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Go 2007 Taxes

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Go 2007 Taxes

Go 2007 taxes Publication 3402 - Main Content Table of Contents What is a Limited Liability Company? Classification of an LLC LLCs Classified as Partnerships LLCs Classified as Disregarded Entities LLCs Classified as Corporations Subsequent Elections How To Get More InformationInternal Revenue Service Small Business Administration Other Federal Agencies What is a Limited Liability Company? For purposes of this publication, a limited liability company (LLC) is a business entity organized in the United States under state law. Go 2007 taxes Unlike a partnership, all of the members of an LLC have limited personal liability for its debts. Go 2007 taxes An LLC may be classified for federal income tax purposes as a partnership, corporation, or an entity disregarded as separate from its owner by applying the rules in Regulations section 301. Go 2007 taxes 7701-3. Go 2007 taxes The information in this publication applies to LLCs in general, and different rules may apply to special situations, including banks, insurance companies, or nonprofit organizations that are LLCs or that own LLCs. Go 2007 taxes Check your state's requirements and the federal tax regulations for further information. Go 2007 taxes Classification of an LLC Default classification rules. Go 2007 taxes   An LLC with at least two members is classified as a partnership for federal income tax purposes. Go 2007 taxes An LLC with only one member is treated as an entity disregarded as separate from its owner for income tax purposes (but as a separate entity for purposes of employment tax and certain excise taxes). Go 2007 taxes Also, an LLC's federal tax classification can subsequently change under certain default rules discussed later. Go 2007 taxes Elected classification. Go 2007 taxes   If an LLC does not choose to be classified under the above default classifications, it can elect to be classified as an association taxable as a corporation or as an S corporation. Go 2007 taxes After an LLC has determined its federal tax classification, it can later elect to change that classification. Go 2007 taxes For details, see Subsequent Elections, later. Go 2007 taxes LLCs Classified as Partnerships If an LLC has at least two members and is classified as a partnership, it generally must file Form 1065, U. Go 2007 taxes S. Go 2007 taxes Return of Partnership Income. Go 2007 taxes Generally, an LLC classified as a partnership is subject to the same filing and reporting requirements as partnerships. Go 2007 taxes For certain purposes, members of an LLC are treated as limited partners in a limited partnership. Go 2007 taxes For example, LLC members are treated as limited partners for purposes of material participation under the passive activity limitation rules (see Temporary Regulation section 1. Go 2007 taxes 469-5T(e)). Go 2007 taxes See the Instructions for Form 1065 for reporting rules that apply specifically to LLCs. Go 2007 taxes Member manager. Go 2007 taxes   Only a member manager of an LLC can sign the partnership tax return. Go 2007 taxes And only a member manager can represent the LLC as the tax matters partner under the consolidated audit proceedings in sections 6221 through 6234. Go 2007 taxes A member manager is any owner of an interest in the LLC who, alone or together with others, has the continuing authority to make the management decisions necessary to conduct the business for which the LLC was formed. Go 2007 taxes If there are no elected or designated member managers, each owner is treated as a member manager. Go 2007 taxes Change in default classification. Go 2007 taxes   If the number of members in an LLC classified as a partnership is reduced to only one member, it becomes an entity disregarded as separate from its owner under Regulations section 301. Go 2007 taxes 7701-3(f)(2). Go 2007 taxes However, if the LLC has made an election to be classified as a corporation (discussed later) and that elective classification is in effect at the time of the change in membership, the default classification as a disregarded entity will not apply. Go 2007 taxes   Other tax consequences of a change in membership, such as recognition of gain or loss, are determined by the transactions through which an interest in the LLC is acquired or disposed of. Go 2007 taxes If a partnership that becomes a disregarded entity as a result of a decrease in the number of members makes an election to be classified as a corporation, the applicable deemed transactions discussed under Subsequent Elections, later, apply. Go 2007 taxes Example 1. Go 2007 taxes Ethel and Francis are members of an LLC classified as a partnership for federal tax purposes. Go 2007 taxes Each holds an equal membership interest. Go 2007 taxes The LLC does not hold any unrealized receivables or substantially appreciated inventory. Go 2007 taxes Ethel sells her entire interest in the LLC to Francis for $10,000. Go 2007 taxes After the sale, the business is continued by the LLC, which is owned solely by Francis. Go 2007 taxes No entity classification election is made after the sale to treat the LLC as a corporation for federal tax purposes. Go 2007 taxes The partnership terminates when Francis buys Ethel's entire interest. Go 2007 taxes Ethel must treat the transaction as the sale of a partnership interest and must report gain or loss, if any, resulting from the sale of her partnership interest. Go 2007 taxes For purposes of determining the tax treatment of Francis, the partnership is deemed to make a liquidating distribution of all of its assets to Ethel and Francis, and after this distribution, Francis is treated as acquiring the assets deemed to have been distributed to Ethel in liquidation of Ethel's partnership interest. Go 2007 taxes Francis's basis in the assets attributable to Ethel's one-half interest in the partnership is $10,000, the purchase price for Ethel's partnership interest. Go 2007 taxes Upon the termination of the partnership, Francis is considered to receive a distribution of those assets attributable to Francis's former interest in the partnership. Go 2007 taxes Francis must recognize gain or loss, if any, on the deemed distribution of the assets to the extent required by Internal Revenue Code section 731(a). Go 2007 taxes See Partnership Distributions in Publication 541. Go 2007 taxes Example 2. Go 2007 taxes George and Henrietta are members of an LLC classified as a partnership for federal tax purposes. Go 2007 taxes Each holds an equal membership interest. Go 2007 taxes The LLC does not hold any unrealized receivables or substantially appreciated inventory. Go 2007 taxes George and Henrietta each sell their entire interests in the LLC to Ian, an unrelated person, in exchange for $10,000. Go 2007 taxes After the sale, the business is continued by the LLC, which is owned solely by Ian. Go 2007 taxes No entity classification election is made after the sale to treat the LLC as a corporation for federal tax purposes. Go 2007 taxes The partnership terminates when Ian purchases the entire interests of George and Henrietta in the LLC. Go 2007 taxes George and Henrietta must report gain or loss, if any, resulting from the sale of their partnership interests. Go 2007 taxes For purposes of classifying the acquisition by Ian, the partnership is deemed to make a liquidating distribution of its assets to George and Henrietta. Go 2007 taxes Immediately following this distribution, Ian is deemed to acquire, by purchase, all of the former partnership's assets. Go 2007 taxes   For more details on the preceding two examples, see Revenue Ruling 99-6, 1999-6 I. Go 2007 taxes R. Go 2007 taxes B. Go 2007 taxes 6. Go 2007 taxes You can find Revenue Ruling 99-6 at www. Go 2007 taxes irs. Go 2007 taxes gov/pub/irs-irbs/irb99-06. Go 2007 taxes pdf. Go 2007 taxes LLCs Classified as Disregarded Entities If an LLC has only