Filing Your Taxes Online is Fast, Easy and Secure.
Start now and receive your tax refund in as little as 7 days.

1. Get Answers

Your online questions are customized to your unique tax situation.

2. Maximize your Refund

Find tax credits for everything from school tuition to buying a hybri

3. E-File for FREE

E-file free with direct deposit to get your refund in as few as 7 days.

Filing your taxes with paper mail can be difficult and it could take weeks for your refund to arrive. IRS e-file is easy, fast and secure. There is no paperwork going to the IRS so tax refunds can be processed in as little as 7 days with direct deposit. As you prepare your taxes online, you can see your tax refund in real time.

FREE audit support and representation from an enrolled agent – NEW and only from H&R Block

Amend A Tax Return 2012

Turbotax 2011 Free Federal Edition1040ezformIrs Form 1040ez 2012Free Online Amended Tax ReturnOnline Turbotax 2011E File 2012Free Fillable FormsHow To Amend Tax ReturnI Need 2011 Tax SoftwareHow Do I Fill Out A 1040xAmended Tax Returns More:label_amended_20tax_20returns More:taxes2011 Form 1040File Taxes Online Free Federal And StateFree Online Federal Tax Filing 20112011 Amended Tax ReturnOnline TaxesEtaxFederal Tax Extension OnlineTurbotax 2007Income Tax Preparation SeniorsFree Online State Taxes2007 Tax Software Free DownloadIrs 2010 Tax Forms1040ez 2014 FormHow To File Taxes If Self EmployedTurbotax 1040x 2012Aarp Tax LocationsHow To File Amended Tax Return TurbotaxIrs 2012 1040 Tax FormsTurbotax Military Discount 2011Turbotax 2009 Download1040ez Form 2012Handrblock FreeTax Form 1040ez 2013Amend 1040x2011 Tax Return FormFile 2011 Taxes Online H&r Block2011 Form 1040ezFind State Tax FormsH&r Block Tax Free

