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Amended Tax Return 2012

How Do I Amend My 2012 Tax Return OnlineFile Form 1040ezFederal Tax Return FormsHelp With 1040xRefile Taxes 2012Filing Income Tax ReturnH&r Block Free ReturnTax Forms 1040ezAmmended Tax ReturnsH And R BlockIrs Tax Forms 2012 1040aMilitary Tax Return CalculatorHow Can I File My 2011 TaxesFree Fed And State EfileFile Free Federal And State TaxesTaxslayer Free For MilitaryBack Tax Filing1040x Tax Return For Prior Year InstructionsBack Taxes HelpAmend 2011 TaxFree E File Form 4868Free Online State TaxTax Forms Online 2012File An Extension For 2011 Taxes Online2012 Income Tax BookletOnline Tax SoftwareFile 2009 Taxes TurbotaxAmended 2009 Tax ReturnH&r Tax SoftwareIrs Gov Form 10401040ez Online1040ez Worksheet Line F1040 EzHow To Complete 1040xIrs For 1040ez1040ezFile Federal And State Taxes Free OnlineHow To Amend Tax Return OnlineFree E File Federal And State TaxesIrs Web Page Income Tax Form 2012

Amended Tax Return 2012

Amended tax return 2012 Index A Aircraft, Cars, Boats, and Aircraft Annuities, Annuities, Interests for Life or Terms of Years, Remainders, and Reversions Annuity contracts, Certain Life Insurance and Annuity Contracts Antiques, Paintings, Antiques, and Other Objects of Art Appraisals, Appraisals Cost of, Cost of appraisals. Amended tax return 2012 IRS review of, Internal Revenue Service Review of Appraisals Qualified appraisal, Qualified Appraisal Appraiser, Qualified appraiser. Amended tax return 2012 Art objects, Paintings, Antiques, and Other Objects of Art Valued at $20,000 or more, Art valued at $20,000 or more. Amended tax return 2012 Valued at $50,000 or more, Art valued at $50,000 or more. Amended tax return 2012 Assistance (see Tax help) B Boats, Cars, Boats, and Aircraft Bonds, Stocks and Bonds Books, Books. Amended tax return 2012 Business, interest in, Interest in a Business C Cars, Cars, Boats, and Aircraft Clothing, used, Used Clothing, Deduction over $500 for certain clothing or household items. Amended tax return 2012 Coins, Coin collections. Amended tax return 2012 Collections, Collections Books, Books. Amended tax return 2012 Coins, Coin collections. Amended tax return 2012 Stamps, Stamp collections. Amended tax return 2012 Comments on publication, Comments and suggestions. Amended tax return 2012 Comparable properties, sales of, Sales of Comparable Properties, Selection of Comparable Sales Conservation contribution, Conservation purposes. Amended tax return 2012 Cost, Cost or Selling Price of the Donated Property Rate of increase or decrease, Rate of increase or decrease in value. Amended tax return 2012 Terms of purchase or sale, Terms of the purchase or sale. Amended tax return 2012 D Date of contribution, Date of contribution. Amended tax return 2012 Deductions of more than $5,000, Deductions of More Than $5,000 Deductions of more than $500,000, Deductions of More Than $500,000 F Fair market value, What Is Fair Market Value (FMV)? Comparable properties, sales of, Sales of Comparable Properties Cost, Cost or Selling Price of the Donated Property Date of contribution, Date of contribution. Amended tax return 2012 Determining FMV, Determining Fair Market Value Opinions of experts, Opinions of Experts Problems in determining FMV, Problems in Determining Fair Market Value Replacement cost, Replacement Cost Form 8283, Form 8283 Formulas, use in valuing property, Determining Fair Market Value Free tax services, How To Get Tax Help Future events, effect on value, Future Events H Help (see Tax help) Historic building, Building in registered historic district. Amended tax return 2012 Household goods, Household Goods, Deduction over $500 for certain clothing or household items. Amended tax return 2012 I Interest in a business, Interest in a Business Inventory, Inventory IRS review of appraisals, Internal Revenue Service Review of Appraisals Exception, Exception. Amended tax return 2012 J Jewelry and gems, Jewelry and Gems L Life insurance, Certain Life Insurance and Annuity Contracts M Market conditions, effect on value, Unusual Market Conditions More information (see Tax help) O Opinions of experts, Opinions of Experts P Paintings, Paintings, Antiques, and Other Objects of Art Partial interest, Partial Interest in Property Not in Trust Past events, effect on value, Using Past Events to Predict the Future Patents, Patents Penalties: Imposed on appraiser, Appraiser penalties. Amended tax return 2012 Imposed on taxpayer, Penalty Publications (see Tax help) Publicly traded securities, Publicly traded securities. Amended tax return 2012 Q Qualified appraisal, Qualified Appraisal Qualified appraiser, Qualified appraiser. Amended tax return 2012 Qualified conservation contribution, Qualified Conservation Contribution R Real estate, Real Estate Remainder interests, Annuities, Interests for Life or Terms of Years, Remainders, and Reversions Replacement cost, Replacement Cost Reversion interests, Annuities, Interests for Life or Terms of Years, Remainders, and Reversions S Stamps, Stamp collections. Amended tax return 2012 Statement of Value, Exception. Amended tax return 2012 Stocks, Stocks and Bonds Suggestions for publication, Comments and suggestions. Amended tax return 2012 T Tax help, How To Get Tax Help Taxpayer Advocate, Contacting your Taxpayer Advocate. Amended tax return 2012 TTY/TDD information, How To Get Tax Help U Used clothing, Used Clothing, Deduction over $500 for certain clothing or household items. Amended tax return 2012 V Valuation of property, Valuation of Various Kinds of Property Annuities, Annuities, Interests for Life or Terms of Years, Remainders, and Reversions Cars, boats, and aircraft, Cars, Boats, and Aircraft Collections, Collections Household goods, Household Goods Interest in a business, Interest in a Business Inventory, Inventory Jewelry and gems, Jewelry and Gems Life insurance and annuity contracts, Certain Life Insurance and Annuity Contracts Paintings, antiques, art objects, Paintings, Antiques, and Other Objects of Art Partial interest in property, Partial Interest in Property Not in Trust Real estate, Real Estate Remainder interests, Annuities, Interests for Life or Terms of Years, Remainders, and Reversions Reversion interests, Annuities, Interests for Life or Terms of Years, Remainders, and Reversions Stocks and bonds, Stocks and Bonds Terms of years, Annuities, Interests for Life or Terms of Years, Remainders, and Reversions Used clothing, Used Clothing Valuation of property: Patents, Patents Prev  Up     Home   More Online Publications
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TEB Post-Issuance Compliance: Some Basic Concepts

