You receive immediate confirmation of every transaction. Irs gov Penalty for underpayment of tax. Irs gov If you did not pay enough income tax and self-employment tax for 2013 by withholding or by making estimated tax payments, you may have to pay a penalty on the amount not paid. Irs gov The IRS will figure the penalty for you and send you a bill. Irs gov Or you can use Form 2210, Underpayment of Estimated Tax by Individuals, Estates, and Trusts, to see if you have to pay a penalty and to figure the penalty amount. Irs gov For more information, see Publication 505. Irs gov Self-Employment (SE) Tax Self-employment tax (SE tax) is a social security and Medicare tax primarily for individuals who work for themselves. Irs gov It is similar to the social security and Medicare taxes withheld from the pay of most wage earners. Irs gov If you earned income as a statutory employee, you do not pay SE tax on that income. Irs gov Social security coverage. Irs gov Social security benefits are available to self-employed persons just as they are to wage earners. Irs gov Your payments of SE tax contribute to your coverage under the social security system. Irs gov Social security coverage provides you with retirement benefits, disability benefits, survivor benefits, and hospital insurance (Medicare) benefits. Irs gov By not reporting all of your self-employment income, you could cause your social security benefits to be lower when you retire. Irs gov How to become insured under social security. Irs gov You must be insured under the social security system before you begin receiving social security benefits. Irs gov You are insured if you have the required number of credits (also called quarters of coverage), discussed next. Irs gov Earning credits in 2013 and 2014. Irs gov For 2013, you received one credit, up to a maximum of four credits, for each $1,160 ($1,200 for 2014) of income subject to social security taxes. Irs gov Therefore, for 2013, if you had income (self-employment and wages) of $4,640 that was subject to social security taxes, you receive four credits ($4,640 ÷ $1,160). Irs gov For an explanation of the number of credits you must have to be insured and the benefits available to you and your family under the social security program, consult your nearest Social Security Administration (SSA) office. Irs gov Making false statements to get or to increase social security benefits may subject you to penalties. Irs gov The Social Security Administration (SSA) time limit for posting self-employment income. Irs gov 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. Irs gov 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. Irs gov The SSA will not change its records to increase your self-employment income. Irs gov Who must pay self-employment tax. Irs gov You must pay SE tax and file Schedule SE (Form 1040) if either of the following applies. Irs gov Your net earnings from self-employment (excluding church employee income) were $400 or more. Irs gov You had church employee income of $108. Irs gov 28 or more. Irs gov The SE tax rules apply no matter how old you are and even if you are already receiving social security or Medicare benefits. Irs gov SE tax rate. Irs gov For 2013, the SE tax rate on net earnings is 15. Irs gov 3% (12. Irs gov 4% social security tax plus 2. Irs gov 9% Medicare tax). Irs gov Maximum earnings subject to SE tax. Irs gov Only the first $113,700 of your combined wages, tips, and net earnings in 2013 is subject to any combination of the 12. Irs gov 4% social security part of SE tax, social security tax, or railroad retirement (tier 1) tax. Irs gov All your combined wages, tips, and net earnings in 2013 are subject to any combination of the 2. Irs gov 9% Medicare part of SE tax, social security tax, or railroad retirement (tier 1) tax. Irs gov If wages and tips you receive as an employee are subject to either social security or railroad retirement (tier 1) tax, or both, and total at least $113,700, do not pay the 12. Irs gov 4% social security part of the SE tax on any of your net earnings. Irs gov However, you must pay the 2. Irs gov 9% Medicare part of the SE tax on all your net earnings. Irs gov Deduct one-half of your SE tax as an adjustment to income on line 27 of Form 1040. Irs gov More information. Irs gov For information on methods of calculating SE tax, see Chapter 10, Self-Employment Tax. Irs gov Table 1-2. Irs gov Which Forms Must I File? IF you are liable for: THEN use Form: DUE by:1 Income tax 1040 and Schedule C or C-EZ2 15th day of 4th month after end of tax year. Irs gov Self-employment tax Schedule SE File with Form 1040. Irs gov Estimated tax 1040-ES 15th day of 4th, 6th, and 9th months of tax year, and 15th day of 1st month after the end of tax year. Irs gov Social security and Medicare taxes and income tax withholding 941 or 944 April 30, July 31, October 31, and January 313. Irs gov See