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E-file 2012

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E-file 2012

E-file 2012 4. E-file 2012   Communications and Air Transportation Taxes Table of Contents Uncollected Tax Report Communications TaxLocal-only service. E-file 2012 Private communication service. E-file 2012 Exemptions Credits or Refunds Air Transportation TaxesTransportation of Persons by Air International Air Travel Facilities Transportation of Property by Air Special Rules on Transportation Taxes Excise taxes are imposed on amounts paid for certain facilities and services. E-file 2012 If you receive any payment on which tax is imposed, you are required to collect the tax, file returns, and pay the tax over to the government. E-file 2012 If you fail to collect and pay over the taxes, you may be liable for the trust fund recovery penalty. E-file 2012 See chapter 14, later. E-file 2012 Uncollected Tax Report A separate report is required to be filed by collecting agents of communications services and air transportation taxes if the person from whom the facilities or services tax (the tax) is required to be collected (the taxpayer) refuses to pay the tax, or it is impossible for the collecting agent to collect the tax. E-file 2012 The report must contain the name and address of the taxpayer, the type of facility provided or service rendered, the amount paid for the facility or service (the amount on which the tax is based), and the date paid. E-file 2012 Regular method taxpayers. E-file 2012   For regular method taxpayers, the report must be filed by the due date of the Form 720 on which the tax would have been reported. E-file 2012 Alternative method taxpayers. E-file 2012   For alternative method taxpayers, the report must be filed by the due date of the Form 720 that includes an adjustment to the separate account for the uncollected tax. E-file 2012 See Alternative method in  chapter 11. E-file 2012 Where to file. E-file 2012    Do not file the uncollected tax report with Form 720. E-file 2012 Instead, mail the report to: Internal Revenue Service Excise Tax Program SE:S:SP:EX MS C9-109 5000 Ellin Rd. E-file 2012  Lanham, MD 20706 Communications Tax A 3% tax is imposed on amounts paid for local telephone service and teletypewriter exchange service. E-file 2012 Local telephone service. E-file 2012   This includes access to a local telephone system and the privilege of telephonic quality communication with most people who are part of the system. E-file 2012 Local telephone service also includes any facility or services provided in connection with this service. E-file 2012 The tax applies to lease payments for certain customer premises equipment (CPE) even though the lessor does not also provide access to a local telecommunications system. E-file 2012 Local-only service. E-file 2012   Local-only service is local telephone service as described above, provided under a plan that does not include long distance telephone service or that separately states the charge for local service on the bill to customers. E-file 2012 Local-only service also includes any facility or services provided in connection with this service, even though these services and facilities may also be used with long-distance service. E-file 2012 Private communication service. E-file 2012   Private communication service is not local telephone service. E-file 2012 Private communication service includes accessory-type services provided in connection with a Centrex, PBX, or other similar system for dual use accessory equipment. E-file 2012 However, the charge for the service must be stated separately from the charge for the basic system, and the accessory must function, in whole or in part, in connection with intercommunication among the subscriber's stations. E-file 2012 Teletypewriter exchange service. E-file 2012   This includes access from a teletypewriter or other data station to a teletypewriter exchange system and the privilege of intercommunication by that station with most persons having teletypewriter or other data stations in the same exchange system. E-file 2012 Figuring the tax. E-file 2012   The tax is based on the sum of all charges for local telephone service included in the bill. E-file 2012 However, if the bill groups individual items for billing and tax purposes, the tax is based on the sum of the individual items within that group. E-file 2012 The tax on the remaining items not included in any group is based on the charge for each item separately. E-file 2012 Do not include in the tax base state or local sales or use taxes that are separately stated on the taxpayer's bill. E-file 2012 Exemptions Payments for certain services or payments from certain users are exempt from the communications tax. E-file 2012 Nontaxable service. E-file 2012   Nontaxable service means bundled service and long distance service. E-file 2012 Nontaxable service also includes pre-paid telephone cards and pre-paid cellular service. E-file 2012 Bundled service. E-file 2012   Bundled service is local and long distance service provided under a plan that does not separately state the charge for the local telephone service. E-file 2012 Bundled service includes plans that provide both local and