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Wwwhrblock com 8. Wwwhrblock com   Dividends and Other Distributions Table of Contents Reminder Introduction Useful Items - You may want to see: General InformationDividends not reported on Form 1099-DIV. Wwwhrblock com Reporting tax withheld. Wwwhrblock com Nominees. Wwwhrblock com Ordinary DividendsQualified Dividends Dividends Used to Buy More Stock Money Market Funds Capital Gain DistributionsBasis adjustment. Wwwhrblock com Nondividend DistributionsLiquidating Distributions Distributions of Stock and Stock Rights Other DistributionsInformation reporting requirement. Wwwhrblock com Alternative minimum tax treatment. Wwwhrblock com How To Report Dividend IncomeInvestment interest deducted. Wwwhrblock com Reminder Foreign-source income. Wwwhrblock com  If you are a U. Wwwhrblock com S. Wwwhrblock com citizen with dividend income from sources outside the United States (foreign-source income), you must report that income on your tax return unless it is exempt by U. Wwwhrblock com S. Wwwhrblock com law. Wwwhrblock com This is true whether you reside inside or outside the United States and whether or not you receive a Form 1099 from the foreign payer. Wwwhrblock com Introduction This chapter discusses the tax treatment of: Ordinary dividends, Capital gain distributions, Nondividend distributions, and Other distributions you may receive from a corporation or a mutual fund. Wwwhrblock com This chapter also explains how to report dividend income on your tax return. Wwwhrblock com Dividends are distributions of money, stock, or other property paid to you by a corporation or by a mutual fund. Wwwhrblock com You also may receive dividends through a partnership, an estate, a trust, or an association that is taxed as a corporation. Wwwhrblock com However, some amounts you receive that are called dividends are actually interest income. Wwwhrblock com (See Dividends that are actually interest under Taxable Interest in chapter 7. Wwwhrblock com ) Most distributions are paid in cash (or check). Wwwhrblock com However, distributions can consist of more stock, stock rights, other property, or services. Wwwhrblock com Useful Items - You may want to see: Publication 514 Foreign Tax Credit for Individuals 550 Investment Income and Expenses Form (and Instructions) Schedule B (Form 1040A or 1040) Interest and Ordinary Dividends General Information This section discusses general rules for dividend income. Wwwhrblock com Tax on unearned income of certain children. Wwwhrblock com   Part of a child's 2013 unearned income may be taxed at the parent's tax rate. Wwwhrblock com If it is, Form 8615, Tax for Certain Children Who Have Unearned Income, must be completed and attached to the child's tax return. Wwwhrblock com If not, Form 8615 is not required and the child's income is taxed at his or her own tax rate. Wwwhrblock com    Some parents can choose to include the child's interest and dividends on the parent's return if certain requirements are met. Wwwhrblock com Use Form 8814, Parents' Election To Report Child's Interest and Dividends, for this purpose. Wwwhrblock com   For more information about the tax on unearned income of children and the parents' election, see chapter 31. Wwwhrblock com Beneficiary of an estate or trust. Wwwhrblock com    Dividends and other distributions you receive as a beneficiary of an estate or trust are generally taxable income. Wwwhrblock com You should receive a Schedule K-1 (Form 1041), Beneficiary's Share of Income, Deductions, Credits, etc. Wwwhrblock com , from the fiduciary. Wwwhrblock com Your copy of Schedule K-1 (Form 1041) and its instructions will tell you where to report the income on your Form 1040. Wwwhrblock com Social security number (SSN) or individual taxpayer identification number (ITIN). Wwwhrblock com    You must give your SSN or ITIN to any person required by federal tax law to make a return, statement, or other document that relates to you. Wwwhrblock com This includes payers of dividends. Wwwhrblock com If you do not give your SSN or ITIN to the payer of dividends, you may have to pay a penalty. Wwwhrblock com For more information on SSNs and ITINs, see Social Security Number (SSN) in chapter 1. Wwwhrblock com Backup withholding. Wwwhrblock com   Your dividend income is generally not subject to regular withholding. Wwwhrblock com However, it may be subject to backup withholding to ensure that income tax is collected on the income. Wwwhrblock com Under backup withholding, the payer of dividends must withhold, as income tax, on the amount you are paid, applying the appropriate withholding rate. Wwwhrblock com   Backup withholding may also be required if the IRS has determined that you underreported your interest or dividend income. Wwwhrblock com For more information, see Backup Withholding in chapter 4. Wwwhrblock com Stock certificate in two or more names. Wwwhrblock com   If two or more persons hold stock as joint tenants, tenants by the entirety, or tenants in common, each person's share of any dividends from the stock is determined by local law. Wwwhrblock com Form 1099-DIV. Wwwhrblock com   Most corporations and mutual funds use Form 1099-DIV, Dividends and Distributions, to show you the distributions you received from them during the year. Wwwhrblock com Keep this form with your records. Wwwhrblock com You do not have to attach it to your tax return. Wwwhrblock com Dividends not reported on Form 1099-DIV. Wwwhrblock com   Even if you do not receive Form 1099-DIV, you must still report all your taxable dividend income. Wwwhrblock com For example, you may receive distributive shares of dividends from partnerships or S corporations. Wwwhrblock com These dividends are reported to you on Schedule K-1 (Form 1065), Partner's Share of Income, Deductions, Credits, etc. Wwwhrblock com , and Schedule K-1 (Form 1120S), Shareholder's Share of Income, Deductions, Credits, etc. Wwwhrblock com Reporting tax withheld. Wwwhrblock com   If tax is withheld from your dividend income, the payer must give you a Form 1099-DIV that indicates the amount withheld. Wwwhrblock com Nominees. Wwwhrblock com   If someone receives distributions as a nominee for you, that person should give you a Form 1099-DIV, which will show distributions received on your behalf. Wwwhrblock com Form 1099-MISC. Wwwhrblock com   Certain substitute payments in lieu of dividends or tax-exempt interest received by a broker on your behalf must be reported to you on Form 1099-MISC, Miscellaneous Income, or a similar statement. Wwwhrblock com See Reporting Substitute Payments under Short Sales in chapter 4 of Publication 550 for more information about reporting these payments. Wwwhrblock com Incorrect amount shown on a Form 1099. Wwwhrblock com   If you receive a Form 1099 that shows an incorrect amount (or other incorrect information), you should ask the issuer for a corrected form. Wwwhrblock com The new Form 1099 you receive will be marked “Corrected. Wwwhrblock com ” Dividends on stock sold. Wwwhrblock com   If stock is sold, exchanged, or otherwise disposed of after a dividend is declared but before it is paid, the owner of record (usually the payee shown on the dividend check) must include the dividend in income. Wwwhrblock com Dividends received in January. Wwwhrblock com   If a mutual fund (or other regulated investment company) or real estate investment trust (REIT) declares a dividend (including any exempt-interest dividend or capital gain distribution) in October, November, or December, payable to shareholders of record on a date in one of those months but actually pays the dividend during January of the next calendar year, you are considered to have received the dividend on December 31. Wwwhrblock com You report the dividend in the year it was declared. Wwwhrblock com Ordinary Dividends Ordinary (taxable) dividends are the most common type of distribution from a corporation or a mutual fund. Wwwhrblock com They are paid out of earnings and profits and are ordinary income to you. Wwwhrblock com This means they are not capital gains. Wwwhrblock com You can assume that any dividend you receive on common or preferred stock is an ordinary dividend unless the paying corporation or mutual fund tells you otherwise. Wwwhrblock com Ordinary dividends will be shown in box 1a of the Form 1099-DIV you receive. Wwwhrblock com Qualified Dividends Qualified dividends are the ordinary dividends subject to the same 0%, 15%, or 20% maximum tax rate that applies to net capital gain. Wwwhrblock com They should be shown in box 1b of the Form 1099-DIV you receive. Wwwhrblock com The maximum rate of tax on qualified dividends is: 0% on any amount that otherwise would be taxed at a 10% or 15% rate. Wwwhrblock com 15% on any amount that otherwise would be taxed at rates greater than 15% but less than 39. Wwwhrblock com 6%. Wwwhrblock com 20% on any amount that otherwise would be taxed at a 39. Wwwhrblock com 6% rate. Wwwhrblock com To qualify for the