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Irs 1040ez 2010

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Irs 1040ez 2010

Irs 1040ez 2010 Publication 596 - Introductory Material Table of Contents Future Developments What is the EIC? Can I Claim the EIC? Do I Need This Publication? Do I Have To Have A Child To Qualify For The EIC? How Do I Figure the Amount of EIC? How Can I Quickly Locate Specific information? Is There Help Online? What's New for 2013 Reminders Future Developments For the latest information about developments related to Publication 596, such as legislation enacted after it was published, go to www. Irs 1040ez 2010 irs. Irs 1040ez 2010 gov/pub596. Irs 1040ez 2010 What is the EIC? The earned income credit (EIC) is a tax credit for certain people who work and have earned income under $51,567. Irs 1040ez 2010 A tax credit usually means more money in your pocket. Irs 1040ez 2010 It reduces the amount of tax you owe. Irs 1040ez 2010 The EIC may also give you a refund. Irs 1040ez 2010 Can I Claim the EIC? To claim the EIC, you must meet certain rules. Irs 1040ez 2010 These rules are summarized in Table 1. Irs 1040ez 2010 Table 1. Irs 1040ez 2010 Earned Income Credit in a Nutshell First, you must meet all the rules in this column. Irs 1040ez 2010 Second, you must meet all the rules in one of these columns, whichever applies. Irs 1040ez 2010 Third, you must meet the rule in this column. Irs 1040ez 2010 Chapter 1. Irs 1040ez 2010  Rules for Everyone Chapter 2. Irs 1040ez 2010  Rules If You Have a Qualifying Child Chapter 3. Irs 1040ez 2010  Rules If You Do Not Have a Qualifying Child Chapter 4. Irs 1040ez 2010  Figuring and Claiming the EIC 1. Irs 1040ez 2010 Your adjusted gross income (AGI) must be less than:  • $46,227 ($51,567 for married filing jointly) if you have three or more qualifying children,  • $43,038 ($48,378 for married filing jointly) if you have two qualifying children,  • $37,870 ($43,210 for married filing jointly) if you have one qualifying child, or   • $14,340 ($19,680 for married filing jointly) if you do not have a qualifying child. Irs 1040ez 2010 2. Irs 1040ez 2010 You must have a valid social security number. Irs 1040ez 2010   3. Irs 1040ez 2010 Your filing status cannot be Married filing separately. Irs 1040ez 2010   4. Irs 1040ez 2010 You must be a U. Irs 1040ez 2010 S. Irs 1040ez 2010 citizen or resident alien all year. Irs 1040ez 2010   5. Irs 1040ez 2010 You cannot file Form 2555 or Form 2555-EZ (relating to foreign earned income). Irs 1040ez 2010   6. Irs 1040ez 2010 Your investment income must be $3,300 or less. Irs 1040ez 2010    7. Irs 1040ez 2010 You must have earned income. Irs 1040ez 2010 8. Irs 1040ez 2010 Your child must meet the relationship, age, residency, and joint return tests. Irs 1040ez 2010   9. Irs 1040ez 2010 Your qualifying child cannot be used by more than one person to claim the EIC. Irs 1040ez 2010   10. Irs 1040ez 2010 You cannot be a qualifying child of another person. Irs 1040ez 2010 11. Irs 1040ez 2010 You must be at least age 25 but under age 65. Irs 1040ez 2010    12. Irs 1040ez 2010 You cannot be the dependent of another person. Irs 1040ez 2010   13. Irs 1040ez 2010 You cannot be a qualifying child of another person. Irs 1040ez 2010   14. Irs 1040ez 2010 You must have lived in the United States more than half of the year. Irs 1040ez 2010 15. Irs 1040ez 2010 Your earned income must be less than:  • $46,227 ($51,567 for married filing jointly) if you have three or more qualifying children,  • $43,038 ($48,378 for married filing jointly) if you have two qualifying children,  • $37,870 ($43,210 for married filing jointly) if you have one qualifying child, or  • $14,340 ($19,680 for married filing jointly) if you do not have a qualifying child. Irs 1040ez 2010 Do I Need This Publication? Certain people who file Form 1040 must use Worksheet 1 in this publication, instead of Step 2 in their Form 1040 instructions, when they are checking whether they can take the EIC. Irs 1040ez 2010 You are one of those people if any of the following statements are true for 2013. Irs 1040ez 2010 You are filing Schedule E (Form 1040). Irs 1040ez 2010 You are reporting income from the rental of personal property not used in a trade or business. Irs 1040ez 2010 You are reporting income on Form 1040, line 21, from Form 8814 (relating to election to report child's interest and dividends). Irs 1040ez 2010 You are reporting an amount on Form 1040, line 13, that includes an amount from Form 4797. Irs 1040ez 2010 If none of the statements above apply to you, your tax form instructions have all the information you need to find out if you can claim the EIC and to figure the amount of your EIC. Irs 1040ez 2010 You do not need this publication. Irs 1040ez 2010 But you can read it to find out whether you can take the EIC and to learn more about the EIC. Irs 1040ez 2010 Do I Have To Have A Child To Qualify For The EIC? No, you can qualify for the EIC without a qualifying child if you are at least age 25 but under age 65 and your earned income is less than $14,340 ($19,680 if married filing jointly). Irs 1040ez 2010 See chapter 3. Irs 1040ez 2010 How Do I Figure the Amount of EIC? If you can claim the EIC, you can either have the IRS figure the amount of