File your Taxes for Free!
  • Get your maximum refund*
  • 100% accurate calculations guaranteed*

TurboTax Federal Free Edition - File Taxes Online

Don't let filing your taxes get you down! We'll help make it as easy as possible. With e-file and direct deposit, there's no faster way to get your refund!

Approved TurboTax Affiliate Site. TurboTax and TurboTax Online, among others, are registered trademarks and/or service marks of Intuit Inc. in the United States and other countries. Other parties' trademarks or service marks are the property of the respective owners.


© 2012 - 2018 All rights reserved.

This is an Approved TurboTax Affiliate site. TurboTax and TurboTax Online, among other are registered trademarks and/or service marks of Intuit, Inc. in the United States and other countries. Other parties' trademarks or service marks are the property of the respective owners.
When discussing "Free e-file", note that state e-file is an additional fee. E-file fees do not apply to New York state returns. Prices are subject to change without notice. E-file and get your refund faster
*If you pay an IRS or state penalty or interest because of a TurboTax calculations error, we'll pay you the penalty and interest.
*Maximum Refund Guarantee - or Your Money Back: If you get a larger refund or smaller tax due from another tax preparation method, we'll refund the applicable TurboTax federal and/or state purchase price paid. TurboTax Federal Free Edition customers are entitled to payment of $14.99 and a refund of your state purchase price paid. Claims must be submitted within sixty (60) days of your TurboTax filing date and no later than 6/15/14. E-file, Audit Defense, Professional Review, Refund Transfer and technical support fees are excluded. This guarantee cannot be combined with the TurboTax Satisfaction (Easy) Guarantee. *We're so confident your return will be done right, we guarantee it. Accurate calculations guaranteed. If you pay an IRS or state penalty or interest because of a TurboTax calculations error, we'll pay you the penalty and interest.
https://turbotax.intuit.com/corp/guarantees.jsp

Wheres My Amended Return

File 2007 Tax Return OnlineH&r Block OnlineIrs Efile 2012Filing 1040ez OnlineTurbotax Premier Federal & State Returns Plus Federal E File 2013Myfreetaxes Com BaltimorecashE Filing Income TaxFree State Tax Filing Only2011 Tax Forms 1040 Ez1040ez 2010 Tax FormAmending 2011 Tax ReturnWhen Can I File My 2011 TaxesFree Income Tax Filing1040x Turbo Tax2012 Tax FormsFile A Tax ReturnAmendment TaxIrs Ez Form OnlineCan I Amend My Tax Return1040ez OnlineCan I Efile 2012 Taxes10 40 Ez FormTax Filing 2010Where Can I Find State Tax FormsIrs Tax Forms For 2011Freetaxusa 2012Income Tax Return 2013Www Irs Gov Formspubs1040ez2012Military Tax DeductionsColorado Amended Tax Return 20111040 Ez Form 20121040ez HelpFile 2010 Taxes Online TurbotaxHow To File An Extension For 2011 Taxes FreeCan Ie File 2012 Taxes Now1040x Online2012 Amended Tax ReturnState Income Tax Chart1040xform

