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Turbotax Free State Efile

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Turbotax Free State Efile

Turbotax free state efile 2. Turbotax free state efile   Filing Status Table of Contents What's New Introduction Useful Items - You may want to see: Marital StatusDivorced persons. Turbotax free state efile Divorce and remarriage. Turbotax free state efile Annulled marriages. Turbotax free state efile Head of household or qualifying widow(er) with dependent child. Turbotax free state efile Considered married. Turbotax free state efile Same-sex marriage. Turbotax free state efile Spouse died during the year. Turbotax free state efile Married persons living apart. Turbotax free state efile Single Married Filing JointlyFiling a Joint Return Married Filing SeparatelySpecial Rules Head of HouseholdConsidered Unmarried Keeping Up a Home Qualifying Person Qualifying Widow(er) With Dependent Child What's New Filing status for same-sex married couples. Turbotax free state efile  If you have a same-sex spouse whom you legally married in a state (or foreign country) that recognizes same-sex marriage, you and your spouse generally must use the married filing jointly or married filing separately filing status on your 2013 return, even if you and your spouse now live in a state (or foreign country) that does not recognize same-sex marriage. Turbotax free state efile See Same-sex marriage under Marital Status, later. Turbotax free state efile Introduction This chapter helps you determine which filing status to use. Turbotax free state efile There are five filing statuses. Turbotax free state efile Single. Turbotax free state efile Married Filing Jointly. Turbotax free state efile Married Filing Separately. Turbotax free state efile Head of Household. Turbotax free state efile Qualifying Widow(er) With Dependent Child. Turbotax free state efile If more than one filing status applies to you, choose the one that will give you the lowest tax. Turbotax free state efile You must determine your filing status before you can determine whether you must file a tax return (chapter 1), your standard deduction (chapter 20), and your tax (chapter 30). Turbotax free state efile You also use your filing status to determine whether you are eligible to claim certain deductions and credits. Turbotax free state efile Useful Items - You may want to see: Publication 501 Exemptions, Standard Deduction, and Filing Information 519 U. Turbotax free state efile S. Turbotax free state efile Tax Guide for Aliens 555 Community Property Marital Status In general, your filing status depends on whether you are considered unmarried or married. Turbotax free state efile Unmarried persons. Turbotax free state efile   You are considered unmarried for the whole year if, on the last day of your tax year, you are unmarried or legally separated from your spouse under a divorce or separate maintenance decree. Turbotax free state efile State law governs whether you are married or legally separated under a divorce or separate maintenance decree. Turbotax free state efile Divorced persons. Turbotax free state efile   If you are divorced under a final decree by the last day of the year, you are considered unmarried for the whole year. Turbotax free state efile Divorce and remarriage. Turbotax free state efile   If you obtain a divorce for the sole purpose of filing tax returns as unmarried individuals, and at the time of divorce you intend to and do, in fact, remarry each other in the next tax year, you and your spouse must file as married individuals in both years. Turbotax free state efile Annulled marriages. Turbotax free state efile    If you obtain a court decree of annulment, which holds that no valid marriage ever existed, you are considered unmarried even if you filed joint returns for earlier years. Turbotax free state efile You must file Form 1040X, Amended U. Turbotax free state efile S. Turbotax free state efile Individual Income Tax Return, claiming single or head of household status for all tax years that are affected by the annulment and are not closed by the statute of limitations for filing a tax return. Turbotax free state efile Generally, for a credit or refund, you must file Form 1040X within 3 years (including extensions) after the date you filed your original return or within 2 years after the date you paid the tax, whichever is later. Turbotax free state efile If you filed your original return early (for example, March 1), your return is considered filed on the due date (generally April 15). Turbotax free state efile However, if you had an extension to file (for example, until October 15) but you filed earlier and we received it on July 1, your return is considered filed on July 1. Turbotax free state efile Head of household or qualifying widow(er) with dependent child. Turbotax free state efile   If you are considered unmarried, you may be able to file as a head of household or as a qualifying widow(er) with a dependent child. Turbotax free state efile See Head of Household and Qualifying Widow(er) With Dependent Child to see if you qualify. Turbotax free state efile Married persons. Turbotax free state efile   If you are considered married, you and your spouse can file a joint return or separate returns. Turbotax free state efile Considered married. Turbotax free state efile   You are considered married for the whole year if, on the last day of your tax year, you and your spouse meet any one of the following tests. Turbotax free state efile You are married and living together as a married couple. Turbotax free state efile You are living together in a common law marriage recognized in the state where you now live or in the state where the common law marriage began. Turbotax free state efile You are married and living apart, but not legally separated under a decree of divorce or separate maintenance. Turbotax free state efile You are separated under an interlocutory (not final) decree of divorce. Turbotax free state efile Same-sex marriage. Turbotax free state efile   For federal tax purposes, individuals of the same sex are considered married if they were lawfully married in a state (or foreign country) whose laws authorize the marriage of two individuals of the same sex, even if the state (or foreign country) in which they now live does not recognize same-sex marriage. Turbotax free state efile The term “spouse” includes an individual married to a person of the same sex if the couple is lawfully married under state (or foreign) law. Turbotax free state efile However, individuals who have entered into a registered domestic partnership, civil union, or other similar relationship that is not considered a marriage under state (or foreign) law are not considered married for federal tax purposes. Turbotax free state efile For more details, see Publication 501. Turbotax free state efile Spouse died during the year. Turbotax free state efile   If your spouse died during the year, you are considered married for the whole year for filing status purposes. Turbotax free state efile   If you did not remarry before the end of the tax year, you can file a joint return for yourself and your deceased spouse. Turbotax free state efile For the next 2 years, you may be entitled to the special benefits described later under Qualifying Widow(er) With Dependent Child . Turbotax free state efile   If you remarried before the end of the tax year, you can file a joint return with your new spouse. Turbotax free state efile Your deceased spouse's filing status is married filing separately for that year. Turbotax free state efile Married persons living apart. Turbotax free state efile   If you live apart from your spouse and meet certain tests, you may be able to file as head of household even if you are not divorced or legally separated. Turbotax free state efile If you qualify to file as head of household instead of married filing separately, your standard deduction will be higher. Turbotax free state efile Also, your tax may be lower, and you may be able to claim the earned income credit. Turbotax free state efile See Head of Household , later. Turbotax free state efile Single Your filing status is single if you are considered unmarried and you do not qualify for another filing status. Turbotax free state efile To determine your marital status, see Marital Status , earlier. Turbotax free state efile Widow(er). Turbotax free state efile   Your filing status may be single if you were widowed before January 1, 2013, and did not remarry before the end of 2013. Turbotax free state efile You may, however, be able to use another filing status that will give you a lower tax. Turbotax free state efile See Head of Household and Qualifying Widow(er) With Dependent Child , later, to see if you qualify. Turbotax free state efile How to file. Turbotax free state efile   You can file Form 1040. Turbotax free state efile If you have taxable income of less than $100,000, you may be able to file Form 1040A. Turbotax free state efile If, in addition, you have no dependents, and are under 65 and not blind, and meet other requirements, you can file Form 1040EZ. Turbotax free state efile If you file Form 1040A or Form 1040, show your filing status as single by checking the box on line 1. Turbotax free state efile Use the Single column of the Tax Table or Section A of the Tax Computation Worksheet to figure your tax. Turbotax free state efile Married Filing Jointly You can choose married filing jointly as your filing status if you are considered married and both you and your spouse agree to file a joint return. Turbotax free state efile On a joint return, you and your spouse report your combined income and deduct your combined allowable expenses. Turbotax free state efile You can file a joint return even if one of you had no income or deductions. Turbotax free state efile If you and your spouse decide to file a joint return, your tax may be lower than your combined tax for the other filing statuses. Turbotax free state efile Also, your standard deduction (if you do not itemize deductions) may be higher, and you may qualify for tax benefits that do not apply to other filing statuses. Turbotax free state efile If you and your spouse each have income, you may want to figure your tax both on a joint return and on separate returns (using the filing status of married filing separately). Turbotax free state efile You can choose the method that gives the two of you the lower combined tax. Turbotax free state efile How to file. Turbotax free state efile   If you file as married filing jointly, you can use Form 1040. Turbotax free state efile If you and your spouse have taxable income of less than $100,000, you may be able to file Form 1040A. Turbotax free state efile If, in addition, you and your spouse have no dependents, are both under 65 and not blind, and meet other requirements, you can file Form 1040EZ. Turbotax free state efile If you file Form 1040 or Form 1040A, show this filing status by checking the box on line 2. Turbotax free state efile Use the Married filing jointly column of the Tax Table or Section B of the Tax Computation Worksheet to figure your tax. Turbotax free state efile Spouse died. Turbotax free state efile   If your spouse died during the year, you are considered married for the whole year and can choose married filing jointly as your filing status. Turbotax free state efile See Spouse died during the year under Marital Status, earlier, for more information. Turbotax free state efile   If your spouse died in 2014 before filing a 2013 return, you can choose married filing jointly as your filing status on your 2013 return. Turbotax free state efile Divorced persons. Turbotax free state efile   If you are divorced under a final decree by the last day of the year, you are considered unmarried for the whole year and you cannot choose married filing jointly as your filing status. Turbotax free state efile Filing a Joint Return Both you and your spouse must include all of your income, exemptions, and deductions on your joint return. Turbotax free state efile Accounting period. Turbotax free state efile   Both of you must use the same accounting period, but you can use different accounting methods. Turbotax free state efile See Accounting Periods and Accounting Methods in chapter 1. Turbotax free state efile Joint responsibility. Turbotax free state efile   Both of you may be held responsible, jointly and individually, for the tax and any interest or penalty due on your joint return. Turbotax free state efile This means that if one spouse does not pay the tax due, the other may have to. Turbotax free state efile Or, if one spouse does not report the correct tax, both spouses may be responsible for any additional taxes assessed by the IRS. Turbotax free state efile One spouse may be held responsible for all the tax due even if all the income was earned by the other spouse. Turbotax free state efile You may want to file separately if: You believe your spouse is not reporting all of his or her income, or You do not want to be responsible for any taxes due if your spouse does not have enough tax withheld or does not pay enough estimated tax. Turbotax free state efile Divorced taxpayer. Turbotax free state efile   You may be held jointly and individually responsible for any tax, interest, and penalties due on a joint return filed before your divorce. Turbotax free state efile This responsibility may apply even if your divorce decree states that your former spouse will be responsible for any amounts due on previously filed joint returns. Turbotax free state efile Relief from joint responsibility. Turbotax free state efile   In some cases, one spouse may be relieved of joint responsibility for tax, interest, and penalties on a joint return for items of the other spouse that were incorrectly reported on the joint return. Turbotax free state efile You can ask for relief no matter how small the liability. Turbotax free state efile   There are three types of relief available. Turbotax free state efile Innocent spouse relief. Turbotax free state efile Separation of liability (available only to joint filers who are divorced, widowed, legally separated, or have not lived together for the 12 months ending on the date the election for this relief is filed). Turbotax free state efile Equitable relief. Turbotax free state efile    You must file Form 8857, Request for Innocent Spouse Relief, to request relief from joint responsibility. Turbotax free state efile Publication 971, Innocent Spouse Relief, explains these kinds of relief and who may qualify for them. Turbotax free state efile Signing a joint return. Turbotax free state efile   For a return to be considered a joint return, both spouses generally must sign the return. Turbotax free state efile Spouse died before signing. Turbotax free state efile   If your spouse died before signing the return, the executor or administrator must sign the return for your spouse. Turbotax free state efile If neither you nor anyone