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Can I Still E File 2011 Taxes

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Can I Still E File 2011 Taxes

Can i still e file 2011 taxes 4. Can i still e file 2011 taxes   Other Section 501(c) Organizations Table of Contents Introduction 501(c)(4) - Civic Leagues and Social Welfare OrganizationsSpecific Organizations 501(c)(5) - Labor, Agricultural and Horticultural OrganizationsLabor Organizations Agricultural and Horticultural Organizations 501(c)(6) - Business Leagues, etc. Can i still e file 2011 taxes Line of business. Can i still e file 2011 taxes Examples. Can i still e file 2011 taxes Improvement of business conditions. Can i still e file 2011 taxes Exception for local legislation. Can i still e file 2011 taxes De minimis exception. Can i still e file 2011 taxes Grass roots lobbying. Can i still e file 2011 taxes 501(c)(7) - Social and Recreation ClubsLimited membership. Can i still e file 2011 taxes Support. Can i still e file 2011 taxes Facilities open to public. Can i still e file 2011 taxes Gross receipts from nonmembership sources. Can i still e file 2011 taxes Gross receipts. Can i still e file 2011 taxes Nontraditional activities. Can i still e file 2011 taxes 501(c)(8) and 501(c)(10) - Fraternal Beneficiary Societies and Domestic Fraternal SocietiesFraternal Beneficiary Societies (501(c)(8)) Domestic Fraternal Societies (501(c)(10)) 501(c)(4), 501(c)(9), and 501(c)(17) - Employees' AssociationsLocal Employees' Associations (501(c)(4)) Voluntary Employees' Beneficiary Associations (501(c)(9)) Supplemental Unemployment Benefit Trusts (501(c)(17)) 501(c)(12) - Local Benevolent Life Insurance Associations, Mutual Irrigation and Telephone Companies, and Like OrganizationsMembership. Can i still e file 2011 taxes Losses and expenses. Can i still e file 2011 taxes Distributions of proceeds. Can i still e file 2011 taxes The 85% Requirement Local Life Insurance Associations Mutual or Cooperative Associations 501(c)(13) - Cemetery CompaniesBuying cemetery property. Can i still e file 2011 taxes Perpetual care organization. Can i still e file 2011 taxes Care of individual plots. Can i still e file 2011 taxes 501(c)(14) - Credit Unions and Other Mutual Financial OrganizationsState-Chartered Credit Unions Other Mutual Financial Organizations 501(c)(19) - Veterans' Organizations 501(c)(20) - Group Legal Services Plan Organizations 501(c)(21) - Black Lung Benefit TrustsExcise taxes. Can i still e file 2011 taxes 501(c)(2) - Title-Holding Corporations for Single Parent CorporationsExpenses. Can i still e file 2011 taxes Waiver of payment of income. Can i still e file 2011 taxes 501(c)(25) - Title-Holding Corporations or Trusts for Multiple Parent CorporationsUnrelated Business Income 501(c)(26) - State-Sponsored High-Risk Health Coverage Organizations 501(c)(27) - Qualified State-Sponsored Workers' Compensation Organizations 501(c)(29) - CO-OP Health Insurance Issuers New Guidance for IRC 501(c)(29) Qualified Nonprofit Health Insurance Issuers General Requirements for Exemption under 501(c)(29) and Annual Filing Requirement Additional Guidance for Prospective 501(c)(29) Organizations Introduction This chapter contains specific information for certain organizations described in section 501(c), other than those organizations that are described in section 501(c)(3). Can i still e file 2011 taxes Section 501(c)(3) organizations are covered in chapter 3 of this publication. Can i still e file 2011 taxes The Table of Contents at the beginning of this publication, as well as the Organization Reference Chart, may help you locate at a glance the type of organization discussed in this chapter. Can i still e file 2011 taxes 501(c)(4) - Civic Leagues and Social Welfare Organizations If your organization is not organized for profit and will be operated primarily to promote social welfare to benefit the community, you should file Form 1024 to apply for recognition of exemption from federal income tax under section 501(c)(4). Can i still e file 2011 taxes The discussion that follows describes the information you must provide when applying. Can i still e file 2011 taxes For application procedures, see chapter 1. Can i still e file 2011 taxes To qualify for exemption under section 501(c)(4), the organization's net earnings must be devoted primarily to charitable, educational, or recreational purposes. Can i still e file 2011 taxes In addition, no part of the organization's net earnings can inure to the benefit of any private shareholder or individual. Can i still e file 2011 taxes If the organization provides an excess benefit to certain persons, an excise tax may be imposed. Can i still e file 2011 taxes See Excise tax on excess benefit transactions , under Excess Benefit Transactions in chapter 5 for more information about this tax. Can i still e file 2011 taxes Examples. Can i still e file 2011 taxes   Types of organizations that are considered to be social welfare organizations are civic associations and volunteer fire companies. Can i still e file 2011 taxes Nonprofit operation. Can i still e file 2011 taxes   You must submit evidence that your organization is organized and will be operated on a nonprofit basis. Can i still e file 2011 taxes However, such evidence, including the fact that your organization is organized under a state law relating to nonprofit corporations, will not in itself establish a social welfare purpose. Can i still e file 2011 taxes Social welfare. Can i still e file 2011 taxes   To establish that your organization is organized primarily to promote social welfare, you should submit evidence with your application showing that your organization will operate primarily to further (in some way) the common good and general welfare of the people of the community (such as by bringing about civic betterment and social improvements). Can i still e file 2011 taxes   An organization that restricts the use of its facilities to employees of selected corporations and their guests is primarily benefiting a private group rather than the community. Can i still e file 2011 taxes It therefore does not qualify as a section 501(c)(4) organization. Can i still e file 2011 taxes Similarly, an organization formed to represent member-tenants of an apartment complex does not qualify, since its activities benefit the member-tenants and not all tenants in the community. Can i still e file 2011 taxes However, an organization formed to promote the legal rights of all tenants in a particular community may qualify under section 501(c)(4) as a social welfare organization. Can i still e file 2011 taxes Political activity. Can i still e file 2011 taxes   Promoting social welfare does not include direct or indirect participation or intervention in political campaigns on behalf of or in opposition to any candidate for public office. Can i still e file 2011 taxes However, if you submit proof that your organization is organized primarily to promote social welfare, it can obtain exemption even if it participates legally in some political activity on behalf of or in opposition to candidates for public office. Can i still e file 2011 taxes See the discussion in chapter 2 under Political Organization Income Tax Return . Can i still e file 2011 taxes Social or recreational activity. Can i still e file 2011 taxes   If social activities will be the primary purpose of your organization, you should not file an application for exemption as a social welfare organization but should file for exemption as a social club described in section 501(c)(7). Can i still e file 2011 taxes Retirement benefit program. Can i still e file 2011 taxes   An organization established by its members that has as its primary activity providing supplemental retirement benefits to its members or death benefits to their beneficiaries does not qualify as an exempt social welfare organization. Can i still e file 2011 taxes It may qualify under another paragraph of section 501(c) depending on all the facts. Can i still e file 2011 taxes   However, a nonprofit association that is established, maintained, and funded by a local government to provide the only retirement benefits to a class of employees may qualify as a social welfare organization under section 501(c)(4). Can i still e file 2011 taxes Tax treatment of donations. Can i still e file 2011 taxes   Donations to volunteer fire companies are deductible on the donor's federal income tax return, but only if made for exclusively public purposes. Can i still e file 2011 taxes Contributions to civic leagues or other section 501(c)(4) organizations generally are not deductible as charitable contributions for federal income tax purposes. Can i still e file 2011 taxes They may be deductible as trade or business expenses, if ordinary and necessary in the conduct of the taxpayer's business. Can i still e file 2011 taxes However, see Deduction not allowed for dues used for political or legislative activities , under 501(c)(6) - Business Leagues, etc. Can i still e file 2011 taxes for more information. Can i still e file 2011 taxes For more information on social welfare organizations, see Life Cycle of a Social Welfare Organization at IRS. Can i still e file 2011 taxes gov. Can i still e file 2011 taxes Specific Organizations The following information should be contained in the application form and accompanying statements of certain types of civic leagues or social welfare organizations. Can i still e file 2011 taxes Volunteer fire companies. Can i still e file 2011 taxes   If your organization wishes to obtain exemption as a volunteer fire company or similar organization, you should submit evidence that its members are actively engaged in fire fighting and similar disaster assistance, whether it actually owns the fire fighting equipment, and whether it provides any assistance for its members, such as death and medical benefits in case of injury to them. Can i still e file 2011 taxes   If your organization does not have an independent social purpose, such as providing recreational facilities for members, it may be exempt under section 501(c)(3). Can i still e file 2011 taxes In this event, your organization should file Form 1023. Can i still e file 2011 taxes Homeowners' associations. Can i still e file 2011 taxes   A membership organization formed by a real estate developer to own and maintain common green areas, streets, and sidewalks and to enforce covenants to preserve the appearance of the development should show that it is operated for the benefit of all the residents of the community. Can i still e file 2011 taxes The term community generally refers to a geographical unit recognizable as a governmental subdivision, unit, or district thereof. Can i still e file 2011 taxes Whether a particular association meets the requirement of benefiting a community depends on the facts and circumstances of each case. Can i still e file 2011 taxes Even if an area represented by an association is not a community, the association can still qualify for exemption if its activities benefit a community. Can i still e file 2011 taxes   The association should submit evidence that areas such as roadways and park land that it owns and maintains are open to the general public and not just its own members. Can i still e file 2011 taxes It also must show that it does not engage in exterior maintenance of private homes. Can i still e file 2011 taxes   A homeowners' association that is not exempt under section 501(c)(4) and that is a condominium management association, a residential real estate management association, or a timeshare association generally can elect under the provisions of section 528 to receive certain tax benefits that, in effect, permit it to exclude its exempt function income from its gross income. Can i still e file 2011 taxes Other organizations. Can i still e file 2011 taxes   Other nonprofit organizations that qualify as social welfare organizations include: An organization operating an airport that is on land owned by a local government, which supervises the airport's operation, and that serves the general public in an area with no other airport, A community association that works to improve public services, housing, and residential parking; publishes a free community newspaper; sponsors a community sports league, holiday programs, and meetings; and contracts with a private security service to patrol the community, A community association devoted to preserving the community's traditions, architecture, and appearance by representing it before the local legislature and administrative agencies in zoning, traffic, and parking matters, An organization that tries to encourage industrial development and relieve unemployment in an area by making loans to businesses so they will relocate to the area, and An organization that holds an annual festival of regional customs and traditions. Can i still e file 2011 taxes 501(c)(5) - Labor, Agricultural and Horticultural Organizations If you are a member of an organization that wants to obtain recognition of exemption from federal income tax as a labor, agricultural, or horticultural organization, you should submit an application on Form 1024. Can i still e file 2011 taxes You must indicate in your application for exemption and accompanying statements that no part of the organization's net earnings will inure to the benefit of any member. Can i still e file 2011 taxes In addition, you should follow the procedure for obtaining recognition of exempt status described in chapter 1. Can i still e file 2011 taxes Submit any additional information that may be required, as described in this section. Can i still e file 2011 taxes Tax treatment of donations. Can i still e file 2011 taxes   Contributions to labor, agricultural, and horticultural organizations are not deductible as charitable contributions on the donor's federal income tax return. Can i still e file 2011 taxes However, such payments may be deductible as business expenses if they are ordinary and necessary in the conduct of the taxpayer's trade or business. Can i still e file 2011 taxes For more information about certain limits affecting the deductibility of these business expenses, see Deduction not allowed for dues used for political or legislative activities , under 501(c)(6) - Business Leagues, etc. Can i still e file 2011 taxes Labor Organizations A labor organization is an association of workers who have combined to protect and promote the interests of the members by bargaining collectively with their employers to secure better working conditions. Can i still e file 2011 taxes To show that your organization has the purpose of a labor organization, you should include in the articles of organization or accompanying statements (submitted with your exemption application) information establishing that the organization is organized to better the conditions of workers, improve the grade of their products, and develop a higher degree of efficiency in their respective occupations. Can i still e file 2011 taxes In addition, no net earnings of the organization can inure to the benefit of any member. Can i still e file 2011 taxes Composition of membership. Can i still e file 2011 taxes   While a labor organization generally is composed of employees or representatives of the employees (in the form of collective bargaining agents) and similar employee groups, evidence that an organization's membership consists mainly of workers does not in itself indicate an exempt purpose. Can i still e file 2011 taxes You must show in your application that your organization has the purposes described in the preceding paragraph. Can i still e file 2011 taxes These purposes can be accomplished by a single labor organization acting alone or by several organizations acting together through a separate organization. Can i still e file 2011 taxes Benefits to members. Can i still e file 2011 taxes   The payment by a labor organization of death, sick, accident, and similar benefits to its individual members with funds contributed by its members, if made under a plan to better the conditions of the members, does not preclude exemption as a labor organization. Can i still e file 2011 taxes However, an organization does not qualify for exemption as a labor organization if it has no authority to represent members in job-related matters, even if it provides weekly income to its members in the event of a lawful strike by the members' union, in return for an annual payment by the member. Can i still e file 2011 taxes   For more information on labor organizations, see Life Cycle of a Labor Organization at IRS. Can i still e file 2011 taxes gov. Can i still e file 2011 taxes Agricultural and Horticultural Organizations Agricultural and horticultural organizations are connected with raising livestock, forestry, cultivating land, raising and harvesting crops or aquatic resources, cultivating useful or ornamental plants, and similar pursuits. Can i still e file 2011 taxes For the purpose of these provisions, aquatic resources include only animal or vegetable life, but not mineral resources. Can i still e file 2011 taxes The term harvesting, in this case, includes fishing and related pursuits. Can i still e file 2011 taxes Agricultural organizations can be quasi-public in character and are often designed to encourage the development of better agricultural and horticultural products through a system of awards, using income from entry fees, gate receipts, and donations to meet the necessary expenses of upkeep and operation. Can i still e file 2011 taxes When the activities are directed toward the improvement of marketing or other business conditions in one or more lines of business, rather than the improvement of production techniques or the betterment of the conditions of persons engaged in agriculture, the organization must qualify for exemption as a business league, board of trade, or other organization, as discussed next in the section on 501(c)(6) organizations. Can i still e file 2011 taxes The primary purpose of exempt agricultural and horticultural organizations must be to better the conditions of those engaged in agriculture or horticulture, develop more efficiency in agriculture or horticulture, or improve the products. Can i still e file 2011 taxes The following list contains some examples of activities that show an agricultural or horticultural purpose. Can i still e file 2011 taxes Promoting various cooperative agricultural, horticultural, and civic activities among rural residents by a state, farm, or home bureau. Can i still e file 2011 taxes Exhibiting livestock, farm products, and other characteristic features of agriculture and horticulture. Can i still e file 2011 taxes Testing soil for members and nonmembers of the farm bureau on a cost basis, the results of the tests and other recommendations being furnished to the community members to educate them in soil treatment. Can i still e file 2011 taxes Guarding the purity of a specific breed of livestock. Can i still e file 2011 taxes Encouraging improvements in the production of fish on privately owned fish farms. Can i still e file 2011 taxes Negotiating with processors for the price to be paid to members for their crops. Can i still e file 2011 taxes For more information on agricultural or horticultural organizations, see Life Cycle of an Agricultural or Horticultural Organization at IRS. Can i still e file 2011 taxes gov. Can i still e file 2011 taxes 501(c)(6) - Business Leagues, etc. Can i still e file 2011 taxes If your association wants to apply for recognition of exemption from federal income tax as a nonprofit business league, chamber of commerce, real estate board, or board of trade, it should file Form 1024. Can i still e file 2011 taxes For a discussion of the procedure to follow, see chapter 1. Can i still e file 2011 taxes Your organization must indicate in its application form and attached statements that no part of its net earnings will inure to the benefit of any private shareholder or individual and that it is not organized for profit or organized to engage in an activity ordinarily carried on for profit (even if the business is operated on a cooperative basis or produces only sufficient income to be self-sustaining). Can i still e file 2011 taxes In addition, your organization must be primarily engaged in activities or functions that are the basis for its exemption. Can i still e file 2011 taxes It must be primarily supported by membership dues and other income