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Filing Tax Return

Filing tax return Publication 15 - Introductory Material Table of Contents Future Developments What's New Reminders Electronic Filing and Payment Forms in Spanish Hiring New Employees Paying Wages, Pensions, or Annuities Information Returns Nonpayroll Income Tax Withholding Recordkeeping Change of Business Address or Responsible Party Private Delivery Services Telephone Help Ordering Employer Tax Forms and Publications Filing Addresses Dishonored Payments Photographs of Missing Children Calendar Introduction Future Developments For the latest information about developments related to Publication 15 (Circular E), such as legislation enacted after it was published, go to www. Filing tax return irs. Filing tax return gov/pub15. Filing tax return What's New Social security and Medicare tax for 2014. Filing tax return  The social security tax rate is 6. Filing tax return 2% each for the employee and employer, unchanged from 2013. Filing tax return The social security wage base limit is $117,000. Filing tax return The Medicare tax rate is 1. Filing tax return 45% each for the employee and employer, unchanged from 2013. Filing tax return There is no wage base limit for Medicare tax. Filing tax return Social security and Medicare taxes apply to the wages of household workers you pay $1,900 or more in cash or an equivalent form of compensation. Filing tax return Social security and Medicare taxes apply to election workers who are paid $1,600 or more in cash or an equivalent form of compensation. Filing tax return 2014 withholdng tables. Filing tax return  This publication includes the 2014 Percentage Method Tables and Wage Bracket Tables for Income Tax Withholding. Filing tax return Withholding allowance. Filing tax return  The 2014 amount for one withholding allowance on an annual basis is $3,950. Filing tax return Voluntary withholding on dividends and other distributions by an Alaska Native Corporation (ANC). Filing tax return  A shareholder of an ANC may now request voluntary income tax withholding on dividends and other distributions paid by an ANC. Filing tax return A shareholder may request voluntary withholding by giving the ANC a completed Form W-4V, Voluntary Withholding Request. Filing tax return For more information see Notice 2013-77, 2013-50 I. Filing tax return R. Filing tax return B. Filing tax return 632, available at www. Filing tax return irs. Filing tax return gov/irb/2013-50_IRB/ar10. Filing tax return html. Filing tax return Change of responsible party. Filing tax return  Beginning January 1, 2014, any entity with an employer identification number (EIN) must file Form 8822-B, Change of Address or Responsible Party — Business, to report the latest change to its responsible party. Filing tax return Form 8822-B must be filed within 60 days of the change. Filing tax return If the change in the identity of your responsible party occurred before 2014, and you have not previously notified the IRS of the change, file Form 8822-B before March 1, 2014, reporting only the most recent change. Filing tax return For a definition of “responsible party,” see the Form 8822-B instructions. Filing tax return Same-sex marriage. Filing tax return  For federal tax purposes, individuals of the same sex are considered married if they were lawfully married in a state (or foreign country) whose laws authorize the marriage of two individuals of the same sex, even if the state (or foreign country) in which they now live does not recognize same-sex marriage. Filing tax return For more information, see Revenue Ruling 2013-17, 2013-38 I. Filing tax return R. Filing tax return B. Filing tax return 201, available at www. Filing tax return irs. Filing tax return gov/irb/2013-38_IRB/ar07. Filing tax return html. Filing tax return Notice 2013-61 provides special administrative procedures for employers to make claims for refunds or adjustments of overpayments of social security and Medicare taxes with respect to certain same-sex spouse benefits before expiration of the period of limitations. Filing tax return Notice 2013-61, 2013-44 I. Filing tax return R. Filing tax return B. Filing tax return 432, is available at www. Filing tax return irs. Filing tax return gov/irb/2013-44_IRB/ar10. Filing tax return html. Filing tax return Reminders Additional Medicare Tax withholding. Filing tax return  In addition to withholding Medicare tax at 1. Filing tax return 45%, you must withhold a 0. Filing tax return 9% Additional Medicare Tax from wages you pay to an employee in excess of $200,000 in a calendar year. Filing tax return 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. Filing tax return Additional Medicare Tax is only imposed on the employee. Filing tax return There is no employer share of Additional Medicare Tax. Filing tax return 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. Filing tax return For more information on what wages are subject to Medicare tax, see the chart, Special Rules for Various Types of Services and Payments , in section 15. Filing tax return For more information on Additional Medicare Tax, visit IRS. Filing tax return gov and enter “Additional Medicare Tax” in the search box. Filing tax return Work opportunity tax credit for qualified tax-exempt organizations hiring qualified veterans. Filing tax return  The work opportunity tax credit is available for eligible unemployed veterans who began work on or after November 22, 2011, and before January 1, 2014. Filing tax return Qualified tax-exempt organizations that hire eligible unemployed veterans can claim the work opportunity tax credit against their payroll tax liability using Form 5884-C, Work Opportunity Credit for Qualified Tax-Exempt Organizations Hiring Qualified Veterans. Filing tax return For more information, visit IRS. Filing tax return gov and enter “work opportunity tax credit” in the search box. Filing tax return Outsourcing payroll duties. Filing tax return  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. Filing tax return The employer remains responsible if the third party fails to perform any required action. Filing tax return 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. Filing tax return gov and enter “outsourcing payroll duties” in the search box for helpful information on this topic. Filing tax return COBRA premium assistance credit. Filing tax return  The credit for COBRA premium assistance payments applies to premiums paid for employees involuntarily terminated between September 1, 2008, and May 31, 2010, and to premiums paid for up to 15 months. Filing tax return See COBRA premium assistance credit under Introduction. Filing tax return Federal tax deposits must be made by electronic funds transfer. Filing tax return  You must use electronic funds transfer to make all federal tax deposits. Filing tax return Generally, electronic fund transfers are made using the Electronic Federal Tax Payment System (EFTPS). Filing tax return If you do not want to use EFTPS, you can arrange for your tax professional, financial institution, payroll service, or other trusted third party to make electronic deposits on your behalf. Filing tax return Also, you may arrange for your financial institution to initiate a same-day wire payment on your behalf. Filing tax return EFTPS is a free service provided by the Department of Treasury. Filing tax return Services provided by your tax professional, financial institution, payroll service, or other third party may have a fee. Filing tax return For more information on making federal tax deposits, see How To Deposit in section 11. Filing tax return To get more information about EFTPS or to enroll in EFTPS, visit www. Filing tax return eftps. Filing tax return gov or call 1-800-555-4477 or 1-800-733-4829 (TDD). Filing tax return Additional information about EFTPS is also available in Publication 