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1040ez Instructions

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1040ez Instructions

1040ez instructions 2. 1040ez instructions   Tax Shelters and Other Reportable Transactions Table of Contents Introduction Topics - This chapter discusses: Useful Items - You may want to see: Abusive Tax SheltersRules To Curb Abusive Tax Shelters Investor Reporting Penalties Whether To Invest Introduction Investments that yield tax benefits are sometimes called “tax shelters. 1040ez instructions ” In some cases, Congress has concluded that the loss of revenue is an acceptable side effect of special tax provisions designed to encourage taxpayers to make certain types of investments. 1040ez instructions In many cases, however, losses from tax shelters produce little or no benefit to society, or the tax benefits are exaggerated beyond those intended. 1040ez instructions Those cases are called “abusive tax shelters. 1040ez instructions ” An investment that is considered a tax shelter is subject to restrictions, including the requirement that it be disclosed, as discussed later. 1040ez instructions Topics - This chapter discusses: Abusive Tax Shelters , Rules To Curb Abusive Tax Shelters , Investor Reporting , Penalties , and Whether To Invest . 1040ez instructions Useful Items - You may want to see: Publication 538 Accounting Periods and Methods 556 Examination of Returns, Appeal Rights, and Claims for Refund 561 Determining the Value of Donated Property 925 Passive Activity and At-Risk Rules Form (and Instructions) 8275 Disclosure Statement 8275-R Regulation Disclosure Statement 8283 Noncash Charitable Contributions 8886 Reportable Transaction Disclosure Statement See chapter 5, How To Get Tax Help , for information about getting these publications and forms. 1040ez instructions Abusive Tax Shelters Abusive tax shelters are marketing schemes involving artificial transactions with little or no economic reality. 1040ez instructions They often make use of unrealistic allocations, inflated appraisals, losses in connection with nonrecourse loans, mismatching of income and deductions, financing techniques that do not conform to standard commercial business practices, or mischaracterization of the substance of the transaction. 1040ez instructions Despite appearances to the contrary, the taxpayer generally risks little. 1040ez instructions Abusive tax shelters commonly involve package deals designed from the start to generate losses, deductions, or credits that will be far more than present or future investment. 1040ez instructions Or, they may promise investors from the start that future inflated appraisals will enable them, for example, to reap charitable contribution deductions based on those appraisals. 1040ez instructions (But see the appraisal requirements discussed under Rules To Curb Abusive Tax Shelters , later. 1040ez instructions ) They are commonly marketed in terms of the ratio of tax deductions allegedly available to each dollar invested. 1040ez instructions This ratio (or “write-off”) is frequently said to be several times greater than one-to-one. 1040ez instructions Because there are many abusive tax shelters, it is not possible to list all the factors you should consider in determining whether an offering is an abusive tax shelter. 1040ez instructions However, you should ask the following questions, which might provide a clue to the abusive nature of the plan. 1040ez instructions Do the tax benefits far outweigh the economic benefits? Is this a transaction you would seriously consider, apart from the tax benefits, if you hoped to make a profit? Do shelter assets really exist and, if so, are they insured for less than their purchase price? Is there a nontax justification for the way profits and losses are allocated to partners? Do the facts and supporting documents make economic sense? In that connection, are there sales and resales of the tax shelter property at ever increasing prices? Does the investment plan involve a gimmick, device, or sham to hide the economic reality of the transaction? Does the promoter offer to backdate documents after the close of the year? Are you instructed to backdate checks covering your investment? Is your debt a real debt or are you assured by the promoter that you will never have to pay it? Does this transaction involve laundering United States source income through foreign corporations incorporated in a tax haven and owned by United States shareholders? Rules To Curb Abusive Tax Shelters Congress has enacted a series of income tax laws designed to halt the growth of abusive tax shelters. 1040ez instructions These provisions include the following. 1040ez instructions Disclosure of reportable transactions. 1040ez instructions   You must disclose information for each reportable transaction in which you participate. 1040ez instructions See Reportable Transaction Disclosure Statement , later. 1040ez instructions   Material advisors with respect to any reportable transaction must disclose information about the transaction on Form 8918, Material Advisor Disclosure Statement. 1040ez instructions To determine whether you are a material advisor to a transaction, see the Instructions for Form 8918. 1040ez instructions   Material advisors will receive a reportable transaction number for the disclosed reportable transaction. 1040ez instructions They must provide this number to all persons to whom they acted as a material advisor. 1040ez instructions They must provide the number at the time the transaction is entered into. 1040ez instructions If they do not have the number at that time, they must provide it within 60 days from the date the number is mailed to them. 1040ez instructions For information on penalties for failure to disclose and failure to maintain lists, see Internal Revenue Code sections 6707, 6707A, and 6708. 1040ez instructions Requirement to maintain list. 1040ez instructions   Material advisors must maintain a list of persons to whom they provide material aid, assistance, or advice on any reportable transaction. 1040ez instructions The list must be available for inspection by the IRS, and the information required to be included on the list generally must be kept for 7 years. 1040ez instructions See Regulations section 301. 1040ez instructions 6112-1 for more information (including what information is required to be included on the list). 1040ez instructions Confidentiality privilege. 1040ez instructions   The confidentiality privilege between you and a federally authorized tax practitioner does not apply to written communications made after October 21, 2004, regarding the promotion of your direct or indirect participation in any tax shelter. 1040ez instructions Appraisal requirement for donated property. 1040ez instructions   If you claim a deduction of more than $5,000 for an item or group of similar items of donated property, you generally must get a qualified appraisal from a qualified appraiser and complete and attach section B of Form 8283 to your return. 1040ez instructions If you claim a deduction of more than $500,000 for the donated property, you generally must attach the qualified appraisal to your return. 1040ez instructions If you file electronically, see Form 8453, U. 1040ez instructions S. 1040ez instructions Individual Income Tax Transmittal for an IRS e-file Return, and its instructions. 1040ez instructions For more information about appraisals, including exceptions, see Publication 561. 1040ez instructions Passive activity loss and credit limits. 1040ez instructions   The passive activity loss and credit rules limit the amount of losses and credits that can be claimed from passive activities and limit the amount that can offset nonpassive income, such as certain portfolio income from investments. 