maximum rate, all of the following requirements must be met. Wwwhrblock com The dividends must have been paid by a U. Wwwhrblock com S. Wwwhrblock com corporation or a qualified foreign corporation. Wwwhrblock com (See Qualified foreign corporation , later. Wwwhrblock com ) The dividends are not of the type listed later under Dividends that are not qualified dividends . Wwwhrblock com You meet the holding period (discussed next). Wwwhrblock com Holding period. Wwwhrblock com   You must have held the stock for more than 60 days during the 121-day period that begins 60 days before the ex-dividend date. Wwwhrblock com The ex-dividend date is the first date following the declaration of a dividend on which the buyer of a stock is not entitled to receive the next dividend payment. Wwwhrblock com Instead, the seller will get the dividend. Wwwhrblock com   When counting the number of days you held the stock, include the day you disposed of the stock, but not the day you acquired it. Wwwhrblock com See the examples later. Wwwhrblock com Exception for preferred stock. Wwwhrblock com   In the case of preferred stock, you must have held the stock more than 90 days during the 181-day period that begins 90 days before the ex-dividend date if the dividends are due to periods totaling more than 366 days. Wwwhrblock com If the preferred dividends are due to periods totaling less than 367 days, the holding period in the previous paragraph applies. Wwwhrblock com Example 1. Wwwhrblock com You bought 5,000 shares of XYZ Corp. Wwwhrblock com common stock on July 9, 2013. Wwwhrblock com XYZ Corp. Wwwhrblock com paid a cash dividend of 10 cents per share. Wwwhrblock com The ex-dividend date was July 16, 2013. Wwwhrblock com Your Form 1099-DIV from XYZ Corp. Wwwhrblock com shows $500 in box 1a (ordinary dividends) and in box 1b (qualified dividends). Wwwhrblock com However, you sold the 5,000 shares on August 12, 2013. Wwwhrblock com You held your shares of XYZ Corp. Wwwhrblock com for only 34 days of the 121-day period (from July 10, 2013, through August 12, 2013). Wwwhrblock com The 121-day period began on May 17, 2013 (60 days before the ex-dividend date), and ended on September 14, 2013. Wwwhrblock com You have no qualified dividends from XYZ Corp. Wwwhrblock com because you held the XYZ stock for less than 61 days. Wwwhrblock com Example 2. Wwwhrblock com Assume the same facts as in Example 1 except that you bought the stock on July 15, 2013 (the day before the ex-dividend date), and you sold the stock on September 16, 2013. Wwwhrblock com You held the stock for 63 days (from July 16, 2013, through September 16, 2013). Wwwhrblock com The $500 of qualified dividends shown in box 1b of your Form 1099-DIV are all qualified dividends because you held the stock for 61 days of the 121-day period (from July 16, 2013, through September 14, 2013). Wwwhrblock com Example 3. Wwwhrblock com You bought 10,000 shares of ABC Mutual Fund common stock on July 9, 2013. Wwwhrblock com ABC Mutual Fund paid a cash dividend of 10 cents a share. Wwwhrblock com The ex-dividend date was July 16, 2013. Wwwhrblock com The ABC Mutual Fund advises you that the portion of the dividend eligible to be treated as qualified dividends equals 2 cents per share. Wwwhrblock com Your Form 1099-DIV from ABC Mutual Fund shows total ordinary dividends of $1,000 and qualified dividends of $200. Wwwhrblock com However, you sold the 10,000 shares on August 12, 2013. Wwwhrblock com You have no qualified dividends from ABC Mutual Fund because you held the ABC Mutual Fund stock for less than 61 days. Wwwhrblock com Holding period reduced where risk of loss is diminished. Wwwhrblock com   When determining whether you met the minimum holding period discussed earlier, you cannot count any day during which you meet any of the following conditions. Wwwhrblock com You had an option to sell, were under a contractual obligation to sell, or had made (and not closed) a short sale of substantially identical stock or securities. Wwwhrblock com You were grantor (writer) of an option to buy substantially identical stock or securities. Wwwhrblock com Your risk of loss is diminished by holding one or more other positions in substantially similar or related property. Wwwhrblock com   For information about how to apply condition (3), see Regulations section 1. Wwwhrblock com 246-5. Wwwhrblock com Qualified foreign corporation. Wwwhrblock com   A foreign corporation is a qualified foreign corporation if it meets any of the following conditions. Wwwhrblock com The corporation is incorporated in a U. Wwwhrblock com S. Wwwhrblock com possession. Wwwhrblock com The corporation is eligible for the benefits of a comprehensive income tax treaty with the United States that the Treasury Department determines is satisfactory for this purpose and that includes an exchange of information program. Wwwhrblock com For a list of those treaties, see Table 8-1. Wwwhrblock com The corporation does not meet (1) or (2) above, but the stock for which the dividend is paid is readily tradable on an established securities market in the United States. Wwwhrblock com See Readily tradable stock , later. Wwwhrblock com Exception. Wwwhrblock com   A corporation is not a qualified foreign corporation if it is a passive foreign investment company during its tax year in which the dividends are paid or during its previous tax year. Wwwhrblock com Readily tradable stock. Wwwhrblock com   Any stock (such as common, ordinary, or preferred) or an American depositary receipt in respect of that stock is considered to satisfy requirement (3) under Qualified foreign corporation , if it is listed on a national securities exchange that is registered under section 6 of the Securities Exchange Act of 1934 or on the Nasdaq Stock Market. Wwwhrblock com For a list of the exchanges that meet these requirements, see www. Wwwhrblock com sec. Wwwhrblock com gov/divisions/marketreg/mrexchanges. Wwwhrblock com shtml. Wwwhrblock com Dividends that are not qualified dividends. Wwwhrblock com   The following dividends are not qualified dividends. Wwwhrblock com They are not qualified dividends even if they are shown in box 1b of Form 1099-DIV. Wwwhrblock com Capital gain distributions. Wwwhrblock com Dividends paid on deposits with mutual savings banks, cooperative banks, credit unions, U. Wwwhrblock com S. Wwwhrblock com building and loan associations, U. Wwwhrblock com S. Wwwhrblock com savings and loan associations, federal savings and loan associations, and similar financial institutions. Wwwhrblock com (Report these amounts as interest income. Wwwhrblock com ) Dividends from a corporation that is a tax-exempt organization or farmer's cooperative during the corporation's tax year in which the dividends were paid or during the corporation's previous tax year. Wwwhrblock com Dividends paid by a corporation on employer securities held on the date of record by an employee stock ownership plan (ESOP) maintained by that corporation. Wwwhrblock com Dividends on any share of stock to the extent you are obligated (whether under a short sale or otherwise) to make related payments for positions in substantially similar or related property. Wwwhrblock com Payments in lieu of dividends, but only if you know or have reason to know the payments are not qualified dividends. Wwwhrblock com Payments shown in Form 1099-DIV, box 1b, from a foreign corporation to the extent you know or have reason to know the payments are not qualified dividends. Wwwhrblock com Table 8-1. Wwwhrblock com Income Tax Treaties Income tax treaties the United States has with the following countries satisfy requirement (2) under Qualified foreign corporation. Wwwhrblock com Australia Indonesia Romania Austria Ireland Russian Bangladesh Israel Federation Barbados Italy Slovak Belgium Jamaica Republic Bulgaria Japan Slovenia Canada Kazakhstan South Africa China Korea Spain Cyprus Latvia Sri Lanka Czech Lithuania Sweden Republic Luxembourg Switzerland Denmark Malta Thailand Egypt Mexico Trinidad and Estonia Morocco Tobago Finland Netherlands Tunisia France New Zealand Turkey Germany Norway Ukraine Greece Pakistan United Hungary Philippines Kingdom Iceland Poland Venezuela India Portugal     Dividends Used to Buy More Stock The corporation in which you own stock may have a dividend reinvestment plan. Wwwhrblock com This plan lets you choose to use your dividends to buy (through an agent) more shares of stock in the corporation instead of receiving the dividends in cash. Wwwhrblock com Most mutual funds also permit shareholders to automatically reinvest distributions in more shares in the fund, instead of receiving cash. Wwwhrblock com If you use your dividends to buy more stock at a price equal to its fair market value, you still must report the dividends as income. Wwwhrblock com If you are a member of a dividend reinvestment plan that lets you buy more stock at a price less than its fair market value, you must report as dividend income the fair market value