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The Form 1040a
Form 1040a 1. Form 1040a Filing and Paying Business Taxes Table of Contents Introduction Useful Items - You may want to see: Identification NumbersNew EIN. Form 1040a Employee. Form 1040a Other payee. Form 1040a Income TaxDo I Have To File an Income Tax Return? How Do I File? IRS e-file (Electronic Filing) When Is My Tax Return Due? How Do I Pay Income Tax? Self-Employment (SE) TaxHow to become insured under social security. Form 1040a Earning credits in 2013 and 2014. Form 1040a Employment Taxes Excise Taxes Information ReturnsWaiver of penalties. Form 1040a Penalties. Form 1040a Introduction This chapter explains the business taxes you may have to pay and the forms you may have to file. Form 1040a It also discusses taxpayer identification numbers. Form 1040a Table 1-1 lists the benefits of filing electronically. Form 1040a Table 1-2 lists the federal taxes you may have to pay, their due dates, and the forms you use to report them. Form 1040a Table 1-3 provides checklists that highlight the typical forms and schedules you may need to file if you ever go out of business. Form 1040a You may want to get Publication 509, Tax Calendars. Form 1040a It has tax calendars that tell you when to file returns and make tax payments. Form 1040a Useful Items - You may want to see: Publication 505 Tax Withholding and Estimated Tax Form (and Instructions) 1040 U. Form 1040a S. Form 1040a Individual Income Tax Return 1040-ES Estimated Tax for Individuals Sch C (Form 1040) Profit or Loss From Business Sch C-EZ (Form 1040) Net Profit From Business Sch SE (Form 1040) Self-Employment Tax See chapter 12 for information about getting publications and forms. Form 1040a Identification Numbers This section explains three types of taxpayer identification numbers, who needs them, when to use them, and how to get them. Form 1040a Social security number (SSN). Form 1040a Generally, use your SSN as your taxpayer identification number. Form 1040a You must put this number on each of your individual income tax forms, such as Form 1040 and its schedules. Form 1040a To apply for an SSN, use Form SS-5, Application for a Social Security Card. Form 1040a This form is available at Social Security Administration (SSA) offices or by calling 1-800-772-1213. Form 1040a It is also available from the SSA website at www. Form 1040a socialsecurity. Form 1040a gov. Form 1040a Individual taxpayer identification number (ITIN). Form 1040a The IRS will issue an ITIN if you are a nonresident or resident alien and you do not have and are not eligible to get an SSN. Form 1040a In general, if you need to obtain an ITIN, you must attach Form W-7, Application for IRS Individual Taxpayer Identification Number, with your signed, original, completed tax return and any other required documentation and mail them to the following address. Form 1040a Internal Revenue Service ITIN Operation P. Form 1040a O. Form 1040a Box 149342 Austin, TX 78714-9342 The exceptions are covered in detail in the instructions for Form W-7. Form 1040a If you must include another person's SSN on your return and that person does not have and cannot get an SSN, enter that person's ITIN. Form 1040a The application is also available in Spanish. Form 1040a The form is available at IRS. Form 1040a gov or you can call 1-800-829-3676 to order the form. Form 1040a An ITIN is for tax use only. Form 1040a It does not entitle the holder to social security benefits or change the holder's employment or immigration status. Form 1040a Employer identification number (EIN). Form 1040a You must also have an EIN to use as a taxpayer identification number if you do either of the following. Form 1040a Pay wages to one or more employees. Form 1040a File pension or excise tax returns. Form 1040a If you must have an EIN, include it along with your SSN on your Schedule C or C-EZ. Form 1040a You can apply for an EIN: Online by clicking on the Employer ID Numbers (EINs) link at www. Form 1040a irs. Form 1040a gov/businesses/small. Form 1040a The EIN is issued immediately once the application information is validated. Form 1040a By telephone at 1-800-829-4933. Form 1040a By mailing or faxing Form SS-4, Application for Employer Identification Number. Form 1040a New EIN. Form 1040a You may need to get a new EIN if either the form or the ownership of your business changes. Form 1040a For more information, see Publication 1635, Understanding Your EIN. Form 1040a When you need identification numbers of other persons. Form 1040a In operating your business, you will probably make certain payments you must report on information returns. Form 1040a These payments are discussed under Information Returns, later in this chapter. Form 1040a You must give the recipient of these payments (the payee) a statement