long distance service for either a flat monthly fee or a charge that varies with the elapsed transmission time for which the service is used. E-file 2012 Telecommunications companies provide bundled service for both landlines and wireless (cellular) service. E-file 2012 If Voice over Internet Protocol service provides both local and long distance service and the charges are not separately stated, such service is bundled service. E-file 2012   The method for sending or receiving a call, such as on a landline telephone, wireless (cellular), or some other method, does not affect whether a service is local-only or bundled. E-file 2012 Long distance service. E-file 2012   Long distance service is telephonic quality communication with persons whose telephones are outside the local telephone system of the caller. E-file 2012 Pre-paid telephone cards (PTC). E-file 2012   A PTC will be treated as bundled service unless a PTC expressly states it is for local-only service. E-file 2012 Generally, the person responsible for collecting the tax is the carrier who transfers the PTC to the transferee. E-file 2012 The transferee is the first person that is not a carrier to whom a PTC is transferred by the carrier. E-file 2012 The transferee is the person liable for the tax and is eligible to request a credit or refund. E-file 2012 For more information, see Regulations section 49. E-file 2012 4251-4. E-file 2012   The holder is the person that purchases a PTC to use and not to resell. E-file 2012 Holders are not liable for the tax and cannot request a credit or refund. E-file 2012 Pre-paid cellular telephones. E-file 2012   Rules similar to the PTC rules described above apply to pre-paid cellular telephones. E-file 2012 The transferee is the person eligible to request the credit or refund. E-file 2012 Installation charges. E-file 2012   The tax does not apply to payments received for the installation of any instrument, wire, pole, switchboard, apparatus, or equipment. E-file 2012 However, the tax does apply to payments for the repair or replacement of those items incidental to ordinary maintenance. E-file 2012 Answering services. E-file 2012   The tax does not apply to amounts paid for a private line, an answering service, and a one-way paging or message service if they do not provide access to a local telephone system and the privilege of telephonic communication as part of the local telephone system. E-file 2012 Mobile radio telephone service. E-file 2012   The tax does not apply to payments for a two-way radio service that does not provide access to a local telephone system. E-file 2012 Coin-operated telephones. E-file 2012   The tax for local telephone service does not apply to payments made for services by inserting coins in public coin-operated telephones. E-file 2012 But the tax applies if the coin-operated telephone service is furnished for a guaranteed amount. E-file 2012 Figure the tax on the amount paid under the guarantee plus any fixed monthly or other periodic charge. E-file 2012 Telephone-operated security systems. E-file 2012   The tax does not apply to amounts paid for telephones used only to originate calls to a limited number of telephone stations for security entry into a building. E-file 2012 In addition, the tax does not apply to any amounts paid for rented communication equipment used in the security system. E-file 2012 News services. E-file 2012   The tax on teletypewriter exchange service does not apply to charges for the following news services. E-file 2012 Services dealing exclusively with the collection or dissemination of news for or through the public press or radio or television broadcasting. E-file 2012 Services used exclusively in the collection or dissemination of news by a news ticker service furnishing a general news service similar to that of the public press. E-file 2012 This exemption applies to payments received for messages from one member of the news media to another member (or to or from their bona fide correspondents). E-file 2012 For the exemption to apply, the charge for these services must be billed in writing to the person paying for the service and that person must certify in writing that the services are used for an exempt purpose. E-file 2012 Services not exempted. E-file 2012   The tax applies to amounts paid by members of the news media for local telephone service. E-file 2012 International organizations and the American Red Cross. E-file 2012   The tax does not apply to communication services furnished to an international organization or to the American National Red Cross. E-file 2012 Nonprofit hospitals. E-file 2012   The tax does not apply to telephone services furnished to income tax-exempt nonprofit hospitals for their use. E-file 2012 Also, the tax does not apply to amounts paid by these hospitals to provide local telephone service in the homes of their personnel who must be reached during their off-duty hours. E-file 2012 Nonprofit educational organizations. E-file 2012   The tax does not apply to payments received for services and facilities furnished to a nonprofit educational organization for its use. E-file 2012 A nonprofit educational organization is one that satisfies all the following requirements. E-file 2012 It normally