from activities substantially related to its exempt purpose. Can i still e file 2011 taxes A business league, in general, is an association of persons having some common business interest, the purpose of which is to promote that common interest and not to engage in a regular business of a kind ordinarily carried on for profit. Can i still e file 2011 taxes Trade associations and professional associations are considered business leagues. Can i still e file 2011 taxes Chamber of commerce. Can i still e file 2011 taxes   A chamber of commerce usually is composed of the merchants and traders of a city. Can i still e file 2011 taxes Board of trade. Can i still e file 2011 taxes   A board of trade often consists of persons engaged in similar lines of business. Can i still e file 2011 taxes For example, a nonprofit organization formed to regulate the sale of a specified agricultural commodity to assure equal treatment of producers, warehouse workers, and buyers is a board of trade. Can i still e file 2011 taxes   Chambers of commerce and boards of trade usually promote the common economic interests of all the commercial enterprises in a given trade community. Can i still e file 2011 taxes Real estate board. Can i still e file 2011 taxes   A real estate board consists of members interested in improving the business conditions in the real estate field. Can i still e file 2011 taxes It is not organized for profit and no part of the net earnings inures to the benefit of any private shareholder or individual. Can i still e file 2011 taxes Professional football leagues. Can i still e file 2011 taxes   The Internal Revenue Code specifically defines professional football leagues as exempt organizations under section 501(c)(6). Can i still e file 2011 taxes They are exempt whether or not they administer a pension fund for football players. Can i still e file 2011 taxes General purpose. Can i still e file 2011 taxes   You must indicate in the material submitted with your application that your organization will be devoted to the improvement of business conditions of one or more lines of business as distinguished from the performance of particular services for individual persons. Can i still e file 2011 taxes It must be shown that the conditions of a particular trade or the interests of the community will be advanced. Can i still e file 2011 taxes Merely indicating the name of the organization or the object of the local statute under which it is created is not enough to demonstrate the required general purpose. Can i still e file 2011 taxes Line of business. Can i still e file 2011 taxes   This term generally refers either to an entire industry or to all components of an industry within a geographic area. Can i still e file 2011 taxes It does not include a group composed of businesses that market a particular brand within an industry. Can i still e file 2011 taxes Common business interest. Can i still e file 2011 taxes   A common business interest of all members of the organization must be established by the application documents. Can i still e file 2011 taxes Examples. Can i still e file 2011 taxes   Activities that would tend to illustrate a common business interest are: Promotion of higher business standards and better business methods and encouragement of uniformity and cooperation by a retail merchants association, Education of the public in the use of credit, Establishment of uniform casualty rates and compilation of statistical information by an insurance rating bureau operated by casualty insurance companies, Establishment and maintenance of the integrity of a local commercial market, Operation of a trade publication primarily intended to benefit an entire industry, and Encouragement of the use of goods and services of an entire industry (such as a lawyer referral service whose main purpose is to introduce individuals to the use of the legal profession in the hope that they will enter into lawyer-client relationships on a paying basis as a result). Can i still e file 2011 taxes Improvement of business conditions. Can i still e file 2011 taxes   Generally, this must be shown to be the purpose of the organization. Can i still e file 2011 taxes This is not established by evidence of particular services that provide a convenience or economy to individual members in their businesses, such as advertising that carries the name of members, interest-free loans, assigning exclusive franchise areas, operation of a real estate multiple listing system, or operation of a credit reporting agency. Can i still e file 2011 taxes Stock or commodity exchange. Can i still e file 2011 taxes   A stock or commodity exchange is not a business league, chamber of commerce, real estate board, or board of trade and is not exempt under section 501(c)(6). Can i still e file 2011 taxes Legislative activity. Can i still e file 2011 taxes   An organization that is exempt under section 501(c)(6) can work for the enactment of laws to advance the common business interests of the organization's members. Can i still e file 2011 taxes Deduction not allowed for dues used for political or legislative activities. Can i still e file 2011 taxes   A taxpayer cannot deduct the part of dues or other payments to a business league, trade association, labor union, or similar organization that is reported to the taxpayer by the organization as having been used for any of the following activities. Can i still e file 2011 taxes Influencing legislation. Can i still e file 2011 taxes Participating or intervening in a political campaign for, or against, any candidate for public office. Can i still e file 2011 taxes Trying to influence the general public, or part of the general public, with respect to elections, legislative matters, or referendums (also known as grass roots lobbying). Can i still e file 2011 taxes Communicating directly with certain executive branch officials to try to influence their official actions or positions. Can i still e file 2011 taxes See Dues Used for Lobbying or Political Activities under Required Disclosures in chapter 2 for more information. Can i still e file 2011 taxes Exception for local legislation. Can i still e file 2011 taxes   Members can deduct dues (or assessments) to an organization that are for expenses of: Appearing before, submitting statements to, or sending communications to members of a local council or similar governing body with respect to legislation or proposed legislation of direct interest to the member, or Communicating information between the member and the organization with respect to local legislation or proposed legislation of direct interest to the organization or the member. Can i still e file 2011 taxes Legislation or proposed legislation is of direct interest to a taxpayer if it will, or can reasonably be expected to, affect the taxpayer's trade or business. Can i still e file 2011 taxes De minimis exception. Can i still e file 2011 taxes   In-house expenditures of $2,000 or less for the year for activities (1) – (4) listed earlier will not prevent a deduction for dues if the dues meet all other tests to be deductible as a business expense. Can i still e file 2011 taxes Grass roots lobbying. Can i still e file 2011 taxes   A tax-exempt trade association, labor union, or similar organization is considered to be engaging in grass roots lobbying if it contacts prospective members or calls upon its own members to contact their employees and customers for the purpose of urging such persons to communicate with their elected state or Congressional representatives to support the promotion, defeat, or repeal of legislation that is of direct interest to the organization. Can i still e file 2011 taxes Any dues or assessments directly related to such activities are not deductible by the taxpayer, since the individuals being contacted, who are not members of the organization, are a segment of the general public. Can i still e file 2011 taxes Tax treatment of donations. Can i still e file 2011 taxes   Contributions to organizations described in this section are not deductible as charitable contributions on the donor's federal income tax return. Can i still e file 2011 taxes They may be deductible as trade or business expenses if ordinary and necessary in the conduct of the taxpayer's business. Can i still e file 2011 taxes   For more information on business leagues, see Life Cycle of a Business League (Trade Association) on IRS. Can i still e file 2011 taxes gov. Can i still e file 2011 taxes 501(c)(7) - Social and Recreation Clubs If your club is organized for pleasure, recreation, and other similar nonprofitable purposes and substantially all of its activities are for these purposes, it should file Form 1024 to apply for recognition of exemption from federal income tax. Can i still e file 2011 taxes In applying for recognition of exemption, you should submit the information described in this section. Can i still e file 2011 taxes Also see chapter 1 for the procedures to follow. Can i still e file 2011 taxes Typical organizations that should file for recognition of exemption as social clubs include: College alumni associations that are not described in chapter 3 under Alumni association , College fraternities or sororities operating chapter houses for students, Country clubs, Amateur hunting, fishing, tennis, swimming, and other sport clubs, Dinner clubs that provide a meeting place, library, and dining room for members, Hobby clubs, Garden clubs, and Variety clubs. Can i still e file 2011 taxes Discrimination prohibited. Can i still e file 2011 taxes   Your organization will not be recognized as tax exempt if its charter, bylaws, or other governing instrument, or any written policy statement provides for discrimination against any person on the basis of race, color, or religion. Can i still e file 2011 taxes   However, a club that in good faith limits its membership to the members of a particular religion to further the teachings or principles of that religion and not to exclude individuals of a particular race or color will not be considered as discriminating on the basis of religion. Can i still e file 2011 taxes Also, the restriction on religious discrimination does not apply to a club that is an auxiliary of a fraternal beneficiary society (discussed later) if that society is described in section 501(c)(8) and exempt from tax under section 501(a) and limits its membership to the members of a particular religion. Can i still e file 2011 taxes Private benefit prohibited. Can i still e file 2011 taxes   No part of the organization's net earnings can inure to the benefit of any person having a personal and private interest in the activities of the organization. Can i still e file 2011 taxes For purposes of this requirement, it is not necessary that net earnings be actually distributed. Can i still e file 2011 taxes Even undistributed earnings can benefit members. Can i still e file 2011 taxes Examples of this include a decrease in membership dues or an increase in the services the club provides to its members without a corresponding increase in dues or other fees paid for club support. Can i still e file 2011 taxes However, fixed-fee payments to members who bring new members into the club are not an inurement of the club's net earnings, if the payments are reasonable compensation for performance of a necessary administrative service. Can i still e file 2011 taxes Purposes. Can i still e file 2011 taxes   To show that your organization possesses the characteristics of a club within the meaning of the exemption law, you should submit evidence with your application that personal contact, commingling, and fellowship exist among members. Can i still e file 2011 taxes You must show that members are bound together by a common objective of pleasure, recreation, and other nonprofitable purposes. Can i still e file 2011 taxes   Fellowship need not be present between each member and every other member of a club if it is a material part in the life of the organization. Can i still e file 2011 taxes A statewide or nationwide organization that is made up of individual members, but is divided into local groups, satisfies this requirement if fellowship is a material part of the life of each local group. Can i still e file 2011 taxes   The term other nonprofitable purposes means other purposes similar to pleasure and recreation. Can i still e file 2011 taxes For example, a club that, in addition to its social activities, has a plan for the payment of sick and death benefits is not operating exclusively for pleasure, recreation, and other nonprofitable purposes. Can i still e file 2011 taxes Limited membership. Can i still e file 2011 taxes   The membership in a social club must be limited. Can i still e file 2011 taxes To show that your organization has a purpose that would characterize it as a club, you should submit evidence with your application that there are limits on admission to membership consistent with the character of the club. Can i still e file 2011 taxes   A social club that issues corporate membership is dealing with the general public in the form of the corporation's employees. Can i still e file 2011 taxes Corporate members of a club are not the kind of members contemplated by the law. Can i still e file 2011 taxes Gross receipts from these members would be a factor in determining whether the club qualifies as a social club. Can i still e file 2011 taxes See Gross receipts from nonmembership sources , later. Can i still e file 2011 taxes Bona fide individual memberships paid for by a corporation would not have an effect on the gross receipts source. Can i still e file 2011 taxes   The fact that a social club may have an associate (nonvoting) class of membership will not be, in and of itself, a cause for nonrecognition of exemption. Can i still e file 2011 taxes However, if one membership class pays substantially lower dues and fees than another membership class, although both classes enjoy the same rights and privileges in using the club facilities, there may be an inurement of income to the benefited class, resulting in a denial of the club's exemption. Can i still e file 2011 taxes Support. Can i still e file 2011 taxes   In general, your club should be supported solely by membership fees, dues, and assessments. Can i still e file 2011 taxes However, if otherwise entitled to exemption, your club will not be disqualified because it raises revenue from members through the use of club facilities or in connection with club activities. Can i still e file 2011 taxes Business activities. Can i still e file 2011 taxes   If your club will engage in business, such as selling real estate, timber, or other products or services, it generally will be denied exemption. Can i still e file 2011 taxes However, evidence submitted with your application form that your organization will provide meals, refreshments, or services related to its exempt purposes only to its own members or their dependents or guests will not cause denial of exemption. Can i still e file 2011 taxes Facilities open to public. Can i still e file 2011 taxes   Evidence that your club's facilities will be open to the general public (persons other than members or their dependents or guests) may cause denial of exemption. Can i still e file 2011 taxes This does not mean, however, that any dealing with outsiders will automatically deprive a club of exemption. Can i still e file 2011 taxes Gross receipts from nonmembership sources. Can i still e file 2011 taxes   A section 501(c)(7) organization can receive up to 35% of its gross receipts, including investment income, from sources outside of its membership without losing its tax-exempt status. Can i still e file 2011 taxes Income from nontraditional business activity with members is not exempt function income, and thus is included as income from sources outside of the membership. Can i still e file 2011 taxes Of the 35% gross receipts listed above, up to 15% of the gross receipts can be derived from the use of the club's facilities or services by the general public. Can i still e file 2011 taxes If an organization has outside income that is more than these limits, all the facts and circumstances will be taken into account in determining whether the organization qualifies for exempt status. Can i still e file 2011 taxes Gross receipts. Can i still e file 2011 taxes   Gross receipts, for this purpose, are receipts from the normal and usual (traditionally conducted) activities of the club. Can i still e file 2011 taxes These receipts include charges, admissions, membership fees, dues, assessments, investment income, and normal recurring capital gains on investments. Can i still e file 2011 taxes Receipts do not include initiation fees and capital contributions. Can i still e file 2011 taxes Unusual amounts of income, such as from the sale of a clubhouse or similar facility, are not included in gross receipts or in figuring the percentage limits. Can i still e file 2011 taxes Nontraditional activities. Can i still e file 2011 taxes   Activities conducted by a social club need to further its exempt purposes. Can i still e file 2011 taxes Traditional business activities are those that further a social club's exempt purposes. Can i still e file 2011 taxes Nontraditional business activities do not further the exempt purposes of a social club even if conducted solely on a membership basis. Can i still e file 2011 taxes Nontraditional business activities are prohibited (subject to an insubstantial, trivial, and nonrecurrent test) for businesses conducted with both members and nonmembers. Can i still e file 2011 taxes Examples of nontraditional business activities include sale of package liquor, take-out food, and long-term room rental. Can i still e file 2011 taxes Fraternity foundations. Can i still e file 2011 taxes   If your organization is a foundation formed for the exclusive purpose of acquiring and leasing a chapter house to a local fraternity chapter or sorority chapter maintained at an educational institution and does not engage in any social or recreational activities, it may be a title holding corporation (discussed later under section 501(c)(2) organizations and under section 501(c)(25) organizations) rather than a social club. Can i still e file 2011 taxes Tax treatment of donations. Can i still e file 2011 taxes   Donations to exempt social and recreation clubs are not deductible as charitable contributions on the donor's federal income tax return. Can i still e file 2011 taxes 501(c)(8) and 501(c)(10) - Fraternal Beneficiary Societies and Domestic Fraternal Societies This section describes the information to be provided upon application for recognition of exemption by two types of fraternal societies: beneficiary and domestic. Can i still e file 2011 taxes The major distinction is that fraternal beneficiary societies provide for the payment of life, sick, accident, or other benefits to their members or their dependents, while domestic fraternal societies do not provide these benefits but rather devote their earnings to fraternal, religious, charitable, etc. Can i still e file 2011 taxes , purposes. Can i still e file 2011 taxes The procedures to follow in applying for recognition of exemption are described in chapter 1. Can i still e file 2011 taxes If your organization is controlled by a central organization, you should check with your controlling organization to determine whether your unit has been included in a group exemption letter or can be added. Can i still e file 2011 taxes If so, your organization need not apply for individual recognition of exemption. Can i still e file 2011 taxes For more information, see Group Exemption Letter in chapter 1 of this publication. Can i still e file 2011 taxes Tax treatment of donations. Can i still e file 2011 taxes   Donations by an individual to a domestic fraternal beneficiary society or a domestic fraternal society operating under the lodge system are deductible as charitable contributions only if used exclusively for religious, charitable, scientific, literary, or educational purposes or for the prevention of cruelty to children or animals. Can i still e file 2011 taxes Fraternal Beneficiary Societies (501(c)(8)) A fraternal beneficiary society, order, or association must file an application for recognition of exemption from federal income tax on Form 1024. Can i still e file 2011 taxes The application and accompanying statements should establish that the organization: Is a fraternal