else has yet been appointed as executor or administrator, you can sign the return for your spouse and enter “Filing as surviving spouse” in the area where you sign the return. Turbotax free state efile Spouse away from home. Turbotax free state efile   If your spouse is away from home, you should prepare the return, sign it, and send it to your spouse to sign so that it can be filed on time. Turbotax free state efile Injury or disease prevents signing. Turbotax free state efile   If your spouse cannot sign because of disease or injury and tells you to sign for him or her, you can sign your spouse's name in the proper space on the return followed by the words “By (your name), Husband (or Wife). Turbotax free state efile ” Be sure to also sign in the space provided for your signature. Turbotax free state efile Attach a dated statement, signed by you, to the return. Turbotax free state efile The statement should include the form number of the return you are filing, the tax year, and the reason your spouse cannot sign, and should state that your spouse has agreed to your signing for him or her. Turbotax free state efile Signing as guardian of spouse. Turbotax free state efile   If you are the guardian of your spouse who is mentally incompetent, you can sign the return for your spouse as guardian. Turbotax free state efile Spouse in combat zone. Turbotax free state efile   You can sign a joint return for your spouse if your spouse cannot sign because he or she is serving in a combat zone (such as the Persian Gulf Area, Serbia, Montenegro, Albania, or Afghanistan), even if you do not have a power of attorney or other statement. Turbotax free state efile Attach a signed statement to your return explaining that your spouse is serving in a combat zone. Turbotax free state efile For more information on special tax rules for persons who are serving in a combat zone, or who are in missing status as a result of serving in a combat zone, see Publication 3, Armed Forces' Tax Guide. Turbotax free state efile Other reasons spouse cannot sign. Turbotax free state efile    If your spouse cannot sign the joint return for any other reason, you can sign for your spouse only if you are given a valid power of attorney (a legal document giving you permission to act for your spouse). Turbotax free state efile Attach the power of attorney (or a copy of it) to your tax return. Turbotax free state efile You can use Form 2848, Power of Attorney and Declaration of Representative. Turbotax free state efile Nonresident alien or dual-status alien. Turbotax free state efile   Generally, a married couple cannot file a joint return if either one is a nonresident alien at any time during the tax year. Turbotax free state efile However, if one spouse was a nonresident alien or dual-status alien who was married to a U. Turbotax free state efile S. Turbotax free state efile citizen or resident alien at the end of the year, the spouses can choose to file a joint return. Turbotax free state efile If you do file a joint return, you and your spouse are both treated as U. Turbotax free state efile S. Turbotax free state efile residents for the entire tax year. Turbotax free state efile See chapter 1 of Publication 519. Turbotax free state efile Married Filing Separately You can choose married filing separately as your filing status if you are married. Turbotax free state efile This filing status may benefit you if you want to be responsible only for your own tax or if it results in less tax than filing a joint return. Turbotax free state efile If you and your spouse do not agree to file a joint return, you must use this filing status unless you qualify for head of household status, discussed later. Turbotax free state efile You may be able to choose head of household filing status if you are considered unmarried because you live apart from your spouse and meet certain tests (explained later, under Head of Household ). Turbotax free state efile This can apply to you even if you are not divorced or legally separated. Turbotax free state efile If you qualify to file as head of household, instead of as married filing separately, your tax may be lower, you may be able to claim the earned income credit and certain other credits, and your standard deduction will be higher. Turbotax free state efile The head of household filing status allows you to choose the standard deduction even if your spouse chooses to itemize deductions. Turbotax free state efile See Head of Household , later, for more information. Turbotax free state efile You will generally pay more combined tax on separate returns than you would on a joint return for the reasons listed under Special Rules, later. Turbotax free state efile However, unless you are required to file separately, you should figure your tax both ways (on a joint return and on separate returns). Turbotax free state efile This way you can make sure you are using the filing status that results in the lowest combined tax. Turbotax free state efile When figuring the combined tax of a married couple, you may want to consider state taxes as well as federal taxes. Turbotax free state efile How to file. Turbotax free state efile   If you file a separate return, you generally report only your own income, exemptions, credits, and deductions. Turbotax free state efile You can claim an exemption for your spouse only if your spouse had no gross income, is not filing a return, and was not the dependent of another person. Turbotax free state efile You can file Form 1040. Turbotax free state efile If your taxable income is less than $100,000, you may be able to file Form 1040A. Turbotax free state efile Select this filing status by checking the box on line 3 of either form. Turbotax free state efile Enter your spouse's full name and SSN or ITIN in the spaces provided. Turbotax free state efile If your spouse does not have and is not required to have an SSN or ITIN, enter “NRA” in the space for your spouse's SSN. Turbotax free state efile Use the Married filing separately column of the Tax Table or Section C of the Tax Computation Worksheet to figure your tax. Turbotax free state efile Special Rules If you choose married filing separately as your filing status, the following special rules apply. Turbotax free state efile Because of these special rules, you usually pay more tax on a separate return than if you use another filing status you qualify for. Turbotax free state efile   Your tax rate generally is higher than on a joint return. Turbotax free state efile Your exemption amount for figuring the alternative minimum tax is half that allowed on a joint return. Turbotax free state efile You cannot take the credit for child and dependent care expenses in most cases, and the amount you can exclude from income under an employer's dependent care assistance program is limited to $2,500 (instead of $5,000). Turbotax free state efile If you are legally separated or living apart from your spouse, you may be able to file a separate return and still take the credit. Turbotax free state efile For more information about these expenses, the credit, and the exclusion, see chapter 32. Turbotax free state efile You cannot take the earned income credit. Turbotax free state efile You cannot take the exclusion or credit for adoption expenses in most cases. Turbotax free state efile You cannot take the education credits (the American opportunity credit and lifetime learning credit), the deduction for student loan interest, or the tuition and fees deduction. Turbotax free state efile You cannot exclude any interest income from qualified U. Turbotax free state efile S. Turbotax free state efile savings bonds you used for higher education expenses. Turbotax free state efile If you lived with your spouse at any time during the tax year: You cannot claim the credit for the elderly or the disabled, and You must include in income a greater percentage (up to 85%) of any social security or equivalent railroad retirement benefits you received. Turbotax free state efile The following credits and deductions are reduced at income levels half those for a joint return: The child tax credit, The retirement savings contributions credit, The deduction for personal exemptions, and Itemized deductions. Turbotax free state efile Your capital loss deduction limit is $1,500 (instead of $3,000 on a joint return). Turbotax free state efile If your spouse itemizes deductions, you cannot claim the standard deduction. Turbotax free state efile If you can claim the standard deduction, your basic standard deduction is half the amount allowed on a joint return. Turbotax free state efile Adjusted gross income (AGI) limits. Turbotax free state efile   If your AGI on a separate return is lower than it would have been on a joint return, you may be able to deduct a larger amount for certain deductions that are limited by AGI, such as medical expenses. Turbotax free state efile Individual retirement arrangements (IRAs). Turbotax free state efile   You may not be able to deduct all or part of your contributions to a traditional IRA if you or your spouse were covered by an employee retirement plan at work during the year. Turbotax free state efile Your deduction is reduced or eliminated if your income is more than a certain amount. Turbotax free state efile This amount is much lower for married individuals who file separately and lived together at any time during the year. Turbotax free state efile For more information, see How Much Can You Deduct in chapter 17. Turbotax free state efile Rental activity losses. Turbotax free state efile   If you actively participated in a passive rental real estate activity that produced a loss, you generally can deduct the loss from your nonpassive income, up to $25,000. Turbotax free state efile This is called a special allowance. Turbotax free state efile However, married persons filing separate returns who lived together at any time during the year cannot claim this special allowance. Turbotax free state efile Married persons filing separate returns who lived apart at all times during the year are each allowed a $12,500 maximum special allowance for losses from passive real estate activities. Turbotax free state efile See Limits on Rental Losses in chapter 9. Turbotax free state efile Community property states. Turbotax free state efile   If you live in Arizona, California, Idaho, Louisiana, Nevada, New Mexico, Texas, Washington, or Wisconsin and file separately, your income may be considered separate income or community income for income tax purposes. Turbotax free state efile See Publication 555. Turbotax free state efile Joint Return After Separate Returns You can change your filing status from a separate return to a joint return by filing an amended return using Form 1040X. Turbotax free state efile You generally can change to a joint return any time within 3 years from the due date of the separate return or returns. Turbotax free state efile This does not include any extensions. Turbotax free state efile A separate return includes a return filed by you or your spouse claiming married filing separately, single, or head of household filing status. Turbotax free state efile Separate Returns After Joint Return Once you file a joint return, you cannot choose to file separate returns for that year after the due date of the return. Turbotax free state efile Exception. Turbotax free state efile   A personal representative for a decedent can change from a joint return elected by the surviving spouse to a separate return for the decedent. Turbotax free state efile The personal representative has 1 year from the due date of the return (including extensions) to make the change. Turbotax free state efile See Publication 559, Survivors, Executors, and Administrators, for more information on filing a return for a decedent. Turbotax free state efile Head of Household You may be able to file as head of household if you meet all the following requirements. Turbotax free state efile You are unmarried or “considered unmarried” on the last day of the year. Turbotax free state efile See Marital Status , earlier, and Considered Unmarried , later. Turbotax free state efile You paid more than half the cost of keeping up a home for the year. Turbotax free state efile A qualifying person lived with you in the home for more than half the year (except for temporary absences, such as school). Turbotax free state efile However, if the qualifying person is your dependent parent, he or she does not have to live with you. Turbotax free state efile See Special rule for parent , later, under Qualifying Person. Turbotax free state efile If you qualify to file as head of household, your tax rate usually will be lower than the rates for single or married filing separately. Turbotax free state efile You will also receive a higher standard deduction than if you file as single or married filing separately. Turbotax free state efile Kidnapped child. Turbotax free state efile   A child may qualify you to file as head of household even if the child has been kidnapped. Turbotax free state efile For more information, see Publication 501. Turbotax free state efile How to file. Turbotax free state efile   If you file as head of household, you can use Form 1040. Turbotax free state efile If your taxable income is less than $100,000, you may be able to file Form 1040A. Turbotax free state efile Indicate your choice of this filing status by checking the box on line 4 of either form. Turbotax free state efile Use the Head of a household column of the Tax Table or Section D of the Tax Computation Worksheet to figure your tax. Turbotax free state efile Considered Unmarried To qualify for head of household status, you must be either unmarried or considered unmarried on the last day of the year. Turbotax free state efile You are considered unmarried on the last day of the tax year if you meet all the following tests. Turbotax free state efile You file a separate return (defined earlier under Joint Return After Separate Returns ). Turbotax free state efile You paid more than half the cost of keeping up your home for the tax year. Turbotax free state efile Your spouse did not live in your home during the last 6 months of the tax year. Turbotax free state efile Your spouse is considered to live in your home even if he or she is temporarily absent due to special circumstances. Turbotax free state efile See Temporary absences , under Qualifying Person, later. Turbotax free state efile Your home was the main home of your child, stepchild, or foster child for more than half the year. Turbotax free state efile (See Home of qualifying person , under Qualifying Person, later, for rules applying to a child's birth, death, or temporary absence during the year. Turbotax free state efile ) You must be able to claim an exemption for the child. Turbotax free state efile However, you meet this test if you cannot claim the exemption only because the noncustodial parent can claim the child using the rules described in Children of divorced or separated