showing the total amount paid during the year. Form 1040a You must include the payee's identification number and your identification number on the returns and statements. Form 1040a Employee. Form 1040a If you have employees, you must get an SSN from each of them. Form 1040a Record the name and SSN of each employee exactly as they are shown on the employee's social security card. Form 1040a If the employee's name is not correct as shown on the card, the employee should request a new card from the SSA. Form 1040a This may occur if the employee's name was changed due to marriage or divorce. Form 1040a Form W-4, Employee's Withholding Allowance Certificate, is completed by each employee so the correct federal income tax can be withheld from their pay. Form 1040a If your employee does not have an SSN, he or she should file Form SS-5 with the SSA. Form 1040a Other payee. Form 1040a If you make payments to someone who is not your employee and you must report the payments on an information return, get that person's SSN. Form 1040a If you must report payments to an organization, such as a corporation or partnership, you must get its EIN. Form 1040a To get the payee's SSN or EIN, use Form W-9, Request for Taxpayer Identification Number and Certification. Form 1040a A payee who does not provide you with an identification number may be subject to backup withholding. Form 1040a For information on backup withholding, see the Form W-9 instructions and the General Instructions for Certain Information Returns. Form 1040a Income Tax This part explains whether you have to file an income tax return and when you file it. Form 1040a It also explains how you pay the tax. Form 1040a Do I Have To File an Income Tax Return? You have to file an income tax return for 2013 if your net earnings from self-employment were $400 or more. Form 1040a If your net earnings from self-employment were less than $400, you still have to file an income tax return if you meet any other filing requirement listed in the Form 1040 instructions. Form 1040a How Do I File? File your income tax return on Form 1040 and attach Schedule C or Schedule C-EZ. Form 1040a Enter the net profit or loss from Schedule C or Schedule C-EZ on page 1 of Form 1040. Form 1040a Use Schedule C to figure your net profit or loss from your business. Form 1040a If you operated more than one business as a sole proprietorship, you must attach a separate Schedule C for each business. Form 1040a You can use the simpler Schedule C-EZ if you operated only one business as a sole proprietorship, you did not have a net loss, and you meet the other requirements listed in Part I of the schedule. Form 1040a IRS e-file (Electronic Filing) Please click here for the text description of the image. Form 1040a E-file logo You may be able to file your tax returns electronically using an IRS e-file option. Form 1040a Table 1-1 lists the benefits of IRS e-file. Form 1040a IRS e-file uses automation to replace most of the manual steps needed to process paper returns. Form 1040a As a result, the processing of e-file returns is faster and more accurate than the processing of paper returns. Form 1040a As with a paper return, you are responsible for making sure your return contains accurate information and is filed on time. Form 1040a Using e-file does not affect your chances of an IRS examination of your return. Form 1040a You can file most commonly used business forms using IRS e-file. Form 1040a For more information, visit IRS. Form 1040a gov. Form 1040a Electronic signatures. Form 1040a Paperless filing is easier than you think and it's available to most taxpayers who file electronically—including those first-time filers who were 16 or older at the end of 2013. Form 1040a If you file electronically using tax preparation software or a tax professional, you will participate in the Self-Select PIN (personal identification number) program. Form 1040a If you are married filing jointly, you and your spouse will each need to create a PIN and enter these PINs as your electronic signatures. Form 1040a To create a PIN, you must know your adjusted gross income (AGI) from your originally filed 2012 income tax return (not from an amended return, Form 1040X, or any math error notice from the IRS). Form 1040a You will also need to provide your date of birth (DOB). Form 1040a Make sure your DOB is accurate and matches the information on record with the Social Security Administration before you e-file. Form 1040a To do this, check your annual Social Security Statement. Form 1040a With a Self-Select PIN, there is nothing to sign and nothing to mail—not even your Forms W-2. Form 1040a For more details on the Self-Select PIN program, visit IRS. Form 1040a gov. Form 1040a State returns. Form 1040a In most states, you can file an electronic state return