of the additional stock on the dividend payment date. Wwwhrblock com You also must report as dividend income any service charge subtracted from your cash dividends before the dividends are used to buy the additional stock. Wwwhrblock com But you may be able to deduct the service charge. Wwwhrblock com See chapter 28 for more information about deducting expenses of producing income. Wwwhrblock com In some dividend reinvestment plans, you can invest more cash to buy shares of stock at a price less than fair market value. Wwwhrblock com If you choose to do this, you must report as dividend income the difference between the cash you invest and the fair market value of the stock you buy. Wwwhrblock com When figuring this amount, use the fair market value of the stock on the dividend payment date. Wwwhrblock com Money Market Funds Report amounts you receive from money market funds as dividend income. Wwwhrblock com Money market funds are a type of mutual fund and should not be confused with bank money market accounts that pay interest. Wwwhrblock com Capital Gain Distributions Capital gain distributions (also called capital gain dividends) are paid to you or credited to your account by mutual funds (or other regulated investment companies) and real estate investment trusts (REITs). Wwwhrblock com They will be shown in box 2a of the Form 1099-DIV you receive from the mutual fund or REIT. Wwwhrblock com Report capital gain distributions as long-term capital gains, regardless of how long you owned your shares in the mutual fund or REIT. Wwwhrblock com Undistributed capital gains of mutual funds and REITs. Wwwhrblock com    Some mutual funds and REITs keep their long-term capital gains and pay tax on them. Wwwhrblock com You must treat your share of these gains as distributions, even though you did not actually receive them. Wwwhrblock com However, they are not included on Form 1099-DIV. Wwwhrblock com Instead, they are reported to you in box 1a of Form 2439. Wwwhrblock com   Report undistributed capital gains (box 1a of Form 2439) as long-term capital gains on Schedule D (Form 1040), column (h), line 11. Wwwhrblock com   The tax paid on these gains by the mutual fund or REIT is shown in box 2 of Form 2439. Wwwhrblock com You take credit for this tax by including it on Form 1040, line 71, and checking box a on that line. Wwwhrblock com Attach Copy B of Form 2439 to your return, and keep Copy C for your records. Wwwhrblock com Basis adjustment. Wwwhrblock com   Increase your basis in your mutual fund, or your interest in a REIT, by the difference between the gain you report and the credit you claim for the tax paid. Wwwhrblock com Additional information. Wwwhrblock com   For more information on the treatment of distributions from mutual funds, see Publication 550. Wwwhrblock com Nondividend Distributions A nondividend distribution is a distribution that is not paid out of the earnings and profits of a corporation or a mutual fund. Wwwhrblock com You should receive a Form 1099-DIV or other statement showing the nondividend distribution. Wwwhrblock com On Form 1099-DIV, a nondividend distribution will be shown in box 3. Wwwhrblock com If you do not receive such a statement, you report the distribution as an ordinary dividend. Wwwhrblock com Basis adjustment. Wwwhrblock com   A nondividend distribution reduces the basis of your stock. Wwwhrblock com It is not taxed until your basis in the stock is fully recovered. Wwwhrblock com This nontaxable portion is also called a return of capital; it is a return of your investment in the stock of the company. Wwwhrblock com If you buy stock in a corporation in different lots at different times, and you cannot definitely identify the shares subject to the nondividend distribution, reduce the basis of your earliest purchases first. Wwwhrblock com   When the basis of your stock has been reduced to zero, report any additional nondividend distribution you receive as a capital gain. Wwwhrblock com Whether you report it as a long-term or short-term capital gain depends on how long you have held the stock. Wwwhrblock com See Holding Period in chapter 14. Wwwhrblock com Example. Wwwhrblock com You bought stock in 2000 for $100. Wwwhrblock com In 2003, you received a nondividend distribution of $80. Wwwhrblock com You did not include this amount in your income, but you reduced the basis of your stock to $20. Wwwhrblock com You received a nondividend distribution of $30 in 2013. Wwwhrblock com The first $20 of this amount reduced your basis to zero. Wwwhrblock com You report the other $10 as a long-term capital gain for 2013. Wwwhrblock com You must report as a long-term capital gain any nondividend distribution you receive on this stock in later years. Wwwhrblock com Liquidating Distributions Liquidating distributions, sometimes called liquidating dividends, are distributions you receive during a partial or complete liquidation of a corporation. Wwwhrblock com These distributions are, at least in part, one form of a return of capital. Wwwhrblock com They may be paid in one or more installments. Wwwhrblock com You will receive Form 1099-DIV from the corporation showing you the amount of the liquidating distribution in box 8 or 9. Wwwhrblock com For more information on liquidating distributions, see chapter 1 of Publication 550. Wwwhrblock com Distributions of Stock and Stock Rights Distributions by a corporation of its own stock are commonly known as stock dividends. Wwwhrblock com Stock rights (also known as “stock options”) are distributions by a corporation of rights to acquire the corporation's stock. Wwwhrblock com Generally, stock dividends and stock rights are not taxable to you, and you do not report them on your return. Wwwhrblock com Taxable stock dividends and stock rights. Wwwhrblock com   Distributions of stock dividends and stock rights are taxable to you if any of the following apply. Wwwhrblock com You or any other shareholder have the choice to receive cash or other property instead of stock or stock rights. Wwwhrblock com The distribution gives cash or other property to some shareholders and an increase in the percentage interest in the corporation's assets or earnings and profits to other shareholders. Wwwhrblock com The distribution is in convertible preferred stock and has the same result as in (2). Wwwhrblock com The distribution gives preferred stock to some common stock shareholders and common stock to other common stock shareholders. Wwwhrblock com The distribution is on preferred stock. Wwwhrblock com (The distribution, however, is not taxable if it is an increase in the conversion ratio of convertible preferred stock made solely to take into account a stock dividend, stock split, or similar event that would otherwise result in reducing the conversion right. Wwwhrblock com )   The term “stock” includes rights to acquire stock, and the term “shareholder” includes a holder of rights or of convertible securities. Wwwhrblock com If you receive taxable stock dividends or stock rights, include their fair market value at the time of distribution in your income. Wwwhrblock com Preferred stock redeemable at a premium. Wwwhrblock com   If you hold preferred stock having a redemption price higher than its issue price, the difference (the redemption premium) generally is taxable as a constructive distribution of additional stock on the preferred stock. Wwwhrblock com For more information, see chapter 1 of Publication 550. Wwwhrblock com Basis. Wwwhrblock com   Your basis in stock or stock rights received in a taxable distribution is their fair market value when distributed. Wwwhrblock com If you receive stock or stock rights that are not taxable to you, see Stocks and Bonds under Basis of Investment Property in chapter 4 of Publication 550 for information on how to figure their basis. Wwwhrblock com Fractional shares. Wwwhrblock com    You may not own enough stock in a corporation to receive a full share of stock if the corporation declares a stock dividend. Wwwhrblock com However, with the approval of the shareholders, the corporation may set up a plan in which fractional shares are not issued but instead are sold, and the cash proceeds are given to the shareholders. Wwwhrblock com Any cash you receive for fractional shares under such a plan is treated as an amount realized on the sale of the fractional shares. Wwwhrblock com Report this transaction on Form 8949, Sales and Other Dispositions of Capital Assets. Wwwhrblock com Enter your gain or loss, the difference between the cash you receive and the basis of the fractional shares sold, in column (h) of Schedule D (Form 1040) in Part I or Part II, whichever is appropriate. Wwwhrblock com    Report these transactions on Form 8949 with the correct box checked. Wwwhrblock com   For more information on Form 8949 and Schedule D (Form 1040), see chapter 4 of Publication 550. Wwwhrblock com Also see the Instructions for Form 8949 and the Instructions for Schedule D (Form 1040). Wwwhrblock com