1040ez instructions For more detailed information about determining and reporting income, losses, and credits from passive activities, see Publication 925. 1040ez instructions Interest on penalties. 1040ez instructions   If you are assessed an accuracy-related or civil fraud penalty (as discussed under Penalties , later), interest will be imposed on the amount of the penalty from the due date of the return (including any extensions) to the date you pay the penalty. 1040ez instructions Accounting method restriction. 1040ez instructions   Tax shelters generally cannot use the cash method of accounting. 1040ez instructions Uniform capitalization rules. 1040ez instructions   The uniform capitalization rules generally apply to producing property or acquiring it for resale. 1040ez instructions Under those rules, the direct cost and part of the indirect cost of the property must be capitalized or included in inventory. 1040ez instructions For more information, see Publication 538. 1040ez instructions Denial of deduction for interest on an underpayment due to a reportable transaction. 1040ez instructions   You cannot deduct any interest you paid or accrued on any part of an underpayment of tax due to an understatement arising from a reportable transaction (discussed later) if the relevant facts affecting the tax treatment of the item are not adequately disclosed. 1040ez instructions This rule applies to reportable transactions entered into in tax years beginning after October 22, 2004. 1040ez instructions Authority for Disallowance of Tax Benefits The IRS has published guidance concluding that the claimed tax benefits of various abusive tax shelters should be disallowed. 1040ez instructions The guidance is the conclusion of the IRS on how the law is applied to a particular set of facts. 1040ez instructions Guidance is published in the Internal Revenue Bulletin for taxpayers' information and also for use by IRS officials. 1040ez instructions So, if your return is examined and an abusive tax shelter is identified and challenged, published guidance dealing with that type of shelter, which disallows certain claimed tax shelter benefits, could serve as the basis for the examining official's challenge of the tax benefits you claimed. 1040ez instructions In such a case, the examiner will not compromise even if you or your representative believes you have authority for the positions taken on your tax return. 1040ez instructions The courts have generally been unsympathetic to taxpayers involved in abusive tax shelter schemes and have ruled in favor of the IRS in the majority of the cases in which these shelters have been challenged. 1040ez instructions Investor Reporting You may be required to file a reportable transaction disclosure statement. 1040ez instructions Reportable Transaction Disclosure Statement Use Form 8886 to disclose information for each reportable transaction (discussed later) in which you participated. 1040ez instructions Generally, you must attach Form 8886 to your return for each tax year in which you participated in the transaction. 1040ez instructions Under certain circumstances, a transaction must be disclosed within 90 days of the transaction being identified as a listed transaction or a transaction of interest (discussed later). 1040ez instructions In addition, for the first year Form 8886 is attached to your return, you must send a copy of the form to: Internal Revenue Service OTSA Mail Stop 4915 1973 North Rulon White Blvd. 1040ez instructions  Ogden, UT 84404 If you file your return electronically, the copy sent to OTSA must show exactly the same information, word for word, provided with the electronically filed return and it must be provided on the official IRS Form 8886 or an exact copy of the form. 1040ez instructions If you use a computer-generated or substitute Form 8886, it must be an exact copy of the official IRS form. 1040ez instructions If you fail to file Form 8886 as required or fail to include any required information on the form, you may have to pay a penalty. 1040ez instructions See Penalty for failure to disclose a reportable transaction , later under Penalties. 1040ez instructions The following discussion briefly describes reportable transactions. 1040ez instructions For more details, see the Instructions for Form 8886. 1040ez instructions Reportable transaction. 1040ez instructions   A reportable transaction is any of the following. 1040ez instructions A listed transaction. 1040ez instructions A confidential transaction. 1040ez instructions A transaction with contractual protection. 1040ez instructions A loss transaction. 1040ez instructions A transaction of interest entered into after November 1, 2006. 1040ez instructions Note. 1040ez instructions Transactions with a brief asset holding period were removed from the definition of reportable transaction for transactions entered into after August 2, 2007. 1040ez instructions Listed transaction. 1040ez instructions   A listed transaction is the same as, or substantially similar to, one of the types of transactions the IRS has determined to be a tax-avoidance transaction. 1040ez instructions These transactions have been identified in notices, regulations, and other published guidance issued by the IRS. 1040ez instructions For a list of existing guidance, see Notice 2009-59 in Internal Revenue Bulletin 2009-31, available at www. 1040ez instructions irs. 1040ez instructions gov/irb/2009-31_IRB/ar07. 1040ez instructions html. 1040ez instructions Confidential transaction. 1040ez instructions   A confidential transaction is offered to you under conditions of confidentiality and for which you have paid an advisor a minimum fee. 1040ez instructions A transaction is offered under conditions of confidentiality if the advisor who is paid the fee places a limit on your disclosure of the tax treatment or tax structure of the transaction and the limit protects the confidentiality of the advisor's tax strategies. 1040ez instructions The transaction is treated as confidential even if the conditions of confidentiality are not legally binding on you. 1040ez instructions Transaction with contractual protection. 1040ez instructions   Generally, a transaction with contractual protection is one in which you or a related party has the right to a full or partial refund of fees if all or part of the intended tax consequences of the transaction are not sustained, or a transaction for which the fees are contingent on your realizing the tax benefits from the transaction. 1040ez instructions For information on exceptions, see Revenue Procedure 2007-20 in Internal Revenue Bulletin 2007-7, available at www. 1040ez instructions irs. 1040ez instructions gov/irb/2007-07_IRB/ar15. 1040ez instructions html. 1040ez instructions Loss transaction. 1040ez instructions   For individuals, a loss transaction is one that results in a deductible loss if the gross amount of the loss is at least $2 million in a single tax year or $4 million in any combination of tax years. 1040ez instructions A loss from a foreign currency transaction under Internal Revenue Code section 988 is a loss transaction if the gross amount of the loss is at least $50,000 in a single tax year, whether or not the loss flows through from an S corporation or partnership. 1040ez instructions   Certain losses (such as losses from casualties, thefts, and condemnations) are excepted from this category and do not have to be reported on Form 8886. 1040ez instructions For information on other exceptions, see Revenue Procedure 2004-66 in Internal Revenue Bulletin 2004-50, as modified and superseded by Revenue Procedure 2013-11, (or future published guidance) available at www. 1040ez instructions irs. 1040ez instructions gov/irb/2004-50_IRB/ar11. 1040ez instructions html. 1040ez instructions Transaction of interest. 