966, Electronic Federal Tax Payment System: A Guide To Getting Started. Filing tax return You must receive written notice from the IRS to file Form 944. Filing tax return  If you have been filing Forms 941, Employer's QUARTERLY Federal Tax Return (or Forms 941-SS, Employer's QUARTERLY Federal Tax Return—American Samoa, Guam, the Commonwealth of the Northern Mariana Islands, and the U. Filing tax return S. Filing tax return Virgin Islands, or Formularios 941-PR, Planilla para la Declaración Federal TRIMESTRAL del Patrono), and believe your employment taxes for the calendar year will be $1,000 or less, and you would like to file Form 944, Employer's ANNUAL Federal Tax Return, instead of Forms 941, you must contact the IRS to request to file Form 944. Filing tax return You must receive written notice from the IRS to file Form 944 instead of Forms 941 before you may file this form. Filing tax return For more information on requesting to file Form 944, visit IRS. Filing tax return gov and enter “file employment taxes annually” in the search box. Filing tax return Employers can request to file Forms 941 instead of Form 944. Filing tax return  If you received notice from the IRS and have been filing Form 944 but would like to file Forms 941 instead, you must contact the IRS to request to file Forms 941. Filing tax return You must receive written notice from the IRS to file Forms 941 instead of Form 944 before you may file these forms. Filing tax return For more information on requesting to file Form 944, visit IRS. Filing tax return gov and enter “file employment taxes annually” in the search box. Filing tax return Aggregate Form 941 filers. Filing tax return  Agents must complete Schedule R (Form 941), Allocation Schedule for Aggregate Form 941 Filers, when filing an aggregate Form 941. Filing tax return Aggregate Forms 941 may only be filed by agents approved by the IRS under section 3504 of the Internal Revenue Code. Filing tax return To request approval to act as an agent for an employer, the agent files Form 2678, Employer/Payer Appointment of Agent, with the IRS. Filing tax return Aggregate Form 940 filers. Filing tax return  Agents must complete Schedule R (Form 940), Allocation Schedule for Aggregate Form 940 Filers, when filing an aggregate Form 940, Employer's Annual Federal Unemployment (FUTA) Tax Return. Filing tax return Aggregate Forms 940 can be filed by agents acting on behalf of home care service recipients who receive home care services through a program administered by a federal, state, or local government. Filing tax return To request approval to act as an agent on behalf of home care service recipients, the agent files Form 2678 with the IRS. Filing tax return Electronic Filing and Payment  Now, more than ever before, businesses can enjoy the benefits of filing and paying their federal taxes electronically. Filing tax return Whether you rely on a tax professional or handle your own taxes, the IRS offers you convenient programs to make filing and payment easier. Filing tax return Spend less time and worry about taxes and more time running your business. Filing tax return Use e-file and the Electronic Federal Tax Payment System (EFTPS) to your benefit. Filing tax return For e-file, visit www. Filing tax return irs. Filing tax return gov/efile for additional information. Filing tax return For EFTPS, visit www. Filing tax return eftps. Filing tax return gov or call EFTPS Customer Service at 1-800-555-4477 or 1-800-733-4829 (TDD). Filing tax return For electronic filing of Forms W-2, Wage and Tax Statement, visit www. Filing tax return socialsecurity. Filing tax return gov/employer. Filing tax return If you are filing your tax return or paying your federal taxes electronically, a valid EIN is required. Filing tax return If a valid EIN is not provided, the return or payment will not be processed. Filing tax return This may result in penalties and delays in processing your return or payment. Filing tax return Electronic funds withdrawal (EFW). Filing tax return  If you file Form 940, Form 941, Form 944, or Form 945 electronically, you can e-file and e-pay (electronic funds withdrawal) the balance due in a single step using tax preparation software or through a tax professional. Filing tax return However, do not use EFW to make federal tax deposits. Filing tax return For more information on paying your taxes using EFW, visit the IRS website at www. Filing tax return irs. Filing tax return gov/e-pay. Filing tax return A fee may be charged to file electronically. Filing tax return Credit or debit card payments. Filing tax return  For information on paying your taxes with a credit or debit card, visit the IRS website at www. Filing tax return irs. Filing tax return gov/e-pay. Filing tax return However, do not use credit or debit cards to make federal tax deposits. Filing tax return Forms in Spanish You can provide Formulario W-4(SP), Certificado de Exención de Retenciones del Empleado, in place of Form W-4, Employee's Withholding Allowance Certificate, to your Spanish-speaking employees. Filing tax return For more information, see Publicación 17(SP), El Impuesto Federal sobre los Ingresos (Para Personas Físicas). Filing tax return For nonemployees, Formulario W-9(SP), Solicitud y Certificación del Número de Identificación del Contribuyente, may be used in place of Form W-9, Request for Taxpayer Identification Number and Certification. Filing tax return Hiring New Employees Eligibility for employment. Filing tax return  You must verify that each new employee is legally eligible to work in the United States. Filing tax return This includes completing the U. Filing tax return S. Filing tax return Citizenship and Immigration Services (USCIS) Form I-9, Employment Eligibility Verification. Filing tax return You can get the form from USCIS offices or by calling 1-800-870-3676. Filing tax return Contact the USCIS at 1-800-375-5283, or visit the USCIS website at www. Filing tax return uscis. Filing tax return gov for more information. Filing tax return New hire reporting. Filing tax return  You are required to report any new employee to a designated state new hire registry. Filing tax return A new employee is an employee who has not previously been employed by you or was previously employed by you but has been separated from such prior employment for at least 60 consecutive days. Filing tax return Many states accept a copy of Form W-4 with employer information added. Filing tax return Visit the Office of Child Support Enforcement website at www. Filing tax return acf. Filing tax return hhs. Filing tax return gov/programs/cse/newhire for more information. Filing tax return W-4 request. Filing tax return  Ask each new employee to complete the 2014 Form W-4. Filing tax return See section 9. Filing tax return Name and social security number. Filing tax return  Record each new employee's name and number from his or her social security card. Filing tax return Any employee without a social security card should apply for one. Filing tax return See section 4. Filing tax return Paying Wages, Pensions, or Annuities Correcting Form 941 or Form 944. Filing tax return  If you discover an error on a previously filed Form 941 or Form 944, make the correction using Form 941-X, Adjusted Employer's QUARTERLY Federal Tax Return or Claim for Refund, or Form 944-X, Adjusted Employer's ANNUAL Federal Tax Return or Claim for Refund. Filing tax return Forms 941-X and 944-X are stand-alone forms, meaning taxpayers can file them when an error is discovered. Filing tax return Forms 941-X and 944-X are used by employers to claim refunds or abatements of employment taxes, rather than Form 843, Claim for Refund and Request for Abatement. Filing tax return See section 13 for more information. Filing tax return Income tax withholding. Filing tax return  Withhold federal income tax from each wage payment or