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Vita tax service 7. Vita tax service   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 tax service Topics - This chapter discusses: Forms aliens must file, When and where to file, Penalties, and Amended returns and claims for refund. Vita tax service Useful Items - You may want to see: Forms (and Instructions) 1040 U. Vita tax service S. Vita tax service Individual Income Tax Return 1040A U. Vita tax service S. Vita tax service Individual Income Tax Return 1040EZ Income Tax Return for Single and Joint Filers With No Dependents 1040NR U. Vita tax service S. Vita tax service Nonresident Alien Income Tax Return 1040NR-EZ U. Vita tax service S. Vita tax service Income Tax Return for Certain Nonresident Aliens With No Dependents See chapter 12 for information about getting these forms. Vita tax service 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 tax service Resident Aliens Resident aliens should file Form 1040EZ, 1040A, or 1040 at the address shown in the instructions for that form. Vita tax service 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 tax service Under U. Vita tax service S. Vita tax service 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 tax service Extensions of time to file. Vita tax service   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 tax service 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 tax service Use Form 4868 to get the extension to October 15. Vita tax service 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 tax service To request this extension, you must send the IRS a letter explaining the reasons why you need the additional 2 months. Vita tax service 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 tax service   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 tax service S. Vita tax service citizens and resident aliens abroad who expect to qualify for special tax treatment). Vita tax service    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 tax service You may be able to file your return electronically. Vita tax service See IRS e-file in your form instructions. Vita tax service Nonresident Aliens Nonresident aliens who are required to file an income tax return should use Form 1040NR or, if qualified, Form 1040NR-EZ. Vita tax service If you are any of the following, you must file a return. Vita tax service A nonresident alien individual engaged or considered to be engaged in a trade or business in the United States during 2013. Vita tax service (But see Exceptions , later. Vita tax service ) 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 tax service S. Vita tax service sources, or Your income is exempt from income tax. Vita tax service A nonresident alien individual not engaged in a trade or business in the United States with U. Vita tax service S. Vita tax service income on which the tax liability was not satisfied by the withholding of tax at the source. Vita tax service A representative or agent responsible for filing the return of an individual described in (1) or (2). Vita tax service A fiduciary for a nonresident alien estate or trust. Vita tax service 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 tax service For example, if you have no U. Vita tax service S. Vita tax service 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 tax service For information on what is timely, see When to file for deductions and credits under When To File, later. Vita tax service Exceptions. Vita tax service   You do not need to file Form 1040NR or Form 1040NR-EZ if you meet either of the following conditions. Vita tax service Your only U. Vita tax service S. Vita tax service 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 tax service 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 tax service Even if you have left the United States and filed a Form 1040-C, U. Vita tax service S. Vita tax service Departing Alien Income Tax Return, on departure, you still must file an annual U. Vita tax service S. Vita tax service income tax return. Vita tax service If you are married and both you and your spouse are required to file, you must each file a separate return. Vita tax service Form 1040NR-EZ You can use Form 1040NR-EZ if all of the following conditions are met. Vita tax service You do not claim any dependents. Vita tax service You cannot be claimed as a dependent on someone else's U. Vita tax service S. Vita tax service tax return. Vita tax service If you were married, you do not claim an exemption for your spouse. Vita tax service Your taxable income is less than $100,000. Vita tax service The only itemized deduction you can claim is for state and local income taxes. Vita tax service Note. Vita tax service 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 tax service See chapter 5. Vita tax service Your only U. Vita tax service S. Vita tax service 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 tax service (If you had taxable interest or dividend income, you cannot use this form. Vita tax service ) You are not claiming any adjustments to income other than the student loan interest deduction or scholarship and fellowship grants excluded. Vita tax service You are not claiming any tax credits. Vita tax service This is not an “expatriation return. Vita tax service ” See Expatriation Tax in chapter 4. Vita tax service The only taxes you owe are: The income tax from the Tax Table. Vita tax service The social security and Medicare tax from Form 4137 or Form 8919. Vita tax service You are not claiming a credit for excess social security and tier 1 RRTA tax withheld. Vita