organization, Operates under the lodge system or for the exclusive benefit of the members of a fraternal organization itself operating under the lodge system, and Provides for the payment of life, sick, accident, or other benefits to the members of the society, order, or association or their dependents. Can i still e file 2011 taxes Lodge system. Can i still e file 2011 taxes   Operating under the lodge system means carrying on activities under a form of organization that comprises local branches, chartered by a parent organization and largely self-governing, called lodges, chapters, or the like. Can i still e file 2011 taxes Payment of benefits. Can i still e file 2011 taxes   It is not essential that every member be covered by the society's program of sick, accident, or death benefits. Can i still e file 2011 taxes An organization can qualify for exemption if most of its members are eligible for benefits, and the benefits are paid from contributions or dues paid by those members. Can i still e file 2011 taxes   The benefits must be limited to members and their dependents. Can i still e file 2011 taxes If members will have the ability to confer benefits to other than themselves and their dependents, exemption will not be recognized. Can i still e file 2011 taxes Whole-life insurance. Can i still e file 2011 taxes   Whole-life insurance constitutes a life benefit under section 501(c)(8) even though the policy may contain investment features such as a cash surrender value or a policy loan. Can i still e file 2011 taxes Reinsurance pool. Can i still e file 2011 taxes   Payments by a fraternal beneficiary society into a state-sponsored reinsurance pool that protects participating insurers against excessive losses on major medical health and accident insurance will not preclude exemption as a fraternal beneficiary society. Can i still e file 2011 taxes Domestic Fraternal Societies (501(c)(10)) A domestic fraternal society, order, or association must file an application for recognition of exemption from federal income tax on Form 1024. Can i still e file 2011 taxes The application and accompanying statements should establish that the organization: Is a domestic fraternal organization organized in the U. Can i still e file 2011 taxes S. Can i still e file 2011 taxes , Operates under the lodge system, Devotes its net earnings exclusively to religious, charitable, scientific, literary, educational, and fraternal purposes, and Does not provide for the payment of life, sick, accident, or other benefits to its members. Can i still e file 2011 taxes The organization can arrange with insurance companies to provide optional insurance to its members without jeopardizing its exempt status. Can i still e file 2011 taxes 501(c)(4), 501(c)(9), and 501(c)(17) - Employees' Associations This section describes the information to be provided upon application for recognition of exemption by the following types of employees' associations: A voluntary employees' beneficiary association (including federal employees' associations) organized to pay life, sick, accident, and similar benefits to members or their dependents, or designated beneficiaries, if no part of the net earnings of the association inures to the benefit of any private shareholder or individual, and A supplemental unemployment benefit trust whose primary purpose is providing for payment of supplemental unemployment benefits. Can i still e file 2011 taxes Both the application form to file and the information to provide are discussed later under the section that describes your employee association. Can i still e file 2011 taxes Chapter 1 describes the procedures to follow in applying for exemption. Can i still e file 2011 taxes Tax treatment of donations. Can i still e file 2011 taxes   Donations to these organizations are not deductible as charitable contributions on the donor's federal income tax return. Can i still e file 2011 taxes Local Employees' Associations (501(c)(4)) A local association of employees whose membership is limited to employees of a designated person or persons in a particular municipality, and whose income will be devoted exclusively to charitable, educational, or recreational purposes. Can i still e file 2011 taxes A local employees' association must apply for recognition of exemption by filing Form 1024. Can i still e file 2011 taxes The organization must submit evidence that: It is of a purely local character, Its membership is limited to employees of a designated person or persons in a particular locality, and Its net earnings will be devoted exclusively to charitable, educational, or recreational purposes. Can i still e file 2011 taxes A local association of employees that has established a system of paying retirement or death benefits, or both, to its members will not qualify for exemption since the payment of these benefits is not considered as being for charitable, educational, or recreational purposes. Can i still e file 2011 taxes Similarly, a local association of employees that is operated primarily as a cooperative buying service for its members in order to obtain discount prices on merchandise, services, and activities does not qualify for exemption. Can i still e file 2011 taxes Voluntary Employees' Beneficiary Associations (501(c)(9)) An application for recognition of exemption as a voluntary employees' beneficiary association must be filed on Form 1024. Can i still e file 2011 taxes The material submitted with the application must show that your organization: Is a voluntary association of employees, Will provide for payment of life, sick, accident, or other benefits to members or their dependents or designated beneficiaries and substantially all of its operations are for this purpose, and Will not allow any of its net earnings to inure to the benefit of any private individual or shareholder except in the form of scheduled benefit payments. Can i still e file 2011 taxes To be complete, an application must include a copy of the document (such as the trust instrument) by which the organization was created; a full description of the benefits available to participants and the terms and conditions of eligibility for benefits (usually contained in a plan document); and, if providing benefits pursuant to a collective bargaining agreement, a copy of that agreement. Can i still e file 2011 taxes Note. Can i still e file 2011 taxes Under section 4976, the reversion of funds from a section 501(c)(9) organization to the employer who created the beneficiary association may subject the employer to a 100% penalty excise tax on the amount of the reversion. Can i still e file 2011 taxes Notice requirement. Can i still e file 2011 taxes   An organization will not be considered tax exempt under this section unless the organization gives notice to the IRS that it is applying for recognition of exempt status. Can i still e file 2011 taxes The organization gives notice by filing Form 1024. Can i still e file 2011 taxes If the notice is not given by 15 months after the end of the month in which the organization was created, the organization will not be exempt for any period before notice is given. Can i still e file 2011 taxes An extension of time for filing the notice can be granted under the same procedures as those described for section 501(c)(3) organizations in chapter 3 under Application for Recognition of Exemption . Can i still e file 2011 taxes Membership. Can i still e file 2011 taxes   Membership of a section 501(c)(9) organization must consist of individuals who are employees and have an employment-related common bond. Can i still e file 2011 taxes This common bond can be a common employer (or affiliated employers), coverage under one or more collective bargaining agreements, membership in a labor union, or membership in one or more locals of a national or international labor union. Can i still e file 2011 taxes   The membership of an association can include some individuals who are not employees, provided they have an employment-related bond with the employee-members. Can i still e file 2011 taxes For example, the owner of a business whose employees are members of the association can be a member. Can i still e file 2011 taxes An association will be considered composed of employees if 90% of its total membership on one day of each quarter of its tax year consists of employees. Can i still e file 2011 taxes Employees. Can i still e file 2011 taxes   Employees include individuals who became entitled to membership because they are or were employees. Can i still e file 2011 taxes For example, an individual will qualify as an employee even though the individual is on a leave of absence or has been terminated due to retirement, disability, or layoff. Can i still e file 2011 taxes   Generally, membership is voluntary if an affirmative act is required on the part of an employee to become a member. Can i still e file 2011 taxes Conversely, membership is involuntary if the designation as a member is due to employee status. Can i still e file 2011 taxes However, an association will be considered voluntary if employees are required to be members of the organization as a condition of their employment and they do not incur a detriment (such as a payroll deduction) as a result of their membership. Can i still e file 2011 taxes An employer has not imposed involuntary membership on the employee if membership is required as the result of a collective bargaining agreement or as an incident of membership in a labor organization. Can i still e file 2011 taxes Payment of benefits. Can i still e file 2011 taxes   The information submitted with your application must show that your organization will pay life, sick, accident, supplemental unemployment, or other similar benefits. Can i still e file 2011 taxes The benefits can be provided directly by your association or indirectly by your association through the payments of premiums to an insurance company (or fees to a medical clinic). Can i still e file 2011 taxes Benefits can be in the form of medical, clinical, or hospital services, transportation furnished for medical care, or money payments. Can i still e file 2011 taxes Nondiscrimination requirements. Can i still e file 2011 taxes   An organization that is part of a plan will not be exempt unless the plan meets certain nondiscrimination requirements. Can i still e file 2011 taxes However, if the organization is part of a plan that is a collective bargaining agreement that was the subject of good faith bargaining between employee organizations and employers, the plan need not meet these requirements for the organization to qualify as tax exempt. Can i still e file 2011 taxes   A plan meets the nondiscrimination requirements only if both of the following statements are true. Can i still e file 2011 taxes Each class of benefits under the plan is provided under a classification of employees that is set forth in the plan and does not discriminate in favor of employees who are highly compensated individuals. Can i still e file 2011 taxes The benefits provided under each class of benefits do not discriminate in favor of highly compensated individuals. Can i still e file 2011 taxes A life insurance, disability, severance pay, or supplemental unemployment compensation benefit does not discriminate in favor of highly compensated individuals merely because the benefits available bear a uniform relationship to the total compensation, or the basic or regular rate of compensation, of employees covered by the plan. Can i still e file 2011 taxes   For purposes of determining whether a plan meets the nondiscrimination requirements, the employer can elect to exclude all disability or severance payments payable to individuals who are in pay status as of January 1, 1985. Can i still e file 2011 taxes This will not apply to any increase in such payment by any plan amendment adopted after June 22, 1984. Can i still e file 2011 taxes   If a plan provides a benefit for which there is a nondiscrimination provision provided under Chapter 1 of the Internal Revenue Code as a condition of that benefit being excluded from gross income, these nondiscrimination requirements do not apply. Can i still e file 2011 taxes The benefit will be considered nondiscriminatory only if it meets the nondiscrimination provision of the applicable Code section. Can i still e file 2011 taxes For example, benefits provided under a medical reimbursement plan would meet the nondiscrimination requirements for an association, if the benefits meet the nondiscrimination requirements of section 105(h)(3) and 105(h)(4). Can i still e file 2011 taxes Excluded employees. Can i still e file 2011 taxes   Certain employees who are not covered by a plan can be excluded from consideration in applying these requirements. Can i still e file 2011 taxes These include employees: Who have not completed 3 years of service, Who have not attained age 21, Who are seasonal or less than half-time employees, Who are not in the plan and who are included in a unit of employees covered by a collective bargaining agreement if the class of benefits involved was the subject of good faith bargaining, or Who are nonresident aliens and who receive no earned income from the employer that has United States source income. Can i still e file 2011 taxes Highly compensated individual. Can i still e file 2011 taxes   A highly compensated individual is one who: Owned 5 percent or more of the employer at any time during the current year or the preceding year, Received more than $115,000 in compensation from the employer for the preceding year (the amount is annualized for inflation. Can i still e file 2011 taxes Go to IRS. Can i still e file 2011 taxes gov, and search “Pension Plan Limitation” for the year), and Was among the top 20% of employees by compensation for the preceding year. Can i still e file 2011 taxes However, the employer can choose not to have (3) apply. Can i still e file 2011 taxes Aggregation rules. Can i still e file 2011 taxes   The employer can choose to treat two or more plans as one plan for purposes of meeting the nondiscrimination requirements. Can i still e file 2011 taxes Employees of controlled groups of corporations, trades, or businesses under common control, or members of an affiliated service group, are treated as employees of a single employer. Can i still e file 2011 taxes Leased employees are treated as employees of the recipient. Can i still e file 2011 taxes One employee. Can i still e file 2011 taxes   A trust created to provide benefits to one employee will not qualify as a voluntary employees' beneficiary association under section 501(c)(9). Can i still e file 2011 taxes Supplemental Unemployment Benefit Trusts (501(c)(17)) A trust or trusts forming part of a written plan (established and maintained by an employer, his or her employees, or both) providing solely for the payment of supplemental unemployment compensation benefits must file the application for recognition of exemption on Form 1024. Can i still e file 2011 taxes The trust must be a valid, existing trust under local law and must be evidenced by an executed document. Can i still e file 2011 taxes A conformed copy of the plan of which the trust is a part should be attached to the application. Can i still e file 2011 taxes To be complete, an application must include a copy of the document (such as the trust instrument) by which the organization was created; a full description of the benefits available to participants and the terms and conditions of eligibility for benefits (usually contained in a plan document); and, if providing benefits pursuant to a collective bargaining agreement, a copy of that agreement. Can i still e file 2011 taxes Note. Can i still e file 2011 taxes Under section 4976, the reversion of funds from a section 501(c)(17) organization to the employer who created the supplemental unemployment benefit trust may subject the employer to a 100% penalty excise tax on the amount of the reversion. Can i still e file 2011 taxes Notice requirement. Can i still e file 2011 taxes   An organization will not be considered tax exempt under this section unless the organization gives notice to the IRS that it is applying for recognition of exempt status. Can i still e file 2011 taxes The organization gives notice by filing Form 1024. Can i still e file 2011 taxes If the notice is not given by 15 months after the end of the month in which the organization was created, the organization will not be exempt for any period before such notice is given. Can i still e file 2011 taxes An extension of time for filing the notice is granted under the same procedures as those described for section 501(c)(3) organizations in chapter 3 under Application for Recognition of Exemption . Can i still e file 2011 taxes Types of payments. Can i still e file 2011 taxes   You must show that the supplemental unemployment compensation benefits will be benefits paid to an employee because of the employee's involuntary separation from employment (whether or not the separation is temporary) resulting directly from a reduction-in-force, discontinuance of a plant or operation, or other similar conditions. Can i still e file 2011 taxes In addition, sickness and accident benefits (but not vacation, retirement, or death benefits) may be included in the plan if these are subordinate to the unemployment compensation benefits. Can i still e file 2011 taxes Diversion of funds. Can i still e file 2011 taxes   It must be impossible under the plan (at any time before the satisfaction of all liabilities with respect to employees under the plan) to use or to divert any of the corpus or income of the trust to any purpose other than the payment of supplemental unemployment compensation benefits (or sickness or accident benefits to the extent just explained). Can i still e file 2011 taxes Discrimination in benefits. Can i still e file 2011 taxes   Neither the terms of the plan nor the actual payment of benefits can be discriminatory in favor of the company's officers, stockholders, supervisors, or highly paid employees. Can i still e file 2011 taxes However, a plan is not discriminatory merely because benefits bear a uniform relationship to compensation or the rate of compensation. Can i still e file 2011 taxes Prohibited transactions and exemption. Can i still e file 2011 taxes   If your organization is a supplemental unemployment benefit trust and has received a denial of exemption because it engaged in a prohibited transaction, as defined by section 503(b), it can file a claim for exemption in any tax year following the tax year in which the notice of denial was issued. Can i still e file 2011 taxes It must file the claim on Form 1024. Can i still e file 2011 taxes The organization must include a written declaration that it will not knowingly again engage in a prohibited transaction. Can i still e file 2011 taxes An authorized principal officer of your organization must make this declaration under the penalties of perjury. Can i still e file 2011 taxes   If your organization has satisfied all requirements as a supplemental unemployment benefit trust described in section 501(c)(17), it will be notified in writing that it has been recognized as exempt. Can i still e file 2011 taxes However, the organization will be exempt only for those tax years after the tax year in which the claim for exemption (Form 1024) is filed. Can i still e file 2011 taxes Tax year in this case means the established annual accounting period of the organization or, if the organization has not established an annual accounting period, the calendar year. Can i still e file 2011 taxes For more information about the requirements for reestablishing an exemption previously denied, contact the IRS. Can i still e file 2011 taxes 501(c)(12) - Local Benevolent Life Insurance Associations, Mutual Irrigation and Telephone Companies, and Like Organizations Each of the following organizations apply for recognition of exemption from federal income tax by filing Form 1024. Can i still e file 2011 taxes Benevolent life insurance associations of a purely local character and like organizations. Can i still e file 2011 taxes Mutual ditch or irrigation companies and like organizations. Can i still e file 2011 taxes Mutual or cooperative telephone companies and like organizations. Can i still e file 2011 taxes A like organization is an organization that performs a service comparable to that performed by any one of the above organizations. Can i still e file 2011 