Publication 15. Irs gov Providing information on social security and Medicare taxes and income tax withholding W-2 (to employee) W-2 and W-3 (to the Social Security Administration) January 313. Irs gov Last day of February (March 31 if filing electronically)3. Irs gov Federal unemployment (FUTA) tax 940 January 313. Irs gov April 30, July 31, October 31, and January 31, but only if the liability for unpaid tax is more than $500. Irs gov Filing information returns for payments to nonemployees and transactions with other persons See Information Returns Forms 1099 – to the recipient by January 31 and to the IRS by February 28 (March 31 if filing electronically). Irs gov Other forms – see the General Instructions for Certain Information Returns. Irs gov Excise tax See Excise Taxes See the instructions to the forms. Irs gov 1 If a due date falls on a Saturday, Sunday, or legal holiday, file by the next day that is not a Saturday, Sunday, or legal holiday. Irs gov For more information, see Publication 509, Tax Calendars. Irs gov 2 File a separate schedule for each business. Irs gov 3 See the form instructions if you go out of business, change the form of your business, or stop paying wages. Irs gov Employment Taxes If you have employees, you will need to file forms to report employment taxes. Irs gov Employment taxes include the following items. Irs gov Social security and Medicare taxes. Irs gov Federal income tax withholding. Irs gov Federal unemployment (FUTA) tax. Irs gov For more information, see Publication 15 (Circular E), Employer's Tax Guide. Irs gov That publication explains your tax responsibilities as an employer. Irs gov To help you determine whether the people working for you are your employees, see Publication 15-A, Employer's Supplemental Tax Guide. Irs gov That publication has information to help you determine whether an individual is an independent contractor or an employee. Irs gov If you incorrectly classify an employee as an independent contractor, you may be held liable for employment taxes for that worker plus a penalty. Irs gov An independent contractor is someone who is self-employed. Irs gov You do not generally have to withhold or pay any taxes on payments made to an independent contractor. Irs gov Excise Taxes This section identifies some of the excise taxes you may have to pay and the forms you have to file if you do any of the following. Irs gov Manufacture or sell certain products. Irs gov Operate certain kinds of businesses. Irs gov Use various kinds of equipment, facilities, or products. Irs gov Receive payment for certain services. Irs gov For more information on excise taxes, see Publication 510, Excise Taxes. Irs gov Form 720. Irs gov The federal excise taxes reported on Form 720, Quarterly Federal Excise Tax Return, consist of several broad categories of taxes, including the following. Irs gov Environmental taxes on the sale or use of ozone-depleting chemicals and imported products containing or manufactured with these chemicals. Irs gov Communications and air transportation taxes. Irs gov Fuel taxes. Irs gov Tax on the first retail sale of heavy trucks, trailers, and tractors. Irs gov Manufacturers taxes on the sale or use of a variety of different articles. Irs gov Tax on indoor tanning services. Irs gov Form 2290. Irs gov There is a federal excise tax on the use of certain trucks, truck tractors, and buses on public highways. Irs gov The tax applies to vehicles having a taxable gross weight of 55,000 pounds or more. Irs gov Report the tax on Form 2290, Heavy Highway Vehicle Use Tax Return. Irs gov For more information, see the Instructions for Form 2290. Irs gov Depositing excise taxes. Irs gov If you have to file a quarterly excise tax return on Form 720, you may have to deposit your excise taxes before the return is due. Irs gov For details on depositing excise taxes, see the Instructions for Form 720. Irs gov Information Returns If you make or receive payments in your business, you may have to report them to the IRS on information returns. Irs gov 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. Irs gov You must give a copy of each information return you are required to file to the recipient or payer. Irs gov In addition to the forms described below, you may have to use other returns to report certain kinds of payments or transactions. Irs gov For more details on information returns and when you have to file them, see the General Instructions for Certain Information Returns. Irs gov Form 1099-MISC. Irs gov Use Form 1099-MISC, Miscellaneous Income, to report certain payments you make in your business. Irs gov These payments include the following items. Irs gov Payments of $600 or more for services performed for your business by people not treated as your employees, such as fees to subcontractors, attorneys, accountants, or directors. Irs gov Rent payments of $600 or more, other than rents