supplemental unemployment compensation plan benefit payment according to the employee's Form W-4 and the correct withholding table. Filing tax return If you have nonresident alien employees, see Withholding income taxes on the wages of nonresident alien employees in section 9. Filing tax return Withhold from periodic pension and annuity payments as if the recipient is married claiming three withholding allowances, unless he or she has provided Form W-4P, Withholding Certificate for Pension or Annuity Payments, either electing no withholding or giving a different number of allowances, marital status, or an additional amount to be withheld. Filing tax return Do not withhold on direct rollovers from qualified plans or governmental section 457(b) plans. Filing tax return See section 9 and Publication 15-A, Employer's Supplemental Tax Guide. Filing tax return Publication 15-A includes information about withholding on pensions and annuities. Filing tax return Zero wage return. Filing tax return  If you have not filed a “final” Form 941 or Form 944, or are not a “seasonal” employer, you must continue to file a Form 941 or Form 944 even for periods during which you paid no wages. Filing tax return The IRS encourages you to file your “Zero Wage” Forms 941 or 944 electronically using IRS e-file at www. Filing tax return irs. Filing tax return gov/efile. Filing tax return Employer Responsibilities Employer Responsibilities: The following list provides a brief summary of your basic responsibilities. Filing tax return Because the individual circumstances for each employer can vary greatly, responsibilities for withholding, depositing, and reporting employment taxes can differ. Filing tax return Each item in this list has a page reference to a more detailed discussion in this publication. Filing tax return   New Employees: Page     Annually (By January 31 of the current year, Page □ Verify work eligibility of new employees 3     for the prior year):   □ Record employees' names and SSNs from     □ File Form 944 if required (pay tax with return if     social security cards 4     not required to deposit) 29 □ Ask employees for Form W-4 3     Annually (see Calendar for due dates):     Each Payday:     □ Remind employees to submit a new Form W-4   □ Withhold federal income tax based on each       if they need to change their withholding 20   employee's Form W-4 20   □ Ask for a new Form W-4 from employees   □ Withhold employee's share of social security       claiming exemption from income tax     and Medicare taxes 23     withholding 20 □ Deposit:     □ Reconcile Forms 941 (or Form 944) with Forms     • Withheld income tax       W-2 and W-3 31   • Withheld and employer social security taxes     □ Furnish each employee a Form W-2 7   • Withheld and employer Medicare taxes 24   □ File Copy A of Forms W-2 and the transmittal     Note:Due date of deposit generally depends       Form W-3 with the SSA 8   on your deposit schedule (monthly or semiweekly)     □ Furnish each other payee a Form 1099 (for example, Form 1099-MISC, Miscellaneous Income) 7   Quarterly (By April 30, July 31, October 31, and January 31):     □ File Forms 1099 and the transmittal Form   □ Deposit FUTA tax if undeposited amount       1096 8   is over $500 35   □ File Form 940 7 □ File Form 941 (pay tax with return if not     □ File Form 945 for any nonpayroll income tax     required to deposit) 29     withholding 8 Information Returns You may be required to file information returns to report certain types of payments made during the year. Filing tax return For example, you must file Form 1099-MISC, Miscellaneous Income, to report payments of $600 or more to persons not treated as employees (for example, independent contractors) for services performed for your trade or business. Filing tax return For details about filing Forms 1099 and for information about required electronic filing, see the General Instructions for Certain Information Returns for general information and the separate, specific instructions for each information return you file (for example, Instructions for Form 1099-MISC). Filing tax return Generally, do not use Forms 1099 to report wages and other compensation you paid to employees; report these on Form W-2. Filing tax return See the General Instructions for Forms W-2 and W-3 for details about filing Form W-2 and for information about required electronic filing. Filing tax return If you file 250 or more Forms 1099, you must file them electronically. Filing tax return If you file 250 or more Forms W-2, you must file them electronically. Filing tax return SSA will not accept Forms W-2 and W-3 filed on magnetic media. Filing tax return Information reporting customer service site. Filing tax return  The IRS operates the Enterprise Computing Center—Martinsburg, a centralized customer service site, to answer questions about reporting on Forms W-2, W-3, 1099, and other information returns. Filing tax return If you have questions related to reporting on information returns, call 1-866-455-7438 (toll free), 304-263-8700 (toll call), or 304-267-3367 (TDD/TTY for persons who are deaf, hard of hearing, or have a speech disability). Filing tax return The center can also be reached by email at mccirp@irs. Filing tax return gov. Filing tax return Do not include tax identification numbers (TINs) or attachments in email correspondence because electronic mail is not secure. Filing tax return Nonpayroll Income Tax Withholding Nonpayroll federal income tax withholding (reported on Forms 1099 and Form W-2G) must be reported on Form 945, Annual Return of Withheld Federal Income Tax. Filing tax return Separate deposits are required for payroll (Form 941 or Form 944) and nonpayroll (Form 945) withholding. Filing tax return Nonpayroll items include: Pensions (including distributions from tax-favored retirement plans, for example, section 401(k), section 403(b), and governmental section 457(b) plans) and annuities. Filing tax return Military retirement. Filing tax return Gambling winnings. Filing tax return Indian gaming profits. Filing tax return Certain government payments, such as unemployment compensation, social security, and Tier 1 railroad retirement benefits, subject to voluntary withholding. Filing tax return Payments subject to backup withholding. Filing tax return For details on depositing and reporting nonpayroll income tax withholding, see the Instructions for Form 945. Filing tax return All income tax withholding reported on Form W-2 must be reported on Form 941, Form 943, Employer's Annual Federal Tax Return for Agricultural Employees, Form 944, or Schedule H (Form 1040), Household Employment Taxes. Filing tax return Distributions from nonqualified pension plans and deferred compensation plans. Filing tax return  Because distributions to participants from some nonqualified pension plans and deferred compensation plans (including section 457(b) plans of tax-exempt organizations) are treated as wages and are reported on Form W-2, income tax withheld must be reported on Form 941 or Form 944, not on Form 945. Filing tax return However, distributions from such plans to a beneficiary or estate of a deceased employee are not wages and are reported on Forms 1099-R, Distributions From Pensions, Annuities, Retirement or Profit-Sharing Plans, IRAs, Insurance Contracts, etc. Filing tax return ; income tax withheld must be reported on Form 945. Filing tax return Backup withholding. Filing tax return  You generally must withhold 28% of certain taxable payments if the payee fails to furnish you with his or her correct taxpayer identification number (TIN). Filing tax return This withholding is referred to as “backup withholding. Filing tax return ” Payments subject to backup withholding include interest, dividends, patronage dividends, rents, royalties, commissions, nonemployee compensation, and certain other payments you make in the