Amend A Tax Return 2012

Amend a tax return 2012 Publication 509 - Main Content Table of Contents General Tax CalendarFirst Quarter Second Quarter Third Quarter Fourth Quarter Fiscal-Year Taxpayers Employer's Tax CalendarFirst Quarter Second Quarter Third Quarter Fourth Quarter Excise Tax CalendarFirst Quarter Second Quarter Third Quarter Fourth Quarter How To Get Tax Help General Tax Calendar This tax calendar has the due dates for 2014 that most taxpayers will need. Amend a tax return 2012 Employers and persons who pay excise taxes also should use the Employer's Tax Calendar and the Excise Tax Calendar . Amend a tax return 2012 Fiscal-year taxpayers. Amend a tax return 2012   If you file your income tax return for a fiscal year rather than the calendar year, you must change some of the dates in this calendar. Amend a tax return 2012 These changes are described under Fiscal-Year Taxpayers at the end of this calendar. Amend a tax return 2012 First Quarter The first quarter of a calendar year is made up of January, February, and March. Amend a tax return 2012 Second Quarter The second quarter of a calendar year is made up of April, May, and June. Amend a tax return 2012 Third Quarter The third quarter of a calendar year is made up of July, August, and September. Amend a tax return 2012 Fourth Quarter The fourth quarter of a calendar year is made up of October, November, and December. Amend a tax return 2012 Fiscal-Year Taxpayers If you use a fiscal year (rather than the calendar year) as your tax year, you should change some of the dates in this calendar. Amend a tax return 2012 Use the following general guidelines to make these changes. Amend a tax return 2012 The 3 months that make up each quarter of a fiscal year may be different from those of each calendar quarter, depending on when the fiscal year begins. Amend a tax return 2012 Also see Saturday, Sunday, or legal holiday, earlier. Amend a tax return 2012 Individuals Form 1040. Amend a tax return 2012    This form is due on the 15th day of the 4th month after the end of your tax year. Amend a tax return 2012 Form 4868 is used to request an extension of time to file Form 1040. Amend a tax return 2012 Estimated tax payments (Form 1040-ES). Amend a tax return 2012   Payments are due on the 15th day of the 4th, 6th, and 9th months of your tax year and on the 15th day of the 1st month after your tax year ends. Amend a tax return 2012 Partnerships Form 1065. Amend a tax return 2012   This form is due on the 15th day of the 4th month after the end of the partnership's tax year. Amend a tax return 2012 Provide each partner with a copy of Schedule K-1 (Form 1065) or a substitute Schedule K-1. Amend a tax return 2012 Form 1065-B (electing large partnerships). Amend a tax return 2012   This form is due on the 15th day of the 4th month after the end of the partnership's tax year. Amend a tax return 2012 Provide each partner with a copy of Schedule K-1 (Form 1065-B) or a substitute Schedule K-1 by the first March 15 following the close of the partnership's tax year. Amend a tax return 2012 Corporations and S Corporations Form 1120 and Form 1120S (or Form 7004). Amend a tax return 2012   These forms are due on the 15th day of the 3rd month after the end of the corporation's tax year. Amend a tax return 2012 S corporations must provide each shareholder with a copy of Schedule K-1 (Form 1120S) or a substitute Schedule K-1. Amend a tax return 2012 Form 7004 is used to request an extension of time to file Form 1120 or Form 1120S. Amend a tax return 2012 Estimated tax payments. Amend a tax return 2012   Payments are due on the 15th day of the 4th, 6th, 9th, and 12th months of the corporation's tax year. Amend a tax return 2012 Form 2553. Amend a tax return 2012   This form is used to choose S corporation treatment. Amend a tax return 2012 It is due no more than two months and 15 days after the beginning of the tax year the election is to take effect or at any time during the preceding tax year. Amend a tax return 2012 Employer's Tax Calendar This tax calendar covers various due dates of interest to employers. Amend a tax return 2012 Principally, it covers the following federal taxes. Amend a tax return 2012 Income tax you withhold from your employees' wages or from nonpayroll amounts you pay out. Amend a tax return 2012 Social security and Medicare taxes (FICA taxes) you withhold from your employees' wages and the social security and Medicare taxes you must pay as an employer. Amend a tax return 2012 Federal unemployment (FUTA) tax you must pay as an employer. Amend a tax return 2012 The calendar lists due dates for filing returns and for making deposits of these three taxes throughout the year. Amend a tax return 2012 Use this calendar with Publication 15 (Circular E), which gives the deposit rules. Amend a tax return 2012 Forms you may need. Amend a tax return 2012   The following is a list and description of the primary employment tax forms you may need. Amend a tax return 2012 Form 940, Employer's Annual Federal Unemployment (FUTA) Tax Return. Amend a tax return 2012 This form is due the last day of the first calendar month after the calendar year ends. Amend a tax return 2012 Use it to report the FUTA tax on wages you paid. Amend a tax return 2012 Form 941, Employer's QUARTERLY Federal Tax Return. Amend a tax return 2012 This form is due the last day of the first calendar month after the calendar quarter ends. Amend a tax return 2012 Use it to report social security and Medicare taxes and withheld income taxes on wages if your employees are not farm workers or household employees. Amend a tax return 2012 Form 943, Employer's Annual Federal Tax Return for Agricultural Employees. Amend a tax return 2012 This form is due the last day of the first calendar month after the calendar year ends. Amend a tax return 2012 Use it to report social security and Medicare taxes and withheld income taxes on wages if your employees are farm workers. Amend a tax return 2012 Form 944, Employer's ANNUAL Federal Tax Return. Amend a tax return 2012 This form is due the last day of the first calendar month after the calendar year ends. Amend a tax return 2012 Certain small employers use it instead of Form 941 to report social security and Medicare taxes and withheld income tax. Amend a tax return 2012 Form 945, Annual Return of Withheld Federal Income Tax. Amend a tax return 2012 This form is due the last day of the first calendar month after the calendar year ends. Amend a tax return 2012 Use it to report income tax withheld on all nonpayroll items. Amend a tax return 2012 Nonpayroll items include the following. Amend a tax return 2012 Backup withholding. Amend a tax return 2012 Withholding on pensions, annuities, IRAs, and gambling winnings. Amend a tax return 2012 Payments of Indian gaming profits to tribal members. Amend a tax return 2012 Fiscal-year taxpayers. Amend a tax return 2012   The dates in this calendar apply whether you use a fiscal year or the calendar year as your tax year. Amend a tax return 2012 The only exception is the date for filing Forms 5500, Annual Return/Report of Employee Benefit Plan, and 5500-EZ, Annual Return of One-Participant (Owners and Their Spouses) Retirement Plan. Amend a tax return 2012 These employee benefit plan forms are due by the last day of the seventh month after the plan year ends. Amend a tax return 2012 See July 31 , later. Amend a tax return 2012 Extended due dates. Amend a tax return 2012   If you timely deposit in full the tax you are required to report on Form 940, 941, 943, 944, or 945, you have an additional 10 calendar days to file that form. Amend a tax return 2012 If you are subject to the semiweekly deposit rule, use Table 2 near the end of this publication for your deposit due dates. Amend a tax return 2012 However, if you accumulate $100,000 or more of taxes on any day during a deposit period, you must deposit the tax by the next business day instead of the date shown in Table 2. Amend a tax return 2012 First Quarter The first quarter of a calendar year is made up of January, February, and March. Amend a tax return 2012 Second Quarter The second quarter of a calendar year is made up of April, May, and June. Amend a tax return 2012 Third Quarter The third quarter of a calendar year is made up of July, August, and September. Amend a tax return 2012 Fourth Quarter The fourth quarter of a calendar year is made up of October, November, and December. Amend a tax return 2012 Excise Tax Calendar This tax calendar gives the due dates for filing returns and making deposits of excise taxes. Amend a tax return 2012 Use this calendar with Publication 510. Amend a tax return 2012 Also see the instructions for Forms 11-C, 720, 730, and 2290 for more information. Amend a tax return 2012 References to Form 2290 also apply to Form 2290(SP). Amend a tax return 2012 Forms you may need. Amend a tax return 2012   The following is a list and description of the excise tax forms you may need. Amend a tax return 2012 Form 11-C, Occupational Tax and Registration Return for Wagering. Amend a tax return 2012 Use this form to register any wagering activity and to pay an occupational tax on wagering. Amend a tax return 2012 File Form 11-C if you are in the business of accepting wagers, including conducting a wagering pool or lottery, or are an agent of someone who accepts wagers. Amend a tax return 2012 You must file the form before you begin accepting wagers. Amend a tax return 2012 After that, file the form by July 1 of each year. Amend a tax return 2012 Also, see Form 730, later. Amend a tax return 2012 Form 720, Quarterly Federal Excise Tax Return. Amend a tax return 2012 File this form by the last day of the month following the calendar quarter. Amend a tax return 2012 Use this form to report a wide variety of excise taxes, including: Communications and air transportation taxes, Fuel taxes, Retail tax, Ship passenger tax, and Manufacturers taxes. Amend a tax return 2012 Form 730, Monthly Tax Return for Wagers. Amend a tax return 2012 Use this form to pay an excise tax on wagers you accept. Amend a tax return 2012 File this form for each month by the last day of the following month. Amend a tax return 2012 Also, see Form 11-C, earlier. Amend a tax return 2012 Form 2290, Heavy Highway Vehicle Use Tax Return. Amend a tax return 2012 Use this form to pay the federal use tax on heavy highway vehicles registered in your name. Amend a tax return 2012 File this form by the last day of the month following the month of the vehicle's first taxable use in the tax period. Amend a tax return 2012 The tax period begins on July 1 and ends the following June 30. Amend a tax return 2012 You must pay the full year's tax on all vehicles you have in use during the month of July. Amend a tax return 2012 You must also pay a partial-year tax on taxable vehicles that you put into use in a month after July. Amend a tax return 2012 For more information, see the Instructions for Form 2290. Amend a tax return 2012 Fiscal-year taxpayers. Amend a tax return 2012   The dates in this calendar apply whether you use a fiscal year or the calendar year as your tax year. Amend a tax return 2012 Adjustments for Saturday, Sunday, or legal holidays. Amend a tax return 2012   Generally, if a due date falls on a Saturday, Sunday, or legal holiday, the due date is delayed until the next day that is not a Saturday, Sunday, or legal holiday. Amend a tax return 2012 For excise taxes, there are two exceptions to this rule. Amend a tax return 2012 For deposits of regular method taxes, if the due date is a Saturday, Sunday, or legal holiday, the due date is the immediately preceding day that is not a Saturday, Sunday, or legal holiday. Amend a tax return 2012 Under the special September deposit rules, if the due date falls on a Saturday, the deposit is due on the preceding Friday. Amend a tax return 2012 If the due date falls on a Sunday, the deposit is due on the following Monday. Amend a tax return 2012 For more information, see the Instructions for Form 720. Amend a tax return 2012 The Excise Tax Calendar has been adjusted for all of these provisions. Amend a tax return 2012 Regular method taxes. Amend a tax return 2012   These are taxes, other than alternative method taxes used for communication and air transportation taxes, reported on Form 720 for which deposits are required. Amend a tax return 2012 First Quarter The first quarter of a calendar year is made up of January, February, and March. Amend a tax return 2012 Second Quarter The second quarter of a calendar year is made up of April, May, and June. Amend a tax return 2012 Third Quarter The third quarter of a calendar year is made up of July, August, and September. Amend a tax return 2012 Fourth Quarter The fourth quarter of a calendar year is made up of October, November, and December. Amend a tax return 2012 How To Get Tax Help Go online, use a smart phone, call or walk in to an office near you. Amend a tax return 2012 Whether it's help with a tax issue, preparing your tax return or picking up a free publication or form, get the help you need the way you want it. Amend a tax return 2012 Free help with your tax return. Amend a tax return 2012   Free help in preparing your return is available nationwide from IRS-certified