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Vita Free Tax Preparation

Vita free tax preparation Internal Revenue Bulletin:  2013-12  March 18, 2013  Rev. Vita free tax preparation Proc. Vita free tax preparation 2013-21 Table of Contents SECTION 1. Vita free tax preparation PURPOSE SECTION 2. Vita free tax preparation BACKGROUND SECTION 3. Vita free tax preparation SCOPE SECTION 4. Vita free tax preparation APPLICATION. Vita free tax preparation 01 Limitations on Depreciation Deductions for Certain Automobiles. Vita free tax preparation . Vita free tax preparation 02 Inclusions in Income of Lessees of Passenger Automobiles. Vita free tax preparation SECTION 5. Vita free tax preparation EFFECTIVE DATE SECTION 6. Vita free tax preparation DRAFTING INFORMATION SECTION 1. Vita free tax preparation PURPOSE This revenue procedure provides: (1) limitations on depreciation deductions for owners of passenger automobiles first placed in service by the taxpayer during calendar year 2013, including separate tables of limitations on depreciation deductions for trucks and vans; and (2) the amounts that must be included in income by lessees of passenger automobiles first leased by the taxpayer during calendar year 2013, including a separate table of inclusion amounts for lessees of trucks and vans. Vita free tax preparation The tables detailing these depreciation limitations and lessee inclusion amounts reflect the automobile price inflation adjustments required by § 280F(d)(7) of the Internal Revenue Code. Vita free tax preparation SECTION 2. Vita free tax preparation BACKGROUND . Vita free tax preparation 01 For owners of passenger automobiles, § 280F(a) imposes dollar limitations on the depreciation deduction for the year the taxpayer places the passenger automobile in service and for each succeeding year. Vita free tax preparation For passenger automobiles placed in service after 1988, § 280F(d)(7) requires the Internal Revenue Service to increase the amounts allowable as depreciation deductions by a price inflation adjustment amount. Vita free tax preparation The method of calculating this price inflation amount for trucks and vans placed in service in or after calendar year 2003 uses a different CPI “automobile component” (the “new trucks” component) than that used in the price inflation amount calculation for other passenger automobiles (the “new cars” component), resulting in somewhat higher depreciation deductions for trucks and vans. Vita free tax preparation This change reflects the higher rate of price inflation for trucks and vans since 1988. Vita free tax preparation . Vita free tax preparation 02 Section 331(a) of the American Taxpayer Relief Act of 2012, Pub. Vita free tax preparation L. Vita free tax preparation No. Vita free tax preparation 112-240, 126 Stat. Vita free tax preparation 2313 (Jan. Vita free tax preparation 2, 2013) (the “Act”) extended the 50 percent additional first year depreciation deduction under § 168(k) to qualified property acquired by the taxpayer after December 31, 2007, and before January 1, 2014, if no written binding contract for the acquisition of the property existed before January 1, 2008, and if the taxpayer places the property in service generally before January 1, 2014. Vita free tax preparation Section 168(k)(2)(F)(i) increases the first year depreciation allowed under § 280F(a)(1)(A)(i) by $8,000 for passenger automobiles to which the additional first year depreciation deduction under § 168(k) (hereinafter, referred to as “§ 168(k) additional first year depreciation deduction”) applies. Vita free tax preparation . Vita free tax preparation 03 Section 168(k)(2)(D)(i) provides that the § 168(k) additional first year depreciation deduction does not apply to any property required to be depreciated under the alternative depreciation system of § 168(g), including property described in § 280F(b)(1). Vita free tax preparation Section 168(k)(2)(D)(iii) permits a taxpayer to elect out of the § 