course of your trade or business. Filing tax return In addition, transactions by brokers and barter exchanges and certain payments made by fishing boat operators are subject to backup withholding. Filing tax return Backup withholding does not apply to wages, pensions, annuities, IRAs (including simplified employee pension (SEP) and SIMPLE retirement plans), section 404(k) distributions from an employee stock ownership plan (ESOP), medical savings accounts, health savings accounts, long-term-care benefits, or real estate transactions. Filing tax return You can use Form W-9 or Formulario W-9(SP) to request payees to furnish a TIN and to certify the number furnished is correct. Filing tax return You can also use Form W-9 or Formulario W-9(SP) to get certifications from payees that they are not subject to backup withholding or that they are exempt from backup withholding. Filing tax return The Instructions for the Requester of Form W-9 or Formulario W-9(SP) includes a list of types of payees who are exempt from backup withholding. Filing tax return For more information, see Publication 1281, Backup Withholding for Missing and Incorrect Name/TIN(s). Filing tax return Recordkeeping Keep all records of employment taxes for at least 4 years. Filing tax return These should be available for IRS review. Filing tax return Your records should include the following information. Filing tax return Your EIN. Filing tax return Amounts and dates of all wage, annuity, and pension payments. Filing tax return Amounts of tips reported to you by your employees. Filing tax return Records of allocated tips. Filing tax return The fair market value of in-kind wages paid. Filing tax return Names, addresses, social security numbers, and occupations of employees and recipients. Filing tax return Any employee copies of Forms W-2 and W-2c returned to you as undeliverable. Filing tax return Dates of employment for each employee. Filing tax return Periods for which employees and recipients were paid while absent due to sickness or injury and the amount and weekly rate of payments you or third party payors made to them. Filing tax return Copies of employees' and recipients' income tax withholding allowance certificates (Forms W-4, W-4P, W-4(SP), W-4S, and W-4V). Filing tax return Copies of employees' Earned Income Credit Advance Payment Certificates (Forms W-5 and W-5(SP)). Filing tax return Dates and amounts of tax deposits you made and acknowledgment numbers for deposits made by EFTPS. Filing tax return Copies of returns filed and confirmation numbers. Filing tax return Records of fringe benefits and expense reimbursements provided to your employees, including substantiation. Filing tax return Change of Business Address or Responsible Party To notify the IRS of a change in business address or responsible party, file Form 8822-B. Filing tax return Do not mail Form 8822-B with your employment tax return. Filing tax return Private Delivery Services You can use certain private delivery services designated by the IRS to mail tax returns and payments. Filing tax return The list includes only the following: DHL Express (DHL): DHL Same Day Service. Filing tax return Federal Express (FedEx): FedEx Priority Overnight, FedEx Standard Overnight, FedEx 2Day, FedEx International Priority, and FedEx International First. Filing tax return United Parcel Service (UPS): UPS Next Day Air, UPS Next Day Air Saver, UPS 2nd Day Air, UPS 2nd Day Air A. Filing tax return M. Filing tax return , UPS Worldwide Express Plus, and UPS Worldwide Express. Filing tax return For the IRS mailing address to use if you are using a private delivery service, go to IRS. Filing tax return gov and enter “private delivery service” in the search box. Filing tax return Your private delivery service can tell you how to get written proof of the mailing date. Filing tax return   Private delivery services cannot deliver items to P. Filing tax return O. Filing tax return boxes. Filing tax return You must use the U. Filing tax return S. Filing tax return Postal Service to mail any item to an IRS P. Filing tax return O. Filing tax return box address. Filing tax return Telephone Help Tax questions. Filing tax return   You can call the IRS Business and Specialty Tax Line with your employment tax questions at 1-800-829-4933. Filing tax return Help for people with disabilities. Filing tax return  You may call 1-800-829-4059 (TDD/TTY for persons who are deaf, hard of hearing, or have a speech disability) with any tax question or to order forms and publications. Filing tax return You may also use this number for assistance with unresolved tax problems. Filing tax return Recorded tax information (TeleTax). Filing tax return  The IRS TeleTax service provides recorded tax information on topics that answer many individual and business federal tax questions. Filing tax return You can listen to up to three topics on each call you make. Filing tax return Touch-Tone service is available 24 hours a day, 7 days a week. Filing tax return TeleTax topics are also available on the IRS website at www. Filing tax return irs. Filing tax return gov/taxtopics. Filing tax return Most tax topics listed below are also available in Spanish. Filing tax return For a complete list of TeleTax topics in Spanish, visit the IRS website at www. Filing tax return irs. Filing tax return gov/Spanish/Índice-de-Temas-Tributarios-Año-2013. Filing tax return A list of employment tax topics is provided next. Filing tax return Select, by number, the topic you want to hear and call 1-800-829-4477. Filing tax return For the directory of all topics, select Topic 123. Filing tax return Teletax Topics Topic No. Filing tax return Subject 751 Social Security and Medicare Withholding Rates 752 Form W-2—Where, When, and How to File 753 Form W-4—Employee's Withholding Allowance Certificate 755 Employer Identification Number (EIN)—How to Apply 756 Employment Taxes for Household Employees 757 Form 941 and Form 944—Deposit Requirements 758 Form 941—Employer's QUARTERLY Federal Tax Return and Form 944—Employer's ANNUAL Federal Tax Return 759 Form 940—Employer's Annual Federal Unemployment (FUTA) Tax Return—Filing and Deposit Requirements 760 Reporting and Deposit Requirements for Agricultural Employers 761 Tips—Withholding and Reporting 762 Independent Contractor vs. Filing tax return Employee 763 The “Affordable Care Act” of 2010 Offers Employers New Tax Deductions and Credits Additional employment tax information. Filing tax return  Visit the IRS website at www. Filing tax return irs. Filing tax return gov/businesses and click on the Employment Taxes link under Businesses Topics. Filing tax return Ordering Employer Tax Forms and Publications You can order employer tax forms and publications and information returns online at www. Filing tax return irs. Filing tax return gov/businesses. Filing tax return To order 2013 and 2014 forms, click on the Online Ordering for Information Returns and Employer Returns link. Filing tax return You may also order employer tax forms and publications and information returns by calling 1-800-TAX-FORM (1-800-829-3676). Filing tax return Instead of ordering paper Forms W-2 and W-3, consider filing them electronically using the Social Security Administration's (SSA) free e-file service. Filing tax return Visit the SSA's Employer W-2 Filing Instructions & Information website at www. Filing tax return socialsecurity. Filing tax return gov/employer to register for Business Services Online. Filing tax return You will be able to create Forms W-2 online and submit them to the SSA by typing your wage information into easy-to-use fill-in fields. Filing tax return In addition, you can print out completed copies of Forms W-2 to file with state or local governments, distribute to your employees, and keep for your records. Filing tax return Form W-3 will be created for you based on your Forms W-2. Filing tax return Filing Addresses Generally, your filing address for Forms 940, 941, 943, 944, 945, and CT-1 depends on the location of your residence or principal place of business and whether or not you are including a payment with your return. Filing tax return There are separate filing addresses for these returns if you are a tax-exempt organization or government entity. Filing tax return See the separate instructions for Forms 940, 941, 943, 944, 945, or CT-1 for the filing addresses. 