maintains a regular faculty and curriculum. E-file 2012 It normally has a regularly enrolled body of pupils or students in attendance at the place where its educational activities are regularly carried on. E-file 2012 It is exempt from income tax under section 501(a). E-file 2012 This includes a school operated by an organization exempt under section 501(c)(3) if the school meets the above qualifications. E-file 2012 Qualified blood collector organizations. E-file 2012   The tax does not apply to telephone services furnished to qualified blood collector organizations for their use. E-file 2012 A qualified blood collector organization is one that is: Described in section 501(c)(3) and exempt from tax under section 501(a), Primarily engaged in the activity of collecting human blood, Registered with the IRS, and Registered by the Food and Drug Administration to collect blood. E-file 2012 Federal, state, and local government. E-file 2012   The tax does not apply to communication services provided to the government of the United States, the government of any state or its political subdivisions, the District of Columbia, or the United Nations. E-file 2012 Treat an Indian tribal government as a state for the exemption from the communications tax only if the services involve the exercise of an essential tribal government function. E-file 2012 Exemption certificate. E-file 2012   Any form of exemption certificate will be acceptable if it includes all the information required by the Internal Revenue Code and Regulations. E-file 2012 See Regulations section 49. E-file 2012 4253-11. E-file 2012 File the certificate with the provider of the communication services. E-file 2012 An exemption certificate is not required for nontaxable services. E-file 2012   The following users that are exempt from the communications tax do not have to file an annual exemption certificate after they have filed the initial certificate to claim an exemption from the communications tax. E-file 2012 The American National Red Cross and other international organizations. E-file 2012 Nonprofit hospitals. E-file 2012 Nonprofit educational organizations. E-file 2012 Qualified blood collector organizations. E-file 2012 State and local governments. E-file 2012   The federal government does not have to file any exemption certificate. E-file 2012   All other organizations must furnish exemption certificates when required. E-file 2012 Credits or Refunds If tax is collected and paid over for nontaxable services, or for certain services or users exempt from the communications tax, the collector or taxpayer may claim a credit or refund if it has repaid the tax to the person from whom the tax was collected or obtained the consent of that person to the allowance of the credit or refund. E-file 2012 Alternatively, the person who paid the tax may claim a refund. E-file 2012 For more information on how to file for credits or refunds, see the Instructions for Form 720 or Form 8849. E-file 2012 Collectors. E-file 2012   The collector may request a credit or refund if it has repaid the tax to the person from whom the tax was collected, or obtained the consent of that person to the allowance of the credit or refund. E-file 2012 These requirements also apply to nontaxable service refunds. E-file 2012 Collectors using the regular method for deposits. E-file 2012   Collectors using the regular method for deposits must use Form 720X to request a credit or refund if the collector has repaid the tax to the person from whom the tax was collected, or obtained the consent of that person to the allowance of the credit or refund. E-file 2012 Collectors using the alternative method for deposits. E-file 2012   Collectors using the alternative method for deposits must adjust their separate accounts for the credit or refund if it has repaid the tax to the person from whom the tax was collected, or obtained the consent of that person to the allowance of the credit or refund. E-file 2012 For more information, see the Instructions for Form 720. E-file 2012 Air Transportation Taxes Taxes are imposed on amounts paid for: Transportation of persons by air, Use of international air travel facilities, and Transportation of property by air. E-file 2012 Transportation of Persons by Air The tax on transportation of persons by air is made up of the: Percentage tax, and Domestic-segment tax. E-file 2012 Percentage tax. E-file 2012   A tax of 7. E-file 2012 5% applies to amounts paid for taxable transportation of persons by air. E-file 2012 Amounts paid for transportation include charges for layover or waiting time and movement of aircraft in deadhead service. E-file 2012 Mileage awards. E-file 2012   The percentage tax may apply to an amount paid (in cash or in kind) to an air carrier (or any related person) for the right to provide mileage awards for, or other reductions in the cost of, any transportation of persons by air. E-file 2012 For example, this applies to mileage awards purchased by credit card companies, telephone companies, restaurants, hotels, and other businesses. E-file 2012   Generally, the percentage tax does not apply to amounts paid for mileage awards where the mileage awards cannot, under any circumstances, be redeemed for air transportation