1040ez instructions   A transaction of interest is a transaction entered into after November 1, 2006, that is the same as, or substantially similar to, one of the types of transactions that the IRS has identified by notice, regulation, or other form of published guidance as a transaction of interest. 1040ez instructions The IRS has identified the following transactions of interest. 1040ez instructions “Toggling” grantor trusts as described in Notice 2007-73, 2007-36 I. 1040ez instructions R. 1040ez instructions B. 1040ez instructions 545, available at www. 1040ez instructions irs. 1040ez instructions gov/irb/2007-36_IRB/ar20. 1040ez instructions html. 1040ez instructions Certain transactions involving contributions of a successor member interest in a limited liability company as described in Notice 2007-72, 2007-36 I. 1040ez instructions R. 1040ez instructions B. 1040ez instructions 544, available at www. 1040ez instructions irs. 1040ez instructions gov/irb/2007-36_IRB/ar19. 1040ez instructions html. 1040ez instructions Certain transactions involving the sale or other disposition of all interests in a charitable remainder trust and claiming little or no taxable gain as described in Notice 2008-99, 2008-47 I. 1040ez instructions R. 1040ez instructions B. 1040ez instructions 1194, available at www. 1040ez instructions irs. 1040ez instructions gov/irb/2008-47_IRB/ar11. 1040ez instructions html. 1040ez instructions Certain transactions involving a U. 1040ez instructions S. 1040ez instructions taxpayer owning controlled foreign corporations (CFCs) that hold stock of a lower-tier CFC through a domestic partnership to avoid reporting income as described in Notice 2009-7, 2009-3 I. 1040ez instructions R. 1040ez instructions B. 1040ez instructions 312, available at www. 1040ez instructions irs. 1040ez instructions gov/irb/2009-03_IRB/ar10. 1040ez instructions html. 1040ez instructions   For updates to this list, go to www. 1040ez instructions irs. 1040ez instructions gov/Businesses/Corporations/Abusive-Tax-Shelters-and-Transactions. 1040ez instructions Penalties Investing in an abusive tax shelter may lead to substantial expenses. 1040ez instructions First, the promoter generally charges a substantial fee. 1040ez instructions If your return is examined by the IRS and a tax deficiency is determined, you will be faced with payment of more tax, interest on the underpayment, possibly a 20%, 30%, or even 40% accuracy-related penalty, or a 75% civil fraud penalty. 1040ez instructions You may also be subject to the penalty for failure to pay tax. 1040ez instructions These penalties are explained in the following paragraphs. 1040ez instructions Accuracy-related penalties. 1040ez instructions   An accuracy-related penalty of 20% can be imposed for underpayments of tax due to: Negligence or disregard of rules or regulations, Substantial understatement of tax, Substantial valuation misstatement (increased to 40% for gross valuation misstatement), Transaction lacking economic substance (increased to 40% for undisclosed transaction lacking economic substance), or Undisclosed foreign financial asset understatement (40% in all cases). 1040ez instructions Except for a transaction lacking economic substance, this penalty will not be imposed if you can show you had reasonable cause for any understatement of tax and that you acted in good faith. 1040ez instructions Your failure to disclose a reportable transaction is a strong indication that you failed to act in good faith. 1040ez instructions   If you are charged an accuracy-related penalty, interest will be imposed on the amount of the penalty from the due date of the return (including extensions) to the date you pay the penalty. 1040ez instructions   The 20% penalties do not apply to any underpayment attributable to a reportable transaction understatement subject to an accuracy-related penalty (discussed later). 1040ez instructions Negligence or disregard of rules or regulations. 1040ez instructions   The penalty for negligence or disregard of rules or regulations is imposed only on the part of the underpayment due to negligence or disregard of rules or regulations. 1040ez instructions The penalty will not be charged if you can show you had reasonable cause for understating your tax and that you acted in good faith. 1040ez instructions    Negligence includes any failure to make a reasonable attempt to comply with the provisions of the Internal Revenue Code. 1040ez instructions It also includes any failure to keep adequate books and records. 1040ez instructions A return position that has a reasonable basis is not negligence. 1040ez instructions   Disregard includes any careless, reckless, or intentional disregard of rules or regulations. 1040ez instructions   The penalty for disregard of rules and regulations can be avoided if all the following are true. 1040ez instructions You keep adequate books and records. 1040ez instructions You have a reasonable basis for your position on the tax issue. 1040ez instructions You make an adequate disclosure of your position. 1040ez instructions Use Form 8275 to make your disclosure and attach it to your return. 1040ez instructions To disclose a position contrary to a regulation, use Form 8275-R. 1040ez instructions Use Form 8886 to disclose a reportable transaction (discussed earlier). 1040ez instructions Substantial understatement of tax. 1040ez instructions   An understatement is considered to be substantial if it is more than the greater of: 10% of the tax required to be shown on the return, or $5,000. 1040ez instructions An “understatement” is the amount of tax required to be shown on your return for a tax year minus the amount of tax shown on the return, reduced by any rebates. 1040ez instructions The term “rebate” generally means a decrease in the tax shown on your original return as the result of your filing an amended return or claim for refund. 1040ez instructions   For items other than tax shelters, you can file Form 8275 or Form 8275-R to disclose items that could cause a substantial understatement of income tax. 1040ez instructions In that way, you can avoid the substantial understatement penalty if you have a reasonable basis for your position on the tax issue. 1040ez instructions Disclosure of the tax shelter item on a tax return does not reduce the amount of the understatement. 1040ez instructions   Also, the understatement penalty will not be imposed if you can show there was reasonable cause for the underpayment caused by the understatement and that you acted in good faith. 1040ez instructions An important factor in establishing reasonable cause and good faith will be the extent of your effort to determine your proper tax liability under the law. 1040ez instructions Substantial valuation misstatement. 1040ez instructions   In general, you are liable for a 20% penalty for a substantial valuation misstatement if all the following are true. 1040ez instructions The value or adjusted basis of any property claimed on the return is 150% or more of the correct amount. 1040ez instructions You underpaid your tax by more than $5,000 because of the misstatement. 1040ez instructions You cannot establish that you had reasonable cause for the underpayment and that you acted in good faith. 1040ez instructions   You may be assessed a penalty of 40% for a gross valuation misstatement. 1040ez instructions If you misstate the value or the adjusted basis of property by 200% or more of the amount determined to be correct, you will be assessed a penalty of 40%, instead of 20%, of the amount you underpaid because of the gross valuation misstatement. 1040ez instructions The penalty rate is also 40% if the property's correct value or adjusted basis is zero. 1040ez instructions Transaction lacking economic substance. 