paid to real estate agents. Irs gov Prizes and awards of $600 or more that are not for services, such as winnings on TV or radio shows. Irs gov Royalty payments of $10 or more. Irs gov Payments to certain crew members by operators of fishing boats. Irs gov 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. Irs gov Form W-2. Irs gov 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. Irs gov You can file Form W-2 online. Irs gov For more information about Form W-2, see the General Instructions for Forms W-2 and W-3. Irs gov Penalties. Irs gov The law provides for the following penalties if you do not file Form 1099-MISC or Form W-2 or do not correctly report the information. Irs gov For more information, see the General Instructions for Certain Information Returns. Irs gov Failure to file information returns. Irs gov This penalty applies if you do not file information returns by the due date, do not include all required information, or report incorrect information. Irs gov Failure to furnish correct payee statements. Irs gov This penalty applies if you do not furnish a required statement to a payee by the required date, do not include all required information, or report incorrect information. Irs gov Waiver of penalties. Irs gov These penalties will not apply if you can show that the failure was due to reasonable cause and not willful neglect. Irs gov In addition, there is no penalty for failure to include all required information, or for including incorrect information, on a de minimis (small) number of information returns if you correct the errors by August 1 of the year the returns are due. Irs gov (A de minimis number of returns is the greater of 10 or ½ of 1% of the total number of returns you are required to file for the year. Irs gov ) Form 8300. Irs gov 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. Irs gov Cash includes U. Irs gov S. Irs gov and foreign coin and currency. Irs gov It also includes certain monetary instruments such as cashier's and traveler's checks and money orders. Irs gov Cash does not include a check drawn on an individual's personal account (personal check). Irs gov For more information, see Publication 1544, Reporting Cash Payments of Over $10,000 (Received in a Trade or Business). Irs gov Penalties. Irs gov There are civil and criminal penalties, including up to 5 years in prison, for not filing Form 8300, filing (or causing the filing of) a false or fraudulent Form 8300, or structuring a transaction to evade reporting requirements. Irs gov Table 1-3. Irs gov Going Out of Business Checklists (Note. Irs gov The following checklists highlight the typical final forms and schedules you may need to file if you ever go out of business. Irs gov For more information, see the instructions for the listed forms. Irs gov ) IF you are liable for: THEN you may need to: Income tax □ File Schedule C or C-EZ with your Form 1040 for the year in which you go out of business. Irs gov □ File Form 4797 with your Form 1040 for each year in which you sell or exchange property used in your business or in which the business use of certain section 179 or listed property drops to 50% or less. Irs gov □ File Form 8594 with your Form 1040 if you sold your business. Irs gov Self-employment tax □ File Schedule SE with your Form 1040 for the year in which you go out of business. Irs gov Employment taxes □ File Form 941 (or Form 944) for the calendar quarter in which you make final wage payments. Irs gov Note. Irs gov Do not forget to check the box and enter the date final wages were paid on line 15 of Form 941 or line 14 of Form 944. Irs gov □ File Form 940 for the calendar year in which final wages were paid. Irs gov Note. Irs gov Do not forget to check box d, Final: Business closed or stopped paying wages, under Type of Return. Irs gov Information returns □ Provide Forms W-2 to your employees for the calendar year in which you make final wage payments. Irs gov Note. Irs gov These forms are generally due by the due date of your final Form 941 or Form 944. Irs gov □ File Form W-3 to file Forms W-2. Irs gov Note. Irs gov These forms are generally due within 1 month after the due date of your final Form 941 or Form 944. Irs gov □ Provide Forms 1099-MISC to each person to whom you have paid at least $600 for services (including parts and materials) during the calendar year in which you go out of business. Irs gov □ File Form 1096 to file Forms 1099-MISC. 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Topic 515 - Casualty, Disaster, and Theft Losses (Including Federally Declared
Generally, you may deduct casualty and theft losses relating to
your home, household items and vehicles on your federal income tax
return. You may not deduct casualty and theft losses covered by insurance
unless you file a timely claim for reimbursement, and you reduce the
loss by the amount of any reimbursement or expected reimbursement.