tax service 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 tax service If you do not meet all of the above conditions, you must file Form 1040NR. Vita tax service When To File If you are an employee and you receive wages subject to U. Vita tax service S. Vita tax service income tax withholding, you will generally file by the 15th day of the 4th month after your tax year ends. Vita tax service For the 2013 calendar year, file your return by April 15, 2014. Vita tax service If you are not an employee who receives wages subject to U. Vita tax service S. Vita tax service income tax withholding, you must file by the 15th day of the 6th month after your tax year ends. Vita tax service For the 2013 calendar year, file your return by June 16, 2014 (because June 15 is a Sunday. Vita tax service ) Extensions of time to file. Vita tax service   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 tax service 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 tax service You must file the extension by the regular due date of your return. Vita tax service   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 tax service To request this extension, you must send the IRS a letter explaining the reasons why you need the additional 2 months. Vita tax service 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 tax service When to file for deductions and credits. Vita tax service   To get the benefit of any allowable deductions or credits, you must timely file a true and accurate return. Vita tax service For this purpose, a return is timely if it is filed within 16 months of the due date just discussed. Vita tax service 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 tax service The allowance of the following credits is not affected by this time requirement. Vita tax service Credit for withheld taxes. Vita tax service Credit for excise tax on certain uses of gasoline and special fuels. Vita tax service 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 tax service Protective return. Vita tax service   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 tax service S. Vita tax service trade or business during the year, you can file a protective return (Form 1040NR) by the deadline explained above. Vita tax service 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 tax service 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 tax service   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 tax service 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 tax service   You can follow the same procedure if you believe you have no U. Vita tax service S. Vita tax service tax liability because of a U. Vita tax service S. Vita tax service tax treaty. Vita tax service Be sure to also complete item L on page 5 of Form 1040NR. Vita tax service Waiver of filing deadline. Vita tax service   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 tax service S. Vita tax service income tax return (including a protective return) and you cooperate with the IRS in determining your U. Vita tax service S. Vita tax service income tax liability for the tax year for which you did not file a return. Vita tax service Where To File If you are not enclosing a payment, file Form 1040NR-EZ and Form 1040NR at the following address. Vita tax service  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 tax service O. Vita tax service Box 1303 Charlotte, NC 28201-1303 Aliens from the U. Vita tax service S. Vita tax service Virgin Islands. Vita tax service    If you are a bona fide resident of the U. Vita tax service S. Vita tax service Virgin Islands during your entire tax year and work temporarily in the United States, you must pay your income taxes to the U. Vita tax service S. Vita tax service Virgin Islands and file your income tax returns at the following address. Vita tax service Virgin Islands Bureau of Internal Revenue 6115 Estate Smith Bay Suite 225 St. Vita tax service Thomas, VI 00802   Report all income from U. Vita tax service S. Vita tax service sources, as well as income from other sources, on your return. Vita tax service For information on filing U. Vita tax service S. Vita tax service Virgin Islands returns, contact the U. Vita tax service S. Vita tax service Virgin Islands Bureau of Internal Revenue. Vita tax service   Chapter 8 discusses withholding from U. Vita tax service S. Vita tax service wages of U. Vita tax service S. Vita tax service Virgin Islanders. Vita tax service Aliens from Guam or the Commonwealth of the Northern Mariana Islands. Vita tax service   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 tax service Report all income, including income from U. Vita tax service S. Vita tax service sources, on your return. Vita tax service It is not necessary to file a separate U. Vita tax service S. Vita tax service income tax return. Vita tax service    Bona fide residents of Guam should file their Guam returns at the following address. Vita tax service   Department of Revenue and Taxation Government of Guam P. Vita tax service O. Vita tax service Box 23607 GMF, GU 96921    Bona fide residents of the CNMI should file their CNMI income tax returns at the following address. Vita tax service   Department of Finance Division of Revenue and Taxation Commonwealth of the Northern Mariana Islands P. Vita tax service O. Vita tax service Box 5234 CHRB Saipan, MP 96950   If you are not a bona fide resident of Guam or the CNMI, see Pub. Vita tax service 570, Tax Guide for Individuals With Income From U. Vita tax service S. Vita tax service Possessions, for information on where to file your return. Vita tax service 