one member and is classified as an entity disregarded as separate from its owner, its income, deductions, gains, losses, and credits are reported on the owner's income tax return. Go 2007 taxes For example, if the owner of the LLC is an individual, the LLC's income and expenses would be reported on the following schedules filed with the owner's Form 1040: Schedule C, Profit or Loss from Business (Sole Proprietorship); Schedule C-EZ, Net Profit From Business (Sole Proprietorship); Schedule E, Supplemental Income and Loss; or Schedule F, Profit or Loss From Farming. Go 2007 taxes Employment tax and certain excise taxes. Go 2007 taxes   A single-member LLC that is classified as a disregarded entity for income tax purposes is treated as a separate entity for purposes of employment tax and certain excise taxes. Go 2007 taxes For wages paid after January 1, 2009, the single-member LLC is required to use its name and employer identification number (EIN) for reporting and payment of employment taxes. Go 2007 taxes A single-member LLC is also required to use its name and EIN to register for excise tax activities on Form 637; pay and report excise taxes reported on Forms 720, 730, 2290, and 11-C; and claim any refunds, credits, and payments on Form 8849. Go 2007 taxes See the employment and excise tax returns for more information. Go 2007 taxes Self-employment tax rule for disregarded entity LLCs. Go 2007 taxes   An individual owner of a single-member LLC classified as a disregarded entity is not an employee of the LLC. Go 2007 taxes Instead, the owner is subject to tax on the net earnings from self-employment of the LLC which is treated in the same manner as a sole-proprietorship. Go 2007 taxes Example 3. Go 2007 taxes LLC is a disregarded entity owned by Irene. Go 2007 taxes LLC has three employees (Kent, Patricia, and Tex) and pays wages. Go 2007 taxes LLC is treated as an entity separate from its owner for purposes of employment taxes. Go 2007 taxes For the wages paid to Kent, Patricia, and Tex, LLC is liable for income tax withholding, Federal Insurance Contributions Act (FICA) taxes, and Federal Unemployment Tax Act (FUTA) taxes. Go 2007 taxes In addition, LLC must file under its name and EIN the applicable employment tax returns; make timely employment tax deposits; and file with the Social Security Administration and furnish to LLC's employees (Kent, Patricia, and Tex) Forms W-2, Wage and Tax Statement. Go 2007 taxes Irene is self-employed for purposes of the self-employment tax. Go 2007 taxes Thus, Irene is subject to self-employment tax on her net earnings from self-employment with respect to LLC's activities. Go 2007 taxes Irene is not an employee of LLC for purposes of employment taxes. Go 2007 taxes Because LLC is treated as a sole proprietorship of Irene for income tax purposes, Irene must report the income and expenses from LLC on her Schedule C. Go 2007 taxes Irene will figure the tax due on her net earnings from self-employment on Schedule SE. Go 2007 taxes Irene can also deduct one-half of her self-employment tax on line 27 of her Form 1040. Go 2007 taxes Taxpayer identification number. Go 2007 taxes   For all income tax purposes, a single-member LLC classified as a disregarded entity must use the owner's social security number (SSN) or EIN. Go 2007 taxes This includes all information returns and reporting related to income tax. Go 2007 taxes For example, if a disregarded entity LLC that is owned by an individual is required to provide a Form W-9, Request for Taxpayer Identification Number and Certification, the LLC must provide the owner's SSN or EIN, not the LLC's EIN. Go 2007 taxes   However, most new single-member LLCs classified as a disregarded entity will need to obtain an EIN for the LLC. Go 2007 taxes An LLC will need an EIN if it has any employees or if it will be required to file any of the excise tax forms listed above (see Employment tax and certain excise taxes earlier). Go 2007 taxes See Form SS-4, Application for Employer Identification Number, for information on applying for an EIN. Go 2007 taxes Change in default classification. Go 2007 taxes   If a single-member LLC classified as a disregarded entity for income tax purposes acquires an additional member, it becomes a partnership under Regulations section 301. Go 2007 taxes 7701-3(f)(2). Go 2007 taxes However, if the LLC has made an election to be classified as a corporation (discussed later) and that elective classification is in effect at the time of the change in membership, the default classification as a partnership will not apply. Go 2007 taxes   Other tax consequences of a change in membership, such as recognition of gain or loss, are determined by the transactions through which an interest in the LLC is acquired or disposed of. Go 2007 taxes If a disregarded entity that becomes a partnership as a result of an increase in the number of members makes an election to be classified as a corporation, the applicable deemed transactions discussed in Subsequent Elections, later, apply. Go 2007 taxes Example 4. Go 2007 taxes Bart, who is not related to Alain, buys 50% of Alain's interest in an LLC that is a disregarded entity for $5,000. Go 2007 taxes Alain does not contribute any portion of the $5,000 to the LLC. Go 2007 taxes Alain and Bart continue to operate the business of the LLC as co-owners of the LLC. Go 2007 taxes The LLC is converted to a partnership when the new member, Bart, buys an interest in the disregarded entity from the owner, Alain. Go 2007 taxes Bart's buying a 50% interest in Alain's ownership interest in the LLC is treated as Bart's buying a 50% interest in each of the LLC's assets, which are treated as owned directly by Alain for federal income tax purposes. Go 2007 taxes Immediately thereafter, Alain and Bart are treated as contributing their respective interests in those assets to a partnership in exchange for ownership interests in the partnership. Go 2007 taxes Alain recognizes gain or loss from the deemed sale to Bart of the 50% interest in the assets. Go 2007 taxes Neither Alain nor Bart recognizes any gain or loss as a result of the deemed contribution of the assets to the partnership. Go 2007 taxes Example 5. Go 2007 taxes Charles, who is not related to Danielle, contributes $10,000 to an LLC owned by Danielle for a 50% ownership interest in the LLC. Go 2007 taxes The LLC uses all of the contributed cash in its business. Go 2007 taxes Charles and Danielle continue to operate the business of the LLC as co-owners of the LLC. Go 2007 taxes The LLC is converted from a disregarded entity to a partnership when Charles contributes cash to the LLC. Go 2007 taxes Charles's contribution is treated as a contribution to a partnership in exchange for an ownership interest in the partnership. Go 2007 taxes Danielle is treated as contributing all of the assets of the LLC to the partnership in exchange for a partnership interest. Go 2007 taxes Neither Charles nor Danielle recognizes gain or loss as a result of the conversion of the disregarded entity to a partnership. Go 2007 taxes   For more details on the preceding two examples, see Revenue Ruling 99-5, 1999-6 I. Go 2007 taxes R. Go 2007 taxes B. Go 2007 taxes 8. Go 2007 taxes You can find Revenue Ruling 99-5 at www. Go 2007 taxes irs. Go 2007 taxes gov/pub/irs-irbs/irb99-06. Go 2007 taxes pdf. Go 2007 taxes LLCs Classified as Corporations An LLC with either a single member or more than one member can elect to be classified as a corporation rather than be classified as a partnership or disregarded entity under the default rules discussed earlier. Go 2007 taxes File Form 8832, Entity Classification Election, to elect classification as a C corporation. Go 2007 taxes File Form 2553, Election by a Small Business Corporation, to elect classification as an S corporation. Go 2007 taxes LLCs electing classification as an S corporation are not required to file Form 8832 to elect classification as a corporation before filing