parents (or parents who live apart) under Qualifying Child in chapter 3, or in Support Test for Children of Divorced or Separated Parents (or Parents Who Live Apart) under Qualifying Relative in chapter 3. Turbotax free state efile The general rules for claiming an exemption for a dependent are explained under Exemptions for Dependents in chapter 3. Turbotax free state efile If you were considered married for part of the year and lived in a community property state (listed earlier under Married Filing Separately), special rules may apply in determining your income and expenses. Turbotax free state efile See Publication 555 for more information. Turbotax free state efile Nonresident alien spouse. Turbotax free state efile   You are considered unmarried for head of household purposes if your spouse was a nonresident alien at any time during the year and you do not choose to treat your nonresident spouse as a resident alien. Turbotax free state efile However, your spouse is not a qualifying person for head of household purposes. Turbotax free state efile You must have another qualifying person and meet the other tests to be eligible to file as a head of household. Turbotax free state efile Choice to treat spouse as resident. Turbotax free state efile   You are considered married if you choose to treat your spouse as a resident alien. Turbotax free state efile See Publication 519. Turbotax free state efile Keeping Up a Home To qualify for head of household status, you must pay more than half of the cost of keeping up a home for the year. Turbotax free state efile You can determine whether you paid more than half of the cost of keeping up a home by using Worksheet 2–1. Turbotax free state efile Worksheet 2-1. Turbotax free state efile Cost of Keeping Up a Home   Amount You Paid Total Cost Property taxes $ $ Mortgage interest expense     Rent     Utility charges     Repairs/maintenance     Property insurance     Food consumed on the premises     Other household expenses     Totals $ $ Minus total amount you paid   () Amount others paid   $ If the total amount you paid is more than the amount others paid, you meet the requirement of paying more than half the cost of keeping up the home. Turbotax free state efile Costs you include. Turbotax free state efile   Include in the cost of keeping up a home expenses such as rent, mortgage interest, real estate taxes, insurance on the home, repairs, utilities, and food eaten in the home. Turbotax free state efile   If you used payments you received under Temporary Assistance for Needy Families (TANF) or other public assistance programs to pay part of the cost of keeping up your home, you cannot count them as money you paid. Turbotax free state efile However, you must include them in the total cost of keeping up your home to figure if you paid over half the cost. Turbotax free state efile Costs you do not include. Turbotax free state efile   Do not include the costs of clothing, education, medical treatment, vacations, life insurance, or transportation. Turbotax free state efile Also, do not include the rental value of a home you own or the value of your services or those of a member of your household. Turbotax free state efile Qualifying Person See Table 2-1 to see who is a qualifying person. Turbotax free state efile Any person not described in Table 2-1 is not a qualifying person. Turbotax free state efile Table 2-1. Turbotax free state efile Who Is a Qualifying Person Qualifying You To File as Head of Household?1 Caution. Turbotax free state efile See the text of this chapter for the other requirements you must meet to claim head of household filing status. Turbotax free state efile IF the person is your . Turbotax free state efile . Turbotax free state efile . Turbotax free state efile   AND . Turbotax free state efile . Turbotax free state efile . Turbotax free state efile   THEN that person is . Turbotax free state efile . Turbotax free state efile . Turbotax free state efile qualifying child (such as a son, daughter, or grandchild who lived with you more than half the year and meets certain other tests)2   he or she is single   a qualifying person, whether or not you can claim an exemption for the person. Turbotax free state efile   he or she is married and you can claim an exemption for him or her   a qualifying person. Turbotax free state efile   he or she is married and you cannot claim an exemption for him or her   not a qualifying person. Turbotax free state efile 3 qualifying relative4 who is your father or mother   you can claim an exemption for him or her5   a qualifying person. Turbotax free state efile 6   you cannot claim an exemption for him or her   not a qualifying person. Turbotax free state efile qualifying relative4 other than your father or mother (such as a grandparent, brother, or sister who meets certain tests)   he or she lived with you more than half the year, and he or she is related to you in one of the ways listed under Relatives who do not have to live with you in chapter 3 and you can claim an exemption for him or her5   a qualifying person. Turbotax free state efile   he or she did not live with you more than half the year   not a qualifying person. Turbotax free state efile   he or she is not related to you in one of the ways listed under Relatives who do not have to live with you in chapter 3 and is your qualifying relative only because he or she lived with you all year as a member of your household   not a qualifying person. Turbotax free state efile   you cannot claim an exemption for him or her   not a qualifying person. Turbotax free state efile 1A person cannot qualify more than one taxpayer to use the head of household filing status for the year. Turbotax free state efile 2The term “qualifying child” is defined in chapter 3. Turbotax free state efile Note. Turbotax free state efile If you are a noncustodial parent, the term “qualifying child” for head of household filing status does not include a child who is your qualifying child for exemption purposes only because of the rules described under Children of divorced or separated parents (or parents who live apart) under Qualifying Child in chapter 3. Turbotax free state efile If you are the custodial parent and those rules apply, the child generally is your qualifying child for head of household filing status even though the child is not a qualifying child for whom you can claim an exemption. Turbotax free state efile 3This person is a qualifying person if the only reason you cannot claim the exemption is that you can be claimed as a dependent on someone else's return. Turbotax free state efile 4The term “ qualifying relative ” is defined in chapter 3. Turbotax free state efile 5If you can claim an exemption for a person only because of a multiple support agreement, that person is not a qualifying person. Turbotax free state efile See Multiple Support Agreement in chapter 3. Turbotax free state efile 6See Special rule for parent . Turbotax free state efile Example 1—child. Turbotax free state efile Your unmarried son lived with you all year and was 18 years old at the end of the year. Turbotax free state efile He did not provide more than half of his own support and does not meet the tests to be a qualifying child of anyone else. Turbotax free state efile As a result, he is your qualifying child (see Qualifying Child in chapter 3) and, because he is single, your qualifying person for you to claim head of household filing status. Turbotax free state efile Example 2—child who is not qualifying person. Turbotax free state efile The facts are the same as in Example 1 except your son was 25 years old at the end of the year and his gross income was $5,000. Turbotax free state efile Because he does not meet the age test (explained under Qualifying Child in chapter 3), your son is not your qualifying child. Turbotax free state efile Because he does not meet the gross income test (explained later under Qualifying Relative in chapter 3), he is not your qualifying relative. Turbotax free state efile As a result, he is not your qualifying person for head of household purposes. Turbotax free state efile Example 3—girlfriend. Turbotax free state efile Your girlfriend lived with you all year. Turbotax free state efile Even though she may be your qualifying relative if the gross income and support tests (explained in chapter 3) are met, she is not your qualifying person for head of household purposes because she is not related to you in one of the ways listed under Relatives who do not have to live with you in chapter 3. Turbotax free state efile See Table 2-1. Turbotax free state efile Example 4—girlfriend's child. Turbotax free state efile The facts are the same as in Example 3 except your girlfriend's 10-year-old son also lived with you all year. Turbotax free state efile He is not your qualifying child and, because he is your girlfriend's qualifying child, he is not your qualifying relative (see Not a Qualifying Child Test in chapter 3). Turbotax free state efile As a result, he is not your qualifying person for head of household purposes. Turbotax free state efile Home of qualifying person. Turbotax free state efile   Generally, the qualifying person must live with you for more than half of the year. Turbotax free state efile Special rule for parent. Turbotax free state efile   If your qualifying person is your father or mother, you may be eligible to file as head of household even if your father or mother does not live with you. Turbotax free state efile However, you must be able to claim an exemption for your father or mother. Turbotax free state efile Also, you must pay more than half the cost of keeping up a home that was the main home for the entire year for your father or mother. Turbotax free state efile   You are keeping up a main home for your father or mother if you pay more than half the cost of keeping your parent in a rest home or home for the elderly. Turbotax free state efile Death or birth. Turbotax free state efile   You may be eligible to file as head of household even if the individual who qualifies you for this filing status is born or dies during the year. Turbotax free state efile If the individual is your qualifying child, the child must have lived with you for more than half the part of the year he or she was alive. Turbotax free state efile If the individual is anyone else, see Publication 501. Turbotax free state efile Temporary absences. Turbotax free state efile   You and your qualifying person are considered to live together even if one or both of you are temporarily absent from your home due to special circumstances such as illness, education, business, vacation, or military service. Turbotax free state efile It must be reasonable to assume the absent person will return to the home after the temporary absence. Turbotax free state efile You must continue to keep up the home during the absence. Turbotax free state efile Qualifying Widow(er) With Dependent Child If your spouse died in 2013, you can use married filing jointly as your filing status for 2013 if you otherwise qualify to use that status. Turbotax free state efile The year of death is the last year for which you can file jointly with your deceased spouse. Turbotax free state efile See Married Filing Jointly , earlier. Turbotax free state efile You may be eligible to use qualifying widow(er) with dependent child as your filing status for 2 years following the year your spouse died. Turbotax free state efile For example, if your spouse died in 2012, and you have not remarried, you may be able to use this filing status for 2013 and 2014. Turbotax free state efile This filing status entitles you to use joint return tax rates and the highest standard deduction amount (if you do not itemize deductions). Turbotax free state efile It does not entitle you to file a joint return. Turbotax free state efile How to file. Turbotax free state efile   If you file as qualifying widow(er) with dependent child, you can use Form 1040. Turbotax free state efile If you also have taxable income of less than $100,000 and meet certain other conditions, you may be able to file Form 1040A. Turbotax free state efile Check the box on line 5 of either form. Turbotax free state efile Use the Married filing jointly column of the Tax Table or Section B of the Tax Computation Worksheet to figure your tax. Turbotax free state efile Eligibility rules. Turbotax free state efile   You are eligible to file your 2013 return as a qualifying widow(er) with dependent child if you meet all of the following tests. Turbotax free state efile You were entitled to file a joint return with your spouse for the year your spouse died. Turbotax free state efile It does not matter whether you actually filed a joint return. Turbotax free state efile Your spouse died in 2011 or 2012 and you did not remarry before the end of 2013. Turbotax free state efile You have a child or stepchild for whom you can claim an exemption. Turbotax free state efile This does not include a foster child. Turbotax free state efile This child lived in your home all year, except for temporary absences. Turbotax free state efile See Temporary absences , earlier, under Head of Household. Turbotax free state efile There are also exceptions, described later, for a child who was born or died during the year and for a kidnapped child. Turbotax free state efile You paid more than half the cost of keeping up a home for the year. Turbotax free state efile See Keeping Up a Home , earlier, under Head of Household. Turbotax free state efile Example. Turbotax free state efile John's wife died in 2011. Turbotax free state efile John has not remarried. Turbotax free state efile During 2012 and 2013, he continued to keep up a home for himself and his child, who lives with him and for whom he can claim an exemption. Turbotax free state efile For 2011 he was entitled to file a joint return for himself and his deceased wife. Turbotax free state efile For 2012 and 2013, he can file as qualifying widower with a dependent child. Turbotax free state efile After 2013 he can file as head of household if he qualifies. Turbotax free state efile Death or birth. Turbotax free state efile    You may be eligible to file as a qualifying widow(er) with dependent child if the child who qualifies you for this filing status is born or dies during the year. Turbotax free state efile You must have provided more than half of the cost of keeping up a home that was the child's main home during the entire part of the year he or she was alive. Turbotax free state efile Kidnapped child. Turbotax free state efile   A child may qualify you for qualifying widow(er) with dependent child, even if the child has been kidnapped. Turbotax free state efile See Publication 501. Turbotax free state efile    As mentioned earlier, this filing status is available for only 2 years following the year your spouse died. Turbotax free state efile Prev  Up  Next   Home   More Online Publications
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Deducting Business Expenses