volunteers. Amend a tax return 2012 The Volunteer Income Tax Assistance (VITA) program is designed to help low-to-moderate income, elderly, persons with disabilities, and limited English proficient taxpayers. Amend a tax return 2012 The Tax Counseling for the Elderly (TCE) program is designed to assist taxpayers age 60 and older with their tax returns. Amend a tax return 2012 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. Amend a tax return 2012 Some VITA and TCE sites provide taxpayers the opportunity to prepare their return with the assistance of an IRS-certified volunteer. Amend a tax return 2012 To find the nearest VITA or TCE site, visit IRS. Amend a tax return 2012 gov or call 1-800-906-9887. Amend a tax return 2012   As part of the TCE program, AARP offers the Tax-Aide counseling program. Amend a tax return 2012 To find the nearest AARP Tax-Aide site, visit AARP's website at www. Amend a tax return 2012 aarp. Amend a tax return 2012 org/money/taxaide or call 1-888-227-7669. Amend a tax return 2012   For more information on these programs, go to IRS. Amend a tax return 2012 gov and enter “VITA” in the search box. Amend a tax return 2012 Internet. Amend a tax return 2012 IRS. Amend a tax return 2012 gov and IRS2Go are ready when you are — every day, every night, 24 hours a day, 7 days a week. Amend a tax return 2012 Apply for an Employer Identification Number (EIN). Amend a tax return 2012 Go to IRS. Amend a tax return 2012 gov and enter Apply for an EIN in the search box. Amend a tax return 2012 Request an Electronic Filing PIN by going to IRS. Amend a tax return 2012 gov and entering Electronic Filing PIN in the search box. Amend a tax return 2012 Check the status of your 2013 refund with Where's My Refund? Go to IRS. Amend a tax return 2012 gov or the IRS2Go app, and click on Where's My Refund? You'll get a personalized refund date as soon as the IRS processes your tax return and approves your refund. Amend a tax return 2012 If you e-file, your refund status is usually available within 24 hours after the IRS receives your tax return or 4 weeks after you've mailed a paper return. Amend a tax return 2012 Checking the status of your amended return. Amend a tax return 2012 Go to IRS. Amend a tax return 2012 gov and enter Where's My Amended Return in the search box. Amend a tax return 2012 Download forms, instructions, and publications, including some accessible versions. Amend a tax return 2012 Order free transcripts of your tax returns or tax account using the Order a Transcript tool on IRS. Amend a tax return 2012 gov or IRS2Go. Amend a tax return 2012 Tax return and tax account transcripts are generally available for the current year and past three years. Amend a tax return 2012 Figure your income tax withholding with the IRS Withholding Calculator on IRS. Amend a tax return 2012 gov. Amend a tax return 2012 Use it if you've had too much or too little withheld, your personal situation has changed, you're starting a new job or you just want to see if you're having the right amount withheld. Amend a tax return 2012 Determine if you might be subject to the Alternative Minimum Tax by using the Alternative Minimum Tax Assistant on IRS. Amend a tax return 2012 gov. Amend a tax return 2012 Locate the nearest Taxpayer Assistance Center using the Office Locator tool on IRS. Amend a tax return 2012 gov or IRS2Go. Amend a tax return 2012 Stop by most business days for face-to-face tax help, no appointment necessary — just walk in. Amend a tax return 2012 An employee can explain IRS letters, request adjustments to your tax account or help you set up a payment plan. Amend a tax return 2012 Before you visit, check the Office Locator for the address, phone number, hours of operation and the services provided. Amend a tax return 2012 If you have an ongoing tax account problem or a special need, such as a disability, you can request an appointment. Amend a tax return 2012 Call the local number listed in the Office Locator, or look in the phone book under United States Government, Internal Revenue Service. Amend a tax return 2012 Locate the nearest volunteer help site with the VITA Locator Tool on IRS. Amend a tax return 2012 gov. Amend a tax return 2012 Low-to-moderate income, elderly, persons with disabilities, and limited English proficient taxpayers can get free help with their tax return from the nationwide Volunteer Income Tax Assistance (VITA) program. Amend a tax return 2012 The Tax Counseling for the Elderly (TCE) program helps taxpayers 60 and older with their tax returns. Amend a tax return 2012 Most VITA and TCE sites offer free electronic filing and some provide IRS-certified volunteers who can help prepare your tax return. Amend a tax return 2012 AARP offers the Tax-Aide counseling program as part of the TCE program. Amend a tax return 2012 Visit AARP's website to find the nearest Tax-Aide location. Amend a tax return 2012 Research your tax questions. Amend a tax return 2012 Search publications and instructions by topic or keyword. Amend a tax return 2012 Read the Internal Revenue Code, regulations, or other official guidance. Amend a tax return 2012 Read Internal Revenue Bulletins. Amend a tax return 2012 Sign up to receive local and national tax news by email. Amend a tax return 2012 Phone. Amend a tax return 2012 You can call the IRS, or you can carry it in your pocket with the IRS2Go app on your smart phone or tablet. Amend a tax return 2012 Download the free IRS2Go mobile app from the iTunes app store or from Google Play. Amend a tax return 2012 Use it to watch the IRS YouTube channel, get IRS news as soon as it's released to the public, order transcripts of your tax returns or tax account, check your refund status, subscribe to filing season updates or daily tax tips, and follow the IRS Twitter news feed, @IRSnews, to get the latest federal tax news, including information about tax law changes and important IRS programs. Amend a tax return 2012 Call to locate the nearest volunteer help site, 1-800-906-9887. Amend a tax return 2012 Low-to-moderate income, elderly, persons with disabilities, and limited English proficient taxpayers can get free help with their tax return from the nationwide Volunteer Income Tax Assistance (VITA) program. Amend a tax return 2012 The Tax Counseling for the Elderly (TCE) program helps taxpayers 60 and older with their tax returns. Amend a tax return 2012 Most VITA and TCE sites offer free electronic filing. Amend a tax return 2012 Some VITA and TCE sites provide IRS-certified volunteers who can help prepare your tax return. Amend a tax return 2012 Through the TCE program, AARP offers the Tax-Aide counseling program; call 1-888-227-7669 to find the nearest Tax-Aide location. Amend a tax return 2012 Call to check the status of your 2013 refund, 1-800-829-1954 or 1-800-829-4477. Amend a tax return 2012 The automated Where's My Refund? information is available 24 hours a day, 7 days a week. Amend a tax return 2012 If you e-file, your refund status is usually available within 24 hours after the IRS receives your tax return or 4 weeks after you've mailed a paper return. Amend a tax return 2012 Before you call, have your 2013 tax return handy so you can provide your social security number, your filing status, and the exact whole dollar amount of your refund. Amend a tax return 2012 Where's My Refund? can give you a personalized refund date as soon as the IRS processes your tax return and approves your refund. Amend a tax return 2012 Where's My Refund? includes information for the most recent return filed in the current year and does not include information about amended returns. Amend a tax return 2012 Call the Amended Return Hotline, 1-866-464-2050, to check the status of your amended return. Amend a tax return 2012 Call to order forms, instructions and publications, 1-800-TAX-FORM (1-800-829-3676) to order current-year forms, instructions and publications, and prior-year forms and instructions (limited to 5 years). Amend a tax return 2012 You should receive your order within 10 business days. Amend a tax return 2012 Call to order transcripts of your tax returns or tax account, 1-800-908-9946. Amend a tax return 2012 Follow the prompts to provide your Social Security Number or Individual Taxpayer Identification Number, date of birth, street address and ZIP code. Amend a tax return 2012 Call for TeleTax topics, 1-800-829-4477, to listen to pre-recorded messages covering various tax topics. Amend a tax return 2012 Call to ask tax questions, 1-800-829-1040. Amend a tax return 2012 Call using TTY/TDD equipment, 1-800-829-4059 to ask tax questions or order forms and publications. Amend a tax return 2012 The TTY/TDD telephone number is for people who are deaf, hard of hearing, or have a speech disability. Amend a tax return 2012 These individuals can also contact the IRS through relay services such as the Federal Relay Service available at www. Amend a tax return 2012 gsa. Amend a tax return 2012 gov/fedrelay. Amend a tax return 2012 Walk-in. Amend a tax return 2012 You can find a selection of forms, publications and services — in-person, face-to-face. Amend a tax return 2012 Products. Amend a tax return 2012 You can walk in to some post offices, libraries, and IRS offices to pick up certain forms, instructions, and publications. Amend a tax return 2012 Some IRS offices, libraries, and city and county government offices have a collection of products available to photocopy from reproducible proofs. Amend a tax return 2012 Services. Amend a tax return 2012 You can walk in to your local TAC most business days for personal, face-to-face tax help. Amend a tax return 2012 An employee can explain IRS letters, request adjustments to your tax account, or help you set up a payment plan. Amend a tax return 2012 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 TAC where you can talk with an IRS representative face-to-face. Amend a tax return 2012 No appointment is necessary—just walk in. Amend a tax return 2012 Before visiting, check www. Amend a tax return 2012 irs. Amend a tax return 2012 gov/localcontacts for hours of operation and services provided. Amend a tax return 2012 Mail. Amend a tax return 2012 You can send your order for forms, instructions, and publications to the address below. Amend a tax return 2012 You should receive a response within 10 business days after your request is received. Amend a tax return 2012  Internal Revenue Service 1201 N. Amend a tax return 2012 Mitsubishi Motorway Bloomington, IL 61705-6613 The Taxpayer Advocate Service Is Here to Help You. Amend a tax return 2012   The Taxpayer Advocate Service (TAS) is your voice at the IRS. Amend a tax return 2012 Our job is to ensure that every taxpayer is treated fairly and that you know and understand your rights. Amend a tax return 2012 What can TAS do for you?   We can offer you free help with IRS problems that you can't resolve on your own. Amend a tax return 2012 We know this process can be confusing, but the worst thing you can do is nothing at all! TAS can help if you can't resolve your tax problem and: Your problem is causing financial difficulties for you, your family, or your business. Amend a tax return 2012 You face (or your business is facing) an immediate threat of adverse action. Amend a tax return 2012 You've tried repeatedly to contact the IRS but no one has responded, or the IRS hasn't responded by the date promised. Amend a tax return 2012   If you qualify for our help, you'll be assigned to one advocate who'll be with you at every turn and will do everything possible to resolve your problem. Amend a tax return 2012 Here's why we can help: TAS is an independent organization within the IRS. Amend a tax return 2012 Our advocates know how to work with the IRS. Amend a tax return 2012 Our services are free and tailored to meet your needs. Amend a tax return 2012 We have offices in every state, the District of Columbia, and Puerto Rico. Amend a tax return 2012 How can you reach us?   If you think TAS can help you, call your local advocate, whose number is in your local directory and at www. Amend a tax return 2012 irs. Amend a tax return 2012 gov/advocate, or call us toll-free at 1-877-777-4778. Amend a tax return 2012 How else does TAS help taxpayers?   TAS also works to resolve large-scale, systemic problems that affect many taxpayers. Amend a tax return 2012 If you know of one of these broad issues, please report it to us through our Systemic Advocacy Management System at www. Amend a tax return 2012 irs. Amend a tax return 2012 gov/sams. Amend a tax return 2012 Low Income Taxpayer Clinics. Amend a tax return 2012   Low Income Taxpayer Clinics (LITCs) serve individuals whose income is below a certain level and need to resolve tax problems such as audits, appeals, and tax collection disputes. Amend a tax return 2012 Some clinics can provide information about taxpayer rights and responsibilities in different languages for individuals who speak English as a second language. Amend a tax return 2012 Visit www. Amend a tax return 2012 TaxpayerAdvocate. Amend a tax return 2012 irs. Amend a tax return 2012 gov or see IRS Publication 4134, Low Income Taxpayer Clinic List. Amend a tax return 2012 gnewbus01 Prev  Up  Next   Home   More Online Publications
Español