Form 2553. Go 2007 taxes By filing Form 2553, an LLC is deemed to have elected classification as a corporation in addition to the S corporation classification. Go 2007 taxes If the LLC elects to be classified as a corporation by filing Form 8832, a copy of the LLC's Form 8832 must be attached to the federal income tax return of each direct and indirect owner of the LLC for the tax year of the owner that includes the date on which the election took effect. Go 2007 taxes Example 6. Go 2007 taxes Classification as a corporation without an S election. Go 2007 taxes Wanda and Sylvester are members of an LLC. Go 2007 taxes They agree that the LLC should be classified as a corporation but do not want to elect to have the LLC be treated as an S corporation. Go 2007 taxes The LLC must file Form 8832. Go 2007 taxes Example 7. Go 2007 taxes Classification as a corporation with an S election. Go 2007 taxes Evelyn and Carol are members of an LLC. Go 2007 taxes They agree that the LLC should be classified as an S corporation. Go 2007 taxes The LLC must file Form 2553 instead of Form 8832. Go 2007 taxes If the LLC is classified as a corporation, it must file a corporation income tax return. Go 2007 taxes If it is a C corporation, it is taxed on its taxable income and distributions to the members are includible in the members' gross income to the extent of the corporation's earnings and profits (double taxation). Go 2007 taxes If it is an S corporation, the corporation is generally not subject to any income tax and the income, deductions, gains, losses, and credits of the corporation “pass through” to the members. Go 2007 taxes Corporations generally file either: Form 1120, U. Go 2007 taxes S. Go 2007 taxes Corporation Income Tax Return; or Form 1120S, U. Go 2007 taxes S. Go 2007 taxes Income Tax Return for an S Corporation. Go 2007 taxes For more information on the income taxation of corporations and their shareholders, see Publication 542, Corporations. Go 2007 taxes For more information on the income taxation of S corporations and their shareholders, see the Instructions for Form 1120S, U. Go 2007 taxes S. Go 2007 taxes Income Tax Return for an S Corporation. Go 2007 taxes Subsequent Elections An LLC can elect to change its classification. Go 2007 taxes Generally, once an LLC has elected to change its classification, it cannot elect again to change it classification during the 60 months after the effective date of the election. Go 2007 taxes An election by a newly formed LLC that is effective on the date of formation is not considered a change for purposes of this limitation. Go 2007 taxes For more information and exceptions, see Regulations section 301. Go 2007 taxes 7701-3(c) and the Form 8832 instructions. Go 2007 taxes An election to change classification can have significant tax consequences based on the following transactions that are deemed to occur as a result of the election. Go 2007 taxes Partnership to corporation. Go 2007 taxes   An election to change classification from a partnership to a corporation will be treated as if the partnership contributed all of its assets and liabilities to the corporation in exchange for stock and the partnership then immediately liquidated by distributing the stock to its partners. Go 2007 taxes   For more information, see Partnership Distributions in Publication 541 and Property Exchanged for Stock in Publication 542. Go 2007 taxes Corporation to partnership. Go 2007 taxes   An election to change classification from a corporation to a partnership will be treated as if the corporation distributed all of its assets and liabilities to its shareholders in liquidation and the shareholders then immediately contributed all of the distributed assets and liabilities to a new partnership. Go 2007 taxes   For more information, see Contribution of Property in Publication 541 and Distributions to Shareholders in Publication 542. Go 2007 taxes Corporation to disregarded entity. Go 2007 taxes   An election to change classification from a corporation to a disregarded entity will be treated as if the corporation distributed all of its assets and liabilities to its single owner in liquidation. Go 2007 taxes   For more information, see Distributions to Shareholders in Publication 542. Go 2007 taxes Disregarded entity to corporation. Go 2007 taxes   An election to change classification from a disregarded entity to a corporation will be treated as if the owner of the disregarded entity contributed all of the assets and liabilities to the corporation in exchange for stock. Go 2007 taxes   For more information, see Property Exchanged for Stock in Publication 542. Go 2007 taxes How To Get More Information This section describes the help the IRS and other federal agencies offer to taxpayers who operate their own businesses. Go 2007 taxes Internal Revenue Service You can get help with unresolved tax issues, order free publications and forms, ask tax questions, and get information from the IRS in several ways. Go 2007 taxes By selecting the method that is best for you, you will have quick and easy access to tax help. Go 2007 taxes Contacting your Taxpayer Advocate. Go 2007 taxes   The Taxpayer Advocate Service (TAS) is an independent organization within the IRS whose employees assist taxpayers who are experiencing economic harm, who are seeking help in resolving tax problems that have not been resolved through normal channels, or who believe that an IRS system or procedure is not working as it should. Go 2007 taxes   You can contact the TAS by calling the TAS toll-free case intake line at 1-877-777-4778 or TTY/TDD 1-800-829-4059 to see if you are eligible for assistance. Go 2007 taxes You can also call or write to your local taxpayer advocate, whose phone number and address are listed in your local telephone directory and in Publication 1546, Taxpayer Advocate Service — Your Voice at the IRS. Go 2007 taxes You can file Form 911, Request for Taxpayer Advocate Service Assistance (And Application for Taxpayer Assistance Order), or ask an IRS employee to complete it on your behalf. Go 2007 taxes For more information, go to www. Go 2007 taxes irs. Go 2007 taxes gov/advocate. Go 2007 taxes Low Income Taxpayer Clinics (LITCs). Go 2007 taxes   LITCs are independent organizations that provide low income taxpayers with representation in federal tax controversies with the IRS for free or for a nominal charge. Go 2007 taxes The clinics also provide tax education and outreach for taxpayers with limited English proficiency or who speak English as a second language. Go 2007 taxes Publication 4134, Low Income Taxpayer Clinic List, provides information on clinics in your area. Go 2007 taxes It is available at www. Go 2007 taxes irs. Go 2007 taxes gov or at your local IRS office. Go 2007 taxes Small business workshops. Go 2007 taxes   Small business workshops are designed to help the small business owner understand and fulfill their federal tax responsibilities. Go 2007 taxes Workshops are sponsored and presented by IRS partners who are federal tax specialists. Go 2007 taxes Workshop topics vary from a general overview of taxes to more specific topics such as recordkeeping and retirement plans. Go 2007 taxes Although most are free, some workshops have fees associated with them. Go 2007 taxes Any fees charged for a workshop are paid to the sponsoring organization, not the IRS. Go 2007 taxes   For more information, visit www. Go 2007 taxes irs. Go 2007 taxes gov/businesses/small. Go 2007 taxes Subscribe to e-news for small businesses. Go 2007 taxes   Join the e-News for Small Businesses mailing list to receive updates, reminders, and other information useful to small business owners and self employed individuals. Go 2007 taxes Visit the website at www. Go 2007 taxes irs. Go 2007 taxes gov/businesses/small and click on “Subscribe to e-News. Go 2007 taxes ” Free tax services. Go 2007 taxes   To find out what services are available, get Publication 910, IRS Guide to Free Tax