Business expenses are the cost of carrying on a trade or business. These expenses are usually deductible if the business is operated to make a profit.

What Can I Deduct?

To be deductible, a business expense must be both ordinary and necessary. An ordinary expense is one that is common and accepted in your trade or business. A necessary expense is one that is helpful and appropriate for your trade or business. An expense does not have to be indispensable to be considered necessary.

It is important to separate business expenses from the following expenses:

  • The expenses used to figure the cost of goods sold,
  • Capital Expenses, and
  • Personal Expenses.

Cost of Goods Sold

If your business manufactures products or purchases them for resale, you generally must value inventory at the beginning and end of each tax year to determine your cost of goods sold. Some of your expenses may be included in figuring the cost of goods sold. Cost of goods sold is deducted from your gross receipts to figure your gross profit for the year. If you include an expense in the cost of goods sold, you cannot deduct it again as a business expense.

The following are types of expenses that go into figuring the cost of goods sold.

  • The cost of products or raw materials, including freight
  • Storage
  • Direct labor costs (including contributions to pensions or annuity plans) for workers who produce the products
  • Factory overhead

Under the uniform capitalization rules, you must capitalize the direct costs and part of the indirect costs for certain production or resale activities. Indirect costs include rent, interest, taxes, storage, purchasing, processing, repackaging, handling, and administrative costs.

This rule does not apply to personal property you acquire for resale if your average annual gross receipts (or those of your predecessor) for the preceding 3 tax years are not more than $10 million.

For additional information, refer to the chapter on Cost of Goods Sold, Publication 334, Tax Guide for Small Businesses and the chapter on Inventories, Publication 538, Accounting Periods and Methods.

Capital Expenses

You must capitalize, rather than deduct, some costs. These costs are a part of your investment in your business and are called capital expenses. Capital expenses are considered assets in your business. There are, in general, three types of costs you capitalize.

  • Business start-up cost (See the note below)
  • Business assets
  • Improvements

Note: You can elect to deduct or amortize certain business start-up costs. Refer to chapters 7 and 8 of Publication 535, Business Expenses.

Personal versus Business Expenses

Generally, you cannot deduct personal, living, or family expenses. However, if you have an expense for something that is used partly for business and partly for personal purposes, divide the total cost between the business and personal parts. You can deduct the business part.

For example, if you borrow money and use 70% of it for business and the other 30% for a family vacation, you can deduct 70% of the interest as a business expense. The remaining 30% is personal interest and is not deductible. Refer to chapter 4 of Publication 535, Business Expenses, for information on deducting interest and the allocation rules.

Business Use of Your Home

If you use part of your home for business, you may be able to deduct expenses for the business use of your home. These expenses may include mortgage interest, insurance, utilities, repairs, and depreciation. Refer to Home Office Deduction and Publication 587, Business Use of Your Home, for more information.

Business Use of Your Car

If you use your car in your business, you can deduct car expenses. If you use your car for both business and personal purposes, you must divide your expenses based on actual mileage. Refer to Publication 463, Travel, Entertainment, Gift, and Car Expenses. For a list of current and prior year mileage rates see the Standard Mileage Rates.

Other Types of Business Expenses

  • Employees' Pay - You can generally deduct the pay you give your employees for the services they perform for your business.
  • Retirement Plans - Retirement plans are savings plans that offer you tax advantages to set aside money for your own, and your employees' retirement.
  • Rent Expense - Rent is any amount you pay for the use of property you do not own. In general, you can deduct rent as an expense only if the rent is for property you use in your trade or business. If you have or will receive equity in or title to the property, the rent is not deductible.
  • Interest - Business interest expense is an amount charged for the use of money you borrowed for business activities.
  • Taxes - You can deduct various federal, state, local, and foreign taxes directly attributable to your trade or business as business expenses.
  • Insurance - Generally, you can deduct the ordinary and necessary cost of insurance as a business expense, if it is for your trade, business, or profession.

This list is not all inclusive of the types of business expenses that you can deduct. For additional information, refer to Publication 535, Business Expenses.