that is subject to the tax. E-file 2012 Until regulations are issued, the following rules apply to mileage awards. E-file 2012 Amounts paid for mileage awards that cannot be redeemed for taxable transportation beginning and ending in the United States are not subject to the tax. E-file 2012 For this rule, mileage awards issued by a foreign air carrier are considered to be usable only on that foreign air carrier and thus not redeemable for taxable transportation beginning and ending in the United States. E-file 2012 Therefore, amounts paid to a foreign air carrier for mileage awards are not subject to the tax. E-file 2012 Amounts paid by an air carrier to a domestic air carrier for mileage awards that can be redeemed for taxable transportation are not subject to the tax to the extent those miles will be awarded in connection with the purchase of taxable transportation. E-file 2012 Amounts paid by an air carrier to a domestic air carrier for mileage awards that can be redeemed for taxable transportation are subject to the tax to the extent those miles will not be awarded in connection with the purchase of taxable transportation. E-file 2012 Domestic-segment tax. E-file 2012   The domestic-segment tax is a flat dollar amount for each segment of taxable transportation for which an amount is paid. E-file 2012 However, see Rural airports, later. E-file 2012 A segment is a single takeoff and a single landing. E-file 2012 The amount of the domestic-segment tax is in the Instructions for Form 720. E-file 2012 Charter flights. E-file 2012    If an aircraft is chartered, the domestic-segment tax for each segment of taxable transportation is figured by multiplying the tax by the number of passengers transported on the aircraft. E-file 2012 Rural airports. E-file 2012   The domestic-segment tax does not apply to a segment to or from a rural airport. E-file 2012 An airport is a rural airport for a calendar year if fewer than 100,000 commercial passengers departed from the airport by air during the second preceding calendar year (the 100,000 passenger rule), and one of the following is true: The airport is not located within 75 miles of another airport from which 100,000 or more commercial passengers departed during the second preceding calendar year, The airport was receiving essential air service subsidies as of August 5, 1997, or The airport is not connected by paved roads to another airport. E-file 2012   To apply the 100,000 passenger rule to any airport described in (3) above, only count commercial passengers departing from the airport by air on flight segments of at least 100 miles. E-file 2012   An updated list of rural airports can be found on the Department of Transportation website at www. E-file 2012 dot. E-file 2012 gov and enter the phrase “Essential Air Service” in the search box. E-file 2012 Taxable transportation. E-file 2012   Taxable transportation is transportation by air that meets either of the following tests. E-file 2012 It begins and ends either in the United States or at any place in Canada or Mexico not more than 225 miles from the nearest point on the continental United States boundary (this is the 225-mile zone). E-file 2012 It is directly or indirectly from one port or station in the United States to another port or station in the United States, but only if it is not a part of uninterrupted international air transportation, discussed later. E-file 2012 Round trip. E-file 2012   A round trip is considered two separate trips. E-file 2012 The first trip is from the point of departure to the destination. E-file 2012 The second trip is the return trip from that destination. E-file 2012 Uninterrupted international air transportation. E-file 2012   This means transportation entirely by air that does not begin and end in the United States or in the 225-mile zone if there is not more than a 12-hour scheduled interval between arrival and departure at any station in the United States. E-file 2012 For a special rule that applies to military personnel, see Exemptions, later. E-file 2012 Transportation between the continental U. E-file 2012 S. E-file 2012 and Alaska or Hawaii. E-file 2012   This transportation is partially exempt from the tax on transportation of persons by air. E-file 2012 The tax does not apply to the part of the trip between the point at which the route of transportation leaves or enters the continental United States (or a port or station in the 225-mile zone) and the point at which it enters or leaves Hawaii or Alaska. E-file 2012 Leaving or entering occurs when the route of the transportation passes over either the United States border or a point 3 nautical miles (3. E-file 2012 45 statute miles) from low tide on the coast line, or when it leaves a port or station in the 225-mile zone. E-file 2012 Therefore, this transportation is subject to the percentage tax on the part of the trip in U. E-file 2012 S. E-file 2012 airspace, the domestic-segment tax for each domestic segment, and the tax on the use of international air travel facilities, discussed later. E-file 2012 Transportation within Alaska or Hawaii. E-file 2012   The tax on transportation of persons by air applies to the entire fare paid in the case of flights between any of the Hawaiian