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Tax Act 2012 Return

Free Irs Tax Forms 2011File 1040x Electronically2009 Tax ReturnsFreetaxusa ComTurbo Tax Free Military1o40 Ez FormState Income Tax Filing1040x SoftwareH And R Block Free MilitaryWww Irs Gov Form 1040ezForm 1040aFilling Out 1040x OnlineFree E File Tax ExtensionH & R Block Online FilingFree State Tax Filing SoftwareIrs Gov Irs FormsFree Tax Software 2011 DownloadIrs Forms 1040ez InstructionsHow To Fill Out 1040x FormIrs Gov Forms1040xFile Prior Year Taxes Online2011 Tax Forms IrsFree H R Block 2011File Tax AmendmentState Free Tax Return2008 TurbotaxFree Efile2009 1040State Tax ExtensionH&r Block 1040ez FreeMypay ComAarp Tax Aide Locations1040ez Tax Table 2010Amending A ReturnFree Tax Filing For Low IncomeE File State TaxesIrs Free Tax Filing Online Irs E-fileHrblock Freefile1040ez Tax FormsWww Myfreetaxes Com

Tax Act 2012 Return

Tax act 2012 return Publication 561 - Additional Material Table of Contents Tax Publications for Individual Taxpayers and Commonly Used Tax Forms Tax Publications for Individual Taxpayers and Commonly Used Tax Forms. Tax act 2012 return  Summary: This is a listing of tax publications and commonly used tax forms. Tax act 2012 return The text states:Tax Publications for Individual Taxpayers. Tax act 2012 return  See How to Get Tax Help for a variety of ways to get publications, including by computer, phone, and mail. Tax act 2012 return General Guides. Tax act 2012 return   1--Your Rights as a Taxpayer 17--Your Federal Income Tax (For Individuals) 334--Tax Guide for Small Business (For Individuals Who Use Schedule C or C-EZ) 509--Tax Calendars for 2007 553--Highlights of 2006 Tax Changes 910--IRS Guide to Free Tax Services Specialized Publications. Tax act 2012 return   3--Armed Forces' Tax Guide 54--Tax Guide for U. Tax act 2012 return S. Tax act 2012 return Citizens and Residents Aliens Abroad 225--Farmer's Tax Guide 463--Travel, Entertainment, Gift, and Car Expenses 501--Exemptions, Standard Deduction, and Filing Information 502--Medical and Dental Expenses 503--Child and Dependent Care Expenses 504--Divorced or Separated Individuals 505--Tax Withholding and Estimated Tax 514--Foreign Tax Credit for Individuals 516--U. Tax act 2012 return S. Tax act 2012 return Government Civilian Employees Stationed Abroad 517--Social Security and Other Information for Members of the Clergy and Religious Workers 519--U. Tax act 2012 return S. Tax act 2012 return Tax Guide for Aliens 520--Scholarships and Fellowships 521--Moving Expenses 523--Selling Your Home 524--Credit for the Elderly or the Disabled 525--Taxable and Nontaxable Income 526--Charitable Contributions 527--Residential Rental Property 529--Miscellaneous Deductions 530--Tax Information for First-Time Homeowners 531--Reporting Tip Income 536--Net Operating Losses (NOLs) for Individuals, Estates, and Trusts 537--Installment Sales 541--Partnerships 544--Sales and Other Dispositions of Assets 547--Casualties, Disasters, and Thefts 550--Investment Income and Expenses 551--Basis of Assets 552--Recordkeeping for Individuals 554--Older Americans' Tax Guide 555--Community Property 556--Examination of Returns, Appeal Rights, and Claims for Refund 559--Survivors, Executors, and Administrators 561--Determining the Value of Donated Property 564--Mutual Fund Distributions 570--Tax Guide for Individuals With Income From U. Tax act 2012 return S. Tax act 2012 return Possessions 571--Tax-Sheltered Annuity Plans (403(b) Plans) 575--Pension and Annuity Income 584--Casualty, Disaster, and Theft Loss Workbook (Personal-Use Property) 587--Business Use of Your Home (Including Use by Daycare Providers) 590--Individual Retirement Arrangements (IRAs) 593--Tax Highlights for U. Tax act 2012 return S. Tax act 2012 return Citizens and Residents Going Abroad 594--What You Should Know About the IRS Collection Process 596--Earned Income Credit (EIC) 721--Tax Guide to U. Tax act 2012 return S. Tax act 2012 return Civil Service Retirement Benefits 901--U. Tax act 2012 return S. Tax act 2012 return Tax Treaties 907--Tax Highlights for Persons with Disabilities 908--Bankruptcy Tax Guide 915--Social Security and Equivalent Railroad Retirement Benefits 919--How Do I Adjust My Tax Withholding? 925--Passive Activity and At-Risk Rules 926--Household Employer's Tax Guide 929--Tax Rules for Children and Dependents 936--Home Mortgage Interest Deduction 946--How to Depreciate Property 947--Practice Before the IRS and Power of Attorney 950--Introduction to Estate and Gift Taxes 967--The IRS Will Figure Your Tax 969--Health Savings Accounts and Other Tax-Favored Health Plans 970--Tax Benefits for Education 971--Innocent Spouse Relief 972--Child Tax Credit 1542--Per Diem Rates 1544--Reporting Cash Payments of Over $10,000 (Received in a Trade or Business) 1546--The Taxpayer Advocate Service of the IRS - How to Get Help With Unresolved Tax Problems Spanish Language Publications. Tax act 2012 return   1SP--Derechos del Contribuyente 579SP--Cómo Preparar la Declaración de Impuesto Federal 594SP--Que es lo que Debemos Saber sobre el Proceso de Cobro del IRS 596SP--Crédito por Ingreso del Trabajo 850--English-Spanish Glossary of Words and Phrases Used in Publications Issued by the Internal Revenue Service 1544SP--Informe de Pagos en Efectivo en Exceso de $10,000 (Recibidos en una Ocupación o Negocio) Commonly Used Tax Forms. Tax act 2012 return  See How To Get Tax Help for a variety of ways to get forms, including by computer, fax, phone, and mail. Tax act 2012 return 1040--U. Tax act 2012 return S. Tax act 2012 return Individual Income Tax Return Schedule A&B--Itemized Deductions & Interest and Ordinary Dividends Schedule C--Profit or Loss From Business Schedule C-EZ--Net Profit From Business Schedule D--Capital Gains and Losses Schedule D-1--Continuation Sheet for Schedule D Schedule E--Supplemental Income and Loss Schedule EIC--Earned Income Credit Schedule F--Profit or Loss From Farming Schedule H--Household Employment Taxes Schedule J--Income Averaging for Farmers and Fishermen Schedule R--Credit for the Elderly or the Disabled Schedule SE--Self-Employment Tax 1040A--U. Tax act 2012 return S. Tax act 2012 return Individual Income Tax Return Schedule 1--Interest and Ordinary Dividends for Form 1040A Filers Schedule 2--Child and Dependent Care Expenses for Form 1040A Filers Schedule 3--Credit for the Elderly or the Disabled for Form 1040A Filers 1040EZ--Income Tax Return for Single and Joint Filers With No Dependents 1040-ES--Estimated Tax for Individuals 1040X--Amended U. Tax act 2012 return S. Tax act 2012 return Individual Income Tax Return 2106--Employee Business Expenses 2106-EZ--Unreimbursed Employee Business Expenses 2210--Underpayment of Estimated Tax by Individuals, Estates, and Trusts 2441--Child and Dependent Care Expenses 2848--Power of Attorney and Declaration of Representative 3903--Moving Expenses 4562--Depreciation and Amortization 4868--Application for Automatic Extension of Time To File U. Tax act 2012 return S. Tax act 2012 return Individual Income Tax Return 4952--Investment Interest Expense Deduction 5329--Additional Taxes on Qualified Plans (Including IRAs) and Other Tax-Favored Accounts 6251--Alternative Minimum Tax--Individuals 8283--Noncash Charitable Contributions 8582--Passive Activity Loss Limitations 8606--Nondeductible IRAs 8812--Additional Child Tax Credit 8822--Change of Address 8829--Expenses for Business Use of Your Home 8863--Education Credits 9465--Installment Agreement Request Prev  Up  Next   Home   More Online Publications
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Tax Relief for Victims of Severe Storms, Tornadoes, Straight-Line Winds and Flooding in Alabama

Updated 2/7/12 to add Perry County.

AL/TN-2012-06AL, Feb. 2, 2012

BIRMINGHAM — Victims of the severe storms, tornadoes, straight-line winds and flooding that took place on Jan. 22, 2012 in parts of Alabama may qualify for tax relief from the Internal Revenue Service.

The President has declared Chilton, Jefferson and Perry counties a federal disaster area. Individuals who reside or have a business in this county may qualify for tax relief.

The declaration permits the IRS to postpone certain deadlines for taxpayers who reside or have a business in the disaster area. For instance, certain deadlines falling on or after Jan. 22, and on or before March 22, have been postponed to March 22, 2012.

In addition, the IRS is waiving the failure-to-deposit penalties for employment and excise tax deposits due on or after Jan. 22, and on or before Feb. 6, as long as the deposits are made by Feb. 6, 2012.

If an affected taxpayer receives a penalty notice from the IRS, the taxpayer should call the telephone number on the notice to have the IRS abate any interest and any late filing or late payment penalties that would otherwise apply. Penalties or interest will be abated only for taxpayers who have an original or extended filing, payment or deposit due date, including an extended filing or payment due date, that falls within the postponement period.

The IRS automatically identifies taxpayers located in the covered disaster area and applies automatic filing and payment relief. But affected taxpayers who reside or have a business located outside the covered disaster area must call the IRS disaster hotline at 1-866-562-5227 to request this tax relief.

Covered Disaster Area

The counties listed above constitute a covered disaster area for purposes of Treas. Reg. § 301.7508A-1(d)(2) and are entitled to the relief detailed below.