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Filing tax return Publication 15-A includes specialized information supplementing the basic employment tax information provided in this publication. Filing tax return Publication 15-B, Employer's Tax Guide to Fringe Benefits, contains information about the employment tax treatment and valuation of various types of noncash compensation. Filing tax return Most employers must withhold (except FUTA), deposit, report, and pay the following employment taxes. Filing tax return Income tax. Filing tax return Social security tax. Filing tax return Medicare tax. Filing tax return FUTA tax. Filing tax return There are exceptions to these requirements. Filing tax return See section 15 for guidance. Filing tax return Railroad retirement taxes are explained in the Instructions for Form CT-1. Filing tax return Comments and suggestions. Filing tax return   We welcome your comments about this publication and your suggestions for future editions. 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Filing tax return   The information in this publication, including the rules for making federal tax deposits, applies to federal agencies. Filing tax return State and local government employers. Filing tax return   Payments to employees for services in the employ of state and local government employers are generally subject to federal income tax withholding but not FUTA tax. Filing tax return Most elected and appointed public officials of state or local governments are employees under common law rules. Filing tax return See chapter 3 of Publication 963, Federal-State Reference Guide. Filing tax return In addition, wages, with certain exceptions, are subject to social security and Medicare taxes. Filing tax return See section 15 for more information on the exceptions. Filing tax return   If an election worker is employed in another capacity with the same government entity, see Revenue Ruling 2000-6 on page 512 of Internal Revenue Bulletin 2000-6 at www. Filing tax return irs. Filing tax return gov/pub/irs-irbs/irb00-06. Filing tax return pdf. Filing tax return   You can get information on reporting and social security coverage from your local IRS office. Filing tax return If you have any questions about coverage under a section 218 (Social Security Act) agreement, contact the appropriate state official. Filing tax return To find your State Social Security Administrator, visit the National Conference of State Social Security Administrators website at www. Filing tax return ncsssa. Filing tax return org. Filing tax return Disregarded entities and qualified subchapter S subsidiaries (QSubs). Filing tax return   Eligible single-owner disregarded entities and QSubs are treated as separate entities for employment tax purposes. Filing tax return Eligible single-member entities that have not elected to be taxed as corporations must report and pay employment taxes on wages paid to their employees using the entities' own names and EINs. 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Filing tax return Similar requirements apply under the Federal Employees Health Benefits Program and under some state laws. Filing tax return For the premium assistance (or subsidy) discussed below, these requirements are all referred to as COBRA requirements. Filing tax return   Under the American Recovery and Reinvestment Act of 2009 (ARRA), employers are allowed a credit against “payroll taxes” (referred to in this publication as “employment taxes”) for providing COBRA premium assistance to assistance eligible individuals. Filing tax return For periods of COBRA continuation coverage beginning after February 16, 2009, a group health plan must treat an assistance eligible individual as having paid the required COBRA continuation coverage premium if the individual elects COBRA coverage and pays 35% of the amount of the premium. Filing tax return   An assistance eligible individual is a qualified beneficiary of an employer's group health plan who is eligible for COBRA continuation coverage during the period beginning September 1, 2008, and ending May 31, 2010, due to the involuntarily termination from employment of a covered employee during the period and elects continuation COBRA coverage. Filing tax return The assistance for the coverage can last up to 15 months. Filing tax return   Employees terminated during the period beginning September 1, 2008, and ending May 31, 2010, who received a severance package that delayed the start of the COBRA continuation coverage, may still be eligible for premium assistance for COBRA continuation coverage. Filing tax return For more information see Notice 2009-27, 2009-16 I. Filing tax return R. Filing tax return B. Filing tax return 838, available at www. Filing tax return irs. Filing tax return gov/irb/2009-16_irb/ar09. Filing tax return html. Filing tax return   Administrators of the group health plans (or other entities) that provide or administer COBRA continuation coverage must provide notice to assistance eligible individuals of the COBRA premium assistance. Filing tax return   The 65% of the premium not paid by the assistance eligible individuals is reimbursed to the employer maintaining the group health plan. Filing tax return The reimbursement is made through a credit against the employer's employment tax liabilities. Filing tax return For information on how to claim the credit, see the Instructions for Form 941 or the Instructions for Form 944. Filing tax return The credit is treated as a deposit made on the first day of the return period (quarter or year). Filing tax return In the case of a multiemployer plan, the credit is claimed by the plan, rather than the employer. Filing tax return In the case of an insured plan subject to state law continuation coverage requirements, the credit is claimed by the insurance company, rather than the employer. Filing tax return   Anyone claiming the credit for COBRA premium assistance payments must maintain the following information to support their claim, including the following. Filing tax return Information on the receipt of the assistance eligible individuals' 35% share of the premium, including dates and amounts. Filing tax return In the case of an insurance plan, a copy of invoice or other supporting statement from the insurance carrier and proof of timely payment of the full premium to the insurance carrier required under COBRA. Filing tax return In the case of a self-insured plan, proof of the premium amount and proof of the coverage provided to the assistance eligible individuals. Filing tax return Attestation of involuntary termination, including the date of the involuntary termination for each covered employee whose involuntary termination is the basis for eligibility for the subsidy. Filing tax return Proof of each assistance eligible individual's eligibility for COBRA coverage and the election of COBRA coverage. Filing tax return A record of the SSNs of all covered employees, the amount of the subsidy reimbursed with respect to each covered employee, and whether the subsidy was for one individual or two or more individuals. Filing tax return   For more information, visit IRS. Filing tax return gov and enter “COBRA” in the search box. Filing tax return Prev  Up  Next   Home   More Online Publications
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IRS Releases the Dirty Dozen Tax Scams for 2013

