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Free Federal Tax Filing For 2011

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Free Federal Tax Filing For 2011

Free federal tax filing for 2011 18. Free federal tax filing for 2011   Alimony Table of Contents IntroductionSpouse or former spouse. Free federal tax filing for 2011 Divorce or separation instrument. Free federal tax filing for 2011 Useful Items - You may want to see: General RulesMortgage payments. Free federal tax filing for 2011 Taxes and insurance. Free federal tax filing for 2011 Other payments to a third party. Free federal tax filing for 2011 Instruments Executed After 1984Payments to a third party. Free federal tax filing for 2011 Exception. Free federal tax filing for 2011 Substitute payments. Free federal tax filing for 2011 Specifically designated as child support. Free federal tax filing for 2011 Contingency relating to your child. Free federal tax filing for 2011 Clearly associated with a contingency. Free federal tax filing for 2011 How To Deduct Alimony Paid How To Report Alimony Received Recapture Rule Introduction This chapter discusses the rules that apply if you pay or receive alimony. Free federal tax filing for 2011 It covers the following topics. Free federal tax filing for 2011 What payments are alimony. Free federal tax filing for 2011 What payments are not alimony, such as child support. Free federal tax filing for 2011 How to deduct alimony you paid. Free federal tax filing for 2011 How to report alimony you received as income. Free federal tax filing for 2011 Whether you must recapture the tax benefits of alimony. Free federal tax filing for 2011 Recapture means adding back in your income all or part of a deduction you took in a prior year. Free federal tax filing for 2011 Alimony is a payment to or for a spouse or former spouse under a divorce or separation instrument. Free federal tax filing for 2011 It does not include voluntary payments that are not made under a divorce or separation instrument. Free federal tax filing for 2011 Alimony is deductible by the payer and must be included in the spouse's or former spouse's income. Free federal tax filing for 2011 Although this chapter is generally written for the payer of the alimony, the recipient can use the information to determine whether an amount received is alimony. Free federal tax filing for 2011 To be alimony, a payment must meet certain requirements. Free federal tax filing for 2011 Different requirements generally apply to payments under instruments executed after 1984 and to payments under instruments executed before 1985. Free federal tax filing for 2011 This chapter discusses the rules for payments under instruments executed after 1984. Free federal tax filing for 2011 If you need the rules for payments under pre-1985 instruments, get and keep a copy of the 2004 version of Publication 504. Free federal tax filing for 2011 That was the last year the information on pre-1985 instruments was included in Publication 504. Free federal tax filing for 2011 Use Table 18-1 in this chapter as a guide to determine whether certain payments are considered alimony. Free federal tax filing for 2011 Definitions. Free federal tax filing for 2011   The following definitions apply throughout this chapter. Free federal tax filing for 2011 Spouse or former spouse. Free federal tax filing for 2011   Unless otherwise stated, the term “spouse” includes former spouse. Free federal tax filing for 2011 Divorce or separation instrument. Free federal tax filing for 2011   The term “divorce or separation instrument” means: A decree of divorce or separate maintenance or a written instrument incident to that decree, A written separation agreement, or A decree or any type of court order requiring a spouse to make payments for the support or maintenance of the other spouse. Free federal tax filing for 2011 This includes a temporary decree, an interlocutory (not final) decree, and a decree of alimony pendente lite (while awaiting action on the final decree or agreement). Free federal tax filing for 2011 Useful Items - You may want to see: Publication 504 Divorced or Separated Individuals General Rules The following rules apply to alimony regardless of when the divorce or separation instrument was executed. Free federal tax filing for 2011 Payments not alimony. Free federal tax filing for 2011   Not all payments under a divorce or separation instrument are alimony. Free federal tax filing for 2011 Alimony does not include: Child support, Noncash property settlements, Payments that are your spouse's part of community income, as explained under Community Property in Publication 504, Payments to keep up the payer's property, or Use of the payer's property. Free federal tax filing for 2011 Payments to a third party. Free federal tax filing for 2011   Cash payments, checks, or money orders to a third party on behalf of your spouse under the terms of your divorce or separation instrument can be alimony, if they otherwise qualify. Free federal tax filing for 2011 These include payments for your spouse's medical expenses, housing costs (rent, utilities, etc. Free federal tax filing for 2011 ), taxes, tuition, etc. Free federal tax filing for 2011 The payments are treated as received by your spouse and then paid to the third party. Free federal tax filing for 2011 Life insurance premiums. Free federal tax filing for 2011   Alimony includes premiums you must pay under your divorce or separation instrument for insurance on your life to the extent your spouse owns the policy. Free federal tax filing for 2011 Payments for jointly-owned home. Free federal tax filing for 2011   If your divorce or separation instrument states that you must pay expenses for a home owned by you and your spouse, some of your payments may be alimony. Free federal tax filing for 2011 Mortgage payments. Free federal tax filing for 2011   If you must pay all the mortgage payments (principal and interest) on a jointly-owned home, and they otherwise qualify as alimony, you can deduct one-half of the total payments as alimony. Free federal tax filing for 2011 If you itemize deductions and the home is a qualified home, you can claim one-half of the interest in figuring your deductible interest. Free federal tax filing for 2011 Your spouse must report one-half of the payments as alimony received. Free federal tax filing for 2011 If your spouse itemizes deductions and the home is a qualified home, he or she can claim one-half of the interest on the mortgage in figuring deductible interest. Free federal tax filing for 2011 Taxes and insurance. Free federal tax filing for 2011   If you must pay all the real estate taxes or insurance on a home held as tenants in common, you can deduct one-half of these payments as alimony. Free federal tax filing for 2011 Your spouse must report one-half of these payments as alimony received. Free federal tax filing for 2011 If you and your spouse itemize deductions, you can each claim one-half of the real estate taxes and none of the home insurance. Free federal tax filing for 2011    If your home is held as tenants by the entirety or joint tenants, none of your payments for taxes or insurance are alimony. Free federal tax filing for 2011 But if you itemize deductions, you can claim all of the real estate taxes and none of the home insurance. Free federal tax filing for 2011 Other payments to a third party. Free federal tax filing for 2011   If you made other third-party payments, see Publication 504 to see whether any part of the payments qualifies as alimony. Free federal tax filing for 2011 Instruments Executed After 1984 The following rules for alimony apply to payments under divorce or separation instruments executed after 1984. Free federal tax filing for 2011 Exception for instruments executed before 1985. Free federal tax filing for 2011   There are two situations where the rules for instruments executed after 1984 apply to instruments executed before 1985. Free federal tax filing for 2011 A divorce or separation instrument executed before 1985 and then modified after 1984 to specify that the after-1984 rules will apply. Free federal tax filing for 2011 A temporary divorce or separation instrument executed before 1985 and incorporated into, or adopted by, a final decree executed