Primary and Secondary Education

Find government information on primary and secondary education, including bullying, education reform, financial aid, libraries, school enrollment data, and more.

The Amend A Tax Return 2012

Amend a tax return 2012 Publication 583 - Main Content Table of Contents What New Business Owners Need To Know Forms of BusinessMore information. Amend a tax return 2012 More information. Amend a tax return 2012 Exception—Community Income. Amend a tax return 2012 Exception—Qualified joint venture. Amend a tax return 2012 More information. Amend a tax return 2012 More information. Amend a tax return 2012 Identification NumbersEmployer Identification Number (EIN) Payee's Identification Number Tax Year Accounting Method Business TaxesIncome Tax Self-Employment Tax Employment Taxes Excise Taxes Depositing Taxes Information Returns PenaltiesWaiver of penalty. Amend a tax return 2012 Business ExpensesBusiness Start-Up Costs Depreciation Business Use of Your Home Car and Truck Expenses RecordkeepingWhy Keep Records? Kinds of Records To Keep How Long To Keep Records Sample Record System How to Get More InformationInternal Revenue Service Small Business Administration Other Federal Agencies What New Business Owners Need To Know As a new business owner, you need to know your federal tax responsibilities. Amend a tax return 2012 Table 1 can help you learn what those responsibilities are. Amend a tax return 2012 Ask yourself each question listed in the table, then see the related discussion to find the answer. Amend a tax return 2012 In addition to knowing about federal taxes, you need to make some basic business decisions. Amend a tax return 2012 Ask yourself: What are my financial resources? What products and services will I sell? How will I market my products and services? How will I develop a strategic business plan? How will I manage my business on a day-to-day basis? How will I recruit employees? The Small Business Administration (SBA) is a federal agency that can help you answer these types of questions. Amend a tax return 2012 For information on how to contact the SBA, see How to Get More Information, later. Amend a tax return 2012 Forms of Business The most common forms of business are the sole proprietorship, partnership, and corporation. Amend a tax return 2012 When beginning a business, you must decide which form of business to use. Amend a tax return 2012 Legal and tax considerations enter into this decision. Amend a tax return 2012 Only tax considerations are discussed in this publication. Amend a tax return 2012 Your form of business determines which income tax return form you have to file. Amend a tax return 2012 See Table 2 to find out which form you have to file. Amend a tax return 2012 Sole proprietorships. Amend a tax return 2012   A sole proprietorship is an unincorporated business that is owned by one individual. Amend a tax return 2012 It is the simplest form of business organization to start and maintain. Amend a tax return 2012 The business has no existence apart from you, the owner. Amend a tax return 2012 Its liabilities are your personal liabilities. Amend a tax return 2012 You undertake the risks of the business for all assets owned, whether or not used in the business. Amend a tax return 2012 You include the income and expenses of the business on your personal tax return. Amend a tax return 2012 More information. Amend a tax return 2012   For more information on sole proprietorships, see Publication 334, Tax Guide for Small Business. Amend a tax return 2012 If you are a farmer, see Publication 225, Farmer's Tax Guide. Amend a tax return 2012 Partnerships. Amend a tax return 2012   A partnership is the relationship existing between two or more persons who join to carry on a trade or business. Amend a tax return 2012 Each person contributes money, property, labor, or skill, and expects to share in the profits and losses of the business. Amend a tax return 2012   A partnership must file an annual information return to report the income, deductions, gains, losses, etc. Amend a tax return 2012 , from its operations, but it does not pay income tax. Amend a tax return 2012 Instead, it “passes through” any profits or losses to its partners. Amend a tax return 2012 Each partner includes his or her share of the partnership's items on his or her tax return. Amend a tax return 2012 More information. Amend a tax return 2012   For more information on partnerships, see Publication 541, Partnerships. Amend a tax return 2012 Husband and wife business. Amend a tax return 2012   If you and your spouse jointly own and operate an unincorporated business and share in the profits and losses, you are partners in a partnership, whether or not you have a formal partnership agreement. Amend a tax return 2012 Do not use Schedule C or C-EZ. Amend a tax return 2012 Instead, file Form 1065, U. Amend a tax return 2012 S. Amend a tax return 2012 Return of Partnership Income. Amend a tax return 2012 For more information, see Publication 541, Partnerships. Amend a tax return 2012 Exception—Community Income. Amend a tax return 2012   If you and your spouse wholly own an unincorporated business as community property under the community property laws of a state, foreign country, or U. Amend a tax return 2012 S. Amend a tax return 2012 possession, you can treat the business either as a sole proprietorship or a partnership. Amend a tax return 2012 The only states with community property laws are Arizona, California, Idaho, Louisiana, Nevada, New Mexico, Texas, Washington, and Wisconsin. Amend a tax return 2012 A change in your reporting position will be treated as a conversion of the entity. Amend a tax return 2012 Exception—Qualified joint venture. Amend a tax return 2012   If you and your spouse each materially participate as the only members of a jointly owned and operated business, and you file a joint return for the tax year, you can make a joint election to be treated as a qualified joint venture instead of a partnership for the tax year. Amend a tax return 2012 Making this election will allow you to avoid the complexity of Form 1065 but still give each spouse credit for social security earnings on which retirement benefits are based. Amend a tax return 2012 For an explanation of "material participation," see the Instructions for Schedule C, line G. Amend a tax return 2012   To make this election, you must divide all items of income, gain, loss, deduction, and credit attributable to the business between you and your spouse in accordance with your respective interests in the venture. Amend a tax return 2012 Each of you must file a separate Schedule C or C-EZ and a separate Schedule SE. Amend a tax return 2012 For more information, see Qualified Joint Venture in the Instructions for Schedule SE. Amend a tax return 2012 Corporations. Amend a tax return 2012   In forming a corporation, prospective shareholders exchange money, property, or both, for the corporation's capital stock. Amend a tax return 2012 A corporation generally takes the same deductions as a sole proprietorship to figure its taxable income. Amend a tax return 2012 A corporation can also take special deductions. Amend a tax return 2012   The profit of a corporation is taxed to the corporation when earned, and then is taxed to the shareholders when distributed as dividends. Amend a tax return 2012 However, shareholders cannot deduct any loss of the corporation. Amend a tax return 2012 More information. Amend a tax return 2012   For more information on corporations, see Publication 542, Corporations. Amend a tax return 2012 S corporations. Amend a tax return 2012   An eligible domestic corporation can avoid double taxation (once to the corporation and again to the shareholders) by electing to be treated as an S corporation. Amend a tax return 2012 Generally, an S corporation is exempt from federal income tax other than tax on certain capital gains and passive income. Amend a tax return 2012 On their tax returns, the S corporation's shareholders include their share of the corporation's separately stated items of income, deduction, loss, and credit, and their share of nonseparately stated income or loss. Amend a tax return 2012 More information. Amend a tax return 2012   For more information on S corporations, see the instructions for Form 2553, Election by a Small Business Corporation, and Form 1120S, U. Amend a tax return 2012 S. Amend a tax return 2012 Income Tax Return for an S Corporation. Amend a tax return 2012 Limited liability company. Amend a tax return 2012   A limited liability company (LLC) is an entity formed under state law by filing articles of organization as an LLC. Amend a tax return 2012 The members of an LLC are not personally liable for its debts. Amend a tax return 2012 An LLC may be classified for federal income tax purposes as either a partnership, a corporation, or an entity disregarded as an entity separate from its owner by applying the rules in regulations section 301. Amend a tax return 2012 7701-3. Amend a tax return 2012 For more information, see the instructions for Form 8832, Entity Classification Election. Amend a tax return 2012 Identification Numbers You must have a taxpayer identification number so the IRS can process your returns. Amend a tax return 2012 The two most common kinds of taxpayer identification numbers are the social security number (SSN) and the employer identification number (EIN). Amend a tax return 2012 An SSN is issued to individuals by the Social Security Administration (SSA) and is in the following format: 000–00–0000. Amend a tax return 2012 An EIN is issued to individuals (sole proprietors), partnerships, corporations, and other entities by the IRS and is in the following format: 00–0000000. Amend a tax return 2012 You must include your taxpayer identification number (SSN or EIN) on all returns and other documents you send to the IRS. Amend a tax return 2012 You must also furnish your number to other persons who use your identification number on any returns or documents they send to the IRS. Amend a tax return 2012 This includes returns or documents filed to report the following information. Amend a tax return 2012 Interest, dividends, royalties, etc. Amend a tax return 2012 , paid to you. Amend a tax return 2012 Any amount paid to you as a dependent care provider. Amend a tax return 2012 Certain other amounts paid to you that total $600 or more for the year. Amend a tax return 2012 If you do not furnish your identification number as required, you may be subject to penalties. Amend a tax return 2012 See Penalties, later. Amend a tax return 2012 Employer Identification Number (EIN) EINs are used to identify the tax accounts of employers, certain sole proprietors, corporations, partnerships, estates, trusts, and other entities. Amend a tax return 2012 If you don't already have an EIN, you need to get one if you: Have employees, Have a qualified retirement plan, Operate your business as a corporation or partnership, or File returns for: Employment taxes, or Excise taxes. Amend a tax return 2012 Applying for an EIN. Amend a tax return 2012   You may apply for an EIN: Online—Click on the EIN link at www. Amend a tax return 2012 irs. Amend a tax return 2012 gov/businesses/small. Amend a tax return 2012 The EIN is issued immediately once the application information is validated. Amend a tax return 2012 By telephone at 1-800-829-4933. Amend a tax return 2012 By mailing or faxing Form SS-4, Application for Employer Identification Number. Amend a tax return 2012 When to apply. Amend a tax return 2012   You should apply for an EIN early enough to receive the number by the time you must file a return or statement or make a tax deposit. Amend a tax return 2012 If you apply by mail, file Form SS-4 at least 4 weeks before you need an EIN. Amend a tax return 2012 If you apply by telephone or through the IRS website, you can get an EIN immediately. Amend a tax return 2012 If you apply by fax, you can get an EIN within 4 business days. Amend a tax return 2012   If you do not receive your EIN by the time a return is due, file your return anyway. Amend a tax return 2012 Write “Applied for” and the date you applied for the number in the space for the EIN. Amend a tax return 2012 Do not use your social security number as a substitute for an EIN on your tax returns. Amend a tax return 2012 More than one EIN. Amend a tax return 2012   You should have only one EIN. Amend a tax return 2012 If you have more than one EIN and are not sure which to use, contact the Internal Revenue Service Center where you file your return. Amend a tax return 2012 Give the numbers you have, the name and address to which each was assigned, and the address of your main place of business. Amend a tax return 2012 The IRS will tell you which number to use. Amend a tax return 2012 More information. Amend a tax return 2012   For more information about EINs, see Publication 1635, Understanding Your EIN. Amend a tax return 2012 Payee's Identification Number In the operation of a business, you will probably make certain payments you must report on information returns (discussed later under Information Returns). Amend a tax return 2012 The forms used to report these payments must include the payee's identification number. Amend a tax return 2012 Employee. Amend a tax return 2012   If you have employees, you must get an SSN from each of them. Amend a tax return 2012 Record the name and SSN of each employee exactly as they are shown on the employee's social security card. Amend a tax return 2012 If the employee's name is not correct as shown on the card, the employee should request a new card from the SSA. Amend a tax return 2012 This may occur, for example, if the employee's name has changed due to marriage or divorce. Amend a tax return 2012   If your employee does not have an SSN, he or she should file Form SS-5, Application for a Social Security Card, with the SSA. Amend a tax return 2012 This form is available at SSA offices or by calling 1-800-772-1213. Amend a tax return 2012 It is also available from the SSA website at www. Amend a tax return 2012 ssa. Amend a tax return 2012 gov. Amend a tax return 2012 Other payee. Amend a tax return 2012   If you make payments to someone who is not your employee and you must report the payments on an information return, get that person's SSN. Amend a tax return 2012 If you make reportable payments to an organization, such as a corporation or partnership, you must get its EIN. Amend a tax return 2012   To get the payee's SSN or EIN, use Form W-9, Request for Taxpayer Identification Number and Certification. Amend a tax return 2012 This form is available from IRS offices or by calling 1-800-829-3676. Amend a tax return 2012 It is also available from the IRS website at IRS. Amend a tax return 2012 gov. Amend a tax return 2012    If the payee does not provide you with an identification number, you may have to withhold part of the payments as backup withholding. Amend a tax return 2012 For information on backup withholding, see the Form W-9 instructions and the General Instructions for Certain Information Returns. Amend a tax return 2012 Tax Year You must figure your taxable income and file an income tax return based on an annual accounting period called a tax year. Amend a tax return 2012 A tax year is usually 12 consecutive months. Amend a tax return 2012 There are two kinds of tax years. Amend a tax return 2012 Calendar tax year. Amend a tax return 2012 A calendar tax year is 12 consecutive months beginning January 1 and ending December 31. Amend a tax return 2012 Fiscal tax year. Amend a tax return 2012 A fiscal tax year is 12 consecutive months ending on the last day of any month except December. Amend a tax return 2012 A 52-53-week tax year is a fiscal tax year that varies from 52 to 53 weeks but does not have to end on the last day of a month. Amend a tax return 2012 If you file your first tax return using the calendar tax year and you later begin business as a sole proprietor, become a partner in a partnership, or become a shareholder in an S corporation, you must continue to use the calendar year unless you get IRS approval to change it or are otherwise allowed to change it without IRS approval. Amend a tax return 2012 You must use a calendar tax year if: You keep no books. Amend a tax return 2012 You have no annual accounting period. Amend a tax return 2012 Your present tax year does not qualify as a fiscal year. Amend a tax return 2012 You are required to use a calendar year by a provision of the Internal Revenue Code or the Income Tax Regulations. Amend a tax return 2012 For more information, see