simultaneously with your federal return. Form 1040a For more information, check with your local IRS office, state tax agency, tax professional, or IRS. Form 1040a gov. Form 1040a Refunds. Form 1040a You can have your refund check mailed to you, or you can have your refund deposited directly to your checking or savings account. Form 1040a With e-file, your refund will be issued in half the time as when filing on paper. Form 1040a Most refunds are issued within 3 weeks. Form 1040a If you choose Direct Deposit, you can receive your refund in as few as 10 days. Form 1040a Offset against debts. Form 1040a As with a paper return, you may not get all of your refund if you owe certain past-due amounts, such as federal tax, state tax, a student loan, or child support. Form 1040a You will be notified if the refund you claimed has been offset against your debts. Form 1040a Refund inquiries. Form 1040a You can check the status of your refund if it has been at least 24 hours (4 weeks if you mailed a paper return) from the date you filed your return. Form 1040a Be sure to have a copy of your tax return available because you will need to know the filing status, the first social security number shown on the return, and the exact whole-dollar amount of the refund. Form 1040a To check on your refund, do one of the following. Form 1040a Go to IRS. Form 1040a gov and click on Where's My Refund. Form 1040a Call 1-800-829-4477 for automated refund information, and follow the recorded instructions. Form 1040a Call 1-800-829-1954 during the hours shown in your form instructions. Form 1040a Balance due. Form 1040a If you owe tax, you must pay it by April 15, 2014, to avoid late-payment penalties and interest. Form 1040a You can make your payment electronically by scheduling an electronic funds withdrawal from your checking or savings account or by credit card. Form 1040a Using an Authorized IRS e-file Provider Many tax professionals can electronically file paperless returns for their clients. Form 1040a You have two options. Form 1040a You can prepare your return, take it to an authorized IRS e-file provider, and have the provider transmit it electronically to the IRS. Form 1040a You can have an authorized IRS e-file provider prepare your return and transmit it for you electronically. Form 1040a You will be asked to complete Form 8879, IRS e-file Signature Authorization, to authorize the provider to enter your self-selected PIN on your return. Form 1040a Depending on the provider and the specific services requested, a fee may be charged. Form 1040a To find an authorized IRS e-file provider near you, go to IRS. Form 1040a gov or look for an “Authorized IRS e-file Provider” sign. Form 1040a Using Your Personal Computer A computer with Internet access is all you need to file your tax return using IRS e-file. Form 1040a When you use your personal computer, you can e-file your return from your home any time of the day or night. Form 1040a Sign your return electronically using a self-selected PIN to complete the process. Form 1040a There is no signature form to submit or Forms W-2 to send in. Form 1040a Free Internet filing options. Form 1040a More taxpayers can now prepare and e-file their individual income tax returns free using commercial tax preparation software accessible through IRS. Form 1040a gov or www. Form 1040a usa. Form 1040a gov. Form 1040a The IRS is partnering with the tax software industry to offer free preparation and filing services to a significant number of taxpayers. Form 1040a Security and privacy certificate programs will assure tax data is safe and secure. Form 1040a To see if you qualify for these services, visit the Return Preparation and Filing Options page at IRS. Form 1040a gov. Form 1040a If you cannot use the free services, you can buy tax preparation software at various electronics stores or computer and office supply stores. Form 1040a You can also download software from the Internet or prepare and file your return completely online by using tax preparation software available on the Internet. Form 1040a Filing Through Employers and Financial Institutions Some businesses offer free e-file to their employees, members, or customers. Form 1040a Others offer it for a fee. Form 1040a Ask your employer or financial institution if they offer IRS e-file as an employee, member, or customer benefit. Form 1040a Free Help With Your Return Free help in preparing your return is available nationwide from IRS-trained volunteers. Form 1040a The Volunteer Income Tax Assistance (VITA) program is designed to help low-income taxpayers, and the Tax Counseling for the Elderly (TCE) program is designed to assist taxpayers age 60 or older with their tax returns. Form 1040a Some locations offer free electronic filing. Form 1040a Table 1-1. Form 1040a Benefits of IRS e-file