taxes The information to be provided upon application by each of these organizations is described in this section. Can i still e file 2011 taxes For information as to the procedures to follow in applying for exemption, see chapter 1. Can i still e file 2011 taxes General requirements. Can i still e file 2011 taxes   These organizations must use their income solely to cover losses and expenses, with any excess being returned to members or retained to cover future losses and expenses. Can i still e file 2011 taxes They must collect at least 85% of their income from members for the sole purpose of meeting losses and expenses. Can i still e file 2011 taxes Mutual character. Can i still e file 2011 taxes   These organizations, other than benevolent life insurance associations, must be organized and operated on a mutual or cooperative basis. Can i still e file 2011 taxes They are associations of persons or organizations, or both, banded together to provide themselves a mutually desirable service approximately at cost and on a mutual basis. Can i still e file 2011 taxes To maintain the mutual characteristic of democratic ownership and control, they must be so organized and operated that their members have the right to choose the management, to receive services at cost, to receive a return of any excess of payments over losses and expenses, and to share in any assets upon dissolution. Can i still e file 2011 taxes   The rights and interests of members in the annual savings of the organization must be determined in proportion to their business with the organization. Can i still e file 2011 taxes Upon dissolution, gains from the sale of appreciated assets must be distributed to all persons who were members during the period the assets were owned by the organization in proportion to the amount of business done during that period. Can i still e file 2011 taxes The bylaws must not provide for forfeiture of a member's rights and interest upon withdrawal or termination. Can i still e file 2011 taxes Membership. Can i still e file 2011 taxes   Membership of a mutual organization consists of those who join the organization to obtain its services, and have a voice in its management. Can i still e file 2011 taxes In a stock company, the stockholders are members. Can i still e file 2011 taxes However, a mutual life insurance organization cannot have policyholders other than its members. Can i still e file 2011 taxes Losses and expenses. Can i still e file 2011 taxes   In furnishing services substantially at cost, an organization must use its income solely for paying losses and expenses. Can i still e file 2011 taxes Any excess income not retained in reasonable reserves for future losses and expenses belongs to members in proportion to their patronage or business done with the organization. Can i still e file 2011 taxes If such patronage refunds are retained in reasonable amounts for purposes of expanding and improving facilities, retiring capital indebtedness, acquiring other assets, and unexpected expenses, the organization must maintain records sufficient to reflect the equity of each member in the assets acquired with the funds. Can i still e file 2011 taxes Distributions of proceeds. Can i still e file 2011 taxes   The cooperative may distribute the unexpended balance of collections or assessments remaining on hand at the end of the year to members or patrons prorated on the basis of their patronage or business done with the cooperative. Can i still e file 2011 taxes Such distribution represents a refund in the costs of services rendered to the member. Can i still e file 2011 taxes The 85% Requirement All of the organizations listed above must submit evidence with their application that they receive 85% or more of their gross income from their members for the sole purpose of meeting losses and expenses. Can i still e file 2011 taxes Nevertheless, certain items of income are excluded from the computation of the 85% requirement if the organization is a mutual or cooperative telephone or electric company. Can i still e file 2011 taxes Mutual or cooperative telephone company. Can i still e file 2011 taxes   A mutual or cooperative telephone company will exclude from the computation of the 85% requirement any income received or accrued from: A nonmember telephone company for the performance of communication services involving the completion of long distance calls to, from, or between members of the mutual or cooperative telephone company, Qualified pole rentals, The sale of display listings in a directory furnished to its members, or The prepayment of a loan created in 1987, 1988, or 1989, under section 306A, 306B, or 311 of the Rural Electrification Act of 1936. Can i still e file 2011 taxes Mutual or cooperative electric company. Can i still e file 2011 taxes   A mutual or cooperative electric company will exclude from the computation of the 85% requirement any income received or accrued from: Qualified pole rentals, Any provision or sale of electric energy transmission services or ancillary service if the services are provided on a nondiscriminatory open access basis under an open access transmission tariff approved or accepted by the Federal Energy Regulatory Commission (FERC) or under an independent transmission provider agreement approved or accepted by FERC (other than income received or accrued directly or indirectly from a member), The provision or sale of electric energy distribution services or ancillary services if the services are provided on a nondiscriminatory open-access basis to distribute electric energy not owned by the mutual or electric cooperative company: To end-users who are served by distribution facilities not owned by the company or any of its members (other than income received or accrued directly or indirectly from a member), or Generated by a generation facility not owned or leased by the company or any of its members and which is directly connected to distribution facilities owned by the company or any of its members (other than income received or accrued directly or indirectly from a member), Any nuclear decommissioning transaction, or Any asset exchange or conversion transaction. Can i still e file 2011 taxes   An electric cooperative's sale of excess fuel at cost in the year of purchase is not income for purposes of determining compliance with the 85% requirement. Can i still e file 2011 taxes Qualified pole rental. Can i still e file 2011 taxes   The term qualified pole rental means any rental of a pole (or other structure used to support wires) if the pole (or other structure) is used: By the telephone or electric company to support one or more wires that are used by the company in providing telephone or electric services to its members, and Pursuant to the rental to support one or more wires (in addition to wires described in (1)) for use in connection with the transmission by wire of electricity or of telephone or other communications. Can i still e file 2011 taxes   The term rental, for this purpose, includes any sale of the right to use the pole (or other structure). Can i still e file 2011 taxes The 85% requirement is applied on the basis of an annual accounting period. Can i still e file 2011 taxes Failure of an organization to meet the requirement in a particular year precludes exemption for that year, but has no effect upon exemption for years in which the 85% requirement is met. Can i still e file 2011 taxes Gain from the sale or conversion of the organization's property is not considered an amount received from members in determining whether the organization's income consists of amounts collected from members. Can i still e file 2011 taxes Because the 85% income test is based on gross income, capital losses cannot be used to reduce capital gains for purposes of this test. Can i still e file 2011 taxes Example. Can i still e file 2011 taxes   The books of an organization reflect the following for the calendar year. Can i still e file 2011 taxes Collections from members $2,400 Short-term capital gains 600 Short-term capital losses 400 Other income None Gross income ($2,400 + $600 =$3000) 100% Collected from members ($2,400) 80%   Since amounts collected from members do not constitute at least 85% of gross income, the organization is not entitled to exemption from federal income tax for the year. Can i still e file 2011 taxes   Voluntary contributions in the nature of gifts are not taken into account for purposes of the 85% computation. Can i still e file 2011 taxes   Other tax-exempt income besides gifts is considered as income received from other than members in applying the 85% test. Can i still e file 2011 taxes   If the 85% test is not met, your organization, if classifiable under this section, will not qualify for exemption as any other type of organization described in this publication. Can i still e file 2011 taxes Tax treatment of donations. Can i still e file 2011 taxes   Donations to an organization described in this section are not deductible as charitable contributions on the donor's federal income tax return. Can i still e file 2011 taxes Local Life Insurance Associations A benevolent life insurance association or an organization seeking recognition of exemption on grounds of similarity to a benevolent life insurance association must submit evidence upon applying for recognition of exemption that it will be of a purely local character, that its excess funds will be refunded to members or retained in reasonable reserves to meet future losses and expenses, and that it meets the 85% income requirement. Can i still e file 2011 taxes If an organization issues policies for stipulated cash premiums, or if it requires advance deposits to cover the cost of the insurance and maintains investments from which more than 15% of its income is derived, it will not be entitled to exemption. Can i still e file 2011 taxes To establish that your organization is of a purely local character, it should show that its activities will be confined to a particular community, place, or district irrespective of political subdivisions. Can i still e file 2011 taxes If the activities of an organization are limited only by the borders of a state, it cannot be purely local in character. Can i still e file 2011 taxes A benevolent life insurance association that does not terminate membership when a member moves from the local area in which the association operates will qualify for exemption if it meets the other requirements. Can i still e file 2011 taxes A copy of each type of policy issued by your organization should be included with the application for recognition of exemption. Can i still e file 2011 taxes Organizations similar to local benevolent life insurance companies. Can i still e file 2011 taxes   These organizations include those that in addition to paying death benefits also provide for the payment of sick, accident, or health benefits. Can i still e file 2011 taxes However, an organization that pays only sick, accident, or health benefits, but not life insurance benefits, is not an organization similar to a benevolent life insurance association and should not apply for recognition of exemption as described in this section. Can i still e file 2011 taxes Burial and funeral benefit insurance organization. Can i still e file 2011 taxes   This type of organization can apply for recognition of exemption as an organization similar to a benevolent life insurance company if it establishes that the benefits are paid in cash and if it is not engaged directly in the manufacture of funeral supplies or the performance of funeral services. Can i still e file 2011 taxes An organization that provides its benefits in the form of supplies and service is not a life insurance company. Can i still e file 2011 taxes Such an organization can seek recognition of exemption from federal income tax, however, as a mutual insurance company other than life. Can i still e file 2011 taxes Mutual or Cooperative Associations Mutual ditch or irrigation companies, mutual or cooperative telephone companies, and like organizations need not establish that they are of a purely local character. Can i still e file 2011 taxes They can serve noncontiguous areas. Can i still e file 2011 taxes Like organization. Can i still e file 2011 taxes   A like organization is a cooperative or mutual organization that performs a service similar to mutual ditch, irrigation, telephone, or electric companies. Can i still e file 2011 taxes Examples include the following: cooperatives that provide protection of river banks to prevent erosion, water and sewer services, cable television, satellite, television, cellular phone services, two-way radio service, or natural gas services. Can i still e file 2011 taxes 501(c)(13) - Cemetery Companies If your organization wishes to obtain recognition of exemption from federal income tax as a cemetery company or a corporation chartered solely for the purpose of the disposal of human bodies by burial or cremation, it must file an application on Form 1024. Can i still e file 2011 taxes For the procedure to follow to file an application, see Application, Approval, and Appeal Procedures in chapter 1. Can i still e file 2011 taxes A nonprofit mutual cemetery company that seeks recognition of exemption should submit evidence with its application that it is owned and operated exclusively for the benefit of its lot owners who hold lots for bona fide burial purposes and not for purposes of resale. Can i still e file 2011 taxes A mutual cemetery company that also engages in charitable activities, such as the burial of paupers, will be regarded as operating within this standard. Can i still e file 2011 taxes The fact that a mutual cemetery company limits its membership to a particular class of individuals, such as members of a family, will not affect its status as mutual so long as all the other requirements of section 501(c)(13) are met. Can i still e file 2011 taxes If your organization is a nonprofit corporation chartered solely for the purpose of the disposal of human bodies by burial or cremation, you should show that it is not permitted by its charter to engage in any business not necessarily incident to that purpose. Can i still e file 2011 taxes Operating a mortuary is not permitted. Can i still e file 2011 taxes However, selling monuments, markers, vaults, and flowers solely for use in the cemetery is permitted if the profits from these sales are used to maintain the cemetery as a whole. Can i still e file 2011 taxes How income can be used. Can i still e file 2011 taxes   You should show that your organization's earnings are or will be used only in one or more of the following ways. Can i still e file 2011 taxes To pay the ordinary and necessary expenses of operating, maintaining, and improving the cemetery or crematorium. Can i still e file 2011 taxes To buy cemetery property. Can i still e file 2011 taxes To create a fund that will provide a source of income for the perpetual care of the cemetery or a reasonable reserve for any ordinary or necessary purpose. Can i still e file 2011 taxes No part of the net earnings of your organization can inure to the benefit of any private shareholder or individual. Can i still e file 2011 taxes Ordinary and necessary expenses in connection with the operation, management, maintenance, and improvement of the cemetery are permitted, as are reasonable fees for the services of a manager. Can i still e file 2011 taxes Buying cemetery property. Can i still e file 2011 taxes   Payments can be made to amortize debt incurred to buy land, but cannot be in the nature of profit distributions. Can i still e file 2011 taxes You must show the method used to finance the purchase of the cemetery property and that the purchase price of the land at the time of its sale to the cemetery was not unreasonable. Can i still e file 2011 taxes   Except for holders of preferred stock (discussed later), no person can have any interest in the net earnings of a tax-exempt cemetery company or crematorium. Can i still e file 2011 taxes Therefore, if property is transferred to the organization in exchange for an interest in the organization's net earnings, the organization will not
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The Can I Still E File 2011 Taxes

Can i still e file 2011 taxes Publication 514 - Main Content Table of Contents Choosing To Take Credit or DeductionChoice Applies to All Qualified Foreign Taxes Making or Changing Your Choice Why Choose the Credit?Credit for Taxes Paid or Accrued Foreign Currency and Exchange Rates Foreign Tax Redetermination Who Can Take the Credit?U. Can i still e file 2011 taxes S. Can i still e file 2011 taxes Citizens Resident Aliens Nonresident Aliens What Foreign Taxes Qualify for the Credit?Tax Must Be Imposed on You You Must Have Paid or Accrued the Tax Tax Must Be the Legal and Actual Foreign Tax Liability Tax Must Be an Income Tax (or Tax in Lieu of Income Tax) Foreign Taxes for Which You Cannot Take a CreditTaxes on Excluded Income Taxes for Which You Can Only Take an Itemized Deduction Taxes on Foreign Mineral Income Taxes From International Boycott Operations Taxes on Combined Foreign Oil and Gas Income Taxes of U. Can i still e file 2011 taxes S. Can i still e file 2011 taxes Persons Controlling Foreign Corporations and Partnerships Taxes Related to a Foreign Tax Credit Splitting Event How To Figure the CreditLimit on the Credit Separate Limit Income Allocation of Foreign Taxes Foreign Taxes From a Partnership or an S Corporation Figuring the Limit Qualified Dividends Capital Gains and Losses Allocation of Foreign and U. Can i still e file 2011 taxes S. Can i still e file 2011 taxes Losses Tax Treaties Carryback and CarryoverTime Limit on Tax Assessment Claim for Refund Taxes All Credited or All Deducted Married Couples How To Claim the CreditForm 1116 Records To Keep Simple Example — Filled-In Form 1116Part I—Taxable Income or Loss From Sources Outside the United States (for Category Checked Above) Part II—Foreign Taxes Paid or Accrued Part III—Figuring the Credit Part IV—Summary of Credits From Separate Parts III Comprehensive Example — Filled-In Form 1116Foreign earned income. Can i still e file 2011 taxes Employee business expenses. Can i still e file 2011 taxes Forms 1116 Computation of Taxable Income Part I—Taxable Income or Loss From Sources Outside the United States (for Category Checked Above) Part II—Foreign Taxes Paid or Accrued Part III—Figuring the Credit Part IV—Summary of Credits From Separate Parts III Unused Foreign Taxes How To Get Tax HelpLow Income Taxpayer Clinics Choosing To Take Credit or Deduction You can choose whether to take the amount of any qualified foreign taxes paid or accrued during the year as a foreign tax credit or as an itemized deduction. Can i still e file 2011 taxes You can change your choice for each year's taxes. Can i still e file 2011 taxes To choose the foreign tax credit, in most cases you must complete Form 1116 and attach it to your U. Can i still e file 2011 taxes S. Can i still e file 2011 taxes tax return. Can i still e file 2011 taxes However, you may qualify for the exception that allows you to claim the foreign tax credit without using Form 1116. Can i still e file 2011 taxes See How To Figure the Credit , later. Can i still e file 2011 taxes To choose to claim the taxes as an itemized deduction, use Schedule A (Form 1040), Itemized Deductions. Can i still e file 2011 taxes Figure your tax both ways—claiming the credit and claiming the deduction. Can i still e file 2011 taxes Then fill out your return the way that benefits you more. Can i still e file 2011 taxes See Why Choose the Credit, later. Can i still e file 2011 taxes Choice Applies to All Qualified Foreign Taxes As a general rule, you must choose to take either a credit or a deduction for all qualified foreign taxes. Can i still e file 2011 taxes If you choose to take a credit for qualified foreign taxes, you must take the credit for all of them. Can i still e file 2011 taxes You cannot deduct any of them. Can i still e file 2011 taxes Conversely, if you choose to deduct qualified foreign taxes, you must deduct all of them. Can i still e file 2011 taxes You cannot take a credit for any of them. Can i still e file 2011 taxes See What Foreign Taxes Qualify for the Credit , later, for the meaning of qualified foreign taxes. Can i still e file 2011 taxes There are exceptions to this general rule, which are described next. Can i still e file 2011 taxes