your credit, or you can figure it yourself. Irs 1040ez 2010 To figure it yourself, you can complete a worksheet in the instructions for the form you file. Irs 1040ez 2010 To find out how to have the IRS figure it for you, see chapter 4. Irs 1040ez 2010 How Can I Quickly Locate Specific information? You can use the index to look up specific information. Irs 1040ez 2010 In most cases, index entries will point you to headings, tables, or a worksheet. Irs 1040ez 2010 Is There Help Online? Yes. Irs 1040ez 2010 You can use the EITC Assistant at www. Irs 1040ez 2010 irs. Irs 1040ez 2010 gov/eitc to find out if you may be eligible for the credit. Irs 1040ez 2010 The EITC Assistant is available in English and Spanish. Irs 1040ez 2010 What's New for 2013 Earned income amount is more. Irs 1040ez 2010 The maximum amount of income you can earn and still get the credit has increased. Irs 1040ez 2010 You may be able to take the credit if: You have three or more qualifying children and you earned less than $46,227 ($51,567 if married filing jointly), You have two qualifying children and you earned less than $43,038 ($48,378 if married filing jointly), You have one qualifying child and you earned less than $37,870 ($43,210 if married filing jointly), or You do not have a qualifying child and you earned less than $14,340 ($19,680 if married filing jointly). Irs 1040ez 2010 Your adjusted gross income also must be less than the amount in the above list that applies to you. Irs 1040ez 2010 For details, see Rules 1 and 15. Irs 1040ez 2010 Investment income amount is more. Irs 1040ez 2010 The maximum amount of investment income you can have and still get the credit has increased to $3,300. Irs 1040ez 2010 See Rule 6—Your Investment Income Must Be $3,300 or Less . Irs 1040ez 2010 Reminders Increased EIC on certain joint returns. Irs 1040ez 2010 . Irs 1040ez 2010  A married person filing a joint return may get more EIC than someone with the same income but a different filing status. Irs 1040ez 2010 As a result, the EIC table has different columns for married persons filing jointly than for everyone else. Irs 1040ez 2010 When you look up your EIC in the EIC Table, be sure to use the correct column for your filing status and the number of children you have. Irs 1040ez 2010 Earned income credit has no effect on certain welfare benefits. Irs 1040ez 2010  Any refund you receive because of the EIC cannot be counted as income when determining whether you or anyone else is eligible for benefits or assistance, or how much you or anyone else can receive, under any federal program or under any state or local program financed in whole or in part with federal funds. Irs 1040ez 2010 These programs include the following. Irs 1040ez 2010 Temporary Assistance for Needy Families (TANF). Irs 1040ez 2010 Medicaid. Irs 1040ez 2010 Supplemental security income (SSI). Irs 1040ez 2010 Supplemental Nutrition Assistance Program (food stamps). Irs 1040ez 2010 Low-income housing. Irs 1040ez 2010 In addition, when determining eligibility, the refund cannot be counted as a resource for at least 12 months after you receive it. Irs 1040ez 2010 Check with your local benefit coordinator to find out if your refund will affect your benefits. Irs 1040ez 2010 Do not overlook your state credit. Irs 1040ez 2010  If you can claim the EIC on your federal income tax return, you may be able to take a similar credit on your state or local income tax return. Irs 1040ez 2010 For a list of states that offer a state EIC, go to www. Irs 1040ez 2010 irs. Irs 1040ez 2010 gov/eitc. Irs 1040ez 2010 EIC questioned by IRS. Irs 1040ez 2010  The IRS may ask you to provide documents to prove you are entitled to claim the EIC. Irs 1040ez 2010 We will tell you what documents to send us. Irs 1040ez 2010 These may include: birth certificates, school records, etc. Irs 1040ez 2010 The process of establishing your eligibility will delay your refund. Irs 1040ez 2010 Spanish version of Publication 596. Irs 1040ez 2010  You can order Publicación 596SP, Crédito por Ingreso del Trabajo, from the IRS. Irs 1040ez 2010 It is a Spanish translation of Publication 596. Irs 1040ez 2010 See How To Get Tax Help to find out how to order this and other IRS forms and publications. Irs 1040ez 2010 Photographs of missing children. Irs 1040ez 2010  The Internal Revenue Service is a proud partner with the National Center for Missing and Exploited Children. Irs 1040ez 2010 Photographs of missing children selected by the Center may appear in this publication on pages that would otherwise be blank. Irs 1040ez 2010 You can help bring these children home by looking at the photographs and calling 1-800-THE-LOST (1-800-843-5678) if you recognize a child. Irs 1040ez 2010 Comments and suggestions. Irs 1040ez 2010  We welcome your comments about this publication and your suggestions for future editions. Irs 1040ez 2010 You can write to us at the following address:  Internal Revenue Service Individual Forms and Publications Branch 1111 Constitution Ave. Irs 1040ez 2010 NW, IR-6526 Washington, DC 20224 We respond to many letters by telephone. Irs 1040ez 2010 Therefore, it would be helpful if you would include your daytime phone number, including the area code, in your correspondence. Irs 1040ez 2010 You can send your comments