Example. Wwwhrblock com You own one share of common stock that you bought on January 3, 2004, for $100. Wwwhrblock com The corporation declared a common stock dividend of 5% on June 29, 2013. Wwwhrblock com The fair market value of the stock at the time the stock dividend was declared was $200. Wwwhrblock com You were paid $10 for the fractional-share stock dividend under a plan described in the discussion above. Wwwhrblock com You figure your gain or loss as follows: Fair market value of old stock $200. Wwwhrblock com 00 Fair market value of stock dividend (cash received) +10. Wwwhrblock com 00 Fair market value of old stock and stock dividend $210. Wwwhrblock com 00 Basis (cost) of old stock after the stock dividend (($200 ÷ $210) × $100) $95. Wwwhrblock com 24 Basis (cost) of stock dividend (($10 ÷ $210) × $100) + 4. Wwwhrblock com 76 Total $100. Wwwhrblock com 00 Cash received $10. Wwwhrblock com 00 Basis (cost) of stock dividend − 4. Wwwhrblock com 76 Gain $5. Wwwhrblock com 24 Because you had held the share of stock for more than 1 year at the time the stock dividend was declared, your gain on the stock dividend is a long-term capital gain. Wwwhrblock com Scrip dividends. Wwwhrblock com   A corporation that declares a stock dividend may issue you a scrip certificate that entitles you to a fractional share. Wwwhrblock com The certificate is generally nontaxable when you receive it. Wwwhrblock com If you choose to have the corporation sell the certificate for you and give you the proceeds, your gain or loss is the difference between the proceeds and the portion of your basis in the corporation's stock allocated to the certificate. Wwwhrblock com   However, if you receive a scrip certificate that you can choose to redeem for cash instead of stock, the certificate is taxable when you receive it. Wwwhrblock com You must include its fair market value in income on the date you receive it. Wwwhrblock com Other Distributions You may receive any of the following distributions during the year. Wwwhrblock com Exempt-interest dividends. Wwwhrblock com   Exempt-interest dividends you receive from a mutual fund or other regulated investment company, including those received from a qualified fund of funds in any tax year beginning after December 22, 2010, are not included in your taxable income. Wwwhrblock com Exempt-interest dividends should be shown in box 10 of Form 1099-DIV. Wwwhrblock com Information reporting requirement. Wwwhrblock com   Although exempt-interest dividends are not taxable, you must show them on your tax return if you have to file a return. Wwwhrblock com This is an information reporting requirement and does not change the exempt-interest dividends to taxable income. Wwwhrblock com Alternative minimum tax treatment. Wwwhrblock com   Exempt-interest dividends paid from specified private activity bonds may be subject to the alternative minimum tax. Wwwhrblock com See Alternative Minimum Tax (AMT) in chapter 30 for more information. Wwwhrblock com Dividends on insurance policies. Wwwhrblock com    Insurance policy dividends the insurer keeps and uses to pay your premiums are not taxable. Wwwhrblock com However, you must report as taxable interest income the interest that is paid or credited on dividends left with the insurance company. Wwwhrblock com    If dividends on an insurance contract (other than a modified endowment contract) are distributed to you, they are a partial return of the premiums you paid. Wwwhrblock com Do not include them in your gross income until they are more than the total of all net premiums you paid for the contract. Wwwhrblock com Report any taxable distributions on insurance policies on Form 1040, line 21. Wwwhrblock com Dividends on veterans' insurance. Wwwhrblock com   Dividends you receive on veterans' insurance policies are not taxable. Wwwhrblock com In addition, interest on dividends left with the Department of Veterans Affairs is not taxable. Wwwhrblock com Patronage dividends. Wwwhrblock com   Generally, patronage dividends you receive in money from a cooperative organization are included in your income. Wwwhrblock com   Do not include in your income patronage dividends you receive on: Property bought for your personal use, or Capital assets or depreciable property bought for use in your business. Wwwhrblock com But you must reduce the basis (cost) of the items bought. Wwwhrblock com If the dividend is more than the adjusted basis of the assets, you must report the excess as income. Wwwhrblock com   These rules are the same whether the cooperative paying the dividend is a taxable or tax-exempt cooperative. Wwwhrblock com Alaska Permanent Fund dividends. Wwwhrblock com    Do not report these amounts as dividends. Wwwhrblock com Instead, report these amounts on Form 1040, line 21; Form 1040A, line 13; or Form 1040EZ, line 3. Wwwhrblock com How To Report Dividend Income Generally, you can use either Form 1040 or Form 1040A to report your dividend income. Wwwhrblock com Report the total of your ordinary dividends on line 9a of Form 1040 or Form 1040A. Wwwhrblock com Report qualified dividends on line 9b of Form 1040 or Form 1040A. Wwwhrblock com If you receive capital gain distributions, you may be able to use Form 1040A or you may have to use Form 1040. Wwwhrblock com See Exceptions to filing Form 8949 and Schedule D (Form 1040) in chapter 16. Wwwhrblock com If you receive nondividend distributions required to be reported as capital gains, you must use Form 1040. Wwwhrblock com You cannot use Form 1040EZ if you receive any dividend income. Wwwhrblock com Form 1099-DIV. Wwwhrblock com   If you owned stock on which you received $10 or more in dividends and other distributions, you should receive a Form 1099-DIV. Wwwhrblock com Even if you do not receive Form 1099-DIV, you must report all your dividend income. Wwwhrblock com   See Form 1099-DIV for more information on how to report dividend income. Wwwhrblock com Form 1040A or 1040. Wwwhrblock com    You must complete Schedule B (Form 1040A or 1040), Part II, and attach it to your Form 1040A or 1040, if: Your ordinary dividends (Form 1099-DIV, box 1a) are more than $1,500, or You received, as a nominee, dividends that actually belong to someone else. Wwwhrblock com If your ordinary dividends are more than $1,500, you must also complete Schedule B (Form 1040A or 1040), Part III. Wwwhrblock com   List on Schedule B (Form 1040A or 1040), Part II, line 5, each payer's name and the ordinary dividends you received. Wwwhrblock com If your securities are held by a brokerage firm (in “street name”), list the name of the brokerage firm shown on Form 1099-DIV as the payer. Wwwhrblock com If your stock is held by a nominee who is the owner of record, and the nominee credited or paid you dividends on the stock, show the name of the nominee and the dividends you received or for which you were credited. Wwwhrblock com   Enter on line 6 the total of the amounts listed on line 5. Wwwhrblock com Also enter this total on line 9a of Form 1040A or 1040. Wwwhrblock com Qualified dividends. Wwwhrblock com   Report qualified dividends (Form 1099-DIV, box 1b) on line 9b of Form 1040 or Form 1040A. Wwwhrblock com The amount in box 1b is already included in box 1a. Wwwhrblock com Do not add the amount in box 1b to, or substract it from, the amount in box 1a. Wwwhrblock com   Do not include any of the following on line 9b. Wwwhrblock com Qualified dividends you received as a nominee. Wwwhrblock com See Nominees under How to Report Dividend Income in chapter 1 of Publication 550. Wwwhrblock com Dividends on stock for which you did not meet the holding period. Wwwhrblock com See Holding period , earlier under Qualified Dividends. Wwwhrblock com Dividends on any share of stock to the extent you are obligated (whether under a short sale or otherwise) to make related payments for positions in substantially similar or related property. Wwwhrblock com Payments in lieu of dividends, but only if you know or have reason to know the payments are not qualified dividends. Wwwhrblock com Payments shown in Form 1099-DIV, box 1b, from a foreign corporation to the extent you know or have reason to know the payments are not qualified dividends. Wwwhrblock com   If you have qualified dividends, you must figure your tax by completing the Qualified Dividends and Capital Gain Tax Worksheet in the Form 1040 or 1040A instructions or the Schedule D Tax Worksheet in the Schedule D (Form 1040) instructions, whichever applies. Wwwhrblock com Enter qualified dividends on line 2 of the worksheet. Wwwhrblock com Investment interest deducted. Wwwhrblock com   If you claim a deduction for investment interest, you may have to reduce the amount of your qualified dividends that are eligible for the 0%, 15%, or 20% tax rate. Wwwhrblock com Reduce it by the qualified dividends you choose to include in investment income when figuring the limit on your investment interest deduction. Wwwhrblock com This is done on the Qualified Dividends and Capital Gain Tax Worksheet or the Schedule D Tax Worksheet. Wwwhrblock com For more information about the limit on investment interest, see Investment expenses in chapter 23. Wwwhrblock com Expenses related to dividend income. Wwwhrblock com   You may be able to deduct expenses related to dividend income if you itemize your deductions on Schedule A (Form 1040). Wwwhrblock com See chapter 28 for general information about deducting expenses of producing income. Wwwhrblock com More information. Wwwhrblock com    For more information about how to report dividend income, see chapter 1 of Publication 550 or the instructions for the form you must file. Wwwhrblock com Prev  Up  Next   Home   More Online Publications