Tax Exempt Bonds (TEB) focuses on providing participants in the municipal bond industry with quality service to assist issuers and conduit borrowers in understanding their tax responsibilities.  As part of that service, TEB is providing the following basic information for issuers of tax-advantaged bonds with respect to their post-issuance compliance requirements.  Issuers may use this basic information to establish due diligence practices to monitor tax compliance throughout the period that their bonds are outstanding.  However, issuers may not cite this basic information as an authoritative source.  TEB recommends that issuers review this basic information in consultation with their counsel.

Generally

Tax-advantaged bonds (tax-exempt, tax credit, and direct pay) are bonds that receive preferential tax treatment.  These bonds, issued by or on behalf of state and local governments, are subject to applicable federal tax requirements both at the time of issuance and for so long as the bonds remain outstanding.  An issuer or other party’s failure to comply with any applicable federal tax requirement with respect to tax-advantaged bonds jeopardizes the preferential tax status of those bonds.  

Compliance with certain applicable federal tax requirements normally occurs at the closing of the bond transaction, while other federal tax requirements require on-going monitoring after the issuance of the bonds.  Issuance related requirements include filing a Form 8038 series information return ( 8038, 8038-G, 8038-GC, 8038-B, or 8038-TC) and the issuer having reasonable expectations of on-going post-issuance compliance.  Additional issuance related requirements might include volume cap allocation limits and public approval of the bond issue.

Post-issuance federal tax requirements generally fall into two categories:  (1) qualified use of proceeds and financed property; and (2) arbitrage yield restriction and rebate.  Qualified use requirements require monitoring of the various direct and indirect uses of bond-financed property over the life of the bonds and calculations of the percentage of nonqualified uses.  Arbitrage requirements also require monitoring over the life of the bonds to determine whether both the yield on investments acquired with bond proceeds are properly restricted and whether the issuer must file Form 8038-T to pay a yield reduction payment and/or rebate payment.

Some federal tax requirements that are generally issuance related might require some level of post-issuance due diligence monitoring.  For example, adjustments to the determination of issue price for federal tax purposes can affect compliance with volume cap allocation, arbitrage yield restriction, and other federal tax requirements.  Similarly, some level of post-issuance monitoring may be required to determine compliance with the issuance costs limitations applicable to qualified private activity bonds.

Importance of Post-Issuance Compliance

The on-going nature of post-issuance compliance requirements applicable to tax-advantaged bonds requires issuers to actively monitor compliance throughout the entire period their bonds remain outstanding.  This due diligence will significantly improve the issuer’s ability to identify noncompliance and prevent violations from occurring, or timely correct identified violations (when prevention is not possible), to ensure the continued tax-advantaged status of the bonds. 