after 1984 that: Changes the amount or period of payment, or Adds or deletes any contingency or condition. Free federal tax filing for 2011   For the rules for alimony payments under pre-1985 instruments not meeting these exceptions, get the 2004 version of Publication 504 at www. Free federal tax filing for 2011 irs. Free federal tax filing for 2011 gov/pub504. Free federal tax filing for 2011 Example 1. Free federal tax filing for 2011 In November 1984, you and your former spouse executed a written separation agreement. Free federal tax filing for 2011 In February 1985, a decree of divorce was substituted for the written separation agreement. Free federal tax filing for 2011 The decree of divorce did not change the terms for the alimony you pay your former spouse. Free federal tax filing for 2011 The decree of divorce is treated as executed before 1985. Free federal tax filing for 2011 Alimony payments under this decree are not subject to the rules for payments under instruments executed after 1984. Free federal tax filing for 2011 Example 2. Free federal tax filing for 2011 Assume the same facts as in Example 1 except that the decree of divorce changed the amount of the alimony. Free federal tax filing for 2011 In this example, the decree of divorce is not treated as executed before 1985. Free federal tax filing for 2011 The alimony payments are subject to the rules for payments under instruments executed after 1984. Free federal tax filing for 2011 Alimony requirements. Free federal tax filing for 2011   A payment to or for a spouse under a divorce or separation instrument is alimony if the spouses do not file a joint return with each other and all the following requirements are met. Free federal tax filing for 2011 The payment is in cash. Free federal tax filing for 2011 The instrument does not designate the payment as not alimony. Free federal tax filing for 2011 Spouses legally separated under a decree of divorce or separate maintenance are not members of the same household. Free federal tax filing for 2011 There is no liability to make any payment (in cash or property) after the death of the recipient spouse. Free federal tax filing for 2011 The payment is not treated as child support. Free federal tax filing for 2011 Each of these requirements is discussed below. Free federal tax filing for 2011 Cash payment requirement. Free federal tax filing for 2011   Only cash payments, including checks and money orders, qualify as alimony. Free federal tax filing for 2011 The following do not qualify as alimony. Free federal tax filing for 2011 Transfers of services or property (including a debt instrument of a third party or an annuity contract). Free federal tax filing for 2011 Execution of a debt instrument by the payer. Free federal tax filing for 2011 The use of the payer's property. Free federal tax filing for 2011 Payments to a third party. Free federal tax filing for 2011   Cash payments to a third party under the terms of your divorce or separation instrument can qualify as cash payments to your spouse. Free federal tax filing for 2011 See Payments to a third party under General Rules, earlier. Free federal tax filing for 2011   Also, cash payments made to a third party at the written request of your spouse may qualify as alimony if all the following requirements are met. Free federal tax filing for 2011 The payments are in lieu of payments of alimony directly to your spouse. Free federal tax filing for 2011 The written request states that both spouses intend the payments to be treated as alimony. Free federal tax filing for 2011 You receive the written request from your spouse before you file your return for the year you made the payments. Free federal tax filing for 2011 Payments designated as not alimony. Free federal tax filing for 2011   You and your spouse can designate that otherwise qualifying payments are not alimony. Free federal tax filing for 2011 You do this by including a provision in your divorce or separation instrument that states the payments are not deductible as alimony by you and are excludable from your spouse's income. Free federal tax filing for 2011 For this purpose, any instrument (written statement) signed by both of you that makes this designation and that refers to a previous written separation agreement is treated as a written separation agreement (and therefore a divorce or separation instrument). Free federal tax filing for 2011 If you are subject to temporary support orders, the designation must be made in the original or a later temporary support order. Free federal tax filing for 2011   Your spouse can exclude the payments from income only if he or she attaches a copy of the instrument designating them as not alimony to his or her return. Free federal tax filing for 2011 The copy must be attached each year the designation applies. Free federal tax filing for 2011 Spouses cannot be members of the same household. Free federal tax filing for 2011    Payments to your spouse while you are members of the same household are not alimony if you are legally separated under a decree of divorce or separate maintenance. Free federal tax filing for 2011 A home you formerly shared is considered one household, even if you physically separate yourselves in the home. Free federal tax filing for 2011   You are not treated as members of the same household if one of you is preparing to leave the household and does leave no later than 1 month after the date of the payment. Free federal tax filing for 2011 Exception. Free federal tax filing for 2011   If you are not legally separated under a decree of divorce or separate maintenance, a payment under a written separation agreement, support decree, or other court order may qualify as alimony even if you are members of the same household when the payment is made. Free federal tax filing for 2011 Table 18-1. Free federal tax filing for 2011 Alimony Requirements (Instruments Executed After 1984) Payments ARE alimony if all of the following are true: Payments are NOT alimony if any of the following are true: Payments are required by a divorce or separation instrument. Free federal tax filing for 2011 Payments are not required by a divorce or separation instrument. Free federal tax filing for 2011 Payer and recipient spouse do not file a joint return with each other. Free federal tax filing for 2011 Payer and recipient spouse file a joint return with each other. Free federal tax filing for 2011 Payment is in cash (including checks or money orders). Free federal tax filing for 2011 Payment is: Not in cash, A noncash property settlement, Spouse's part of community income, or To keep up the payer's property. Free federal tax filing for 2011 Payment is not designated in the instrument as not alimony. Free federal tax filing for 2011 Payment is designated in the instrument as not alimony. Free federal tax filing for 2011 Spouses legally separated under a decree of divorce or separate maintenance are not members of the same household. Free federal tax filing for 2011 Spouses legally separated under a decree of divorce or separate maintenance are members of the same household. Free federal tax filing for 2011 Payments are not required after death of the recipient spouse. Free federal tax filing for 2011 Payments are required after death of the recipient spouse. Free federal tax filing for 2011 Payment is not treated as child support. Free federal tax filing for 2011 Payment is treated as child support. Free federal tax filing for 2011 These payments are deductible by the payer and includible in income by the recipient. Free federal tax filing for 2011 These payments are neither deductible by the payer nor includible in income by the recipient. Free federal tax filing for 2011 Liability for payments after death of recipient spouse. Free federal tax filing for 2011   If any part of payments you make must continue to be made for any period after your spouse's death, that part of your payments is not alimony, whether made before or after the death. Free federal tax filing for 2011 If all of the payments would continue, then none of the payments made before or after the death are alimony. Free federal tax filing for 2011   The divorce or separation instrument does not have to expressly state that the payments cease upon the death of your spouse