Services. Go 2007 taxes It contains a list of free tax publications and describes other free tax information services, including tax education and assistance programs and a list of TeleTax topics. Go 2007 taxes   Accessible versions of IRS published products are available on request in a variety of alternative formats for people with disabilities. Go 2007 taxes Internet. Go 2007 taxes You can access the IRS website at www. Go 2007 taxes irs. Go 2007 taxes gov 24 hours a day, 7 days a week, to: E-file your return. Go 2007 taxes Find out about commercial tax preparation and e-file services available free to eligible taxpayers. Go 2007 taxes Check the status of your refund. Go 2007 taxes Go to www. Go 2007 taxes irs. Go 2007 taxes gov and click on Where's My Refund. Go 2007 taxes Wait at least 72 hours after the IRS acknowledges receipt of your e-filed return, or 3 to 4 weeks after mailing a paper return. Go 2007 taxes If you filed Form 8379 with your return, wait 14 weeks (11 weeks if you filed electronically). Go 2007 taxes Have your tax return available so you can provide your social security number, your filing status, and the exact whole dollar amount of your refund. Go 2007 taxes Download forms, instructions, and publications. Go 2007 taxes Order IRS products online. Go 2007 taxes Research your tax questions online. Go 2007 taxes Search publications online by topic or keyword. Go 2007 taxes View Internal Revenue Bulletins (IRBs) published in the last few years. Go 2007 taxes Figure your withholding allowances using the withholding calculator online at www. Go 2007 taxes irs. Go 2007 taxes gov/individuals. Go 2007 taxes Determine if Form 6251 must be filed using our Alternative Minimum Tax (AMT) Assistant. Go 2007 taxes Sign up to receive local and national tax news by email. Go 2007 taxes Get information on starting and operating a small business. Go 2007 taxes Phone. Go 2007 taxes Many services are available by phone. Go 2007 taxes Ordering forms, instructions, and publications. Go 2007 taxes Call 1-800-829-3676 to order current-year forms, instructions, and publications, and prior-year forms and instructions. Go 2007 taxes You should receive your order within 10 days. Go 2007 taxes Asking tax questions. Go 2007 taxes Call the IRS with your tax questions at 1-800-829-1040. Go 2007 taxes Solving problems. Go 2007 taxes You can get face-to-face help solving tax problems every business day in IRS Taxpayer Assistance Centers. Go 2007 taxes An employee can explain IRS letters, request adjustments to your account, or help you set up a payment plan. Go 2007 taxes Call your local Taxpayer Assistance Center for an appointment. Go 2007 taxes To find the number, go to www. Go 2007 taxes irs. Go 2007 taxes gov/localcontacts or look in the phone book under United States Government, Internal Revenue Service. Go 2007 taxes TTY/TDD equipment. Go 2007 taxes If you have access to TTY/TDD equipment, call 1-800-829-4059 to ask tax questions or to order forms and publications. Go 2007 taxes TeleTax topics. Go 2007 taxes Call 1-800-829-4477 to listen to pre-recorded messages covering various tax topics. Go 2007 taxes Refund information. Go 2007 taxes To check the status of your 2009 refund, call 1-800-829-1954 during business hours or 1-800-829-4477 (automated refund information 24 hours a day, 7 days a week). Go 2007 taxes Wait at least 72 hours after the IRS acknowledges receipt of your e-filed return, or 3 to 4 weeks after mailing a paper return. Go 2007 taxes If you filed Form 8379 with your return, wait 14 weeks (11 weeks if you filed electronically). Go 2007 taxes Have your 2009 tax return available so you can provide your social security number, your filing status, and the exact whole dollar amount of your refund. Go 2007 taxes Refunds are sent out weekly on Fridays. Go 2007 taxes If you check the status of your refund and are not given the date it will be issued, please wait until the next week before checking back. Go 2007 taxes Evaluating the quality of our telephone services. Go 2007 taxes To ensure IRS representatives give accurate, courteous, and professional answers, we use several methods to evaluate the quality of our telephone services. Go 2007 taxes One method is for a second IRS representative to listen in on or record random telephone calls. Go 2007 taxes Another is to ask some callers to complete a short survey at the end of the call. Go 2007 taxes Walk-in. Go 2007 taxes Many products and services are available on a walk-in basis. Go 2007 taxes Products. Go 2007 taxes You can walk in to many post offices, libraries, and IRS offices to pick up certain forms, instructions, and publications. Go 2007 taxes Some IRS offices, libraries, grocery stores, copy centers, city and county government offices, credit unions, and office supply stores have a collection of products available to print from a CD or photocopy from reproducible proofs. Go 2007 taxes Also, some IRS offices and libraries have the Internal Revenue Code, regulations, Internal Revenue Bulletins, and Cumulative Bulletins available for research purposes. Go 2007 taxes Services. Go 2007 taxes You can walk in to your local Taxpayer Assistance Center every business day for personal, face-to-face tax help. Go 2007 taxes An employee can explain IRS letters, request adjustments to your tax account, or help you set up a payment plan. Go 2007 taxes If you need to resolve a tax problem, have questions about how the tax law applies to your individual tax return, or you are more comfortable talking with someone in person, visit your local Taxpayer Assistance Center where you can spread out your records and talk with an IRS representative face-to-face. Go 2007 taxes No appointment is necessary—just walk in. Go 2007 taxes If you prefer, you can call your local Center and leave a message requesting an appointment to resolve a tax account issue. Go 2007 taxes A representative will call you back within 2 business days to schedule an in-person appointment at your convenience. Go 2007 taxes If you have an ongoing, complex tax account problem or a special need, such as a disability, an appointment can be requested. Go 2007 taxes All other issues will be handled without an appointment. Go 2007 taxes To find the number of your local office, go to www. Go 2007 taxes irs. Go 2007 taxes gov/localcontacts or look in the phone book under United States Government, Internal Revenue Service. Go 2007 taxes Mail. Go 2007 taxes You can send your order for forms, instructions, and publications to the address below. Go 2007 taxes You should receive a response within 10 days after your request is received. Go 2007 taxes Internal Revenue Service1201 N. Go 2007 taxes Mitsubishi MotorwayBloomington, IL 61705–6613 DVD for tax products. Go 2007 taxes You can order Publication 1796, IRS Tax Products DVD, and obtain: Current-year forms, instructions, and publications. Go 2007 taxes Prior-year forms, instructions, and publications. Go 2007 taxes Tax Map: an electronic research tool and finding aid. Go 2007 taxes Tax law frequently asked questions. Go 2007 taxes Tax Topics from the IRS telephone response system. Go 2007 taxes Internal Revenue Code—Title 26 of the U. Go 2007 taxes S. Go 2007 taxes Code. Go 2007 taxes Fill-in, print, and save features for most tax forms. Go 2007 taxes Internal Revenue Bulletins. Go 2007 taxes Toll-free and email technical support. Go 2007 taxes Two releases during the year. Go 2007 taxes – The first release will ship the beginning of January. Go 2007 taxes – The final release will ship the beginning of March. Go 2007 taxes Purchase the DVD from National Technical Information Service (NTIS) at www. Go 2007 taxes irs. Go 2007 taxes gov/cdorders for $30 (no handling fee) or call 1-877-CDFORMS (1-877-233-6767) toll free to buy the DVD for $30 (plus a $6 handling fee). Go 2007 taxes Small Business Administration The Small Business Administration (SBA) offers training and educational programs, counseling services, financial