168(k) additional first year depreciation deduction for any class of property. Vita free tax preparation Section 168(k)(4), as amended by the Act, permits a corporation to elect to increase the alternative minimum tax (“AMT”) credit limitation under § 53(c), instead of claiming the § 168(k) additional first year depreciation deduction for all eligible qualified property placed in service after December 31, 2012, that is round 3 extension property (as defined in § 168(k)(4)(J)(iv)). Vita free tax preparation Accordingly, this revenue procedure provides tables for passenger automobiles for which the § 168(k) additional first year depreciation deduction applies. Vita free tax preparation This revenue procedure also provides tables for passenger automobiles for which the § 168(k) additional first year depreciation deduction does not apply, either because taxpayer: (1) purchased the passenger automobile used; (2) did not use the passenger automobile during 2013 more than 50 percent for business purposes; (3) elected out of the § 168(k) additional first year depreciation deduction pursuant to § 168(k)(2)(D)(iii); or (4) elected to increase the § 53 AMT credit limitation in lieu of claiming § 168(k) additional first year depreciation. Vita free tax preparation . Vita free tax preparation 04 Section 280F(c) requires a reduction in the deduction allowed to the lessee of a leased passenger automobile. Vita free tax preparation The reduction must be substantially equivalent to the limitations on the depreciation deductions imposed on owners of passenger automobiles. Vita free tax preparation Under § 1. Vita free tax preparation 280F-7(a) of the Income Tax Regulations, this reduction requires a lessee to include in gross income an amount determined by applying a formula to the amount obtained from a table. Vita free tax preparation One table applies to lessees of trucks and vans and another table applies to all other passenger automobiles. Vita free tax preparation Each table shows inclusion amounts for a range of fair market values for each taxable year after the passenger automobile is first leased. Vita free tax preparation SECTION 3. Vita free tax preparation SCOPE . Vita free tax preparation 01 The limitations on depreciation deductions in section 4. Vita free tax preparation 01(2) of this revenue procedure apply to passenger automobiles (other than leased passenger automobiles) that are placed in service by the taxpayer in calendar year 2013, and continue to apply for each taxable year that the passenger automobile remains in service. Vita free tax preparation . Vita free tax preparation 02 The tables in section 4. Vita free tax preparation 02 of this revenue procedure apply to leased passenger automobiles for which the lease term begins during calendar year 2013. Vita free tax preparation Lessees of these passenger automobiles must use these tables to determine the inclusion amount for each taxable year during which the passenger automobile is leased. Vita free tax preparation See Rev. Vita free tax preparation Proc. Vita free tax preparation 2008-22, 2008-1 C. Vita free tax preparation B. Vita free tax preparation 658, for passenger automobiles first leased during calendar year 2008; Rev. Vita free tax preparation Proc. Vita free tax preparation 2009-24, 2009-17 I. Vita free tax preparation R. Vita free tax preparation B. Vita free tax preparation 885, for passenger automobiles first leased during calendar year 2009; Rev. Vita free tax preparation Proc. Vita free tax preparation 2010-18, 2010-09 I. Vita free tax preparation R. Vita free tax preparation B. Vita free tax preparation 427, as amplified and modified by section 4. Vita free tax preparation 03 of Rev. Vita free tax preparation Proc. Vita free tax preparation 2011-21, 2011-12 I. Vita free tax preparation R. Vita free tax preparation B. Vita free tax preparation 560, for passenger automobiles first leased during calendar year 2010; Rev. Vita free tax preparation Proc. Vita free tax