Accuracy • Your chance of getting an error notice from the IRS is significantly reduced. Form 1040a Security • Your privacy and security are assured. Form 1040a Electronic signatures • Create your own personal identification number (PIN) and file a completely paperless return through your tax preparation software or tax professional. Form 1040a There is nothing to mail. Form 1040a Proof of acceptance • You receive an electronic acknowledgment within 48 hours that the IRS has accepted your return for processing. Form 1040a Fast refunds • You get your refund faster with Direct Deposit—in as few as 10 days. Form 1040a Free Internet filing options • Use IRS. Form 1040a gov to access commercial tax preparation and e-file services available at no cost to eligible taxpayers. Form 1040a Electronic payment options • Convenient, safe, and secure electronic payment options are available. Form 1040a E-file and pay your taxes in a single step. Form 1040a Schedule an electronic funds withdrawal from your checking or savings account (up to and including April 15, 2014) or pay by credit card. Form 1040a Federal/State filing • Prepare and file your federal and state tax returns together and double the benefits you get from e-file. Form 1040a When Is My Tax Return Due? Form 1040 for calendar year 2013 is due by April 15, 2014. Form 1040a If you use a fiscal year (explained in chapter 2), your return is due by the 15th day of the 4th month after the end of your fiscal year. Form 1040a If you file late, you may have to pay penalties and interest. Form 1040a If you cannot file your return on time, use Form 4868, Application for Automatic Extension of Time To File U. Form 1040a S. Form 1040a Individual Income Tax Return, to request an automatic 6-month extension. Form 1040a For calendar year taxpayers, this will extend the tax filing due date until October 15. Form 1040a Filing an extension does not extend the time to pay your taxes, only the time to file the tax return. Form 1040a How Do I Pay Income Tax? Federal income tax is a pay-as-you-go tax. Form 1040a You must pay it as you earn or receive income during the year. Form 1040a An employee usually has income tax withheld from his or her pay. Form 1040a If you do not pay your tax through withholding, or do not pay enough tax that way, you might have to pay estimated tax. Form 1040a You generally have to make estimated tax payments if you expect to owe taxes, including self-employment tax (discussed later), of $1,000 or more when you file your return. Form 1040a Use Form 1040-ES to figure and pay the tax. Form 1040a If you do not have to make estimated tax payments, you can pay any tax due when you file your return. Form 1040a For more information on estimated tax, see Publication 505, Tax Withholding and Estimated Tax. Form 1040a What are my payment options? You can pay your estimated tax electronically using various options. Form 1040a If you pay electronically, there is no need to mail in Form 1040-ES payment vouchers. Form 1040a These options include: Paying electronically through the Electronic Federal Tax Payment System (EFTPS). Form 1040a Paying by authorizing an electronic funds withdrawal when you file Form 1040 electronically. Form 1040a Paying by credit or debit card over the phone or by Internet. Form 1040a Other options include crediting an overpayment from your 2013 return to your 2014 estimated tax, or mailing a check or money order with a Form 1040-ES payment voucher. Form 1040a EFTPS To enroll in EFTPS, go to www. Form 1040a eftps. Form 1040a gov or call 1-800-555-4477. Form 1040a When you request a new EIN and you will have a tax obligation, you are automatically enrolled in EFTPS. Form 1040a Benefits of EFTPS: The chance of an error in making your payments is reduced. Form 1040a You receive immediate confirmation of every transaction. Form 1040a Penalty for underpayment of tax. Form 1040a If you did not pay enough income tax and self-employment tax for 2013 by withholding or by making estimated tax payments, you may have to pay a penalty on the amount not paid. Form 1040a The IRS will figure the penalty for you and send you a bill. Form 1040a Or you can use Form 2210, Underpayment of Estimated Tax by Individuals, Estates, and Trusts, to see if you have to pay a penalty and to figure the penalty amount. Form 1040a For more information, see Publication 505. Form 1040a Self-Employment (SE) Tax Self-employment tax (SE tax) is a social security and Medicare tax primarily for individuals who work for themselves. Form 1040a It is similar to the social security and Medicare taxes withheld from the pay of most wage earners. Form 1040a If you earned income as a statutory employee, you do not pay SE tax on that income. Form 1040a Social security coverage. Form 1040a Social security benefits are available to