Wheres My Amended Return

Wheres my amended return Part Four -   Adjustments to Income The three chapters in this part discuss some of the adjustments to income that you can deduct in figuring your adjusted gross income. Wheres my amended return These chapters cover: Contributions you make to traditional individual retirement arrangements (IRAs) — chapter 17, Alimony you pay — chapter 18, and Student loan interest you pay — chapter 19. Wheres my amended return Other adjustments to income are discussed elsewhere. Wheres my amended return See Table V below. Wheres my amended return Table V. Wheres my amended return Other Adjustments to Income  Use this table to find information about other adjustments to income not covered in this part of the publication. Wheres my amended return IF you are looking for more information about the deduction for. Wheres my amended return . Wheres my amended return . Wheres my amended return THEN see. Wheres my amended return . Wheres my amended return . Wheres my amended return Certain business expenses of reservists, performing artists, and fee-basis officials Chapter 26. Wheres my amended return Contributions to a health savings account Publication 969, Health Savings Accounts and Other Tax-Favored Health Plans. Wheres my amended return Moving expenses Publication 521, Moving Expenses. Wheres my amended return Part of your self-employment tax Chapter 22. Wheres my amended return Self-employed health insurance Chapter 21. Wheres my amended return Payments to self-employed SEP, SIMPLE, and qualified plans Publication 560, Retirement Plans for Small Business (SEP, SIMPLE, and Qualified Plans). Wheres my amended return Penalty on the early withdrawal of savings Chapter 7. Wheres my amended return Contributions to an Archer MSA Publication 969. Wheres my amended return Reforestation amortization or expense Chapters 7 and 8 of Publication 535, Business Expenses. Wheres my amended return Contributions to Internal Revenue Code section 501(c)(18)(D) pension plans Publication 525, Taxable and Nontaxable Income. Wheres my amended return Expenses from the rental of personal property Chapter 12. Wheres my amended return Certain required repayments of supplemental unemployment benefits (sub-pay) Chapter 12. Wheres my amended return Foreign housing costs Chapter 4 of Publication 54, Tax Guide for U. Wheres my amended return S. Wheres my amended return Citizens and Resident Aliens Abroad. Wheres my amended return Jury duty pay given to your employer Chapter 12. Wheres my amended return Contributions by certain chaplains to Internal Revenue Code section 403(b) plans Publication 517, Social Security and Other Information for Members of the Clergy and Religious Workers. Wheres my amended return Attorney fees and certain costs for actions involving certain unlawful discrimination claims or awards to whistleblowers Publication 525. Wheres my amended return Domestic production activities deduction Form 8903, Domestic Production Activities Deduction. Wheres my amended return Table of Contents 17. Wheres my amended return   Individual Retirement Arrangements (IRAs)What's New Reminders Introduction Useful Items - You may want to see: Traditional IRAsWho Can Open a Traditional IRA? When and How Can a Traditional IRA Be Opened? How Much Can Be Contributed? When Can Contributions Be Made? How Much Can You Deduct? Nondeductible Contributions Inherited IRAs Can You Move Retirement Plan Assets? When Can You Withdraw or Use IRA Assets? When Must You Withdraw IRA Assets? (Required Minimum Distributions) Are Distributions Taxable? What Acts Result in Penalties or Additional Taxes? Roth IRAsWhat Is a Roth IRA? When Can a Roth IRA Be Opened? Can You Contribute to a Roth IRA? Can You Move Amounts Into a Roth IRA? Are Distributions Taxable? 18. Wheres my amended return   AlimonyIntroductionSpouse or former spouse. Wheres my amended return Divorce or separation instrument. Wheres my amended return Useful Items - You may want to see: General RulesMortgage payments. Wheres my amended return Taxes and insurance. Wheres my amended return Other payments to a third party. Wheres my amended return Instruments Executed After 1984Payments to a third party. Wheres my amended return Exception. Wheres my amended return Substitute payments. Wheres my amended return Specifically designated as child support. Wheres my amended return Contingency relating to your child. Wheres my amended return Clearly associated with a contingency. Wheres my amended return How To Deduct Alimony Paid How To Report Alimony Received Recapture Rule 19. Wheres my amended return   Education- Related AdjustmentsIntroduction Useful Items - You may want to see: Student Loan Interest DeductionStudent Loan Interest Defined Can You Claim the Deduction How Much Can You Deduct How Do You Figure the Deduction Tuition and Fees DeductionCan You Claim the Deduction What Expenses Qualify Who Is an Eligible Student Who Can Claim a Dependent's Expenses How Much Can You Deduct Educator Expenses Prev  Up  Next   Home   More Online Publications
Print - Click this link to Print this page

Suspicious e-Mails and Identity Theft

The Internal Revenue Service has issued several recent consumer warnings on the fraudulent use of the IRS name or logo by scamsters trying to gain access to consumers’ financial information in order to steal their identity and assets. When identity theft takes place over the Internet, it is called phishing.

Suspicious e-Mail/Phishing

Phishing (as in “fishing for information” and “hooking” victims) is a scam where Internet fraudsters send e-mail messages to trick unsuspecting victims into revealing personal and financial information that can be used to steal the victims’ identity. Current scams include phony e-mails which claim to come from the IRS and which lure the victims into the scam by telling them that they are due a tax refund.

Phishing and Other Schemes Using the IRS Name

The IRS periodically alerts taxpayers to, and maintains a list of, phishing schemes using the IRS name, logo or Web site clone. If you've received an e-mail, phone call or fax claiming to come from the IRS that seemed a little suspicious, you just may find it on this list.