Publication 538, Accounting Periods and Methods. Amend a tax return 2012 First-time filer. Amend a tax return 2012   If you have never filed an income tax return, you can adopt either a calendar tax year or a fiscal tax year. Amend a tax return 2012 You adopt a tax year by filing your first income tax return using that tax year. Amend a tax return 2012 You have not adopted a tax year if you merely did any of the following. Amend a tax return 2012 Filed an application for an extension of time to file an income tax return. Amend a tax return 2012 Filed an application for an employer identification number. Amend a tax return 2012 Paid estimated taxes for that tax year. Amend a tax return 2012 Changing your tax year. Amend a tax return 2012   Once you have adopted your tax year, you may have to get IRS approval to change it. Amend a tax return 2012 To get approval, you must file Form 1128, Application To Adopt, Change, or Retain a Tax Year. Amend a tax return 2012 You may have to pay a fee. Amend a tax return 2012 For more information, see Publication 538. Amend a tax return 2012 Accounting Method An accounting method is a set of rules used to determine when and how income and expenses are reported. Amend a tax return 2012 You choose an accounting method for your business when you file your first income tax return. Amend a tax return 2012 There are two basic accounting methods. Amend a tax return 2012 Cash method. Amend a tax return 2012 Under the cash method, you report income in the tax year you receive it. Amend a tax return 2012 You usually deduct or capitalize expenses in the tax year you pay them. Amend a tax return 2012 Accrual method. Amend a tax return 2012 Under an accrual method, you generally report income in the tax year you earn it, even though you may receive payment in a later year. Amend a tax return 2012 You deduct or capitalize expenses in the tax year you incur them, whether or not you pay them that year. Amend a tax return 2012 For other methods, see Publication 538. Amend a tax return 2012 If you need inventories to show income correctly, you must generally use an accrual method of accounting for purchases and sales. Amend a tax return 2012 Inventories include goods held for sale in the normal course of business. Amend a tax return 2012 They also include raw materials and supplies that will physically become a part of merchandise intended for sale. Amend a tax return 2012 Inventories are explained in Publication 538. Amend a tax return 2012 Certain small business taxpayers can use the cash method of accounting and can also account for inventoriable items as materials and supplies that are not incidental. Amend a tax return 2012 For more information, see Publication 538. Amend a tax return 2012 You must use the same accounting method to figure your taxable income and to keep your books. Amend a tax return 2012 Also, you must use an accounting method that clearly shows your income. Amend a tax return 2012 In general, any accounting method that consistently uses accounting principles suitable for your trade or business clearly shows income. Amend a tax return 2012 An accounting method clearly shows income only if it treats all items of gross income and expense the same from year to year. Amend a tax return 2012 More than one business. Amend a tax return 2012   When you own more than one business, you can use a different accounting method for each business if the method you use for each clearly shows your income. Amend a tax return 2012 You must keep a complete and separate set of books and records for each business. Amend a tax return 2012 Changing your method of accounting. Amend a tax return 2012   Once you have set up your accounting method, you must generally get IRS approval before you can change to another method. Amend a tax return 2012 A change in accounting method not only includes a change in your overall system of accounting, but also a change in the treatment of any material item. Amend a tax return 2012 For examples of changes that require approval and information on how to get approval for the change, see Publication 538. Amend a tax return 2012 Business Taxes The form of business you operate determines what taxes you must pay and how you pay them. Amend a tax return 2012 The following are the four general kinds of business taxes. Amend a tax return 2012 Income tax. Amend a tax return 2012 Self-employment tax. Amend a tax return 2012 Employment taxes. Amend a tax return 2012 Excise taxes. Amend a tax return 2012 See Table 2 for the forms you file to report these taxes. Amend a tax return 2012 You may want to get Publication 509. Amend a tax return 2012 It has tax calendars that tell you when to file returns and make tax payments. Amend a tax return 2012 Income Tax All businesses except partnerships must file an annual income tax return. Amend a tax return 2012 Partnerships file an information return. Amend a tax return 2012 Which form you use depends on how your business is organized. Amend a tax return 2012 See Table 2 to find out which return you have to file. Amend a tax return 2012 The federal income tax is a pay-as-you-go tax. Amend a tax return 2012 You must pay the tax as you earn or receive income during the year. Amend a tax return 2012 An employee usually has income tax withheld from his or her pay. Amend a tax return 2012 If you do not pay your tax through withholding, or do not pay enough tax that way, you might have to pay estimated tax. Amend a tax return 2012 If you are not required to make estimated tax payments, you may pay any tax due when you file your return. Amend a tax return 2012 Table 2. Amend a tax return 2012 Which Forms Must I File? IF you are a. Amend a tax return 2012 . Amend a tax return 2012 . Amend a tax return 2012   THEN you may be liable for. Amend a tax return 2012 . Amend a tax return 2012 . Amend a tax return 2012   Use Form. Amend a tax return 2012 . Amend a tax return 2012 . Amend a tax return 2012 Sole proprietor   Income tax   1040 and Schedule C 1 or C-EZ (Schedule F 1 for farm business)     Self-employment tax   1040 and Schedule SE     Estimated tax   1040-ES     Employment taxes:         • Social security and Medicare   taxes and income tax   withholding   941 or 944 (943 for farm employees)     • Federal unemployment (FUTA)   tax   940     Excise taxes   See Excise Taxes Partnership   Annual return of income   1065     Employment taxes   Same as sole proprietor     Excise taxes   See Excise Taxes Partner in a partnership (individual)   Income tax   1040 and Schedule E 2     Self-employment tax   1040 and Schedule SE     Estimated tax   1040-ES Corporation or S corporation   Income tax   1120 (corporation) 2  1120S (S corporation) 2     Estimated tax   1120-W (corporation only)     Employment taxes   Same as sole proprietor     Excise taxes   See Excise Taxes S corporation shareholder   Income tax   1040 and Schedule E 2     Estimated tax   1040-ES 1 File a separate schedule for each business. Amend a tax return 2012 2 Various other schedules may be needed. Amend a tax return 2012 Estimated tax. Amend a tax return 2012   Generally, you must pay taxes on income, including self-employment tax (discussed next), by making regular payments of estimated tax during the year. Amend a tax return 2012 Sole proprietors, partners, and S corporation shareholders. Amend a tax return 2012   You generally have to make estimated tax payments if you expect to owe tax of $1,000 or more when you file your return. Amend a tax return 2012 Use Form 1040-ES, Estimated Tax for Individuals, to figure and pay your estimated tax. Amend a tax return 2012 For more information, see Publication 505, Tax Withholding and Estimated Tax. Amend a tax return 2012 Corporations. Amend a tax return 2012   You generally have to make estimated tax payments for your corporation if you expect it to owe tax of $500 or more when you file its return. Amend a tax return 2012 Use Form 1120-W, Estimated Tax for Corporations, to figure the estimated tax. Amend a tax return 2012 You must deposit the payments as explained later under Depositing Taxes. Amend a tax return 2012 For more information, see Publication 542. Amend a tax return 2012 Self-Employment Tax Self-employment tax (SE tax) is a social security and Medicare tax primarily for individuals who work for themselves. Amend a tax return 2012 Your payments of SE tax contribute to your coverage under the social security system. Amend a tax return 2012 Social security coverage provides you with retirement benefits, disability benefits, survivor benefits, and hospital insurance (Medicare) benefits. Amend a tax return 2012 You must pay SE tax and file Schedule SE (Form 1040) if either of the following applies. Amend a tax return 2012 Your net earnings from self-employment were $400 or more. Amend a tax return 2012 You had church employee income of $108. Amend a tax return 2012 28 or more. Amend a tax return 2012 Use Schedule SE (Form 1040) to figure your SE tax. Amend a tax return 2012 For more information, see Publication 334, Tax Guide for Small Business. Amend a tax return 2012 You can deduct a portion of your SE tax as an adjustment to income on your Form 1040. Amend a tax return 2012 The Social Security Administration (SSA) time limit for posting self-employment income. Amend a tax return 2012   Generally, the SSA will give you credit only for self-employment income reported on a tax return filed within 3 years, 3 months, and 15 days after the tax year you earned the income. Amend a tax return 2012 If you file your tax return or report a change in your self-employment income after this time limit, the SSA may change its records, but only to remove or reduce the amount. Amend a tax return 2012 The SSA will not change its records to increase your self-employment income. Amend a tax return 2012 Employment Taxes This section briefly discusses the employment taxes you must pay, the forms you must file to report them, and other forms that must be filed when you have employees. Amend a tax return 2012 Employment taxes include the following. Amend a tax return 2012 Social security and Medicare taxes. Amend a tax return 2012 Federal income tax withholding. Amend a tax return 2012 Federal unemployment (FUTA) tax. Amend a tax return 2012 If you have employees, you will need to get Publication 15, Circular E, Employer's Tax Guide. Amend a tax return 2012 If you have agricultural employees, get Publication 51, Circular A, Agricultural Employer's Tax Guide. Amend a tax return 2012 These publications explain your tax responsibilities as an employer. Amend a tax return 2012 If you are not sure whether the people working for you are your employees, see Publication 15-A, Employer's Supplemental Tax Guide. Amend a tax return 2012 That publication has information to help you determine whether an individual is an employee or an independent contractor. Amend a tax return 2012 If you classify an employee as an independent contractor, you can be held liable for employment taxes for that worker plus a penalty. Amend a tax return 2012 An independent contractor is someone who is self-employed. Amend a tax return 2012 Generally, you do not have to withhold or pay any taxes on payments to an independent contractor. Amend a tax return 2012 Federal Income, Social Security, and Medicare Taxes You generally must withhold federal income tax from your employee's wages. Amend a tax return 2012 To figure how much federal income tax to withhold from each wage payment, use the employee's Form W-4 (discussed later under Hiring Employees) and the methods described in Publication 15. Amend a tax return 2012 Social security and Medicare taxes pay for benefits that workers and their families receive under the Federal Insurance Contributions Act (FICA). Amend a tax return 2012 Social security tax pays for benefits under the old-age, survivors, and disability insurance part of FICA. Amend a tax return 2012 Medicare tax pays for benefits under the hospital insurance part of FICA. Amend a tax return 2012 You withhold part of these taxes from your employee's wages and you pay a part yourself. Amend a tax return 2012 To find out how much social security and Medicare tax to withhold and to pay, see Publication 15. Amend a tax return 2012 Which form do I file?   Report these taxes on Form 941, Employer's QUARTERLY Federal Tax Return, or Form 944, Employer's ANNUAL Federal Tax Return. Amend a tax return 2012 (Farm employers use Form 943, Employer's Annual Federal Tax Return for Agricultural Employees. Amend a tax return 2012 ) Federal Unemployment (FUTA) Tax The federal unemployment tax is part of the federal and state program under the Federal Unemployment Tax Act (FUTA) that pays unemployment compensation to workers who lose their jobs. Amend a tax return 2012 You report and pay FUTA tax separately from social security and Medicare taxes and withheld income tax. Amend a tax return 2012 You pay FUTA tax only from your own funds. Amend a tax return 2012 Employees do not pay this tax or have it withheld from their pay. Amend a tax return 2012 Which form do I file?   Report federal unemployment tax on Form 940, Employer's Annual Federal Unemployment (FUTA) Tax Return. Amend a tax return 2012 See Publication 15 to find out if you can use this form. Amend a tax return 2012 Hiring Employees Have the employees you hire fill out Form I-9 and Form W-4. Amend a tax return 2012 Form I-9. Amend a tax return 2012   You must verify that each new employee is legally eligible to work in the United States. Amend a tax return 2012 Both you and the employee must complete the U. Amend a tax return 2012 S. Amend a tax return 2012 Citizenship and Immigration Services (USCIS) Form I-9, Employment Eligibility Verification. Amend a tax return 2012 You can get the form from USCIS offices or from the USCIS website at www. Amend a tax return 2012 uscis. Amend a tax return 2012 gov. Amend a tax return 2012 Call the USCIS at 1-800-375-5283 for more information about your responsibilities. Amend a tax return 2012 Form W-4. Amend a tax return 2012   Each employee must fill out Form W-4, Employee's Withholding Allowance Certificate. Amend a tax return 2012 You will use the filing status and withholding allowances shown on this form to figure the amount of income tax to withhold from your employee's wages. Amend a tax return 2012 For more information, see Publication 15. Amend a tax return 2012 Employees claiming more than 10 withholding allowances. Amend a tax return 2012   An employer of an employee who claims more than 10 withholding allowances for wages paid can use several methods of withholding. Amend a tax return 2012 See section 16 of Publication 15. Amend a tax return 2012 Form W-2 Wage Reporting After the calendar year is over, you must furnish copies of Form W-2, Wage and Tax Statement, to each employee to whom you paid wages during the year. Amend a tax return 2012 You must also send copies to the Social Security Administration. Amend a tax return 2012 See Information Returns, later, for more information on Form W-2. Amend a tax return 2012 Excise Taxes This section describes the excise taxes you may have to pay and the forms you have to file if you do any of the following. Amend a tax return 2012 Manufacture or sell certain products. Amend a tax return 2012 Operate certain kinds of businesses. Amend a tax return 2012 Use various kinds of equipment, facilities, or products. Amend a tax return 2012 Receive payment for certain services. Amend a tax return 2012 For more information on excise taxes, see Publication 510, Excise Taxes. Amend a tax return 2012 Form 720. Amend a tax return 2012   The federal excise taxes reported on Form 720, Quarterly Federal Excise Tax Return, consist of several broad categories of taxes, including the following. Amend a tax return 2012 Environmental taxes. Amend a tax return 2012 Communications and air transportation taxes. Amend a tax return 2012 Fuel taxes. Amend a tax return 2012 Tax on the first retail sale of heavy trucks, trailers, and tractors. Amend a tax return 2012 Manufacturers taxes on the sale or use of a variety of different articles. Amend a tax return 2012 Form 2290. Amend a tax return 2012   There is a federal excise tax on certain trucks, truck tractors, and buses used on public highways. Amend a tax return 2012 The tax applies to vehicles having a taxable gross weight of 55,000 pounds or more. Amend a tax return 2012 Report the tax on Form 2290, Heavy Highway Vehicle Use Tax Return. Amend a tax return 2012 For more information, see the instructions for Form 2290. Amend a tax return 2012 Form 730. Amend a tax return 2012   If you are in the business of