Exceptions for foreign taxes not allowed as a credit. Can i still e file 2011 taxes   Even if you claim a credit for other foreign taxes, you can deduct any foreign tax that is not allowed as a credit if: You paid the tax to a country for which a credit is not allowed because it provides support for acts of international terrorism, or because the United States does not have or does not conduct diplomatic relations with it or recognize its government and that government is not otherwise eligible to purchase defense articles or services under the Arms Export Control Act, You paid withholding tax on dividends from foreign corporations whose stock you did not hold for the required period of time, You paid withholding tax on income or gain (other than dividends) from property you did not hold for the required period of time, You paid withholding tax on income or gain to the extent you had to make related payments on positions in substantially similar or related property, You participated in or cooperated with an international boycott, You paid taxes in connection with the purchase or sale of oil or gas, or You paid or accrued taxes on income or gain in connection with a covered asset acquisition. Can i still e file 2011 taxes Covered asset acquisitions include certain acquisitions that result in a stepped-up basis for U. Can i still e file 2011 taxes S. Can i still e file 2011 taxes tax purposes. Can i still e file 2011 taxes For more information, see Internal Revenue Code section 901(m). Can i still e file 2011 taxes The IRS intends to issue guidance that will explain this provision in greater detail. Can i still e file 2011 taxes   For more information on these items, see Taxes for Which You Can Only Take an Itemized Deduction , later, under Foreign Taxes for Which You Cannot Take a Credit. Can i still e file 2011 taxes Foreign taxes that are not income taxes. Can i still e file 2011 taxes   In most cases, only foreign income taxes qualify for the foreign tax credit. Can i still e file 2011 taxes Other taxes, such as foreign real and personal property taxes, do not qualify. Can i still e file 2011 taxes But you may be able to deduct these other taxes even if you claim the foreign tax credit for foreign income taxes. Can i still e file 2011 taxes   In most cases, you can deduct these other taxes only if they are expenses incurred in a trade or business or in the production of income. Can i still e file 2011 taxes However, you can deduct foreign real property taxes that are not trade or business expenses as an itemized deduction on Schedule A (Form 1040). Can i still e file 2011 taxes Carrybacks and carryovers. Can i still e file 2011 taxes   There is a limit on the credit you can claim in a tax year. Can i still e file 2011 taxes If your qualified foreign taxes exceed the credit limit, you may be able to carry over or carry back the excess to another tax year. Can i still e file 2011 taxes If you deduct qualified foreign taxes in a tax year, you cannot use a carryback or carryover in that year. Can i still e file 2011 taxes That is because you cannot take both a deduction and a credit for qualified foreign taxes in the same tax year. Can i still e file 2011 taxes   For more information on the limit, see How To Figure the Credit , later. Can i still e file 2011 taxes For more information on carrybacks and carryovers, see Carryback and Carryover , later. Can i still e file 2011 taxes Making or Changing Your Choice You can make or change your choice to claim a deduction or credit at any time during the period within 10 years from the regular due date for filing the return (without regard to any extension of time to file) for the tax year in which the taxes were actually paid or accrued. Can i still e file 2011 taxes You make or change your choice on your tax return (or on an amended return) for the year your choice is to be effective. Can i still e file 2011 taxes Example. Can i still e file 2011 taxes You paid foreign taxes for the last 13 years and chose to deduct them on your U. Can i still e file 2011 taxes S. Can i still e file 2011 taxes income tax returns. Can i still e file 2011 taxes You were timely in both filing your returns and paying your U. Can i still e file 2011 taxes S. Can i still e file 2011 taxes tax liability. Can i still e file 2011 taxes In February 2013, you file an amended return for tax year 2002 choosing to take a credit for your 2002 foreign taxes because you now realize that the credit is more advantageous than the deduction for that year. Can i still e file 2011 taxes Because the regular due date of your 2002 return was April 15, 2003, this choice is timely (within 10 years). Can i still e file 2011 taxes Because there is a limit on the credit for your 2002 foreign tax, you have unused 2002 foreign taxes. Can i still e file 2011 taxes Ordinarily, you first carry back unused foreign taxes arising in 2002 to, and claim them as a credit in, the 2 preceding tax years. Can i still e file 2011 taxes If you are unable to claim all of them in those 2 years, you carry them forward to the 10 years following the year in which they arose. Can i still e file 2011 taxes Because you originally chose to deduct your foreign taxes and the 10-year period for changing the choice for 2000 and 2001 has passed, you cannot change your choice and carry the unused 2002 foreign taxes back to tax years 2000 and 2001. Can i still e file 2011 taxes Because the 10-year periods for changing the choice have not passed for your 2003 through 2012 income tax returns, you can still choose to claim the credit for those years and carry forward any unused 2002 foreign taxes. Can i still e file 2011 taxes However, you must reduce the unused 2002 foreign taxes that you carry forward by the amount that would have been allowed as a carryback if you had timely carried back the foreign tax to tax years 2000 and 2001. Can i still e file 2011 taxes You cannot take a credit or a deduction for foreign taxes paid on income you exclude under the foreign earned income exclusion or the foreign housing exclusion. Can i still e file 2011 taxes See Foreign Earned Income and Housing Exclusions under Foreign Taxes for Which You Cannot Take a Credit, later. Can i still e file 2011 taxes Why Choose the Credit? The foreign tax credit is intended to relieve you of a double tax burden when your foreign source income is taxed by both the United States and the foreign country. Can i still e file 2011 taxes In most cases, if the foreign tax rate is higher than the U. Can i still e file 2011 taxes S. Can i still e file 2011 taxes rate, there will be no U. Can i still e file 2011 taxes S. Can i still e file 2011 taxes tax on the foreign income. Can i still e file 2011 taxes If the foreign tax rate is lower than the U. Can i still e file 2011 taxes S. Can i still e file 2011 taxes rate, U. Can i still e file 2011 taxes S. Can i still e file 2011 taxes tax on the foreign income will be limited to the difference between the rates. Can i still e file 2011 taxes The foreign tax credit can only reduce U. Can i still e file 2011 taxes S. Can i still e file 2011 taxes taxes on foreign source income; it cannot reduce U. Can i still e file 2011 taxes S. Can i still e file 2011 taxes taxes on U. Can i still e file 2011 taxes S. Can i still e file 2011 taxes source income. Can i still e file 2011 taxes Although no one rule covers all situations, in most cases it is better to take a credit for qualified foreign taxes than to deduct them as an itemized deduction. Can i still e file 2011 taxes This is because: A credit reduces your actual U. Can i still e file 2011 taxes S. Can i still e file 2011 taxes income tax on a dollar-for-dollar basis, while a deduction reduces only your income subject to tax, You can choose to take the foreign tax credit even if you do not itemize your deductions. Can i still e file 2011 taxes You then are allowed the standard deduction in addition to the credit, and If you choose to take the foreign tax credit, and the taxes paid or accrued exceed the credit limit for the tax year, you may be able to carry over or carry back the excess to another tax year. Can i still e file 2011 taxes (See Limit on credit under How To Figure the Credit, later. Can i still e file 2011 taxes ) Example 1. Can i still e file 2011 taxes For 2013, you and your spouse have adjusted gross income of $80,300, including $20,000 of dividend income from foreign sources. Can i still e file 2011 taxes None of the dividends are qualified dividends. Can i still e file 2011 taxes You file a joint return and can claim two $3,900 exemptions. Can i still e file 2011 taxes You had to pay $2,000 in foreign income taxes on the dividend income. Can i still e file 2011 taxes If you take the foreign taxes as an itemized deduction, your total itemized deductions are $15,000. Can i still e file 2011 taxes Your taxable income then is $57,500 and your tax is $7,736. Can i still e file 2011 taxes If you take the credit instead, your itemized deductions are only $13,000. Can i still e file 2011 taxes Your taxable income then is $59,500 and your tax before the credit is $8,036. Can i still e file 2011 taxes After the credit, however, your tax is only $6,036. Can i still e file 2011 taxes Therefore, your tax is $1,700 lower ($7,736 − $6,036) by taking the credit. Can i still e file 2011 taxes Example 2. Can i still e file 2011 taxes In 2013, you receive investment income of $5,000 from a foreign country, which imposes a tax of $1,500 on that income. Can i still e file 2011 taxes You report on your U. Can i still e file 2011 taxes S. Can i still e file 2011 taxes return this income as well as $56,000 of U. Can i still e file 2011 taxes S. Can i still e file 2011 taxes source wages and an allowable $49,000 partnership loss from a U. Can i still e file 2011 taxes S. Can i still e file 2011 taxes partnership. Can i still e file 2011 taxes Your share of the partnership's gross income is $25,000 and your share of its expenses is $74,000. Can i still e file 2011 taxes You are single, entitled to one $3,900 exemption, and have other itemized deductions of $6,850. Can i still e file 2011 taxes If you deduct the foreign tax on your U. Can i still e file 2011 taxes S. Can i still e file 2011 taxes return, your taxable income is a negative $250 ($5,000 + $56,000 − $49,000 − $1,500 − $6,850 − $3,900) and your tax is $0. Can i still e file 2011 taxes If you take the credit instead, your taxable income is $1,250 ($5,000 + $56,000 − $49,000 − $3,900 − $6,850) and your tax before the credit is $126. Can i still e file 2011 taxes You can take a credit of only $113 because of limits discussed later. Can i still e file 2011 taxes Your tax after the credit is $13 ($126 − $113), which is $13 more than if you deduct the foreign tax. Can i still e file 2011 taxes If you choose the credit, you will have unused foreign taxes of $1,387 ($1,500 − $113). Can i still e file 2011 taxes When deciding whether to take the credit or the deduction this year, you will need to consider whether you can benefit from a carryback or carryover of that unused foreign tax. Can i still e file 2011 taxes Credit for Taxes Paid or Accrued You can claim the credit for a qualified foreign tax in the tax year in which you pay it or accrue it, depending on your method of accounting. Can i still e file 2011 taxes “Tax year” refers to the tax year for which your U. Can i still e file 2011 taxes S. Can i still e file 2011 taxes return is filed, not the tax year for which your foreign return is filed. Can i still e file 2011 taxes Accrual method of accounting. Can i still e file 2011 taxes   If you use an accrual method of accounting, you can claim the credit only in the year in which you accrue the tax. Can i still e file 2011 taxes You are using an accrual method of accounting if you report income when you earn it, rather than when you receive it, and you deduct your expenses when you incur them, rather than when you pay them. Can i still e file 2011 taxes   In most cases, foreign taxes accrue when all the events have taken place that fix the amount of the tax and your liability to pay it. Can i still e file 2011 taxes Generally, this occurs on the last day of the tax year for which your foreign return is filed. Can i still e file 2011 taxes Contesting your foreign tax liability. Can i still e file 2011 taxes   If you are contesting your foreign tax liability, you cannot accrue it and take a credit until the amount of foreign tax due is finally determined. Can i still e file 2011 taxes However, if you choose to pay the tax liability you are contesting, you can take a credit for the amount you pay before a final determination of foreign tax liability is made. Can i still e file 2011 taxes Once your liability is determined, the foreign tax credit is allowable for the year to which the foreign tax relates. Can i still e file 2011 taxes If the amount of foreign taxes taken as a credit differs from the final foreign tax liability, you may have to adjust the credit, as discussed later under Foreign Tax Redetermination . Can i still e file 2011 taxes You may have to post a bond. Can i still e file 2011 taxes   If you claim a credit for taxes accrued but not paid, you may have to post an income tax bond to guarantee your payment of any tax due in the event the amount of foreign tax paid differs from the amount claimed. Can i still e file 2011 taxes   The IRS can request this bond at any time without regard to the Time Limit on Tax Assessment discussed later under Carryback and Carryover. Can i still e file 2011 taxes Cash method of accounting. Can i still e file 2011 taxes   If you use the cash method of accounting, you can choose to take the credit either in the year you pay the tax or in the year you accrue it. Can i still e file 2011 taxes You are using the cash method of accounting if you report income in the year you actually or constructively receive it, and deduct expenses in the year you pay them. Can i still e file 2011 taxes Choosing to take credit in the year taxes accrue. Can i still e file 2011 taxes   Even if you use the cash method of accounting, you can choose to take a credit for foreign taxes in the year they accrue. Can i still e file 2011 taxes You make the choice by checking the box in Part II of Form 1116. Can i still e file 2011 taxes Once you make that choice, you must follow it in all later years and take a credit for foreign taxes in the year they accrue. Can i still e file 2011 taxes   In addition, the choice to take the credit when foreign taxes accrue applies to all foreign taxes qualifying for the credit. Can i still e file 2011 taxes You cannot take a credit for some foreign taxes when paid and take a credit for others when accrued. Can i still e file 2011 taxes   If you make the choice to take the credit when foreign taxes accrue and pay them in a later year, you cannot claim a deduction for any part of the previously accrued taxes. Can i still e file 2011 taxes Credit based on taxes paid in earlier year. Can i still e file 2011 taxes   If, in earlier years, you took the credit based on taxes paid, and this year you choose to take the credit based on taxes accrued, you may be able to take the credit this year for taxes from more than one year. Can i still e file 2011 taxes Example. Can i still e file 2011 taxes Last year you took the credit based on taxes paid. Can i still e file 2011 taxes This year you chose to take the credit based on taxes accrued. Can i still e file 2011 taxes During the year you paid foreign income taxes owed for last year. Can i still e file 2011 taxes You also accrued foreign income taxes for this year that you did not pay by the end of the year. Can i still e file 2011 taxes You can base the credit on your return for this year on both last year's taxes that you paid and this year's taxes that you accrued. Can i still e file 2011 taxes Foreign Currency and Exchange Rates U. Can i still e file 2011 taxes S. Can i still e file 2011 taxes income tax is imposed on income expressed in U. Can i still e file 2011 taxes S. Can i still e file 2011 taxes dollars, while in most cases the foreign tax is imposed on income expressed in foreign currency. Can i still e file 2011 taxes Therefore, fluctuations in the value of the foreign currency relative to the U. Can i still e file 2011 taxes S. Can i still e file 2011 taxes dollar may affect the foreign tax credit. Can i still e file 2011 taxes Translating foreign currency into U. Can i still e file 2011 taxes S. Can i still e file 2011 taxes dollars. Can i still e file 2011 taxes   If you receive all or part of your income or pay some or all of your expenses in foreign currency, you must translate the foreign currency into U. Can i still e file 2011 taxes S. Can i still e file 2011 taxes dollars. Can i still e file 2011 taxes How and when you do this depends on your functional currency. Can i still e file 2011 taxes In most cases, your functional currency is the U. Can i still e file 2011 taxes S. Can i still e file 2011 taxes dollar unless you are required to use the currency of a foreign country. Can i still e file 2011 taxes   You must make all federal income tax determinations in your functional currency. Can i still e file 2011 taxes The U. Can i still e file 2011 taxes S. Can i still e file 2011 taxes dollar is the functional currency for all taxpayers except some qualified business units. Can i still e file 2011 taxes A qualified business unit is a separate and clearly identified unit of a trade or business that maintains separate books and records. Can i still e file 2011 taxes Unless you are self-employed, your functional currency is the U. Can i still e file 2011 taxes S. Can i still e file 2011 taxes dollar. Can i still e file 2011 taxes   Even if you are self-employed and have a qualified business unit, your functional currency is the U. Can i still e file 2011 taxes S. Can i still e file 2011 taxes dollar if any of the following apply. Can i still e file 2011 taxes You conduct the business primarily in dollars. Can i still e file 2011 taxes The principal place of business is located in the United States. Can i still e file 2011 taxes You choose to or are required to use the dollar as your functional currency. Can i still e file 2011 taxes The business books and records are not kept in the currency of the economic environment in which a significant part of the business activities is conducted. Can i still e file 2011 taxes   If your functional currency is the U. Can i still e file 2011 taxes S. Can i still e file 2011 taxes dollar, you must immediately translate into dollars all items of income, expense, etc. Can i still e file 2011 taxes , that you receive, pay, or accrue in a foreign currency and that will affect computation of your income tax. Can i still e file 2011 taxes If there is more than one exchange rate, use the one that most properly reflects your income. Can i still e file 2011 taxes In most cases, you can get exchange rates from banks and U. Can i still e file 2011 taxes S. Can i still e file 2011 taxes Embassies. Can i still e file 2011 taxes   If your functional currency is not the U. Can i still e file 2011 taxes S. Can i still e file 2011 taxes dollar, make all income tax determinations in your functional currency. Can i still e file 2011 taxes At the end of the year, translate the results, such as income or loss, into U. Can i still e file 2011 taxes S. Can i still e file 2011 taxes dollars to report on your income tax return. Can i still e file 2011 taxes    For more information, write to: Internal Revenue Service International Section Philadelphia, PA 19255-0725 Rate of exchange for foreign taxes paid. Can i still e file 2011 taxes   Use the rate of exchange in effect on the date you paid the foreign taxes to the foreign country unless you meet the exception discussed next. Can i still e file 2011 taxes If your tax was withheld in foreign currency, use the rate of exchange in effect for the date on which the tax was withheld. Can i still e file 2011 taxes If you make foreign estimated tax payments, you use the rate of exchange in effect for the date on which you made the estimated tax payment. Can i still e file 2011 taxes   The exchange rate rules discussed here apply even if the foreign taxes are paid or accrued with respect to a foreign tax credit splitting event (discussed later). Can i still e file 2011 taxes Exception. Can i still e file 2011 taxes   If you claim the credit for foreign taxes on an accrual basis, in most cases you must use