preparation 2011-21, for passenger automobiles first leased during calendar year 2011; and Rev. Vita free tax preparation Proc. Vita free tax preparation 2012-23, 2012-14 I. Vita free tax preparation R. Vita free tax preparation B. Vita free tax preparation 712, for passenger automobiles first leased during calendar year 2012. Vita free tax preparation SECTION 4. Vita free tax preparation APPLICATION . Vita free tax preparation 01 Limitations on Depreciation Deductions for Certain Automobiles. Vita free tax preparation (1) Amount of the inflation adjustment. Vita free tax preparation (a) Passenger automobiles (other than trucks or vans). Vita free tax preparation Under § 280F(d)(7)(B)(i), the automobile price inflation adjustment for any calendar year is the percentage (if any) by which the CPI automobile component for October of the preceding calendar year exceeds the CPI automobile component for October 1987. Vita free tax preparation Section 280F(d)(7)(B)(ii) defines the term “CPI automobile component” as the automobile component of the Consumer Price Index for all Urban Consumers published by the Department of Labor. Vita free tax preparation The new car component of the CPI was 115. Vita free tax preparation 2 for October 1987 and 143. Vita free tax preparation 787 for October 2012. Vita free tax preparation The October 2012 index exceeded the October 1987 index by 28. Vita free tax preparation 587. Vita free tax preparation Therefore, the automobile price inflation adjustment for 2013 for passenger automobiles (other than trucks and vans) is 24. Vita free tax preparation 8 percent (28. Vita free tax preparation 587/115. Vita free tax preparation 2 x 100%). Vita free tax preparation The dollar limitations in § 280F(a) are multiplied by a factor of 0. Vita free tax preparation 248, and the resulting increases, after rounding to the nearest $100, are added to the 1988 limitations to give the depreciation limitations applicable to passenger automobiles (other than trucks and vans) for calendar year 2013. Vita free tax preparation This adjustment applies to all passenger automobiles (other than trucks and vans) that are first placed in service in calendar year 2013. Vita free tax preparation (b) Trucks and vans. Vita free tax preparation To determine the dollar limitations for trucks and vans first placed in service during calendar year 2013, the Service uses the new truck component of the CPI instead of the new car component. Vita free tax preparation The new truck component of the CPI was 112. Vita free tax preparation 4 for October 1987 and 149. Vita free tax preparation 386 for October 2012. Vita free tax preparation The October 2012 index exceeded the October 1987 index by 36. Vita free tax preparation 986. Vita free tax preparation Therefore, the automobile price inflation adjustment for 2013 for trucks and vans is 32. Vita free tax preparation 9 percent (36. Vita free tax preparation 986/112. Vita free tax preparation 4 x 100%). Vita free tax preparation The dollar limitations in § 280F(a) are multiplied by a factor of 0. Vita free tax preparation 329, and the resulting increases, after rounding to the nearest $100, are added to the 1988 limitations to give the depreciation limitations for trucks and vans. Vita free tax preparation This adjustment applies to all trucks and vans that are first placed in service in calendar year 2013. Vita free tax preparation (2) Amount of the limitation. Vita free tax preparation Tables 1 through 4 contain the dollar amount of the depreciation limitation for each taxable year for passenger automobiles a taxpayer places in service in calendar year 2013. Vita free tax preparation Use Table 1 for a passenger automobile (other than a truck or van), and Table 2 for a truck or van, placed in service in calendar year 2013 for which the § 168(k) additional first year depreciation deduction applies. Vita free tax preparation Use Table 3 for a passenger automobile (other than a truck or van), and Table 4 