Affected Taxpayers

Taxpayers considered to be affected taxpayers eligible for the postponement of time to file returns, pay taxes and perform other time-sensitive acts are those taxpayers listed in Treas. Reg. § 301.7508A-1(d)(1), and include individuals who live, and businesses whose principal place of business is located, in the covered disaster area. Taxpayers not in the covered disaster area, but whose records necessary to meet a deadline listed in Treas. Reg. § 301.7508A-1(c) are in the covered disaster area, are also entitled to relief. In addition, all relief workers affiliated with a recognized government or philanthropic organization assisting in the relief activities in the covered disaster area and any individual visiting the covered disaster area who was killed or injured as a result of the disaster are entitled to relief.

Grant of Relief

Under section 7508A, the IRS gives affected taxpayers until March 22 to file most tax returns (including individual, corporate, and estate and trust income tax returns; partnership returns, S corporation returns, and trust returns; estate, gift, and generation-skipping transfer tax returns; and employment and certain excise tax returns), or to make tax payments, including estimated tax payments, that have either an original or extended due date occurring on or after Jan. 22 and on or before March 22.

The IRS also gives affected taxpayers until March 22 to perform other time-sensitive actions described in Treas. Reg. § 301.7508A-1(c)(1) and Rev. Proc. 2007-56, 2007-34 I.R.B. 388 (Aug. 20, 2007), that are due to be performed on or after Jan. 22 and on or before March 22.

This relief also includes the filing of Form 5500 series returns, in the manner described in section 8 of Rev. Proc. 2007-56. The relief described in section 17 of Rev. Proc. 2007-56, pertaining to like-kind exchanges of property, also applies to certain taxpayers who are not otherwise affected taxpayers and may include acts required to be performed before or after the period above.

The postponement of time to file and pay does not apply to information returns in the W-2, 1098, 1099 series, or to Forms 1042-S or 8027. Penalties for failure to timely file information returns can be waived under existing procedures for reasonable cause. Likewise, the postponement does not apply to employment and excise tax deposits. The IRS, however, will abate penalties for failure to make timely employment and excise tax deposits due on or after Jan. 22 and on or before Feb. 6 provided the taxpayer makes these deposits by Feb. 6.

Casualty Losses

Affected taxpayers in a federally declared disaster area have the option of claiming disaster-related casualty losses on their federal income tax return for either this year or last year. Claiming the loss on an original or amended return for last year will get the taxpayer an earlier refund, but waiting to claim the loss on this year’s return could result in a greater tax saving, depending on other income factors.

Individuals may deduct personal property losses that are not covered by insurance or other reimbursements. For details, see Form 4684 and its instructions.

Affected taxpayers claiming the disaster loss on last year’s return should put the Disaster Designation “Virginia/Earthquake” at the top of the form so that the IRS can expedite the processing of the refund.

Other Relief

The IRS will waive the usual fees and expedite requests for copies of previously filed tax returns for affected taxpayers. Taxpayers should put the assigned Disaster Designation in red ink at the top of Form 4506, Request for Copy of Tax Return, or Form 4506-T, Request for Transcript of Tax Return, as appropriate, and submit it to the IRS.

Affected taxpayers who are contacted by the IRS on a collection or examination matter should explain how the disaster impacts them so that the IRS can provide appropriate consideration to their case.

Taxpayers may download forms and publications from the official IRS website, irs.gov, or order them by calling 1-800-TAX-FORM (1-800-829-3676). The IRS toll-free number for general tax questions is 1-800-829-1040.