News Releases

  • IR-2013-84, IRS Warns of Pervasive Telephone Scam
  • IR-2013-17, IRS Intensifies National Crackdown on Identity Theft; Part of Wider Effort to Protect Taxpayers, Prevent Refund Fraud
  • IR-2013-3, National Taxpayer Advocate Delivers Annual Report to Congress; Focuses on Tax Reform, IRS Funding and Identity Theft
  • IR-2012-29, Tax Scam Warning: Beware of Phony Refund Scheme Abusing Popular College Tax Credit; Senior Citizens, Working Families and Church Members Are Targets
  • IR-2012-23, IRS Releases the Dirty Dozen Tax Scams for 2012
  • IR-2011-73, IRS Urges Taxpayers to Avoid Becoming Victims of Tax Scams
  • IR-2009-71, IRS Alerts Public to New Identity Theft Scams
  • IR-2008-11, IRS Warns of New E-Mail and Telephone Scams Using the IRS Name; Advance Payment Scams Starting
  • IR-2007-183, IRS Warns of E-Mail Scam Soliciting Donations to California Wildfire Victims
  • IR-2007-148, IRS Warns of New E-mail Scam Offering Cash for Participation in “Member Satisfaction Survey”
  • IR-2007-109, IRS Warns Taxpayers of New E-mail Scams
  • IR-2007-75, IRS Warns of Phony e-Mails Claiming to Come from the IRS
  • IR-2006-116, Electronic Federal Tax Payment System Cited in New E-mail Scam
  • IR-2006-104, IRS Renews E-mail Alert Following New Scams
  • IR-2006-49, IRS Establishes e-Mail Box for Taxpayers to Report Phony e-Mails

Fact Sheets

  • FS-2014-3, IRS Criminal Investigation Combats Identity Theft Refund Fraud
  • FS-2014-2, Tips for Taxpayers, Victims about Identity Theft and Tax Returns
  • FS-2014-1, IRS Combats Identity Theft and Refund Fraud on Many Fronts
  • FS-2013-4, IRS Criminal Investigation Combats Identity Theft Refund Fraud
  • FS-2013-3, Tips for Taxpayers, Victims about Identity Theft and Tax Returns
  • FS-2013-2, IRS Combats Identity Theft and Refund Fraud on Many Fronts 
  • FS-2012-7, Protect Yourself from Identity Theft
  • FS-2010-9, Online Scams that Impersonate the IRS
  • FS-2009-4, The Official Internal Revenue Service Web Site Is IRS.gov
  • FS-2008-9, Identity Theft E-mail Scams a Growing Problem

Videos

Articles

You Can Help Shut Down Phishing Schemes

The good news is that you can help shut down these schemes and prevent others from being victimized. If you receive a suspicious e-mail that claims to come from the IRS, you can relay that e-mail to a new IRS mailbox, phishing@irs.gov. Follow instructions in the link below for sending the bogus e-mail to ensure that it retains critical elements found in the original e-mail. The IRS can use the information, URLs and links in the suspicious e-mails you send to trace the hosting Web site and alert authorities to help shut down the fraudulent sites. Unfortunately, due to the expected volume, the IRS will not be able to acknowledge receipt or respond to you.

Identity Theft

Identity theft can be committed through e-mail (phishing) or other means, such as regular mail, fax or telephone, or even by going through someone's trash.

Identity theft occurs when someone uses your personal information such as your name, Social Security number or other identifying information without your permission to commit fraud or other crimes. Typically, identity thieves use someone’s personal data to empty the victim’s financial accounts, run up charges on the victim’s existing credit cards, apply for new loans, credit cards, services or benefits in the victim’s name, file fraudulent tax returns or even commit crimes. People whose identities have been stolen can spend months or years — and their hard-earned money — cleaning up the mess thieves have made of their good name and credit record. In the meantime, victims may lose job opportunities, be refused loans, education, housing or cars, or even get arrested for crimes they didn't commit.

Employment Verification Contacts

You may receive a call from an IRS employee requesting verification of income and/or withholding information that has been reported to the IRS through other means. This contact may be made through a telephone call or a faxed request.  

If you receive a telephone call or a fax from someone claiming to be with the IRS and you are not comfortable providing the information, you should contact our customer service line at 1-800-829-4933 to verify the validity of the call or fax. You may then contact the IRS employee who requested the information and provide the required information.

Recent Schemes

The IRS periodically alerts taxpayers to schemes that fraudulently use the IRS name, logo or Web site clone to to gain access to consumers’ financial information in order to steal their identity and assets. The scams may take place through e-mail, fax or phone. The IRS also maintains a list of phishing and other schemes.

For more information on various schemes, see the following:

To Report Fraud

For other than phishing schemes, you may report the fraudulent misuse of the IRS name, logo, forms or other IRS property by calling the TIGTA toll-free hotline at 1-800-366-4484 or visiting the TIGTA Web site.