Page Last Reviewed or Updated: 04-Feb-2014

The Turbotax Free State Efile

Turbotax free state efile 1. Turbotax free state efile   Application, Approval, and Appeal Procedures Table of Contents Introduction Topics - This chapter discusses: Application ProceduresForms Required Required Inclusions Miscellaneous Procedures Rulings and Determination LettersEffective Date of Exemption Revocation or Modification of Exemption Appeal ProceduresAppeals Office Consideration EO Technical Consideration Administrative Remedies Appeal to Courts Group Exemption LetterCentral Organization Application Procedure Keeping the Group Exemption Letter in Force Events Causing Loss of Group Exemption Introduction If your organization is one of the organizations described in this publication and is seeking recognition of tax-exempt status from the IRS, you should follow the procedures described in this chapter and the instructions that accompany the appropriate application forms. Turbotax free state efile For information on section 501(c)(3) organizations, go to Section 501(c)(3) Organizations chapter 3. Turbotax free state efile If your organization is seeking exemption under one of the other paragraphs of section 501(c), see chapter 4. Turbotax free state efile Topics - This chapter discusses: Application procedures that generally apply to all organizations discussed in this publication, including the application forms; Rulings and determination letters (approvals/disapprovals); Appeal procedures available if an adverse determination letter is proposed; and Group exemption letters. Turbotax free state efile Application Procedures Oral requests for recognition of exemption will not be considered by the IRS. Turbotax free state efile Your application for tax-exempt status must be in writing using the appropriate forms as discussed below. Turbotax free state efile Forms Required If your organization is seeking recognition of exemption from federal income tax, it must use a specific application prescribed by the IRS in Revenue Procedure 2013–9, sec. Turbotax free state efile 3. Turbotax free state efile If your organization is a central organization with exempt status, see Group Exemption Letter , later. Turbotax free state efile All applications must be signed by an authorized individual. Turbotax free state efile Form 1023, Application for Recognition of Exemption. Turbotax free state efile   File Form 1023 if you are seeking recognition of exemption under section: 501(c)(3) Corporations, organized and operated exclusively for religious, charitable, scientific, testing for public safety, literary, or educational purposes, or to foster national or international amateur sports, or prevention of cruelty for children or animals, 501(e) Cooperative hospital service organization, 501(f) Cooperative service organization of operating educational organizations, 501(k) Certain organizations providing child care, 501(n) Charitable risk pools, and 501(q) Credit counseling organizations. Turbotax free state efile Form 1024, Application for Recognition of Exemption Under Section 501(a). Turbotax free state efile    File Form 1024 if you are seeking recognition of exemption under section: 501(c)(2) Title holding corporations, 501(c)(4) Civic leagues, social welfare organizations, 501(c)(5) Labor, agricultural, or horticultural organizations, 501(c)(6) Business leagues, chambers of commerce, etc. Turbotax free state efile , 501(c)(7) Social clubs, 501(c)(8) Fraternal beneficiary societies, orders, or associations, 501(c)(9) Voluntary employees’ beneficiary associations, 501(c)(10) Domestic fraternal societies, orders, etc. Turbotax free state efile , 501(c)(12) Benevolent life insurance associations, mutual ditch or irrigation companies, mutual or cooperative telephone companies, 501(c)(13) Cemetery companies, 501(c)(15) Mutual insurance companies or associations, 501(c)(17) Trusts providing for the payment of supplemental unemployment compensation benefits, 501(c)(19) A post, organization, auxiliary unit, etc. Turbotax free state efile of past or present members of the Armed Forces of the United States, and 501(c)(25) Title holding corporations or trusts. Turbotax free state efile  Form 8718, User Fee for Exempt Organization Determination Letter Request, must also be sent along with Form 1024. Turbotax free state efile Letter application. Turbotax free state efile   If your organization is seeking recognition of exemption under section 501(c)(11), (14), (16), (18), (21), (22), (23), (26), (27), (28), or (29), submit a letter application with Form 8718. Turbotax free state efile See Required Inclusions for the information to include with the letter application. Turbotax free state efile Form 1028. Turbotax free state efile   Use Form 1028 if your organization is a farmers’ cooperative seeking recognition of exemption under section 521. Turbotax free state efile You must also submit Form 8718. Turbotax free state efile Form 8871. Turbotax free state efile    Use Form 8871 if you are a political party or campaign committee for a candidate for federal, state or local office seeking to be treated as tax-exempt under section 527. Turbotax free state efile See Political Organization Income Tax Return , later. Turbotax free state efile    Some organizations do not have to use specific application forms. Turbotax free state efile The application your organization must use is specified in the chapter in this publication dealing with your kind of organization. Turbotax free state efile It is also shown in the Organization Reference Chart, later. Turbotax free state efile Power of attorney. Turbotax free state efile   If your organization expects to be represented by an individual such as an attorney, CPA, officer or other person authorized to practice before the IRS, whether in person or by correspondence, you must file a Form 2848 with your exemption application. Turbotax free state efile The power of attorney must specifically authorize an individual to represent your organization. Turbotax free state efile You cannot name an organization, firm, etc. Turbotax free state efile as your representative. Turbotax free state efile Form 2848, Power of Attorney and Declaration of Representative, can be used for this purpose. Turbotax free state efile The categories of individuals who can represent you before the IRS are listed on the form. Turbotax free state efile Non-exemption for terrorist organizations. Turbotax free state efile   An organization that is identified or designated as a terrorist organization within the meaning of section 501(p)(2) is not eligible to apply for recognition of exemption. Turbotax free state efile User fee. Turbotax free state efile   The law requires the payment of a user fee for determination letter requests such as your application for recognition of tax-exempt status. Turbotax free state efile If you are filing Form 1023, user fee information is included in Part XI. Turbotax free state efile If you are required to apply for recognition of exemption by submitting Form 1024, a letter application, etc. Turbotax free state efile and you must pay a user fee, you should use Form 8718 to figure the amount of your user fee and to pay it. Turbotax free state efile Your payment must accompany your request. Turbotax free state efile The IRS will not process a request unless the fee has been paid. Turbotax free state efile    For the current user fee amount and processing time for applications go to IRS. Turbotax free state efile gov and select “Charities and Non-Profits” from the buttons near the top. Turbotax free state efile Then select the underlined link “How to Apply To Be Tax-Exempt” for the latest user fees or I want to check the status of my application for more information. Turbotax free state efile You can also call 1-877-829-5500. Turbotax free state efile Required Inclusions Employer identification number (EIN). Turbotax free state efile   Every exempt organization must have an EIN, whether or not it has any employees. Turbotax free state efile An EIN is required before an exemption application is submitted. Turbotax free state efile Information on how to apply for an EIN by using one of the following methods can be found at Employer ID Numbers (EIN): Online— This is the preferred method for requesting an EIN. Turbotax free state efile The EIN is issued immediately once the application information is validated. Turbotax free state efile By telephone at 1-800-829-4933, from 7:00 a. Turbotax free state efile m. Turbotax free state efile to 7:00 p. Turbotax free state efile m. Turbotax free state efile local time, Monday through Friday. Turbotax free state efile The EIN is provided over the phone to an authorized individual. Turbotax free state efile By mailing or faxing Form SS-4, Application for Employer Identification Number. Turbotax free state efile If the faxed Form SS-4 includes the taxpayer's fax number, a fax will be sent back with the EIN within four (4) business days. Turbotax free state efile    Use only one method for each entity so you do not receive more than one EIN for an entity. Turbotax free state efile   If you previously applied for an EIN and have not yet received it, or you are unsure whether you have an EIN, please call our toll-free customer account services number, 1-877-829-5500, for assistance. Turbotax free state efile Organizing documents. Turbotax free state efile   Your application should include a copy of the organizing or enabling document that is signed by a principal officer or is accompanied by a written declaration signed by an authorized individual certifying that the document is a complete and accurate copy of the original or meets the requirements of a conformed copy. Turbotax free state efile   If your organizing or enabling document are articles of incorporation, include evidence that it was filed and approved by a state official. Turbotax free state efile (For example, a stamped “Filed” copy dated by the Secretary of State is prima facie evidence that it was filed and approved by a state official. Turbotax free state efile ) A copy of the articles of incorporation can also be submitted with a written declaration signed by an authorized individual indicating the copy is complete and was filed and approved by the state, including the date filed. Turbotax free state efile Bylaws. Turbotax free state efile   Bylaws alone are not organizing documents. Turbotax free state efile However, if your organization has adopted bylaws, include a current copy. Turbotax free state efile The bylaws need not be signed if submitted as an attachment. Turbotax free state efile   If your organization's name has been officially changed by an amendment to your organizing instruments, you should also attach a conformed copy of that amendment to your application. Turbotax free state efile    Bylaws may be considered an organizing document only if they are properly structured (includes name, purpose, signatures, and intent to form an organization). Turbotax free state efile Conformed copy. Turbotax free state efile   A conformed copy is a copy that agrees with the original and all amendments to it. Turbotax free state efile If the original document required a signature, the copy should either be signed by a principal officer or, if not signed, be accompanied by a written declaration signed by an authorized officer of the organization. Turbotax free state efile With either option, the officer must certify that the document is a complete and accurate copy of the original. Turbotax free state efile A certificate of incorporation should be approved and dated by an appropriate state official. Turbotax free state efile Attachments. Turbotax free state efile    When submitting attachments, every attachment should show your organization's name and EIN. Turbotax free state efile It should also state that it is an attachment to your application form and identify the part and line item number to which it applies. Turbotax free state efile Original documents. Turbotax free state efile   Do not submit original documents because they become part of the IRS file and cannot be returned. Turbotax free state efile Description of activities. Turbotax free state efile   Your application must include a full description of the proposed activities of your organization, including each of the fundraising activities of a section 501(c)(3) organization and a narrative description of anticipated receipts and contemplated expenditures. Turbotax free state efile When describing the activities in which your organization expects to engage, you must include the standards, criteria, procedures, or other means that your organization adopted or planned for carrying out those activities. Turbotax free state efile   To determine the information you need to provide, you should study the part of this publication that applies to your organization. Turbotax free state efile The appropriate chapter will describe the purposes and activities that your organization must pursue, engage in, and include in your application in order to achieve exempt status. Turbotax free state efile   Often, your organization's articles of organization (or other organizing instruments) contain descriptions of your organization's purposes and activities. Turbotax free state efile   Your application should describe completely and in detail your past, present, and planned activities. Turbotax free state efile Financial data. Turbotax free state efile   You must include in your application financial statements showing your receipts and expenditures and a balance sheet for the current year and the 3 preceding years (or for the number of years your organization was in existence, if less