Related Information

Page Last Reviewed or Updated: 09-Jan-2014

The Tax Act 2012 Return

Tax act 2012 return Publication 908 - Main Content Table of Contents Bankruptcy Code Tax Compliance RequirementsTax Returns Due for Periods Ending Before the Bankruptcy Filing in Chapter 13 Cases Tax Returns Due After the Bankruptcy Filing Individuals in Chapter 12 or 13 Individuals in Chapter 7 or 11Debtor's Election To End Tax Year – Form 1040 Taxes and the Bankruptcy Estate Bankruptcy Estate – Income, Deductions, and Credits Tax Reporting – Chapter 11 Cases Bankruptcy Estate Tax Return Filing Requirements and Payment of Tax Due Tax Return Example – Form 1041 Partnerships and CorporationsFiling Requirements Partnerships Corporations Receiverships Determination of TaxPrompt Determination Requests Court Jurisdiction Over Tax MattersBankruptcy Court Tax Court Federal Tax ClaimsUnsecured Tax Claims Discharge of Unpaid Tax Debt CancellationExclusions Reduction of Tax Attributes Partnerships Corporations Tax Attribute Reduction Example How To Get Tax HelpTaxpayer Advocacy Panel (TAP). Tax act 2012 return Low Income Taxpayer Clinics (LITCs). Tax act 2012 return Bankruptcy Code Tax Compliance Requirements Tax Returns Due for Periods Ending Before the Bankruptcy Filing in Chapter 13 Cases The Bankruptcy Code requires chapter 13 debtors to file all required tax returns for tax periods ending within 4 years of the debtor's bankruptcy filing. Tax act 2012 return All such federal tax returns must be filed with the IRS before the date first set for the first meeting of creditors. Tax act 2012 return The debtor may request the trustee to hold the meeting open for an additional 120 days to enable the debtor to file the returns (or until the day the returns are due under an automatic IRS extension, if later). Tax act 2012 return After notice and hearing, the bankruptcy court may extend the period for another 30 days. Tax act 2012 return Failure to timely file the returns can prevent confirmation of a chapter 13 plan and result in either dismissal of the chapter 13 case or conversion to a chapter 7 case. Tax act 2012 return Note. Tax act 2012 return Individual debtors should use their home address when filing Form 1040 with the IRS. Tax act 2012 return Returns should not be filed “in care of” the trustee's address. Tax act 2012 return Ordering tax transcripts and copies of returns. Tax act 2012 return   Trustees may require the debtor to submit copies or transcripts of the debtor's returns as proof of filing. Tax act 2012 return The debtor can request free transcripts of the debtor's income tax returns by filing Form 4506-T, Request for Transcript of Tax Return, with the IRS or by placing a request on the IRS's free Automated Delivery Service (ADS), available by calling 1-800-829-1040. Tax act 2012 return If requested through ADS, the transcript will be mailed to the debtor's most current address according to the IRS's records. Tax act 2012 return Transcripts requested using Form 4506-T may be mailed to any address, including to the attention of the trustee in the debtor's bankruptcy case. Tax act 2012 return Transcripts are normally mailed within 10 to 15 days of receipt of the request by the IRS. Tax act 2012 return A transcript contains most of the information on the debtor's filed return, but it is not a copy of the return. Tax act 2012 return To request a copy of the debtor's filed return, file Form 4506, Request for Copy of Tax Return. Tax act 2012 return It may take up to 60 days for the IRS to provide the copies after receipt of the debtor's request, and there is a fee of $57. Tax act 2012 return 00 per tax return for copies of the returns. Tax act 2012 return Tax Returns Due After the Bankruptcy Filing For debtors filing bankruptcy under all chapters (chapters 7, 11, 12, or 13), the Bankruptcy Code provides that if the debtor does not file a tax return that becomes due after the commencement of the bankruptcy case, or obtain an extension for filing the return before the due date, the taxing authority may request that the bankruptcy court either dismiss the case or convert the case to a case under another chapter of the Bankruptcy Code. Tax act 2012 return If the debtor does not file the required return or obtain an extension within 90 days after the request is made, the bankruptcy court must dismiss or convert the case. Tax act 2012 return Tax returns and payment of taxes in chapter 11 cases. Tax act 2012 return   The Bankruptcy Code provides that a chapter 11 debtor's failure to timely file tax returns and pay taxes owed after the date of the “order for relief” (the bankruptcy petition date in voluntary cases) is cause for dismissal of the chapter 11 case, conversion to a chapter 7 case, or appointment of a chapter 11 trustee. Tax act 2012 return Disclosure of debtor's return information to trustee. Tax act 2012 return   In bankruptcy cases filed under chapter 7 or 11 by individuals, the debtor's income tax returns for the year the bankruptcy case begins and for earlier years are, upon written request, open to inspection by or disclosure to the trustee. Tax act 2012 return If the bankruptcy case was not voluntary, disclosure cannot be made before the bankruptcy court has entered an order for relief, unless the court rules that the disclosure is needed for determining whether relief should be ordered. Tax act 2012 return    In bankruptcy cases other than those of individuals filing under chapter 7 or 11, the debtor's income tax returns for the current and prior years are, upon written request, open to inspection by or disclosure to the trustee, but only if the IRS finds that the trustee has a material interest that will be affected by information on the return. Tax act 2012 return Material interest is generally defined as a financial or monetary interest. Tax act 2012 return Material interest is not limited to the trustee's responsibility to file a return on behalf of the bankruptcy estate. Tax act 2012 return   However, the U. Tax act 2012 return S. Tax act 2012 return Trustee (an officer of the Department of Justice, responsible for maintaining and supervising a panel of private trustees for chapter 7 bankruptcy cases) and the standing chapter 13 trustee (the administrator of chapter 13 cases in a specific geographic region) generally do not have a material interest in the debtor’s return or return information. Tax act 2012 return Disclosure of bankruptcy estate's return information to debtor. Tax act 2012 return    The bankruptcy estate's tax return(s) are open, upon written request, to inspection by or disclosure to the individual debtor in a chapter 7 or 11 bankruptcy. Tax act 2012 return Disclosure of the estate's return to the debtor may be necessary to enable the debtor to determine the amount and nature of the tax attributes, if any, that the debtor assumes when the bankruptcy estate terminates. Tax act 2012 return Individuals in Chapter 12 or 13 Only individuals may file a chapter 13 bankruptcy. Tax act 2012 return Chapter 13 relief is not available to corporations or partnerships. Tax act 2012 return The bankruptcy estate is not treated as a separate entity for tax purposes when an individual files a petition under chapter 12 (Adjustment of Debts of a Family Farmer or Fisherman with Regular Annual Income) or 13 (Adjustment of Debts of an Individual with Regular Income) of the Bankruptcy Code. Tax act 2012 return In these cases the individual continues to file the same federal income tax returns that were filed prior to the bankruptcy petition, Form 1040, U. Tax act 2012 return S. Tax act 2012 return Individual Income Tax Return. Tax act 2012 return On the debtor's individual tax return, Form 1040, report all income received during the entire year and deduct all allowable expenses. Tax act 2012 return Do not include in income the amount from any debt canceled due to the debtor's bankruptcy. Tax act 2012 return To the extent the debtor has any losses, credits, or basis in property that were previously reduced as a result of canceled debt, these reductions must be included on the debtor's return. Tax act 2012 return See Debt Cancellation, later. Tax act 2012 return Interest on trust accounts in chapter 13 cases. Tax act 2012 return   In chapter 13 proceedings, do not include interest earned on amounts held by the trustee in trust accounts as income on the debtor's return. Tax act 2012 return This interest is not available to either the debtor or creditors, it is available only to the trustee for use by the U. Tax act 2012 return S. Tax act 2012 return Trustee system. Tax act 2012 return The interest is also not taxable to the trustee as income. Tax act 2012 return Individuals in Chapter 7 or 11 When an individual debtor files for bankruptcy under chapter 7 or 11 of the Bankruptcy Code, the bankruptcy estate is treated as a new taxable entity, separate from the individual taxpayer. Tax act 2012 return The bankruptcy estate in a chapter 7 case is represented by a trustee. Tax act 2012 return The trustee is appointed to administer the estate and liquidate any nonexempt assets. Tax act 2012 return In chapter 11 cases, the debtor often remains in control of the assets as a “debtor-in-possession” and acts as the bankruptcy trustee. Tax act 2012 return However, the bankruptcy court, for cause, may appoint a trustee if such appointment is in the best interests of the creditors and the estate. Tax act 2012 return During the chapter 7 or 11 bankruptcy, the debtor continues to file an individual tax return on Form 1040. Tax act 2012 return The bankruptcy trustee files a Form 1041 for the bankruptcy estate. Tax act 2012 return However, when a debtor in a chapter 11 bankruptcy case remains a debtor-in-possession, he or she must file both a Form 1040 individual return and a Form 1041 estate return for the bankruptcy estate (if return filing requirements are met). Tax act 2012 return Although a husband and wife may file a joint bankruptcy petition whose bankruptcy estates are jointly administered, the estates are be treated as two separate entities for tax purposes. Tax act 2012 return Two separate bankruptcy estate income tax returns must be filed (if each spouse separately meets the filing requirements). Tax act 2012 return For information about determining the tax due and paying tax for a chapter 7 or 11 bankruptcy estate, see Bankruptcy Estate Tax Return Filing Requirements and Payment of Tax Due, later. Tax act 2012 return Debtor's Election To End Tax Year – Form 1040 Short tax years. Tax act 2012 return   An individual debtor in a chapter 7 or 11 case may elect to close the debtor's tax year for the year in which the bankruptcy petition is filed, as of the day before the date on which the bankruptcy case commences. Tax act 2012 return If the debtor makes this election, the debtor's tax year is divided into 2 short tax years of less than 12 months each. Tax act 2012 return The first tax year ends on the day before the commencement date and the second tax year begins on the commencement date. Tax act 2012 return   If the election is made, the debtor's federal income tax liability for the first short tax year becomes an allowable claim against the bankruptcy estate arising before the bankruptcy filing. Tax act 2012 return Also, the tax liability for the first short tax year is not subject to discharge under the Bankruptcy Code. Tax act 2012 return    If the debtor does not make an election to end the tax year, the commencement of the bankruptcy case does not affect the debtor's tax year. Tax act 2012 return Also, no part of the debtor's income tax liability for the year in which the bankruptcy case commences can be collected from the bankruptcy estate. Tax act 2012 return Note. Tax act 2012 return The debtor cannot make a short tax year election if no assets, other than exempt property, are in the bankruptcy estate. Tax act 2012 return Making the Election - Filing Requirements First short tax year. Tax act 2012 return   The debtor can elect to end the debtor's tax year by filing a return on Form 1040 for the first short tax year. Tax act 2012 return The return must be filed on or before the 15th day of the fourth full month after the end of that first tax year. Tax act 2012 return Second short tax year. Tax act 2012 return   If the debtor elects to end the tax year on the day before filing the bankruptcy case, the debtor must file the return for the first short tax year in the manner discussed above. Tax act 2012 return   If the debtor makes this election, the debtor must also file a separate Form 1040 for the second short tax year by the regular due date. Tax act 2012 return To avoid delays in processing the return, write “Second Short Year Return After Section 1398 Election” at the top of the