self-employed persons just as they are to wage earners. Form 1040a Your payments of SE tax contribute to your coverage under the social security system. Form 1040a Social security coverage provides you with retirement benefits, disability benefits, survivor benefits, and hospital insurance (Medicare) benefits. Form 1040a By not reporting all of your self-employment income, you could cause your social security benefits to be lower when you retire. Form 1040a How to become insured under social security. Form 1040a You must be insured under the social security system before you begin receiving social security benefits. Form 1040a You are insured if you have the required number of credits (also called quarters of coverage), discussed next. Form 1040a Earning credits in 2013 and 2014. Form 1040a For 2013, you received one credit, up to a maximum of four credits, for each $1,160 ($1,200 for 2014) of income subject to social security taxes. Form 1040a Therefore, for 2013, if you had income (self-employment and wages) of $4,640 that was subject to social security taxes, you receive four credits ($4,640 ÷ $1,160). Form 1040a For an explanation of the number of credits you must have to be insured and the benefits available to you and your family under the social security program, consult your nearest Social Security Administration (SSA) office. Form 1040a Making false statements to get or to increase social security benefits may subject you to penalties. Form 1040a The Social Security Administration (SSA) time limit for posting self-employment income. Form 1040a Generally, the SSA will give you credit only for self-employment income reported on a tax return filed within 3 years, 3 months, and 15 days after the tax year you earned the income. Form 1040a If you file your tax return or report a change in your self-employment income after this time limit, the SSA may change its records, but only to remove or reduce the amount. Form 1040a The SSA will not change its records to increase your self-employment income. Form 1040a Who must pay self-employment tax. Form 1040a You must pay SE tax and file Schedule SE (Form 1040) if either of the following applies. Form 1040a Your net earnings from self-employment (excluding church employee income) were $400 or more. Form 1040a You had church employee income of $108. Form 1040a 28 or more. Form 1040a The SE tax rules apply no matter how old you are and even if you are already receiving social security or Medicare benefits. Form 1040a SE tax rate. Form 1040a For 2013, the SE tax rate on net earnings is 15. Form 1040a 3% (12. Form 1040a 4% social security tax plus 2. Form 1040a 9% Medicare tax). Form 1040a Maximum earnings subject to SE tax. Form 1040a Only the first $113,700 of your combined wages, tips, and net earnings in 2013 is subject to any combination of the 12. Form 1040a 4% social security part of SE tax, social security tax, or railroad retirement (tier 1) tax. Form 1040a All your combined wages, tips, and net earnings in 2013 are subject to any combination of the 2. Form 1040a 9% Medicare part of SE tax, social security tax, or railroad retirement (tier 1) tax. Form 1040a If wages and tips you receive as an employee are subject to either social security or railroad retirement (tier 1) tax, or both, and total at least $113,700, do not pay the 12. Form 1040a 4% social security part of the SE tax on any of your net earnings. Form 1040a However, you must pay the 2. Form 1040a 9% Medicare part of the SE tax on all your net earnings. Form 1040a Deduct one-half of your SE tax as an adjustment to income on line 27 of Form 1040. Form 1040a More information. Form 1040a For information on methods of calculating SE tax, see Chapter 10, Self-Employment Tax. Form 1040a Table 1-2. Form 1040a Which Forms Must I File? IF you are liable for: THEN use Form: DUE by:1 Income tax 1040 and Schedule C or C-EZ2 15th day of 4th month after end of tax year. Form 1040a Self-employment tax Schedule SE File with Form 1040. Form 1040a Estimated tax 1040-ES 15th day of 4th, 6th, and 9th months of tax year, and 15th day of 1st month after the end of tax year. Form 1040a Social security and Medicare taxes and income tax withholding 941 or 944 April 30, July 31, October 31, and January 313. Form 1040a See Publication 15. Form 1040a Providing information on social security and Medicare taxes and income tax withholding W-2 (to employee) W-2 and W-3 (to the Social Security Administration) January 313. Form 1040a Last day of February (March 31 if filing electronically)3. Form 1040a Federal unemployment (FUTA) tax 940 January 313. Form 1040a April 30, July 31, October 31, and January 31, but only if the liability for unpaid tax is more than $500. Form 1040a Filing information returns for payments to nonemployees and transactions with other persons