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 tax service S. Vita tax service Individual Income Tax Return. Vita tax service 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 tax service If you amend Form 1040NR or Form 1040NR-EZ or file the correct return, attach the corrected return (Form 1040, Form 1040NR, etc. Vita tax service ) to Form 1040X. Vita tax service Print “Amended” across the top. Vita tax service 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 tax service A return filed before the final due date is considered to have been filed on the due date. Vita tax service 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 tax service 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 tax service 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 tax service 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 tax service 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 tax service 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 tax service Filing requirements. Vita tax service   FinCEN Form 105 filing requirements follow. Vita tax service Recipients. Vita tax service   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 tax service Commissioner of Customs  Attention: Currency Transportation Reports Washington, DC 20229 Shippers or mailers. Vita tax service   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 tax service Travelers. Vita tax service   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 tax service Penalties. Vita tax service   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 tax service Also, the entire amount of the currency or monetary instrument may be subject to seizure and forfeiture. Vita tax service More information. Vita tax service   More information regarding the filing of FinCEN Form 105 can be found in the instructions on the back of the form. Vita tax service 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 tax service A resident alien of the United States for any part of the tax year. Vita tax service 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 tax service S. Vita tax service income tax treaty. Vita tax service See Effect of Tax Treaties in chapter 1. Vita tax service A nonresident alien who makes an election to be treated as a resident alien for purposes of filing a joint income tax return. Vita tax service See chapter 1 for information about this election. Vita tax service A nonresident alien who is a bona fide resident of American Samoa or Puerto Rico. Vita tax service See Publication 570, Tax Guide for Individuals With Income From U. Vita tax service S. Vita tax service Possessions, for a definition of bona fide resident. Vita tax service You must file Form 8938 if the total value of those assets exceeds an applicable threshold (the “reporting threshold”). Vita tax service 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 tax service 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 tax service S. Vita tax service person. Vita tax service 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 tax service More information about the filing of Form 8938 can be found in the separate instructions for Form 8938. Vita tax service Penalties The law provides penalties for failure to file returns or pay taxes as required. Vita tax service 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 tax service 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 tax service If you provide fraudulent information on your return, you may have to pay a civil fraud penalty. Vita tax service Filing late. Vita tax service   If you do not file your return by the due date (including extensions), you may have to pay a failure-to-file penalty. Vita tax service The penalty is based on the tax not paid by the due date (without regard to extensions). Vita tax service The penalty is usually 5% for each month or part of a month that a return is late, but not more than 25%. Vita tax service Fraud. Vita tax service   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 tax service Return over 60 days late. Vita tax service   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 tax service Exception. Vita tax service   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 tax service Paying tax late. Vita tax service   You will have to pay a failure-to-pay penalty of ½ of 1% (. Vita tax service 50%) of your unpaid taxes for each month, or part of a month, after the due date that the tax is not paid. Vita tax service 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 tax service   The monthly rate of the failure-to-pay penalty is half the usual rate (. Vita tax service 25% instead of . Vita tax service 50%) if an installment agreement is in effect for that month. Vita tax service You must have filed your return by the due date (including extensions) to qualify for this reduced penalty. Vita tax service   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 tax service 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 tax service   This penalty cannot be more than 25% of your unpaid tax. Vita tax service 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 tax service Combined penalties. Vita tax service   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 tax service 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 tax service Accuracy-related penalty. Vita tax service   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 tax service The penalty is equal to 20% of the underpayment. Vita tax service 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 tax service The penalty will not be figured on any part of an underpayment on