1040ez instructions   The economic substance doctrine only applies to an individual that entered into a transaction in connection with a trade or business or an activity engaged in for the production of income. 1040ez instructions For transactions entered into after March 30, 2010, a transaction has economic substance for you as an individual taxpayer only if: The transaction changes your economic position in a meaningful way (apart from federal income tax effects), or You have a substantial purpose (apart from federal income tax effects) for entering into the transaction. 1040ez instructions   For purposes of determining whether economic substance exists, a transaction's profit potential will only be taken into account if the present value of the reasonably expected pre-tax profit from the transaction is substantial compared to the present value of the expected net tax benefits that would be allowed if the transaction were respected. 1040ez instructions   If any part of your underpayment is due to any disallowance of claimed tax benefits by reason of a transaction lacking economic substance or failing to meet the requirements of any similar rule of law, that part of your underpayment will be subject to the 20% accuracy-related penalty even if you had a reasonable cause and acted in good faith concerning that part. 1040ez instructions   Additionally, the penalty increases to 40% if you do not adequately disclose on your return or in a statement attached to your return the relevant facts affecting the tax treatment of a transaction that lacks economic substance. 1040ez instructions Relevant facts include any facts affecting the tax treatment of the transaction. 1040ez instructions    Any excessive amount of an erroneous claim for an income tax refund or credit (other than a refund or credit related to the earned income credit) that results from a transaction found to be lacking economic substance will not be treated as having a reasonable basis and could be subject to a 20% penalty. 1040ez instructions Undisclosed foreign financial asset understatement. 1040ez instructions   For tax years beginning after March 18, 2010, you may be liable for a 40% penalty for an understatement of your tax liability due to an undisclosed foreign financial asset. 1040ez instructions An undisclosed foreign financial asset is any asset for which an information return, required to be provided under Internal Revenue Code section 6038, 6038B, 6038D, 6046A, or 6048 for any taxable year, is not provided. 1040ez instructions The penalty applies to any part of an underpayment related to the following undisclosed foreign financial assets. 1040ez instructions Any foreign business you control, reportable on Form 5471, Information Return of U. 1040ez instructions S. 1040ez instructions Persons With Respect To Certain Foreign Corporations, or Form 8865, Return of U. 1040ez instructions S. 1040ez instructions Persons With Respect to Certain Foreign Partnerships. 1040ez instructions Certain transfers of property to a foreign corporation or partnership, reportable on Form 926, Return by a U. 1040ez instructions S. 1040ez instructions Transferor of Property to a Foreign Corporation, or certain distributions to a foreign person, reportable on Form 8865. 1040ez instructions Your ownership interest in certain foreign financial assets, temporarily reportable on Form 8275 or 8275-R. 1040ez instructions    Instead of, or in addition to, Form 8275 or 8275-R, you may have to file Form 8938, Statement of Specified Foreign Financial Assets, with your tax return. 1040ez instructions See the Instructions for Form 8938 for details. 1040ez instructions    Your acquisition, disposition, or substantial change in ownership interest in a foreign partnership, reportable on Form 8865. 1040ez instructions Creation or transfer of money or property to certain foreign trusts, reportable on Form 3520, Annual Return To Report Transactions With Foreign Trusts and Receipt of Certain Foreign Gifts. 1040ez instructions Penalty for incorrect appraisals. 1040ez instructions   The person who prepares an appraisal of the value of property may have to pay a penalty if: He or she knows, or reasonably should have known, that the appraisal would be used in connection with a return or claim for refund; and The claimed value of the property on a return or claim for refund based on that appraisal results in a substantial valuation misstatement or a gross valuation misstatement as discussed earlier. 1040ez instructions For details on the penalty amount and exceptions, see Publication 561. 1040ez instructions Penalty for failure to disclose a reportable transaction. 1040ez instructions   If you fail to include any required information regarding a reportable transaction (discussed earlier) on a return or statement, you may have to pay a penalty of 75% of the decrease in tax shown on your return as a result of such transaction (or that would have resulted if the transaction were respected for federal tax purposes). 1040ez instructions For an individual, the minimum penalty is $5,000 and the maximum is $10,000 (or $100,000 for a listed transaction). 1040ez instructions This penalty is in addition to any other penalty that may be imposed. 1040ez instructions   The IRS may rescind or abate the penalty for failing to disclose a reportable transaction under certain limited circumstances but cannot rescind the penalty for failing to disclose a listed transaction. 1040ez instructions For information on rescission, see Revenue Procedure 2007-21 in Internal Revenue Bulletin 2007-9 available at www. 1040ez instructions irs. 1040ez instructions gov/irb/2007-09_IRB/ar12. 1040ez instructions html. 1040ez instructions Accuracy-related penalty for a reportable transaction understatement. 1040ez instructions   If you have a reportable transaction understatement, you may have to pay a penalty equal to 20% of the amount of that understatement. 1040ez instructions This applies to any item due to a listed transaction or other reportable transaction with a significant purpose of avoiding or evading federal income tax. 1040ez instructions The penalty is 30% rather than 20% for the part of any reportable transaction understatement if the transaction was not properly disclosed. 1040ez instructions You may not have to pay the 20% penalty if you meet the strengthened reasonable cause and good faith exception. 1040ez instructions The reasonable cause and good faith exception does not apply to any part of a reportable transaction understatement attributable to one or more transactions that lack economic substance. 1040ez instructions   This penalty does not apply to the part of an understatement on which the fraud penalty, gross valuation misstatement penalty, or penalty for nondisclosure of noneconomic substance transactions is imposed. 1040ez instructions Civil fraud penalty. 1040ez instructions   If any underpayment of tax on your return is due to fraud, a penalty of 75% of the underpayment will be added to your tax. 1040ez instructions Joint return. 1040ez instructions   The fraud penalty on a joint return applies to a spouse only if some part of the underpayment is due to the fraud of that spouse. 1040ez instructions Failure to pay tax. 1040ez instructions   If a deficiency is assessed and is not paid within 10 days of the demand for payment, an investor can be penalized with up to a 25% addition to tax if the failure to pay continues. 1040ez instructions Whether To Invest In light of the adverse tax consequences and the substantial amount of penalties and interest that will result if the claimed tax benefits are disallowed, you should consider tax shelter investments carefully and seek competent legal and financial advice. 1040ez instructions Prev  Up  Next   Home   More Online Publications
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Online Ordering for Information Returns and Employer Returns