See Information Returns Forms 1099 – to the recipient by January 31 and to the IRS by February 28 (March 31 if filing electronically). Form 1040a Other forms – see the General Instructions for Certain Information Returns. Form 1040a Excise tax See Excise Taxes See the instructions to the forms. Form 1040a 1 If a due date falls on a Saturday, Sunday, or legal holiday, file by the next day that is not a Saturday, Sunday, or legal holiday. Form 1040a For more information, see Publication 509, Tax Calendars. Form 1040a 2 File a separate schedule for each business. Form 1040a 3 See the form instructions if you go out of business, change the form of your business, or stop paying wages. Form 1040a Employment Taxes If you have employees, you will need to file forms to report employment taxes. Form 1040a Employment taxes include the following items. Form 1040a Social security and Medicare taxes. Form 1040a Federal income tax withholding. Form 1040a Federal unemployment (FUTA) tax. Form 1040a For more information, see Publication 15 (Circular E), Employer's Tax Guide. Form 1040a That publication explains your tax responsibilities as an employer. Form 1040a To help you determine whether the people working for you are your employees, see Publication 15-A, Employer's Supplemental Tax Guide. Form 1040a That publication has information to help you determine whether an individual is an independent contractor or an employee. Form 1040a If you incorrectly classify an employee as an independent contractor, you may be held liable for employment taxes for that worker plus a penalty. Form 1040a An independent contractor is someone who is self-employed. Form 1040a You do not generally have to withhold or pay any taxes on payments made to an independent contractor. Form 1040a Excise Taxes This section identifies some of the excise taxes you may have to pay and the forms you have to file if you do any of the following. Form 1040a Manufacture or sell certain products. Form 1040a Operate certain kinds of businesses. Form 1040a Use various kinds of equipment, facilities, or products. Form 1040a Receive payment for certain services. Form 1040a For more information on excise taxes, see Publication 510, Excise Taxes. Form 1040a Form 720. Form 1040a The federal excise taxes reported on Form 720, Quarterly Federal Excise Tax Return, consist of several broad categories of taxes, including the following. Form 1040a Environmental taxes on the sale or use of ozone-depleting chemicals and imported products containing or manufactured with these chemicals. Form 1040a Communications and air transportation taxes. Form 1040a Fuel taxes. Form 1040a Tax on the first retail sale of heavy trucks, trailers, and tractors. Form 1040a Manufacturers taxes on the sale or use of a variety of different articles. Form 1040a Tax on indoor tanning services. Form 1040a Form 2290. Form 1040a There is a federal excise tax on the use of certain trucks, truck tractors, and buses on public highways. Form 1040a The tax applies to vehicles having a taxable gross weight of 55,000 pounds or more. Form 1040a Report the tax on Form 2290, Heavy Highway Vehicle Use Tax Return. Form 1040a For more information, see the Instructions for Form 2290. Form 1040a Depositing excise taxes. Form 1040a If you have to file a quarterly excise tax return on Form 720, you may have to deposit your excise taxes before the return is due. Form 1040a For details on depositing excise taxes, see the Instructions for Form 720. Form 1040a Information Returns If you make or receive payments in your business, you may have to report them to the IRS on information returns. Form 1040a The IRS compares the payments shown on the information returns with each person's income tax return to see if the payments were included in income. Form 1040a You must give a copy of each information return you are required to file to the recipient or payer. Form 1040a In addition to the forms described below, you may have to use other returns to report certain kinds of payments or transactions. Form 1040a For more details on information returns and when you have to file them, see the General Instructions for Certain Information Returns. Form 1040a Form 1099-MISC. Form 1040a Use Form 1099-MISC, Miscellaneous Income, to report certain payments you make in your business. Form 1040a These payments include the following items. Form 1040a Payments of $600 or more for services performed for your business by people not treated as your employees, such as fees to subcontractors, attorneys, accountants, or directors. Form 1040a Rent payments of $600 or more, other than rents paid to real estate agents. Form 1040a Prizes and awards of $600 or more that are not for services, such as winnings on TV or radio shows. Form 1040a Royalty payments of $10 or more. Form 1040a Payments