accepting wagers or conducting a wagering pool or lottery, you may be liable for the federal excise tax on wagering. Amend a tax return 2012 Use Form 730, Monthly Tax Return for Wagers, to figure the tax on the wagers you receive. Amend a tax return 2012 Form 11-C. Amend a tax return 2012   Use Form 11-C, Occupational Tax and Registration Return for Wagering, to register for any wagering activity and to pay the federal occupational tax on wagering. Amend a tax return 2012 Depositing Taxes You generally have to deposit employment taxes, certain excise taxes, corporate income tax, and S corporation taxes before you file your return. Amend a tax return 2012 Generally, taxpayers are required to deposit taxes through the Electronic Federal Tax Payment System (EFTPS). Amend a tax return 2012 Any business that has a federal tax obligation and requests a new EIN will automatically be enrolled in EFTPS. Amend a tax return 2012 Through the mail, the business will receive an EFTPS PIN package that contains instructions for activating its EFTPS enrollment. Amend a tax return 2012 Information Returns If you make or receive payments in your business, you may have to report them to the IRS on information returns. Amend a tax return 2012 The IRS compares the payments shown on the information returns with each person's income tax return to see if the payments were included in income. Amend a tax return 2012 You must give a copy of each information return you are required to file to the recipient or payer. Amend a tax return 2012 In addition to the forms described below, you may have to use other returns to report certain kinds of payments or transactions. Amend a tax return 2012 For more details on information returns and when you have to file them, see the General Instructions for Certain Information Returns. Amend a tax return 2012 Form 1099-MISC. Amend a tax return 2012   Use Form 1099-MISC, Miscellaneous Income, to report certain payments you make in your trade or business. Amend a tax return 2012 These payments include the following items. Amend a tax return 2012 Payments of $600 or more for services performed for your business by people not treated as your employees, such as subcontractors, attorneys, accountants, or directors. Amend a tax return 2012 Rent payments of $600 or more, other than rents paid to real estate agents. Amend a tax return 2012 Prizes and awards of $600 or more that are not for services, such as winnings on TV or radio shows. Amend a tax return 2012 Royalty payments of $10 or more. Amend a tax return 2012 Payments to certain crew members by operators of fishing boats. Amend a tax return 2012 You also use Form 1099-MISC to report your sales of $5,000 or more of consumer goods to a person for resale anywhere other than in a permanent retail establishment. Amend a tax return 2012 Form W-2. Amend a tax return 2012   You must file Form W-2, Wage and Tax Statement, to report payments to your employees, such as wages, tips, and other compensation, withheld income, social security, and Medicare taxes. Amend a tax return 2012 For more information on what to report on Form W-2, see the Instructions for Forms W-2 and W-3. Amend a tax return 2012 Form 8300. Amend a tax return 2012   You must file Form 8300, Report of Cash Payments Over $10,000 Received in a Trade or Business, if you receive more than $10,000 in cash in one transaction or two or more related business transactions. Amend a tax return 2012 Cash includes U. Amend a tax return 2012 S. Amend a tax return 2012 and foreign coin and currency. Amend a tax return 2012 It also includes certain monetary instruments such as cashier's and traveler's checks and money orders. Amend a tax return 2012 For more information, see Publication 1544, Reporting Cash Payments of Over $10,000 (Received in a Trade or Business). Amend a tax return 2012 Penalties The law provides penalties for not filing returns or paying taxes as required. Amend a tax return 2012 Criminal penalties may be imposed for willful failure to file, tax evasion, or making a false statement. Amend a tax return 2012 Failure to file tax returns. Amend a tax return 2012   If you do not file your tax return by the due date, you may have to pay a penalty. Amend a tax return 2012 The penalty is based on the tax not paid by the due date. Amend a tax return 2012 See your tax return instructions for more information about this penalty. Amend a tax return 2012 Failure to pay tax. Amend a tax return 2012   If you do not pay your taxes by the due date, you will have to pay a penalty for each month, or part of a month, that your taxes are not paid. Amend a tax return 2012 For more information, see your tax return instructions. Amend a tax return 2012 Failure to withhold, deposit, or pay taxes. Amend a tax return 2012   If you do not withhold income, social security, or Medicare taxes from employees, or if you withhold taxes but do not deposit them or pay them to the IRS, you may be subject to a penalty of the unpaid tax, plus interest. Amend a tax return 2012 You may also be subject to penalties if you deposit the taxes late. Amend a tax return 2012 For more information, see Publication 15. Amend a tax return 2012 Failure to follow information reporting requirements. Amend a tax return 2012   The following penalties apply if you are required to file information returns. Amend a tax return 2012 For more information, see the General Instructions for Certain Information Returns. Amend a tax return 2012 Failure to file information returns. Amend a tax return 2012 A penalty applies if you do not file information returns by the due date, if you do not include all required information, or if you report incorrect information. Amend a tax return 2012 Failure to furnish correct payee statements. Amend a tax return 2012 A penalty applies if you do not furnish a required statement to a payee by the due date, if you do not include all required information, or if you report incorrect information. Amend a tax return 2012 Waiver of penalty. Amend a tax return 2012   These penalties will not apply if you can show that the failures were due to reasonable cause and not willful neglect. Amend a tax return 2012   In addition, there is no penalty for failure to include all the required information, or for including incorrect information, on a de minimis number of information returns if you correct the errors by August 1 of the year the returns are due. Amend a tax return 2012 (To be considered de minimis, the number of returns cannot exceed the greater of 10 or ½ of 1% of the total number of returns you are required to file for the year. Amend a tax return 2012 ) Failure to supply taxpayer identification number. Amend a tax return 2012   If you do not include your taxpayer identification number (SSN or EIN) or the taxpayer identification number of another person where required on a return, statement, or other document, you may be subject to a penalty of $50 for each failure. Amend a tax return 2012 You may also be subject to the $50 penalty if you do not give your taxpayer identification number to another person when it is required on a return, statement, or other document. Amend a tax return 2012 Business Expenses You can deduct business expenses on your income tax return. Amend a tax return 2012 These are the current operating costs of running your business. Amend a tax return 2012 To be deductible, a business expense must be both ordinary and necessary. Amend a tax return 2012 An ordinary expense is one that is common and accepted in your field of business, trade, or profession. Amend a tax return 2012 A necessary expense is one that is helpful and appropriate for your business, trade, or profession. Amend a tax return 2012 An expense does not have to be indispensable to be considered necessary. Amend a tax return 2012 The following are brief explanations of some expenses that are of interest to people starting a business. Amend a tax return 2012 There are many other expenses that you may be able to deduct. Amend a tax return 2012 See your form instructions and Publication 535, Business Expenses. Amend a tax return 2012 Business Start-Up Costs Business start-up costs are the expenses you incur before you actually begin business operations. Amend a tax return 2012 Your business start-up costs will depend on the type of business you are starting. Amend a tax return 2012 They may include costs for advertising, travel, surveys, and training. Amend a tax return 2012 These costs are generally capital expenses. Amend a tax return 2012 You usually recover costs for a particular asset (such as machinery or office equipment) through depreciation (discussed next). Amend a tax return 2012 You can elect to deduct up to $5,000 of business start-up costs and $5,000 of organizational costs paid or incurred after October 22, 2004. Amend a tax return 2012 The $5,000 deduction is reduced by the amount your total start-up or organizational costs exceed $50,000. Amend a tax return 2012 Any remaining cost must be amortized. Amend a tax return 2012 For more information about amortizing start-up and organizational costs, see chapter 7 in Publication 535. Amend a tax return 2012 Depreciation If property you acquire to use in your business has a useful life that extends substantially beyond the year it is placed in service, you generally cannot deduct the entire cost as a business expense in the year you acquire it. Amend a tax return 2012 You must spread the cost over more than one tax year and deduct part of it each year. Amend a tax return 2012 This method of deducting the cost of business property is called depreciation. Amend a tax return 2012 Business property you must depreciate includes the following items. Amend a tax return 2012 Office furniture. Amend a tax return 2012 Buildings. Amend a tax return 2012 Machinery and equipment. Amend a tax return 2012 You can choose to deduct a limited amount of the cost of certain depreciable property in the year you place the property in service. Amend a tax return 2012 This deduction is known as the “section 179 deduction. Amend a tax return 2012 ” For more information about depreciation and the section 179 deduction, see Publication 946, How To Depreciate Property. Amend a tax return 2012 Depreciation must be taken in the year it is allowable. Amend a tax return 2012 Allowable depreciation not taken in a prior year cannot be taken in the current year. Amend a tax return 2012 If you do not deduct the correct depreciation, you may be able to make a correction by filing Form 1040X, Amended U. Amend a tax return 2012 S. Amend a tax return 2012 Individual Income Tax Return, or by changing your accounting method. Amend a tax return 2012 For more information on how to correct depreciation deductions, see chapter 1 in Publication 946. Amend a tax return 2012 Business Use of Your Home To deduct expenses related to the business use of part of your home, you must meet specific requirements. Amend a tax return 2012 Even then, your deduction may be limited. Amend a tax return 2012 To qualify to claim expenses for business use of your home, you must meet both the following tests. Amend a tax return 2012 Your use of the business part of your home must be: Exclusive (however, see Exceptions to exclusive use, later), Regular, For your trade or business, AND The business part of your home must be one of the following: Your principal place of business (defined later), A place where you meet or deal with patients, clients, or customers in the normal course of your trade or business, or A separate structure (not attached to your home) you use in connection with your trade or business. Amend a tax return 2012 Exclusive use. Amend a tax return 2012   To qualify under the exclusive use test, you must use a specific area of your home only for your trade or business. Amend a tax return 2012 The area used for business can be a room or other separately identifiable space. Amend a tax return 2012 The space does not need to be marked off by a permanent partition. Amend a tax return 2012   You do not meet the requirements of the exclusive use test if you use the area in question both for business and for personal purposes. Amend a tax return 2012 Exceptions to exclusive use. Amend a tax return 2012   You do not have to meet the exclusive use test if either of the following applies. Amend a tax return 2012 You use part of your home for the storage of inventory or product samples. Amend a tax return 2012 You use part of your home as a daycare facility. Amend a tax return 2012 For an explanation of these exceptions, see Publication 587, Business Use of Your Home (Including Use by Daycare Providers). Amend a tax return 2012 Principal place of business. Amend a tax return 2012   Your home office will qualify as your principal place of business for deducting expenses for its use if you meet the following requirements. Amend a tax return 2012 You use it exclusively and regularly for administrative or management activities of your trade or business. Amend a tax return 2012 You have no other fixed location where you conduct substantial administrative or management activities of your trade or business. Amend a tax return 2012   Alternatively, if you use your home exclusively and regularly for your business, but your home office does not qualify as your principal place of business based on the previous rules, you determine your principal place of business based on the following factors. Amend a tax return 2012 The relative importance of the activities performed at each location. Amend a tax return 2012 If the relative importance factor does not determine your principal place of business, the time spent at each location. Amend a tax return 2012    If, after considering your business locations, your home cannot be identified as your principal place of business, you cannot deduct home office expenses. Amend a tax return 2012 However, for other ways to qualify to deduct home office expenses, see Publication 587. Amend a tax return 2012 Which form do I file?   If you file Schedule C (Form 1040), use Form 8829, Expenses for Business Use of Your Home, to figure your deduction. Amend a tax return 2012 If you file Schedule F (Form 1040) or you are a partner, you can use the worksheet in Publication 587. Amend a tax return 2012 More information. Amend a tax return 2012   For more information about business use of your home, see Publication 587. Amend a tax return 2012 Car and Truck Expenses If you use your car or truck in your business, you can deduct the costs of operating and maintaining it. Amend a tax return 2012 You generally can deduct either your actual expenses or the standard mileage rate. Amend a tax return 2012 Actual expenses. Amend a tax return 2012   If you deduct actual expenses, you can deduct the cost of the following items: Depreciation Lease payments Registration Garage rent Licenses Repairs Gas Oil Tires Insurance Parking fees Tolls   If you use your vehicle for both business and personal purposes, you must divide your expenses between business and personal use. Amend a tax return 2012 You can divide your expenses based on the miles driven for each purpose. Amend a tax return 2012 Example. Amend a tax return 2012 You are the sole proprietor of a flower shop. Amend a tax return 2012 You drove your van 20,000 miles during the year. Amend a tax return 2012 16,000 miles were for delivering flowers to customers and 4,000 miles were for personal use. Amend a tax return 2012 You can claim only 80% (16,000 ÷ 20,000) of the cost of operating your van as a business expense. Amend a tax return 2012 Standard mileage rate. Amend a tax return 2012   Instead of figuring actual expenses, you may be able to use the standard mileage rate to figure the deductible costs of operating your car, van, pickup, or panel truck for business purposes. Amend a tax return 2012 You can use the standard mileage rate for a vehicle you own or lease. Amend a tax return 2012 The standard mileage rate is a specified amount of money you can deduct for each business mile you drive. Amend a tax return 2012 It is announced annually by the IRS. Amend a tax return 2012 To figure your deduction, multiply your business miles by the standard mileage rate for the year. Amend a tax return 2012    Generally, if you use the standard mileage rate, you cannot deduct your actual expenses. Amend a tax return 2012 However, you may be able to deduct business-related parking fees, tolls, interest on your car loan, and certain state and local taxes. Amend a tax return 2012 Choosing the standard mileage rate. Amend a tax return 2012   If you want to use the standard mileage rate for a car you