A casualty loss can result from the damage, destruction or loss
of your property from any sudden, unexpected, or unusual event such
as a flood, hurricane, tornado, fire, earthquake or even volcanic
eruption. A casualty does not include normal wear and tear or progressive
A theft is the taking and removing of money or property with the
intent to deprive the owner of it. The taking must be illegal under
the law of the state where it occurred and it must have been done
with criminal intent.
If your property is personal-use property or is not completely
destroyed, the amount of your casualty loss is the lesser of:
- The adjusted basis of your property, or
- The decrease in fair market value of your property as a result
of the casualty
The amount of your theft loss is generally the adjusted basis of
your property because the fair market value of your property immediately
after the theft is considered to be zero.
If your property is business or income-producing property, such
as rental property, and is completely destroyed, then the amount of
your loss is your adjusted basis.
The loss, regardless of whether it is a casualty or theft loss,
must be reduced by any salvage value and by any insurance or other
reimbursement you receive or expect to receive. The adjusted basis
of your property is usually your cost, increased or decreased by certain
events such as improvements or depreciation. For more information
about the basis of property, refer to Topic 703, Publication 547, Casualties, Disasters, and Thefts, and Publication 551, Basis of Assets.
You may determine the decrease in fair market value by appraisal,
or if certain conditions are met, by the cost of repairing the property.
For more information, refer to Publication 547.
Individuals are required to claim their casualty and theft losses
as an itemized deduction on Form 1040, Schedule A (PDF) (or Form 1040NR, Schedule
A (PDF), if you are a nonresident alien). For property held by
you for personal use, once you have subtracted any salvage value and
any insurance or other reimbursement, you must subtract $100 from
each casualty or theft event that occurred during the year. Then add
up all those amounts and subtract 10% of your adjusted gross income
from that total to calculate your allowable casualty and theft losses
for the year.
Casualty and theft losses are reported on Form 4684 (PDF), Casualties and Thefts.
Section A is used for personal-use property, and Section B is used
for business or income-producing property. If personal-use property
was damaged, destroyed or stolen, you may wish to refer to Publication 584, Casualty, Disaster, and Theft Loss Workbook
(Personal-Use Property). For losses involving business-use property,
refer to Publication 584-B (PDF), Business Casualty, Disaster, and Theft Loss Workbook.
Casualty losses are generally deductible in the year the casualty
occurred. However, if you have a casualty loss from a federally declared
disaster that occurred in an area warranting public or individual
assistance (or both), you can choose to treat the loss as having occurred
in the year immediately preceding the tax year in which the disaster
happened, and you can deduct the loss on your return or amended return
for that preceding tax year. Review Disaster Assistance and Emergency Relief for Individuals and Businesses on IRS.gov, for information regarding
timeframes and additional information to your specific qualifying
Theft losses are generally deductible in the year you discover
the property was stolen unless you have a reasonable prospect of recovery
through a claim for reimbursement. In that case, no deduction is available
until the taxable year in which it can be determined with reasonable
certainty whether or not such reimbursement will be received.
Special rules may apply to theft losses from Ponzi-type investment
schemes. For more information, see the Form 4684 (PDF) and the Form 4684 Instructions (PDF), Casualties and Thefts. Additionally, review Help for Victims of Ponzi Investment Schemes on IRS.gov.
If your loss deduction is more than your income, you may have a
net operating loss. You do not have to be in business to have a net
operating loss from a casualty. For more information, refer to Publication 536, Net Operating Losses for Individuals, Estates, and
Page Last Reviewed or Updated: December 12, 2013
The Irs Gov
Irs gov Publication 584-B - Introductory Material Table of Contents What's New Introduction What's New The IRS has created a page on IRS. Irs gov gov for information about Publication 584-B, at www. Irs gov irs. Irs gov gov/pub584b. Irs gov Information about any future developments affecting Publication 584-B (such as legislation enacted after we released it) will be posted on that page. Irs gov Introduction This workbook is designed to help you figure your loss on business and income-producing property in the event of a disaster, casualty, or theft. Irs gov It contains schedules to help you figure the loss to your office furniture and fixtures, information systems, motor vehicles, office supplies, buildings, and equipment. Irs gov These schedules, however, are for your information only. Irs gov You must complete Form 4684, Casualties and Thefts, to report your loss. Irs gov Prev Up Next Home More Online Publications