the average exchange rate for the tax year to which the taxes relate. Can i still e file 2011 taxes This rule applies to accrued taxes relating to tax years beginning after 1997 and only under the following conditions. Can i still e file 2011 taxes The foreign taxes are paid on or after the first day of the tax year to which they relate. Can i still e file 2011 taxes The foreign taxes are paid not later than 2 years after the close of the tax year to which they relate. Can i still e file 2011 taxes The foreign tax liability is not denominated in an inflationary currency (defined in the Form 1116 instructions). Can i still e file 2011 taxes (This condition applies to taxes paid or accrued in tax years beginning after November 6, 2007. Can i still e file 2011 taxes )   For all other foreign taxes, you should use the exchange rate in effect on the date you paid them. Can i still e file 2011 taxes Election to use exchange rate on date paid. Can i still e file 2011 taxes   If you have accrued foreign taxes that you are otherwise required to convert using the average exchange rate, you may elect to use the exchange rate in effect on the date the foreign taxes are paid if the taxes are denominated in a nonfunctional foreign currency. Can i still e file 2011 taxes If any of the accrued taxes are unpaid, you must translate them into U. Can i still e file 2011 taxes S. Can i still e file 2011 taxes dollars using the exchange rate on the last day of the U. Can i still e file 2011 taxes S. Can i still e file 2011 taxes tax year to which those taxes relate. Can i still e file 2011 taxes You may make the election for all nonfunctional currency foreign income taxes or only those nonfunctional currency foreign income taxes that are attributable to qualified business units with a U. Can i still e file 2011 taxes S. Can i still e file 2011 taxes dollar functional currency. Can i still e file 2011 taxes Once made, the election applies to the tax year for which made and all subsequent tax years unless revoked with the consent of the IRS. Can i still e file 2011 taxes The election is available for tax years beginning after 2004. Can i still e file 2011 taxes It must be made by the due date (including extensions) for filing the tax return for the first tax year to which the election applies. Can i still e file 2011 taxes Make the election by attaching a statement to the applicable tax return. Can i still e file 2011 taxes The statement must identify whether the election is made for all foreign taxes or only for foreign taxes attributable to qualified business units with a U. Can i still e file 2011 taxes S. Can i still e file 2011 taxes dollar functional currency. Can i still e file 2011 taxes Foreign Tax Redetermination A foreign tax redetermination is any change in your foreign tax liability that may affect your U. Can i still e file 2011 taxes S. Can i still e file 2011 taxes foreign tax credit claimed. Can i still e file 2011 taxes The year in which to claim the credit remains the year to which the foreign taxes paid or accrued relate, even if the change in foreign tax liability occurs in a later year. Can i still e file 2011 taxes If a foreign tax redetermination occurs, a redetermination of your U. Can i still e file 2011 taxes S. Can i still e file 2011 taxes tax liability is required if any of the following conditions apply. Can i still e file 2011 taxes The accrued taxes when paid differ from the amounts claimed as a credit. Can i still e file 2011 taxes The accrued taxes you claimed as a credit in one tax year are not paid within 2 years after the end of that tax year. Can i still e file 2011 taxes If this applies to you, you must reduce the credit previously claimed by the amount of the unpaid taxes. Can i still e file 2011 taxes You will not be allowed a credit for the unpaid taxes until you pay them. Can i still e file 2011 taxes When you pay the accrued taxes, a new foreign tax redetermination occurs and you must translate the taxes into U. Can i still e file 2011 taxes S. Can i still e file 2011 taxes dollars using the exchange rate as of the date they were paid. Can i still e file 2011 taxes The foreign tax credit is allowed for the year to which the foreign tax relates. Can i still e file 2011 taxes See Rate of exchange for foreign taxes paid , earlier, under Foreign Currency and Exchange Rates. Can i still e file 2011 taxes The foreign taxes you paid are refunded in whole or in part. Can i still e file 2011 taxes For taxes taken into account when accrued but translated into dollars on the date of payment, the dollar value of the accrued tax differs from the dollar value of the tax paid because of fluctuations in the exchange rate between the date of accrual and the date of payment. Can i still e file 2011 taxes However, no redetermination is required if the change in foreign tax liability for each foreign country is solely attributable to exchange rate fluctuations and is less than the smaller of: $10,000, or 2% of the total dollar amount of the foreign tax initially accrued for that foreign country for the U. Can i still e file 2011 taxes S. Can i still e file 2011 taxes tax year. Can i still e file 2011 taxes In this case, you must adjust your U. Can i still e file 2011 taxes S. Can i still e file 2011 taxes tax in the tax year in which the accrued foreign taxes are paid. Can i still e file 2011 taxes Notice to the Internal Revenue Service (IRS) of Redetermination You are required to notify the IRS about a foreign tax credit redetermination that affects your U. Can i still e file 2011 taxes S. Can i still e file 2011 taxes tax liability for each tax year affected by the redetermination. Can i still e file 2011 taxes In most cases, you must file Form 1040X, Amended U. Can i still e file 2011 taxes S. Can i still e file 2011 taxes Individual Income Tax Return, with a revised Form 1116 and a statement that contains information sufficient for the IRS to redetermine your U. Can i still e file 2011 taxes S. Can i still e file 2011 taxes tax liability for the year or years affected. Can i still e file 2011 taxes See Contents of statement , later. Can i still e file 2011 taxes You are not required to attach Form 1116 for a tax year affected by a redetermination if: The amount of your creditable taxes paid or accrued during the tax year is not more than $300 ($600 if married filing a joint return) as a result of the foreign tax redetermination, and You meet the requirements listed under Exemption from foreign tax credit limit under How To Figure the Credit, later. Can i still e file 2011 taxes There are other exceptions to this requirement. Can i still e file 2011 taxes They are discussed later under Due date of notification to IRS . Can i still e file 2011 taxes Contents of statement. Can i still e file 2011 taxes   The statement must include all of the following. Can i still e file 2011 taxes Your name, address, and taxpayer identification number. Can i still e file 2011 taxes The tax year or years that are affected by the foreign tax redetermination. Can i still e file 2011 taxes The date or dates the foreign taxes were accrued, if applicable. Can i still e file 2011 taxes The date or dates the foreign taxes were paid. Can i still e file 2011 taxes The amount of foreign taxes paid or accrued on each date (in foreign currency) and the exchange rate used to translate each amount. Can i still e file 2011 taxes Information sufficient to determine any interest due from or owing to you, including the amount of any interest paid to you by the foreign government and the dates received. Can i still e file 2011 taxes   In the case of any foreign taxes that were not paid before the date two years after the close of the tax year to which those taxes relate, you must provide the amount of those taxes in foreign currency and the exchange rate that was used to translate that amount when originally claimed as a credit. Can i still e file 2011 taxes   If any foreign tax was refunded in whole or in part, you must provide the date and amount (in foreign currency) of each refund, the exchange rate that was used to translate each amount when originally claimed as a credit, and the exchange rate for the date the refund was received (for purposes of computing foreign currency gain or loss under Internal Revenue Code section 988). Can i still e file 2011 taxes Due date of notification to IRS. Can i still e file 2011 taxes   If you pay less foreign tax than you originally claimed a credit for, in most cases you must file a notification by the due date (with extensions) of your original return for your tax year in which the foreign tax redetermination occurred. Can i still e file 2011 taxes There is no limit on the time the IRS has to redetermine and assess the correct U. Can i still e file 2011 taxes S. Can i still e file 2011 taxes tax due. Can i still e file 2011 taxes If you pay more foreign tax than you originally claimed a credit for, you have 10 years to file a claim for refund of U. Can i still e file 2011 taxes S. Can i still e file 2011 taxes taxes. Can i still e file 2011 taxes See Time Limit on Refund Claims , later. Can i still e file 2011 taxes   Exceptions to this due date are explained in the next two paragraphs. Can i still e file 2011 taxes Multiple redeterminations of U. Can i still e file 2011 taxes S. Can i still e file 2011 taxes tax liability for same tax year. Can i still e file 2011 taxes   Where more than one foreign tax redetermination requires a redetermination of U. Can i still e file 2011 taxes S. Can i still e file 2011 taxes tax liability for the same tax year and those redeterminations occur in the same tax year or within two consecutive tax years, you can file for that tax year one notification (Form 1040X with a Form 1116 and the required statement) that reflects all those tax redeterminations. Can i still e file 2011 taxes If you choose to file one notification, the due date for that notification is the due date of the original return (with extensions) for the year in which the first foreign tax redetermination that reduced your foreign tax liability occurred. Can i still e file 2011 taxes However, foreign tax redeterminations with respect to the tax year for which a redetermination of U. Can i still e file 2011 taxes S. Can i still e file 2011 taxes tax liability is required may occur after the due date for providing that notification. Can i still e file 2011 taxes In this situation, you may have to file more than one Form 1040X for that tax year. Can i still e file 2011 taxes Additional U. Can i still e file 2011 taxes S. Can i still e file 2011 taxes tax due eliminated by foreign tax credit carryback or carryover. Can i still e file 2011 taxes   If a foreign tax redetermination requires a redetermination of U. Can i still e file 2011 taxes S. Can i still e file 2011 taxes tax liability that would otherwise result in an additional amount of U. Can i still e file 2011 taxes S. Can i still e file 2011 taxes tax due, but the additional tax is eliminated by a carryback or carryover of an unused foreign tax, you do not have to amend your tax return for the year affected by the redetermination. Can i still e file 2011 taxes Instead, you can notify the IRS by attaching a statement to the original return for the tax year in which the foreign tax redetermination occurred. Can i still e file 2011 taxes You must file the statement by the due date (with extensions) of that return. Can i still e file 2011 taxes The statement must show the amount of the unused foreign taxes paid or accrued and a detailed schedule showing the computation of the carryback or carryover (including the amounts carried back or over to the year for which a redetermination on U. Can i still e file 2011 taxes S. Can i still e file 2011 taxes tax liability is required). Can i still e file 2011 taxes Failure-to-notify penalty. Can i still e file 2011 taxes   If you fail to notify the IRS of a foreign tax redetermination and cannot show reasonable cause for the failure, you may have to pay a penalty. Can i still e file 2011 taxes   For each month, or part of a month, that the failure continues, you pay a penalty of 5% of the tax due resulting from a redetermination of your U. Can i still e file 2011 taxes S. Can i still e file 2011 taxes tax. Can i still e file 2011 taxes This penalty cannot be more than 25% of the tax due. Can i still e file 2011 taxes Foreign tax refund. Can i still e file 2011 taxes   If you receive a foreign tax refund without interest from the foreign government, you will not have to pay interest on the amount of tax due resulting from the adjustment to your U. Can i still e file 2011 taxes S. Can i still e file 2011 taxes tax for the time before the date of the refund. Can i still e file 2011 taxes   However, if you receive a foreign tax refund with interest, you must pay interest to the IRS up to the amount of the interest paid to you by the foreign government. Can i still e file 2011 taxes The interest you must pay cannot be more than the interest you would have had to pay on taxes that were unpaid for any other reason for the same period. Can i still e file 2011 taxes Interest also is owed from the time you receive a refund until you pay the additional tax due. Can i still e file 2011 taxes Foreign tax imposed on foreign refund. Can i still e file 2011 taxes   If your foreign tax refund is taxed by the foreign country, you cannot take a separate credit or deduction for this additional foreign tax. Can i still e file 2011 taxes However, when you refigure the foreign tax credit taken for the original foreign tax, reduce the amount of the refund by the foreign tax paid on the refund. Can i still e file 2011 taxes Example. Can i still e file 2011 taxes You paid a foreign income tax of $3,000 in 2011, and received a foreign tax refund of $500 in 2013 on which a foreign tax of $100 was imposed. Can i still e file 2011 taxes When you refigure your credit for 2011, you must reduce the $3,000 you paid by $400. Can i still e file 2011 taxes Time Limit on Refund Claims You have 10 years to file a claim for refund of U. Can i still e file 2011 taxes S. Can i still e file 2011 taxes tax if you find that you paid or accrued a larger foreign tax than you claimed a credit for. Can i still e file 2011 taxes The 10-year period begins the day after the regular due date for filing the return (without extensions) for the year in which the taxes were actually paid or accrued. Can i still e file 2011 taxes You have 10 years to file your claim regardless of whether you claim the credit for taxes paid or taxes accrued. Can i still e file 2011 taxes The 10-year period applies to claims for refund or credit based on: Fixing math errors in figuring qualified foreign taxes, Reporting qualified foreign taxes not originally reported on the return, or Any other change in the size of the credit (including one caused by correcting the foreign tax credit limit). Can i still e file 2011 taxes The special 10-year period also applies to making or changing your choice to claim a deduction or credit for foreign taxes. Can i still e file 2011 taxes See Making or Changing Your Choice discussed earlier under Choosing To Take Credit or Deduction. Can i still e file 2011 taxes Who Can Take the Credit? U. Can i still e file 2011 taxes S. Can i still e file 2011 taxes citizens, resident aliens, and nonresident aliens who paid foreign income tax and are subject to U. Can i still e file 2011 taxes S. Can i still e file 2011 taxes tax on foreign source income may be able to take a foreign tax credit. Can i still e file 2011 taxes U. Can i still e file 2011 taxes S. Can i still e file 2011 taxes Citizens If you are a U. Can i still e file 2011 taxes S. Can i still e file 2011 taxes citizen, you are taxed by the United States on your worldwide income wherever you live. Can i still e file 2011 taxes You are normally entitled to take a credit for foreign taxes you pay or accrue. Can i still e file 2011 taxes Resident Aliens If you are a resident alien of the United States, you can take a credit for foreign taxes subject to the same general rules as U. Can i still e file 2011 taxes S. Can i still e file 2011 taxes citizens. Can i still e file 2011 taxes If you are a bona fide resident of Puerto Rico for the entire tax year, you also come under the same rules. Can i still e file 2011 taxes Usually, you can take a credit only for those foreign taxes imposed on income you actually or constructively received while you had resident alien status. Can i still e file 2011 taxes For information on alien status, see Publication 519. Can i still e file 2011 taxes Nonresident Aliens If you are a nonresident alien, you cannot take the credit in most cases. Can i still e file 2011 taxes However, you may be able to take the credit if: You were a bona fide resident of Puerto Rico during your entire tax year, or You pay or accrue tax to a foreign country or U. Can i still e file 2011 taxes S. Can i still e file 2011 taxes possession on income from foreign sources that is effectively connected with a trade or business in the United States. Can i still e file 2011 taxes But if you must pay tax to a foreign country or U. Can i still e file 2011 taxes S. Can i still e file 2011 taxes possession on income from U. Can i still e file 2011 taxes S. Can i still e file 2011 taxes sources only because you are a citizen or a resident of that country or U. Can i still e file 2011 taxes S. Can i still e file 2011 taxes possession, do not use that tax in figuring the amount of your credit. Can i still e file 2011 taxes For information on alien status and effectively connected income, see Publication 519. Can i still e file 2011 taxes What Foreign Taxes Qualify for the Credit? In most cases, the following four tests must be met for any foreign tax to qualify for the credit. Can i still e file 2011 taxes The tax must be imposed on you. Can i still e file 2011 taxes You must have paid or accrued the tax. Can i still e file 2011 taxes The tax must be the legal and actual foreign tax liability. Can i still e file 2011 taxes The tax must be an income tax (or a tax in lieu of an income tax). Can i still e file 2011 taxes Certain foreign taxes do not qualify for the credit even if the four tests are met. Can i still e file 2011 taxes See Foreign Taxes for Which You Cannot Take a Credit, later. Can i still e file 2011 taxes Tax Must Be Imposed on You You can claim a credit only for foreign taxes that are imposed on you by a foreign country or U. Can i still e file 2011 taxes S. Can i still e file 2011 taxes possession. Can i still e file 2011 taxes For example, a tax that is deducted from your wages is considered to be imposed on you. Can i still e file 2011 taxes You cannot shift the right to claim the credit by contract or other means. Can i still e file 2011 taxes Foreign country. Can i still e file 2011 taxes   A foreign country includes any foreign state and its political subdivisions. Can i still e file 2011 taxes Income, war profits, and excess profits taxes paid or accrued to a foreign city or province qualify for the foreign tax credit. Can i still e file 2011 taxes U. Can i still e file 2011 taxes S. Can i still e file 2011 taxes possessions. Can i still e file 2011 taxes   For foreign tax credit purposes, all qualified taxes paid to U. Can i still e file 2011 taxes S. Can i still e file 2011 taxes possessions are considered foreign taxes. Can i still e file 2011 taxes For this purpose, U. Can i still e file 2011 taxes S. Can i still e file 2011 taxes possessions include Puerto Rico and American Samoa. Can i still e file 2011 taxes   When the term “foreign country” is used in this publication, it includes U. Can i still e file 2011 taxes S. Can i still e file 2011 taxes possessions unless otherwise stated. Can i still e file 2011 taxes You Must Have Paid or Accrued the Tax In most cases, you can claim the credit only if you paid or accrued the foreign tax to a foreign country or U. Can i still e file 2011 taxes S. Can i still e file 2011 taxes possession. Can i still e file 2011 taxes However, the paragraphs that follow describe some instances in which you can claim the credit even if you did not directly pay or accrue the tax yourself. Can i still e file 2011 taxes Joint return. Can i still e file 2011 taxes   If you file a joint return, you can claim the credit based on the total foreign income taxes paid or accrued by you and your spouse. Can i still e file 2011 taxes Combined income. Can i still e file 2011 