programs, and contract assistance for small business owners. Go 2007 taxes The SBA also has publications and videos on a variety of business topics. Go 2007 taxes The following briefly describes assistance provided by the SBA. Go 2007 taxes Small Business Development Centers (SBDCs). Go 2007 taxes   SBDCs provide counseling, training, and technical services to current and prospective small business owners who cannot afford the services of a private consultant. Go 2007 taxes Help is available when beginning, improving, or expanding a small business. Go 2007 taxes Business Information Centers (BICs). Go 2007 taxes   BICs offer a small business reference library, management video tapes, and computer technology to help plan a business. Go 2007 taxes BICs also offer one-on-one assistance. Go 2007 taxes Individuals who are in business or are interested in starting a business can use BICs as often as they wish at no charge. Go 2007 taxes Service Corps of Retired Executives (SCORE). Go 2007 taxes   SCORE provides small business counseling and training to current and prospective small business owners. Go 2007 taxes SCORE is made up of current and former business people who offer their expertise and knowledge to help people start, manage, and expand a small business. Go 2007 taxes SCORE also offers a variety of small business workshops. Go 2007 taxes    Internet. Go 2007 taxes You can visit the SBA website at www. Go 2007 taxes sba. Go 2007 taxes gov. Go 2007 taxes While visiting the SBA website, you can find a variety of information of interest to small business owners. Go 2007 taxes    Phone. Go 2007 taxes Call the SBA Answer Desk at 1-800-UASK-SBA (1-800-827-5722) for general information about programs available to assist small business owners. Go 2007 taxes    Walk-in. Go 2007 taxes You can walk in to a Small Business Development Center or Business Information Center to request assistance with your small business. Go 2007 taxes To find the location nearest you, visit the SBA website or call the SBA Answer Desk. Go 2007 taxes Other Federal Agencies Other federal agencies also publish publications and pamphlets to assist small businesses. Go 2007 taxes Most of these are available from the Superintendent of Documents at the Government Printing Office. Go 2007 taxes You can get information and order these publications and pamphlets in several ways. Go 2007 taxes Internet. Go 2007 taxes You can visit the GPO website at www. Go 2007 taxes access. Go 2007 taxes gpo. Go 2007 taxes gov. Go 2007 taxes Mail. Go 2007 taxes Write to the GPO at the following address. Go 2007 taxes Superintendent of DocumentsU. Go 2007 taxes S. Go 2007 taxes Government Printing OfficeP. Go 2007 taxes O. Go 2007 taxes Box 979050St. Go 2007 taxes Louis, MO 63917-9000 Phone. Go 2007 taxes Call the GPO toll-free at 1-866-512-1800 or at 202-512-1800 from the Washington, DC area. Go 2007 taxes Prev  Up  Next   Home   More Online Publications
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The Go 2007 Taxes

Go 2007 taxes 1. Go 2007 taxes   Filing and Paying Business Taxes Table of Contents Introduction Useful Items - You may want to see: Identification NumbersNew EIN. Go 2007 taxes Employee. Go 2007 taxes Other payee. Go 2007 taxes 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. Go 2007 taxes Earning credits in 2013 and 2014. Go 2007 taxes Employment Taxes Excise Taxes Information ReturnsWaiver of penalties. Go 2007 taxes Penalties. Go 2007 taxes Introduction This chapter explains the business taxes you may have to pay and the forms you may have to file. Go 2007 taxes It also discusses taxpayer identification numbers. Go 2007 taxes Table 1-1 lists the benefits of filing electronically. Go 2007 taxes Table 1-2 lists the federal taxes you may have to pay, their due dates, and the forms you use to report them. Go 2007 taxes Table 1-3 provides checklists that highlight the typical forms and schedules you may need to file if you ever go out of business. Go 2007 taxes You may want to get Publication 509, Tax Calendars. Go 2007 taxes It has tax calendars that tell you when to file returns and make tax payments. Go 2007 taxes Useful Items - You may want to see: Publication 505 Tax Withholding and Estimated Tax Form (and Instructions) 1040 U. Go 2007 taxes S. Go 2007 taxes 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. Go 2007 taxes Identification Numbers This section explains three types of taxpayer identification numbers, who needs them, when to use them, and how to get them. Go 2007 taxes Social security number (SSN). Go 2007 taxes   Generally, use your SSN as your taxpayer identification number. Go 2007 taxes You must put this number on each of your individual income tax forms, such as Form 1040 and its schedules. Go 2007 taxes   To apply for an SSN, use Form SS-5, Application for a Social Security Card. Go 2007 taxes This form is available at Social Security Administration (SSA) offices or by calling 1-800-772-1213. Go 2007 taxes It is also available from the SSA website at www. Go 2007 taxes socialsecurity. Go 2007 taxes gov. Go 2007 taxes Individual taxpayer identification number (ITIN). Go 2007 taxes   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. Go 2007 taxes 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. Go 2007 taxes  Internal Revenue Service ITIN Operation P. Go 2007 taxes O. Go 2007 taxes Box 149342 Austin, TX 78714-9342 The exceptions are covered in detail in the instructions for Form W-7. Go 2007 taxes 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. Go 2007 taxes The application is also available in Spanish. Go 2007 taxes The form is available at IRS. Go 2007 taxes gov or you can call 1-800-829-3676 to order the form. Go 2007 taxes    An ITIN is for tax use only. Go 2007 taxes It does not entitle the holder to social security benefits or change the holder's employment or immigration status. Go 2007 taxes Employer identification number (EIN). Go 2007 taxes   You must also have an EIN to use as a taxpayer identification number if you do either of the following. Go 2007 taxes Pay wages to one or more employees. Go 2007 taxes File pension or excise tax returns. Go 2007 taxes   If you must have an EIN, include it along with your SSN on your Schedule C or C-EZ. Go 2007 taxes   You can apply for an EIN: Online by clicking on the Employer ID Numbers (EINs) link at www. Go 2007 taxes irs. Go 2007 taxes gov/businesses/small. Go 2007 taxes The EIN is issued immediately once the application information is validated. Go 2007 taxes By telephone at 1-800-829-4933. Go 2007 taxes By mailing or faxing Form SS-4, Application for Employer Identification Number. Go 2007 taxes New EIN. Go 2007 taxes   You may need to get a new EIN if either the form or the ownership of your business changes. Go 2007 taxes For more information, see Publication 1635, Understanding Your EIN. Go 2007 taxes When you need identification numbers of other persons. Go 2007 taxes   In operating your business, you will probably make certain payments you must report on information returns. Go 2007 taxes These payments are discussed under Information Returns, later in this chapter. Go 2007 taxes You must give the recipient of these payments (the payee) a statement showing the total amount paid during the year. Go 2007 taxes You must include the payee's identification number and your identification number on the returns and statements. Go 2007 taxes Employee. Go 2007 taxes   If you have employees, you must get an SSN from each of them. Go 2007 taxes Record the name and SSN of each employee exactly as they are shown on the employee's social security card. Go 2007 taxes If the employee's name is not correct as shown on the card, the employee should request a new card from the SSA. Go 2007 taxes This may occur if the employee's name was changed due to marriage or divorce. Go 2007 taxes   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. Go 2007 taxes   If your employee does not have an SSN, he