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Dirty Dozen: English | Spanish | ASL

IR-2013-33, March 26, 2013

WASHINGTON — The Internal Revenue Service today issued its annual “Dirty Dozen” list of tax scams, reminding taxpayers to use caution during tax season to protect themselves against a wide range of schemes ranging from identity theft to return preparer fraud.

The Dirty Dozen listing, compiled by the IRS each year, lists a variety of common scams taxpayers can encounter at any point during the year. But many of these schemes peak during filing season as people prepare their tax returns.

"This tax season, the IRS has stepped up its efforts to protect taxpayers from a wide range of schemes, including moving aggressively to combat identity theft and refund fraud," said IRS Acting Commissioner Steven T. Miller. "The Dirty Dozen list shows that scams come in many forms during filing season. Don't let a scam artist steal from you or talk you into doing something you will regret later."

Illegal scams can lead to significant penalties and interest and possible criminal prosecution. IRS Criminal Investigation works closely with the Department of Justice (DOJ) to shutdown scams and prosecute the criminals behind them.

The following are the Dirty Dozen tax scams for 2013:

Identity Theft

Tax fraud through the use of identity theft tops this year’s Dirty Dozen list. Identity theft occurs when someone uses your personal information such as your name, Social Security number (SSN) or other identifying information, without your permission, to commit fraud or other crimes. In many cases, an identity thief uses a legitimate taxpayer’s identity to fraudulently file a tax return and claim a refund.

Combating identity theft and refund fraud is a top priority for the IRS, and we are taking special steps to assist victims. For the 2013 tax season, the IRS has put in place a number of additional steps to prevent identity theft and detect refund fraud before it occurs. We have dramatically enhanced our systems, and we are committed to continuing to improve our prevention, detection and assistance efforts.

The IRS has a comprehensive and aggressive identity theft strategy employing a three-pronged effort focusing on fraud prevention, early detection and victim assistance. We are continually reviewing our processes and policies to ensure that we are doing everything possible to minimize identity theft incidents, to help those victimized by it and to investigate those who are committing the crimes.

The IRS continues to increase its efforts against refund fraud, which includes identity theft. During 2012, the IRS prevented the issuance of $20 billion of fraudulent refunds, including those related to identity theft, compared with $14 billion in 2011.

This January, the IRS also conducted a coordinated and highly successful identity theft enforcement sweep. The coast-to-coast effort against identity theft suspects led to 734 enforcement actions in January, including 298 indictments, informations, complaints and arrests. The effort comes on top of a growing identity theft effort that led to 2,400 other enforcement actions against identity thieves during fiscal year 2012. The Criminal Investigation unit has devoted more than 500,000 staff-hours to fighting this issue.

We know identity theft is a frustrating and complex process for victims. The IRS has 3,000 people working on identity theft related cases — more than double the number in late 2011. And we have trained 35,000 employees who work with taxpayers to help with identity theft situations.

The IRS has a special section on IRS.gov dedicated to identity theft issues, including YouTube videos, tips for taxpayers and an assistance guide. For victims, the information includes how to contact the IRS Identity Protection Specialized Unit. For other taxpayers, there are tips on how taxpayers can protect themselves against identity theft.

Taxpayers who believe they are at risk of identity theft due to lost or stolen personal information should contact the IRS immediately so the agency can take action to secure their tax account. Taxpayers can call the IRS Identity Protection Specialized Unit at 800-908-4490. More information can be found on the special identity protection page.

Phishing

Phishing is a scam typically carried out with the help of unsolicited email or a fake website that poses as a legitimate site to lure in potential victims and prompt them to provide valuable personal and financial information. Armed with this information, a criminal can commit identity theft or financial theft.

If you receive an unsolicited email that appears to be from either the IRS or an organization closely linked to the IRS, such as the Electronic Federal Tax Payment System (EFTPS), report it by sending it to phishing@irs.gov.

It is important to keep in mind the IRS does not initiate contact with taxpayers by email to request personal or financial information. This includes any type of electronic communication, such as text messages and social media channels. The IRS has information that can help you protect yourself from email scams.

Return Preparer Fraud

About 60 percent of taxpayers will use tax professionals this year to prepare their tax returns. Most return preparers provide honest service to their clients. But some unscrupulous preparers prey on unsuspecting taxpayers, and the result can be refund fraud or identity theft.

It is important to choose carefully when hiring an individual or firm to prepare your return. This year, the IRS wants to remind all taxpayers that they should use only preparers who sign the returns they prepare and enter their IRS Preparer Tax Identification Numbers (PTINs).

The IRS also has created a new web page to assist taxpayers. For tips about choosing a preparer, red flags, details on preparer qualifications and information on how and when to make a complaint, visit www.irs.gov/chooseataxpro.