taxes   If foreign tax is imposed on the combined income of two or more persons (for example, spouses), the tax is allocated among, and considered paid by, these persons on a pro rata basis in proportion to each person's portion of the combined income, as determined under foreign law and Regulations section 1. Can i still e file 2011 taxes 901-2(f)(3)(iii). Can i still e file 2011 taxes Combined income with respect to each foreign tax that is imposed on a combined basis (and combined income subject to tax exemption or preferential tax rates) is computed separately, and the tax on that combined income is allocated separately. Can i still e file 2011 taxes   These rules apply to foreign taxes paid or accrued in tax years beginning after February 14, 2012. Can i still e file 2011 taxes However, you can choose to apply the new rules to foreign taxes paid or accrued in tax years beginning after December 31, 2010, and before February 15, 2012. Can i still e file 2011 taxes For more details, see paragraphs (f) and (h) of Regulations section 1. Can i still e file 2011 taxes 901-2. Can i still e file 2011 taxes For similar rules applicable to prior tax years, see Regulations section 1. Can i still e file 2011 taxes 901-2 (revised as of April 1, 2011). Can i still e file 2011 taxes Example. Can i still e file 2011 taxes You and your spouse reside in Country X, which imposes income tax on your combined incomes. Can i still e file 2011 taxes Both of you use the “u” as your functional currency. Can i still e file 2011 taxes Country X apportions tax based on income. Can i still e file 2011 taxes You had income of 30,000u and your spouse had income of 20,000u. Can i still e file 2011 taxes Your filing status on your U. Can i still e file 2011 taxes S. Can i still e file 2011 taxes income tax return is married filing separately. Can i still e file 2011 taxes You can claim only 60% (30,000u/50,000u) of the foreign taxes imposed on your income on your U. Can i still e file 2011 taxes S income tax return. Can i still e file 2011 taxes Your spouse can claim only 40% (20,000u/50,000u). Can i still e file 2011 taxes Partner or S corporation shareholder. Can i still e file 2011 taxes   If you are a member of a partnership, or a shareholder in an S corporation, you can claim the credit based on your proportionate share of the foreign income taxes paid or accrued by the partnership or the S corporation. Can i still e file 2011 taxes These amounts will be shown on the Schedule K-1 you receive from the partnership or S corporation. Can i still e file 2011 taxes However, if you are a shareholder in an S corporation that in turn owns stock in a foreign corporation, you cannot claim a credit for your share of foreign taxes paid by the foreign corporation. Can i still e file 2011 taxes Beneficiary. Can i still e file 2011 taxes   If you are a beneficiary of an estate or trust, you may be able to claim the credit based on your proportionate share of foreign income taxes paid or accrued by the estate or trust. Can i still e file 2011 taxes This amount will be shown on the Schedule K-1 you receive from the estate or trust. Can i still e file 2011 taxes However, you must show that the tax was imposed on income of the estate and not on income received by the decedent. Can i still e file 2011 taxes Mutual fund shareholder. Can i still e file 2011 taxes   If you are a shareholder of a mutual fund or other regulated investment company (RIC), you may be able to claim the credit based on your share of foreign income taxes paid by the fund if it chooses to pass the credit on to its shareholders. Can i still e file 2011 taxes You should receive from the mutual fund or other RIC a Form 1099-DIV, or similar statement, showing your share of the foreign income, and your share of the foreign taxes paid. Can i still e file 2011 taxes If you do not receive this information, you will need to contact the fund. Can i still e file 2011 taxes Controlled foreign corporation shareholder. Can i still e file 2011 taxes   If you are a shareholder of a controlled foreign corporation and choose to be taxed at corporate rates on the amount you must include in gross income from that corporation, you can claim the credit based on your share of foreign taxes paid or accrued by the controlled foreign corporation. Can i still e file 2011 taxes If you make this election, you must claim the credit by filing Form 1118, Foreign Tax Credit—Corporations. Can i still e file 2011 taxes Controlled foreign corporation. Can i still e file 2011 taxes   A controlled foreign corporation is a foreign corporation in which U. Can i still e file 2011 taxes S. Can i still e file 2011 taxes shareholders own more than 50% of the voting power or value of the stock. Can i still e file 2011 taxes You are considered a U. Can i still e file 2011 taxes S. Can i still e file 2011 taxes shareholder if you own, directly or indirectly, 10% or more of the total voting power of all classes of the foreign corporation's stock. Can i still e file 2011 taxes See Internal Revenue Code sections 951(b) and 958(b) for more information. Can i still e file 2011 taxes Tax Must Be the Legal and Actual Foreign Tax Liability The amount of foreign tax that qualifies is not necessarily the amount of tax withheld by the foreign country. Can i still e file 2011 taxes Only the legal and actual foreign tax liability that you paid or accrued during the year qualifies for the credit. Can i still e file 2011 taxes Foreign tax refund. Can i still e file 2011 taxes   You cannot take a foreign tax credit for income taxes paid to a foreign country if it is reasonably certain the amount would be refunded, credited, rebated, abated, or forgiven if you made a claim. Can i still e file 2011 taxes   For example, the United States has tax treaties with many countries allowing U. Can i still e file 2011 taxes S. Can i still e file 2011 taxes citizens and residents reductions in the rates of tax of those foreign countries. Can i still e file 2011 taxes However, some treaty countries require U. Can i still e file 2011 taxes S. Can i still e file 2011 taxes citizens and residents to pay the tax figured without regard to the lower treaty rates and then claim a refund for the amount by which the tax actually paid is more than the amount of tax figured using the lower treaty rate. Can i still e file 2011 taxes The qualified foreign tax is the amount figured using the lower treaty rate and not the amount actually paid, because the excess tax is refundable. Can i still e file 2011 taxes Subsidy received. Can i still e file 2011 taxes   Tax payments a foreign country returns to you in the form of a subsidy do not qualify for the foreign tax credit. Can i still e file 2011 taxes This rule applies even if the subsidy is given to a person related to you, or persons who participated with you in a transaction or a related transaction. Can i still e file 2011 taxes A subsidy can be provided by any means but must be determined, directly or indirectly, in relation to the amount of tax, or to the base used to figure the tax. Can i still e file 2011 taxes   The term “subsidy” includes any type of benefit. Can i still e file 2011 taxes Some ways of providing a subsidy are refunds, credits, deductions, payments, or discharges of obligations. Can i still e file 2011 taxes Shareholder receiving refund for corporate tax in integrated system. Can i still e file 2011 taxes   Under some foreign tax laws and treaties, a shareholder is considered to have paid part of the tax that is imposed on the corporation. Can i still e file 2011 taxes You may be able to claim a refund of these taxes from the foreign government. Can i still e file 2011 taxes You must include the refund (including any amount withheld) in your income in the year received. Can i still e file 2011 taxes Any tax withheld from the refund is a qualified foreign tax. Can i still e file 2011 taxes Example. Can i still e file 2011 taxes You are a shareholder of a French corporation. Can i still e file 2011 taxes You receive a $100 refund of the tax paid to France by the corporation on the earnings distributed to you as a dividend. Can i still e file 2011 taxes The French government imposes a 15% withholding tax ($15) on the refund you received. Can i still e file 2011 taxes You receive a check for $85. Can i still e file 2011 taxes You include $100 in your income. Can i still e file 2011 taxes The $15 of tax withheld is a qualified foreign tax. Can i still e file 2011 taxes Tax Must Be an Income Tax (or Tax in Lieu of Income Tax) In most cases, only income, war profits, and excess profits taxes (income taxes) qualify for the foreign tax credit. Can i still e file 2011 taxes Foreign taxes on wages, dividends, interest, and royalties qualify for the credit in most cases. Can i still e file 2011 taxes Furthermore, foreign taxes on income can qualify even though they are not imposed under an income tax law if the tax is in lieu of an income, war profits, or excess profits tax. Can i still e file 2011 taxes See Taxes in Lieu of Income Taxes , later. Can i still e file 2011 taxes Income Tax Simply because the levy is called an income tax by the foreign taxing authority does not make it an income tax for this purpose. Can i still e file 2011 taxes A foreign levy is an income tax only if it meets both of the following requirements. Can i still e file 2011 taxes It is a tax; that is, you have to pay it and you get no specific economic benefit (discussed below) from paying it. Can i still e file 2011 taxes The predominant character of the tax is that of an income tax in the U. Can i still e file 2011 taxes S. Can i still e file 2011 taxes sense. Can i still e file 2011 taxes A foreign levy may meet these requirements even if the foreign tax law differs from U. Can i still e file 2011 taxes S. Can i still e file 2011 taxes tax law. Can i still e file 2011 taxes The foreign law may include in income items that U. Can i still e file 2011 taxes S. Can i still e file 2011 taxes law does not include, or it may allow certain exclusions or deductions that U. Can i still e file 2011 taxes S. Can i still e file 2011 taxes law does not allow. Can i still e file 2011 taxes Specific economic benefit. Can i still e file 2011 taxes   In most cases, you get a specific economic benefit if you receive, or are considered to receive, an economic benefit from the foreign country imposing the levy, and: If there is a generally imposed income tax, the economic benefit is not available on substantially the same terms to all persons subject to the income tax, or If there is no generally imposed income tax, the economic benefit is not available on substantially the same terms to the population of the foreign country in general. Can i still e file 2011 taxes   You are considered to receive a specific economic benefit if you have a business transaction with a person who receives a specific economic benefit from the foreign country and, under the terms and conditions of the transaction, you receive directly or indirectly all or part of the benefit. Can i still e file 2011 taxes   However, see the exception discussed later under Pension, unemployment, and disability fund payments . Can i still e file 2011 taxes Economic benefits. Can i still e file 2011 taxes   Economic benefits include the following. Can i still e file 2011 taxes Goods. Can i still e file 2011 taxes Services. Can i still e file 2011 taxes Fees or other payments. Can i still e file 2011 taxes Rights to use, acquire, or extract resources, patents, or other property the foreign country owns or controls. Can i still e file 2011 taxes Discharges of contractual obligations. Can i still e file 2011 taxes   In most cases, the right or privilege merely to engage in business is not an economic benefit. Can i still e file 2011 taxes Dual-capacity taxpayers. Can i still e file 2011 taxes   If you are subject to a foreign country's levy and you also receive a specific economic benefit from that foreign country, you are a “dual-capacity taxpayer. Can i still e file 2011 taxes ” As a dual-capacity taxpayer, you cannot claim a credit for any part of the foreign levy, unless you establish that the amount paid under a distinct element of the foreign levy is a tax, rather than a compulsory payment for a direct or indirect specific economic benefit. Can i still e file 2011 taxes    For more information on how to establish amounts paid under separate elements of a levy, write to: Internal Revenue Service International Section Philadelphia, PA 19255-0725 Pension, unemployment, and disability fund payments. Can i still e file 2011 taxes   A foreign tax imposed on an individual to pay for retirement, old-age, death, survivor, unemployment, illness, or disability benefits, or for substantially similar purposes, is not payment for a specific economic benefit if the amount of the tax does not depend on the age, life expectancy, or similar characteristics of that individual. Can i still e file 2011 taxes    No deduction or credit is allowed, however, for social security taxes paid or accrued to a foreign country with which the United States has a social security agreement. Can i still e file 2011 taxes For more information about these agreements, see Publication 54. Can i still e file 2011 taxes Soak-up taxes. Can i still e file 2011 taxes   A foreign tax is not predominantly an income tax and does not qualify for credit to the extent it is a soak-up tax. Can i still e file 2011 taxes A tax is a soak-up tax to the extent that liability for it depends on the availability of a credit for it against income tax imposed by another country. Can i still e file 2011 taxes This rule applies only if and to the extent that the foreign tax would not be imposed if the credit were not available. Can i still e file 2011 taxes Penalties and interest. Can i still e file 2011 taxes   Amounts paid to a foreign government to satisfy a liability for interest, fines, penalties, or any similar obligation are not taxes and do not qualify for the credit. Can i still e file 2011 taxes Taxes not based on income. Can i still e file 2011 taxes   Foreign taxes based on gross receipts or the number of units produced, rather than on realized net income, do not qualify unless they are imposed in lieu of an income tax, as discussed next. Can i still e file 2011 taxes Taxes based on assets, such as property taxes, do not qualify for the credit. Can i still e file 2011 taxes Taxes in Lieu of Income Taxes A tax paid or accrued to a foreign country qualifies for the credit if it is imposed in lieu of an income tax otherwise generally imposed. Can i still e file 2011 taxes A foreign levy is a tax in lieu of an income tax only if: It is not payment for a specific economic benefit as discussed earlier, and The tax is imposed in place of, and not in addition to, an income tax otherwise generally imposed. Can i still e file 2011 taxes A tax in lieu of an income tax does not have to be based on realized net income. Can i still e file 2011 taxes A foreign tax imposed on gross income, gross receipts or sales, or the number of units produced or exported can qualify for the credit. Can i still e file 2011 taxes In most cases, a soak-up tax (discussed earlier) does not qualify as a tax in lieu of an income tax. Can i still e file 2011 taxes However, if the foreign country imposes a soak-up tax in lieu of an income tax, the amount that does not qualify for foreign tax credit is the lesser of the following amounts. Can i still e file 2011 taxes The soak-up tax. Can i still e file 2011 taxes The foreign tax you paid that is more than the amount you would have paid if you had been subject to the generally imposed income tax. Can i still e file 2011 taxes Foreign Taxes for Which You Cannot Take a Credit This part discusses the foreign taxes for which you cannot take a credit. Can i still e file 2011 taxes These are: Taxes on excluded income, Taxes for which you can only take an itemized deduction, Taxes on foreign mineral income, Taxes from international boycott operations, A portion of taxes on combined foreign oil and gas income, Taxes of U. Can i still e file 2011 taxes S. Can i still e file 2011 taxes persons controlling foreign corporations and partnerships who fail to file required information returns, and Taxes related to a foreign tax splitting event. Can i still e file 2011 taxes Taxes on Excluded Income You cannot take a credit for foreign taxes paid or accrued on certain income that is excluded from U. Can i still e file 2011 taxes S. Can i still e file 2011 taxes gross income. Can i still e file 2011 taxes Foreign Earned Income and Housing Exclusions You must reduce your foreign taxes available for the credit by the amount of those taxes paid or accrued on income that is excluded from U. Can i still e file 2011 taxes S. Can i still e file 2011 taxes income under the foreign earned income exclusion or the foreign housing exclusion. Can i still e file 2011 taxes See Publication 54 for more information on the foreign earned income and housing exclusions. Can i still e file 2011 taxes Wages completely excluded. Can i still e file 2011 taxes   If your wages are completely excluded, you cannot take a credit for any of the foreign taxes paid or accrued on these wages. Can i still e file 2011 taxes Wages partly excluded. Can i still e file 2011 taxes   If only part of your wages is excluded, you cannot take a credit for the foreign income taxes allocable to the excluded part. Can i still e file 2011 taxes You find the amount allocable to your excluded wages by multiplying the foreign tax paid or accrued on foreign earned income received or accrued during the tax year by a fraction. Can i still e file 2011 taxes   The numerator of the fraction is your foreign earned income and housing amounts excluded under the foreign earned income and housing exclusions for the tax year minus otherwise deductible expenses definitely related and properly apportioned to that income. Can i still e file 2011 taxes Deductible expenses do not include the foreign housing deduction. Can i still e file 2011 taxes   The denominator is your total foreign earned income received or accrued during the tax year minus all deductible expenses allocable to that income (including the foreign housing deduction). Can i still e file 2011 taxes If the foreign law taxes foreign earned income and some other income (for example, earned income from U. Can i still e file 2011 taxes S. Can i still e file 2011 taxes sources or a type of income not subject to U. Can i still e file 2011 taxes S. Can i still e file 2011 taxes tax), and the taxes on the other income cannot be segregated, the denominator of the fraction is the total amount of income subject to the foreign tax minus deductible expenses allocable to that income. Can i still e file 2011 taxes Example. Can i still e file 2011 taxes You are a U. Can i still e file 2011 taxes S. Can i still e file 2011 taxes citizen and a cash basis taxpayer, employed by Company X and living in Country A. Can i still e file 2011 taxes Your records show the following: Foreign earned income received $125,000 Unreimbursed business travel expenses 20,000 Income tax paid to Country A 30,000 Exclusion of foreign earned  income and housing allowance 97,600     Because you can exclude part of your wages, you cannot claim a credit for part of the foreign taxes. Can i still e file 2011 taxes To find that part, do the following. Can i still e file 2011 taxes First, find the amount of business expenses allocable to excluded wages and therefore not deductible. Can i still e file 2011 taxes To do this, multiply the otherwise deductible expenses by a fraction. Can i still e file 2011 taxes That fraction is the excluded wages over your foreign earned income. Can i still e file 2011 taxes   $20,000 × $97,600 $125,000 = $15,616             Next, find the numerator of the fraction by which you will multiply the foreign taxes paid. Can i still e file 2011 taxes To do this, subtract business expenses allocable to excluded wages ($15,616) from excluded wages ($97,600). Can i still e file 2011 taxes The result is $81,984. Can i still e file 2011 taxes Then, find the denominator of the fraction by subtracting all your deductible expenses from all your foreign earned income ($125,000 − $20,000 = $105,000). Can i still e file 2011 taxes Finally, multiply the foreign tax you paid by the resulting fraction. Can i still e file 2011 taxes   $30,000 × $81,984  $105,000 = $23,424 The amount of Country A tax