Online Ordering for Information Returns and Employer Returns

 

Place your order below for information returns and employer products. Your request for products for 2014 will be held until they become available. Please do not reorder these products as they will be automatically shipped and may arrive in multiple shipments.

Specify the quantity needed, by tax year, in the corresponding fill-in space. Quantities are limited to 1,000 each for forms and 25 each for instructions and publications. One copy of the corresponding instruction is automatically included with your order. Some employer forms are printed 2 or 3 to a sheet; order the number of forms needed, not the number of sheets.

File Forms W-2/W-2c and W-3/W-3c electronically by visiting the Social Security Administration's Employer Reporting Instructions and Information website to create and file electronic "fill-in" versions of Forms W-2 and W-3.

Caution: Forms W-2, W-3, 1096, 1097, 1098, 1099, and 5498 Series are non-continuous feed, carbonless, non-laser forms.

Information Returns

Tax Year 2013
Quantity
Tax Year 2014
Quantity
Product Title
Form W-2 Wage and Tax Statement
Form W-3 Transmittal of Wage and Tax Statements
Instruction W-2 & W-3 General Instructions for Forms W-2 and W-3
Form W-2AS American Samoa Wage and Tax Statement
Form W-2G Certain Gambling Winnings
Instruction W-2G & 5754 Instructions for Forms W-2G and 5754
Form W-2GU Guam Wage and Tax Statement
Form W-2VI U.S. Virgin Islands Wage and Tax Statement
Form W-3SS Transmittal of Wage and Tax Statements
Form 1096 Annual Summary and Transmittal of U.S. Information Returns
Form 1097-BTC Bond Tax Credit
Instruction 1097-BTC Instructions for Form 1097-BTC
Form 1098 Mortgage Interest Statement
Instruction 1098 Instructions for Form 1098
Form 1098-C Contributions of Motor Vehicles, Boats, and Airplanes
Instruction 1098-C Instructions for Form 1098-C
Form 1098-E Student Loan Interest Statement
Form 1098-MA Mortgage Assistance Payments
Form 1098-T Tuition Statement
Instruction 1098-E & 1098-T Instructions for Forms 1098-E and 1098-T
Instruction 1099-GENERAL General Instructions for Certain Information Returns (Forms 1097, 1098, 1099, 3921, 3922, 5498, and W-2G)
Form 1099-A Acquisition or Abandonment of Secured Property
Instruction 1099-A & C Instructions for Forms 1099-A and 1099-C
Form 1099-B Proceeds from Broker and Barter Exchange Transactions
Instruction 1099-B Instructions for Form 1099-B
Form 1099-C Cancellation of Debt
Form 1099-CAP Changes in Corporate Control and Capital Structure
Instruction 1099-CAP Instructions for Form 1099-CAP
Form 1099-DIV Dividends and Distributions
Instruction 1099-DIV Instructions for Form 1099-DIV
Form 1099-G Certain Government Payments
Instruction 1099-G Instructions for Form 1099-G
Form 1099-INT Interest Income
Instruction 1099-INT & OID Instructions for Forms 1099-INT and 1099-OID
Form 1099-K Payment Card and Third Party Network Transactions
Instruction 1099-K Instructions for Form 1099-K
Form 1099-LTC Long Term Care and Accelerated Death Benefits
Instruction 1099-LTC Instructions for Form 1099-LTC
Form 1099-MISC Miscellaneous Income
Instruction 1099-MISC Instructions for Form 1099-MISC
Form 1099-OID Original Issue Discount
Form 1099-PATR Taxable Distributions Received From Cooperatives
Instruction 1099-PATR Instructions for Form 1099-PATR
Form 1099-Q Payments From Qualified Education Programs (Under Sections 529 and 530)
Instruction 1099-Q Instructions for Form 1099-Q
Form 1099-R Distributions from Pensions, Annuities, Retirement or Profit-Sharing Plans, IRAs, Insurance Contracts, etc.
Instruction 1099-R & 5498 Instructions for Forms 1099-R and 5498
Form 1099-S Proceeds from Real Estate Transactions
Instruction 1099-S Instructions for Form 1099-S
Form 1099-SA Distributions from an HSA, Archer MSA, or Medicare Advantage MSA
Instruction 1099-SA & 5498-SA Instructions for Forms 1099-SA and 5498-SA
Form 5498 IRA Contribution Information
Form 5498-ESA Coverdell ESA Contribution Information
Instruction 5498-ESA Instructions for Form 5498 ESA
Form 5498-SA HSA, Archer MSA, or Medicare Advantage MSA Information