for a truck or van, placed in service in calendar year 2013 for which the § 168(k) additional first year depreciation deduction does not apply. Vita free tax preparation REV. Vita free tax preparation PROC. Vita free tax preparation 2013-21 TABLE 1 DEPRECIATION LIMITATIONS FOR PASSENGER AUTOMOBILES (THAT ARE NOT TRUCKS OR VANS) PLACED IN SERVICE IN CALENDAR YEAR 2013 FOR WHICH THE § 168(k) ADDITIONAL FIRST YEAR DEPRECIATION DEDUCTION APPLIES Tax Year Amount 1st Tax Year $11,160 2nd Tax Year $5,100 3rd Tax Year $3,050 Each Succeeding Year $1,875 REV. Vita free tax preparation PROC. Vita free tax preparation 2013-21 TABLE 2 DEPRECIATION LIMITATIONS FOR TRUCKS AND VANS PLACED IN SERVICE IN CALENDAR YEAR 2013 FOR WHICH THE § 168(k) ADDITIONAL FIRST YEAR DEPRECIATION DEDUCTION APPLIES Tax Year Amount 1st Tax Year $11,360 2nd Tax Year $5,400 3rd Tax Year $3,250 Each Succeeding Year $1,975 REV. Vita free tax preparation PROC. Vita free tax preparation 2013-21 TABLE 3 DEPRECIATION LIMITATIONS FOR PASSENGER AUTOMOBILES (THAT ARE NOT TRUCKS OR VANS) PLACED IN SERVICE IN CALENDAR YEAR 2013 FOR WHICH THE § 168(k) ADDITIONAL FIRST YEAR DEPRECIATION DEDUCTION DOES NOT APPLY Tax Year Amount 1st Tax Year $3,160 2nd Tax Year $5,100 3rd Tax Year $3,050 Each Succeeding Year $1,875 REV. Vita free tax preparation PROC. Vita free tax preparation 2013-21 TABLE 4 DEPRECIATION LIMITATIONS FOR TRUCKS AND VANS PLACED IN SERVICE IN CALENDAR YEAR 2013 FOR WHICH THE § 168(k) ADDITIONAL FIRST YEAR DEPRECIATION DEDUCTION DOES NOT APPLY Tax Year Amount 1st Tax Year $3,360 2nd Tax Year $5,400 3rd Tax Year $3,250 Each Succeeding Year $1,975 . Vita free tax preparation 02 Inclusions in Income of Lessees of Passenger Automobiles. Vita free tax preparation A taxpayer must follow the procedures in § 1. Vita free tax preparation 280F-7(a) for determining the inclusion amounts for passenger automobiles first leased in calendar year 2013. Vita free tax preparation In applying these procedures, lessees of passenger automobiles other than trucks and vans should use Table 5 of this revenue procedure, while lessees of trucks and vans should use Table 6 of this revenue procedure. Vita free tax preparation REV. Vita free tax preparation PROC. Vita free tax preparation 2013-21 TABLE 5 DOLLAR AMOUNTS FOR PASSENGER AUTOMOBILES (THAT ARE NOT TRUCKS OR VANS) WITH A LEASE TERM BEGINNING IN CALENDAR YEAR 2013 Fair Market Value of Passenger Automobile Tax Year During Lease Over Not Over 1st 2nd 3rd 4th 5th & later $19,000 $19,500 2 4 6 7 8 19,500 20,000 2 5 6 9 9 20,000 20,500 2 5 8 9 11 20,500 21,000 3 6 8 10 12 21,000 21,500 3 6 10 11 13 21,500 22,000 3 7 10 13 14 22,000 23,000 4 8 11 14 16 23,000 24,000 4 9 14 16 18 24,000 25,000 5 10 15 18 21 25,000 26,000 5 12 16 21 23 26,000 27,000 6 12 19 23 25 27,000 28,000 6 14 20 25 28 28,000 29,000 7 15 22 27 30 29,000 30,000 7 16 24 29 33 30,000 31,000 8 17 26 31 35 31,000 32,000 8 19 27 33 38 32,000 33,000 9 20 29 35 40 33,000 34,000 10 21 31 37 43 34,000 35,000 10 22 33 39 45 35,000 36,000 11 23 35 41 48 36,000 37,000 11 25 36 43 50 37,000 38,000 12 26 38 45 53 38,000 39,000 12 27 40 47 55 39,000 40,000 13 28 42 49 58 40,000 41,000 13 29 44 52 59 41,000 42,000 14 30 45 54 63 42,000 43,000 14 32 47 56 64 43,000 44,000 15 33 48 59 67 44,000 45,000 15 34 51 60 69 45,000 46,000 16 35 52 63 72 46,000 47,000 17 36 54 65 74 47,000 48,000 17 38 55 67 77 48,000 49,000 18 39 57 69 79 49,000 50,000 18 40 59 71 82 50,000 51,000 19 41 61 73 84 51,000 52,000 19 42 63 75 87 52,000 53,000 20 43 65 77 89 53,000 54,000 20 45 66 79 92 54,000 55,000 21 46 68 81 94 55,000 56,000 21 47 70 84 96 56,000 57,000 22 48 72 85 99 57,000 58,000 22 50 73 88 101 58,000 59,000 23 51 75 90 103 59,000 60,000 24 52 76 92 106 60,000 62,000 24 54 79 95 110 62,000 64,000 25 56 83 99 115 64,000 66,000 27 58 87 103 120 66,000 68,000 28 60 90 108 125 68,000 70,000 29 63 93 112 130 70,000 72,000 30 65 97 117 134 72,000 74,000 31 68 100 121 139 74,000 76,000 32 70 104 125 144 76,000 