own, you must choose to use it in the first year the car is available for use in your business. Amend a tax return 2012 In later years, you can choose to use either the standard mileage rate or actual expenses. Amend a tax return 2012   If you use the standard mileage rate for a car you lease, you must choose to use it for the entire lease period (including renewals). Amend a tax return 2012 Additional information. Amend a tax return 2012   For more information about the rules for claiming car and truck expenses, see Publication 463, Travel, Entertainment, Gift, and Car Expenses. Amend a tax return 2012 Recordkeeping This part explains why you must keep records, what kinds of records you must keep, and how to keep them. Amend a tax return 2012 It also explains how long you must keep your records for federal tax purposes. Amend a tax return 2012 A sample recordkeeping system is illustrated at the end of this part. Amend a tax return 2012 Why Keep Records? Everyone in business must keep records. Amend a tax return 2012 Good records will help you do the following. Amend a tax return 2012 Monitor the progress of your business. Amend a tax return 2012   You need good records to monitor the progress of your business. Amend a tax return 2012 Records can show whether your business is improving, which items are selling, or what changes you need to make. Amend a tax return 2012 Good records can increase the likelihood of business success. Amend a tax return 2012 Prepare your financial statements. Amend a tax return 2012   You need good records to prepare accurate financial statements. Amend a tax return 2012 These include income (profit and loss) statements and balance sheets. Amend a tax return 2012 These statements can help you in dealing with your bank or creditors and help you manage your business. Amend a tax return 2012 An income statement shows the income and expenses of the business for a given period of time. Amend a tax return 2012 A balance sheet shows the assets, liabilities, and your equity in the business on a given date. Amend a tax return 2012 Identify source of receipts. Amend a tax return 2012   You will receive money or property from many sources. Amend a tax return 2012 Your records can identify the source of your receipts. Amend a tax return 2012 You need this information to separate business from nonbusiness receipts and taxable from nontaxable income. Amend a tax return 2012 Keep track of deductible expenses. Amend a tax return 2012   You may forget expenses when you prepare your tax return unless you record them when they occur. Amend a tax return 2012 Prepare your tax returns. Amend a tax return 2012   You need good records to prepare your tax returns. Amend a tax return 2012 These records must support the income, expenses, and credits you report. Amend a tax return 2012 Generally, these are the same records you use to monitor your business and prepare your financial statements. Amend a tax return 2012 Support items reported on tax returns. Amend a tax return 2012   You must keep your business records available at all times for inspection by the IRS. Amend a tax return 2012 If the IRS examines any of your tax returns, you may be asked to explain the items reported. Amend a tax return 2012 A complete set of records will speed up the examination. Amend a tax return 2012 Kinds of Records To Keep Except in a few cases, the law does not require any specific kind of records. Amend a tax return 2012 You can choose any recordkeeping system suited to your business that clearly shows your income and expenses. Amend a tax return 2012 The business you are in affects the type of records you need to keep for federal tax purposes. Amend a tax return 2012 You should set up your recordkeeping system using an accounting method that clearly shows your income for your tax year. Amend a tax return 2012 See Accounting Method, earlier. Amend a tax return 2012 If you are in more than one business, you should keep a complete and separate set of records for each business. Amend a tax return 2012 A corporation should keep minutes of board of directors' meetings. Amend a tax return 2012 Your recordkeeping system should include a summary of your business transactions. Amend a tax return 2012 This summary is ordinarily made in your books (for example, accounting journals and ledgers). Amend a tax return 2012 Your books must show your gross income, as well as your deductions and credits. Amend a tax return 2012 For most small businesses, the business checkbook (discussed later) is the main source for entries in the business books. Amend a tax return 2012 In addition, you must keep supporting documents, explained later. Amend a tax return 2012 Electronic records. Amend a tax return 2012   All requirements that apply to hard copy books and records also apply to electronic storage systems that maintain tax books and records. Amend a tax return 2012 When you replace hard copy books and records, you must maintain the electronic storage systems for as long as they are material to the administration of tax law. Amend a tax return 2012 An electronic storage system is any system for preparing or keeping your records either by electronic imaging or by transfer to an electronic storage media. Amend a tax return 2012 The electronic storage system must index, store, preserve, retrieve and reproduce the electronically stored books and records in legible format. Amend a tax return 2012 All electronic storage systems must provide a complete and accurate record of your data that is accessible to the IRS. Amend a tax return 2012 Electronic storage systems are also subject to the same controls and retention guidelines as those imposed on your original hard copy books and records. Amend a tax return 2012   The original hard copy books and records may be destroyed provided that the electronic storage system has been tested to establish that the hard copy books and records are being reproduced in compliance with IRS requirements for an electronic storage system and procedures are established to ensure continued compliance with all applicable rules and regulations. Amend a tax return 2012 You still have the responsibility of retaining any other books and records that are required to be retained. Amend a tax return 2012   The IRS may test your electronic storage system, including the equipment used, indexing methodology, software and retrieval capabilities. Amend a tax return 2012 This test is not considered an examination and the results must be shared with you. Amend a tax return 2012 If your electronic storage system meets the requirements mentioned earlier, you will be in compliance. Amend a tax return 2012 If not, you may be subject to penalties for non-compliance, unless you continue to maintain your original hard copy books and records in a manner that allows you and the IRS to determine your correct tax. Amend a tax return 2012 For details on electronic storage system requirements, see Revenue Procedure 97-22, available in Internal Revenue Bulletin 1997-13. Amend a tax return 2012 Supporting Documents Purchases, sales, payroll, and other transactions you have in your business generate supporting documents. Amend a tax return 2012 Supporting documents include sales slips, paid bills, invoices, receipts, deposit slips, and canceled checks. Amend a tax return 2012 These documents contain information you need to record in your books. Amend a tax return 2012 It is important to keep these documents because they support the entries in your books and on your tax return. Amend a tax return 2012 Keep them in an orderly fashion and in a safe place. Amend a tax return 2012 For instance, organize them by year and type of income or expense. Amend a tax return 2012 Gross receipts. Amend a tax return 2012   Gross receipts are the income you receive from your business. Amend a tax return 2012 You should keep supporting documents that show the amounts and sources of your gross receipts. Amend a tax return 2012 Documents that show gross receipts include the following. Amend a tax return 2012 Cash register tapes. Amend a tax return 2012 Bank deposit slips. Amend a tax return 2012 Receipt books. Amend a tax return 2012 Invoices. Amend a tax return 2012 Credit card charge slips. Amend a tax return 2012 Forms 1099-MISC. Amend a tax return 2012 Purchases. Amend a tax return 2012   Purchases are the items you buy and resell to customers. Amend a tax return 2012 If you are a manufacturer or producer, this includes the cost of all raw materials or parts purchased for manufacture into finished products. Amend a tax return 2012 Your supporting documents should show the amount paid and that the amount was for purchases. Amend a tax return 2012 Documents for purchases include the following. Amend a tax return 2012 Canceled checks. Amend a tax return 2012 Cash register tape receipts. Amend a tax return 2012 Credit card sales slips. Amend a tax return 2012 Invoices. Amend a tax return 2012 These records will help you determine the value of your inventory at the end of the year. Amend a tax return 2012 See Publication 538 for information on methods for valuing inventory. Amend a tax return 2012 Expenses. Amend a tax return 2012   Expenses are the costs you incur (other than purchases) to carry on your business. Amend a tax return 2012 Your supporting documents should show the amount paid and that the amount was for a business expense. Amend a tax return 2012 Documents for expenses include the following. Amend a tax return 2012 Canceled checks. Amend a tax return 2012 Cash register tapes. Amend a tax return 2012 Account statements. Amend a tax return 2012 Credit card sales slips. Amend a tax return 2012 Invoices. Amend a tax return 2012 Petty cash slips for small cash payments. Amend a tax return 2012    A petty cash fund allows you to make small payments without having to write checks for small amounts. Amend a tax return 2012 Each time you make a payment from this fund, you should make out a petty cash slip and attach it to your receipt as proof of payment. Amend a tax return 2012 Travel, transportation, entertainment, and gift expenses. Amend a tax return 2012   Specific recordkeeping rules apply to these expenses. Amend a tax return 2012 For more information, see Publication 463. Amend a tax return 2012 Employment taxes. Amend a tax return 2012   There are specific employment tax records you must keep. Amend a tax return 2012 For a list, see Publication 15. Amend a tax return 2012 Assets. Amend a tax return 2012   Assets are the property, such as machinery and furniture you own and use in your business. Amend a tax return 2012 You must keep records to verify certain information about your business assets. Amend a tax return 2012 You need records to figure the annual depreciation and the gain or loss when you sell the assets. Amend a tax return 2012 Your records should show the following information. Amend a tax return 2012 When and how you acquired the asset. Amend a tax return 2012 Purchase price. Amend a tax return 2012 Cost of any improvements. Amend a tax return 2012 Section 179 deduction taken. Amend a tax return 2012 Deductions taken for depreciation. Amend a tax return 2012 Deductions taken for casualty losses, such as losses resulting from fires or storms. Amend a tax return 2012 How you used the asset. Amend a tax return 2012 When and how you disposed of the asset. Amend a tax return 2012 Selling price. Amend a tax return 2012 Expenses of sale. Amend a tax return 2012   The following documents may show this information. Amend a tax return 2012 Purchase and sales invoices. Amend a tax return 2012 Real estate closing statements. Amend a tax return 2012 Canceled checks. Amend a tax return 2012 What if I don't have a canceled check?   If you do not have a canceled check, you may be able to prove payment with certain financial account statements prepared by financial institutions. Amend a tax return 2012 These include account statements prepared for the financial institution by a third party. Amend a tax return 2012 These account statements must be highly legible. Amend a tax return 2012 The following table lists acceptable account statements. Amend a tax return 2012  IF payment is by. Amend a tax return 2012 . Amend a tax return 2012 . Amend a tax return 2012 THEN the statement must show the. Amend a tax return 2012 . Amend a tax return 2012 . Amend a tax return 2012 Check Check number. Amend a tax return 2012 Amount. Amend a tax return 2012 Payee's name. Amend a tax return 2012 Date the check amount was posted to the account by the financial institution. Amend a tax return 2012 Electronic funds transfer Amount transferred. Amend a tax return 2012 Payee's name. Amend a tax return 2012 Date the transfer was posted to the account by the financial institution. Amend a tax return 2012 Credit card Amount charged. Amend a tax return 2012 Payee's name. Amend a tax return 2012 Transaction date. Amend a tax return 2012    Proof of payment of an amount, by itself, does not establish you are entitled to a tax deduction. Amend a tax return 2012 You should also keep other documents, such as credit card sales slips and invoices, to show that you also incurred the cost. Amend a tax return 2012 Recording Business Transactions A good recordkeeping system includes a summary of your business transactions. Amend a tax return 2012 (Your business transactions are shown on the supporting documents just discussed. Amend a tax return 2012 ) Business transactions are ordinarily summarized in books called journals and ledgers. Amend a tax return 2012 You can buy them at your local stationery or office supply store. Amend a tax return 2012 A journal is a book where you record each business transaction shown on your supporting documents. Amend a tax return 2012 You may have to keep separate journals for transactions that occur frequently. Amend a tax return 2012 A ledger is a book that contains the totals from all of your journals. Amend a tax return 2012 It is organized into different accounts. Amend a tax return 2012 Whether you keep journals and ledgers and how you keep them depends on the type of business you are in. Amend a tax return 2012 For example, a recordkeeping system for a small business might include the following items. Amend a tax return 2012 Business checkbook. Amend a tax return 2012 Daily summary of cash receipts. Amend a tax return 2012 Monthly summary of cash receipts. Amend a tax return 2012 Check disbursements journal. Amend a tax return 2012 Depreciation worksheet. Amend a tax return 2012 Employee compensation record. Amend a tax return 2012 The business checkbook is explained next. Amend a tax return 2012 The other items are illustrated later under Sample Record System. Amend a tax return 2012 The system you use to record business transactions will be more effective if you follow good recordkeeping practices. Amend a tax return 2012 For example, record expenses when they occur, and identify the source of recorded receipts. Amend a tax return 2012 Generally, it is best to record transactions on a daily basis. Amend a tax return 2012 Business checkbook. Amend a tax return 2012   One of the first things you should do when you start a business is open a business checking account. Amend a tax return 2012 You should keep your business account separate from your personal checking account. Amend a tax return 2012   The business checkbook is your basic source of information for recording your business expenses. Amend a tax return 2012 You should deposit all daily receipts in your business checking account. Amend a tax return 2012 You should check your account for errors by reconciling it. Amend a tax return 2012 See Reconciling the checking account, later. Amend a tax return 2012   Consider using a checkbook that allows enough space to identify the source of deposits as business income, personal funds, or loans. Amend a tax return 2012 You should also note on the deposit slip the source of the deposit and keep copies of all slips. Amend a tax return 2012   You should make all payments by check to document business expenses. Amend a tax return 2012 Write checks payable to yourself only when making withdrawals from your business for personal use. Amend a tax return 2012 Avoid writing checks payable to cash. Amend a tax return 2012 If you must write a check for cash to pay a business expense, include the receipt for the cash payment in your records. Amend a tax return 2012 If you cannot get a receipt for a cash payment, you should make an adequate explanation in your records at the time of payment. Amend a tax return 2012    Use the business account for business purposes only. Amend a