Islands, and between any ports or stations in the Aleutian Islands or other ports or stations elsewhere in Alaska. E-file 2012 The tax applies even though parts of the flights may be over international waters or over Canada, if no point on the direct line of transportation between the ports or stations is more than 225 miles from the United States (Hawaii or Alaska). E-file 2012 Package tours. E-file 2012   The air transportation taxes apply to “complimentary” air transportation furnished solely to participants in package holiday tours. E-file 2012 The amount paid for these package tours includes a charge for air transportation even though it may be advertised as “free. E-file 2012 ” This rule also applies to the tax on the use of international air travel facilities, discussed later. E-file 2012 Liability for tax. E-file 2012   The person paying for taxable transportation is liable for the tax and, ordinarily, the person receiving the payment collects the tax, files the returns, and pays the tax over to the government. E-file 2012 However, if payment is made outside the United States for a prepaid order, exchange order, or similar order, the person furnishing the initial transportation provided for under that order must collect the tax. E-file 2012    A travel agency that is an independent broker and sells tours on aircraft that it charters must collect the transportation tax, file the returns, and pay the tax over to the government. E-file 2012 However, a travel agency that sells tours as the agent of an airline must collect the tax and remit it to the airline for the filing of returns and for the payment of the tax over to the government. E-file 2012 An independent third party that is not under the airline's supervision or control, but is acting on behalf of, and receiving compensation from, a passenger, is not required to collect the tax and pay it to the government. E-file 2012 For more information on resellers of air transportation, see Revenue Ruling 2006-52. E-file 2012 You can find Revenue Ruling 2006-52 on page 761 of I. E-file 2012 R. E-file 2012 B. E-file 2012 2006-43 at www. E-file 2012 irs. E-file 2012 gov/pub/irs-irbs/irb06-43. E-file 2012 pdf. E-file 2012   The fact that the aircraft does not use public or commercial airports in taking off and landing has no effect on the tax. E-file 2012 But see Certain helicopter uses, later. E-file 2012   For taxable transportation that begins and ends in the United States, the tax applies regardless of whether the payment is made in or outside the United States. E-file 2012   If the tax is not paid when payment for the transportation is made, the air carrier providing the initial segment of the transportation that begins or ends in the United States becomes liable for the tax. E-file 2012 Exemptions. E-file 2012   The tax on transportation of persons by air does not apply in the following situations. E-file 2012 See also Special Rules on Transportation Taxes, later. E-file 2012 Military personnel on international trips. E-file 2012   When traveling in uniform at their own expense, United States military personnel on authorized leave are deemed to be traveling in uninterrupted international air transportation (defined earlier) even if the scheduled interval between arrival and departure at any station in the United States is actually more than 12 hours. E-file 2012 However, such personnel must buy their tickets within 12 hours after landing at the first domestic airport and accept the first available accommodation of the type called for by their tickets. E-file 2012 The trip must begin or end outside the United States and the 225-mile zone. E-file 2012 Certain helicopter uses. E-file 2012   The tax does not apply to air transportation by helicopter if the helicopter is used for any of the following purposes. E-file 2012 Transporting individuals, equipment, or supplies in the exploration for, or the development or removal of, hard minerals, oil, or gas. E-file 2012 Planting, cultivating, cutting, transporting, or caring for trees (including logging operations). E-file 2012 Providing emergency medical transportation. E-file 2012   However, during a use described in items (1) or (2), the tax applies if the helicopter takes off from, or lands at, a facility eligible for assistance under the Airport and Airway Development Act of 1970, or otherwise uses services provided under section 44509 or 44913(b) or subchapter I of chapter 471 of title 49, United States Code. E-file 2012 For item (1), treat each flight segment as a separate flight. E-file 2012 Fixed-wing aircraft uses. E-file 2012   The tax does not apply to air transportation by fixed-wing aircraft if the fixed-wing aircraft is used for any of the following purposes. E-file 2012 Planting, cultivating, cutting, transporting, or caring for trees (including logging operations). E-file 2012 Providing emergency medical transportation. E-file 2012 The aircraft must be equipped for and exclusively dedicated on that flight to acute care emergency medical services. E-file 2012   However, during a use described in item (1), the tax applies if the fixed-wing aircraft takes off from, or lands at, a facility eligible for assistance under the Airport and Airway Development Act of 