you cannot take a credit for is $23,424. Can i still e file 2011 taxes Taxes on Income From Puerto Rico Exempt From U. Can i still e file 2011 taxes S. Can i still e file 2011 taxes Tax If you have income from Puerto Rican sources that is not taxable, you must reduce your foreign taxes paid or accrued by the taxes allocable to the exempt income. Can i still e file 2011 taxes For information on figuring the reduction, see Publication 570. Can i still e file 2011 taxes Possession Exclusion If you are a bona fide resident of American Samoa and exclude income from sources in American Samoa, you cannot take a credit for the taxes you pay or accrue on the excluded income. Can i still e file 2011 taxes For more information on this exclusion, see Publication 570. Can i still e file 2011 taxes Extraterritorial Income Exclusion You cannot take a credit for taxes you pay on qualifying foreign trade income excluded on Form 8873, Extraterritorial Income Exclusion. Can i still e file 2011 taxes However, see Internal Revenue Code section 943(d) for an exception for certain withholding taxes. Can i still e file 2011 taxes Taxes for Which You Can Only Take an Itemized Deduction You cannot claim a foreign tax credit for foreign income taxes paid or accrued under the following circumstances. Can i still e file 2011 taxes However, you can claim an itemized deduction for these taxes. Can i still e file 2011 taxes See Choosing To Take Credit or Deduction , earlier. Can i still e file 2011 taxes Taxes Imposed By Sanctioned Countries (Section 901(j) Income) You cannot claim a foreign tax credit for income taxes paid or accrued to any country if the income giving rise to the tax is for a period (the sanction period) during which: The Secretary of State has designated the country as one that repeatedly provides support for acts of international terrorism, The United States has severed or does not conduct diplomatic relations with the country, or The United States does not recognize the country's government, and that government is not otherwise eligible to purchase defense articles or services under the Arms Export Control Act. Can i still e file 2011 taxes The following countries meet this description for 2013. Can i still e file 2011 taxes Income taxes paid or accrued to these countries in 2013 do not qualify for the credit. Can i still e file 2011 taxes Cuba. Can i still e file 2011 taxes Iran. Can i still e file 2011 taxes Libya (but see Note later). Can i still e file 2011 taxes North Korea. Can i still e file 2011 taxes Sudan. Can i still e file 2011 taxes Syria. Can i still e file 2011 taxes Waiver of denial of the credit. Can i still e file 2011 taxes   A waiver can be granted to a sanctioned country if the President of the United States determines that granting the waiver is in the national interest of the United States and will expand trade and investment opportunities for U. Can i still e file 2011 taxes S. Can i still e file 2011 taxes companies in the sanctioned country. Can i still e file 2011 taxes The President must report to Congress his intentions to grant the waiver and his reasons for granting the waiver not less than 30 days before the date on which the waiver is granted. Can i still e file 2011 taxes Note. Can i still e file 2011 taxes Effective December 10, 2004, the President granted a waiver to Libya. Can i still e file 2011 taxes Income taxes arising on or after this date qualify for the credit if they meet the other requirements in this publication. Can i still e file 2011 taxes Limit on credit. Can i still e file 2011 taxes   In figuring the foreign tax credit limit, discussed later, income from a sanctioned country is a separate category of foreign income unless a Presidential waiver is granted. Can i still e file 2011 taxes You must fill out a separate Form 1116 for this income. Can i still e file 2011 taxes This will prevent you from claiming a credit for foreign taxes paid or accrued to the sanctioned country. Can i still e file 2011 taxes Example. Can i still e file 2011 taxes You lived and worked in Iran until August, when you were transferred to Italy. Can i still e file 2011 taxes You paid taxes to each country on the income earned in that country. Can i still e file 2011 taxes You cannot claim a foreign tax credit for the foreign taxes paid on the income earned in Iran. Can i still e file 2011 taxes Because the income earned in Iran is a separate category of foreign income, you must fill out a separate Form 1116 for that income. Can i still e file 2011 taxes You cannot take a credit for taxes paid on the income earned in Iran, but that income is taxable by the United States. Can i still e file 2011 taxes Figuring the credit when a sanction ends. Can i still e file 2011 taxes    Table 1 lists the countries for which sanctions have ended or for which a Presidential waiver has been granted. Can i still e file 2011 taxes For any of these countries, you can claim a foreign tax credit for the taxes paid or accrued to that country on the income for the period that begins after the end of the sanction period or the date the Presidential waiver was granted. Can i still e file 2011 taxes Example. Can i still e file 2011 taxes The sanctions against Country X ended on July 31. Can i still e file 2011 taxes On August 19, you receive a distribution from a mutual fund of Country X income. Can i still e file 2011 taxes The fund paid Country X income tax for you on the distribution. Can i still e file 2011 taxes Because the distribution was made after the sanction ended, you may include the foreign tax paid on the distribution to compute your foreign tax credit. Can i still e file 2011 taxes Amounts for the nonsanctioned period. Can i still e file 2011 taxes   If a sanction period ends (or a Presidential waiver is granted) during your tax year and you are not able to determine the actual income and taxes for that period, you can allocate amounts to that period based on the number of days in the period that fall in your tax year. Can i still e file 2011 taxes Multiply the income or taxes for the year by the following fraction to determine the amounts allocable to that period. Can i still e file 2011 taxes   Number of nonsanctioned days in year  Number of days in year Example. Can i still e file 2011 taxes You are a calendar year filer and received $20,000 of income from Country X in 2013 on which you paid tax of $4,500. Can i still e file 2011 taxes Sanctions against Country X ended on July 11, 2013. Can i still e file 2011 taxes You are unable to determine how much of the income or tax is for the nonsanctioned period. Can i still e file 2011 taxes Because your tax year starts on January 1, and the Country X sanction ended on July 11, 2013, 173 days of your tax year are in the nonsanctioned period. Can i still e file 2011 taxes You would compute the income for the nonsanctioned period as follows. Can i still e file 2011 taxes 173 365 × $20,000 = $9,479             You would figure the tax for the nonsanctioned period as follows. Can i still e file 2011 taxes 173 365 × $4,500 = $2,133 To figure your foreign tax credit, you would use $9,479 as the income from Country X and $2,133 as the tax. Can i still e file 2011 taxes Further information. Can i still e file 2011 taxes   The rules for figuring the foreign tax credit after a country's sanction period ends are more fully explained in Revenue Ruling 92-62, Cumulative Bulletin 1992-2, page 193. Can i still e file 2011 taxes This Cumulative Bulletin can be found in many libraries and IRS offices. Can i still e file 2011 taxes Table 1. Can i still e file 2011 taxes Countries Removed From the Sanction List or Granted Presidential Waiver   Sanction Period Country Starting Date Ending Date Iraq February 1, 1991 June 27, 2004 Libya January 1, 1987 December 9, 2004* *Presidential waiver granted for qualified income taxes arising after December 9, 2004. Can i still e file 2011 taxes Taxes Imposed on Certain Dividends You cannot claim a foreign tax credit for withholding tax (defined later ) on dividends paid or accrued if either of the following applies to the dividends. Can i still e file 2011 taxes The dividends are on stock you held for less than 16 days during the 31-day period that begins 15 days before the ex-dividend date (defined later). Can i still e file 2011 taxes The dividends are for a period or periods totaling more than 366 days on preferred stock you held for less than 46 days during the 91-day period that begins 45 days before the ex-dividend date. Can i still e file 2011 taxes If the dividend is not for more than 366 days, rule (1) applies to the preferred stock. Can i still e file 2011 taxes When figuring how long you held the stock, count the day you sold it, but do not count the day you acquired it or any days on which you were protected from risk of loss. Can i still e file 2011 taxes Regardless of how long you held the stock, you cannot claim the credit to the extent you have an obligation under a short sale or otherwise to make payments related to the dividend for positions in substantially similar or related property. Can i still e file 2011 taxes Withholding tax. Can i still e file 2011 taxes   For this purpose, withholding tax includes any tax determined on a gross basis. Can i still e file 2011 taxes It does not include any tax which is in the nature of a prepayment of a tax imposed on a net basis. Can i still e file 2011 taxes Ex-dividend date. Can i still e file 2011 taxes   The ex-dividend date is the first date following the declaration of a dividend on which the purchaser of a stock is not entitled to receive the next dividend payment. Can i still e file 2011 taxes Example 1. Can i still e file 2011 taxes You bought common stock from a foreign corporation on November 3. Can i still e file 2011 taxes You sold the stock on November 19. Can i still e file 2011 taxes You received a dividend on this stock because you owned it on the ex-dividend date of November 5. Can i still e file 2011 taxes To claim the credit, you must have held the stock for at least 16 days within the 31-day period that began on October 21 (15 days before the ex-dividend date). Can i still e file 2011 taxes Because you held the stock for 16 days, from November 4 until November 19, you are entitled to the credit. Can i still e file 2011 taxes Example 2. Can i still e file 2011 taxes The facts are the same as in Example 1 except that you sold the stock on November 14. Can i still e file 2011 taxes You held the stock for only 11 days. Can i still e file 2011 taxes You are not entitled to the credit. Can i still e file 2011 taxes Exception. Can i still e file 2011 taxes   If you are a securities dealer who actively conducts business in a foreign country, you may be able to claim a foreign tax credit for qualified taxes paid on dividends regardless of how long you held the stock or whether you were obligated to make payments for positions in substantially similar or related property. Can i still e file 2011 taxes See section 901(k)(4) of the Internal Revenue Code for more information. Can i still e file 2011 taxes Taxes Withheld on Income or Gain (Other Than Dividends) For income or gain (other than dividends) paid or accrued on property, you cannot claim a foreign tax credit for withholding tax (defined later): If you have not held the property for at least 16 days during the 31-day period that begins 15 days before the date on which the right to receive the payment arises, or To the extent you have to make related payments on positions in substantially similar or related property. Can i still e file 2011 taxes When figuring how long you held the property, count the day you sold it, but do not count the day you acquired it or any days on which you were protected from risk of loss. Can i still e file 2011 taxes Withholding tax. Can i still e file 2011 taxes   For this purpose, withholding tax includes any tax determined on a gross basis. Can i still e file 2011 taxes It does not include any tax which is in the nature of a prepayment of a tax imposed on a net basis. Can i still e file 2011 taxes Exception for dealers. Can i still e file 2011 taxes   If you are a dealer in property who actively conducts business in a foreign country, you may be able to claim a foreign tax credit for qualified taxes withheld on income or gain from that property regardless of how long you held it or whether you have to make related payments on positions in substantially similar or related property. Can i still e file 2011 taxes See section 901(I)(2) of the Internal Revenue Code for more information. Can i still e file 2011 taxes Covered Asset Acquisition ???You cannot take a credit for the disqualified portion of any foreign tax paid or accrued in connection with a covered asset acquisition. Can i still e file 2011 taxes A covered asset acquisition includes certain acquisitions that result in a stepped-up basis for U. Can i still e file 2011 taxes S. Can i still e file 2011 taxes tax purposes but not for foreign tax purposes. Can i still e file 2011 taxes For more information, see Internal Revenue Code section 901(m). Can i still e file 2011 taxes The IRS intends to issue guidance that will explain this provision in greater detail. Can i still e file 2011 taxes Taxes in Connection With the Purchase or Sale of Oil or Gas You cannot claim a foreign tax credit for taxes paid or accrued to a foreign country in connection with the purchase or sale of oil or gas extracted in that country if you do not have an economic interest in the oil or gas, and the purchase price or sales price is different from the fair market value of the oil or gas at the time of purchase or sale. Can i still e file 2011 taxes Taxes on Foreign Mineral Income You must reduce any taxes paid or accrued to a foreign country or possession on mineral income from that country or possession if you were allowed a deduction for percentage depletion for any part of the mineral income. Can i still e file 2011 taxes For details, see Regulations section 1. Can i still e file 2011 taxes 901-3. Can i still e file 2011 taxes Taxes From International Boycott Operations If you participate in or cooperate with an international boycott during the tax year, your foreign taxes resulting from boycott activities will reduce the total taxes available for credit. Can i still e file 2011 taxes See the instructions for line 12 in the Form 1116 instructions to figure this reduction. Can i still e file 2011 taxes In most cases, this rule does not apply to employees with wages who are working and living in boycotting countries, or to retirees with pensions who are living in these countries. Can i still e file 2011 taxes List of boycotting countries. Can i still e file 2011 taxes   A list of the countries which may require participation in or cooperation with an international boycott is published by the Department of the Treasury. Can i still e file 2011 taxes As of November 2013, the following countries are listed. Can i still e file 2011 taxes Iraq. Can i still e file 2011 taxes Kuwait. Can i still e file 2011 taxes Lebanon. Can i still e file 2011 taxes Libya. Can i still e file 2011 taxes Qatar. Can i still e file 2011 taxes Saudi Arabia. Can i still e file 2011 taxes Syria. Can i still e file 2011 taxes United Arab Emirates. Can i still e file 2011 taxes Yemen. Can i still e file 2011 taxes    For information concerning changes to the list, write to: Internal Revenue Service International Section Philadelphia, PA 19255-0725 Determinations of whether the boycott rule applies. Can i still e file 2011 taxes   You may request a determination from the Internal Revenue Service as to whether a particular operation constitutes participation in or cooperation with an international boycott. Can i still e file 2011 taxes The procedures for obtaining a determination from the Service are outlined in Revenue Procedure 77-9 in Cumulative Bulletin 1977-1. Can i still e file 2011 taxes Cumulative Bulletins are available in most IRS offices and you are welcome to read them there. Can i still e file 2011 taxes Public inspection. Can i still e file 2011 taxes   A determination and any related background file is open to public inspection. Can i still e file 2011 taxes However, your identity and certain other information will remain confidential. Can i still e file 2011 taxes Reporting requirements. Can i still e file 2011 taxes   You must file a report with the IRS if you or any of the following persons have operations in or related to a boycotting country or with the government, a company, or a national of a boycotting country. Can i still e file 2011 taxes A foreign corporation in which you own 10% or more of the voting power of all voting stock but only if you own the stock of the foreign corporation directly or through foreign entities. Can i still e file 2011 taxes A partnership in which you are a partner. Can i still e file 2011 taxes A trust you are treated as owning. Can i still e file 2011 taxes Form 5713 required. Can i still e file 2011 taxes   If you have to file a report, you must use Form 5713, International Boycott Report, and attach all supporting schedules. Can i still e file 2011 taxes See the Instructions for Form 5713 for information on when and where to file the form. Can i still e file 2011 taxes Penalty for failure to file. Can i still e file 2011 taxes   If you willfully fail to make a report, in addition to other penalties, you may be fined $25,000 or imprisoned for no more than one year, or both. Can i still e file 2011 taxes Taxes on Combined Foreign Oil and Gas Income You must reduce your foreign taxes by a portion of any foreign taxes imposed on combined foreign oil and gas income. Can i still e file 2011 taxes The amount of the reduction is the amount by which your foreign oil and gas taxes exceed the amount of your combined foreign oil and gas income multiplied by a fraction equal to your pre-credit U. Can i still e file 2011 taxes S. Can i still e file 2011 taxes tax liability (Form 1040, line 44) divided by your worldwide taxable income. Can i still e file 2011 taxes You may be entitled to carry over to other years taxes reduced under this rule. Can i still e file 2011 taxes See Internal Revenue Code section 907(f). Can i still e file 2011 taxes Combined foreign oil and gas income means the sum of foreign oil related income and foreign oil and gas extraction income. Can i still e file 2011 taxes Foreign oil and gas taxes are the sum of foreign oil and gas extraction taxes and foreign oil related taxes. Can i still e file 2011 taxes Taxes of U. Can i still e file 2011 taxes S. Can i still e file 2011 taxes Persons Controlling Foreign Corporations and Partnerships If you had control of a foreign corporation or a foreign partnership for the annual accounting period of that corporation or partnership that ended with or within your tax year, you may have to file an annual information return. Can i still e file 2011 taxes If you do not file the required information return, you may have to reduce the foreign taxes that may be used for the foreign tax credit. Can i still e file 2011 taxes See Penalty for not filing Form 5471 or Form 8865 , later. Can i still e file 2011 taxes U. Can i still e file 2011 taxes S. Can i still e file 2011 taxes persons controlling foreign corporations. Can i still e file 2011 taxes   If you are a U. Can i still e file 2011 taxes S. Can i still e file 2011 taxes citizen or resident who had control of a foreign corporation for an uninterrupted period of at least 30 days during the annual accounting period of that corporation, you may have to file an annual information return on Form 5471, Information Return of U. Can i still e file 2011 taxes S. Can i still e file 2011 taxes Persons With Respect To Certain Foreign Corporations. Can i still e file 2011 taxes Under this rule, you generally had control of a foreign corporation if at any time during your tax year you owned: Stock possessing more than 50% of the total combined voting power of all classes of stock entitled to vote, or More than 50% of the total value of shares of all classes of stock of the foreign corporation. Can i still e file 2011 taxes U. Can i still e file 2011 taxes S. Can i still e file 2011 taxes persons controlling foreign partnerships. Can i still e file 2011 taxes   If you are a U. Can i still e file 2011 taxes S. Can i still e file 2011 taxes citizen or resident who had control of a foreign partnership at any time during the partnership's tax year, you may have to file