Other Federal Resources

For more information on understanding and preventing identity theft and suspicious e-mails (phishing), or dealing with their aftermath, check out the following federal resources:

Page Last Reviewed or Updated: 14-Mar-2014

The Wheres My Amended Return

Wheres my amended return 2. Wheres my amended return   Entertainment Table of Contents Directly-Related Test Associated TestMeetings at conventions. Wheres my amended return 50% LimitExceptions to the 50% Limit What Entertainment Expenses Are Deductible?A meal as a form of entertainment. Wheres my amended return Deduction may depend on your type of business. Wheres my amended return Exception for events that benefit charitable organizations. Wheres my amended return Food and beverages in skybox seats. Wheres my amended return What Entertainment Expenses Are Not Deductible?Out-of-pocket expenses. Wheres my amended return You may be able to deduct business-related entertainment expenses you have for entertaining a client, customer, or employee. Wheres my amended return The rules and definitions are summarized in Table 2-1 . Wheres my amended return You can deduct entertainment expenses only if they are both ordinary and necessary and meet one of the following tests. Wheres my amended return Directly-related test. Wheres my amended return Associated test. Wheres my amended return Both of these tests are explained later. Wheres my amended return An ordinary expense is one that is common and accepted in your trade or business. Wheres my amended return A necessary expense is one that is helpful and appropriate for your business. Wheres my amended return An expense does not have to be required to be considered necessary. Wheres my amended return The amount you can deduct for entertainment expenses may be limited. Wheres my amended return Generally, you can deduct only 50% of your unreimbursed entertainment expenses. Wheres my amended return This limit is discussed later under 50% Limit. Wheres my amended return Directly-Related Test To meet the directly-related test for entertainment expenses (including entertainment-related meals), you must show that: The main purpose of the combined business and entertainment was the active conduct of business, You did engage in business with the person during the entertainment period, and You had more than a general expectation of getting income or some other specific business benefit at some future time. Wheres my amended return Business is generally not considered to be the main purpose when business and entertainment are combined on hunting or fishing trips, or on yachts or other pleasure boats. Wheres my amended return Even if you show that business was the main purpose, you generally cannot deduct the expenses for the use of an entertainment facility. Wheres my amended return See Entertainment facilities under What Entertainment Expenses Are Not Deductible? later in this chapter. Wheres my amended return You must consider all the facts, including the nature of the business transacted and the reasons for conducting business during the entertainment. Wheres my amended return It is not necessary to devote more time to business than to entertainment. Wheres my amended return However, if the business discussion is only incidental to the entertainment, the entertainment expenses do not meet the directly-related test. Wheres my amended return Table 2-1. Wheres my amended return When Are Entertainment Expenses Deductible? General rule You can deduct ordinary and necessary expenses to entertain a client, customer, or employee if the expenses meet the directly-related test or the associated test. Wheres my amended return Definitions Entertainment includes any activity generally considered to provide entertainment, amusement, or recreation, and includes meals provided to a customer or client. Wheres my amended return An ordinary expense is one that is common and accepted in your trade or business. Wheres my amended return A necessary expense is one that is helpful and appropriate. Wheres my amended return Tests to be met Directly-related test Entertainment took place in a clear business setting, or Main purpose of entertainment was the active conduct of business, and You did engage in business with the person during the entertainment period, and You had more than a general expectation of getting income or some other specific business benefit. Wheres my amended return   Associated test Entertainment is associated with your trade or business, and Entertainment is directly before or after a substantial business discussion. Wheres my amended return Other rules You cannot deduct the cost of your meal as an entertainment expense if you are claiming the meal as a travel expense. Wheres my amended return You cannot deduct expenses that are lavish or extravagant under the circumstances. Wheres my amended return You generally can deduct only 50% of your unreimbursed entertainment expenses (see 50% Limit ). Wheres my amended return You do not have to show that business income or other business benefit actually resulted from each entertainment expense. Wheres my amended return Clear business setting. Wheres my amended return   If the entertainment takes place in a clear business setting and is for your business or work, the expenses are considered directly related to your business or work. Wheres my amended return The following situations are examples of entertainment in a clear business setting. Wheres my amended return Entertainment in a hospitality room at a convention where business goodwill is created through the display or discussion of business products. Wheres my amended return Entertainment that is mainly a price rebate on the sale of your products (such as a restaurant owner providing an occasional free meal to a loyal customer). Wheres my amended return Entertainment of a clear business nature occurring under circumstances where there is no meaningful personal or social relationship between you and the persons entertained. Wheres my amended return An example is entertainment of business and civic leaders at the opening of a new hotel or play when the purpose is to get business publicity rather than to create or maintain the goodwill of the persons entertained. Wheres my amended return Expenses not considered directly related. Wheres my amended return   Entertainment expenses generally are not considered directly related if