which the fraud penalty (discussed later) is charged. Vita tax service Negligence or disregard. Vita tax service   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 tax service Negligence also includes failure to keep adequate books and records. Vita tax service You will not have to pay a negligence penalty if you have a reasonable basis for a position you took. Vita tax service   The term “disregard” includes any careless, reckless, or intentional disregard. Vita tax service Adequate disclosure. Vita tax service   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 tax service See Disclosure statement , later. Vita tax service   This exception will not apply to an item that is attributable to a tax shelter. Vita tax service In addition, it will not apply if you fail to keep adequate books and records, or substantiate items properly. Vita tax service Substantial understatement of income tax. Vita tax service   You understate your tax if the tax shown on your return is less than the correct tax. Vita tax service The understatement is substantial if it is more than the larger of 10% of the correct tax or $5,000. Vita tax service 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 tax service   If an item on your return is attributable to a tax shelter, there is no reduction for an adequate disclosure. Vita tax service 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 tax service Substantial authority. Vita tax service   Whether there is or was substantial authority for the tax treatment of an item depends on the facts and circumstances. Vita tax service 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 tax service Disclosure statement. Vita tax service   To adequately disclose the relevant facts about your tax treatment of an item, use Form 8275, Disclosure Statement. Vita tax service You must also have a reasonable basis for treating the item the way you did. Vita tax service   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 tax service   Use Form 8275-R, Regulation Disclosure Statement, to disclose items or positions contrary to regulations. Vita tax service Transaction lacking economic substance. Vita tax service   For more information on economic substance, see section 7701(o). Vita tax service Foreign financial asset. Vita tax service   For more information on undisclosed foreign financial assets, see section 6662(j) or the Instructions for Form 8938. Vita tax service Reasonable cause. Vita tax service   You will not have to pay a penalty if you show a good reason (reasonable cause) for the way you treated an item. Vita tax service You must also show that you acted in good faith. Vita tax service This does not apply to a transaction that lacks economic substance. Vita tax service Filing erroneous claim for refund or credit. Vita tax service   You may have to pay a penalty if you file an erroneous claim for refund or credit. Vita tax service 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 tax service However, any disallowed amount due to a transaction that lacks economic substance will not be treated as having a reasonable basis. Vita tax service 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 tax service Frivolous tax submission. Vita tax service   You may have to pay a penalty of $5,000 if you file a frivolous tax return or other frivolous submissions. Vita tax service 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 tax service 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 tax service irs. Vita tax service gov/irb/2010-17_irb/ar13. Vita tax service html. Vita tax service   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 tax service This includes altering or striking out the preprinted language above the space provided for your signature. Vita tax service   This penalty is added to any other penalty provided by law. Vita tax service Fraud. Vita tax service   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 tax service Failure to supply taxpayer identification number. Vita tax service   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 tax service 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 tax service   For example, if you have a bank account that earns interest, you must give your SSN or ITIN to the bank. Vita tax service The number must be shown on the Form 1099-INT or other statement the bank sends you. Vita tax service If you do not give the bank your SSN or ITIN, you will be subject to the $50 penalty. Vita tax service (You also may be subject to “backup” withholding of income tax. Vita tax service )   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 tax service 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 tax service Prev  Up  Next   Home   More Online Publications
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The Vita Tax Service