if, for example, the liability for continued payments would end under state law. Free federal tax filing for 2011 Example. Free federal tax filing for 2011 You must pay your former spouse $10,000 in cash each year for 10 years. Free federal tax filing for 2011 Your divorce decree states that the payments will end upon your former spouse's death. Free federal tax filing for 2011 You must also pay your former spouse or your former spouse's estate $20,000 in cash each year for 10 years. Free federal tax filing for 2011 The death of your spouse would not terminate these payments under state law. Free federal tax filing for 2011 The $10,000 annual payments may qualify as alimony. Free federal tax filing for 2011 The $20,000 annual payments that do not end upon your former spouse's death are not alimony. Free federal tax filing for 2011 Substitute payments. Free federal tax filing for 2011   If you must make any payments in cash or property after your spouse's death as a substitute for continuing otherwise qualifying payments before the death, the otherwise qualifying payments are not alimony. Free federal tax filing for 2011 To the extent that your payments begin, accelerate, or increase because of the death of your spouse, otherwise qualifying payments you made may be treated as payments that were not alimony. Free federal tax filing for 2011 Whether or not such payments will be treated as not alimony depends on all the facts and circumstances. Free federal tax filing for 2011 Example 1. Free federal tax filing for 2011 Under your divorce decree, you must pay your former spouse $30,000 annually. Free federal tax filing for 2011 The payments will stop at the end of 6 years or upon your former spouse's death, if earlier. Free federal tax filing for 2011 Your former spouse has custody of your minor children. Free federal tax filing for 2011 The decree provides that if any child is still a minor at your spouse's death, you must pay $10,000 annually to a trust until the youngest child reaches the age of majority. Free federal tax filing for 2011 The trust income and corpus (principal) are to be used for your children's benefit. Free federal tax filing for 2011 These facts indicate that the payments to be made after your former spouse's death are a substitute for $10,000 of the $30,000 annual payments. Free federal tax filing for 2011 Of each of the $30,000 annual payments, $10,000 is not alimony. Free federal tax filing for 2011 Example 2. Free federal tax filing for 2011 Under your divorce decree, you must pay your former spouse $30,000 annually. Free federal tax filing for 2011 The payments will stop at the end of 15 years or upon your former spouse's death, if earlier. Free federal tax filing for 2011 The decree provides that if your former spouse dies before the end of the 15-year period, you must pay the estate the difference between $450,000 ($30,000 × 15) and the total amount paid up to that time. Free federal tax filing for 2011 For example, if your spouse dies at the end of the tenth year, you must pay the estate $150,000 ($450,000 − $300,000). Free federal tax filing for 2011 These facts indicate that the lump-sum payment to be made after your former spouse's death is a substitute for the full amount of the $30,000 annual payments. Free federal tax filing for 2011 None of the annual payments are alimony. Free federal tax filing for 2011 The result would be the same if the payment required at death were to be discounted by an appropriate interest factor to account for the prepayment. Free federal tax filing for 2011 Child support. Free federal tax filing for 2011   A payment that is specifically designated as child support or treated as specifically designated as child support under your divorce or separation instrument is not alimony. Free federal tax filing for 2011 The amount of child support may vary over time. Free federal tax filing for 2011 Child support payments are not deductible by the payer and are not taxable to the recipient. Free federal tax filing for 2011 Specifically designated as child support. Free federal tax filing for 2011   A payment will be treated as specifically designated as child support to the extent that the payment is reduced either: On the happening of a contingency relating to your child, or At a time that can be clearly associated with the contingency. Free federal tax filing for 2011 A payment may be treated as specifically designated as child support even if other separate payments are specifically designated as child support. Free federal tax filing for 2011 Contingency relating to your child. Free federal tax filing for 2011   A contingency relates to your child if it depends on any event relating to that child. Free federal tax filing for 2011 It does not matter whether the event is certain or likely to occur. Free federal tax filing for 2011 Events relating to your child include the child's: Becoming employed, Dying, Leaving the household, Leaving school, Marrying, or Reaching a specified age or income level. Free federal tax filing for 2011 Clearly associated with a contingency. Free federal tax filing for 2011   Payments that would otherwise qualify as alimony are presumed to be reduced at a time clearly associated with the happening of a contingency relating to your child only in the following situations. Free federal tax filing for 2011 The payments are to be reduced not more than 6 months before or after the date the child will reach 18, 21, or local age of majority. Free federal tax filing for 2011 The payments are to be reduced on two or more occasions that occur not more than 1 year before or after a different one of your children reaches a certain age from 18 to 24. Free federal tax filing for 2011 This certain age must be the same for each child, but need not be a whole number of years. Free federal tax filing for 2011 In all other situations, reductions in payments are not treated as clearly associated with the happening of a contingency relating to your child. Free federal tax filing for 2011   Either you or the IRS can overcome the presumption in the two situations above. Free federal tax filing for 2011 This is done by showing that the time at which the payments are to be reduced was determined independently of any contingencies relating to your children. Free federal tax filing for 2011 For example, if you can show that the period of alimony payments is customary in the local jurisdiction, such as a period equal to one-half of the duration of the marriage, you can overcome the presumption and may be able to treat the amount as alimony. Free federal tax filing for 2011 How To Deduct Alimony Paid You can deduct alimony you paid, whether or not you itemize deductions on your return. Free federal tax filing for 2011 You must file Form 1040. Free federal tax filing for 2011 You cannot use Form 1040A or Form 1040EZ. Free federal tax filing for 2011 Enter the amount of alimony you paid on Form 1040, line 31a. Free federal tax filing for 2011 In the space provided on line 31b, enter your spouse's social security number (SSN) or individual taxpayer identification number (ITIN). Free federal tax filing for 2011 If you paid alimony to more than one person, enter the SSN or ITIN of one of the recipients. Free federal tax filing for 2011 Show the SSN or ITIN and amount paid to each other recipient on an attached statement. Free federal tax filing for 2011 Enter your total payments on line 31a. Free federal tax filing for 2011 You must provide your spouse's SSN or ITIN. Free federal tax filing for 2011 If you do not, you may have to pay a $50 penalty and your deduction may be disallowed. Free federal tax filing for 2011 For more information on SSNs and ITINs, see Social Security Number (SSN) in chapter 1. Free federal tax filing for 2011 How To Report Alimony Received Report alimony you received as income on Form 1040, line 11. Free federal tax filing for 2011 You cannot use Form 1040A or Form 1040EZ. Free federal tax filing for 2011 You must give the person who paid the alimony your SSN or ITIN. Free federal tax filing for 2011 If you do not, you may have to pay a $50 penalty. Free federal tax filing for 2011 Recapture Rule If your alimony payments decrease or end during the first 3 calendar years, you may be subject to the recapture rule. Free federal