you are not there or in situations where there are substantial distractions that generally prevent you from actively conducting business. Wheres my amended return The following are examples of situations where there are substantial distractions. Wheres my amended return A meeting or discussion at a nightclub, theater, or sporting event. Wheres my amended return A meeting or discussion during what is essentially a social gathering, such as a cocktail party. Wheres my amended return A meeting with a group that includes persons who are not business associates at places such as cocktail lounges, country clubs, golf clubs, athletic clubs, or vacation resorts. Wheres my amended return Associated Test Even if your expenses do not meet the directly-related test, they may meet the associated test. Wheres my amended return To meet the associated test for entertainment expenses (including entertainment-related meals), you must show that the entertainment is: Associated with the active conduct of your trade or business, and Directly before or after a substantial business discussion (defined later). Wheres my amended return Associated with trade or business. Wheres my amended return   Generally, an expense is associated with the active conduct of your trade or business if you can show that you had a clear business purpose for having the expense. Wheres my amended return The purpose may be to get new business or to encourage the continuation of an existing business relationship. Wheres my amended return Substantial business discussion. Wheres my amended return   Whether a business discussion is substantial depends on the facts of each case. Wheres my amended return A business discussion will not be considered substantial unless you can show that you actively engaged in the discussion, meeting, negotiation, or other business transaction to get income or some other specific business benefit. Wheres my amended return   The meeting does not have to be for any specified length of time, but you must show that the business discussion was substantial in relation to the meal or entertainment. Wheres my amended return It is not necessary that you devote more time to business than to entertainment. Wheres my amended return You do not have to discuss business during the meal or entertainment. Wheres my amended return Meetings at conventions. Wheres my amended return   You are considered to have a substantial business discussion if you attend meetings at a convention or similar event, or at a trade or business meeting sponsored and conducted by a business or professional organization. Wheres my amended return However, your reason for attending the convention or meeting must be to further your trade or business. Wheres my amended return The organization that sponsors the convention or meeting must schedule a program of business activities that is the main activity of the convention or meeting. Wheres my amended return Directly before or after business discussion. Wheres my amended return   If the entertainment is held on the same day as the business discussion, it is considered to be held directly before or after the business discussion. Wheres my amended return   If the entertainment and the business discussion are not held on the same day, you must consider the facts of each case to see if the associated test is met. Wheres my amended return Among the facts to consider are the place, date, and duration of the business discussion. Wheres my amended return If you or your business associates are from out of town, you must also consider the dates of arrival and departure, and the reasons the entertainment and the discussion did not take place on the same day. Wheres my amended return Example. Wheres my amended return A group of business associates comes from out of town to your place of business to hold a substantial business discussion. Wheres my amended return If you entertain those business guests on the evening before the business discussion, or on the evening of the day following the business discussion, the entertainment generally is considered to be held directly before or after the discussion. Wheres my amended return The expense meets the associated test. Wheres my amended return 50% Limit In general, you can deduct only 50% of your business-related meal and entertainment expenses. Wheres my amended return (If you are subject to the Department of Transportation's “hours of service” limits, you can deduct 80% of your business-related meal and entertainment expenses. Wheres my amended return See Individuals subject to “hours of service” limits , later. Wheres my amended return ) The 50% limit applies to employees or their employers, and to self-employed persons (including independent contractors) or their clients, depending on whether the expenses are reimbursed. Wheres my amended return Figure A summarizes the general rules explained in this section. Wheres my amended return The 50% limit applies to business meals or entertainment expenses you have while: Traveling away from home (whether eating alone or with others) on business, Entertaining customers at your place of business, a restaurant, or other location, or Attending a business convention or reception, business meeting, or business luncheon at a club. Wheres my amended return Included expenses. Wheres my amended return   Expenses subject to the 50% limit include: Taxes and tips relating to a business meal or entertainment activity, Cover charges for admission to a nightclub, Rent paid for a room in which you hold a dinner or cocktail party, and Amounts paid for parking at a sports arena. Wheres my amended return However, the cost of transportation to and from a business meal or a business-related entertainment activity is not subject to the 50% limit. Wheres my amended return Figure A. Wheres my amended return Does the 50% Limit Apply to Your Expenses? There are exceptions to these rules. Wheres my amended return See Exceptions to the 50% Limit . Wheres my amended return Please click here for the text description of the image. Wheres my amended return Figure A. Wheres my amended return Does the 50% limit apply to Your Expenses?TAs for Figure A are: Notice 87-23; Form 2106 instructions Application of 50% limit. Wheres my amended return   The 50% limit on meal and entertainment expenses applies if the expense is otherwise deductible and is not covered by one of the exceptions discussed