return. Tax act 2012 return Example. Tax act 2012 return Jane Doe, an individual calendar year taxpayer, filed a bankruptcy petition under chapter 7 or 11 on May 8, 2012. Tax act 2012 return If Jane elected to close her tax year at the commencement of her case, Jane's first short year for 2012 runs from January 1 through May 7, 2012. Tax act 2012 return Jane's second short year runs from May 8, 2012, through December 31, 2012. Tax act 2012 return To have a timely filed election for the first short year, Jane must file Form 1040 (or an extension of time to file) for the period January 1 through May 7 by September 15. Tax act 2012 return To avoid delays in processing the return, write “Section 1398 Election” at the top of the return. Tax act 2012 return The debtor may also make the election by attaching a statement to Form 4868, Automatic Extension of Time to File an U. Tax act 2012 return S. Tax act 2012 return Individual Tax Return. Tax act 2012 return The statement must state that the debtor elects under IRC section 1398(d)(2) to close the debtor's tax year on the day before filing the bankruptcy case. Tax act 2012 return The debtor must file Form 4868 by the due date of the return for the first short tax year. Tax act 2012 return The debtor's spouse may also elect to close his or her tax year, see Election by debtor's spouse, below. Tax act 2012 return Election by debtor's spouse. Tax act 2012 return   If the debtor is married, the debtor's spouse may join in the election to end the tax year. Tax act 2012 return If the debtor and spouse make a joint election, the debtor must file a joint return for the first short tax year. Tax act 2012 return The debtor must elect by the due date for filing the return for the first short tax year. Tax act 2012 return Once the election is made, it cannot be revoked for the first short tax year. Tax act 2012 return However, the election does not prevent the debtor and the spouse from filing separate returns for the second short tax year. Tax act 2012 return Later bankruptcy of spouse. Tax act 2012 return    If the debtor's spouse files for bankruptcy later in the same year, he or she may also choose to end his or her tax year, regardless of whether he or she joined in the election to end the debtor's tax year. Tax act 2012 return   As each spouse has a separate bankruptcy, one or both of them may have 3 short tax years in the same calendar year. Tax act 2012 return If the debtor's spouse joined the debtor's election or if the debtor had not made the election to end the tax year, the debtor can join in the spouse's election. Tax act 2012 return However, if the debtor made an election and the spouse did not join that election, the debtor cannot then join the spouse's later election. Tax act 2012 return The debtor and the spouse are precluded from this election because they have different tax years. Tax act 2012 return This results because the debtor does not have a tax year ending the day before the spouse's filing for bankruptcy, and the debtor cannot file a joint return for a year ending on the day before the spouse's filing of bankruptcy. Tax act 2012 return Example 1. Tax act 2012 return Paul and Mary Harris are calendar-year taxpayers. Tax act 2012 return Paul's voluntary chapter 7 bankruptcy case begins on March 4. Tax act 2012 return If Paul does not make an election, his tax year does not end on March 3. Tax act 2012 return If he makes an election, Paul's first tax year is January 1–March 3, and his second tax year begins on March 4. Tax act 2012 return Mary could join in Paul's election as long as they file a joint return for the tax year January 1–March 3. Tax act 2012 return They must make the election by July 15, the due date for filing the joint return. Tax act 2012 return Example 2. Tax act 2012 return Fred and Ethel Barnes are calendar-year taxpayers. Tax act 2012 return Fred's voluntary chapter 7 bankruptcy case begins on May 6, and Ethel's bankruptcy case begins on November 1 of the same year. Tax act 2012 return Ethel could elect to end her tax year on October 31. Tax act 2012 return If Fred did not elect to end his tax year on May 5, or if he elected to do so but Ethel had not joined in his election, Ethel would have 2 tax years in the same calendar year if she decided to close her tax year. Tax act 2012 return Her first tax year is January 1–October 31, and her second year is November 1–December 31. Tax act 2012 return If Fred did not end his tax year as of May 5, he could join in Ethel's election to close her tax year on October 31, but only if they file a joint return for the tax year January 1–October 31. Tax act 2012 return If Fred elected to end his tax year on May 5, but Ethel did not join in Fred's election, Fred cannot join in Ethel's election to end her tax year on October 31. Tax act 2012 return Fred and Ethel cannot file a joint return for that short tax year because their tax years preceding October 31 were not the same. Tax act 2012 return Example 3. Tax act 2012 return Jack and Karen Thomas are calendar-year taxpayers. Tax act 2012 return Karen's voluntary chapter 7 bankruptcy case began on April 10, and Jack's voluntary chapter 7 bankruptcy case began on October 3 of the same year. Tax act 2012 return Karen elected to close her tax year on April 9 and Jack joins in Karen's election. Tax act 2012 return Under these facts, Jack would have 3 tax years for the same calendar year if he makes the election relating to his own bankruptcy case. Tax act 2012 return The first tax year would be January 1–April 9; the second, April 10–October 2; and the third, October 3–December 31. Tax act 2012 return Karen may join in Jack's election if they file a joint return for the second short tax year (April 10–October 2). Tax act 2012 return If Karen does join in, she would have the same 3 short tax years as Jack. Tax act 2012 return Also, if Karen joins in Jack's election, they may file a joint return for the third tax year (October 3–December 31), but they are not required to do so. Tax act 2012 return Annualizing taxable income. Tax act 2012 return   If the debtor elects to close the tax year, the debtor must annualize taxable income for each short tax year in the same manner a change in annual accounting period is calculated. Tax act 2012 return See Short Tax Year in Publication 538, for information on how to annualize the debtor's income and to figure the tax for the short tax year. Tax act 2012 return Dismissal of bankruptcy case. Tax act 2012 return   If the bankruptcy court later dismisses an individual chapter 7 or 11 case, the bankruptcy estate is no longer treated as a separate taxable entity. Tax act 2012 return It is as if no bankruptcy estate was created for tax purposes. Tax act 2012 return In this situation, the debtor must file amended tax returns on Form 1040X, to replace all full or short year individual returns (Form 1040) and bankruptcy estate returns (Form 1041) filed as a result of the bankruptcy case. Tax act 2012 return Income, deductions, and credits previously reported by the bankruptcy estate must be reported on the debtor's amended returns. Tax act 2012 return Attach a statement to the amended returns explaining why the debtor is filing an amended return. Tax act 2012 return Taxes and the Bankruptcy Estate Property of the bankruptcy estate. Tax act 2012 return   At the commencement of a bankruptcy case a bankruptcy estate is created. Tax act 2012 return Bankruptcy law determines which of the debtor's assets become part of a bankruptcy estate. Tax act 2012 return This estate generally includes all of the debtor's legal and equitable interests in property as of the commencement date. Tax act 2012 return However, there are exceptions and certain property is exempted or excluded from the bankruptcy estate. Tax act 2012 return Note. Tax act 2012 return Exempt property and abandoned property are initially part of the bankruptcy estate, but are subsequently removed from the estate. Tax act 2012 return Excluded property is never included in the estate. Tax act 2012 return Transfer of assets between debtor and bankruptcy estate. Tax act 2012 return   The transfer (other than by sale or exchange) of an asset from the debtor to the bankruptcy estate is not treated as a disposition for income tax purposes. Tax act 2012 return The transfer does not result in gain or loss, acceleration of income or deductions, or recapture of deductions or credits. Tax act 2012 return For example, the transfer of an installment obligation to the estate would not accelerate gain under the rules for reporting installment sales. Tax act 2012 return The estate assumes the same basis, holding period, and character of the transferred assets. Tax act 2012 return Also, the estate generally accounts for the transferred assets in the same manner as debtor. Tax act 2012 return   When the bankruptcy estate is terminated or dissolved, any resulting transfer (other than by sale or exchange) of the estate's assets back to the debtor is also not treated as a disposition for tax purposes. Tax act 2012 return The transfer does not result in gain or loss, acceleration of income or deductions, or recapture of deductions or credits to the estate. Tax act 2012 return Abandoned property. Tax act 2012 return    The abandonment of property by the estate to the debtor is a nontaxable disposition of property. Tax act 2012 return If the debtor received abandoned property from the bankruptcy estate, the debtor assumes the same basis in the property that the bankruptcy estate had. Tax act 2012 return Separate taxable entity. Tax act 2012 return   When an individual files a bankruptcy petition under chapter 7 or 11, the bankruptcy estate is treated as a separate taxable entity from the debtor. Tax act 2012 return The court appointed trustee or the debtor-in-possession is responsible for preparing and filing all of the bankruptcy estate's tax returns, including its income tax return on Form 1041, U. Tax act 2012 return S. Tax act 2012 return Income Tax Return for Estates and Trusts, and paying its taxes. Tax act 2012 return The debtor remains responsible for filing his or her own returns on Form 1040, U. Tax act 2012 return S. Tax act 2012 return Individual Income Tax Return, and paying taxes on income that does not belong to the estate. Tax act 2012 return Employer identification number. Tax act 2012 return   The trustee or debtor-in-possession must obtain an EIN for a bankruptcy estate. Tax act 2012 return The trustee or debtor-in-possession uses this EIN on all tax returns filed for the bankruptcy estate with the IRS, including estimated tax returns. Tax act 2012 return See Employer identification number, under Bankruptcy Estate Tax Return Filing Requirements and Payment of Tax Due, later. Tax act 2012 return    The social security number of the individual debtor cannot be used as the EIN for the bankruptcy estate. Tax act 2012 return Income, deductions, and credits – Form 1040. Tax act 2012 return   In an individual chapter 7 or 11 bankruptcy case, do not include the income, deductions, and credits that belong to the bankruptcy estate on the debtor's individual income tax return (Form 1040). Tax act 2012 return Also, do not include as income on the debtor's return the amount of any debt canceled by reason of the bankruptcy discharge. Tax act 2012 return The bankruptcy estate must reduce certain losses, credits, and the basis in property (to the extent of these items) by the amount of canceled debt. Tax act 2012 return See Debt Cancellation, below. Tax act 2012 return Note. Tax act 2012 return The debtor may not be able to claim certain deductions available to the bankruptcy estate such as administrative expenses. Tax act 2012 return Additionally, the bankruptcy exclusion cannot be used to exclude income from a cancelled debt if the discharge of indebtedness was not within the bankruptcy case, even though the debtor was under the bankruptcy court's protection at the time. Tax act 2012 return However, other exclusions, such as the insolvency exclusion, may apply. Tax act 2012 return Bankruptcy Estate – Income, Deductions, and Credits Bankruptcy Estate Income Income of the estate in individual chapter 7 cases. Tax act 2012 return    The gross income of the bankruptcy estate includes gross income of the debtor to which the estate is entitled under the Bankruptcy Code. Tax act 2012 return Gross income also includes income generated by the bankruptcy estate from property of the estate after the commencement of the case. Tax act 2012 return   Gross income of the bankruptcy estate does not include amounts received or accrued by the debtor before the commencement of the case. Tax act 2012 return Additionally, in chapter 7 cases, gross income of the bankruptcy estate does