to certain crew members by operators of fishing boats. Form 1040a You also use Form 1099-MISC to report your sales of $5,000 or more of consumer goods to a person for resale anywhere other than in a permanent retail establishment. Form 1040a Form W-2. Form 1040a You must file Form W-2, Wage and Tax Statement, to report payments to your employees, such as wages, tips, and other compensation, withheld income, social security, and Medicare taxes. Form 1040a You can file Form W-2 online. Form 1040a For more information about Form W-2, see the General Instructions for Forms W-2 and W-3. Form 1040a Penalties. Form 1040a The law provides for the following penalties if you do not file Form 1099-MISC or Form W-2 or do not correctly report the information. Form 1040a For more information, see the General Instructions for Certain Information Returns. Form 1040a Failure to file information returns. Form 1040a This penalty applies if you do not file information returns by the due date, do not include all required information, or report incorrect information. Form 1040a Failure to furnish correct payee statements. Form 1040a This penalty applies if you do not furnish a required statement to a payee by the required date, do not include all required information, or report incorrect information. Form 1040a Waiver of penalties. Form 1040a These penalties will not apply if you can show that the failure was due to reasonable cause and not willful neglect. Form 1040a In addition, there is no penalty for failure to include all required information, or for including incorrect information, on a de minimis (small) number of information returns if you correct the errors by August 1 of the year the returns are due. Form 1040a (A de minimis number of returns is the greater of 10 or ½ of 1% of the total number of returns you are required to file for the year. Form 1040a ) Form 8300. Form 1040a You must file Form 8300, Report of Cash Payments Over $10,000 Received in a Trade or Business, if you receive more than $10,000 in cash in one transaction, or two or more related business transactions. Form 1040a Cash includes U. Form 1040a S. Form 1040a and foreign coin and currency. Form 1040a It also includes certain monetary instruments such as cashier's and traveler's checks and money orders. Form 1040a Cash does not include a check drawn on an individual's personal account (personal check). Form 1040a For more information, see Publication 1544, Reporting Cash Payments of Over $10,000 (Received in a Trade or Business). Form 1040a Penalties. Form 1040a There are civil and criminal penalties, including up to 5 years in prison, for not filing Form 8300, filing (or causing the filing of) a false or fraudulent Form 8300, or structuring a transaction to evade reporting requirements. Form 1040a Table 1-3. Form 1040a Going Out of Business Checklists (Note. Form 1040a The following checklists highlight the typical final forms and schedules you may need to file if you ever go out of business. Form 1040a For more information, see the instructions for the listed forms. Form 1040a ) IF you are liable for: THEN you may need to: Income tax □ File Schedule C or C-EZ with your Form 1040 for the year in which you go out of business. Form 1040a □ File Form 4797 with your Form 1040 for each year in which you sell or exchange property used in your business or in which the business use of certain section 179 or listed property drops to 50% or less. Form 1040a □ File Form 8594 with your Form 1040 if you sold your business. Form 1040a Self-employment tax □ File Schedule SE with your Form 1040 for the year in which you go out of business. Form 1040a Employment taxes □ File Form 941 (or Form 944) for the calendar quarter in which you make final wage payments. Form 1040a Note. Form 1040a Do not forget to check the box and enter the date final wages were paid on line 15 of Form 941 or line 14 of Form 944. Form 1040a □ File Form 940 for the calendar year in which final wages were paid. Form 1040a Note. Form 1040a Do not forget to check box d, Final: Business closed or stopped paying wages, under Type of Return. Form 1040a Information returns □ Provide Forms W-2 to your employees for the calendar year in which you make final wage payments. Form 1040a Note. Form 1040a These forms are generally due by the due date of your final Form 941 or Form 944. Form 1040a □ File Form W-3 to file Forms W-2. Form 1040a Note. Form 1040a These forms are generally due within 1 month after the due date of your final Form 941 or Form 944. Form 1040a □ Provide Forms 1099-MISC to each person to whom you have paid at least $600 for services (including parts and materials) during the calendar year in which you go out of business. Form 1040a □ File Form 1096 to file Forms 1099-MISC. Form 1040a Prev Up Next Home More Online Publications