from www. Irs 1040ez 2010 irs. Irs 1040ez 2010 gov/formspubs/. Irs 1040ez 2010 Click on “More Information” and then on “Comment on Tax Forms and Publications. Irs 1040ez 2010 ” Although we cannot respond individually to each comment received, we do appreciate your feedback and will consider your comments as we revise our tax products. Irs 1040ez 2010 Ordering forms and publications. Irs 1040ez 2010  Visit www. Irs 1040ez 2010 irs. Irs 1040ez 2010 gov/formspubs/ to download forms and publications, call 1-800-TAX-FORM (1-800-829-3676), or write to the address below and receive a response within 10 days after your request is received. Irs 1040ez 2010  Internal Revenue Service 1201 N. Irs 1040ez 2010 Mitsubishi Motorway Bloomington, IL 61705-6613 Tax questions. Irs 1040ez 2010  If you have a tax question, check the information available on IRS. Irs 1040ez 2010 gov or call 1-800-829-1040. Irs 1040ez 2010 We cannot answer tax questions sent to either of the above addresses. Irs 1040ez 2010 Prev  Up  Next   Home   More Online Publications
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The Irs 1040ez 2010

Irs 1040ez 2010 6. Irs 1040ez 2010   Retail Tax on Heavy Trucks, Trailers, and Tractors Table of Contents Highway vehicle. Irs 1040ez 2010 Vehicles not considered highway vehicles. Irs 1040ez 2010 Idling reduction device. Irs 1040ez 2010 Separate purchase. Irs 1040ez 2010 Leases. Irs 1040ez 2010 Exported vehicle. Irs 1040ez 2010 Tax on resale of tax-paid trailers and semitrailers. Irs 1040ez 2010 Use treated as sale. Irs 1040ez 2010 Sale. Irs 1040ez 2010 Long-term lease. Irs 1040ez 2010 Short-term lease. Irs 1040ez 2010 Related person. Irs 1040ez 2010 Exclusions from tax base. Irs 1040ez 2010 Sales not at arm's length. Irs 1040ez 2010 Installment sales. Irs 1040ez 2010 Repairs and modifications. Irs 1040ez 2010 Further manufacture. Irs 1040ez 2010 Rail trailers and rail vans. Irs 1040ez 2010 Parts and accessories. Irs 1040ez 2010 Trash containers. Irs 1040ez 2010 House trailers. Irs 1040ez 2010 Camper coaches or bodies for self-propelled mobile homes. Irs 1040ez 2010 Farm feed, seed, and fertilizer equipment. Irs 1040ez 2010 Ambulances and hearses. Irs 1040ez 2010 Truck-tractors. Irs 1040ez 2010 Concrete mixers. Irs 1040ez 2010 Registration requirement. Irs 1040ez 2010 Further manufacture. Irs 1040ez 2010 A tax of 12% of the sales price is imposed on the first retail sale of the following articles, including related parts and accessories sold on or in connection with, or with the sale of, the articles. Irs 1040ez 2010 Truck chassis and bodies. Irs 1040ez 2010 Truck trailer and semitrailer chassis and bodies. Irs 1040ez 2010 Tractors of the kind chiefly used for highway transportation in combination with a trailer or semitrailer. Irs 1040ez 2010 A truck is a highway vehicle primarily designed to transport its load on the same chassis as the engine, even if it is equipped to tow a vehicle, such as a trailer or semitrailer. Irs 1040ez 2010 A tractor is a highway vehicle designed to tow a vehicle, such as a trailer or semitrailer. Irs 1040ez 2010 A tractor may carry incidental items of cargo when towing or limited amounts of cargo when not towing. Irs 1040ez 2010 A sale of a truck, truck trailer, or semitrailer is considered a sale of a chassis and a body. Irs 1040ez 2010 The seller is liable for the tax. Irs 1040ez 2010 Chassis or body. Irs 1040ez 2010   A chassis or body is taxable only if you sell it for use as a component part of a highway vehicle that is a truck, truck trailer or semitrailer, or a tractor of the kind chiefly used for highway transportation in combination with a trailer or semitrailer. Irs 1040ez 2010 Highway vehicle. Irs 1040ez 2010   A highway vehicle is any self-propelled vehicle designed to carry a load over public highways, whether or not it is also designed to perform other functions. Irs 1040ez 2010 Examples of vehicles designed to carry a load over public highways are passenger automobiles, motorcycles, buses, and highway-type trucks and truck tractors. Irs 1040ez 2010 A vehicle is a highway vehicle even though the vehicle's design allows it to perform a highway transportation function for only one of the following. Irs 1040ez 2010 A particular type of load, such as passengers, furnishings, and personal effects (as in a house, office, or utility trailer). Irs 1040ez 2010 A special kind of cargo, goods, supplies, or materials. Irs 1040ez 2010 Some off-highway task unrelated to highway transportation, except as discussed next. Irs 1040ez 2010 Vehicles not considered highway vehicles. Irs 1040ez 2010   Generally, the following kinds of vehicles are not considered highway vehicles for purposes of the retail tax. Irs 1040ez 2010 Specially designed mobile machinery for nontransportation functions. Irs 1040ez 2010 A self-propelled vehicle is not a highway vehicle if all the following apply. Irs 1040ez 2010 The chassis has permanently mounted to it machinery or equipment used to perform certain operations (construction, manufacturing, drilling, mining, timbering, processing, farming, or similar operations) if the operation of the machinery or equipment is unrelated to transportation on or off the public highways. Irs 1040ez 2010 The chassis has been specially designed to serve only