not include any income that the debtor earns after the date of the bankruptcy petition. Tax act 2012 return Income of the estate in individual chapter 11 cases. Tax act 2012 return    In chapter 11 cases, under IRC section 1398(e)(1), gross income of the bankruptcy estate includes income that the debtor earns for services performed after the bankruptcy petition date. Tax act 2012 return Also, earnings from services performed by an individual debtor after the commencement of the chapter 11 case are property of the bankruptcy estate under section 1115 of the Bankruptcy Code (11 U. Tax act 2012 return S. Tax act 2012 return C. Tax act 2012 return section 1115). Tax act 2012 return Note. Tax act 2012 return A debtor-in-possession may be compensated by the estate for managing or operating a trade or business that the debtor conducted before the commencement of the bankruptcy case. Tax act 2012 return Such payments should be reported by the debtor as miscellaneous income on his or her individual income tax return (Form 1040). Tax act 2012 return Amounts paid by the estate to the debtor-in-possession for managing or operating the trade or business may qualify as administrative expenses of the estate. Tax act 2012 return See Administrative expenses, below. Tax act 2012 return Conversion or dismissal of chapter 11 cases. Tax act 2012 return   If a chapter 11 case is converted to a chapter 13 case, the chapter 13 estate is not a separate taxable entity and earnings from post-conversion services and income from property of the estate realized after the conversion to chapter 13 are taxed to the debtor. Tax act 2012 return If the chapter 11 case is converted to a chapter 7 case, 11 U. Tax act 2012 return S. Tax act 2012 return C. Tax act 2012 return section 1115 does not apply after conversion and: Earnings from post-conversion services will be taxed to the debtor, rather than the estate, and The property of the chapter 11 estate will become property of the chapter 7 estate. Tax act 2012 return Any income on this property will be taxed to the estate even if the income is realized after the conversion to chapter 7. Tax act 2012 return If a chapter 11 case is dismissed, the debtor is treated as if the bankruptcy case had never been filed and as if no bankruptcy estate had been created. Tax act 2012 return Bankruptcy Estate Deductions and Credits A bankruptcy estate deducts expenses incurred in a trade, business, or activity, and uses credits in the same way the debtor would have deducted or credited them had he or she continued operations. Tax act 2012 return Note. Tax act 2012 return Expenses may be disallowed under other provisions of the IRC (such as the disallowance of certain capital expenditures or expenses relating to tax-exempt interest). Tax act 2012 return Administrative expenses. Tax act 2012 return   Allowable expenses include administrative expenses. Tax act 2012 return    Administrative expenses can only be deducted by the estate, never by the debtor. Tax act 2012 return   The bankruptcy estate is allowed deductions for bankruptcy administrative expenses and fees, including accounting fees, attorney fees, and court costs. Tax act 2012 return These expenses are deductible on Form 1040, Schedule A as miscellaneous itemized deductions not subject to the 2% floor on miscellaneous itemized deductions, because they would not have been incurred if property had not been held by the bankruptcy estate. Tax act 2012 return See IRC section 67(e). Tax act 2012 return Administrative expenses of the bankruptcy estate attributable to conducting a trade or business for the production of estate rents or royalties are deductible in arriving at adjusted gross income on Form 1040, Schedules C, E, and F. Tax act 2012 return Note. Tax act 2012 return The bankruptcy estate uses Form 1041 as a transmittal for the tax return prepared using Form 1040 and its schedules. Tax act 2012 return See Transmittal for Form 1040 under Tax Return Filing Requirements and Payment of Tax, later. Tax act 2012 return Administrative expense loss. Tax act 2012 return   If the administrative expenses of the bankruptcy estate are more than its gross income for a tax year, the excess amount may be carried back 3 years and forward 7 years. Tax act 2012 return The amounts can only be carried to a tax year of the estate and never to a debtor's tax year. Tax act 2012 return The excess amount to be carried back or forward is treated like a net operating loss (NOL) and must first be carried back to the earliest year possible. Tax act 2012 return For a discussion of NOLs, see Publication 536. Tax act 2012 return Attribute carryovers. Tax act 2012 return   The bankruptcy estate may use its tax attributes the same way that the debtor would have used them. Tax act 2012 return These items are determined as of the first day of the debtor's tax year in which the bankruptcy case begins. Tax act 2012 return The bankruptcy estate assumes the following tax attributes from the debtor: NOL carryovers, Carryovers of excess charitable contributions, Recovery of tax benefit items, Credit carryovers, Capital loss carryovers, Basis, holding period, and character of assets, Method of accounting, Passive activity loss and credit carryovers, Unused at-risk deductions, and Other tax attributes provided in the regulations. Tax act 2012 return   Certain tax attributes of the bankruptcy estate must be reduced by the amount of income that was previously excluded as a result of cancellation of debt during the bankruptcy proceeding. Tax act 2012 return See Debt Cancellation, later. Tax act 2012 return   When the bankruptcy estate is terminated (for example, when the case ends), the debtor assumes any remaining tax attributes previously taken over by the bankruptcy estate. Tax act 2012 return The debtor also generally assumes any of the tax attributes, listed above, that arose during the administration of the bankruptcy estate. Tax act 2012 return Note. Tax act 2012 return The debtor does not assume the bankruptcy estate's administrative expense losses because they cannot be used by an individual taxpayer filing Form 1040. Tax act 2012 return See Administrative expense loss, above. Tax act 2012 return Passive and at-risk activities. Tax act 2012 return   For bankruptcy cases beginning after November 8, 1992, passive activity carryover losses and credits and unused at-risk deductions are treated as tax attributes passing from the debtor to the bankruptcy estate, which the estate then passes back to the debtor when the bankruptcy estate terminates. Tax act 2012 return Additionally, transfers to the debtor (other than by sale or exchange) of interests in passive or at-risk activities are treated as non-taxable exchanges. Tax act 2012 return These transfers include the return of exempt property and abandonment of estate property to the debtor. Tax act 2012 return Carrybacks from the debtor's activities. Tax act 2012 return   The debtor cannot carry back any NOL or credit carryback from a tax year ending after the bankruptcy case has begun to any tax year ending before the case began. Tax act 2012 return Carrybacks from the bankruptcy estate. Tax act 2012 return   If the bankruptcy estate has an NOL that did not pass to the estate from the debtor under the attribute carryover rules, the estate can carry the loss back not only to its own earlier tax years but also to the debtor's tax years before the year the bankruptcy case began. Tax act 2012 return The estate may also carry back excess credits, such as the general business credit, to the pre-bankruptcy tax years. Tax act 2012 return Tax Reporting – Chapter 11 Cases Allocation of income and credits on information returns and required statement for returns for individual chapter 11 cases. Tax act 2012 return    In chapter 11 cases, when an employer issues a Form W-2 reporting all of the debtor's wages, salary, or other compensation for a calendar year, and a portion of the earnings represent post-petition services includible in the estate's gross income, the Form W-2 amounts must be allocated between the estate and the debtor. Tax act 2012 return The debtor-in-possession or trustee must allocate the income amount reported in box 1 and the income tax withheld reported in box 2 between the debtor and the estate. Tax act 2012 return These allocations must reflect that the debtor's gross earnings from post-petition services and gross income from post-petition property are, generally, includible in the estate's gross income and not the debtor's gross income. Tax act 2012 return The debtor and trustee may use a simple percentage method to allocate income and income tax withheld. Tax act 2012 return The same method must be used to allocate the income and the withheld tax. Tax act 2012 return Example. Tax act 2012 return If 20% of the wages reported on Form W-2 for a calendar year were earned after the commencement of the case and are included in the estate's gross income, 20% of the withheld income tax reported on Form W-2 must also be claimed as a credit on the estate's income tax return. Tax act 2012 return Likewise, 80% of wages must be reported by the debtor and 80% of the income tax withheld must be claimed as a credit on the debtor's income tax return. Tax act 2012 return See IRC section 31(a). Tax act 2012 return   If information returns are issued to the debtor for gross income, gross proceeds, or other reportable payments that should have been reported to the bankruptcy estate, the debtor-in-possession or trustee must allocate the improperly reported income in a reasonable manner between the debtor and the estate. Tax act 2012 return In general, the allocation must ensure that any income and income tax withheld attributable to the post-petition period is reported on the estate's return, and any income and income tax withheld attributable to the pre-petition period is reported on the debtor's return. Tax act 2012 return    IRS Notice 2006-83 requires the debtor to attach a statement to his or her individual income tax return (Form 1040) stating that the return is filed subject to a chapter 11 bankruptcy case. Tax act 2012 return The statement must also: Show the allocations of income and income tax withheld, Describe the method used to allocate income and income tax withheld, and List the filing date of the bankruptcy case, the bankruptcy court in which the case is pending, the bankruptcy court case number, and the bankruptcy estate's EIN. Tax act 2012 return Note. Tax act 2012 return The debtor-in-possession or trustee must attach a similar statement to the bankruptcy estate's income tax return (Form 1041). Tax act 2012 return   The model Notice 2006-83 Statement, shown above, may be used by debtors, debtors-in-possession, and trustees to satisfy the reporting requirement. Tax act 2012 return Self-employment taxes in individual chapter 11 cases. Tax act 2012 return   IRC section 1401 imposes a tax upon the self-employment income, that is, the net earnings from self-employment of an individual. Tax act 2012 return Net earnings from self-employment are equal to the gross income derived by an individual from any trade or business carried on by such individual, less deductions attributable to the business. Tax act 2012 return   Neither section 1115 of the Bankruptcy Code nor IRC section 1398 addresses the application of self-employment tax to the post-petition earnings of the individual debtor. Tax act 2012 return Therefore, if the debtor continues to derive gross income from the performance of services as a self-employed individual after the commencement of the bankruptcy case, the debtor must continue to report the debtor's self-employment income on Schedule SE (Form 1040) of the debtor's income tax return. Tax act 2012 return This schedule includes self-employment income earned post-petition and the attributable deductions. Tax act 2012 return The debtor must pay any self-employment tax imposed by IRC section 1401. Tax act 2012 return Employment taxes and employer's obligation to file Form W-2 in individual chapter 11 cases. Tax act 2012 return   In chapter 11 cases, post-petition wages earned by a debtor are generally treated as gross income of the estate. Tax act 2012 return However, section 1115 of the Bankruptcy Code (11 U. Tax act 2012 return S. Tax act 2012 return C. Tax act 2012 return section 1115) does not affect the determination of what are deemed wages for Federal Insurance Contributions Act (FICA) tax, Federal Unemployment Tax Act (FUTA) tax, or Federal Income Tax Withholding purposes. Tax act 2012 return See Notice 2006-83. Tax act 2012 return   The reporting and withholding obligations of a debtor's employer also do not change. Tax act 2012 return An employer should continue to report the wages