1970, or otherwise uses services provided under section 44509 or 44913(b) or subchapter I of chapter 471 of title 49, United States Code. E-file 2012 Skydiving. E-file 2012   The tax does not apply to any air transportation exclusively for the purpose of skydiving. E-file 2012 Seaplanes. E-file 2012   The tax does not apply to any air transportation by seaplane for any segment consisting of a takeoff from, and a landing on, water if the places where the takeoff and landing occur are not receiving financial assistance from the Airport and Airways Trust Fund. E-file 2012 Bonus tickets. E-file 2012   The tax does not apply to free bonus tickets issued by an airline company to its customers who have satisfied all requirements to qualify for the bonus tickets. E-file 2012 However, the tax applies to amounts paid by customers for advance bonus tickets when customers have traveled insufficient mileage to fully qualify for the free advance bonus tickets. E-file 2012 International Air Travel Facilities A tax per person is imposed (whether in or outside the United States) for international flights that begin or end in the United States. E-file 2012 However, for a domestic segment that begins or ends in Alaska or Hawaii, a reduced tax per person applies only to departures. E-file 2012 This tax does not apply if all the transportation is subject to the percentage tax, discussed earlier. E-file 2012 It also doesn't apply if the surtax on fuel used in a fractional ownership program aircraft (discussed earlier) is imposed. E-file 2012 See the Instructions for Form 720 for the tax rates. E-file 2012 Transportation of Property by Air A tax of 6. E-file 2012 25% is imposed on amounts paid (whether in or outside the United States) for transportation of property by air. E-file 2012 The fact that the aircraft may not use public or commercial airports in taking off and landing has no effect on the tax. E-file 2012 The tax applies only to amounts paid to a person engaged in the business of transporting property by air for hire. E-file 2012 The tax applies only to transportation (including layover time and movement of aircraft in deadhead service) that begins and ends in the United States. E-file 2012 Thus, the tax does not apply to transportation of property by air that begins or ends outside the United States. E-file 2012 Exemptions. E-file 2012   The tax on transportation of property by air does not apply in the following situations. E-file 2012 See also Special Rules on Transportation Taxes, later. E-file 2012 Cropdusting and firefighting service. E-file 2012   The tax does not apply to amounts paid for cropdusting or aerial firefighting service. E-file 2012 Exportation. E-file 2012    The tax does not apply to payments for transportation of property by air in the course of exportation (including to United States possessions) by continuous movement, as evidenced by the execution of Form 1363, Export Exemption Certificate. E-file 2012 See Form 1363 for more information. E-file 2012 Certain helicopter and fixed-wing air ambulance uses. E-file 2012   The tax does not apply to amounts paid for the use of helicopters in construction to set heating and air conditioning units on roofs of buildings, to dismantle tower cranes, and to aid in construction of power lines and ski lifts. E-file 2012   The tax also does not apply to air transportation by helicopter or fixed-wing aircraft for the purpose of providing emergency medical services. E-file 2012 The fixed-wing aircraft must be equipped for and exclusively dedicated on that flight to acute care emergency medical services. E-file 2012 Skydiving. E-file 2012   The tax does not apply to any air transportation exclusively for the purpose of skydiving. E-file 2012 Excess baggage. E-file 2012    The tax does not apply to excess baggage accompanying a passenger on an aircraft operated on an established line. E-file 2012 Surtax on fuel used in a fractional ownership program aircraft. E-file 2012   The tax does not apply if the surtax on fuel used in a fractional ownership program aircraft (discussed earlier) is imposed. E-file 2012 Alaska and Hawaii. E-file 2012   For transportation of property to and from Alaska and Hawaii, the tax in general does not apply to the portion of the transportation that is entirely outside the continental United States (or the 225-mile zone if the aircraft departs from or arrives at an airport in the 225-mile zone). E-file 2012 But the tax applies to flights between ports or stations in Alaska and the Aleutian Islands, as well as between ports or stations in Hawaii. E-file 2012 The tax applies even though parts of the flights may be over international waters or over Canada, if no point on a line drawn from where the route of transportation leaves the United States (Alaska) to where it reenters the United States (Alaska) is more than 225 miles from the United States. E-file 2012 Liability for tax. E-file 2012   The person paying for taxable transportation is liable for the tax and, ordinarily, the person engaged in the business of transporting property by air for hire receives the payment, collects the tax, files the returns, and pays the tax over to the government. E-file 2012   If tax is not paid when a payment is made outside