than 4 years). Turbotax free state efile For each accounting period, you must describe the sources of your receipts and the nature of your expenditures. Turbotax free state efile   If you have not yet begun operations, or have operated for less than 1 year, a proposed budget for 2 full accounting periods and a current statement of assets and liabilities will be acceptable. Turbotax free state efile Exempt status established in application. Turbotax free state efile   If your application and its supporting documents show that your organization meets the requirements for tax-exempt status under the Code section you applied, the IRS will issue a favorable determination letter or ruling. Turbotax free state efile Miscellaneous Procedures To help in processing your application, be sure to attach all schedules, statements, and other documents required by the application form. Turbotax free state efile If you do not attach them, you may have to resubmit your application or you may otherwise encounter a delay in processing your application. Turbotax free state efile Incomplete application. Turbotax free state efile   If an application is not complete and does not contain all the required attachments found under Required Inclusions, the IRS may return it to you for completion. Turbotax free state efile The IRS may keep the application and send a letter requesting the missing information if most of the information has been received. Turbotax free state efile   If the IRS returns the application or requests additional information from you, that application will be considered filed on the date the substantially completed application is postmarked, or if no postmark, received at the IRS. Turbotax free state efile   Generally, the user fee will not be refunded if an incomplete application is filed. Turbotax free state efile   Additional information may be requested if necessary to clarify the nature of your organization. Turbotax free state efile Application made under wrong paragraph of section 501(c). Turbotax free state efile   Occasionally, an organization appears to qualify for exemption under a paragraph of section 501(c) that is different from the one for which the organization applied. Turbotax free state efile If the application was made on Form 1024, which applies to more than one paragraph of section 501(c), the organization can be recognized as exempt under any paragraph to which the form applies if the organization has agreed to have its application considered under that paragraph. Turbotax free state efile It must also supply any additional information required for the application under the new paragraph. Turbotax free state efile Different application form needed. Turbotax free state efile   If a different application form is required for your organization, the IRS will so advise your organization and will provide the appropriate application form for your convenience in reapplying under that paragraph, if you wish to do so. Turbotax free state efile Although supporting information previously furnished need not be duplicated, you must provide any necessary additional information required for the application. Turbotax free state efile If your reply is not received within a limited time, your application will be processed only for the paragraph under which you originally applied. Turbotax free state efile   When a specific application form is needed for the paragraph under which your organization qualifies, that form is required before a letter recognizing exemption can be issued. Turbotax free state efile This includes cases in which a determination letter is modified to recognize an organization's exempt status under a paragraph other than the paragraph under which it originally established exemption. Turbotax free state efile IRS responses. Turbotax free state efile   Organizations that submit a complete application will receive an acknowledgment from the IRS. Turbotax free state efile Others will receive a letter requesting more information or returning an incomplete application. Turbotax free state efile Applicants also will be notified if the application is forwarded to EO Technical Office for consideration. Turbotax free state efile These letters will be sent out as soon as possible after receipt of the organization's application. Turbotax free state efile Withdrawal of application. Turbotax free state efile   An application may be withdrawn at any time before the issuance of a ruling or determination letter upon the written request of a principal officer or authorized representative of your organization. Turbotax free state efile However, the withdrawal will not prevent the information contained in the application from being used by the IRS in any subsequent examination of your organization's returns. Turbotax free state efile The information forwarded with an application will not be returned to your organization and, generally, when an application is withdrawn, the user fee paid will not be refunded. Turbotax free state efile Requests for withholding of information from the public. Turbotax free state efile   The law requires many exempt organizations and private foundations to make their application forms and annual information returns available for public inspection. Turbotax free state efile The law also requires the IRS to make available for public inspection, in accordance with section 6104 and the related regulations, your approved application for recognition of exemption (including any papers submitted in support of the application) and the ruling or determination letter (discussed later, under Rulings and Determination Letters . Turbotax free state efile )   Any information submitted in the application or in support of it that relates to any trade secret, patent, process, style of work, or apparatus, upon request, can be withheld from public inspection if the IRS determines that the disclosure of such information would adversely affect the organization. Turbotax free state efile Your request must: Identify the material to be withheld (the document, page, paragraph, and line) by clearly marking it “Not Subject To Public Inspection. Turbotax free state efile ” Include the reasons for your organization's position that the information is of the type that can be withheld from public inspection. Turbotax free state efile Be filed with the office where your organization files the documents in which the material to be withheld is contained. Turbotax free state efile Where to file. Turbotax free state efile   Send your application for exempt status and Form 8718, (if required) to: Internal Revenue Service PO Box 12192 Covington, KY 41012-0192   Your application will be considered by EO Determinations, who will either issue a favorable determination letter to your organization, issue an adverse determination letter denying the exempt status claimed in the application, or refer the case to the Exempt Organizations Technical Office (EO Technical). Turbotax free state efile    Form 8940, Request for Miscellaneous Determination. Turbotax free state efile You can request miscellaneous determinations under sections 507, 509(a), 4940, 4942, 4945, and 6033 with Form 8940. Turbotax free state efile Nonexempt charitable trusts also file Form 8940 for an initial determination of section 509(a)(3) status or change to their type. Turbotax free state efile See Form 8940 and instructions for more information. Turbotax free state efile Requests other than applications. Turbotax free state efile Requests other than applications for recognition of exemption or Form 8940 (for example, requests for rulings involving feeder organizations, application of excise taxes to activities of private foundations, taxation of unrelated business income, etc. Turbotax free state efile ) should be sent to: Internal Revenue Service  Attention: EO Letter Rulings PO Box 27720 McPherson Station Washington, DC 20038 These requests, similar to applications for recognition of exemption previously discussed, must be accompanied by the appropriate user fee. Turbotax free state efile The schedule for user fees, including those for requests other than applications, can be found in Revenue Procedure 2013-8, 2013-1 I. Turbotax free state efile R. Turbotax free state efile B. Turbotax free state efile 237. Turbotax free state efile Referral to EO Technical. Turbotax free state efile   EO Determinations will refer to EO Technical any exempt organization issue concerning qualification for exemption or foundation status for which there is no published precedent or for which there is reason to believe that nonuniformity exists. Turbotax free state efile EO Determinations can request technical advice on any technical or procedural question that cannot be resolved on the basis of law, regulations, or a clearly applicable revenue ruling or other published precedent. Turbotax free state efile An organization can request that an issue be referred to EO Technical for technical advice if it feels that a lack of uniformity exists as to the disposition of the issue or if an issue is so unusual or complex as to warrant consideration by EO Technical. Turbotax free state efile If a determination letter is issued based on technical advice from EO Technical regarding qualification for exemption or foundation status, no further administrative appeal is available on the issue that was the subject of technical advice. Turbotax free state efile Reminder. Turbotax free state efile   The law requires payment of a user fee for determination letter requests. Turbotax free state efile Go to IRS. Turbotax free state efile gov/Charities and select Current User Fees-Exempt Organizations to find the required payment. Turbotax free state efile Payment must accompany each request. Turbotax free state efile Rulings and Determination Letters Elimination of the advance public charity status. Turbotax free state efile   New regulations eliminate the advance ruling process for a section 501(c)(3) organization. Turbotax free state efile Under the new regulations, a new section 501(c)(3) organization will be classified as a publicly supported organization and not a private foundation if it can show when it applies for tax-exempt status that it reasonably can be expected to be publicly supported. Turbotax free state efile The new rules no longer require the organization to file Form 8734, Support Schedule for Advance Ruling Period, after completing its first 5 tax years. Turbotax free state efile See Elimination of the Advance Ruling Process . Turbotax free state efile An organization must describe fully the activities in which it expects to engage. Turbotax free state efile This includes standards, procedures, or other means adopted or planned by the organization for carrying out its activities, expected sources of funds, and the nature of its contemplated expenses. Turbotax free state efile When an organization does not supply the information previously mentioned under Application Procedures , or fails to furnish a sufficiently detailed description of its proposed activities to permit a conclusion that it will clearly be exempt, a proposed adverse determination letter or ruling may be issued. Turbotax free state efile Adverse determination. Turbotax free state efile   A proposed adverse ruling or determination letter will be issued to an organization that has not provided sufficiently detailed information to establish that it qualifies for exemption or if the information provided establishes that it does not qualify for exemption. Turbotax free state efile An organization can appeal a proposed adverse ruling or determination letter. Turbotax free state efile See Appeal Procedures , later. Turbotax free state efile Effective Date of Exemption A ruling or determination letter recognizing exemption is usually effective as of the date of formation of an organization if, during the period before the date of the ruling or determination letter, its purposes and activities were those required by the law. Turbotax free state efile (See Application for Recognition of Exemption in chapter 3 for the special rule for organizations applying for recognition of exemption under section 501(c)(3). Turbotax free state efile ) Upon obtaining recognition of exemption, the organization can file a claim for a refund of income taxes paid for the period for which its exempt status is recognized. Turbotax free state efile If an organization is required to alter its activities or substantially amend its charter to qualify, the ruling or determination letter recognizing exemption will be effective as of the date specified in the letter. Turbotax free state efile If a nonsubstantive amendment is made, such as correction of a clerical error in the enabling instrument or the addition of a dissolution clause, exemption will ordinarily be recognized as of the date of formation if the activities of the organization before the ruling or determination are consistent with the exemption requirements. Turbotax free state efile A ruling or determination letter recognizing exemption cannot be relied on if there is a material change, inconsistent with exemption, in the character, the purpose, or the method of operation of the organization. Turbotax free state efile Also, a ruling or determination letter cannot be relied on if it is based on any inaccurate material factual representations. Turbotax free state efile Revocation or Modification of Exemption A ruling or determination letter recognizing exemption may be revoked or modified by: A notice to the organization to which the ruling or determination letter originally was issued, Enactment of legislation or ratification of a tax treaty, A decision of the United States Supreme