Written Procedures for Monitoring Compliance

Issuers should adopt written procedures, applicable to all bond issues, which go beyond reliance on tax certificates included in bond documents provided at closing.  Sole reliance on the closing bond documents may result in procedures insufficiently detailed or not incorporated into an issuer’s operations.  Written procedures should contain certain key characteristics, including making provision for:

  • Due diligence review at regular intervals;
  • Identifying the official or employee responsible for review;
  • Training of the responsible official/employee;
  • Retention of adequate records to substantiate compliance (e.g., records relating to expenditure of proceeds);
  • Procedures reasonably expected to timely identify noncompliance; and
  • Procedures ensuring that the issuer will take steps to timely correct noncompliance.

The goal of establishing and following written procedures is to identify and resolve noncompliance, on a timely basis, to preserve the preferential status of tax-advantaged bonds.  Generally, an issuer that has established and followed comprehensive written procedures to promote post-issuance compliance is less likely, than an issuer that does not have such procedures, to violate the federal tax requirements related to its bonds.

How Does the IRS Promote Post-Issuance Compliance?

TEB administers a Voluntary Closing Agreement Program (TEB VCAP) to assist issuers in resolving federal tax violations related to their bonds as described in Notice 2008-31 and IRM section 7.2.3

Generally, an issuer will receive more favorable resolution terms under TEB VCAP than for the same tax violation discovered during an examination of the bonds.  In addition, an issuer that identifies a violation in accordance with the implementation of its written post-issuance compliance procedures can generally expect to receive more favorable treatment in resolving its tax violation under TEB VCAP than if the issuer has not implemented such procedures.

TEB uses compliance check questionnaires to evaluate compliance trends and practices issuers use to monitor compliance with federal tax requirements.  For example, in May 2011 TEB initiated a questionnaire project on advance refundings.  Generally, the design of the questionnaires is to gather information from a segment of the municipal bond market.  While these questionnaires are not examinations of  specific bond issues, the data collected allows TEB to develop new voluntary compliance and education programs as well as to identify future compliance projects.

Issuers of tax-advantaged bonds are required to file a Form 8038 series information return.  All Form 8038 series returns include questions regarding whether the issuer has established written procedures to timely identify and correct violations and to ensure compliance with the arbitrage yield restriction and rebate requirements.
 
The Advisory Committee on Tax Exempt and Government Entities (ACT) issued several reports related to post-issuance compliance.  Specific ACT recommendations on post-issuance compliance procedures are included in an exhibit to its June 2007 report.