the United States, the person furnishing the last segment of taxable transportation collects the tax from the person to whom the property is delivered in the United States. E-file 2012 Special Rules on Transportation Taxes In certain circumstances, special rules apply to the taxes on transportation of persons and property by air. E-file 2012 Aircraft used by affiliated corporations. E-file 2012   The taxes do not apply to payments received by one member of an affiliated group of corporations from another member for services furnished in connection with the use of an aircraft. E-file 2012 However, the aircraft must be owned or leased by a member of the affiliated group and cannot be available for hire by a nonmember of the affiliated group. E-file 2012 Determine whether an aircraft is available for hire by a nonmember of an affiliated group on a flight-by-flight basis. E-file 2012   For this rule, an affiliated group of corporations is any group of corporations connected with a common parent corporation through 80% or more of stock ownership. E-file 2012 Small aircraft. E-file 2012   The taxes do not apply to transportation furnished by an aircraft having a maximum certificated takeoff weight of 6,000 pounds or less. E-file 2012 However, the taxes do apply if the aircraft is operated on an established line. E-file 2012 “Operated on an established line” means the aircraft operates with some degree of regularity between definite points. E-file 2012 However, it does not include any time an aircraft is being operated on a flight that is solely for sightseeing. E-file 2012   Consider an aircraft to be operated on an established line if it is operated on a charter basis between two cities also served by that carrier on a regularly scheduled basis. E-file 2012   Also, the taxes apply if the aircraft is jet-powered, regardless of its maximum certificated takeoff weight or whether or not it is operated on an established line. E-file 2012 Mixed load of persons and property. E-file 2012   If a single amount is paid for air transportation of persons and property, the payment must be allocated between the amount subject to the tax on transportation of persons and the amount subject to the tax on transportation of property. E-file 2012 The allocation must be reasonable and supported by adequate records. E-file 2012 Credits or refunds. E-file 2012   If tax is collected and paid over for air transportation that is not taxable air transportation, the collector may claim a credit or refund if it has repaid the tax to the person from whom the tax was collected or obtained the consent of that person to the allowance of the credit or refund. E-file 2012 Alternatively, the person who paid the tax may claim a refund. E-file 2012 For information on how to file for credits or refunds, see the Instructions for Form 720 or Form 8849. E-file 2012 Prev  Up  Next   Home   More Online Publications
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Phishing Scams

“Phishing” is the use of fraudulent e-mail designed to steal identities as well as vital personal information such as credit card numbers, bank account PINs, and passwords. Phishing e-mails often ask you to verify this type of information.

Scammers also go “SMishing,” or phishing using text messages, by asking you to verify or confirm sensitive information. Legitimate companies never ask for your password or account number via e-mail. Protect yourself:

  • Call the company directly to determine if the email is trustworthy
  • Forward the email to the Federal Trade Commission at spam@uce.gov.
  • Do not reveal personal or financial information in emails
  • Contact the company directly. Do not use contact information provided on a web site connected to the request; instead, use contact information from account statements that you already have.
  • Don’t reply to the email, even if it threatens to disable your account.

Beware: Cash Top-Up Scams

Cash top-up cards can be a convenient way to transfer money to other accounts. They are not designed to be used directly with retailers or online merchants; rather they are used to reload money on accounts that you control, such as your debit card.
Unfortunately, scammers know the ease and convenience of using these cards. They persuade you to share your top-up card number directly with them instead of using a wire or escrow service. However, if you send the top-up number you’ll be left without the merchandise you were promised or your money. To protect yourself from these scams:

  • Guard your top-up card like it is cash.
  • Be wary of advertisements where you are asked to pay with a cash top-up card.
  • Don’t share your top-up card number with someone you don’t know, even if a merchant asks you to e-mail it to them.
  • Never use these cards to pay taxes or fees on lottery or sweepstakes winnings. It’s likely that you haven’t won anything.

Protect Your PIN

Beware of “shoulder surfers.” Be suspicious of anyone lurking around an ATM or watching over your shoulder while you use your card. Some thieves even put a device over the card slot of an ATM to read the magnetic strip and record your PIN; this is known as “skimming”. If you suspect criminal activity, walk away and use a different ATM.