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Wwwhrblock com Publication 1544 - Main Content Table of Contents Why Report These Payments? Who Must File Form 8300?What Payments Must Be Reported? What Is Cash? Taxpayer Identification Number (TIN) What Is a Related Transaction? What About Suspicious Transactions? When, Where, and What To File Examples Penalties How To Get Tax HelpLow Income Taxpayer Clinics (LITCs). Wwwhrblock com Why Report These Payments? Drug dealers and smugglers often use large cash payments to “launder” money from illegal activities. Wwwhrblock com Laundering means converting “dirty” or illegally-gained money to “clean” money. Wwwhrblock com The government can often trace this laundered money through the payments you report. Wwwhrblock com Laws passed by Congress require you to report these payments. Wwwhrblock com Your compliance with these laws provides valuable information that can stop those who evade taxes and those who profit from the drug trade and other criminal activities. Wwwhrblock com The USA PATRIOT Act of 2001 increased the scope of these laws to help trace funds used for terrorism. Wwwhrblock com Who Must File Form 8300? Generally, any person in a trade or business who receives more than $10,000 in cash in a single transaction or in related transactions must file Form 8300. Wwwhrblock com For example, you may have to file Form 8300 if you are a dealer in jewelry, furniture, boats, aircraft, or automobiles; a pawnbroker; an attorney; a real estate broker; an insurance company; or a travel agency. Wwwhrblock com Special rules for clerks of federal or state courts are discussed later under Bail received by court clerks. Wwwhrblock com However, you do not have to file Form 8300 if the transaction is not related to your trade or business. Wwwhrblock com For example, if you own a jewelry store and sell your personal automobile for more than $10,000 in cash, you would not submit a Form 8300 for that transaction. Wwwhrblock com Transaction defined. Wwwhrblock com    A “transaction” occurs when: Goods, services, or property are sold; Property is rented; Cash is exchanged for other cash; A contribution is made to a trust or escrow account; A loan is made or repaid; or Cash is converted to a negotiable instrument, such as a check or a bond. Wwwhrblock com Person defined. Wwwhrblock com   A “person” includes an individual, a company, a corporation, a partnership, an association, a trust, or an estate. Wwwhrblock com   Exempt organizations, including employee plans, are also “persons. Wwwhrblock com ” However, exempt organizations do not have to file Form 8300 for a more-than-$10,000 charitable cash contribution they receive since it is not received in the course of a trade or business. Wwwhrblock com Foreign transactions. Wwwhrblock com   You do not have to file Form 8300 if the entire transaction (including the receipt of cash) takes place outside of: The 50 states, The District of Columbia, Puerto Rico, or A possession or territory of the United States. Wwwhrblock com However, you must file Form 8300 if any part of the transaction (including the receipt of cash) occurs in Puerto Rico or a possession or territory of the United States and you are subject to the Internal Revenue Code. Wwwhrblock com Bail received by court clerks. Wwwhrblock com   Any clerk of a federal or state court who receives more than $10,000 in cash as bail for an individual charged with any of the following criminal offenses must file Form 8300: Any federal offense involving a controlled substance, Racketeering, Money laundering, and Any state offense substantially similar to (1), (2), or (3) above. Wwwhrblock com For more information about the rules that apply to court clerks, see Section 1. Wwwhrblock com 6050I-2 of the Income Tax Regulations. Wwwhrblock com What Payments Must Be Reported? You must file Form 8300 to report cash paid to you if it is: Over $10,000, Received as: One lump sum of over $10,000, Installment payments that cause the total cash received within 1 year of the initial payment to total more than $10,000, or Other previously unreportable payments that cause the total cash received within a 12-month period to total more than $10,000, Received in the course of your trade or business, Received from the same buyer (or agent), and Received in a single transaction or in related transactions (defined later). Wwwhrblock com What Is Cash? Cash is: The coins and currency of the United States (and any other country), and A cashier's check, bank draft, traveler's check, or money order you receive, if it has a face amount of $10,000 or less and you receive it in: A designated reporting transaction (defined later), or Any transaction in which you know the payer is trying to avoid the reporting of the transaction on Form 8300. Wwwhrblock com Cash may include a cashier's check even if it is called a “treasurer's check” or “bank check. Wwwhrblock com ” Cash does not include a check drawn on an individual's personal account. Wwwhrblock com A cashier's check, bank draft, traveler's check, or money order with a face amount of more than $10,000 is not treated as cash. Wwwhrblock com These items are not defined as cash and you do not have to file Form 8300 when you receive them because, if they were bought with currency, the bank or other financial institution that issued them must file a report on FinCEN Form 104. Wwwhrblock com Example 1. Wwwhrblock com You are a coin dealer. Wwwhrblock com Bob Green buys gold coins from you for $13,200. Wwwhrblock com He pays for them with $6,200 in U. Wwwhrblock com S. Wwwhrblock com currency and a cashier's check having a face amount of $7,000. Wwwhrblock com The cashier's check is treated as cash. Wwwhrblock com You have received more than $10,000 cash and must file Form 8300 for this transaction. Wwwhrblock com Example 2. Wwwhrblock com You are a retail jeweler. Wwwhrblock com Mary North buys an item of jewelry from you for $12,000. Wwwhrblock com She pays for it with a personal check payable to you in the amount of $9,600 and traveler's checks totaling $2,400. Wwwhrblock com Because the personal check is not treated as cash, you have not received more than $10,000 cash in the transaction. Wwwhrblock com You do not have to file Form 8300. Wwwhrblock com Example 3. Wwwhrblock com You are a boat dealer. Wwwhrblock com Emily Jones buys a boat from you for $16,500. Wwwhrblock com She pays for it with a cashier's check payable to you in the amount of $16,500. Wwwhrblock com The cashier's check is not treated as cash because its face amount is more than $10,000. Wwwhrblock com You do not have to file Form 8300 for this transaction. Wwwhrblock com Designated Reporting Transaction A designated reporting transaction is the retail sale of any of the following: A consumer durable, such as an automobile or boat. Wwwhrblock com A consumer durable is property, other than land or buildings, that: Is suitable for personal use, Can reasonably be expected to last at least 1 year under ordinary use, Has a sales price of more than $10,000, and Can be seen or touched (tangible property). Wwwhrblock com For example, a $20,000 car is a consumer durable, but a $20,000 dump truck or factory machine is not. Wwwhrblock com The car is a consumer durable even if you sell it to a buyer who will use it in a business. Wwwhrblock com A collectible (for example, a work of art, rug, antique, metal, gem, stamp, or coin). Wwwhrblock com Travel or entertainment, if the total sales price of all items sold for the same trip or entertainment event in one transaction (or related transactions) is more than $10,000. Wwwhrblock com To figure the total sales price of all items sold for a trip or entertainment event, you include the sales price of items such as airfare, hotel rooms, and admission tickets. Wwwhrblock com Example. Wwwhrblock com You are a travel agent. Wwwhrblock com Ed Johnson asks you to charter a passenger airplane to take a group to a sports event in another city. Wwwhrblock com He also asks you to book hotel rooms and admission tickets for the group. Wwwhrblock com In payment, he gives you two money orders, each for $6,000. Wwwhrblock com You have received more than $10,000 cash in this designated reporting transaction. Wwwhrblock com You must file Form 