tax filing for 2011 If you are subject to this rule, you have to include in income in the third year part of the alimony payments you previously deducted. Free federal tax filing for 2011 Your spouse can deduct in the third year part of the alimony payments he or she previously included in income. Free federal tax filing for 2011 The 3-year period starts with the first calendar year you make a payment qualifying as alimony under a decree of divorce or separate maintenance or a written separation agreement. Free federal tax filing for 2011 Do not include any time in which payments were being made under temporary support orders. Free federal tax filing for 2011 The second and third years are the next 2 calendar years, whether or not payments are made during those years. Free federal tax filing for 2011 The reasons for a reduction or end of alimony payments that can require a recapture include: A change in your divorce or separation instrument, A failure to make timely payments, A reduction in your ability to provide support, or A reduction in your spouse's support needs. Free federal tax filing for 2011 When to apply the recapture rule. Free federal tax filing for 2011   You are subject to the recapture rule in the third year if the alimony you pay in the third year decreases by more than $15,000 from the second year or the alimony you pay in the second and third years decreases significantly from the alimony you pay in the first year. Free federal tax filing for 2011   When you figure a decrease in alimony, do not include the following amounts. Free federal tax filing for 2011 Payments made under a temporary support order. Free federal tax filing for 2011 Payments required over a period of at least 3 calendar years that vary because they are a fixed part of your income from a business or property, or from compensation for employment or self-employment. Free federal tax filing for 2011 Payments that decrease because of the death of either spouse or the remarriage of the spouse receiving the payments before the end of the third year. Free federal tax filing for 2011 Figuring the recapture. Free federal tax filing for 2011   You can use Worksheet 1 in Publication 504 to figure recaptured alimony. Free federal tax filing for 2011 Including the recapture in income. Free federal tax filing for 2011   If you must include a recapture amount in income, show it on Form 1040, line 11 (“Alimony received”). Free federal tax filing for 2011 Cross out “received” and enter “recapture. Free federal tax filing for 2011 ” On the dotted line next to the amount, enter your spouse's last name and SSN or ITIN. Free federal tax filing for 2011 Deducting the recapture. Free federal tax filing for 2011   If you can deduct a recapture amount, show it on Form 1040, line 31a (“Alimony paid”). Free federal tax filing for 2011 Cross out “paid” and enter “recapture. Free federal tax filing for 2011 ” In the space provided, enter your spouse's SSN or ITIN. Free federal tax filing for 2011 Prev  Up  Next   Home   More Online Publications
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The Free Federal Tax Filing For 2011

Free federal tax filing for 2011 7. Free federal tax filing for 2011   Filing Information Table of Contents Introduction Topics - This chapter discusses: Useful Items - You may want to see: What, When, and Where To FileResident Aliens Nonresident Aliens Amended Returns and Claims for Refund Other Forms You May Have To File PenaltiesCivil Penalties Criminal Penalties Introduction This chapter provides the basic filing information that you may need. Free federal tax filing for 2011 Topics - This chapter discusses: Forms aliens must file, When and where to file, Penalties, and Amended returns and claims for refund. Free federal tax filing for 2011 Useful Items - You may want to see: Forms (and Instructions) 1040 U. Free federal tax filing for 2011 S. Free federal tax filing for 2011 Individual Income Tax Return 1040A U. Free federal tax filing for 2011 S. Free federal tax filing for 2011 Individual Income Tax Return 1040EZ Income Tax Return for Single and Joint Filers With No Dependents 1040NR U. Free federal tax filing for 2011 S. Free federal tax filing for 2011 Nonresident Alien Income Tax Return 1040NR-EZ U. Free federal tax filing for 2011 S. Free federal tax filing for 2011 Income Tax Return for Certain Nonresident Aliens With No Dependents See chapter 12 for information about getting these forms. Free federal tax filing for 2011 What, When, and Where To File What return you must file as well as when and where you file that return, depends on your status at the end of the tax year as a resident or a nonresident alien. Free federal tax filing for 2011 Resident Aliens Resident aliens should file Form 1040EZ, 1040A, or 1040 at the address shown in the instructions for that form. Free federal tax filing for 2011 The due date for filing the return and paying any tax due is April 15 of the year following the year for which you are filing a return (but see the Tip, later). Free federal tax filing for 2011 Under U. Free federal tax filing for 2011 S. Free federal tax filing for 2011 immigration law, a lawful permanent resident who is required to file a tax return as a resident and fails to do so may be regarded as having abandoned status and may lose permanent resident status. Free federal tax filing for 2011 Extensions of time to file. Free federal tax filing for 2011   You are allowed an automatic extension to June 15 to file if your main place of business and the home you live in are outside the United States and Puerto Rico on April 15. Free federal tax filing for 2011 You can get an extension of time to October 15 to file your return if you get an extension by April 15 (June 15 if you qualify for the June 15 extension). Free federal tax filing for 2011 Use Form 4868 to get the extension to October 15. Free federal tax filing for 2011 In addition to this 6-month extension, taxpayers who are out of the country (as defined in the Form 4868 instructions) can request a discretionary 2-month additional extension of time to file their returns (to December 15 for calendar year taxpayers). Free federal tax filing for 2011 To request this extension, you must send the IRS a letter explaining the reasons why you need the additional 2 months. Free federal tax filing for 2011 Send the letter by the extended due date (October 15 for calendar year taxpayers) to the following address:  Department of the Treasury Internal Revenue Service Center Austin, TX 73301-0215   You will not receive any notification from the IRS unless your request is denied for being untimely. Free federal tax filing for 2011   The discretionary 2-month additional extension is not available to taxpayers who have an approved extension of time to file on Form 2350 (for U. Free federal tax filing for 2011 S. Free federal tax filing for 2011 citizens and resident aliens abroad who expect to qualify for special tax treatment). Free federal tax filing for 2011    If the due date for filing falls on a Saturday, Sunday, or legal holiday, the due date is the next day which is not a Saturday, Sunday, or legal holiday. Free federal tax filing for 2011 You may be able to file your return electronically. Free federal tax filing for 2011 See IRS e-file in your form instructions. Free federal tax filing for 2011 Nonresident Aliens Nonresident aliens who are required to file an income tax return should use Form 1040NR or, if qualified, Form 1040NR-EZ. Free federal tax filing for 2011 If you are any of the following, you must file a return. Free federal tax filing for 2011 A nonresident alien individual engaged or considered to be engaged in a trade or business in the United States during 2013. Free federal tax filing for 2011 (But see Exceptions , later. Free federal tax filing for 2011 ) You must file even if: Your income did not come from a trade or business conducted in the United States, You have no income from U. Free federal tax filing for 2011 S. Free federal tax filing for 2011 sources, or Your income is exempt from income tax. Free federal tax filing for 2011 A nonresident alien individual not engaged in a trade or business in the United States with U. Free federal tax filing for 2011 S. Free federal tax filing for 2011 income on which the tax liability was