and tax withholding on a Form W-2 issued under the debtor's name and social security number. Tax act 2012 return Notice to persons required to file information returns (other than Form W-2, Wage and Tax Statement) in individual chapter 11 cases. Tax act 2012 return   Within a reasonable time after the commencement of a chapter 11 bankruptcy case, the trustee or debtor-in-possession should provide notification of the bankruptcy estate's EIN to all persons (or entities) that are required to file information returns for the bankruptcy estate's gross income, gross proceeds, or other types of reportable payments. Tax act 2012 return See IRC section 6109(a)(2). Tax act 2012 return As these payments are the property of the estate under section 1115 of the Bankruptcy Code, the payors should report the gross income, gross proceeds, or other reportable payments on the appropriate information return using the estate's name and EIN as required under the IRC and regulations (see IRC sections 6041 through 6049). Tax act 2012 return   The trustee or debtor-in-possession should not, however, provide the EIN to a person (or entity) filing Form W-2 reporting the debtor's wages or other compensation, as section 1115 of the Bankruptcy Code does not affect the determination of what constitutes wages for purposes of federal income tax withholding or FICA. Tax act 2012 return See Notice 2006-83. Tax act 2012 return An employer should continue to report all wage income and tax withholding, both pre-petition and post-petition, on a Form W-2 to the debtor under the debtor's social security number. Tax act 2012 return   The debtor in a chapter 11 case is not required to file a new Form W-4 with an employer solely because the debtor filed a chapter 11 case and the post-petition wages are includible in the estate's income and not the debtor's income. Tax act 2012 return However, a new Form W-4 may be necessary if the debtor is no longer entitled to claim the same number of allowances previously claimed because certain deductions or credits now belong to the estate. Tax act 2012 return See Employment Tax Regulations section 31. Tax act 2012 return 3402(f)(2)-1. Tax act 2012 return Additionally, the debtor may wish to file a new Form W-4 to increase the income tax withheld from post-petition wages allocated to the estate to avoid having to make estimated tax payments for the estate. Tax act 2012 return See IRC section 6654(a). Tax act 2012 return Notice required in converted and dismissed cases. Tax act 2012 return   When a chapter 11 bankruptcy case is closed, dismissed, or converted to a chapter 12 or 13 case, the bankruptcy estate ends as a separate taxable entity. Tax act 2012 return The debtor should, within a reasonable time, send notice of such event to the persons (or entities) previously notified of the bankruptcy case. Tax act 2012 return This helps to ensure that gross income, proceeds, and other reportable payments realized after the event are reported to the debtor under the correct TIN rather than to the estate. Tax act 2012 return   When a chapter 11 case is converted to a chapter 7 case, the bankruptcy estate will continue to exist as a separate taxable entity. Tax act 2012 return Gross income (other than post-conversion income from the debtor's services), gross proceeds, or other reportable payments should continue to be reported to the estate if they are property of the chapter 7 estate. Tax act 2012 return However, income from services performed by the debtor after conversion of the case to chapter 7 is not property of the chapter 7 estate. Tax act 2012 return After the conversion, the debtor should notify payors required to report the debtor's nonemployee compensation that compensation earned after the conversion should be reported using the debtor's name and TIN, not the estate's name and EIN. Tax act 2012 return Employment taxes. Tax act 2012 return   The trustee or debtor-in-possession must withhold income and social security taxes and file employment tax returns for any wages paid by the trustee or debtor, including wage claims paid as administrative expenses. Tax act 2012 return See Publication 15, Circular E, Employer's Tax Guide, for details on employer tax responsibilities. Tax act 2012 return   The trustee also has the duty to prepare and file Forms W-2 for wage claims paid by the trustee, regardless of whether the claims accrued before or during bankruptcy. Tax act 2012 return For a further discussion of employment taxes, see Employment Taxes, later. Tax act 2012 return Notice 2006-83 Statement Pending Bankruptcy Case The taxpayer, , filed a bankruptcy petition under chapter 11 of the Bankruptcy Code in the bankruptcy court for the District of . Tax act 2012 return The bankruptcy court case number is . Tax act 2012 return Gross income, and withheld federal income tax, reported on Form W-2, Forms 1099, Schedule K-1, and other information returns received under the taxpayer's name and social security number (or other taxpayer identification number) are allocated between the taxpayer's TIN and the bankruptcy estate's EIN as follows, using [describe allocation method]:. Tax act 2012 return   Year Taxpayer   Estate 1. Tax act 2012 return Form W-2, Payor: $   $     Withheld income tax shown on Form W-2 $   $   2. Tax act 2012 return Form 1099-INT Payor: $   $     Withheld income tax (if any) shown on Form 1099-INT $   $   3. Tax act 2012 return Form 1099-DIV Payor: $   $     Withheld income tax (if any) shown on Form 1099-DIV $   $   4. Tax act 2012 return Form 1099-MISC Payor: $   $     Withheld income tax (if any) shown on Form 1099-MISC $   $   Bankruptcy Estate Tax Return Filing Requirements and Payment of Tax Due Filing Requirements Filing threshold. Tax act 2012 return   If the bankruptcy estate has gross income that meets or exceeds the minimum amount required for filing, the trustee or debtor-in-possession must file an income tax return on Form 1041. Tax act 2012 return This amount is equal to the sum of the personal exemption amount plus the basic standard deduction for a married individual filing separately. Tax act 2012 return   For 2012, the threshold filing amount for a bankruptcy estate is $9,750 (the sum of the $3,800 personal exemption plus the $5,950 standard deduction for married individuals filing separately). Tax act 2012 return   These amounts are generally adjusted annually. Tax act 2012 return See the present year Form 1041 Instructions at www. Tax act 2012 return irs. Tax act 2012 return gov/form1041 for the current dollar amounts. Tax act 2012 return Accounting period. Tax act 2012 return   A bankruptcy estate may have a fiscal year. Tax act 2012 return However, this period cannot be longer than 12 months. Tax act 2012 return Change of accounting period. Tax act 2012 return   The bankruptcy estate may change its accounting period (tax year) once without IRS approval. Tax act 2012 return This rule allows the bankruptcy trustee to close the estate's tax year early, before the expected termination of the bankruptcy estate. Tax act 2012 return The trustee can then file a return for the first short tax year to get a quick determination of the estate's tax liability. Tax act 2012 return Employer identification number. Tax act 2012 return   The trustee or debtor-in-possession must obtain an EIN for a bankruptcy estate. Tax act 2012 return The trustee or debtor-in-possession uses this EIN on all tax returns filed for the bankruptcy estate with the IRS, including estimated tax returns. Tax act 2012 return    The social security number of the individual debtor cannot be used as the EIN for the bankruptcy estate. Tax act 2012 return   Obtain an EIN for a bankruptcy estate by applying: Online by clicking on the EIN link at www. Tax act 2012 return irs. Tax act 2012 return gov/businesses/small. Tax act 2012 return The EIN is issued immediately once the application information is validated. Tax act 2012 return By telephone at 1-800-829-4933 from 7:00 a. Tax act 2012 return m. Tax act 2012 return to 7:00 p. Tax act 2012 return m. Tax act 2012 return in the trustee's or debtor-in-possession's local time zone. Tax act 2012 return Assistance provided to callers from Alaska and Hawaii will be based on the hours of operation in the Pacific time zone, or By mailing or faxing Form SS-4, Application for Employer Identification Number. Tax act 2012 return   If the trustee or debtor-in-possession has not received the bankruptcy estate's EIN by the time the return is due, write “Applied for” and the date you applied in the space for the EIN. Tax act 2012 return For more details, see Pub. Tax act 2012 return 583, Starting a Business and Keeping Records. Tax act 2012 return   Trustees representing ten or more bankruptcy estates (other than estates that will be filing employment or excise tax returns) may request a series or block of EINs. Tax act 2012 return Figuring tax due. Tax act 2012 return   The bankruptcy estate figures its taxable income the same way an individual figures taxable income. Tax act 2012 return However, the estate uses the tax rates for a married individual filing separately to calculate the tax on its taxable income. Tax act 2012 return The estate is entitled to one personal exemption and may either itemize deductions or take the basic standard deduction for a married individual filing a separate return. Tax act 2012 return The estate cannot take the higher standard deduction allowed for married persons filing separately who are 65 or older or blind. Tax act 2012 return Tax rate schedule. Tax act 2012 return The tax on income for bankruptcy estates is calculated using the tax rate schedule for Married Individuals Filing Separately not the Estates and Trusts tax rate schedule. Tax act 2012 return When to file. Tax act 2012 return   Calendar year bankruptcy estates must file Form 1041 by April 15th. Tax act 2012 return Fiscal year bankruptcy estates must file on or before the 15th day of the 4th month following the close of its tax year. Tax act 2012 return For example, an estate that has a tax year that ends on June 30th must file Form 1041 by October 15th of the tax year. Tax act 2012 return If the due date falls on a Saturday, Sunday, or legal holiday, file on the next business day. Tax act 2012 return Note. Tax act 2012 return The bankruptcy estate is allowed an automatic 6-month extension of time to file the bankruptcy estate tax return upon filing the required application, Form 7004, Application for Automatic Extension of Time To File Certain Business Income Tax, Information, and Other Returns. Tax act 2012 return Transmittal for Form 1040. Tax act 2012 return   Form 1041 is used as a transmittal for Form 1040. Tax act 2012 return If a return is required, the trustee or debtor-in-possession must complete the identification area at the top of Form 1041 and indicate the chapter under which the bankruptcy estate filed, either chapter 7 or chapter 11. Tax act 2012 return   Prepare the bankruptcy estate's return by completing Form 1040. Tax act 2012 return In the top margin of Form 1040, write “Attachment to Form 1041 —DO NOT DETACH. Tax act 2012 return ” Then, attach Form 1040 to the Form 1041 transmittal. Tax act 2012 return Enter the tax and payment amounts on lines 23 through 29 of Form 1041, then sign and date the return. Tax act 2012 return An example of a bankruptcy estate's tax return is prepared below. Tax act 2012 return Note. Tax act 2012 return The filing of the bankruptcy estate's tax return does not relieve a debtor from the requirement to file his or her individual tax return on Form 1040. Tax act 2012 return Payment of Tax Due Payment methods. Tax act 2012 return   Payment of tax due may be made by check or money order or by credit or debit card. Tax act 2012 return For information on how to make payments electronically by credit or debit card, go to irs. Tax act 2012 return gov/e-pay. Tax act 2012 return      Payments may also be made electronically using the Electronic Federal Tax Payment System (EFTPS), a free tax payment system that allows you to make payments online or by phone. Tax act 2012 return To enroll in EFTPS, go to eftps. Tax act 2012 return gov or call 1-800-555-4477. Tax act 2012 return For more information see Publication 966, Electronic Federal Tax Payment System: A Guide to Getting Started. Tax act 2012 return Payment voucher – Form 1041-V. Tax act 2012 return   Form 1041-V accompanies payments made by check or money order for Form 1041. Tax act 2012 return The voucher includes information about the bankruptcy estate, including the name of the bankruptcy estate, trustee, EIN, and amount due. Tax act 2012 return Using Form 1041-V assists the IRS in processing the payment more accurately and efficiently. Tax act 2012 return We