as a mobile carriage and mount (and power source, if applicable) for the machinery or equipment, whether or not the machinery or equipment is in operation. Irs 1040ez 2010 The chassis could not, because of its special design and without substantial structural modification, be used as part of a vehicle designed to carry any other load. Irs 1040ez 2010 Vehicles specially designed for off-highway transportation. Irs 1040ez 2010 A vehicle is not treated as a highway vehicle if the vehicle is specially designed for the primary function of transporting a particular type of load other than over the public highway and because of this special design, the vehicles's capability to transport a load over a public highway is substantially limited or impaired. Irs 1040ez 2010 To make this determination, you can take into account the vehicle's size, whether the vehicle is subject to licensing, safety, or other requirements, and whether the vehicle can transport a load at a sustained speed of at least 25 miles per hour. Irs 1040ez 2010 It does not matter that the vehicle can carry heavier loads off highway than it is allowed to carry over the highway. Irs 1040ez 2010 Nontransportation trailers and semitrailers. Irs 1040ez 2010 A trailer or semitrailer is not treated as a highway vehicle if it is specially designed to function only as an enclosed stationary shelter for carrying on a nontransportation function at an off-highway site. Irs 1040ez 2010 For example, a trailer that is capable only of functioning as an office for an off-highway construction operation is not a highway vehicle. Irs 1040ez 2010 Gross vehicle weight. Irs 1040ez 2010   The tax does not apply to truck chassis and bodies suitable for use with a vehicle that has a gross vehicle weight (defined below) of 33,000 pounds or less. Irs 1040ez 2010 It also does not apply to truck trailer and semitrailer chassis and bodies suitable for use with a trailer or semitrailer that has a gross vehicle weight of 26,000 pounds or less. Irs 1040ez 2010 Tractors that have a gross vehicle weight of 19,500 pounds or less and a gross combined weight of 33,000 pounds or less are excluded from the 12% retail tax. Irs 1040ez 2010   The following four classifications of truck body types meet the suitable for use standard and will be excluded from the retail excise tax. Irs 1040ez 2010 Platform truck bodies 21 feet or less in length. Irs 1040ez 2010 Dry freight and refrigerated truck van bodies 24 feet or less in length. Irs 1040ez 2010 Dump truck bodies with load capacities of 8 cubic yards or less. Irs 1040ez 2010 Refuse packer truck bodies with load capacities of 20 cubic yards or less. Irs 1040ez 2010 For more information on these classifications, see Revenue Procedure 2005-19, which is on page 832 of I. Irs 1040ez 2010 R. Irs 1040ez 2010 B. Irs 1040ez 2010 2005-14 at www. Irs 1040ez 2010 irs. Irs 1040ez 2010 gov/pub/irs-irbs/irb05-14. Irs 1040ez 2010 pdf. Irs 1040ez 2010   The gross vehicle weight means the maximum total weight of a loaded vehicle. Irs 1040ez 2010 Generally, this maximum total weight is the gross vehicle weight rating provided by the manufacturer or determined by the seller of the completed article. Irs 1040ez 2010 The seller's gross vehicle weight rating is determined solely on the basis of the strength of the chassis frame and the axle capacity and placement. Irs 1040ez 2010 The seller may not take into account any readily attachable components (such as tires or rim assemblies) in determining the gross vehicle weight. Irs 1040ez 2010 See Regulations section 145. Irs 1040ez 2010 4051-1(e)(3) for more information. Irs 1040ez 2010 Parts or accessories. Irs 1040ez 2010   The tax applies to parts or accessories sold on or in connection with, or with the sale of, a taxable article. Irs 1040ez 2010 For example, if at the time of the sale by the retailer, the part or accessory has been ordered from the retailer, the part or accessory will be considered as sold in connection with the sale of the vehicle. Irs 1040ez 2010 The tax applies in this case whether or not the retailer bills the parts or accessories separately. Irs 1040ez 2010   If the retailer sells a taxable chassis, body, or tractor without parts or accessories considered essential for the operation or appearance of the taxable article, the sale of the parts or accessories by the retailer to the purchaser is considered made in connection with the sale of the taxable article even though they are shipped separately, at the same time, or on a different date. Irs 1040ez 2010 The tax applies unless there is evidence to the contrary. Irs 1040ez 2010 For example, if a retailer sells to any person a chassis and the bumpers for the chassis, or sells a taxable tractor and the fifth wheel and attachments, the tax applies to the parts or accessories regardless of the method of billing or the time at which the shipments were made. Irs 1040ez 2010 The tax does not apply to parts and accessories that are spares or replacements. Irs 1040ez 2010   The tax imposed on parts and accessories sold on or in connection with the taxable articles listed earlier and the tax imposed on the separate purchase of parts and accessories (discussed next) for the taxable articles listed earlier do not apply to an idling reduction device