or she should file Form SS-5 with the SSA. Go 2007 taxes Other payee. Go 2007 taxes   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. Go 2007 taxes If you must report payments to an organization, such as a corporation or partnership, you must get its EIN. Go 2007 taxes   To get the payee's SSN or EIN, use Form W-9, Request for Taxpayer Identification Number and Certification. Go 2007 taxes   A payee who does not provide you with an identification number may be subject to backup withholding. Go 2007 taxes For information on backup withholding, see the Form W-9 instructions and the General Instructions for Certain Information Returns. Go 2007 taxes Income Tax This part explains whether you have to file an income tax return and when you file it. Go 2007 taxes It also explains how you pay the tax. Go 2007 taxes 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. Go 2007 taxes 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. Go 2007 taxes How Do I File? File your income tax return on Form 1040 and attach Schedule C or Schedule C-EZ. Go 2007 taxes Enter the net profit or loss from Schedule C or Schedule C-EZ on page 1 of Form 1040. Go 2007 taxes Use Schedule C to figure your net profit or loss from your business. Go 2007 taxes If you operated more than one business as a sole proprietorship, you must attach a separate Schedule C for each business. Go 2007 taxes 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. Go 2007 taxes IRS e-file (Electronic Filing) Please click here for the text description of the image. Go 2007 taxes E-file logo You may be able to file your tax returns electronically using an IRS e-file option. Go 2007 taxes Table 1-1 lists the benefits of IRS e-file. Go 2007 taxes IRS e-file uses automation to replace most of the manual steps needed to process paper returns. Go 2007 taxes As a result, the processing of e-file returns is faster and more accurate than the processing of paper returns. Go 2007 taxes As with a paper return, you are responsible for making sure your return contains accurate information and is filed on time. Go 2007 taxes Using e-file does not affect your chances of an IRS examination of your return. Go 2007 taxes You can file most commonly used business forms using IRS e-file. Go 2007 taxes For more information, visit IRS. Go 2007 taxes gov. Go 2007 taxes Electronic signatures. Go 2007 taxes   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. Go 2007 taxes If you file electronically using tax preparation software or a tax professional, you will participate in the Self-Select PIN (personal identification number) program. Go 2007 taxes 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. Go 2007 taxes    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). Go 2007 taxes You will also need to provide your date of birth (DOB). Go 2007 taxes Make sure your DOB is accurate and matches the information on record with the Social Security Administration before you e-file. Go 2007 taxes To do this, check your annual Social Security Statement. Go 2007 taxes   With a Self-Select PIN, there is nothing to sign and nothing to mail—not even your Forms W-2. Go 2007 taxes For more details on the Self-Select PIN program, visit IRS. Go 2007 taxes gov. Go 2007 taxes State returns. Go 2007 taxes   In most states, you can file an electronic state return simultaneously with your federal return. Go 2007 taxes For more information, check with your local IRS office, state tax agency, tax professional, or IRS. Go 2007 taxes gov. Go 2007 taxes Refunds. Go 2007 taxes   You can have your refund check mailed to you, or you can have your refund deposited directly to your checking or savings account. Go 2007 taxes   With e-file, your refund will be issued in half the time as when filing on paper. Go 2007 taxes Most refunds are issued within 3 weeks. Go 2007 taxes If you choose Direct Deposit, you can receive your refund in as few as 10 days. Go 2007 taxes Offset against debts. Go 2007 taxes   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. Go 2007 taxes You will be notified if the refund you claimed has been offset against your debts. Go 2007 taxes Refund inquiries. Go 2007 taxes   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. Go 2007 taxes 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. Go 2007 taxes To check on your refund, do one of the following. Go 2007 taxes Go to IRS. Go 2007 taxes gov and click on Where's My Refund. Go 2007 taxes Call 1-800-829-4477 for automated refund information, and follow the recorded instructions. Go 2007 taxes Call 1-800-829-1954 during the hours shown in your form instructions. Go 2007 taxes Balance due. Go 2007 taxes   If you owe tax, you must pay it by April 15, 2014, to avoid late-payment penalties and interest. Go 2007 taxes You can make your payment electronically by scheduling an electronic funds withdrawal from your checking or savings account or by credit card. Go 2007 taxes Using an Authorized IRS e-file Provider Many tax professionals can electronically file paperless returns for their clients. Go 2007 taxes You have two options. Go 2007 taxes You can prepare your return, take it to an authorized IRS e-file provider, and have the provider transmit it electronically to the IRS. Go 2007 taxes You can have an authorized IRS e-file provider prepare your return and transmit it for you electronically. Go 2007 taxes 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. Go 2007 taxes Depending on the provider and the specific services requested, a fee may be charged. Go 2007 taxes To find an authorized IRS e-file provider near you, go to IRS. Go 2007 taxes gov or look for an “Authorized IRS e-file Provider” sign. Go 2007 taxes Using Your Personal Computer A computer with Internet access is all you need to file your tax return using IRS e-file. Go 2007 taxes When you use your personal computer, you can e-file your return from your home any time of the day or night. Go 2007 taxes Sign your return electronically using a self-selected PIN to complete the process. Go 2007 taxes There is no signature form to submit or Forms W-2 to send in. Go 2007 taxes Free Internet filing options. Go 2007 taxes   More taxpayers can now prepare and e-file their individual income tax returns free using commercial tax preparation software accessible through IRS. Go 2007 taxes gov or www. Go 2007 taxes usa. Go 2007 taxes gov. Go 2007 taxes The IRS is partnering with the tax software industry to offer free preparation and filing services to a significant number of taxpayers. Go 2007 taxes Security and privacy certificate programs will assure tax data is safe and secure. Go 2007 taxes To see if you qualify for these services, visit the Return Preparation and Filing Options page at IRS. Go 2007 taxes gov. Go 2007 taxes   If you cannot use the free services, you can buy tax preparation software at various electronics stores or computer and office supply stores. Go 2007 taxes 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. Go 2007 taxes Filing Through Employers and Financial Institutions Some businesses offer free e-file to their employees, members, or customers. Go 2007 taxes Others offer it for a fee. Go 2007 taxes Ask your employer or financial institution if they offer IRS e-file as an employee, member, or customer benefit. Go 2007 taxes Free Help With Your Return Free help in preparing your return is available nationwide from IRS-trained volunteers. Go 2007 taxes 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. Go 2007 taxes Some locations offer free electronic filing. Go 2007 taxes Table 1-1. Go 2007 taxes Benefits of IRS e-file Accuracy • Your chance of getting an error notice from the IRS is significantly reduced. Go 2007 taxes Security • Your privacy and security are assured. Go 2007 taxes Electronic signatures • Create your own personal identification number (PIN) and file a completely paperless return through your tax preparation software or tax professional. Go 2007 taxes There