Court, Issuance of temporary or final regulations, or Issuance of a revenue ruling, a revenue procedure, or other statement published in the Internal Revenue Bulletin or Cumulative Bulletin. Turbotax free state efile When revocation takes effect. Turbotax free state efile   If the organization omitted or misstated a material fact, operated in a manner materially different from that originally represented, or, with regard to organizations to which section 503 applies, engaged in a prohibited transaction (such as diverting corpus or income from its exempt purpose), the revocation or modification may be retroactive. Turbotax free state efile Material change in organization. Turbotax free state efile   If there is a material change, inconsistent with exemption, in the character, purpose, or method of operation of the organization, revocation or modification will ordinarily take effect as of the date of that material change. Turbotax free state efile Relief from retroactivity. Turbotax free state efile   If a ruling or determination letter was issued in error or the IRS changed its position after issuing a letter or ruling, and if section 7805(b) relief is granted, retroactivity of the revocation or modification ordinarily will be limited to a date not earlier than that on which the original ruling or determination letter was modified or revoked. Turbotax free state efile For more information on requesting section 7805(b) relief, see Revenue Procedure 2013-4, 2013-1 I. Turbotax free state efile R. Turbotax free state efile B. Turbotax free state efile 126, sec. Turbotax free state efile 13 (or later update). Turbotax free state efile Foundations. Turbotax free state efile   The determination of the effective date is the same for the revocation or modification of foundation status or operating foundation status unless the effective date is expressly covered by statute or regulations. Turbotax free state efile Written notice. Turbotax free state efile   If an EO area manager concludes, as a result of examining an information return or considering information from any other source, that a ruling or determination letter should be revoked or modified, the organization will be advised in writing of the proposed action and the reasons for it. Turbotax free state efile   The organization will also be advised of its right to protest the proposed action by requesting Appeals Office consideration. Turbotax free state efile The appeal procedures are discussed next. Turbotax free state efile Appeal Procedures If your organization applies for tax-exempt status and EO Determination decides your organization does not qualify, your organization will be advised of its rights to protest the determination by requesting Appeals Office consideration. Turbotax free state efile This process does not apply to determinations issued by EO Technical. Turbotax free state efile Your organization must submit a statement of its views fully explaining its reasoning. Turbotax free state efile The statement must be submitted within 30 days from the date of the adverse determination letter and must state whether it wishes Appeals Office consideration. Turbotax free state efile Representation. Turbotax free state efile   A principal officer or trustee can represent an organization at any level of appeal within the IRS. Turbotax free state efile Also, an attorney, certified public accountant, or individual enrolled to practice before the IRS can represent the organization. Turbotax free state efile   If the organization's representative attends a conference without a principal officer or trustee, the representative must file a proper power of attorney or a tax information authorization before receiving or inspecting confidential information. Turbotax free state efile Form 2848 or Form 8821, Tax Information Authorization, as appropriate (or any other properly written power of attorney or authorization), can be used for this purpose. Turbotax free state efile These forms can be obtained from the IRS. Turbotax free state efile For more information, see Publication 947, Practice Before the IRS and Power of Attorney. Turbotax free state efile Appeals Office Consideration EO Determinations will consider the statement protesting and appealing (hereinafter appealing) the adverse determination and decide if the information affects its determination. Turbotax free state efile If the appeal does not provide a basis to reconsider its adverse determination, it will forward the appeal and case file to the Appeals Office. Turbotax free state efile For more information about the role of the Appeals Office, see Publication 892, Exempt Organization Appeal Procedures for Unagreed Issues. Turbotax free state efile The appeal should include the following information. Turbotax free state efile The organization's name, address, daytime telephone number, and employer identification number. Turbotax free state efile A statement that the organization wants to protest the determination. Turbotax free state efile A copy of the letter showing the determination you disagree with, or the date and symbols on the determination letter. Turbotax free state efile A statement of facts supporting the organization's position in any contested factual issue. Turbotax free state efile A statement outlining the law or other authority the organization is relying on. Turbotax free state efile A statement as to whether a conference at the Appeals Office is desired. Turbotax free state efile The statement of facts in item 4 must be declared true under penalties of perjury. Turbotax free state efile This may be done by adding to the protest the following signed declaration:   “Under penalties of perjury, I declare that I have examined the statement of facts presented in this protest and in any accompanying schedules and statements and, to the best of my knowledge and belief, it is true, correct, and complete. Turbotax free state efile ”           Signature. Turbotax free state efile   If the organization's representative submits the appeal, a substitute declaration must be included, stating: That the representative prepared the appeal and accompanying documents, and Whether the representative knows personally that the statements of fact contained in the appeal and accompanying documents are true and correct. Turbotax free state efile Be sure the appeal contains all of the information requested. Turbotax free state efile Incomplete appeals will be returned for completion. Turbotax free state efile If a conference is requested, it will be held at the Appeals Office, unless the organization requests that the meeting be held at a field office convenient to both parties. Turbotax free state efile The Appeals Office, after considering the organization's appeal as well as information presented in any conference held, will notify the organization of its decision and issue an appropriate determination letter. Turbotax free state efile An adverse decision can be appealed to the courts (discussed later). Turbotax free state efile The Appeals Office must request technical advice from EO Technical on any exempt organization issue concerning qualification for exemption or foundation status for which there is no published precedent or for which there is reason to believe that nonuniformity exists. Turbotax free state efile If an organization believes that its case involves such an issue, it should ask the Appeals Office to request technical advice. Turbotax free state efile Any determination letter issued on the basis of technical advice from EO Technical cannot be appealed to the Appeals Office for those issues that were the subject of the technical advice from EO Technical. Turbotax free state efile EO Technical Consideration If an application is referred to EO Technical for issuance of a ruling and an adverse ruling is issued, the organization will be informed of the basis for the conclusion, its right to file a protest within 30 days, and its right to have a conference with EO Technical. Turbotax free state efile Administrative Remedies In the case of an application under section 501(c)(3), all of the following actions, called administrative remedies, must be completed by your organization before an unfavorable ruling or determination letter from the IRS can be appealed to the courts. Turbotax free state efile The filing of a substantially completed application Form 1023 or group exemption request under section 501(c)(3) (described earlier in this chapter) or the filing of a request for a determination of foundation status (see Private Foundations and Public Charities in chapter 3). Turbotax free state efile In the case of a late-filed application, requesting relief under Regulations section 301. Turbotax free state efile 9100 regarding applications for extensions of time for making an election or application for relief from tax (see Application for Recognition of Exemption in chapter 3). Turbotax free state efile The timely submission of all additional information requested to perfect an exemption application or request for determination of private foundation status. Turbotax free state efile Exhaustion of all administrative appeals available within the IRS, including protest of an adverse ruling issued by EO Technical in the case of an exemption application. Turbotax free state efile The actions just described will not be considered completed until the IRS has had a reasonable time to act upon the appeal or protest, as the case may be. Turbotax free state efile An organization will not be considered to have exhausted its administrative remedies before the earlier of: The completion of the steps just listed and the sending by certified or registered mail of a notice of final determination, or The expiration of the 270-day period in which the IRS has not issued a notice of final determination and the organization has taken, in a timely manner, all reasonable steps to secure a ruling or determination. Turbotax free state efile 270-day period. Turbotax free state efile   The 270-day period will be considered by the IRS to begin on the date a substantially completed Form 1023 or group exemption request is sent to the IRS. Turbotax free state efile See Application Procedures , earlier, for information needed to complete Form 1023. Turbotax free state efile   If the application does not contain all of the required items, it will not be further processed and may be returned to the applicant for completion. Turbotax free state efile The 270-day period, in this event, will not be considered as starting until the date the application is remailed to the IRS with the requested information, or, if a postmark is not evident, on the date the IRS receives a substantially completed application. Turbotax free state efile Appeal to Courts If the IRS issues an unfavorable determination letter or ruling to your organization and you have exhausted all the administrative remedies just discussed, your organization can seek judicial remedies. Turbotax free state efile For example, if your organization has paid the tax resulting from the adverse determination and met all other statutory prerequisites, it can file suit for a refund in a U. Turbotax free state efile S. Turbotax free state efile District Court or the U. Turbotax free state efile S. Turbotax free state efile Court of Federal Claims. Turbotax free state efile Or, if your organization elected not to pay the tax deficiency resulting from the adverse determination and met all other statutory prerequisites, it can file suit for a redetermination of the tax deficiencies in the United States Tax Court. Turbotax free state efile For more information on these types of suits, get Publication 556, Examination of Returns, Appeal Rights, and Claims for Refund. Turbotax free state efile In certain situations, your organization can file suit for a declaratory judgment in the U. Turbotax free state efile S. Turbotax free state efile District Court for the District of Columbia, the U. Turbotax free state efile S. Turbotax free state efile Court of Federal Claims, or the U. Turbotax free state efile S. Turbotax free state efile Tax Court. Turbotax free state efile This remedy is available if your organization received an adverse notice of final determination, or if the IRS failed to make a timely determination on your initial or continuing qualification or classification as an exempt organization. Turbotax free state efile However, your exempt status claim must be as: An organization qualifying under section 501(c)(3), An organization to which a deduction for a contribution is allowed under section 170(c)(2), An organization that is a private foundation under section 509(a), A private operating foundation under section 4942(j)(3), or A cooperative organization that is exempt from tax under section 521. Turbotax free state efile Adverse notice of final determination. Turbotax free state efile   The adverse notice of final determination referred to above is a ruling or determination letter sent by certified or registered mail holding that your organization: Is not described in section 501(c)(3) or section 170(c)(2), Is a private foundation as defined in section 4942(j)(3), or Is a public charity described in a part of section 509(a) or section 170(b)(1)(A) other than the part under which your organization requested classification. Turbotax free state efile Favorable court rulings - IRS procedure. Turbotax free state efile   If a suit results in a final determination that your organization is exempt from tax, the IRS will issue a favorable ruling or determination letter, provided your organization has filed an application for exemption and submitted a statement that the underlying facts and