or insulation that has an R value of at least R35 per inch. Irs 1040ez 2010 Idling reduction device. Irs 1040ez 2010   An idling reduction device is any device or system of devices that provide the tractor with services, such as heat, air conditioning, and electricity, without the use of the main drive engine while the tractor is temporarily parked or stationary. Irs 1040ez 2010 The device must be affixed to the tractor and determined by the Administrator of the EPA, in consultation with the Secretary of Energy and Secretary of Transportation, to reduce idling while parked or stationary. Irs 1040ez 2010 The EPA discusses idling reduction technologies on its website at www. Irs 1040ez 2010 epa. Irs 1040ez 2010 gov/smartway/technology/idling. Irs 1040ez 2010 htm. Irs 1040ez 2010 Separate purchase. Irs 1040ez 2010   The tax generally applies to the price of a part or accessory and its installation if the following conditions are met. Irs 1040ez 2010 The owner, lessee, or operator of any vehicle that contains a taxable article installs any part or accessory on the vehicle. Irs 1040ez 2010 The installation occurs within 6 months after the vehicle is first placed in service. Irs 1040ez 2010   The owners of the trade or business installing the parts or accessories are secondarily liable for the tax. Irs 1040ez 2010   A vehicle is placed in service on the date the owner takes actual possession of the vehicle. Irs 1040ez 2010 This date is established by a signed delivery ticket or other comparable document indicating delivery to and acceptance by the owner. Irs 1040ez 2010   The tax does not apply if the installed part or accessory is a replacement part or accessory. Irs 1040ez 2010 The tax also does not apply if the total price of the parts and accessories, including installation charges, during the 6-month period is $1,000 or less. Irs 1040ez 2010 However, if the total price is more than $1,000, the tax applies to the cost of all parts and accessories (and installation charges) during that period. Irs 1040ez 2010 Example. Irs 1040ez 2010 You bought a taxable vehicle and placed it in service on April 8. Irs 1040ez 2010 On May 3, you bought and installed parts and accessories at a cost of $850. Irs 1040ez 2010 On July 15, you bought and installed parts and accessories for $300. Irs 1040ez 2010 Tax of $138 (12% of $1,150) applies on July 15. Irs 1040ez 2010 Also, tax will apply to any costs of additional parts and accessories installed on the vehicle before October 8. Irs 1040ez 2010 First retail sale defined. Irs 1040ez 2010   The sale of an article is treated as the first retail sale, and the seller will be liable for the tax imposed on the sale unless one of the following exceptions applies. Irs 1040ez 2010 There has been a prior taxable sale, lease, or use of the article (however, see Tax on resale of tax-paid trailers and semitrailers, later). Irs 1040ez 2010 The sale qualifies as a tax-free sale under section 4221 (see Sales exempt from tax, later). Irs 1040ez 2010 The seller in good faith accepts from the purchaser a statement signed under penalties of perjury and executed in good faith that the purchaser intends to resell the article or lease it on a long-term basis. Irs 1040ez 2010 There is no registration requirement. Irs 1040ez 2010 Leases. Irs 1040ez 2010   A long-term lease (a lease with a term of 1 year or more, taking into account options to renew) before a first retail sale is treated as a taxable sale. Irs 1040ez 2010 The tax is imposed on the lessor at the time of the lease. Irs 1040ez 2010   A short-term lease (a lease with a term of less than 1 year, taking into account options to renew) before a first retail sale is treated as a taxable use. Irs 1040ez 2010 The tax is imposed on the lessor at the time of the lease. Irs 1040ez 2010 Exported vehicle. Irs 1040ez 2010   A vehicle exported before its first retail sale, used in a foreign country, and then returned to the United States is subject to the retail tax on its first domestic use or retail sale after importation. Irs 1040ez 2010 Tax on resale of tax-paid trailers and semitrailers. Irs 1040ez 2010   The tax applies to a trailer or semitrailer resold within 6 months after having been sold in a taxable sale. Irs 1040ez 2010 The seller liable for the tax on the resale can claim a credit equal to the tax paid on the prior taxable sale. Irs 1040ez 2010 The credit cannot exceed the tax on the resale. Irs 1040ez 2010 See Regulations section 145. Irs 1040ez 2010 4052-1(a)(4) for information on the conditions to allowance for the credit. Irs 1040ez 2010 Use treated as sale. Irs 1040ez 2010   If any person uses a taxable article before the first retail sale of the article, that person is liable for the tax as if the article had been sold at retail by that person. Irs 1040ez 2010 Figure the tax on the price at which similar articles are sold in the ordinary course of trade by retailers. Irs 1040ez 2010 The tax attaches when the use begins. Irs 1040ez 2010   If the seller of an article regularly sells the articles at retail in arm's-length transactions, figure the tax on its use on the lowest established retail price for the articles in effect at the time of the taxable use. Irs 1040ez 2010   If the seller of an article does not regularly sell the