later. Wheres my amended return   The 50% limit also applies to certain meal and entertainment expenses that are not business related. Wheres my amended return It applies to meal and entertainment expenses you have for the production of income, including rental or royalty income. Wheres my amended return It also applies to the cost of meals included in deductible educational expenses. Wheres my amended return When to apply the 50% limit. Wheres my amended return   You apply the 50% limit after determining the amount that would otherwise qualify for a deduction. Wheres my amended return You first have to determine the amount of meal and entertainment expenses that would be deductible under the other rules discussed in this publication. Wheres my amended return Example 1. Wheres my amended return You spend $200 for a business-related meal. Wheres my amended return If $110 of that amount is not allowable because it is lavish and extravagant, the remaining $90 is subject to the 50% limit. Wheres my amended return Your deduction cannot be more than $45 (50% × $90). Wheres my amended return Example 2. Wheres my amended return You purchase two tickets to a concert and give them to a client. Wheres my amended return You purchased the tickets through a ticket agent. Wheres my amended return You paid $200 for the two tickets, which had a face value of $80 each ($160 total). Wheres my amended return Your deduction cannot be more than $80 (50% × $160). Wheres my amended return Exceptions to the 50% Limit Generally, business-related meal and entertainment expenses are subject to the 50% limit. Wheres my amended return Figure A can help you determine if the 50% limit applies to you. Wheres my amended return Expenses not subject to 50% limit. Wheres my amended return   Your meal or entertainment expense is not subject to the 50% limit if the expense meets one of the following exceptions. Wheres my amended return 1 - Employee's reimbursed expenses. Wheres my amended return   If you are an employee, you are not subject to the 50% limit on expenses for which your employer reimburses you under an accountable plan. Wheres my amended return Accountable plans are discussed in chapter 6. Wheres my amended return 2 - Self-employed. Wheres my amended return   If you are self-employed, your deductible meal and entertainment expenses are not subject to the 50% limit if all of the following requirements are met. Wheres my amended return You have these expenses as an independent contractor. Wheres my amended return Your customer or client reimburses you or gives you an allowance for these expenses in connection with services you perform. Wheres my amended return You provide adequate records of these expenses to your customer or client. Wheres my amended return (See chapter 5 . Wheres my amended return )   In this case, your client or customer is subject to the 50% limit on the expenses. Wheres my amended return Example. Wheres my amended return You are a self-employed attorney who adequately accounts for meal and entertainment expenses to a client who reimburses you for these expenses. Wheres my amended return You are not subject to the directly-related or associated test, nor are you subject to the 50% limit. Wheres my amended return If the client can deduct the expenses, the client is subject to the 50% limit. Wheres my amended return If you (as an independent contractor) have expenses for meals and entertainment related to providing services for a client but do not adequately account for and seek reimbursement from the client for those expenses, you are subject to the directly-related or associated test and to the 50% limit. Wheres my amended return 3 - Advertising expenses. Wheres my amended return   You are not subject to the 50% limit if you provide meals, entertainment, or recreational facilities to the general public as a means of advertising or promoting goodwill in the community. Wheres my amended return For example, neither the expense of sponsoring a television or radio show nor the expense of distributing free food and beverages to the general public is subject to the 50% limit. Wheres my amended return 4 - Sale of meals or entertainment. Wheres my amended return   You are not subject to the 50% limit if you actually sell meals, entertainment, goods and services, or use of facilities to the public. Wheres my amended return For example, if you run a nightclub, your expense for the entertainment you furnish to your customers, such as a floor show, is not subject to the 50% limit. Wheres my amended return 5 - Charitable sports event. Wheres my amended return   You are not subject to the 50% limit if you pay for a package deal that includes a ticket to a qualified charitable sports event. Wheres my amended return For the conditions the sports event must meet, see Exception for events that benefit charitable organizations under What Entertainment Expenses Are Deductible?, later. Wheres my amended return Individuals subject to “hours of service” limits. Wheres my amended return   You can deduct a higher percentage of your meal expenses while traveling away from your tax home if the meals take place during or incident to any period subject to the Department of Transportation's “hours of service” limits. Wheres my amended return The percentage is 80%. Wheres my amended return   Individuals subject to the Department of Transportation's “hours of service” limits include the following persons. Wheres my amended return Certain air transportation workers (such as pilots, crew, dispatchers, mechanics, and control tower operators) who are under Federal Aviation Administration regulations. Wheres my amended return Interstate truck operators and bus drivers who are under Department of Transportation regulations. Wheres my amended return Certain railroad employees (such as engineers, conductors, train crews, dispatchers, and control operations personnel) who are under Federal Railroad Administration regulations. Wheres my amended return Certain merchant mariners who are under Coast Guard regulations. Wheres my amended return What Entertainment Expenses Are Deductible? This section explains different types of entertainment expenses you may be able to deduct. Wheres my amended return Entertainment. Wheres my amended return   Entertainment includes any activity generally considered to provide entertainment, amusement, or recreation. Wheres my amended return