is nothing to mail. Go 2007 taxes Proof of acceptance • You receive an electronic acknowledgment within 48 hours that the IRS has accepted your return for processing. Go 2007 taxes Fast refunds • You get your refund faster with Direct Deposit—in as few as 10 days. Go 2007 taxes Free Internet filing options • Use IRS. Go 2007 taxes gov to access commercial tax preparation and e-file services available at no cost to eligible taxpayers. Go 2007 taxes Electronic payment options • Convenient, safe, and secure electronic payment options are available. Go 2007 taxes E-file and pay your taxes in a single step. Go 2007 taxes Schedule an electronic funds withdrawal from your checking or savings account (up to and including April 15, 2014) or pay by credit card. Go 2007 taxes Federal/State filing • Prepare and file your federal and state tax returns together and double the benefits you get from e-file. Go 2007 taxes When Is My Tax Return Due? Form 1040 for calendar year 2013 is due by April 15, 2014. Go 2007 taxes 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. Go 2007 taxes If you file late, you may have to pay penalties and interest. Go 2007 taxes If you cannot file your return on time, use Form 4868, Application for Automatic Extension of Time To File U. Go 2007 taxes S. Go 2007 taxes Individual Income Tax Return, to request an automatic 6-month extension. Go 2007 taxes For calendar year taxpayers, this will extend the tax filing due date until October 15. Go 2007 taxes Filing an extension does not extend the time to pay your taxes, only the time to file the tax return. Go 2007 taxes How Do I Pay Income Tax? Federal income tax is a pay-as-you-go tax. Go 2007 taxes You must pay it as you earn or receive income during the year. Go 2007 taxes An employee usually has income tax withheld from his or her pay. Go 2007 taxes If you do not pay your tax through withholding, or do not pay enough tax that way, you might have to pay estimated tax. Go 2007 taxes 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. Go 2007 taxes Use Form 1040-ES to figure and pay the tax. Go 2007 taxes If you do not have to make estimated tax payments, you can pay any tax due when you file your return. Go 2007 taxes For more information on estimated tax, see Publication 505, Tax Withholding and Estimated Tax. Go 2007 taxes What are my payment options?   You can pay your estimated tax electronically using various options. Go 2007 taxes If you pay electronically, there is no need to mail in Form 1040-ES payment vouchers. Go 2007 taxes These options include: Paying electronically through the Electronic Federal Tax Payment System (EFTPS). Go 2007 taxes Paying by authorizing an electronic funds withdrawal when you file Form 1040 electronically. Go 2007 taxes Paying by credit or debit card over the phone or by Internet. Go 2007 taxes 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. Go 2007 taxes EFTPS    To enroll in EFTPS, go to www. Go 2007 taxes eftps. Go 2007 taxes gov or call 1-800-555-4477. Go 2007 taxes When you request a new EIN and you will have a tax obligation, you are automatically enrolled in EFTPS. Go 2007 taxes Benefits of EFTPS: The chance of an error in making your payments is reduced. Go 2007 taxes You receive immediate confirmation of every transaction. Go 2007 taxes Penalty for underpayment of tax. Go 2007 taxes   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. Go 2007 taxes The IRS will figure the penalty for you and send you a bill. Go 2007 taxes 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. Go 2007 taxes For more information, see Publication 505. Go 2007 taxes Self-Employment (SE) Tax Self-employment tax (SE tax) is a social security and Medicare tax primarily for individuals who work for themselves. Go 2007 taxes It is similar to the social security and Medicare taxes withheld from the pay of most wage earners. Go 2007 taxes If you earned income as a statutory employee, you do not pay SE tax on that income. Go 2007 taxes Social security coverage. Go 2007 taxes   Social security benefits are available to self-employed persons just as they are to wage earners. Go 2007 taxes Your payments of SE tax contribute to your coverage under the social security system. Go 2007 taxes Social security coverage provides you with retirement benefits, disability benefits, survivor benefits, and hospital insurance (Medicare) benefits. Go 2007 taxes By not reporting all of your self-employment income, you could cause your social security benefits to be lower when you retire. Go 2007 taxes How to become insured under social security. Go 2007 taxes   You must be insured under the social security system before you begin receiving social security benefits. Go 2007 taxes You are insured if you have the required number of credits (also called quarters of coverage), discussed next. Go 2007 taxes Earning credits in 2013 and 2014. Go 2007 taxes   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. Go 2007 taxes 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). Go 2007 taxes   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. Go 2007 taxes    Making false statements to get or to increase social security benefits may subject you to penalties. Go 2007 taxes The Social Security Administration (SSA) time limit for posting self-employment income. Go 2007 taxes   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. Go 2007 taxes 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. Go 2007 taxes The SSA will not change its records to increase your self-employment income. Go 2007 taxes Who must pay self-employment tax. Go 2007 taxes   You must pay SE tax and file Schedule SE (Form 1040) if either of the following applies. Go 2007 taxes Your net earnings from self-employment (excluding church employee income) were $400 or more. Go 2007 taxes You had church employee income of $108. Go 2007 taxes 28 or more. Go 2007 taxes The SE tax rules apply no matter how old you are and even if you are already receiving social security or Medicare benefits. Go 2007 taxes SE tax rate. Go 2007 taxes   For 2013, the SE tax rate on net earnings is 15. Go 2007 taxes 3% (12. Go 2007 taxes 4% social security tax plus 2. Go 2007 taxes 9% Medicare tax). Go 2007 taxes Maximum earnings subject to SE tax. Go 2007 taxes   Only the first $113,700 of your combined wages, tips, and net earnings in 2013 is subject to any combination of the 12. Go 2007 taxes 4% social security part of SE tax, social security tax, or railroad retirement (tier 1) tax. Go 2007 taxes   All your combined wages, tips, and net earnings in 2013 are subject to any combination of the 2. Go 2007 taxes 9% Medicare part of SE tax, social security tax, or railroad retirement (tier 1) tax. Go 2007 taxes   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. Go 2007 taxes 4% social security part of the SE tax on any of your net earnings. Go 2007 taxes However, you must pay the 2. Go 2007 taxes 9% Medicare part of the SE tax on all your net earnings. Go 2007 taxes Deduct one-half of your SE tax as an adjustment to income on line 27 of Form 1040. Go 2007 taxes   More information. Go 2007 taxes   For information on methods of calculating SE tax, see Chapter 10, Self-Employment Tax. Go 2007 taxes Table 1-2. Go 2007 taxes 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. Go 2007 taxes Self-employment tax Schedule SE File with Form 1040. Go 2007 taxes 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. Go 2007 taxes Social security and Medicare taxes and income tax withholding 941 or 944 April 30, July 31, October 31, and January 313. Go 2007 taxes     See Publication 15. Go 2007 taxes 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. Go 2007 taxes   Last day of February (March 31 if filing electronically)3. Go 2007 taxes Federal unemployment (FUTA) tax 940 January 313. Go 2007 taxes     April 30, July 31, October 31, and January 31, but only if the liability for unpaid tax is more than $500. Go 2007 taxes 