 

Employer Products

Quantity Product Title
Form W-2c Corrected Wage and Tax Statement
Form W-3c Transmittal of Corrected Wage and Tax Statements
Form W-4 Employee's Withholding Allowance Certificate
Form W-4P Withholding Certificate for Pension or Annuity Payments
Form W-4S Request for Federal Income Tax Withholding From Sick Pay
Form W-4(SP) Employee's Withholding Allowance Certificate (Spanish version)
Form W-4V Voluntary Withholding Request
Form 940 Employer's Annual Federal Unemployment (FUTA) Tax Return
Instruction 940 Instructions for Form 940
Form 940 Sch A Multi-State Employer and Credit Reduction Information
Form 941 Employer's QUARTERLY Federal Tax Return
Instruction 941 Instructions for Form 941
Form 941 Sch B Report of Tax Liability for Semiweekly Schedule Depositors
Instruction 941 Sch B Instructions for Schedule B (Form 941)
Form 941 Sch D Report of Discrepancies Caused by Acquisitions, Statutory Mergers, or Consolidations
Instruction 941 Sch D Instructions for Schedule D (Form 941)
Form 941 Sch R Allocation Schedule for Aggregate Form 941 Filers
Form 941-SS Employer's QUARTERLY Federal Tax Return (American Samoa, Guam, the Commonwealth of the Northern Mariana Islands, and the U.S. Virgin Islands)
Instruction 941-SS Instructions for Form 941-SS
Form 941-X Adjusted Employer's QUARTERLY Federal Tax Return or Claim for Refund
Instruction 941-X Instructions for Form 941-X
Form 943 Employer's Annual Federal Tax Return for Agricultural Employees
Instruction 943 Instructions for Form 943
Form 943-A Agricultural Employer's Record of Federal Tax Liability
Form 943-X Adjusted Employer's Annual Federal Tax Return for Agricultural Employees or Claim for Refund
Instruction 943-X Instructions for Form 943-X
Form 944 Employer's ANNUAL Federal Tax Return
Instruction 944 Instructions for Form 944
Form 944-X Adjusted Employer's ANNUAL Federal Tax Return or Claim for Refund
Instruction 944-X Instructions for Form 944-X
Form 945 Annual Return of Withheld Federal Income Tax
Instruction 945 Instructions for Form 945
Form 945-A Annual Record of Federal Tax Liability
Form 945-X Adjusted Annual Return of Withheld Federal Income Tax or Claim for Refund
Instruction 945-X Instructions for Form 945-X
Form 3921 Exercise of an Incentive Stock Option Under Section 422(b)
Form 3922 Transfer of Stock Acquired Through An Employee Stock Purchase Plan Under Section 423(c)
Instruction 3921 & 3922 Instructions for Forms 3921 and 3922
Form 5754 Statement by Person(s) Receiving Gambling Winnings
Publication 15 (Circular E), Employer's Tax Guide
Publication 15-A Employer's Supplemental Tax Guide
Publication 15-B Employer's Tax Guide to Fringe Benefits
Publication 51 (Circular A), Agricultural Employer's Tax Guide
Publication 80 (Circular SS), Federal Tax Guide for Employers in the U.S. Virgin Islands, Guam, American Samoa, and the Commonwealth of the Northern Mariana Islands
Publication 1244 Employee's Daily Record of Tips and Report to Employer
Publication 1494 Tables for Figuring Amount Exempt from Levy on Wages, Salary, and Other Income (Forms 668-W(ACS), 668-W(c)(DO) and 668-W(ICS))