78,000 33 73 107 129 149 78,000 80,000 34 75 111 133 154 80,000 85,000 36 79 117 141 162 85,000 90,000 39 85 126 151 174 90,000 95,000 41 91 135 162 186 95,000 100,000 44 97 144 172 199 100,000 110,000 48 106 157 188 217 110,000 120,000 53 118 174 210 241 120,000 130,000 59 129 193 230 266 130,000 140,000 64 141 210 252 290 140,000 150,000 70 153 227 273 315 150,000 160,000 75 165 245 294 339 160,000 170,000 80 177 263 315 363 170,000 180,000 86 189 280 336 388 180,000 190,000 91 201 298 357 412 190,000 200,000 97 212 316 378 436 200,000 210,000 102 224 333 400 461 210,000 220,000 107 236 351 420 486 220,000 230,000 113 248 368 442 509 230,000 240,000 118 260 386 463 534 240,000 And up 124 272 403 484 558 REV. Vita free tax preparation PROC. Vita free tax preparation 2013-21 TABLE 6 DOLLAR AMOUNTS FOR TRUCKS AND VANS WITH A LEASE TERM BEGINNING IN CALENDAR YEAR 2013 Fair Market Value of Truck or Van Tax Year During Lease Over Not Over 1st 2nd 3rd 4th 5th & later $19,000 $19,500 1 3 4 5 6 19,500 20,000 2 3 5 6 7 20,000 20,500 2 4 6 7 8 20,500 21,000 2 5 7 8 9 21,000 21,500 2 5 8 9 11 21,500 22,000 3 6 8 10 12 22,000 23,000 3 7 10 11 14 23,000 24,000 4 8 11 14 16 24,000 25,000 4 9 14 16 18 25,000 26,000 5 10 15 18 21 26,000 27,000 5 12 17 20 23 27,000 28,000 6 13 18 23 25 28,000 29,000 6 14 20 25 28 29,000 30,000 7 15 22 27 30 30,000 31,000 7 16 24 29 33 31,000 32,000 8 17 26 31 35 32,000 33,000 8 19 27 33 38 33,000 34,000 9 20 29 35 41 34,000 35,000 10 21 31 37 43 35,000 36,000 10 22 33 39 46 36,000 37,000 11 23 35 41 48 37,000 38,000 11 25 36 43 51 38,000 39,000 12 26 38 45 53 39,000 40,000 12 27 40 48 55 40,000 41,000 13 28 42 49 58 41,000 42,000 13 29 44 52 60 42,000 43,000 14 30 46 54 62 43,000 44,000 14 32 47 56 65 44,000 45,000 15 33 48 59 67 45,000 46,000 15 34 51 60 70 46,000 47,000 16 35 52 63 72 47,000 48,000 17 36 54 65 74 48,000 49,000 17 38 55 67 77 49,000 50,000 18 39 57 69 79 50,000 51,000 18 40 59 71 82 51,000 52,000 19 41 61 73 84 52,000 53,000 19 42 63 75 87 53,000 54,000 20 43 65 77 89 54,000 55,000 20 45 66 80 91 55,000 56,000 21 46 68 81 94 56,000 57,000 21 47 70 84 96 57,000 58,000 22 48 72 86 98 58,000 59,000 22 50 73 88 101 59,000 60,000 23 51 75 90 103 60,000 62,000 24 52 78 93 108 62,000 64,000 25 55 81 97 113 64,000 66,000 26 57 85 101 118 66,000 68,000 27 60 88 106 122 68,000 70,000 28 62 92 110 127 70,000 72,000 29 64 96 114 132 72,000 74,000 30 67 99 118 137 74,000 76,000 31 69 103 122 142 76,000 78,000 32 72 105 127 147 78,000 80,000 34 73 110 131 151 80,000 85,000 35 78 116 138 160 85,000 90,000 38 84 124 149 172 90,000 95,000 41 90 133 160 184 95,000 100,000 44 95 142 171 196 100,000 110,000 48 104 156 186 214 110,000 120,000 53 116 173 207 240 120,000 130,000 58 128 191 228 264 130,000 140,000 64 140 208 249 288 140,000 150,000 69 152 226 270 313 150,000 160,000 75 164 243 292 336 160,000 170,000 80 176 261 312 361 170,000 180,000 85 188 278 334 386 180,000 190,000 91 199 296 355 410 190,000 200,000 96 211 314 376 434 200,000 210,000 101 223 332 397 459 210,000 220,000 107 235 349 418 483 220,000 230,000 112 247 367 439 507 230,000 240,000 118 259 384 460 532 240,000 And up 123 271 401 482 556 SECTION 5. Vita free tax preparation EFFECTIVE DATE This revenue procedure applies to passenger automobiles that a taxpayer first places in service or first leases during calendar year 2013. Vita free tax preparation SECTION 6. Vita free tax preparation DRAFTING INFORMATION The principal author of this revenue procedure is Bernard P. Vita free tax preparation Harvey of the Office of Associate Chief Counsel (Income Tax & Accounting). Vita free tax preparation For further information regarding this revenue procedure, contact Mr. Vita free tax preparation Harvey at (202) 622-4930 (not a toll-free call). Vita free tax preparation Prev  Up  Next   Home   More Internal Revenue Bulletins
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The Vita Free Tax Preparation

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