Examples include entertaining guests at nightclubs; at social, athletic, and sporting clubs; at theaters; at sporting events; on yachts; or on hunting, fishing, vacation, and similar trips. Wheres my amended return   Entertainment also may include meeting personal, living, or family needs of individuals, such as providing meals, a hotel suite, or a car to customers or their families. Wheres my amended return A meal as a form of entertainment. Wheres my amended return   Entertainment includes the cost of a meal you provide to a customer or client, whether the meal is a part of other entertainment or by itself. Wheres my amended return A meal expense includes the cost of food, beverages, taxes, and tips for the meal. Wheres my amended return To deduct an entertainment-related meal, you or your employee must be present when the food or beverages are provided. Wheres my amended return    You cannot claim the cost of your meal both as an entertainment expense and as a travel expense. Wheres my amended return    Meals sold in the normal course of your business are not considered entertainment. Wheres my amended return Deduction may depend on your type of business. Wheres my amended return   Your kind of business may determine if a particular activity is considered entertainment. Wheres my amended return For example, if you are a dress designer and have a fashion show to introduce your new designs to store buyers, the show generally is not considered entertainment. Wheres my amended return This is because fashion shows are typical in your business. Wheres my amended return But, if you are an appliance distributor and hold a fashion show for the spouses of your retailers, the show generally is considered entertainment. Wheres my amended return Separating costs. Wheres my amended return   If you have one expense that includes the costs of entertainment and other services (such as lodging or transportation), you must allocate that expense between the cost of entertainment and the cost of other services. Wheres my amended return You must have a reasonable basis for making this allocation. Wheres my amended return For example, you must allocate your expenses if a hotel includes entertainment in its lounge on the same bill with your room charge. Wheres my amended return Taking turns paying for meals or entertainment. Wheres my amended return   If a group of business acquaintances takes turns picking up each others' meal or entertainment checks primarily for personal reasons, without regard to whether any business purposes are served, no member of the group can deduct any part of the expense. Wheres my amended return Lavish or extravagant expenses. Wheres my amended return   You cannot deduct expenses for entertainment that are lavish or extravagant. Wheres my amended return An expense is not considered lavish or extravagant if it is reasonable considering the facts and circumstances. Wheres my amended return Expenses will not be disallowed just because they are more than a fixed dollar amount or take place at deluxe restaurants, hotels, nightclubs, or resorts. Wheres my amended return Allocating between business and nonbusiness. Wheres my amended return   If you entertain business and nonbusiness individuals at the same event, you must divide your entertainment expenses between business and nonbusiness. Wheres my amended return You can deduct only the business part. Wheres my amended return If you cannot establish the part of the expense for each person participating, allocate the expense to each participant on a pro rata basis. Wheres my amended return Example. Wheres my amended return You entertain a group of individuals that includes yourself, three business prospects, and seven social guests. Wheres my amended return Only 4/11 of the expense qualifies as a business entertainment expense. Wheres my amended return You cannot deduct the expenses for the seven social guests because those costs are nonbusiness expenses. Wheres my amended return Trade association meetings. Wheres my amended return   You can deduct entertainment expenses that are directly related to and necessary for attending business meetings or conventions of certain exempt organizations if the expenses of your attendance are related to your active trade or business. Wheres my amended return These organizations include business leagues, chambers of commerce, real estate boards, trade associations, and professional associations. Wheres my amended return Entertainment tickets. Wheres my amended return   Generally, you cannot deduct more than the face value of an entertainment ticket, even if you paid a higher price. Wheres my amended return For example, you cannot deduct service fees you pay to ticket agencies or brokers or any amount over the face value of the tickets you pay to scalpers. Wheres my amended return Exception for events that benefit charitable organizations. Wheres my amended return   Different rules apply when the cost of a ticket to a sports event benefits a charitable organization. Wheres my amended return You can take into account the full cost you pay for the ticket, even if it is more than the face value, if all of the following conditions apply. Wheres my amended return The event's main purpose is to benefit a qualified charitable organization. Wheres my amended return The entire net proceeds go to the charity. Wheres my amended return The event uses volunteers to perform substantially all the event's work. Wheres my amended return    The 50% limit on entertainment does not apply to any expense for a package deal that includes a ticket to such a charitable sports event. Wheres my amended return Example 1. Wheres my amended return You purchase tickets to a golf tournament organized by the local volunteer fire company. Wheres my amended return All net proceeds will be used to buy new fire equipment. Wheres my amended return The volunteers will run the tournament. Wheres my amended return You can deduct the entire cost of the tickets as a business expense if they otherwise qualify as an entertainment expense. Wheres my amended return Example 2. Wheres my amended return You purchase tickets to a college football game through a ticket broker. Wheres my amended return After having a business discussion, you take a client to the game. Wheres my amended return Net proceeds from the game go to colleges that qualify as charitable organizations. Wheres my