recommend the use of Form 1041-V; however, there is no penalty if the voucher is not used. Tax act 2012 return Estimated tax – Form 1041-ES. Tax act 2012 return   In most cases, the trustee or debtor-in-possession must pay any required estimated tax due for the bankruptcy estate. Tax act 2012 return See the Form 1041-ES Instructions for information on the minimum threshold amount required for filing Form 1041-ES, paying the estimated tax, and exceptions to filing. Tax act 2012 return Employment Taxes The trustee or debtor-in-possession must withhold income and social security taxes and file employment tax returns for any wages paid by the trustee or debtor, including wage claims paid as administrative expenses. Tax act 2012 return Until these employment taxes are deposited as required by the IRC, they should be set aside in a separate bank account to ensure that funds are available to satisfy the liability. Tax act 2012 return If the employment taxes are not paid as required, the trustee may be held personally liable for payment of the taxes. Tax act 2012 return   See Publication 15, (Circular E), Employer's Tax Guide, for details on employer tax responsibilities. Tax act 2012 return Also see IRS Notice 931, Deposit Requirements for Employment Taxes, for details on the deposit rules, including the requirement that federal employment tax deposits be made by electronic funds transfer. Tax act 2012 return The trustee also has a duty to prepare and file Forms W-2, Wage and Tax Statement, for wage claims paid by the trustee, regardless of whether the claims accrued before or during bankruptcy. Tax act 2012 return If the debtor fails to prepare and file Forms W-2 for wages paid before bankruptcy, the trustee should instruct the employees to file a Form 4852, Substitute for Form W-2, Wage and Tax Statement, or Form 1099-R, Distributions From Pensions, Annuities, Retirement or Profit-Sharing Plans, IRAs, Insurance Contracts, etc. Tax act 2012 return , with their individual income tax returns. Tax act 2012 return Tax Return Example – Form 1041 This publication is not revised annually. Tax act 2012 return Future changes to the forms and their instructions may not be reflected in this example. Tax act 2012 return Note. Tax act 2012 return The following return was prepared for tax year 2011. Tax act 2012 return In 2011, the threshold filing amount for a bankruptcy estate was $9,500 (the sum of the $3,700 personal exemption plus the $5,800 standard deduction for married individuals filing separately). Tax act 2012 return Facts and circumstances. Tax act 2012 return   On December 15, 2010, Thomas Smith filed a bankruptcy petition under chapter 7. Tax act 2012 return Joan Black was appointed trustee to administer the bankruptcy estate and to distribute the assets. Tax act 2012 return   The estate received the following assets from Mr. Tax act 2012 return Smith: A $100,000 certificate of deposit, Commercial rental real estate with a fair market value (FMV) of $280,000, and His personal residence with an FMV of $200,000. Tax act 2012 return   Also, the estate received a $251,500 capital loss carryover. Tax act 2012 return   Mr. Tax act 2012 return Smith's bankruptcy case was closed on December 31, 2011. Tax act 2012 return During 2011, Mr. Tax act 2012 return Smith was relieved of $70,000 of debt by the bankruptcy court. Tax act 2012 return The estate chose a calendar year as its tax year. Tax act 2012 return Joan, the trustee, reviews the estate's transactions and reports the taxable events on the estate's final return. Tax act 2012 return Schedule B (Form 1040). Tax act 2012 return    The certificate of deposit earned $5,500 of interest during 2011. Tax act 2012 return Joan reports this interest on Schedule B. Tax act 2012 return She completes this schedule and enters the result on Form 1040. Tax act 2012 return Form 4562. Tax act 2012 return   Joan enters the depreciation allowed on Form 4562. Tax act 2012 return She completes the form and enters the result on Schedule E. Tax act 2012 return Schedule E (Form 1040). Tax act 2012 return   The commercial real estate was rented through the date of sale. Tax act 2012 return Joan reports the income and expenses on Schedule E. Tax act 2012 return She enters the net income on Form 1040. Tax act 2012 return Form 4797. Tax act 2012 return   The commercial real estate was sold on July 1, 2011, for $280,000. Tax act 2012 return The property was purchased in 2001 at a cost of $250,000. Tax act 2012 return The total depreciation allowable as of the date of sale was $120,000. Tax act 2012 return Additionally, $25,000 of selling expenses were incurred. Tax act 2012 return Joan reports the gain or loss from the sale on Form 4797. Tax act 2012 return She completes the form and enters the gain on Schedule D (Form 1040). Tax act 2012 return   Mr. Tax act 2012 return Smith's former residence was sold on September 30, 2011. Tax act 2012 return The sale price was $200,000, the selling expenses were $20,000, and his adjusted basis was $130,000. Tax act 2012 return This sale is excluded from gross income under IRC section 121. Tax act 2012 return Note. Tax act 2012 return Gains from the sale of personal residences are excluded from gross income up to $250,000 under IRC section 121 ($500,000 for married couples filing a joint return). Tax act 2012 return Bankruptcy estates succeed to this exclusion at the commencement of the case. Tax act 2012 return See Regulation section 1. Tax act 2012 return 1398-3. Tax act 2012 return Schedule D (Form 1040). Tax act 2012 return   Joan completes Schedule D, taking into account the $250,000 capital loss carryover from 2010 ($251,500 transferred to the estate minus $1,500 used on the estate's 2010 return). Tax act 2012 return She enters the results on Form 1040. Tax act 2012 return Form 1040, page 1. Tax act 2012 return   Joan completes page 1 of the Form 1040 and enters the adjusted gross income on the first line of Form 1040, page 2. Tax act 2012 return Schedule A (Form 1040). Tax act 2012 return   During 2011, the estate paid mortgage interest and real property tax on Mr. Tax act 2012 return Smith's former residence. Tax act 2012 return It also paid income tax to the state. Tax act 2012 return Joan enters the mortgage interest, real estate tax, and income tax on Schedule A. Tax act 2012 return Also, she reports the bankruptcy estate's administrative expenses as a miscellaneous deduction not subject to the 2% floor on miscellaneous itemized deductions. Tax act 2012 return She completes the Schedule A and enters the result on page 2 of Form 1040. Tax act 2012 return Form 1040, page 2. Tax act 2012 return   Joan determines the estate's taxable income and figures its tax using the tax rate schedule for married filing separately. Tax act 2012 return She then enters the estate's estimated tax payments and figures the amount the estate still owes. Tax act 2012 return Form 982. Tax act 2012 return   Joan completes the Schedule D Tax Worksheet to figure the capital loss carryover. Tax act 2012 return Because $70,000 of debt was canceled, Joan must reduce the tax attributes of the estate by the amount of the canceled debt. Tax act 2012 return See Debt Cancellation, later. Tax act 2012 return After the bankruptcy case ends, Mr. Tax act 2012 return Smith will assume the estate's tax attributes. Tax act 2012 return Mr. Tax act 2012 return Smith will assume a capital loss carryover of $53,500 ($123,500 carryover minus the $70,000 attribute reduction) for use in preparation of his individual tax return (Form 1040). Tax act 2012 return Note. Tax act 2012 return If the bankruptcy estate had continued, the capital loss carryover would be available to the bankruptcy estate for the 2012 tax year. Tax act 2012 return Form 1041. Tax act 2012 return   Joan enters the total tax, estimated tax payments, and tax due from Form 1040 on Form 1041. Tax act 2012 return She completes the identification area at the top of Form 1041, then signs and dates the return as the trustee on behalf of the bankruptcy estate. Tax act 2012 return This image is too large to be displayed in the current screen. Tax act 2012 return Please click the link to view the image. Tax act 2012 return Sample Form 1040 - page 1 This image is too large to be displayed in the current screen. Tax act 2012 return Please click the link to view the image. Tax act 2012 return Sample Form 1040 - page 2 This image is too large to be displayed in the current screen. Tax act 2012 return Please click the link to view the image. Tax act 2012 return Sample Schedule A This image is too large to be displayed in the current screen. Tax act 2012 return Please click the link to view the image. Tax act 2012 return Sample Schedule B This image is too large to be displayed in the current screen. Tax act 2012 return Please click the link to view the image. Tax act 2012 return Sample Schedule D This image is too large to be displayed in the current screen. Tax act 2012 return Please click the link to view the image. Tax act 2012 return Sample Schedule E This image is too large to be displayed in the current screen. Tax act 2012 return Please click the link to view the image. Tax act 2012 return Sample Form 4797 - page 1 This image is too large to be displayed in the current screen. Tax act 2012 return Please click the link to view the image. Tax act 2012 return Sample Form 2119 This image is too large to be displayed in the current screen. Tax act 2012 return Please click the link to view the image. Tax act 2012 return Sample Form 4797 - page 2 This image is too large to be displayed in the current screen. Tax act 2012 return Please click the link to view the image. Tax act 2012 return Sample Form 4562 This image is too large to be displayed in the current screen. Tax act 2012 return Please click the link to view the image. Tax act 2012 return Sample Capital Loss Carryover Worksheet This image is too large to be displayed in the current screen. Tax act 2012 return Please click the link to view the image. Tax act 2012 return Sample Form 982 Capital Loss Carryover Worksheet—Lines 6 and 14 Use this worksheet to figure your capital loss carryovers from 2010 to 2011 if your 2010 Schedule D, line 21, is a loss and (a) that loss is a smaller loss than the loss on your 2010 Schedule D, line 16, or (b) the amount on your 2010 Form 1040, line 41 (or your 2010 Form 1040NR, line 38, if applicable) is less than zero. Tax act 2012 return Otherwise, you do not have any carryovers. Tax act 2012 return 1. Tax act 2012 return Enter the amount from your 2010 Form 1040, line 41, or Form 1040NR, line 38. Tax act 2012 return If a loss, enclose the amount in parentheses 1. Tax act 2012 return 19,880   2. Tax act 2012 return Enter the loss from your 2010 Schedule D, line 21, as a positive amount 2. Tax act 2012 return 1,500   3. Tax act 2012 return Combine lines 1 and 2. Tax act 2012 return If zero or less, enter -0- 3. Tax act 2012 return 21,380   4. Tax act 2012 return Enter the smaller of line 2 or line 3 4. Tax act 2012 return 1,500     If line 7 of your 2010 Schedule D is a loss, go to line 5; otherwise, enter -0- on line 5 and go to line 9. Tax act 2012 return       5. Tax act 2012 return Enter the loss from your 2010 Schedule D, line 7, as a positive amount 5. Tax act 2012 return 0   6. Tax act 2012 return Enter any gain from your 2010 Schedule D, line 15. Tax act 2012 return If a loss, enter -0- 6. Tax act 2012 return         7. Tax act 2012 return Add lines 4 and 6 7. Tax act 2012 return 1,500   8. Tax act 2012 return Short-term capital loss carryover for 2011. Tax act 2012 return Subtract line 7 from line 5. Tax act 2012 return If zero or less, enter -0-. Tax act 2012 return If more than zero, also enter this amount on Schedule D, line 6 8. Tax act 2012 return 0     If line 15 of your 2010 Schedule D is a loss, go to line 9; otherwise, skip lines 9 through 13. Tax act 2012 return       9. Tax act 2012 return Enter the loss from your 2010 Schedule D, line 15, as a positive amount 9. Tax act 2012 return 251,500   10. Tax act 2012 return Enter any gain from your 2010 Schedule D, line 7. Tax act 2012 return If a loss, enter -0- 10. Tax act 2012 return 0       11. Tax act 2012 return Subtract line 5 from line 4. Tax act 2012 return If zero or less, enter -0- 11. Tax act 2012 return 1,500       12. Tax act 2012 return Add lines 10 and 11 12. Tax act 2012 return 1,500   13. Tax act 2012 return Long-term capital loss carryover for 2011. Tax act 2012 return Subtract line 12 from line 9. Tax act 2012 return If zero or less, enter -0-. Tax act 2012 return If more than zero, also enter this amount on Schedule D, line 14 13. Tax act 2012 return 250,000                       Partnerships and Corporations Filing Requirements A separate taxable