Page Last Reviewed or Updated: 08-Jan-2014

The Amended Tax Return 2012

Amended tax return 2012 10. Amended tax return 2012   Retirement Savings Contributions Credit (Saver's Credit) Table of Contents Full-time student. Amended tax return 2012 Adjusted gross income. Amended tax return 2012 Distributions received by spouse. Amended tax return 2012 Testing period. Amended tax return 2012 If you or your employer make eligible contributions (defined later) to a retirement plan, you may be able to take a credit of up to $1,000 (up to $2,000 if filing jointly). Amended tax return 2012 This credit could reduce the federal income tax you pay dollar for dollar. Amended tax return 2012 Can you claim the credit?   If you or your employer make eligible contributions to a retirement plan, you can claim the credit if all of the following apply. Amended tax return 2012 You are not under age 18. Amended tax return 2012 You are not a full-time student (explained next). Amended tax return 2012 No one else, such as your parent(s), claims an exemption for you on their tax return. Amended tax return 2012 Your adjusted gross income (defined later) is not more than: $59,000 for 2013 ($60,000 for 2014) if your filing status is married filing jointly, $44,250 for 2013 ($45,000 for 2014) if your filing status is head of household (with qualifying person), or $29,500 for 2013 ($30,000 for 2014) if your filing status is single, married filing separately, or qualifying widow(er) with dependent child. Amended tax return 2012 Full-time student. Amended tax return 2012   You are a full-time student if, during some part of each of 5 calendar months (not necessarily consecutive) during the calendar year, you are either: A full-time student at a school that has a regular teaching staff, course of study, and regularly enrolled body of students in attendance, or A student taking a full-time, on-farm training course given by either a school that has a regular teaching staff, course of study, and regularly enrolled body of students in attendance, or a state, county, or local government. Amended tax return 2012 You are a full-time student if you are enrolled for the number of hours or courses the school considers to be full-time. Amended tax return 2012 Adjusted gross income. Amended tax return 2012   This is generally the amount on line 38 of your 2013 Form 1040 or line 22 of your 2013 Form 1040A. Amended tax return 2012 However, you must add to that amount any exclusion or deduction claimed for the year for: Foreign earned income, Foreign housing costs, Income for bona fide residents of American Samoa, and Income from Puerto Rico. Amended tax return 2012 Eligible contributions. Amended tax return 2012   These include: Contributions to a traditional or Roth IRA, Elective deferrals, including amounts designated as after-tax Roth contributions, to: A 401(k) plan (including a SIMPLE 401(k)), A section 403(b) annuity, An eligible deferred compensation plan of a state or local government (a governmental 457 plan), A SIMPLE IRA plan, or A salary reduction SEP, and Contributions to a section 501(c)(18) plan. Amended tax return 2012 They also include voluntary after-tax employee contributions to a tax-qualified retirement plan or a section 403(b) annuity. Amended tax return 2012 For purposes of the credit, an employee contribution will be voluntary as long as it is not required as a condition of employment. Amended tax return 2012 Reducing eligible contributions. Amended tax return 2012   Reduce your eligible contributions (but not below zero) by the total distributions you received during the testing period (defined later) from any IRA, plan, or annuity included earlier under Eligible contributions. Amended tax return 2012 Also reduce your eligible contributions by any distribution from a Roth IRA that is not rolled over, even if the distribution is not taxable. Amended tax return 2012      Do not reduce your eligible contributions by any of the following: The portion of any distribution which is not includible in income because it is a trustee-to-trustee transfer or a rollover distribution. Amended tax return 2012 Any distribution that is a return of a contribution to an IRA (including a Roth IRA) made during the year for which you claim the credit if: The distribution is made before the due date (including extensions) of your tax return for that year, You do not take a deduction for the contribution, and The distribution includes any income attributable to the contribution. Amended tax return 2012 Loans from a qualified employer plan treated as a distribution. Amended tax return 2012 Distributions of excess contributions or deferrals (and income attributable to excess contributions and deferrals). Amended tax return 2012 Distributions of dividends paid on stock held by an employee stock ownership plan under section 404(k). Amended tax return 2012 Distributions from an eligible retirement plan that are converted or rolled over to a Roth IRA. Amended tax return 2012 Distributions from a military retirement plan. Amended tax return 2012 Distributions received by spouse. Amended tax return 2012   Any distributions your spouse receives are treated as received by you if you file a joint return with your spouse both for the year of the distribution and for the year for which you claim the credit. Amended tax return 2012 Testing period. Amended tax return 2012   The testing period consists of: The year in which you claim the credit, The 2 years before the year in which you claim the credit, and The period after the end of the year in which you claim the credit and before the due date of the return (including extensions) for filing your return for the year in which you claimed the credit. Amended tax return 2012 Example. Amended tax return 2012 You and your spouse filed joint returns in 2011 and 2012, and plan to do so in 2013 and 2014. Amended tax return 2012 You received a taxable distribution from a qualified plan in 2011 and a taxable distribution from an eligible section 457(b) deferred compensation plan in 2012. Amended tax return 2012 Your spouse received taxable distributions from a Roth IRA in 2013 and tax-free distributions from a Roth IRA in 2014 before April 15. Amended tax return 2012 You made eligible contributions to an IRA in 2013 and you otherwise qualify for this credit. Amended tax return 2012 You must reduce the amount of your qualifying contributions in 2013 by the total of the distributions you and your spouse received in 2011, 2012, 2013, and 2014. Amended tax return 2012 Maximum eligible contributions. Amended tax return 2012   After your contributions are reduced, the maximum annual contribution on which you can base the credit is $2,000 per person. Amended tax return 2012 Effect on other credits. Amended tax return 2012   The amount of this credit will not change the amount of your refundable tax credits. Amended tax return 2012 A refundable tax credit, such as the earned income credit or the additional child tax credit, is an amount that you would receive as a refund even if you did not otherwise owe any taxes. Amended tax return 2012 Maximum credit. Amended tax return 2012   This is a nonrefundable credit. Amended tax return 2012 The amount of the credit in any year cannot be more than the amount of tax that you would otherwise pay (not counting any refundable credits or the adoption credit) in any year. Amended tax return 2012 If your tax liability is reduced to zero because of other nonrefundable credits, such as the education credits, then you will not be entitled to this credit. Amended tax return 2012 How to figure and report the credit. Amended tax return 2012   The amount of the credit you can get is based on the contributions you make and your credit rate. Amended tax return 2012 The credit rate can be as low as 10% or as high as 50%. Amended tax return 2012 Your credit rate depends on your income and your filing status. Amended tax return 2012 See Form 8880, Credit for Qualified Retirement Savings Contributions, to determine your credit rate. Amended tax return 2012   The maximum contribution taken into account is $2,000 per person. Amended tax return 2012 On a joint return, up to $2,000 is taken into account for each spouse. Amended tax return 2012   Figure the credit on Form 8880. Amended tax return 2012 Report the credit on line 50 of your Form 1040 or line 32 of your Form 1040A, and attach Form 8880 to your return. Amended tax return 2012 Prev  Up  Next   Home   More Online Publications