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). Go 2007 taxes     Other forms – see the General Instructions for Certain Information Returns. Go 2007 taxes Excise tax See Excise Taxes See the instructions to the forms. Go 2007 taxes 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. Go 2007 taxes For more information, see Publication 509, Tax Calendars. Go 2007 taxes 2 File a separate schedule for each business. Go 2007 taxes 3 See the form instructions if you go out of business, change the form of your business, or stop paying wages. Go 2007 taxes     Employment Taxes If you have employees, you will need to file forms to report employment taxes. Go 2007 taxes Employment taxes include the following items. Go 2007 taxes Social security and Medicare taxes. Go 2007 taxes Federal income tax withholding. Go 2007 taxes Federal unemployment (FUTA) tax. Go 2007 taxes For more information, see Publication 15 (Circular E), Employer's Tax Guide. Go 2007 taxes That publication explains your tax responsibilities as an employer. Go 2007 taxes To help you determine whether the people working for you are your employees, see Publication 15-A, Employer's Supplemental Tax Guide. Go 2007 taxes That publication has information to help you determine whether an individual is an independent contractor or an employee. Go 2007 taxes If you incorrectly classify an employee as an independent contractor, you may be held liable for employment taxes for that worker plus a penalty. Go 2007 taxes An independent contractor is someone who is self-employed. Go 2007 taxes You do not generally have to withhold or pay any taxes on payments made to an independent contractor. Go 2007 taxes 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. Go 2007 taxes Manufacture or sell certain products. Go 2007 taxes Operate certain kinds of businesses. Go 2007 taxes Use various kinds of equipment, facilities, or products. Go 2007 taxes Receive payment for certain services. Go 2007 taxes For more information on excise taxes, see Publication 510, Excise Taxes. Go 2007 taxes Form 720. Go 2007 taxes   The federal excise taxes reported on Form 720, Quarterly Federal Excise Tax Return, consist of several broad categories of taxes, including the following. Go 2007 taxes Environmental taxes on the sale or use of ozone-depleting chemicals and imported products containing or manufactured with these chemicals. Go 2007 taxes Communications and air transportation taxes. Go 2007 taxes Fuel taxes. Go 2007 taxes Tax on the first retail sale of heavy trucks, trailers, and tractors. Go 2007 taxes Manufacturers taxes on the sale or use of a variety of different articles. Go 2007 taxes Tax on indoor tanning services. Go 2007 taxes Form 2290. Go 2007 taxes   There is a federal excise tax on the use of certain trucks, truck tractors, and buses on public highways. Go 2007 taxes The tax applies to vehicles having a taxable gross weight of 55,000 pounds or more. Go 2007 taxes Report the tax on Form 2290, Heavy Highway Vehicle Use Tax Return. Go 2007 taxes For more information, see the Instructions for Form 2290. Go 2007 taxes Depositing excise taxes. Go 2007 taxes   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. Go 2007 taxes For details on depositing excise taxes, see the Instructions for Form 720. Go 2007 taxes Information Returns If you make or receive payments in your business, you may have to report them to the IRS on information returns. Go 2007 taxes 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. Go 2007 taxes You must give a copy of each information return you are required to file to the recipient or payer. Go 2007 taxes In addition to the forms described below, you may have to use other returns to report certain kinds of payments or transactions. Go 2007 taxes For more details on information returns and when you have to file them, see the General Instructions for Certain Information Returns. Go 2007 taxes Form 1099-MISC. Go 2007 taxes   Use Form 1099-MISC, Miscellaneous Income, to report certain payments you make in your business. Go 2007 taxes These payments include the following items. Go 2007 taxes 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. Go 2007 taxes Rent payments of $600 or more, other than rents paid to real estate agents. Go 2007 taxes Prizes and awards of $600 or more that are not for services, such as winnings on TV or radio shows. Go 2007 taxes Royalty payments of $10 or more. Go 2007 taxes Payments to certain crew members by operators of fishing boats. Go 2007 taxes 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. Go 2007 taxes Form W-2. Go 2007 taxes   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. Go 2007 taxes You can file Form W-2 online. Go 2007 taxes For more information about Form W-2, see the General Instructions for Forms W-2 and W-3. Go 2007 taxes Penalties. Go 2007 taxes   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. Go 2007 taxes For more information, see the General Instructions for Certain Information Returns. Go 2007 taxes Failure to file information returns. Go 2007 taxes This penalty applies if you do not file information returns by the due date, do not include all required information, or report incorrect information. Go 2007 taxes Failure to furnish correct payee statements. Go 2007 taxes 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. Go 2007 taxes Waiver of penalties. Go 2007 taxes   These penalties will not apply if you can show that the failure was due to reasonable cause and not willful neglect. Go 2007 taxes   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. Go 2007 taxes (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. Go 2007 taxes ) Form 8300. Go 2007 taxes   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. Go 2007 taxes Cash includes U. Go 2007 taxes S. Go 2007 taxes and foreign coin and currency. Go 2007 taxes It also includes certain monetary instruments such as cashier's and traveler's checks and money orders. Go 2007 taxes Cash does not include a check drawn on an individual's personal account (personal check). Go 2007 taxes For more information, see Publication 1544, Reporting Cash Payments of Over $10,000 (Received in a Trade or Business). Go 2007 taxes Penalties. Go 2007 taxes   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. Go 2007 taxes Table 1-3. Go 2007 taxes Going Out of Business Checklists (Note. Go 2007 taxes The following checklists highlight the typical final forms and schedules you may need to file if you ever go out of business. Go 2007 taxes For more information, see the instructions for the listed forms. Go 2007 taxes ) 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. Go 2007 taxes   □ 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. Go 2007 taxes   □ File Form 8594 with your Form 1040 if you sold your business. Go 2007 taxes Self-employment tax □ File Schedule SE with your Form 1040 for the year in which you go out of business. Go 2007 taxes Employment taxes □ File Form 941 (or Form 944) for the calendar quarter in which you make final wage payments. Go 2007 taxes Note. Go 2007 taxes 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. Go 2007 taxes   □ File Form 940 for the calendar year in which final wages were paid. Go 2007 taxes Note. Go 2007 taxes Do not forget to check box d, Final: Business closed or stopped paying wages, under Type of Return. Go 2007 taxes Information returns □ Provide Forms W-2 to your employees for the calendar year in which you make final wage payments. Go 2007 taxes Note. Go 2007 taxes These forms are generally due by the due date of your final Form 941 or Form 944. Go 2007 taxes   □ File Form W-3 to file Forms W-2. Go 2007 taxes Note. Go 2007 taxes These forms are generally due within 1 month after the due date of your final Form 941 or Form 944. Go 2007 taxes   □ 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. Go 2007 taxes   □ File Form 1096 to file Forms 1099-MISC. Go 2007 taxes Prev  Up  Next   Home   More Online Publications