not satisfied by the withholding of tax at the source. Free federal tax filing for 2011 A representative or agent responsible for filing the return of an individual described in (1) or (2). Free federal tax filing for 2011 A fiduciary for a nonresident alien estate or trust. Free federal tax filing for 2011 You must also file if you want to: Claim a refund of overwithheld or overpaid tax, or Claim the benefit of any deductions or credits. Free federal tax filing for 2011 For example, if you have no U. Free federal tax filing for 2011 S. Free federal tax filing for 2011 business activities but have income from real property that you choose to treat as effectively connected income (discussed in chapter 4), you must timely file a true and accurate return to take any allowable deductions against that income. Free federal tax filing for 2011 For information on what is timely, see When to file for deductions and credits under When To File, later. Free federal tax filing for 2011 Exceptions. Free federal tax filing for 2011   You do not need to file Form 1040NR or Form 1040NR-EZ if you meet either of the following conditions. Free federal tax filing for 2011 Your only U. Free federal tax filing for 2011 S. Free federal tax filing for 2011 trade or business was the performance of personal services, and Your wages were less than $3,900, and You have no other need to file a return to claim a refund of overwithheld taxes, to satisfy additional withholding at source, or to claim income exempt or partly exempt by treaty. Free federal tax filing for 2011 You were a nonresident alien student, teacher, or trainee who was temporarily present in the United States under an “F,” “J,” “M,” or “Q” visa and you have no income that is subject to tax, such as wages, tips, scholarship and fellowship grants, dividends, etc. Free federal tax filing for 2011 Even if you have left the United States and filed a Form 1040-C, U. Free federal tax filing for 2011 S. Free federal tax filing for 2011 Departing Alien Income Tax Return, on departure, you still must file an annual U. Free federal tax filing for 2011 S. Free federal tax filing for 2011 income tax return. Free federal tax filing for 2011 If you are married and both you and your spouse are required to file, you must each file a separate return. Free federal tax filing for 2011 Form 1040NR-EZ You can use Form 1040NR-EZ if all of the following conditions are met. Free federal tax filing for 2011 You do not claim any dependents. Free federal tax filing for 2011 You cannot be claimed as a dependent on someone else's U. Free federal tax filing for 2011 S. Free federal tax filing for 2011 tax return. Free federal tax filing for 2011 If you were married, you do not claim an exemption for your spouse. Free federal tax filing for 2011 Your taxable income is less than $100,000. Free federal tax filing for 2011 The only itemized deduction you can claim is for state and local income taxes. Free federal tax filing for 2011 Note. Free federal tax filing for 2011 Residents of India who were students or business apprentices may be able to take the standard deduction instead of the itemized deduction for state and local income taxes. Free federal tax filing for 2011 See chapter 5. Free federal tax filing for 2011 Your only U. Free federal tax filing for 2011 S. Free federal tax filing for 2011 source income is from wages, salaries, tips, taxable refunds of state and local income taxes, scholarship or fellowship grants, and nontaxable interest or dividends. Free federal tax filing for 2011 (If you had taxable interest or dividend income, you cannot use this form. Free federal tax filing for 2011 ) You are not claiming any adjustments to income other than the student loan interest deduction or scholarship and fellowship grants excluded. Free federal tax filing for 2011 You are not claiming any tax credits. Free federal tax filing for 2011 This is not an “expatriation return. Free federal tax filing for 2011 ” See Expatriation Tax in chapter 4. Free federal tax filing for 2011 The only taxes you owe are: The income tax from the Tax Table. Free federal tax filing for 2011 The social security and Medicare tax from Form 4137 or Form 8919. Free federal tax filing for 2011 You are not claiming a credit for excess social security and tier 1 RRTA tax withheld. Free federal tax filing for 2011 You are not filing Form 8959, to figure the amount of Additional Medicare Tax you owe and/or the amount of Additional Medicare Tax withheld by your employer, if any. Free federal tax filing for 2011 If you do not meet all of the above conditions, you must file Form 1040NR. Free federal tax filing for 2011 When To File If you are an employee and you receive wages subject to U. Free federal tax filing for 2011 S. Free federal tax filing for 2011 income tax withholding, you will generally file by the 15th day of the 4th month after your tax year ends. Free federal tax filing for 2011 For the 2013 calendar year, file your return by April 15, 2014. Free federal tax filing for 2011 If you are not an employee who receives wages subject to U. Free federal tax filing for 2011 S. Free federal tax filing for 2011 income tax withholding, you must file by the 15th day of the 6th month after your tax year ends. Free federal tax filing for 2011 For the 2013 calendar year, file your return by June 16, 2014 (because June 15 is a Sunday. Free federal tax filing for 2011 ) Extensions of time to file. Free federal tax filing for 2011   If you cannot file your return by the due date, file Form 4868 or use one of the electronic filing options explained in the Form 4868 instructions. Free federal tax filing for 2011 For the 2013 calendar year, this will extend the due date to October 15, 2014 (December 15, 2014, if the regular due date of your return is June 16, 2014). Free federal tax filing for 2011 You must file the extension by the regular due date of your return. Free federal tax filing for 2011   In addition to the 6-month extension to October 15, taxpayers whose main place of business is outside the United States and Puerto Rico and who live outside those jurisdictions can request a discretionary 2-month extension of time to file their returns (to December 15 for calendar year taxpayers). Free federal tax filing for 2011 To request this extension, you must send the IRS a letter explaining the reasons why you need the additional 2 months. Free federal tax filing for 2011 Send the letter by the extended due date (October 15 for calendar year taxpayers) to the following address: Department of the Treasury Internal Revenue Service Center Austin, TX 73301-0215   You will not receive any notification from the IRS unless your request is denied for being untimely. Free federal tax filing for 2011 When to file for deductions and credits. Free federal tax filing for 2011   To get the benefit of any allowable deductions or credits, you must timely file a true and accurate return. Free federal tax filing for 2011 For this purpose, a return is timely if it is filed within 16 months of the due date just discussed. Free federal tax filing for 2011 However, if you did not file a 2012 tax return and 2013 is not the first year for which you are required to file one, your 2013 return is timely for this purpose if it is filed by the earlier of: The date that is 16 months after the due date for filing your 2013 return, or The date the IRS notifies you that your 2013 return has not been filed and that you cannot claim certain deductions and credits. Free federal tax filing for 2011 The allowance of the following credits is not affected by this time requirement. Free federal tax filing for 2011 Credit for withheld taxes. Free federal tax filing for 2011 Credit for excise tax on certain uses of gasoline and special fuels. Free federal tax filing for 2011 Credit for tax paid by a mutual fund (or other regulated investment company) or a real estate investment trust on undistributed long-term capital gains. Free federal tax filing for 2011 Protective return. Free federal tax filing for 2011   If your activities in the United States were limited and you do not believe that you had any gross income effectively connected with a U. Free federal tax filing for 2011 S. Free federal tax filing for 2011 trade or business during the year, you can file a protective