articles at retail in arm's-length transactions, a constructive price on which the tax is figured will be determined by the IRS after considering the selling practices and price structures of sellers of similar articles. Irs 1040ez 2010   If a seller of an article incurs liability for tax on the use of the article and later sells or leases the article in a transaction that otherwise would be taxable, liability for tax is not incurred on the later sale or lease. Irs 1040ez 2010 Presumptive retail sales price. Irs 1040ez 2010   There are rules to ensure that the tax base of transactions considered to be taxable sales includes either an actual or presumed markup percentage. Irs 1040ez 2010 If the person liable for tax is the vehicle's manufacturer, producer, or importer, the following discussions show how you figure the presumptive retail sales price depending on the type of transaction and the persons involved in the transaction. Irs 1040ez 2010 Table 6-1 outlines the appropriate tax base calculation for various transactions. Irs 1040ez 2010   The presumed markup percentage to be used for trucks and truck-tractors is 4%. Irs 1040ez 2010 But for truck trailers and semitrailers and remanufactured trucks and tractors, the presumed markup percentage is zero. Irs 1040ez 2010 Sale. Irs 1040ez 2010   For a taxable sale by a manufacturer, producer, importer, or related person, you generally figure the tax on a tax base of the sales price plus an amount equal to the presumed markup percentage times that sales price. Irs 1040ez 2010 Long-term lease. Irs 1040ez 2010   In the case of a long-term lease by a manufacturer, producer, importer, or related person, figure the tax on a tax base of the constructive sales price plus an amount equal to the presumed markup percentage times the constructive sales price. Irs 1040ez 2010 Short-term lease. Irs 1040ez 2010   When a manufacturer, producer, importer, or related person leases an article in a short-term lease considered a taxable use, figure the tax on a constructive sales price at which those or similar articles generally are sold in the ordinary course of trade by retailers. Irs 1040ez 2010   But if the lessor in this situation regularly sells articles at retail in arm's-length transactions, figure the tax on the lowest established retail price in effect at the time of the taxable use. Irs 1040ez 2010   If a person other than the manufacturer, producer, importer, or related person leases an article in a short-term lease considered a taxable use, figure the tax on a tax base of the price for which the article was sold to the lessor plus the cost of parts and accessories installed by the lessor and a presumed markup percentage. Irs 1040ez 2010 Related person. Irs 1040ez 2010   A related person is any member of the same controlled group as the manufacturer, producer, or importer. Irs 1040ez 2010 Do not treat as a related person a person that sells the articles through a permanent retail establishment in the normal course of being a retailer if that person has records to prove the article was sold for a price that included a markup equal to or greater than the presumed markup percentage. Irs 1040ez 2010 Table 6-1. Irs 1040ez 2010 Tax Base IF the transaction is a. Irs 1040ez 2010 . Irs 1040ez 2010 . Irs 1040ez 2010 THEN figuring the base by using the. Irs 1040ez 2010 . Irs 1040ez 2010 . Irs 1040ez 2010 Sale by the manufacturer, producer, importer, or related person Sales price plus (presumed markup percentage × sales price) Sale by the dealer Total consideration paid for the item including any charges incident to placing it in a condition ready for use Long-term lease by the manufacturer, producer, importer, or related person Constructive sales price plus (presumed markup percentage × constructive sales price) Short-term lease by the manufacturer, producer, importer, or related person Constructive sales price at which such or similar articles are sold Short-term lease by a lessor other than the manufacturer, producer, importer, or related person Price for which the article was sold to the lessor plus the cost of parts and accessories installed by the lessor plus a presumed markup percentage Short-term lease where the articles are regularly sold at arm's length Lowest established retail price in effect at the time of the taxable use General rule for sales by dealers to the consumer. Irs 1040ez 2010   For a taxable sale, other than a long-term lease, by a person other than a manufacturer, producer, importer, or related person, your tax base is the retail sales price as discussed next under Determination of tax base. Irs 1040ez 2010   When you sell an article to the consumer, generally you do not add a presumed markup to the tax base. Irs 1040ez 2010 However, you do add a markup if all the following apply. Irs 1040ez 2010 You do not perform any significant activities relating to the processing of the sale of a taxable article. Irs 1040ez 2010 The main reason for processing the sale through you is to avoid or evade the presumed markup. Irs 1040ez 2010 You do not have records proving that the article was sold for a price that included a markup equal to or greater than the presumed markup percentage. Irs 1040ez 2010 In these situations, your tax base is the sales price plus an