Vita tax service 1. Vita tax service   Filing Information Table of Contents Topics - This chapter discusses: Useful Items - You may want to see: Filing RequirementsWhen To File and Pay Foreign Currency Does My Return Have To Be On Paper? Where To File Nonresident Alien Spouse Treated as a ResidentSocial Security Number (SSN) How To Make the Choice Suspending the Choice Ending the Choice Estimated Tax Other Forms You May Have To File Topics - This chapter discusses: Whether you have to file a return, When to file your return and pay any tax due, How to treat foreign currency, How to file electronically, Where to file your return, When you can treat your nonresident alien spouse as a resident, and When you may have to make estimated tax payments. Vita tax service Useful Items - You may want to see: Publication 3 Armed Forces' Tax Guide 501 Exemptions, Standard Deduction, and Filing Information 505 Tax Withholding and Estimated Tax 519 U. Vita tax service S. Vita tax service Tax Guide for Aliens 970 Tax Benefits for Education Form (and Instructions) 1040-ES Estimated Tax for Individuals 1040X Amended U. Vita tax service S. Vita tax service Individual Income Tax Return 2350 Application for Extension of Time To File U. Vita tax service S. Vita tax service Income Tax Return 2555 Foreign Earned Income 2555-EZ Foreign Earned Income Exclusion 4868 Application for Automatic Extension of Time To File U. Vita tax service S. Vita tax service Individual Income Tax Return 8822 Change of Address See chapter 7 for information about getting these publications and forms. Vita tax service Filing Requirements If you are a U. Vita tax service S. Vita tax service citizen or resident alien, the rules for filing income, estate, and gift tax returns and for paying estimated tax are generally the same whether you are in the United States or abroad. Vita tax service Your income, filing status, and age generally determine whether you must file an income tax return. Vita tax service Generally, you must file a return for 2013 if your gross income from worldwide sources is at least the amount shown for your filing status in the following table. Vita tax service Filing Status*   Amount Single $10,000 65 or older $11,500 Head of household $12,850 65 or older $14,350 Qualifying widow(er) $16,100 65 or older $17,300 Married filing jointly $20,000 Not living with spouse at end of year $3,900 One spouse 65 or older $21,200 Both spouses 65 or older $22,400 Married filing separately $3,900 *If you are the dependent of another taxpayer, see the instructions for Form 1040 for more information on whether you must file a return. Vita tax service Gross income. Vita tax service   This includes all income you receive in the form of money, goods, property, and services that is not exempt from tax. Vita tax service   For purposes of determining whether you must file a return, gross income includes any income that you can exclude as foreign earned income or as a foreign housing amount. Vita tax service If you are self-employed, your gross income includes the amount on Part I, line 7 of Schedule C (Form 1040), Profit or Loss From Business, or line 1 of Schedule C-EZ (Form 1040), Net Profit From Business. Vita tax service Self-employed individuals. Vita tax service   If your net earnings from self-employment are $400 or more, you must file a return even if your gross income is below the amount listed for your filing status in the table shown earlier. Vita tax service Net earnings from self-employment are defined in Publication 334, Tax Guide for Small Business. Vita tax service 65 or older. Vita tax service   You are considered to be age 65 on the day before your 65th birthday. Vita tax service For example, if your 65th birthday is on January 1, 2014, you are considered 65 for 2013. Vita tax service Residents of U. Vita tax service S. Vita tax service possessions. Vita tax service   If you are (or were) a bona fide resident of a U. Vita tax service S. Vita tax service possession, you may be required to file Form 8898, Statement for Individuals Who Begin or End Bona Fide Residence in a U. Vita tax service S. Vita tax service Possession. Vita tax service See the instructions for the form for more information. Vita tax service When To File and Pay If you file on a calendar year basis, the due date for filing your return is April 15 of the following year. Vita tax service If you file on a fiscal year basis (a year ending on the last day of any month except December), the due date is 3 months and 15 days after the close of your fiscal year. Vita tax service In general, the tax shown on your return should be paid by the due date of the return, without regard to any extension of time for filing the return. Vita tax service When the due date for doing any act for tax purposes—filing a return, paying taxes, etc. Vita tax service — falls on a Saturday, Sunday, or legal holiday, the due date is delayed until the next business day. Vita tax service A tax return delivered by the U. Vita tax service S. Vita tax service mail or a designated delivery service that is postmarked or dated by the delivery service on or before the due date is considered to have been filed on or before that date. Vita tax service See your Form 1040 or Form 1040A instructions for a list of designated delivery services. Vita tax service Foreign wire transfers. Vita tax service   If you have a U. Vita tax service S. Vita tax service bank account, you can use: EFTPS (Electronic Federal Tax Payment System), or Federal Tax Application (same-day wire transfer). Vita tax service If you do not have a U. Vita tax service S. Vita tax service bank account, ask if your financial institution has a U. Vita tax service S. Vita tax service affiliate that can help you make same-day wire transfers. Vita tax service   For more information, visit www. Vita tax service eftps. Vita tax service gov. Vita tax service Extensions You can get an extension of time to file your return. Vita tax service In some circumstances, you also can get an extension of time to file and pay any tax due. Vita tax service However, if you pay the tax due after the regular due date, interest will be charged from the regular due date until the date the tax is paid. Vita tax service This publication discusses four extensions: an automatic 2-month extension, an automatic 6-month extension, an additional extension for taxpayers out of the country, and