return (Form 1040NR) by the deadline explained above. Free federal tax filing for 2011 By filing a protective return, you protect your right to receive the benefit of deductions and credits in the event it is later determined that some or all of your income is effectively connected. Free federal tax filing for 2011 You are not required to report any effectively connected income or any deductions on the protective return, but you must give the reason the return is being filed. Free federal tax filing for 2011   If you believe some of your activities resulted in effectively connected income, file your return reporting that income and related deductions by the regular due date. Free federal tax filing for 2011 To protect your right to claim deductions or credits resulting from other activities, attach a statement to that return explaining that you wish to protect your right to claim deductions and credits if it is later determined that the other activities produced effectively connected income. Free federal tax filing for 2011   You can follow the same procedure if you believe you have no U. Free federal tax filing for 2011 S. Free federal tax filing for 2011 tax liability because of a U. Free federal tax filing for 2011 S. Free federal tax filing for 2011 tax treaty. Free federal tax filing for 2011 Be sure to also complete item L on page 5 of Form 1040NR. Free federal tax filing for 2011 Waiver of filing deadline. Free federal tax filing for 2011   The IRS may waive the filing deadline if you establish that, based on the facts and circumstances, you acted reasonably and in good faith in failing to file a U. Free federal tax filing for 2011 S. Free federal tax filing for 2011 income tax return (including a protective return) and you cooperate with the IRS in determining your U. Free federal tax filing for 2011 S. Free federal tax filing for 2011 income tax liability for the tax year for which you did not file a return. Free federal tax filing for 2011 Where To File If you are not enclosing a payment, file Form 1040NR-EZ and Form 1040NR at the following address. Free federal tax filing for 2011  Department of the Treasury Internal Revenue Service Center Austin, TX 73301-0215 If enclosing a payment, mail your return to:  Internal Revenue Service  P. Free federal tax filing for 2011 O. Free federal tax filing for 2011 Box 1303 Charlotte, NC 28201-1303 Aliens from the U. Free federal tax filing for 2011 S. Free federal tax filing for 2011 Virgin Islands. Free federal tax filing for 2011    If you are a bona fide resident of the U. Free federal tax filing for 2011 S. Free federal tax filing for 2011 Virgin Islands during your entire tax year and work temporarily in the United States, you must pay your income taxes to the U. Free federal tax filing for 2011 S. Free federal tax filing for 2011 Virgin Islands and file your income tax returns at the following address. Free federal tax filing for 2011 Virgin Islands Bureau of Internal Revenue 6115 Estate Smith Bay Suite 225 St. Free federal tax filing for 2011 Thomas, VI 00802   Report all income from U. Free federal tax filing for 2011 S. Free federal tax filing for 2011 sources, as well as income from other sources, on your return. Free federal tax filing for 2011 For information on filing U. Free federal tax filing for 2011 S. Free federal tax filing for 2011 Virgin Islands returns, contact the U. Free federal tax filing for 2011 S. Free federal tax filing for 2011 Virgin Islands Bureau of Internal Revenue. Free federal tax filing for 2011   Chapter 8 discusses withholding from U. Free federal tax filing for 2011 S. Free federal tax filing for 2011 wages of U. Free federal tax filing for 2011 S. Free federal tax filing for 2011 Virgin Islanders. Free federal tax filing for 2011 Aliens from Guam or the Commonwealth of the Northern Mariana Islands. Free federal tax filing for 2011   If you are a bona fide resident of Guam or the Commonwealth of the Northern Mariana Islands (CNMI) during your entire tax year, you must file your return with, and pay any tax due to, Guam or the CNMI. Free federal tax filing for 2011 Report all income, including income from U. Free federal tax filing for 2011 S. Free federal tax filing for 2011 sources, on your return. Free federal tax filing for 2011 It is not necessary to file a separate U. Free federal tax filing for 2011 S. Free federal tax filing for 2011 income tax return. Free federal tax filing for 2011    Bona fide residents of Guam should file their Guam returns at the following address. Free federal tax filing for 2011   Department of Revenue and Taxation Government of Guam P. Free federal tax filing for 2011 O. Free federal tax filing for 2011 Box 23607 GMF, GU 96921    Bona fide residents of the CNMI should file their CNMI income tax returns at the following address. Free federal tax filing for 2011   Department of Finance Division of Revenue and Taxation Commonwealth of the Northern Mariana Islands P. Free federal tax filing for 2011 O. Free federal tax filing for 2011 Box 5234 CHRB Saipan, MP 96950   If you are not a bona fide resident of Guam or the CNMI, see Pub. Free federal tax filing for 2011 570, Tax Guide for Individuals With Income From U. Free federal tax filing for 2011 S. Free federal tax filing for 2011 Possessions, for information on where to file your return. Free federal tax filing for 2011 Amended Returns and Claims for Refund If you find changes in your income, deductions, or credits after you mail your return, file Form 1040X, Amended U. Free federal tax filing for 2011 S. Free federal tax filing for 2011 Individual Income Tax Return. Free federal tax filing for 2011 Also use Form 1040X if you should have filed Form 1040, 1040A, or 1040EZ instead of Form 1040NR or 1040NR-EZ, or vice versa. Free federal tax filing for 2011 If you amend Form 1040NR or Form 1040NR-EZ or file the correct return, attach the corrected return (Form 1040, Form 1040NR, etc. Free federal tax filing for 2011 ) to Form 1040X. Free federal tax filing for 2011 Print “Amended” across the top. Free federal tax filing for 2011 Ordinarily, an amended return claiming a refund must be filed within 3 years from the date your return was filed or within 2 years from the time the tax was paid, whichever is later. Free federal tax filing for 2011 A return filed before the final due date is considered to have been filed on the due date. Free federal tax filing for 2011 Other Forms You May Have To File You may be required to file information returns to report certain foreign income or assets, or monetary transactions. Free federal tax filing for 2011 FinCen Form 105 FinCEN Form 105 (formerly Customs Form 4790), Report of International Transportation of Currency or Monetary Instruments, must be filed by each person who physically transports, mails, or ships, or causes to be physically transported, mailed, or shipped, currency or other monetary instruments in a total amount of more than $10,000 at one time from the United States to any place outside the United States, or into the United States from any place outside the United States. Free federal tax filing for 2011 The filing requirement also applies to each person who receives in the United States currency or monetary instruments totaling more than $10,000 at one time from any place outside of the United States. Free federal tax filing for 2011 The term “monetary instruments” means the following: Coin and currency of the United States or of any other country, Travelers' checks in any form, Investment securities or stock in bearer form or otherwise in such form that title to them passes upon delivery, Negotiable instruments (including checks, promissory notes, and money orders) in bearer form, endorsed without restriction, made out to a fictitious payee, or otherwise in such form that title to them passes upon delivery, and Checks, promissory notes, and money orders which are signed but on which the name of the payee has been omitted. Free federal tax filing for 2011 However, the term does not include: Checks or money orders made payable to the order of a named person which have not been endorsed or which contain restrictive endorsements, Warehouse receipts, or Bills of lading. Free federal tax filing for 2011 A transfer of funds through normal banking procedures (wire transfer) that