estate is not created when a partnership or corporation files a bankruptcy petition and their tax return filing requirements do not change. Tax act 2012 return The debtor-in-possession, court appointed trustee, assignee, or receiver must file the entity's income tax returns on Form 1065, Form 1120 or, Form 1120S. Tax act 2012 return In cases where a trustee or receiver is not appointed, the debtor-in-possession continues business operations and remains in possession of the business' property during the bankruptcy proceeding. Tax act 2012 return The debtor-in-possession, rather than the general partner of a partnership or corporate officer of a corporation, assumes the fiduciary responsibility to file the business' tax returns. Tax act 2012 return Partnerships The filing requirements for a partnership in a bankruptcy proceeding do not change. Tax act 2012 return However, the responsibility to file the required returns becomes that of the court appointed trustee, receiver, or debtor-in-possession. Tax act 2012 return A partnership's debt that is canceled as a result of the bankruptcy proceeding is not included in the partnership's income. Tax act 2012 return However, It may or may not be included in the individual partners' income. Tax act 2012 return See Partnerships, below under Debt Cancellation. Tax act 2012 return Corporations The filing requirements for a corporation in a bankruptcy proceeding also do not change. Tax act 2012 return A bankruptcy trustee, receiver, or debtor-in-possession, having possession of or holding title to substantially all of the property or business operations of the debtor corporation, must file the debtor's corporate income tax return for the tax year. Tax act 2012 return The following discussion only highlights bankruptcy tax rules applying to corporations. Tax act 2012 return The complex details of corporate bankruptcy reorganizations are beyond the scope of this publication. Tax act 2012 return Therefore, you may wish to seek the help of a professional tax advisor. Tax act 2012 return See Corporations under Debt Cancellation for information about a corporation's debt canceled in a bankruptcy proceeding. Tax act 2012 return Tax-Free Reorganizations The tax-free reorganization provisions of the Internal Revenue Code allow a corporation to transfer all or part of its assets to another corporation in a bankruptcy under title 11 of the United States Code or in a similar case. Tax act 2012 return However, under the reorganization plan, the stock or securities of the corporation to which the assets are transferred must be distributed in a transaction that qualifies under IRC section 354, 355, or 356. Tax act 2012 return A “similar case” includes a receivership, foreclosure, or other similar proceeding in a federal or state court. Tax act 2012 return In these cases, any party to the reorganization must be under the jurisdiction of the court and the transfer of assets under the plan of reorganization must be approved by the court. Tax act 2012 return In a receivership, foreclosure, or similar proceeding before a federal or state agency involving certain financial institutions, the agency is treated as a court. Tax act 2012 return Generally, IRC section 354 provides that no gain or loss is recognized if a corporation's stock is exchanged solely for stock or securities in a corporation that is a party to the reorganization under a qualifying reorganization plan. Tax act 2012 return In this case, shareholders in the bankrupt corporation would recognize no gain or loss if they exchange their stock solely for stock or securities of the corporation acquiring the bankrupt corporation's assets. Tax act 2012 return IRC section 355 generally provides that no gain or loss is recognized by a shareholder if a corporation distributes solely stock or securities of another corporation that the distributing corporation controls immediately before the distribution. Tax act 2012 return IRC section 356 allows tax-free exchanges in situations that would qualify under IRC section 354 or 355, except that other property or money, in addition to the permitted stock or securities, is received by the shareholder. Tax act 2012 return In this situation, gain is recognized by the shareholder, but only to the extent of the money and the FMV of the other property received. Tax act 2012 return No loss is recognized in this situation. Tax act 2012 return Exemption from tax return filing A trustee, receiver, or assignee of a corporation in bankruptcy, receivership, or in the process of dissolving, may apply to the IRS for relief from filing federal income tax returns for the corporation. Tax act 2012 return To qualify, the corporation must have ceased business operations and have no assets nor income for the tax year. Tax act 2012 return The exemption request must be submitted to the local IRS Insolvency Office handling the case. Tax act 2012 return The request to the IRS must include the name, address, and EIN of the corporation and a statement of the facts (with any supporting documents) showing why the debtor needs relief from the filing requirements. Tax act 2012 return The request must also include the following statement: “I hereby request relief from filing federal income tax returns for tax years ending _____ for the above-named corporation and declare under penalties of perjury that to the best of my knowledge and belief the information contained herein is correct. Tax act 2012 return ” The statement must be signed by the trustee, receiver or assignee. Tax act 2012 return The statement must also include notice of appointment to act on behalf of the corporation (this is not required for bankruptcy trustees or debtors-in-possession). Tax act 2012 return The IRS will act on your request within 90 days. Tax act 2012 return Disclosure of return information to trustee. Tax act 2012 return   Upon written request, current and earlier returns of the debtor are open to inspection by or disclosure to the trustee or receiver. Tax act 2012 return However, in bankruptcy cases other than those of individuals filing under chapter 7 or 11, such as a corporate bankruptcy, the IRS must find that the trustee has a material interest that will be affected by information on the return. Tax act 2012 return Material interest is generally defined as a financial or monetary interest. Tax act 2012 return Material interest is not limited to the trustee's responsibility to file a return on behalf of the bankruptcy estate. Tax act 2012 return Receiverships Court-established receiverships sometimes arise in connection with bankruptcies. Tax act 2012 return Certain court-established receiverships should be treated as qualified settlement funds ("QSFs") for purposes of IRC section 468B and the underlying Treasury Regulations. Tax act 2012 return QSFs are required to file an annual income tax return, Form 1120-SF, U. Tax act 2012 return S. Tax act 2012 return Income Tax Return for Settlement Funds. Tax act 2012 return More information about QSFs may be found in Treasury Regulation sections 1. Tax act 2012 return 468B-1 through -5. Tax act 2012 return Determination of Tax The determination of the proper amount of tax due for a tax year begins with the bankruptcy estate's filing of Form 1041, and the individual debtor's filing of Form 1040, or for bankrupt entities filing Forms 1065, 1120, or 1120S. Tax act 2012 return After a return is filed, the IRS will either accept the return as filed or select the return for examination. Tax act 2012 return Under examination the IRS may redetermine the tax liability shown on the return. Tax act 2012 return If the bankruptcy estate or debtor disagrees with the redetermined tax due, the tax as redetermined by the IRS may be contested in the bankruptcy court, or Tax Court, as applicable. Tax act 2012 return See Court Jurisdiction over Tax Matters, later. Tax act 2012 return Prompt Determination Requests Pursuant to Rev. Tax act 2012 return Proc. Tax act 2012 return 2006-24, 2006-22 I. Tax act 2012 return R. Tax act 2012 return B. Tax act 2012 return 943, www. Tax act 2012 return irs. Tax act 2012 return gov/irb/2006-22_IRB/ar12, as modified by Announcement 2011-77, www. Tax act 2012 return irs. Tax act 2012 return gov/irb/2011-51_IRB/ar13, the bankruptcy trustee may request a determination of any unpaid tax liability incurred by the bankruptcy estate during the administration of the case, by filing a tax return and a request for such determination with the IRS. Tax act 2012 return Unless the return is fraudulent or contains a material misrepresentation, the estate, trustee, debtor, and any successor to the debtor are discharged from liability upon payment of the tax: As determined by the IRS, As determined by the bankruptcy court, after completion of the IRS examination, or As shown on the return, if the IRS does not: Notify the trustee within 60 days after the request for determination that the return has been selected for examination, or Complete the examination and notify the trustee of any tax due within 180 days after the request (or any additional time permitted by the bankruptcy court). Tax act 2012 return Making the request for determination. Tax act 2012 return   As detailed in Rev. Tax act 2012 return Proc. Tax act 2012 return 2006-24, as modified by Announcement 2011-77, to request a prompt determination of any unpaid tax liability of the estate, the trustee must file a signed written request, in duplicate, with the Internal Revenue Service, Centralized Insolvency Operation, P. Tax act 2012 return O. Tax act 2012 return Box 7346, Philadelphia, PA 19101–7346 (marked “Request for Prompt Determination”). Tax act 2012 return   The request must be submitted in duplicate and must be executed under penalties of perjury. Tax act 2012 return In addition, the trustee must submit along with the request an exact copy of the return(s) filed by the trustee with the IRS for each completed tax period. Tax act 2012 return The request must contain the following information: A statement indicating that it is a Request for Prompt Determination of Tax Liability, specifying the type of return and tax period for each return being filed. Tax act 2012 return The name and location of the office where the return was filed. Tax act 2012 return The name of the debtor. Tax act 2012 return Debtor's social security number, TIN, or EIN. Tax act 2012 return Type of bankruptcy estate. Tax act 2012 return Bankruptcy case number. Tax act 2012 return Court where the bankruptcy case is pending. Tax act 2012 return   The copy of the return(s) submitted with the request must be an exact copy of a valid return. Tax act 2012 return A request for prompt determination will be considered incomplete and returned to the trustee if it is filed with a copy of a document that does not qualify as a valid return. Tax act 2012 return    To qualify as valid, a return must meet certain criteria, including a signature under penalties of perjury. Tax act 2012 return A document filed by the trustee with the jurat stricken, deleted, or modified will not qualify as a valid return. Tax act 2012 return Examination of return. Tax act 2012 return   The IRS will notify the trustee within 60 days from receipt of the request whether the return filed by the trustee has been selected for examination or has been accepted as filed. Tax act 2012 return If the return is selected for examination, it will be examined as soon as possible. Tax act 2012 return The IRS will notify the trustee of any tax due within 180 days from receipt of the application or within any additional time permitted by the bankruptcy court. Tax act 2012 return   If a prompt determination request is incomplete, all the documents received by the IRS will be returned to the trustee by the assigned Field Insolvency Office with an explanation identifying the missing item(s) and instructions to re-file the request once corrected. Tax act 2012 return   Once corrected, the request must be filed with the IRS at the Field Insolvency Office address specified in the correspondence accompanying the returned incomplete request. Tax act 2012 return   In the case of an incomplete request submitted with a copy of an invalid return document, the trustee must file a valid original return with the appropriate IRS office and submit a copy of that return with the corrected request when the request is re-filed. Tax act 2012 return Note. Tax act 2012 return An incomplete request includes those submitted with a copy of a return form, the original of which does not qualify as a valid return. Tax act 2012 return   The 60-day period to notify the trustee whether the return is accepted as filed or has been selected for examination does not begin to run until a complete request package is recei