amount equal to the presumed markup percentage times that selling price. Irs 1040ez 2010 Determination of tax base. Irs 1040ez 2010   These rules apply to both normal retail sales price and presumptive retail sales price computations. Irs 1040ez 2010 To arrive at the tax base, the price is the total consideration paid (including trade-in allowance) for the item and includes any charge incident to placing the article in a condition ready for use. Irs 1040ez 2010 However, see Presumptive retail sales price, earlier. Irs 1040ez 2010 Exclusions from tax base. Irs 1040ez 2010   Exclude from the tax base the retail excise tax imposed on the sale. Irs 1040ez 2010 Exclude any state or local retail sales tax if stated as a separate charge from the price whether the sales tax is imposed on the seller or purchaser. Irs 1040ez 2010 Also exclude the value of any used component of the article furnished by the first user of the article. Irs 1040ez 2010   Exclude charges for transportation, delivery, insurance, and installation (other than installation charges for parts and accessories, discussed earlier) and other expenses incurred in connection with the delivery of an article to a purchaser. Irs 1040ez 2010 These expenses are those incurred in delivery from the retail dealer to the customer. Irs 1040ez 2010 In the case of delivery directly from the manufacturer to the dealer's customer, include the transportation and delivery charges to the extent the charges do not exceed what it would have cost to ship the article to the dealer. Irs 1040ez 2010   Exclude amounts charged for machinery or equipment that does not contribute to the highway transportation function of the vehicle, provided those charges are supported by adequate records. Irs 1040ez 2010 For example, for an industrial vacuum loader vehicle, exclude amounts charged for the vacuum pump and hose, filter system, material separator, silencer or muffler, control cabinet, and ladder. Irs 1040ez 2010 Similarly, for a sewer cleaning vehicle, exclude amounts charged for the high pressure water pump, hose components, and the vacuum pipe. Irs 1040ez 2010 Sales not at arm's length. Irs 1040ez 2010   For any taxable article sold (not at arm's length) at less than the fair market price, figure the excise tax on the price for which similar articles are sold at retail in the ordinary course of trade. Irs 1040ez 2010   A sale is not at arm's length if either of the following apply. Irs 1040ez 2010 One of the parties is controlled (in law or in fact) by the other or there is common control, whether or not the control is actually exercised to influence the sales price. Irs 1040ez 2010 The sale is made under special arrangements between a seller and a purchaser. Irs 1040ez 2010 Installment sales. Irs 1040ez 2010   If the first retail sale is an installment sale, or other form of sale in which the sales price is paid in installments, tax liability arises at the time of the sale. Irs 1040ez 2010 The tax is figured on the entire sales price. Irs 1040ez 2010 No part of the tax is deferred because the sales price is paid in installments. Irs 1040ez 2010 Repairs and modifications. Irs 1040ez 2010   The tax does not apply to the sale or use of an article that has been repaired or modified unless the cost of the repairs and modifications is more than 75% of the retail price of a comparable new article. Irs 1040ez 2010 This includes modifications that change the transportation function of an article or restore a wrecked article to a functional condition. Irs 1040ez 2010 However, this exception generally does not apply to an article that was not subject to the tax when it was new. Irs 1040ez 2010 Further manufacture. Irs 1040ez 2010   The tax does not apply to the use by a person of a taxable article as material in the manufacture or production of, or as a component part of, another article to be manufactured or produced by that person. Irs 1040ez 2010 Do not treat a person as engaged in the manufacture of any article merely because that person combines the article with a: Coupling device (including any fifth wheel); Wrecker crane; Loading and unloading equipment (including any crane, hoist, winch, or power liftgate); Aerial ladder or tower; Ice and snow control equipment; Earth moving, excavation, and construction equipment; Spreader; Sleeper cab; Cab shield; or Wood or metal floor. Irs 1040ez 2010 Combining an article with an item in this list does not give rise to taxability. Irs 1040ez 2010 However, see Parts or accessories discussed earlier. Irs 1040ez 2010 Articles exempt from tax. Irs 1040ez 2010   The tax on heavy trucks, trailers, and tractors does not apply to sales of the articles described in the following discussions. Irs 1040ez 2010 Rail trailers and rail vans. Irs 1040ez 2010   This is any chassis or body of a trailer or semitrailer designed for use both as a highway vehicle and a railroad car (including any parts and accessories designed primarily for use on and in connection with it). Irs 1040ez 2010 Do not treat a piggyback trailer or semitrailer as designed for use as a railroad car. Irs 1040ez 2010 Parts and accessories. Irs 1040ez 2010   This is any part or accessory sold separately from the truck or trailer, except as described earlier under Parts or accessories