amended return However, since the colleges also pay individuals to perform services, such as coaching and recruiting, you can only use the face value of the tickets in determining your business deduction. Wheres my amended return Skyboxes and other private luxury boxes. Wheres my amended return   If you rent a skybox or other private luxury box for more than one event at the same sports arena, you generally cannot deduct more than the price of a nonluxury box seat ticket. Wheres my amended return   To determine whether a skybox has been rented for more than one event, count each game or other performance as one event. Wheres my amended return For example, renting a skybox for a series of playoff games is considered renting it for more than one event. Wheres my amended return All skyboxes you rent in the same arena, along with any rentals by related parties, are considered in making this determination. Wheres my amended return   Related parties include: Family members (spouses, ancestors, and lineal descendants), Parties who have made a reciprocal arrangement involving the sharing of skyboxes, Related corporations, A partnership and its principal partners, and A corporation and a partnership with common ownership. Wheres my amended return Example. Wheres my amended return You pay $3,000 to rent a 10-seat skybox at Team Stadium for three baseball games. Wheres my amended return The cost of regular nonluxury box seats at each event is $30 a seat. Wheres my amended return You can deduct (subject to the 50% limit) $900 ((10 seats × $30 each) × 3 events). Wheres my amended return Food and beverages in skybox seats. Wheres my amended return   If expenses for food and beverages are separately stated, you can deduct these expenses in addition to the amounts allowable for the skybox, subject to the requirements and limits that apply. Wheres my amended return The amounts separately stated for food and beverages must be reasonable. Wheres my amended return You cannot inflate the charges for food and beverages to avoid the limited deduction for skybox rentals. Wheres my amended return What Entertainment Expenses Are Not Deductible? This section explains different types of entertainment expenses you generally may not be able to deduct. Wheres my amended return Club dues and membership fees. Wheres my amended return   You cannot deduct dues (including initiation fees) for membership in any club organized for: Business, Pleasure, Recreation, or Other social purpose. Wheres my amended return This rule applies to any membership organization if one of its principal purposes is either: To conduct entertainment activities for members or their guests, or To provide members or their guests with access to entertainment facilities, discussed later. Wheres my amended return   The purposes and activities of a club, not its name, will determine whether or not you can deduct the dues. Wheres my amended return You cannot deduct dues paid to: Country clubs, Golf and athletic clubs, Airline clubs, Hotel clubs, and Clubs operated to provide meals under circumstances generally considered to be conducive to business discussions. Wheres my amended return Entertainment facilities. Wheres my amended return   Generally, you cannot deduct any expense for the use of an entertainment facility. Wheres my amended return This includes expenses for depreciation and operating costs such as rent, utilities, maintenance, and protection. Wheres my amended return   An entertainment facility is any property you own, rent, or use for entertainment. Wheres my amended return Examples include a yacht, hunting lodge, fishing camp, swimming pool, tennis court, bowling alley, car, airplane, apartment, hotel suite, or home in a vacation resort. Wheres my amended return Out-of-pocket expenses. Wheres my amended return   You can deduct out-of-pocket expenses, such as for food and beverages, catering, gas, and fishing bait, that you provided during entertainment at a facility. Wheres my amended return These are not expenses for the use of an entertainment facility. Wheres my amended return However, these expenses are subject to the directly-related and associated tests and to the 50% limit , all discussed earlier. Wheres my amended return Expenses for spouses. Wheres my amended return   You generally cannot deduct the cost of entertainment for your spouse or for the spouse of a customer. Wheres my amended return However, you can deduct these costs if you can show you had a clear business purpose, rather than a personal or social purpose, for providing the entertainment. Wheres my amended return Example. Wheres my amended return You entertain a customer. Wheres my amended return The cost is an ordinary and necessary business expense and is allowed under the entertainment rules. Wheres my amended return The customer's spouse joins you because it is impractical to entertain the customer without the spouse. Wheres my amended return You can deduct the cost of entertaining the customer's spouse. Wheres my amended return If your spouse joins the party because the customer's spouse is present, the cost of the entertainment for your spouse is also deductible. Wheres my amended return Gift or entertainment. Wheres my amended return   Any item that might be considered either a gift or entertainment generally will be considered entertainment. Wheres my amended return However, if you give a customer packaged food or beverages that you intend the customer to use at a later date, treat it as a gift. Wheres my amended return   If you give a customer tickets to a theater performance or sporting event and you do not go with the customer to the performance or event, you have a choice. Wheres my amended return You can treat the tickets as either a gift or entertainment, whichever is to your advantage. Wheres my amended return   You can change your treatment of the tickets at a later date by filing an amended return. Wheres my amended return Generally, an amended return must be filed within 3 years from the date the original return was filed or within 2 years from the time the tax was paid, whichever is later. Wheres my amended return   If you go with the customer to the event, you must treat the cost of the tickets as an entertainment expense. Wheres my amended return You cannot choose, in this case, to treat the tickets as a gift. Wheres my amended return Prev  Up  Next   Home   More Online Publications