Remember: Taxpayers are legally responsible for what’s on their tax return even if it is prepared by someone else. Make sure the preparer you hire is up to the task.

IRS.gov has general information on reporting tax fraud. More specifically, report abusive tax preparers to the IRS on Form 14157, Complaint: Tax Return Preparer. Download Form 14157 and fill it out or order by mail at 800-TAX FORM (800-829-3676). The form includes a return address.

Hiding Income Offshore

Over the years, numerous individuals have been identified as evading U.S. taxes by hiding income in offshore banks, brokerage accounts or nominee entities, using debit cards, credit cards or wire transfers to access the funds. Others have employed foreign trusts, employee-leasing schemes, private annuities or insurance plans for the same purpose.

The IRS uses information gained from its investigations to pursue taxpayers with undeclared accounts, as well as the banks and bankers suspected of helping clients hide their assets overseas. The IRS works closely with the Department of Justice (DOJ) to prosecute tax evasion cases.

While there are legitimate reasons for maintaining financial accounts abroad, there are reporting requirements that need to be fulfilled. U.S. taxpayers who maintain such accounts and who do not comply with reporting and disclosure requirements are breaking the law and risk significant penalties and fines, as well as the possibility of criminal prosecution.

Since 2009, 38,000 individuals have come forward voluntarily to disclose their foreign financial accounts, taking advantage of special opportunities to comply with the U.S. tax system and resolve their tax obligations. And, with new foreign account reporting requirements being phased in over the next few years, hiding income offshore will become increasingly more difficult.

At the beginning of 2012, the IRS reopened the Offshore Voluntary Disclosure Program (OVDP) following continued strong interest from taxpayers and tax practitioners after the closure of the 2011 and 2009 programs. The IRS continues working on a wide range of international tax issues and follows ongoing efforts with DOJ to pursue criminal prosecution of international tax evasion. This program will be open for an indefinite period until otherwise announced.

The IRS has collected $5.5 billion so far from people who participated in offshore voluntary disclosure programs since 2009.

“Free Money” from the IRS & Tax Scams Involving Social Security

Flyers and advertisements for free money from the IRS, suggesting that the taxpayer can file a tax return with little or no documentation, have been appearing in community churches around the country. These schemes promise refunds to people who have little or no income and normally don’t have a tax filing requirement – and are also often spread by word of mouth as unsuspecting and well-intentioned people tell their friends and relatives.

Scammers prey on low income individuals and the elderly and members of church congregations with bogus promises of free money. They build false hopes and charge people good money for bad advice including encouraging taxpayers to make fictitious claims for refunds or rebates based on false statements of entitlement to tax credits. For example, some promoters claim they can obtain for their victims, often senior citizens, a tax refund or nonexistent stimulus payment based on the American Opportunity Tax Credit, even if the victim was not enrolled in or paying for college. Con artists also falsely claim that refunds are available even if the victim went to school decades ago. In the end, the victims discover their claims are rejected. Meanwhile, the promoters are long gone. The IRS warns all taxpayers to remain vigilant.

There are also a number of tax scams involving Social Security. For example, scammers have been known to lure the unsuspecting with promises of non-existent Social Security refunds or rebates. In another situation, a taxpayer may really be due a credit or refund but uses inflated information to complete the return.

Beware: Intentional mistakes of this kind can result in a $5,000 penalty.

Impersonation of Charitable Organizations

Another long-standing type of abuse or fraud is scams that occur in the wake of significant natural disasters.

Following major disasters, it’s common for scam artists to impersonate charities to get money or private information from well-intentioned taxpayers. Scam artists can use a variety of tactics. Some scammers operating bogus charities may contact people by telephone or email to solicit money or financial information. They may even directly contact disaster victims and claim to be working for or on behalf of the IRS to help the victims file casualty loss claims and get tax refunds.

They may attempt to get personal financial information or Social Security numbers that can be used to steal the victims’ identities or financial resources. Bogus websites may solicit funds for disaster victims. As in the case of a recent disaster, Hurricane Sandy, the IRS cautions both victims of natural disasters and people wishing to make charitable donations to avoid scam artists by following these tips:

  • To help disaster victims, donate to recognized charities.
  • Be wary of charities with names that are similar to familiar or nationally known organizations. Some phony charities use names or websites that sound or look like those of respected, legitimate organizations. IRS.gov has a search feature, Exempt Organizations Select Check, which allows people to find legitimate, qualified charities to which donations may be tax-deductible.
  • Don’t give out personal financial information, such as Social Security numbers or credit card and bank account numbers and passwords, to anyone who solicits  a contribution from you. Scam artists may use this information to steal your identity and money.
  • Don’t give or send cash. For security and tax record purposes, contribute by check or credit card or another way that provides documentation of the gift.

Call the IRS toll-free disaster assistance telephone number (1-866-562-5227) if you are a disaster victim with specific questions about tax relief or disaster related tax issues.

False/Inflated Income and Expenses

Including income that was never earned, either as wages or as self-employment income in order to maximize refundable credits, is another popular scam. Claiming income you did not earn or expenses you did not pay in order to secure larger refundable credits such as the Earned Income Tax Credit could have serious repercussions. This could result in repaying the erroneous refunds, including interest and penalties, and in some cases, even prosecution.

Additionally, some taxpayers are filing excessive claims for the fuel tax credit. Farmers and other taxpayers who use fuel for off-highway business purposes may be eligible for the fuel tax credit. But other individuals have claimed the tax credit although they were not eligible. Fraud involving the fuel tax credit is considered a frivolous tax claim and can result in a penalty of $5,000.

False Form 1099 Refund Claims

In some cases, individuals have made refund claims based on the bogus theory that the federal government maintains secret accounts for U.S. citizens and that taxpayers can gain access to the accounts by issuing 1099-OID forms to the IRS. In this ongoing scam, the perpetrator files a fake information return, such as a Form 1099 Original Issue Discount (OID), to justify a false refund claim on a corresponding tax return.

Don’t fall prey to people who encourage you to claim deductions or credits to which you are not entitled or willingly allow others to use your information to file false returns. If you are a party to such schemes, you could be liable for financial penalties or even face criminal prosecution.