8300. Wwwhrblock com Retail sale. Wwwhrblock com   The term “retail sale” means any sale made in the course of a trade or business that consists mainly of making sales to ultimate consumers. Wwwhrblock com   Thus, if your business consists mainly of making sales to ultimate consumers, all sales you make in the course of that business are retail sales. Wwwhrblock com This includes any sales of items that will be resold. Wwwhrblock com Broker or intermediary. Wwwhrblock com   A designated reporting transaction includes the retail sale of items (1), (2), or (3) of the preceding list, even if the funds are received by a broker or other intermediary, rather than directly by the seller. Wwwhrblock com Exceptions to Definition of Cash A cashier's check, bank draft, traveler's check, or money order you received in a designated reporting transaction is not treated as cash if one of the following exceptions applies. Wwwhrblock com Exception for certain bank loans. Wwwhrblock com   A cashier's check, bank draft, traveler's check, or money order is not treated as cash if it is the proceeds from a bank loan. Wwwhrblock com As proof that it is from a bank loan, you may rely on a copy of the loan document, a written statement or lien instruction from the bank, or similar proof. Wwwhrblock com Example. Wwwhrblock com You are a car dealer. Wwwhrblock com Mandy White buys a new car from you for $11,500. Wwwhrblock com She pays you with $2,000 of U. Wwwhrblock com S. Wwwhrblock com currency and a cashier's check for $9,500 payable to you and her. Wwwhrblock com You can tell that the cashier's check is the proceeds of a bank loan because it includes instructions to you to have a lien put on the car as security for the loan. Wwwhrblock com For this reason, the cashier's check is not treated as cash. Wwwhrblock com You do not have to file Form 8300 for the transaction. Wwwhrblock com Exception for certain installment sales. Wwwhrblock com   A cashier's check, bank draft, traveler's check, or money order is not treated as cash if it is received in payment on a promissory note or an installment sales contract (including a lease that is considered a sale for federal tax purposes). Wwwhrblock com However, this exception applies only if: You use similar notes or contracts in other sales to ultimate consumers in the ordinary course of your trade or business, and The total payments for the sale that you receive on or before the 60th day after the sale are 50% or less of the purchase price. Wwwhrblock com Exception for certain down payment plans. Wwwhrblock com   A cashier's check, bank draft, traveler's check, or money order is not treated as cash if you received it in payment for a consumer durable or collectible, and all three of the following statements are true. Wwwhrblock com You receive it under a payment plan requiring: One or more down payments, and Payment of the rest of the purchase price by the date of sale. Wwwhrblock com You receive it more than 60 days before the date of sale. Wwwhrblock com You use payment plans with the same or substantially similar terms when selling to ultimate consumers in the ordinary course of your trade or business. Wwwhrblock com Exception for travel and entertainment. Wwwhrblock com   A cashier's check, bank draft, traveler's check, or money order received for travel or entertainment is not treated as cash if all three of the following statements are true. Wwwhrblock com You receive it under a payment plan requiring: One or more down payments, and Payment of the rest of the purchase price by the earliest date that any travel or entertainment item (such as airfare) is furnished for the trip or entertainment event. Wwwhrblock com You receive it more than 60 days before the date on which the final payment is due. Wwwhrblock com You use payment plans with the same or substantially similar terms when selling to ultimate consumers in the ordinary course of your trade or business. Wwwhrblock com Taxpayer Identification Number (TIN) You must furnish the correct TIN of the person or persons from whom you receive the cash. Wwwhrblock com If the transaction is conducted on the behalf of another person or persons, you must furnish the TIN of that person or persons. Wwwhrblock com If you do not know a person's TIN, you have to ask for it. Wwwhrblock com You may be subject to penalties for an incorrect or missing TIN. Wwwhrblock com There are three types of TINs. Wwwhrblock com The TIN for an individual, including a sole proprietor, is the individual's social security number (SSN). Wwwhrblock com The TIN for a nonresident alien individual who needs a TIN but is not eligible to get an SSN is an IRS individual taxpayer identification number (ITIN). Wwwhrblock com An ITIN has nine digits, similar to an SSN. Wwwhrblock com The TIN for other persons, including corporations, partnerships, and estates, is the employer identification number (EIN). Wwwhrblock com Exception. Wwwhrblock com   You are not required to provide the TIN of a person who is a nonresident alien individual or a foreign organization if that person or foreign organization: Does not have income effectively connected with the conduct of a U. Wwwhrblock com S. Wwwhrblock com trade or business; Does not have an office or place of business, or a fiscal or paying agent in the United States; Does not file a federal tax return; Does not furnish a withholding certificate described in §1. Wwwhrblock com 1441-1(e)(2) or (3) or 1. Wwwhrblock com 1441-5(c)(2)(iv) or (3)(iii) to the extent required under 1. Wwwhrblock com 1441-1(e)(4)(vii); Does not have to furnish a TIN on any return, statement, or other document as required by the income tax regulations under section 897 or 1445; or In the case of a nonresident alien individual, the individual has not chosen to file a joint federal income tax return with a spouse who is a U. Wwwhrblock com S. Wwwhrblock com citizen or resident. Wwwhrblock com What Is a Related Transaction? Any transactions between a buyer (or an agent of the buyer) and a seller that occur within a 24-hour period are related transactions. Wwwhrblock com If you receive over $10,000 in cash during two or more transactions with one buyer in a 24-hour period, you must treat the transactions as one transaction and report the payments on Form 8300. Wwwhrblock com For example, if you sell two products for $6,000 each to the same customer in 1 day and the customer pays you in cash, these are related transactions. Wwwhrblock com Because they total $12,000 (more than $10,000), you must file Form 8300. Wwwhrblock com More than 24 hours between transactions. Wwwhrblock com   Transactions are related even if they are more than 24 hours apart if you know, or have reason to know, that each is one of a series of connected transactions. Wwwhrblock com   For example, you are a travel agent. Wwwhrblock com A client pays you $8,000 in cash for a trip. Wwwhrblock com Two days later, the same client pays you $3,000 more in cash to include another person on the trip. Wwwhrblock com These are related transactions, and you must file Form 8300 to report them. Wwwhrblock com What About Suspicious Transactions? If you receive $10,000 or less in cash, you may voluntarily file Form 8300 if the transaction appears to be suspicious. Wwwhrblock com A transaction is suspicious if it appears that a person is trying to cause you not to file Form 8300 or is trying to cause you to file a false or incomplete Form 8300, or if there is a sign of possible illegal activity. Wwwhrblock com If you are suspicious, you are encouraged to call the local IRS Criminal Investigation Division as soon as possible. Wwwhrblock com Or, you can call the FinCEN Financial Institution Hotline toll free at 1-866-556-3974. Wwwhrblock com When, Where, and What To File The amount you receive and when you receive it determine when you must file. Wwwhrblock com Generally, you must file Form 8300 within 15 days after receiving a payment. Wwwhrblock com If the Form 8300 due date (the 15th or last day you can timely file the form) falls on a Saturday, Sunday, or legal holiday, it is delayed until the next day that is not a Saturday, Sunday, or legal holiday. Wwwhrblock com More than one payment. Wwwhrblock com   In some transactions, the buyer may arrange to pay you in cash installment payments. Wwwhrblock com If the first payment is more than $10,000, you must file Form 8300 within 15 days. Wwwhrblock com If the first payment is not more than $10,000, you must add the first payment and any later payments made within 1 year of the first payment. Wwwhrblock com When the total cash payments are more than $10,000, you must file Form 8300 within 15 days. Wwwhrblock com   After you file Form 8300, you must start a new count of cash payments received from that buyer. Wwwhrblock com If you receive more than $10,000 in additional cash payments from that buyer within a 12-month period, you must file another Form 8300. Wwwhrblock com You must file the form within 15 days of the payment that causes the additional payments to total more than $10,000. Wwwhrblock com   If you are already required to file Form 8300 and you receive additional payments within the 15 days before you must file, you can report all the payments on one form. Wwwhrblock com Example. Wwwhrblock com On January 10, you receive a cash payment of $11,000. Wwwhrblock com You receive additional cash payments on the same transaction of $4,000 on February 15, $5,000 on March 20, and $6,000 on May 12. Wwwhrblock com By January 25, you must file a Form 8300 for the $11,000 payment. Wwwhrblock com By May 27, you must file an additional Form 8300 for the additional payments that total $15,000. Wwwhrblock com Amending a Report?   