The E-file 2012

E-file 2012 Publication 926 - Introductory Material Table of Contents Future Developments What's New Reminder IntroductionTax questions. E-file 2012 Future Developments For the latest information about developments related to Publication 926, such as legislation enacted after it was published, go to www. E-file 2012 irs. E-file 2012 gov/pub926. E-file 2012 What's New Social security and Medicare tax for 2014. E-file 2012  The social security tax rate is 6. E-file 2012 2% each for the employee and employer, unchanged from 2013. E-file 2012 The social security wage base limit is $117,000. E-file 2012 The Medicare tax rate is 1. E-file 2012 45% each for the employee and employer, unchanged from 2013. E-file 2012 There is no wage base limit for Medicare tax. E-file 2012 Social security and Medicare taxes apply to the wages of household employees you pay $1,900 or more in cash or an equivalent form of compensation. E-file 2012 Qualified parking exclusion and commuter transportation benefit. E-file 2012  For 2014, the monthly exclusion for qualified parking is $250 and the monthly exclusion for commuter highway vehicle transportation and transit passes is $130. E-file 2012 Reminder Additional Medicare Tax withholding. E-file 2012  In addition to withholding Medicare tax at 1. E-file 2012 45%, you must withhold a 0. E-file 2012 9% Additional Medicare Tax from wages you pay to an employee in excess of $200,000 in a calendar year. E-file 2012 You are required to begin withholding Additional Medicare Tax in the pay period in which you pay wages in excess of $200,000 to an employee and continue to withhold it each pay period until the end of the calendar year. E-file 2012 Additional Medicare Tax is only imposed on the employee. E-file 2012 There is no employer share of Additional Medicare Tax. E-file 2012 All wages that are subject to Medicare tax are subject to Additional Medicare Tax withholding if paid in excess of the $200,000 withholding threshold. E-file 2012 For more information on Additional Medicare Tax, visit IRS. E-file 2012 gov and enter “Additional Medicare Tax” in the search box. E-file 2012 Credit reduction states. E-file 2012  A state that has not repaid money it borrowed from the federal government to pay unemployment benefits is a “credit reduction state. E-file 2012 ” The Department of Labor (DOL) determines these states. E-file 2012 If you paid any wages that are subject to the unemployment compensation laws in any credit reduction state, your federal unemployment (FUTA) tax credit is reduced. E-file 2012 See the Instructions for Schedule H (Form 1040) for more information. E-file 2012 Outsourcing payroll duties. E-file 2012  Employers are responsible to ensure that tax returns are filed and deposits and payments are made, even if the employer contracts with a third party to perform these acts. E-file 2012 The employer remains responsible if the third party fails to perform any required action. E-file 2012 If you choose to outsource any of your payroll and related tax duties (that is, withholding, reporting, and paying over social security, Medicare, FUTA, and income taxes) to a third-party payer such as a payroll service provider or reporting agent, visit IRS. E-file 2012 gov and enter “outsourcing payroll duties” in the search box for helpful information on this topic. E-file 2012 Photographs of missing children. E-file 2012  The IRS is a proud partner with the National Center for Missing and Exploited Children. E-file 2012 Photographs of missing children selected by the Center may appear in this publication on pages that would otherwise be blank. E-file 2012 You can help bring these children home by looking at the photographs and calling 1-800-THE-LOST (1-800-843-5678) if you recognize a child. E-file 2012 Introduction The information in this publication applies to you only if you have a household employee. E-file 2012 If you have a household employee in 2014, you may need to pay state and federal employment taxes for 2014. E-file 2012 You generally must add your federal employment taxes to the income tax that you will report on your 2014 federal income tax return. E-file 2012 This publication will help you decide whether you have a household employee and, if you do, whether you need to pay federal employment taxes (social security tax, Medicare tax, FUTA, and federal income tax withholding). E-file 2012 It explains how to figure, pay, and report these taxes for your household employee. E-file 2012 It also explains what records you need to keep. E-file 2012 This publication also tells you where to find out whether you need to pay state unemployment tax for your household employee. E-file 2012 Comments and suggestions. E-file 2012   We welcome your comments about this publication and your suggestions for future editions. E-file 2012   You can write to us at the following address: Internal Revenue Service Tax Forms and Publications Division 1111 Constitution Ave. E-file 2012 NW, IR-6526 Washington, DC 20224   We respond to many letters by telephone. E-file 2012 Therefore, it would be helpful if you would include your daytime phone number, including the area code, in your correspondence. E-file 2012   You can also send us comments from www. E-file 2012 irs. E-file 2012 gov/formspubs. E-file 2012 Click on More Information and then click on Comment on Tax Forms and Publications. E-file 2012   Although we cannot respond individually to each comment received, we do appreciate your feedback and will consider your comments as we revise our tax products. E-file 2012 Tax questions. E-file 2012   If you have a tax question, check the information available on IRS. E-file 2012 gov or call 1-800-829-1040 or 1-800-829-4933 (TDD/TTY for persons who are deaf, hard of hearing, or have a speech disability at 1-800-829-4059) Monday–Friday from 7:00 a. E-file 2012 m. E-file 2012 –7:00 p. E-file 2012 m. E-file 2012 local time (Alaska and Hawaii follow Pacific time). E-file 2012 We cannot answer tax questions sent to the above address. E-file 2012 Prev  Up  Next   Home   More Online Publications