Page Last Reviewed or Updated: 23-Jan-2014

The 1040ez Instructions

1040ez instructions 33. 1040ez instructions   Credit for the Elderly or the Disabled Table of Contents Introduction Useful Items - You may want to see: Are You Eligible for the Credit?Qualified Individual Income Limits How to Claim the CreditCredit Figured for You Credit Figured by You Introduction If you qualify, you may be able to reduce the tax you owe by taking the credit for the elderly or the disabled which is figured on Schedule R (Form 1040A or 1040). 1040ez instructions This chapter explains the following. 1040ez instructions Who qualifies for the credit for the elderly or the disabled. 1040ez instructions How to claim the credit. 1040ez instructions You may be able to take the credit for the elderly or the disabled if: You are age 65 or older at the end of 2013, or You retired on permanent and total disability and have taxable disability income. 1040ez instructions Useful Items - You may want to see: Publication 524 Credit for the Elderly or the Disabled 554 Tax Guide for Seniors Form (and Instruction) Schedule R (Form 1040A or 1040) Credit for the Elderly or the Disabled Are You Eligible for the Credit? You can take the credit for the elderly or the disabled if you meet both of the following requirements. 1040ez instructions You are a qualified individual. 1040ez instructions Your income is not more than certain limits. 1040ez instructions You can use Figure 33-A and Table 33-1 as guides to see if you are eligible for the credit. 1040ez instructions Use Figure 33-A first to see if you are a qualified individual. 1040ez instructions If you are, go to Table 33-1 to make sure your income is not too high to take the credit. 1040ez instructions You can take the credit only if you file Form 1040 or Form 1040A. 1040ez instructions You cannot take the credit if you file Form 1040EZ. 1040ez instructions Qualified Individual You are a qualified individual for this credit if you are a U. 1040ez instructions S. 1040ez instructions citizen or resident alien, and either of the following applies. 1040ez instructions You were age 65 or older at the end of 2013. 1040ez instructions You were under age 65 at the end of 2013 and all three of the following statements are true. 1040ez instructions You retired on permanent and total disability (explained later). 1040ez instructions You received taxable disability income for 2013. 1040ez instructions On January 1, 2013, you had not reached mandatory retirement age (defined later under Disability income ). 1040ez instructions Age 65. 1040ez instructions   You are considered to be age 65 on the day before your 65th birthday. 1040ez instructions Therefore, if you were born on January 1, 1949, you are considered to be age 65 at the end of 2013. 1040ez instructions U. 1040ez instructions S. 1040ez instructions Citizen or Resident Alien You must be a U. 1040ez instructions S. 1040ez instructions citizen or resident alien (or be treated as a resident alien) to take the credit. 1040ez instructions Generally, you cannot take the credit if you were a nonresident alien at any time during the tax year. 1040ez instructions Exceptions. 1040ez instructions   You may be able to take the credit if you are a nonresident alien who is married to a U. 1040ez instructions S. 1040ez instructions citizen or resident alien at the end of the tax year and you and your spouse choose to treat you as a U. 1040ez instructions S. 1040ez instructions resident alien. 1040ez instructions If you make that choice, both you and your spouse are taxed on your worldwide incomes. 1040ez instructions If you were a nonresident alien at the beginning of the year and a resident alien at the end of the year, and you were married to a U. 1040ez instructions S. 1040ez instructions citizen or resident alien at the end of the year, you may be able to choose to be treated as a U. 1040ez instructions S. 1040ez instructions resident alien for the entire year. 1040ez instructions In that case, you may be allowed to take the credit. 1040ez instructions For information on these choices, see chapter 1 of Publication 519, U. 1040ez instructions S. 1040ez instructions Tax Guide for Aliens. 1040ez instructions Married Persons Generally, if you are married at the end of the tax year, you and your spouse must file a joint return to take the credit. 1040ez instructions However, if you and your spouse did not live in the same household at any time during the tax year, you can file either a joint return or separate returns and still take the credit. 1040ez instructions Head of household. 1040ez instructions   You can file as head of household and qualify to take the credit, even if your spouse lived with you during the first 6 months of the year, if you meet certain tests. 1040ez instructions See Head of Household in chapter 2 for the tests you must meet. 1040ez instructions Under Age 65 If you are under age 65 at the end of 2013, you can qualify for the credit only if you are retired on permanent and total disability (discussed next) and have taxable disability income (discussed later under Disability income ). 1040ez instructions You are retired on permanent and total disability if: You were permanently and totally disabled when you retired, and You retired on disability before the close of the tax year. 1040ez instructions Even if you do not retire formally, you may be considered retired on disability when you have stopped working because of your disability. 1040ez instructions If you retired on disability before 1977, and were not permanently and totally disabled at the time, you can qualify for the credit if you were permanently and totally disabled on January 1, 1976, or January 1, 1977. 1040ez instructions Permanent and total disability. 1040ez instructions    You are permanently and totally disabled if you cannot engage in any substantial gainful activity because of your physical or mental condition. 1040ez instructions A qualified physician must certify that the condition has lasted or can be expected to last continuously for 12 months or more, or that the condition can be expected to result in death. 1040ez instructions See Physician's statement , later. 1040ez instructions Substantial gainful activity. 1040ez instructions   Substantial gainful activity is the performance of significant duties over a reasonable period of time while working for pay or profit, or in work generally done for pay or profit. 1040ez instructions Full-time work (or part-time work done at your employer's convenience) in a competitive work situation for at least the minimum wage conclusively shows that you are able to engage in substantial gainful activity. 1040ez instructions   Substantial gainful activity is not work you do to take care of yourself or your home. 1040ez instructions It is not unpaid work on hobbies, institutional therapy or training, school attendance, clubs, social programs, and similar activities. 1040ez instructions However, doing this kind of work may show that you are able to engage in substantial gainful activity. 1040ez instructions    The fact that you have not worked for some time is not, of itself, conclusive evidence that you cannot engage in substantial gainful activity. 1040ez instructions Sheltered employment. 