If you are amending a report, check box 1a at the top of Form 8300. Wwwhrblock com Complete the form in its entirety (Parts I-IV) and include the amended information. Wwwhrblock com Do not attach a copy of the original report. Wwwhrblock com Where to file. Wwwhrblock com   Mail the form to the address given in the Form 8300 instructions. Wwwhrblock com Required statement to buyer. Wwwhrblock com   You must give a written or electronic statement to each person named on any Form 8300 you must file. Wwwhrblock com You can give the statement electronically only if the recipient agrees to receive it in that format. Wwwhrblock com The statement must show the name and address of your business, the name and phone number of a contact person, and the total amount of reportable cash you received from the person during the year. Wwwhrblock com It must state that you are also reporting this information to the IRS. Wwwhrblock com   You must send this statement to the buyer by January 31 of the year after the year in which you received the cash that caused you to file the form. Wwwhrblock com    You must keep a copy of every Form 8300 you file for 5 years. Wwwhrblock com Examples Example 1. Wwwhrblock com Pat Brown is the sales manager for Small Town Cars. Wwwhrblock com On January 6, 2009, Jane Smith buys a new car from Pat and pays $18,000 in cash. Wwwhrblock com Pat asks for identification from Jane to get the necessary information to complete Form 8300. Wwwhrblock com A filled-in form is shown in this publication. Wwwhrblock com Pat must mail the form to the address shown in the form's instructions by January 21, 2009. Wwwhrblock com He must also send a statement to Jane by January 31, 2010. Wwwhrblock com Example 2. Wwwhrblock com Using the same facts given in Example 1, suppose Jane had arranged to make cash payments of $6,000 each on January 6, February 6, and March 6. Wwwhrblock com Pat would have to file a Form 8300 by February 26 (17 days after receiving total cash payments within 1 year over $10,000 because February 21, 2009, is a Saturday). Wwwhrblock com Pat would not have to report the remaining $6,000 cash payment because it is not more than $10,000. Wwwhrblock com However, he could report it if he felt it was a suspicious transaction. Wwwhrblock com Penalties There are civil penalties for failure to: File a correct Form 8300 by the date it is due, and Provide the required statement to those named in the Form 8300. Wwwhrblock com If you intentionally disregard the requirement to file a correct Form 8300 by the date it is due, the penalty is the greater of: $25,000, or The amount of cash you received and were required to report (up to $100,000). Wwwhrblock com There are criminal penalties for: Willful failure to file Form 8300, Willfully filing a false or fraudulent Form 8300, Stopping or trying to stop Form 8300 from being filed, and Setting up, helping to set up, or trying to set up a transaction in a way that would make it seem unnecessary to file Form 8300. Wwwhrblock com If you willfully fail to file Form 8300, you can be fined up to $250,000 for individuals ($500,000 for corporations) or sentenced to up to 5 years in prison, or both. Wwwhrblock com These dollar amounts are based on Section 3571 of Title 18 of the U. Wwwhrblock com S. Wwwhrblock com Code. Wwwhrblock com The penalties for failure to file may also apply to any person (including a payer) who attempts to interfere with or prevent the seller (or business) from filing a correct Form 8300. Wwwhrblock com This includes any attempt to structure the transaction in a way that would make it seem unnecessary to file Form 8300. Wwwhrblock com Structuring means breaking up a large cash transaction into small cash transactions. Wwwhrblock com How To Get Tax Help You can get help with unresolved tax issues, order free publications and forms, ask tax questions, and get information from the IRS in several ways. Wwwhrblock com By selecting the method that is best for you, you will have quick and easy access to tax help. Wwwhrblock com Free help with your return. Wwwhrblock com   Free help in preparing your return is available nationwide from IRS-certified volunteers. Wwwhrblock com The Volunteer Income Tax Assistance (VITA) program is designed to help low-moderate income taxpayers and the Tax Counseling for the Elderly (TCE) program is designed to assist taxpayers age 60 and older with their tax returns. Wwwhrblock com Most VITA and TCE sites offer free electronic filing and all volunteers will let you know about credits and deductions you may be entitled to claim. Wwwhrblock com To find the nearest VITA or TCE site, visit IRS. Wwwhrblock com gov or call 1-800-906-9887 or 1-800-829-1040. Wwwhrblock com   As part of the TCE program, AARP offers the Tax-Aide counseling program. Wwwhrblock com To find the nearest AARP Tax-Aide site, call 1-888-227-7669 or visit AARP's website at www. Wwwhrblock com aarp. Wwwhrblock com org/money/taxaide. Wwwhrblock com   For more information on these programs, go to IRS. Wwwhrblock com gov and enter keyword “VITA” in the upper right-hand corner. Wwwhrblock com Internet. Wwwhrblock com You can access the IRS website at IRS. Wwwhrblock com gov 24 hours a day, 7 days a week to: Check the status of your 2011 refund. Wwwhrblock com Go to IRS. Wwwhrblock com gov and click on Where's My Refund. Wwwhrblock com Wait at least 72 hours after the IRS acknowledges receipt of your e-filed return, or 3 to 4 weeks after mailing a paper return. Wwwhrblock com If you filed Form 8379 with your return, wait 14 weeks (11 weeks if you filed electronically). Wwwhrblock com Have your 2011 tax return available so you can provide your social security number, your filing status, and the exact whole dollar amount of your refund. Wwwhrblock com E-file your return. Wwwhrblock com Find out about commercial tax preparation and e-file services available free to eligible taxpayers. Wwwhrblock com Download forms, including talking tax forms, instructions, and publications. Wwwhrblock com Order IRS products online. Wwwhrblock com Research your tax questions online. Wwwhrblock com Search publications online by topic or keyword. Wwwhrblock com Use the online Internal Revenue Code, regulations, or other official guidance. Wwwhrblock com View Internal Revenue Bulletins (IRBs) published in the last few years. Wwwhrblock com Figure your withholding allowances using the withholding calculator online at  www. Wwwhrblock com irs. Wwwhrblock com gov/individuals. Wwwhrblock com Determine if Form 6251 must be filed by using our Alternative Minimum Tax (AMT) Assistant available online at  www. Wwwhrblock com irs. Wwwhrblock com gov/individuals. Wwwhrblock com Sign up to receive local and national tax news by email. Wwwhrblock com Get information on starting and operating a small business. Wwwhrblock com Phone. Wwwhrblock com Many services are available by phone. Wwwhrblock com   Ordering forms, instructions, and publications. Wwwhrblock com Call 1-800-TAX-FORM (1-800-829-3676) to order current-year forms, instructions, and publications, and prior-year forms and instructions. Wwwhrblock com You should receive your order within 10 days. Wwwhrblock com Asking tax questions. Wwwhrblock com Call the IRS with your tax questions at 1-800-829-1040. Wwwhrblock com Solving problems. Wwwhrblock com You can get face-to-face help solving tax problems every business day in IRS Taxpayer Assistance Centers. Wwwhrblock com An employee can explain IRS letters, request adjustments to your account, or help you set up a payment plan. Wwwhrblock com Call your local Taxpayer Assistance Center for an appointment. Wwwhrblock com To find the number, go to www. Wwwhrblock com irs. Wwwhrblock com gov/localcontacts or look in the phone book under United States Government, Internal Revenue Service. Wwwhrblock com TTY/TDD equipment. Wwwhrblock com If you have access to TTY/TDD equipment, call 1-800-829-4059 to ask tax questions or to order forms and publications. Wwwhrblock com TeleTax topics. Wwwhrblock com Call 1-800-829-4477 to listen to pre-recorded messages covering various tax topics. Wwwhrblock com Refund information. Wwwhrblock com You can check the status of your refund on the new IRS phone app. Wwwhrblock com Download the free IRS2Go app by visiting the iTunes app