does not involve the physical transportation of currency or monetary instruments is not required to be reported on FinCEN Form 105. Free federal tax filing for 2011 Filing requirements. Free federal tax filing for 2011   FinCEN Form 105 filing requirements follow. Free federal tax filing for 2011 Recipients. Free federal tax filing for 2011   Each person who receives currency or other monetary instruments in the United States must file FinCEN Form 105 within 15 days after receipt, with the Customs officer in charge at any port of entry or departure, or by mail at the following address. Free federal tax filing for 2011 Commissioner of Customs  Attention: Currency Transportation Reports Washington, DC 20229 Shippers or mailers. Free federal tax filing for 2011   If the currency or other monetary instrument does not accompany the person entering or departing the United States, FinCEN Form 105 can be filed by mail at the above address on or before the date of entry, departure, mailing, or shipping. Free federal tax filing for 2011 Travelers. Free federal tax filing for 2011   Travelers must file FinCEN Form 105 with the Customs officer in charge at any Customs port of entry or departure, when entering or departing the United States. Free federal tax filing for 2011 Penalties. Free federal tax filing for 2011   Civil and criminal penalties are provided for failing to file a report, filing a report containing material omissions or misstatements, or filing a false or fraudulent report. Free federal tax filing for 2011 Also, the entire amount of the currency or monetary instrument may be subject to seizure and forfeiture. Free federal tax filing for 2011 More information. Free federal tax filing for 2011   More information regarding the filing of FinCEN Form 105 can be found in the instructions on the back of the form. Free federal tax filing for 2011 Form 8938 You may have to file Form 8938, Statement of Specified Foreign Financial Assets, to report the ownership of specified foreign financial asset(s) if you are one of the following individuals. Free federal tax filing for 2011 A resident alien of the United States for any part of the tax year. Free federal tax filing for 2011 A resident alien of the United States who elects to be treated as a resident of a foreign country under the provisions of a U. Free federal tax filing for 2011 S. Free federal tax filing for 2011 income tax treaty. Free federal tax filing for 2011 See Effect of Tax Treaties in chapter 1. Free federal tax filing for 2011 A nonresident alien who makes an election to be treated as a resident alien for purposes of filing a joint income tax return. Free federal tax filing for 2011 See chapter 1 for information about this election. Free federal tax filing for 2011 A nonresident alien who is a bona fide resident of American Samoa or Puerto Rico. Free federal tax filing for 2011 See Publication 570, Tax Guide for Individuals With Income From U. Free federal tax filing for 2011 S. Free federal tax filing for 2011 Possessions, for a definition of bona fide resident. Free federal tax filing for 2011 You must file Form 8938 if the total value of those assets exceeds an applicable threshold (the “reporting threshold”). Free federal tax filing for 2011 The reporting threshold varies depending on whether you live in the United States, are married, or file a joint income tax return with your spouse. Free federal tax filing for 2011 Specified foreign financial assets include any financial account maintained by a foreign financial institution and, to the extent held for investment, any stock, securities, or any other interest in a foreign entity and any financial instrument or contract with an issuer or counterparty that is not a U. Free federal tax filing for 2011 S. Free federal tax filing for 2011 person. Free federal tax filing for 2011 You may have to pay penalties if you are required to file Form 8938 and fail to do so, or if you have an understatement of tax due to any transaction involving an undisclosed foreign financial asset. Free federal tax filing for 2011 More information about the filing of Form 8938 can be found in the separate instructions for Form 8938. Free federal tax filing for 2011 Penalties The law provides penalties for failure to file returns or pay taxes as required. Free federal tax filing for 2011 Civil Penalties If you do not file your return and pay your tax by the due date, you may have to pay a penalty. Free federal tax filing for 2011 You may also have to pay a penalty if you substantially understate your tax, file a frivolous tax submission, or fail to supply your taxpayer identification number. Free federal tax filing for 2011 If you provide fraudulent information on your return, you may have to pay a civil fraud penalty. Free federal tax filing for 2011 Filing late. Free federal tax filing for 2011   If you do not file your return by the due date (including extensions), you may have to pay a failure-to-file penalty. Free federal tax filing for 2011 The penalty is based on the tax not paid by the due date (without regard to extensions). Free federal tax filing for 2011 The penalty is usually 5% for each month or part of a month that a return is late, but not more than 25%. Free federal tax filing for 2011 Fraud. Free federal tax filing for 2011   If your failure to file is due to fraud, the penalty is 15% for each month or part of a month that your return is late, up to a maximum of 75%. Free federal tax filing for 2011 Return over 60 days late. Free federal tax filing for 2011   If you file your return more than 60 days after the due date or extended due date, the minimum penalty is the smaller of $135 or 100% of the unpaid tax. Free federal tax filing for 2011 Exception. Free federal tax filing for 2011   You will not have to pay the penalty if you show that you failed to file on time because of reasonable cause and not because of willful neglect. Free federal tax filing for 2011 Paying tax late. Free federal tax filing for 2011   You will have to pay a failure-to-pay penalty of ½ of 1% (. Free federal tax filing for 2011 50%) of your unpaid taxes for each month, or part of a month, after the due date that the tax is not paid. Free federal tax filing for 2011 This penalty does not apply during the automatic 6-month extension of time to file period, if you paid at least 90% of your actual tax liability on or before the due date of your return and pay the balance when you file the return. Free federal tax filing for 2011   The monthly rate of the failure-to-pay penalty is half the usual rate (. Free federal tax filing for 2011 25% instead of . Free federal tax filing for 2011 50%) if an installment agreement is in effect for that month. Free federal tax filing for 2011 You must have filed your return by the due date (including extensions) to qualify for this reduced penalty. Free federal tax filing for 2011   If a notice of intent to levy is issued, the rate will increase to 1% at the start of the first month beginning at least 10 days after the day that the notice is issued. Free federal tax filing for 2011 If a notice and demand for immediate payment is issued, the rate will increase to 1% at the start of the first month beginning after the day that the notice and demand is issued. Free federal tax filing for 2011   This penalty cannot be more than 25% of your unpaid tax. Free federal tax filing for 2011 You will not have to pay the penalty if you can show that you had a good reason for not paying your tax on time. Free federal tax filing for 2011 Combined penalties. Free federal tax filing for 2011   If both the failure-to-file penalty and the failure-to-pay penalty (discussed earlier) apply in any month, the 5% (or 15%) failure-to-file penalty is reduced by the failure-to-pay penalty. Free federal tax filing for 2011 However, if you file your return more than 60 days after the due date or extended due date, the minimum penalty is the smaller of $135 or 100% of the unpaid tax. Free federal tax filing for 2011 Accuracy-related penalty. Free federal tax filing for 2011   You may have to pay an accuracy-related penalty if you underpay your tax because: You show negligence or disregard of rules or regulations, You substantially understate your income tax, You claim tax benefits for a transaction that lacks economic