applicable law are the same as in the period considered by the court. Turbotax free state efile Group Exemption Letter A group exemption letter is a ruling or determination letter issued to a central organization recognizing on a group basis the exemption under section 501(c) of subordinate organizations on whose behalf the central organization has applied for recognition of exemption. Turbotax free state efile A central organization is an organization that has one or more subordinates under its general supervision or control. Turbotax free state efile A subordinate organization is a chapter, local, post, or unit of a central organization. Turbotax free state efile A central organization may be a subordinate itself, such as a state organization that has subordinate units and is itself affiliated with a national (central) organization. Turbotax free state efile A subordinate organization may or may not be incorporated, but it must have an organizing document. Turbotax free state efile A subordinate that is organized and operated in a foreign country cannot be included in a group exemption letter. Turbotax free state efile A subordinate described in section 501(c)(3) cannot be included in a group exemption letter if it is a private foundation described in section 509(a). Turbotax free state efile If your organization is a subordinate controlled by a central organization (for example, a church, a veterans' organization, or a fraternal organization), you should check with the central organization to see if it has been issued a group exemption letter that covers your organization. Turbotax free state efile If it has, you do not have to file a separate application unless your organization no longer wants to be included in the group exemption letter. Turbotax free state efile If the group exemption letter does not cover your organization, ask your central organization about being included in the next annual group ruling update that it submits to the IRS. Turbotax free state efile Central Organization Application Procedure If your organization is a central organization with affiliated subordinates under its control, it can apply for a group exemption letter for its subordinates, provided it has obtained recognition of its own exemption before or concurrently with the group exemption. Turbotax free state efile You should make the application for such subordinates by letter instead of submitting either Form 1023 or 1024. Turbotax free state efile This procedure relieves each of the subordinates covered by a group exemption letter from filing its own application. Turbotax free state efile A central organization obtains its own recognition of exemption by sending its application to the IRS address shown on Form 8718 or Form 1023. Turbotax free state efile If the central organization has previously obtained recognition of its own exemption, it must indicate its employer identification number and the date of the letter recognizing its exemption. Turbotax free state efile It need not forward documents already submitted. Turbotax free state efile However, if it has not already done so, the central organization must submit a copy of any amendment to its governing instruments or internal regulations as well as any information about changes in its character, purposes, or method of operation. Turbotax free state efile Employer identification number. Turbotax free state efile   The central organization must have an EIN before it submits a completed exemption or group exemption application. Turbotax free state efile Each subordinate must have its own EIN, even if it has no employees. Turbotax free state efile When submitting its group exemption application, the central organization must provide an EIN for each subordinate organization. Turbotax free state efile Information required for subordinate organizations. Turbotax free state efile   In addition to the information required to obtain recognition of its own exemption, the central organization must submit information for those subordinates to be included in the group exemption letter. Turbotax free state efile The information should be forwarded in a letter signed by a principal officer of the central organization setting forth or including as attachments the following. Turbotax free state efile Information verifying that the subordinates: Are affiliated with the central organization at the close of its annual accounting period; Are subject to its general supervision or control; Are all eligible to qualify for exemption under the same paragraph of section 501(c), though not necessarily the paragraph under which the central organization itself is exempt; Are not private foundations if the application for a group exemption letter involves section 501(c)(3); Are all on the same accounting period as the central organization if they are to be included in group returns; and Are organizations that have been formed within the 15-month period preceding the date of submission of the group exemption application if they are claiming section 501(c)(3) status and are subject to the requirements of section 508(a) and wish to be recognized as exempt from their dates of creation (a group exemption letter may be issued covering subordinates, one or more of which have not been organized within the 15-month period preceding the date of submission, if all subordinates are willing to be recognized as exempt only from the date of application). Turbotax free state efile A detailed description of the purposes and activities of the subordinates, including the sources of receipts and the nature of expenditures. Turbotax free state efile A sample copy of a uniform governing instrument (such as a charter or articles of association) adopted by the subordinates, or, in its absence, copies of representative instruments. Turbotax free state efile An affirmation to the effect that, to the best of the officer's knowledge, the purposes and activities of the subordinates are as stated in (2) and (3), above. Turbotax free state efile A statement that each of the subordinates has provided a written authorization to the central organization, signed by an authorized officer of the subordinate, agreeing to be included in the group exemption (see also New 501(c)(3) organizations that want to be included , later in this section). Turbotax free state efile A list of subordinates to be included in the group exemption letter to which the IRS has issued an outstanding ruling or determination letter relating to exemption. Turbotax free state efile If the application for a group exemption letter involves section 501(c)(3) and is subject to the provisions of the Code requiring that it give timely notice that it is not a private foundation (see Private Foundations in chapter 3), an affirmation to the effect that, to the best of the officer's knowledge and belief, no subordinate to be included in the group exemption letter is a private foundation as defined in section 509(a). Turbotax free state efile For each subordinate that is a school claiming exemption under section 501(c)(3), the information required by Revenue Ruling 71-447, 1971-2 C. Turbotax free state efile B. Turbotax free state efile 230 and Revenue Procedure 75-50, 1975-2 C. Turbotax free state efile B. Turbotax free state efile 587 (these requirements are fully described in chapter 3, under Private Schools ; see also Schedule B, Form 1023). Turbotax free state efile For any school affiliated with a church, the information to show that the provisions of Revenue Ruling 75-231, 1975-1 C. Turbotax free state efile B. Turbotax free state efile 158, have been met. Turbotax free state efile A list of the names, mailing addresses, actual addresses if different, and EINs of subordinates to be included in the group exemption letter. Turbotax free state efile A current directory of subordinates may be furnished instead of the list if it includes the required information and if the subordinates not to be included in the group exemption letter are identified. Turbotax free state efile New 501(c)(3) organizations that want to be included. Turbotax free state efile   A new organization, described in section 501(c)(3), that wants to be included in a group exemption letter must submit its authorization (as explained in item number 5, earlier, under Information required for subordinate organizations ) to the central organization before the end of the 15th month after it was formed in order to satisfy the requirement of section 508(a). Turbotax free state efile The central organization must also include this subordinate in its next annual submission of information, as discussed later, under Information Required Annually . Turbotax free state efile Keeping the Group Exemption Letter in Force Continued effectiveness of a group exemption letter is based on the following conditions. Turbotax free state efile The continued existence of the central organization. Turbotax free state efile The continued qualification of the central organization for exemption under section 501(c). Turbotax free state efile The submission by the central organization of the information regarding its subordinate organizations that is required annually (described under Information Required Annually). Turbotax free state efile The annual filing of an information return (Form 990, for example) by the central organization if required. Turbotax free state efile The continued effectiveness of a group exemption letter as to a particular subordinate is based on these four conditions, as well as on the continued conformity by the subordinate to the requirements for inclusion in a group exemption letter, the authorization for inclusion, and the annual filing of any required information return for the subordinate. Turbotax free state efile Information Required Annually To maintain a group exemption letter, the central organization must submit annually, at least 90 days before the close of its annual accounting period, all of the following information. Turbotax free state efile Information about all changes in the purposes, character, or method of operation of the subordinates included in the group exemption letter. Turbotax free state efile A separate list (that includes the names, mailing addresses, actual addresses if different, and EINs of the affected subordinates) for each of the three following categories. Turbotax free state efile Subordinates that have changed their names or addresses during the year. Turbotax free state efile Subordinates no longer to be included in the group exemption letter because they no longer exist or have disaffiliated from or withdrawn their authorization to the central organization. Turbotax free state efile Subordinates to be added to the group exemption letter because they are newly organized or affiliated or because they have recently authorized the central organization to include them. Turbotax free state efile An annotated directory of subordinates will not be accepted for this purpose. Turbotax free state efile If there were none of the above changes, the central organization must submit a statement to that effect. Turbotax free state efile The same information about new subordinates that was required in the initial application for group exemption. Turbotax free state efile (This information is listed in items 1 through 10, under Information required for subordinate organizations. Turbotax free state efile , earlier. Turbotax free state efile ) If a new subordinate does not differ in any material respects from the subordinates included in the application for group exemption, however, a statement to this effect may be submitted in lieu of detailed information. Turbotax free state efile The organization should send this information to:   Ogden Service Center  Mail Stop 6271 Ogden, UT 84404-4749 Submitting the required information annually does not relieve the central organization or any of its subordinates of the duty to submit any other information that may be required by an EO area manager to determine whether the conditions for continued exemption are being met. Turbotax free state efile Events Causing Loss of Group Exemption A group exemption letter no longer has effect, for either a particular subordinate or the group as a whole, when: The central organization notifies the IRS that it is going out of existence, The central organization notifies the IRS, by its annual submission or otherwise, that any of its subordinates will no longer fulfill the conditions for continued effectiveness, explained earlier, or The IRS notifies the central organization or the affected subordinate that the group exemption letter will no longer have effect for some or all of the group because the conditions for continued effectiveness of a group exemption letter have not been fulfilled. Turbotax free state efile When notice is given under any of these three conditions, the IRS will no longer recognize the exempt status of the affected subordinates until they file separate applications on their own behalf or the central organization files complete supporting information for their reinclusion in the group exemption at the time of its annual submission. Turbotax free state efile However, when the notice is given by the IRS and the withdrawal of recognition is based on the failure of the organization to comply with the requirements for recognition of tax-exempt status under the particular subsection of section 501(c), the revocation will ordinarily take effect as of the date of that failure. Turbotax free state efile The notice, however, will be given only after the appeal procedures described earlier in this chapter are completed. Turbotax free state efile Prev  Up  Next   Home   More Online Publications