store or the Android Marketplace. Wwwhrblock com IRS2Go is a new way to provide you with information and tools. Wwwhrblock com To check the status of your refund by phone, call 1-800-829-4477 (automated refund information 24 hours a day, 7 days a week). Wwwhrblock com Wait at least 72 hours after the IRS acknowledges receipt of your e-filed return, or 3 to 4 weeks after mailing a paper return. Wwwhrblock com If you filed Form 8379 with your return, wait 14 weeks (11 weeks if you filed electronically). Wwwhrblock com Have your 2011 tax return available so you can provide your social security number, your filing status, and the exact whole dollar amount of your refund. Wwwhrblock com If you check the status of your refund and are not given the date it will be issued, please wait until the next week before checking back. Wwwhrblock com Other refund information. Wwwhrblock com To check the status of a prior-year refund or amended return refund, call 1-800-829-1040. Wwwhrblock com Evaluating the quality of our telephone services. Wwwhrblock com To ensure IRS representatives give accurate, courteous, and professional answers, we use several methods to evaluate the quality of our telephone services. Wwwhrblock com One method is for a second IRS representative to listen in on or record random telephone calls. Wwwhrblock com Another is to ask some callers to complete a short survey at the end of the call. Wwwhrblock com Walk-in. Wwwhrblock com Many products and services are available on a walk-in basis. Wwwhrblock com   Products. Wwwhrblock com You can walk in to many post offices, libraries, and IRS offices to pick up certain forms, instructions, and publications. Wwwhrblock com Some IRS offices, libraries, grocery stores, copy centers, city and county government offices, credit unions, and office supply stores have a collection of products available to print from a CD or photocopy from reproducible proofs. Wwwhrblock com Also, some IRS offices and libraries have the Internal Revenue Code, regulations, Internal Revenue Bulletins, and Cumulative Bulletins available for research purposes. Wwwhrblock com Services. Wwwhrblock com You can walk in to your local Taxpayer Assistance Center every business day for personal, face-to-face tax help. Wwwhrblock com An employee can explain IRS letters, request adjustments to your tax account, or help you set up a payment plan. Wwwhrblock com If you need to resolve a tax problem, have questions about how the tax law applies to your individual tax return, or you are more comfortable talking with someone in person, visit your local Taxpayer Assistance Center where you can spread out your records and talk with an IRS representative face-to-face. Wwwhrblock com No appointment is necessary—just walk in. Wwwhrblock com If you prefer, you can call your local Center and leave a message requesting an appointment to resolve a tax account issue. Wwwhrblock com A representative will call you back within 2 business days to schedule an in-person appointment at your convenience. Wwwhrblock com If you have an ongoing, complex tax account problem or a special need, such as a disability, an appointment can be requested. Wwwhrblock com All other issues will be handled without an appointment. Wwwhrblock com To find the number of your local office, go to www. Wwwhrblock com irs. Wwwhrblock com gov/localcontacts or look in the phone book under United States Government, Internal Revenue Service. Wwwhrblock com Mail. Wwwhrblock com You can send your order for forms, instructions, and publications to the address below. Wwwhrblock com You should receive a response within 10 days after your request is received. Wwwhrblock com  Internal Revenue Service 1201 N. Wwwhrblock com Mitsubishi Motorway Bloomington, IL 61705-6613 Taxpayer Advocate Service. Wwwhrblock com   The Taxpayer Advocate Service (TAS) is your voice at the IRS. Wwwhrblock com Our job is to ensure that every taxpayer is treated fairly, and that you know and understand your rights. Wwwhrblock com We offer free help to guide you through the often-confusing process of resolving tax problems that you haven’t been able to solve on your own. Wwwhrblock com Remember, the worst thing you can do is nothing at all. Wwwhrblock com   TAS can help if you can’t resolve your problem with the IRS and: Your problem is causing financial difficulties for you, your family, or your business. Wwwhrblock com You face (or your business is facing) an immediate threat of adverse action. Wwwhrblock com You have tried repeatedly to contact the IRS but no one has responded, or the IRS has not responded to you by the date promised. Wwwhrblock com   If you qualify for our help, we’ll do everything we can to get your problem resolved. Wwwhrblock com You will be assigned to one advocate who will be with you at every turn. Wwwhrblock com We have offices in every state, the District of Columbia, and Puerto Rico. Wwwhrblock com Although TAS is independent within the IRS, our advocates know how to work with the IRS to get your problems resolved. Wwwhrblock com And our services are always free. Wwwhrblock com   As a taxpayer, you have rights that the IRS must abide by in its dealings with you. Wwwhrblock com Our tax toolkit at www. Wwwhrblock com TaxpayerAdvocate. Wwwhrblock com irs. Wwwhrblock com gov can help you understand these rights. Wwwhrblock com   If you think TAS might be able to help you, call your local advocate, whose number is in your phone book and on our website at www. Wwwhrblock com irs. Wwwhrblock com gov/advocate. Wwwhrblock com You can also call our toll-free number at 1-877-777-4778. Wwwhrblock com   TAS also handles large-scale or systemic problems that affect many taxpayers. Wwwhrblock com If you know of one of these broad issues, please report it to us through our Systemic Advocacy Management System at www. Wwwhrblock com irs. Wwwhrblock com gov/advocate. Wwwhrblock com Low Income Taxpayer Clinics (LITCs). Wwwhrblock com   Low Income Taxpayer Clinics (LITCs) are independent from the IRS. Wwwhrblock com Some clinics serve individuals whose income is below a certain level and who need to resolve a tax problem. Wwwhrblock com These clinics provide professional representation before the IRS or in court on audits, appeals, tax collection disputes, and other issues for free or for a small fee. Wwwhrblock com Some clinics can provide information about taxpayer rights and responsibilities in many different languages for individuals who speak English as a second language. Wwwhrblock com For more information and to find a clinic near you, see the LITC page on www. Wwwhrblock com irs. Wwwhrblock com gov/advocate or IRS Publication 4134, Low Income Taxpayer Clinic List. Wwwhrblock com This publication is also available by calling 1-800-829-3676 or at your local IRS office. Wwwhrblock com Free tax services. Wwwhrblock com   Publication 910, IRS Guide to Free Tax Services, is your guide to IRS services and resources. Wwwhrblock com Learn about free tax information from the IRS, including publications, services, and education and assistance programs. Wwwhrblock com The publication also has an index of over 100 TeleTax topics (recorded tax information) you can listen to on the telephone. Wwwhrblock com The majority of the information and services listed in this publication are available to you free of charge. Wwwhrblock com If there is a fee associated with a resource or service, it is listed in the publication. Wwwhrblock com   Accessible versions of IRS published products are available on request in a variety of alternative formats for people with disabilities. Wwwhrblock com DVD for tax products. Wwwhrblock com You can order Publication 1796, IRS Tax Products DVD, and obtain: Current-year forms, instructions, and publications. Wwwhrblock com Prior-year forms, instructions, and publications. Wwwhrblock com Tax Map: an electronic research tool and finding aid. Wwwhrblock com Tax law frequently asked questions. Wwwhrblock com Tax Topics from the IRS telephone response system. Wwwhrblock com Internal Revenue Code—Title 26 of the U. Wwwhrblock com S. Wwwhrblock com Code. Wwwhrblock com Links to other Internet based Tax Research Materials. Wwwhrblock com Fill-in, print, and save features for most tax forms. Wwwhrblock com Internal Revenue Bulletins. Wwwhrblock com Toll-free and email technical support. Wwwhrblock com Two releases during the year. Wwwhrblock com  – The first release will ship the beginning of January. Wwwhrblock com  – The final release will ship the beginning of March. Wwwhrblock com Purchase the DVD from National Technical Information Service (NTIS) at www. Wwwhrblock com irs. Wwwhrblock com gov/cdorders for $30 (no handling fee) or call 1-877-233-6767 toll free to buy the DVD for $30 (plus a $6 handling fee). Wwwhrblock com This image is too large to be displayed in the current screen. Wwwhrblock com Please click the link to view the image. Wwwhrblock com Fill-in Form 8300 Prev  Up  Next   Home   More Online Publications