tax return 2012 Indicate the source of deposits and the type of expense in the checkbook. Amend a tax return 2012 Reconciling the checking account. Amend a tax return 2012   When you receive your bank statement, make sure the statement, your checkbook, and your books agree. Amend a tax return 2012 The statement balance may not agree with the balance in your checkbook and books if the statement: Includes bank charges you did not enter in your books and subtract from your checkbook balance, or Does not include deposits made after the statement date or checks that did not clear your account before the statement date. Amend a tax return 2012   By reconciling your checking account, you will: Verify how much money you have in the account, Make sure that your checkbook and books reflect all bank charges and the correct balance in the checking account, and Correct any errors in your bank statement, checkbook, and books. Amend a tax return 2012    You should reconcile your checking account each month. Amend a tax return 2012     Before you reconcile your monthly bank statement, check your own figures. Amend a tax return 2012 Begin with the balance shown in your checkbook at the end of the previous month. Amend a tax return 2012 To this balance, add the total cash deposited during the month and subtract the total cash disbursements. Amend a tax return 2012   After checking your figures, the result should agree with your checkbook balance at the end of the month. Amend a tax return 2012 If the result does not agree, you may have made an error in recording a check or deposit. Amend a tax return 2012 You can find the error by doing the following. Amend a tax return 2012 Adding the amounts on your check stubs and comparing that total with the total in the “amount of check” column in your check disbursements journal. Amend a tax return 2012 If the totals do not agree, check the individual amounts to see if an error was made in your check stub record or in the related entry in your check disbursements journal. Amend a tax return 2012 Adding the deposit amounts in your checkbook. Amend a tax return 2012 Compare that total with the monthly total in your cash receipt book, if you have one. Amend a tax return 2012 If the totals do not agree, check the individual amounts to find any errors. Amend a tax return 2012   If your checkbook and journal entries still disagree, then refigure the running balance in your checkbook to make sure additions and subtractions are correct. Amend a tax return 2012   When your checkbook balance agrees with the balance figured from the journal entries, you may begin reconciling your checkbook with the bank statement. Amend a tax return 2012 Many banks print a reconciliation worksheet on the back of the statement. Amend a tax return 2012   To reconcile your account, follow these steps. Amend a tax return 2012 Compare the deposits listed on the bank statement with the deposits shown in your checkbook. Amend a tax return 2012 Note all differences in the dollar amounts. Amend a tax return 2012 Compare each canceled check, including both check number and dollar amount, with the entry in your checkbook. Amend a tax return 2012 Note all differences in the dollar amounts. Amend a tax return 2012 Mark the check number in the checkbook as having cleared the bank. Amend a tax return 2012 After accounting for all checks returned by the bank, those not marked in your checkbook are your outstanding checks. Amend a tax return 2012 Prepare a bank reconciliation. Amend a tax return 2012 One is illustrated later under Sample Record System. Amend a tax return 2012 Update your checkbook and journals for items shown on the reconciliation as not recorded (such as service charges) or recorded incorrectly. Amend a tax return 2012 At this point, the adjusted bank statement balance should equal your adjusted checkbook balance. Amend a tax return 2012 If you still have differences, check the previous steps to find the errors. Amend a tax return 2012   Table 3. Amend a tax return 2012 Period of Limitations IF you. Amend a tax return 2012 . Amend a tax return 2012 . Amend a tax return 2012   THEN the period is. Amend a tax return 2012 . Amend a tax return 2012 . Amend a tax return 2012 1. Amend a tax return 2012 Owe additional tax and situations (2), (3), and (4), below, do not apply to you   3 years 2. Amend a tax return 2012 Do not report income that you should report and it is more than 25% of the gross income shown on the return   6 years 3. Amend a tax return 2012 File a fraudulent return   Not limited 4. Amend a tax return 2012 Do not file a return   Not limited 5. Amend a tax return 2012 File a claim for credit or refund after you filed your return   Later of: 3 years or  2 years after tax   was paid 6. Amend a tax return 2012 File a claim for a loss from worthless securities or a bad debt deduction   7 years Bookkeeping System You must decide whether to use a single-entry or a double-entry bookkeeping system. Amend a tax return 2012 The single-entry system of bookkeeping is the simplest to maintain, but it may not be suitable for everyone. Amend a tax return 2012 You may find the double-entry system better because it has built-in checks and balances to assure accuracy and control. Amend a tax return 2012 Single-entry. Amend a tax return 2012   A single-entry system is based on the income statement (profit or loss statement). Amend a tax return 2012 It can be a simple and practical system if you are starting a small business. Amend a tax return 2012 The system records the flow of income and expenses through the use of: A daily summary of cash receipts, and Monthly summaries of cash receipts and disbursements. Amend a tax return 2012 Double-entry. Amend a tax return 2012   A double-entry bookkeeping system uses journals and ledgers. Amend a tax return 2012 Transactions are first entered in a journal and then posted to ledger accounts. Amend a tax return 2012 These accounts show income, expenses, assets (property a business owns), liabilities (debts of a business), and net worth (excess of assets over liabilities). Amend a tax return 2012 You close income and expense accounts at the end of each tax year. Amend a tax return 2012 You keep asset, liability, and net worth accounts open on a permanent basis. Amend a tax return 2012   In the double-entry system, each account has a left side for debits and a right side for credits. Amend a tax return 2012 It is self-balancing because you record every transaction as a debit entry in one account and as a credit entry in another. Amend a tax return 2012   Under this system, the total debits must equal the total credits after you post the journal entries to the ledger accounts. Amend a tax return 2012 If the amounts do not balance, you have made an error and you must find and correct it. Amend a tax return 2012   An example of a journal entry exhibiting a payment of rent in October is shown next. Amend a tax return 2012 General Journal Date Description of Entry Debit  Credit Oct. Amend a tax return 2012 5 Rent expense 780. Amend a tax return 2012 00     Cash   780. Amend a tax return 2012 00                 Computerized System There are computer software packages you can use for recordkeeping. Amend a tax return 2012 They can be purchased in many retail stores. Amend a tax return 2012 These packages are very helpful and relatively easy to use; they require very little knowledge of bookkeeping and accounting. Amend a tax return 2012 If you use a computerized system, you must be able to produce sufficient legible records to support and verify entries made on your return and determine your correct tax liability. Amend a tax return 2012 To meet this qualification, the machine-sensible records must reconcile with your books and return. Amend a tax return 2012 These records must provide enough detail to identify the underlying source documents. Amend a tax return 2012 You must also keep all machine-sensible records and a complete description of the computerized portion of your recordkeeping system. Amend a tax return 2012 This documentation must be sufficiently detailed to show all of the following items. Amend a tax return 2012 Functions being performed as the data flows through the system. Amend a tax return 2012 Controls used to ensure accurate and reliable processing. Amend a tax return 2012 Controls used to prevent the unauthorized addition, alteration, or deletion of retained records. Amend a tax return 2012 Charts of accounts and detailed account descriptions. Amend a tax return 2012 See Revenue Procedure 98-25 in Cumulative Bulletin 1998-1 for more information. Amend a tax return 2012 How Long To Keep Records You must keep your records as long as they may be needed for the administration of any provision of the Internal Revenue Code. Amend a tax return 2012 Generally, this means you must keep records that support an item of income or deduction on a return until the period of limitations for that return runs out. Amend a tax return 2012 The period of limitations is the period of time in which you can amend your return to claim a credit or refund, or the IRS can assess additional tax. Amend a tax return 2012 Table 3 contains the periods of limitations that apply to income tax returns. Amend a tax return 2012 Unless otherwise stated, the years refer to the period after the return was filed. Amend a tax return 2012 Returns filed before the due date are treated as filed on the due date. Amend a tax return 2012 Keep copies of your filed tax returns. Amend a tax return 2012 They help in preparing future tax returns and making computations if you file an amended return. Amend a tax return 2012 Employment taxes. Amend a tax return 2012   If you have employees, you must keep all employment tax records for at least 4 years after the date the tax becomes due or is paid, whichever is later. Amend a tax return 2012 For more information about recordkeeping for employment taxes, see Publication 15. Amend a tax return 2012 Assets. Amend a tax return 2012   Keep records relating to property until the period of limitations expires for the year in which you dispose of the property in a taxable disposition. Amend a tax return 2012 You must keep these records to figure any depreciation, amortization, or depletion deduction, and to figure your basis for computing gain or loss when you sell or otherwise dispose of the property. Amend a tax return 2012   Generally, if you received property in a nontaxable exchange, your basis in that property is the same as the basis of the property you gave up, increased by any money you paid. Amend a tax return 2012 You must keep the records on the old property, as well as on the new property, until the period of limitations expires for the year in which you dispose of the new property in a taxable disposition. Amend a tax return 2012 Records for nontax purposes. Amend a tax return 2012   When your records are no longer needed for tax purposes, do not discard them until you check to see if you have to keep them longer for other purposes. Amend a tax return 2012 For example, your insurance company or creditors may require you to keep them longer than the IRS does. Amend a tax return 2012 Sample Record System This example illustrates a single-entry system used by Henry Brown, who is the sole proprietor of a small automobile body shop. Amend a tax return 2012 Henry uses part-time help, has no inventory of items held for sale, and uses the cash method of accounting. Amend a tax return 2012 These sample records should not be viewed as a recommendation of how to keep your records. Amend a tax return 2012 They are intended only to show how one business keeps its records. Amend a tax return 2012 1. Amend a tax return 2012 Daily Summary of Cash Receipts This summary is a record of cash sales for the day. Amend a tax return 2012 It accounts for cash at the end of the day over the amount in the Change and Petty Cash Fund at the beginning of the day. Amend a tax return 2012 Henry takes the cash sales entry from his cash register tape. Amend a tax return 2012 If he had no cash register, he would simply total his cash sale slips and any other cash received that day. Amend a tax return 2012 He carries the total receipts shown in this summary for January 3 ($267. Amend a tax return 2012 80), including cash sales ($263. Amend a tax return 2012 60) and sales tax ($4. Amend a tax return 2012 20), to the Monthly Summary of Cash Receipts. Amend a tax return 2012 Petty cash fund. Amend a tax return 2012   Henry uses a petty cash fund to make small payments without having to write checks for small amounts. Amend a tax return 2012 Each time he makes a payment from this fund, he makes out a petty cash slip and attaches it to his receipt as proof of payment. Amend a tax return 2012 He sets up a fixed amount ($50) in his petty cash fund. Amend a tax return 2012 The total of the unspent petty cash and the amounts on the petty cash slips should equal the fixed amount of the fund. Amend a tax return 2012 When the totals on the petty cash slips approach the fixed amount, he brings the cash in the fund back to the fixed amount by writing a check to “Petty Cash” for the total of the outstanding slips. Amend a tax return 2012 (See the Check Disbursements Journal entry for check number 92. Amend a tax return 2012 ) This restores the fund to its fixed amount of $50. Amend a tax return 2012 He then summarizes the slips and enters them in the proper columns in the monthly check disbursements journal. Amend a tax return 2012 2. Amend a tax return 2012 Monthly Summary of Cash Receipts This shows the income activity for the month. Amend a tax return 2012 Henry carries the total monthly net sales shown in this summary for January ($4,865. Amend a tax return 2012 05) to his Annual Summary. Amend a tax return 2012 To figure total monthly net sales, Henry reduces the total monthly receipts by the sales tax imposed on his customers and turned over to the state. Amend a tax return 2012 He cannot take a deduction for sales tax turned over to the state because he only collected the tax. Amend a tax return 2012 He does not include the tax in his income. Amend a tax return 2012 3. Amend a tax return 2012 Check Disbursements Journal Henry enters checks drawn on the business checking account in the Check Disbursements Journal each day. Amend a tax return 2012 All checks are prenumbered and each check number is listed and accounted for in the column provided in the journal. Amend a tax return 2012 Frequent expenses have their own headings across the sheet. Amend a tax return 2012 He enters in a separate column expenses that require comparatively numerous or large payments each month, such as materials, gross payroll, and rent. Amend a tax return 2012 Under the General Accounts column, he enters small expenses that normally have only one or two monthly payments, such as licenses and postage. Amend a tax return 2012 Henry does not pay personal or nonbusiness expenses by checks drawn on the business account. Amend a tax return 2012 If he did, he would record them in the journal, even though he could not deduct them as business expenses. Amend a tax return 2012 Henry carries the January total of expenses for materials ($1,083. Amend a tax return 2012 50) to the Annual Summary. Amend a tax return 2012 Similarly, he enters the monthly total of expenses for telephone, truck/auto, etc. Amend a tax return 2012 , in the appropriate columns of that summary. Amend a tax return 2012 4. Amend a tax return 2012 Employee Compensation Record This record shows the following information. Amend a tax return 2012 The number of hours Henry's employee worked in a pay period. Amend a tax return 2012 The employee's total pay for the period. Amend a tax return 2012 The deductions Henry withheld in figuring the employee's net pay. Amend a tax return 2012 The monthly gross payroll. Amend a tax return 2012 Henry carries the January gross payroll ($520) to the Annual Summary. Amend a tax return 2012 5. Amend a tax return 2012 Annual Summary This annual summary of monthly cash receipts and expense totals provides the final amounts to enter on Henry's tax return. Amend a tax return 2012 He figures the cash receipts total from the total of monthly cash receipts shown in the Monthly Summary of Cash Receipts. Amend a tax return 2012 He figures the expense totals from the totals of monthly expense items shown in the Check Disbursements Journal. Amend a tax return 2012 As in the journal, he keeps each major expense in a separate column. Amend a tax return 2012 Henry carries the cash receipts total shown in the annual summary ($47,440. Amend a tax return 2012 9