and Separate purchase. Irs 1040ez 2010 Trash containers. Irs 1040ez 2010   This is any box, container, receptacle, bin, or similar article that meets all the following conditions. Irs 1040ez 2010 It is designed to be used as a trash container. Irs 1040ez 2010 It is not designed to carry freight other than trash. Irs 1040ez 2010 It is not designed to be permanently mounted on or affixed to a truck chassis or body. Irs 1040ez 2010 House trailers. Irs 1040ez 2010   This is any house trailer (regardless of size) suitable for use in connection with either passenger automobiles or trucks. Irs 1040ez 2010 Camper coaches or bodies for self-propelled mobile homes. Irs 1040ez 2010   This is any article designed to be mounted or placed on trucks, truck chassis, or automobile chassis and to be used primarily as living quarters or camping accommodations. Irs 1040ez 2010 Further, the tax does not apply to chassis specifically designed and constructed to accommodate and transport self-propelled mobile home bodies. Irs 1040ez 2010 Farm feed, seed, and fertilizer equipment. Irs 1040ez 2010   This is any body primarily designed to process or prepare, haul, spread, load, or unload feed, seed, or fertilizer to or on farms. Irs 1040ez 2010 This exemption applies only to the farm equipment body (and parts and accessories) and not to the chassis upon which the farm equipment is mounted. Irs 1040ez 2010 Ambulances and hearses. Irs 1040ez 2010   This is any ambulance, hearse, or combination ambulance-hearse. Irs 1040ez 2010 Truck-tractors. Irs 1040ez 2010   This is any truck-tractor specifically designed for use in shifting semitrailers in and around freight yards and freight terminals. Irs 1040ez 2010 Concrete mixers. Irs 1040ez 2010   This is any article designed to be placed or mounted on a truck, truck trailer, or semitrailer chassis to be used to process or prepare concrete. Irs 1040ez 2010 This exemption does not apply to the chassis on which the article is mounted. Irs 1040ez 2010 Sales exempt from tax. Irs 1040ez 2010   The following sales are ordinarily exempt from tax. Irs 1040ez 2010 Sales to a state or local government for its exclusive use. Irs 1040ez 2010 Sales to Indian tribal governments, but only if the transaction involves the exercise of an essential tribal government function. Irs 1040ez 2010 Sales to a nonprofit educational organization for its exclusive use. Irs 1040ez 2010 Sales to a qualified blood collector organization (as defined under Communications Tax in chapter 4) for its exclusive use in the collection, storage, or transportation of blood. Irs 1040ez 2010 Sales for use by the purchaser for further manufacture of other taxable articles (see below). Irs 1040ez 2010 Sales for export or for resale by the purchaser to a second purchaser for export. Irs 1040ez 2010 Sales to the United Nations for official use. Irs 1040ez 2010 Registration requirement. Irs 1040ez 2010   In general, the seller and buyer must be registered for a sale to be tax free. Irs 1040ez 2010 See the Form 637 instructions for more information. Irs 1040ez 2010 Certain registration exceptions apply in the case of sales to state and local governments, sales to foreign purchasers for export, and sales for resale or long term leasing. Irs 1040ez 2010 Further manufacture. Irs 1040ez 2010   If you buy articles tax free and resell or use them other than in the manufacture of another article, you are liable for the tax on their resale or use just as if you had manufactured and made the first retail sale of them. Irs 1040ez 2010 Credits or refunds. Irs 1040ez 2010   A credit or refund (without interest) of the retail tax on the taxable articles described earlier may be allowable if the tax has been paid with respect to an article and, before any other use, such article is used by any person as a component part of another taxable article manufactured or produced. Irs 1040ez 2010 The person using the article as a component part is eligible for the credit or refund. Irs 1040ez 2010   A credit or refund is allowable if, before any other use, an article is, by any person: Exported, Used or sold for use as supplies for vessels, Sold to a state or local government for its exclusive use, Sold to a nonprofit educational organization for its exclusive use, or Sold to a qualified blood collector organization (as defined under Communications Tax in chapter 4) for its exclusive use in the collection, storage, or transportation of blood. Irs 1040ez 2010 A credit or refund is also allowable if there is a price readjustment by reason of the return or repossession of an article or by reason of a bona fide discount, rebate, or allowance. Irs 1040ez 2010   See also Conditions to allowance in chapter 5. Irs 1040ez 2010 Tire credit. Irs 1040ez 2010   A credit is allowed against the retail tax on the taxable articles described earlier if taxable tires are sold on or in connection with the sale of the article. Irs 1040ez 2010 The credit is equal to the manufacturers excise tax imposed on the taxable tires (discussed earlier). Irs 1040ez 2010 This is the section 4051(d) taxable tire credit and is claimed on Schedule C (Form 720) for the same quarter for which the tax on the heavy vehicle is reported. Irs 1040ez 2010 Prev  Up  Next   Home   More Online Publications