1040ez instructions   Certain work offered at qualified locations to physically or mentally impaired persons is considered sheltered employment. 1040ez instructions These qualified locations are in sheltered workshops, hospitals, and similar institutions, homebound programs, and Department of Veterans Affairs (VA) sponsored homes. 1040ez instructions   Compared to commercial employment, pay is lower for sheltered employment. 1040ez instructions Therefore, one usually does not look for sheltered employment if he or she can get other employment. 1040ez instructions The fact that one has accepted sheltered employment is not proof of the person's ability to engage in substantial gainful activity. 1040ez instructions Physician's statement. 1040ez instructions   If you are under age 65, you must have your physician complete a statement certifying that you were permanently and totally disabled on the date you retired. 1040ez instructions You can use the statement in the Instructions for Schedule R. 1040ez instructions    Figure 33-A. 1040ez instructions Are You a Qualified Individual? This image is too large to be displayed in the current screen. 1040ez instructions Please click the link to view the image. 1040ez instructions Figure 33-A Are You a Qualified Individual?   You do not have to file this statement with your Form 1040 or Form 1040A, but you must keep it for your records. 1040ez instructions Veterans. 1040ez instructions   If the Department of Veterans Affairs (VA) certifies that you are permanently and totally disabled, you can substitute VA Form 21-0172, Certification of Permanent and Total Disability, for the physician's statement you are required to keep. 1040ez instructions VA Form 21-0172 must be signed by a person authorized by the VA to do so. 1040ez instructions You can get this form from your local VA regional office. 1040ez instructions Physician's statement obtained in earlier year. 1040ez instructions   If you got a physician's statement in an earlier year and, due to your continued disabled condition, you were unable to engage in any substantial gainful activity during 2013, you may not need to get another physician's statement for 2013. 1040ez instructions For a detailed explanation of the conditions you must meet, see the instructions for Schedule R, Part II. 1040ez instructions If you meet the required conditions, check the box on your Schedule R, Part II, line 2. 1040ez instructions   If you checked box 4, 5, or 6 in Part I of Schedule R, enter in the space above the box on line 2 in Part II the first name(s) of the spouse(s) for whom the box is checked. 1040ez instructions Table 33-1. 1040ez instructions Income Limits IF your filing status is . 1040ez instructions . 1040ez instructions . 1040ez instructions THEN, even if you qualify (see Figure 33-A ), you CANNOT take the credit if. 1040ez instructions . 1040ez instructions . 1040ez instructions   Your adjusted gross income (AGI)* is equal to or more than. 1040ez instructions . 1040ez instructions . 1040ez instructions     OR the total of your nontaxable social security and other nontaxable pension(s), annuities, or disability income is equal to or more than. 1040ez instructions . 1040ez instructions . 1040ez instructions   single, head of household, or qualifying widow(er) with dependent child   $17,500     $5,000   married filing jointly and only one spouse qualifies in Figure 33-A   $20,000     $5,000   married filing jointly and both spouses qualify in Figure 33-A   $25,000     $7,500   married filing separately and you lived apart from your spouse for all of 2013   $12,500     $3,750   * AGI is the amount on Form 1040A, line 22, or Form 1040, line 38. 1040ez instructions Disability income. 1040ez instructions   If you are under age 65, you must also have taxable disability income to qualify for the credit. 1040ez instructions Disability income must meet both of the following requirements. 1040ez instructions It must be paid under your employer's accident or health plan or pension plan. 1040ez instructions It must be included in your income as wages (or payments instead of wages) for the time you are absent from work because of permanent and total disability. 1040ez instructions Payments that are not disability income. 1040ez instructions   Any payment you receive from a plan that does not provide for disability retirement is not disability income. 1040ez instructions Any lump-sum payment for accrued annual leave that you receive when you retire on disability is a salary payment and is not disability income. 1040ez instructions   For purposes of the credit for the elderly or the disabled, disability income does not include amounts you receive after you reach mandatory retirement age. 1040ez instructions Mandatory retirement age is the age set by your employer at which you would have had to retire, had you not become disabled. 1040ez instructions Income Limits To determine if you can claim the credit, you must consider two income limits. 1040ez instructions The first limit is the amount of your adjusted gross income (AGI). 1040ez instructions The second limit is the amount of nontaxable social security and other nontaxable pensions, annuities, or disability income you received. 1040ez instructions The limits are shown in Table 33-1. 1040ez instructions If your AGI and nontaxable pensions, annuities, or disability income are less than the income limits, you may be able to claim the credit. 1040ez instructions See How to Claim the Credit , later. 1040ez instructions If either your AGI or your nontaxable pensions, annuities, or disability income are equal to or more than the income limits, you cannot take the credit. 1040ez instructions How to Claim the Credit You can figure the credit yourself or the Internal Revenue Service will figure it for you. 1040ez instructions Credit Figured for You If you choose to have the IRS figure the credit for you, read the following discussion for the form you will file (Form 1040 or 1040A). 1040ez instructions If you want the IRS to figure your tax, see chapter 30. 1040ez instructions Form 1040. 1040ez instructions   If you want the IRS to figure your credit, see Form 1040 Line Entries under Tax Figured by IRS in chapter 30. 1040ez instructions Form 1040A. 1040ez instructions   If you want the IRS to figure your credit, see Form 1040A Line Entries under Tax Figured by IRS in chapter 30. 1040ez instructions Credit Figured by You If you choose to figure the credit yourself, fill out the front of Schedule R. 1040ez instructions Next, fill out Schedule R, Part III. 1040ez instructions If you file Form 1040A, enter the amount from Schedule R, line 22, on Form 1040A, line 30. 1040ez instructions If you file Form 1040, include the amount from Schedule R, line 22, on line 53; check box c, and enter “Sch R” on the line next to that box. 1040ez instructions For a step-by-step discussion about filling out Part III of Schedule R, see Figuring the Credit Yourself in Publication 524. 1040ez instructions Limit on credit. 1040ez instructions   The amount of the credit you can claim is generally limited to the amount of your tax. 1040ez instructions Use the Credit Limit Worksheet in the Instructions for Schedule R to determine if your credit is limited. 1040ez instructions Prev  Up  Next   Home   More Online Publications