substance, or You fail to disclose a foreign financial asset. Free federal tax filing for 2011 The penalty is equal to 20% of the underpayment. Free federal tax filing for 2011 The penalty is 40% of any portion of the underpayment that is attributable to an undisclosed noneconomic substance transaction or an undisclosed foreign financial asset transaction. Free federal tax filing for 2011 The penalty will not be figured on any part of an underpayment on which the fraud penalty (discussed later) is charged. Free federal tax filing for 2011 Negligence or disregard. Free federal tax filing for 2011   The term “negligence” includes a failure to make a reasonable attempt to comply with the tax law or to exercise ordinary and reasonable care in preparing a return. Free federal tax filing for 2011 Negligence also includes failure to keep adequate books and records. Free federal tax filing for 2011 You will not have to pay a negligence penalty if you have a reasonable basis for a position you took. Free federal tax filing for 2011   The term “disregard” includes any careless, reckless, or intentional disregard. Free federal tax filing for 2011 Adequate disclosure. Free federal tax filing for 2011   You can avoid the penalty for disregard of rules or regulations if you adequately disclose on your return a position that has at least a reasonable basis. Free federal tax filing for 2011 See Disclosure statement , later. Free federal tax filing for 2011   This exception will not apply to an item that is attributable to a tax shelter. Free federal tax filing for 2011 In addition, it will not apply if you fail to keep adequate books and records, or substantiate items properly. Free federal tax filing for 2011 Substantial understatement of income tax. Free federal tax filing for 2011   You understate your tax if the tax shown on your return is less than the correct tax. Free federal tax filing for 2011 The understatement is substantial if it is more than the larger of 10% of the correct tax or $5,000. Free federal tax filing for 2011 However, the amount of the understatement is reduced to the extent the understatement is due to: Substantial authority, or Adequate disclosure and a reasonable basis. Free federal tax filing for 2011   If an item on your return is attributable to a tax shelter, there is no reduction for an adequate disclosure. Free federal tax filing for 2011 However, there is a reduction for a position with substantial authority, but only if you reasonably believed that your tax treatment was more likely than not the proper treatment. Free federal tax filing for 2011 Substantial authority. Free federal tax filing for 2011   Whether there is or was substantial authority for the tax treatment of an item depends on the facts and circumstances. Free federal tax filing for 2011 Consideration will be given to court opinions, Treasury regulations, revenue rulings, revenue procedures, and notices and announcements issued by the IRS and published in the Internal Revenue Bulletin that involve the same or similar circumstances as yours. Free federal tax filing for 2011 Disclosure statement. Free federal tax filing for 2011   To adequately disclose the relevant facts about your tax treatment of an item, use Form 8275, Disclosure Statement. Free federal tax filing for 2011 You must also have a reasonable basis for treating the item the way you did. Free federal tax filing for 2011   In cases of substantial understatement only, items that meet the requirements of Revenue Procedure 2012-51, 2012-51 IRB 719 (or later update) are considered adequately disclosed on your return without filing Form 8275. Free federal tax filing for 2011   Use Form 8275-R, Regulation Disclosure Statement, to disclose items or positions contrary to regulations. Free federal tax filing for 2011 Transaction lacking economic substance. Free federal tax filing for 2011   For more information on economic substance, see section 7701(o). Free federal tax filing for 2011 Foreign financial asset. Free federal tax filing for 2011   For more information on undisclosed foreign financial assets, see section 6662(j) or the Instructions for Form 8938. Free federal tax filing for 2011 Reasonable cause. Free federal tax filing for 2011   You will not have to pay a penalty if you show a good reason (reasonable cause) for the way you treated an item. Free federal tax filing for 2011 You must also show that you acted in good faith. Free federal tax filing for 2011 This does not apply to a transaction that lacks economic substance. Free federal tax filing for 2011 Filing erroneous claim for refund or credit. Free federal tax filing for 2011   You may have to pay a penalty if you file an erroneous claim for refund or credit. Free federal tax filing for 2011 The penalty is equal to 20% of the disallowed amount of the claim, unless you can show a reasonable basis for the way you treated an item. Free federal tax filing for 2011 However, any disallowed amount due to a transaction that lacks economic substance will not be treated as having a reasonable basis. Free federal tax filing for 2011 The penalty will not be figured on any part of the disallowed amount of the claim that relates to the earned income credit or on which the accuracy-related or fraud penalties are charged. Free federal tax filing for 2011 Frivolous tax submission. Free federal tax filing for 2011   You may have to pay a penalty of $5,000 if you file a frivolous tax return or other frivolous submissions. Free federal tax filing for 2011 A frivolous tax return is one that does not include enough information to figure the correct tax or that contains information clearly showing that the tax you reported is substantially incorrect. Free federal tax filing for 2011 For more information on frivolous returns, frivolous submissions, and a list of positions that are identified as frivolous, see Notice 2010-33, 2010-17 IRB 609 available at www. Free federal tax filing for 2011 irs. Free federal tax filing for 2011 gov/irb/2010-17_irb/ar13. Free federal tax filing for 2011 html. Free federal tax filing for 2011   You will have to pay the penalty if you filed this kind of return or submission based on a frivolous position or a desire to delay or interfere with the administration of federal tax laws. Free federal tax filing for 2011 This includes altering or striking out the preprinted language above the space provided for your signature. Free federal tax filing for 2011   This penalty is added to any other penalty provided by law. Free federal tax filing for 2011 Fraud. Free federal tax filing for 2011   If there is any underpayment of tax on your return due to fraud, a penalty of 75% of the underpayment due to fraud will be added to your tax. Free federal tax filing for 2011 Failure to supply taxpayer identification number. Free federal tax filing for 2011   If you do not include your social security number (SSN) or individual taxpayer identification number (ITIN) or the SSN or ITIN of another person where required on a return, statement, or other document, you will be subject to a penalty of $50 for each failure. Free federal tax filing for 2011 You will also be subject to a penalty of $50 if you do not give your SSN or ITIN to another person when it is required on a return, statement, or other document. Free federal tax filing for 2011   For example, if you have a bank account that earns interest, you must give your SSN or ITIN to the bank. Free federal tax filing for 2011 The number must be shown on the Form 1099-INT or other statement the bank sends you. Free federal tax filing for 2011 If you do not give the bank your SSN or ITIN, you will be subject to the $50 penalty. Free federal tax filing for 2011 (You also may be subject to “backup” withholding of income tax. Free federal tax filing for 2011 )   You will not have to pay the penalty if you are able to show that the failure was due to reasonable cause and not willful neglect. Free federal tax filing for 2011 Criminal Penalties You may be subject to criminal prosecution (brought to trial) for actions such as: Tax evasion, Willful failure to file a return, supply information, or pay any tax due, Fraud and false statements, or Preparing and filing a fraudulent return. Free federal tax filing for 2011 Prev  Up  Next   Home   More Online Publications