Frivolous Arguments

Promoters of frivolous schemes encourage taxpayers to make unreasonable and outlandish claims to avoid paying the taxes they owe. The IRS has a list of frivolous tax arguments that taxpayers should avoid. These arguments are false and have been thrown out of court. While taxpayers have the right to contest their tax liabilities in court, no one has the right to disobey the law.

Falsely Claiming Zero Wages

Filing a phony information return is an illegal way to lower the amount of taxes an individual owes. Typically, a Form 4852 (Substitute Form W-2) or a “corrected” Form 1099 is used as a way to improperly reduce taxable income to zero. The taxpayer may also submit a statement rebutting wages and taxes reported by a payer to the IRS.

Sometimes, fraudsters even include an explanation on their Form 4852 that cites statutory language on the definition of wages or may include some reference to a paying company that refuses to issue a corrected Form W-2 for fear of IRS retaliation. Taxpayers should resist any temptation to participate in any variations of this scheme. Filing this type of return may result in a $5,000 penalty.

Disguised Corporate Ownership

Third parties are improperly used to request employer identification numbers and form corporations that obscure the true ownership of the business.

These entities can be used to underreport income, claim fictitious deductions, avoid filing tax returns, participate in listed transactions and facilitate money laundering and financial crimes. The IRS is working with state authorities to identify these entities and bring the owners into compliance with the law.

Misuse of Trusts

For years, unscrupulous promoters have urged taxpayers to transfer assets into trusts. While there are legitimate uses of trusts in tax and estate planning, some highly questionable transactions promise reduction of income subject to tax, deductions for personal expenses and reduced estate or gift taxes. Such trusts rarely deliver the tax benefits promised and are used primarily as a means of avoiding income tax liability and hiding assets from creditors, including the IRS.

IRS personnel have seen an increase in the improper use of private annuity trusts and foreign trusts to shift income and deduct personal expenses. As with other arrangements, taxpayers should seek the advice of a trusted professional before entering a trust arrangement.
 

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Filing tax return Index A Adjusted basis, Adjusted Basis Assessments For local benefits, Assessments for local benefits. Filing tax return Homeowners association, Homeowners association assessments. Filing tax return Assistance (see Tax help) B Basis, Basis C Certificate, mortgage credit, Who qualifies. Filing tax return Construction, Construction. Filing tax return Cooperatives, Special Rules for Cooperatives, Cooperative apartment. Filing tax return Cost basis, Cost as Basis Credit Mortgage interest, Mortgage Interest Credit D Deduction Home mortgage interest, Deductible Mortgage Interest Real estate taxes, Deductible Real Estate Taxes E Emergency Homeowners' Loan Program, Hardest Hit Fund and Emergency Homeowners' Loan Programs Escrow accounts, Escrow accounts. Filing tax return F Fire insurance premiums, Items not added to basis and not deductible. Filing tax return Form 1098, Mortgage Interest Statement 8396, How to claim the credit. Filing tax return , Figuring the Credit Free tax services, Free help with your tax return. Filing tax return G Gift of home, Gift Ground rent, Ground rent. Filing tax return H Help (see Tax help) HFA Hardest Hit Fund, Hardest Hit Fund and Emergency Homeowners' Loan Programs Home Acquisition debt, Home Acquisition Debt Inherited, Inheritance Mortgage interest, Home Mortgage Interest Purchase of, Purchase. Filing tax return Received as gift, Gift Homeowners association assessments, Homeowners association assessments. Filing tax return House payment, Your house payment. Filing tax return Housing allowance, minister or military, Minister's or military housing allowance. Filing tax return I Improvements, Improvements. Filing tax return Inheritance, Inheritance Insurance, Nondeductible payments. Filing tax return , Items not added to basis and not deductible. Filing tax return Interest Home mortgage, Home Mortgage Interest Prepaid, Prepaid interest. Filing tax return K Keeping records, Keeping Records L Late payment charge, Late payment charge on mortgage payment. Filing tax return Local benefits, assessments for, Assessments for local benefits. Filing tax return M MCC (Mortgage credit certificate), Who qualifies. Filing tax return Minister's or military housing allowance, Minister's or military housing allowance. Filing tax return Mortgage credit certificate (MCC), Who qualifies. Filing tax return Mortgage debt forgiveness, Discharges of qualified principal residence indebtedness. Filing tax return Mortgage insurance premiums, Mortgage Insurance Premiums Mortgage interest Credit, Mortgage Interest Credit Deduction, Deductible Mortgage Interest Late payment charge, Late payment charge on mortgage payment. Filing tax return Paid at settlement, Mortgage Interest Paid at Settlement Refund, Refund of home mortgage interest. Filing tax return , Refund of overpaid interest. Filing tax return Statement, Mortgage Interest Statement Mortgage prepayment penalty, Mortgage prepayment penalty. Filing tax return N Nondeductible payments, Nondeductible payments. Filing tax return , Items not added to basis and not deductible. Filing tax return P Points, Points Prepaid interest, Prepaid interest. Filing tax return Publications (see Tax help) R Real estate taxes, Real Estate Taxes Deductible, Deductible Real Estate Taxes Paid at settlement or closing, Real estate taxes paid at settlement or closing. Filing tax return , Real estate taxes. Filing tax return Refund or rebate, Refund or rebate of real estate taxes. Filing tax return Recordkeeping, Keeping Records Refund of Mortgage interest, Refund of home mortgage interest. Filing tax return , Refund of overpaid interest. Filing tax return Real estate taxes, Refund or rebate of real estate taxes. Filing tax return Repairs, Repairs versus improvements. Filing tax return S Sales taxes, Sales Taxes Settlement or closing costs Basis of home, Settlement or closing costs. Filing tax return Mortgage interest, Mortgage Interest Paid at Settlement Real estate taxes, Real estate taxes paid at settlement or closing. Filing tax return , Real estate taxes. Filing tax return Stamp taxes, Transfer taxes (or stamp taxes). Filing tax return Statement, mortgage interest, Mortgage Interest Statement T Tax help, How To Get Tax Help Taxes Real estate, Real Estate Taxes, Refund of real estate taxes. Filing tax return Transfer taxes, Transfer taxes (or stamp taxes). Filing tax return W What you can and cannot deduct, What You Can and Cannot Deduct Prev  Up     Home   More Online Publications