an extension of time to meet tests. Vita tax service If you served in a combat zone or qualified hazardous duty area, see Publication 3 for a discussion of extensions of deadlines. Vita tax service Automatic 2-month extension. Vita tax service   You are allowed an automatic 2-month extension to file your return and pay federal income tax if you are a U. Vita tax service S. Vita tax service citizen or resident alien, and on the regular due date of your return: You are living outside the United States and Puerto Rico and your main place of business or post of duty is outside the United States and Puerto Rico, or You are in military or naval service on duty outside the United States and Puerto Rico. Vita tax service   If you use a calendar year, the regular due date of your return is April 15. Vita tax service Even if you are allowed an extension, you will have to pay interest on any tax not paid by the regular due date of your return. Vita tax service Married taxpayers. Vita tax service   If you file a joint return, either you or your spouse can qualify for the automatic extension. Vita tax service If you and your spouse file separate returns, this automatic extension applies only to the spouse who qualifies for it. Vita tax service How to get the extension. Vita tax service   To use this automatic 2-month extension, you must attach a statement to your return explaining which of the two situations listed earlier qualified you for the extension. Vita tax service Automatic 6-month extension. Vita tax service   If you are not able to file your return by the due date, you generally can get an automatic 6-month extension of time to file (but not of time to pay). Vita tax service To get this automatic extension, you must file a paper Form 4868 or use IRS e-file (electronic filing). Vita tax service For more information about filing electronically, see E-file options , later. Vita tax service   The form must show your properly estimated tax liability based on the information available to you. Vita tax service    You may not be eligible. Vita tax service You cannot use the automatic 6-month extension of time to file if: You want the IRS to figure your tax, or You are under a court order to file by the regular due date. Vita tax service E-file options. Vita tax service    You can use e-file to get an extension of time to file. Vita tax service You can either file Form 4868 electronically or you can pay part or all of your estimate of tax due using a credit or debit card. Vita tax service   First, complete Form 4868 to use as a worksheet. Vita tax service If you think you may owe tax when you file your return, use Part II of the form to estimate your balance due. Vita tax service    Then, do one of the following. Vita tax service E-file Form 4868. Vita tax service You can use a tax software package with your personal computer or a tax professional to file Form 4868 electronically. Vita tax service You will need to provide certain information from your tax return for 2012. Vita tax service If you wish to make a payment by electronic funds withdrawal, see the instructions for Form 4868. Vita tax service If you e-file Form 4868, do not also send a paper Form 4868. Vita tax service E-file and pay by credit or debit card. Vita tax service You can get an extension by paying part or all of your estimate of tax due by using a credit or debit card. Vita tax service You can do this by phone or over the Internet. Vita tax service If you do this, you do not file Form 4868. Vita tax service For more information, see the instructions for your tax return. Vita tax service When to file. Vita tax service   Generally, you must request the 6-month extension by the regular due date of your return. Vita tax service Previous 2-month extension. Vita tax service   If you cannot file your return within the automatic 2-month extension period, you generally can get an additional 4 months to file your return, for a total of 6 months. Vita tax service The 2-month period and the 6-month period start at the same time. Vita tax service You have to request the additional 4 months by the new due date allowed by the 2-month extension. Vita tax service   The additional 4 months of time to file (unlike the original 2-month extension) is not an extension of time to pay. Vita tax service You must make an accurate estimate of your tax based on the information available to you. Vita tax service If you find you cannot pay the full amount due with Form 4868, you can still get the extension. Vita tax service You will owe interest on the unpaid amount from the original due date of the return. Vita tax service   You also may be charged a penalty for paying the tax late unless you have reasonable cause for not paying your tax when due. Vita tax service Penalties for paying the tax late are assessed from the original due date of your return, unless you qualify for the automatic 2-month extension. Vita tax service In that situation, penalties for paying late are assessed from the extended due date of the payment (June 15 for calendar year taxpayers). Vita tax service Additional extension of time for taxpayers out of the country. Vita tax service   In addition to the 6-month extension, taxpayers who are out of the country can request a discretionary 2-month additional extension of time to file their returns (to December 15 for calendar year taxpayers). Vita tax service   To request this extension, you must send the Internal Revenue Service a letter explaining the reasons why you need the additional 2 months. Vita tax service 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 73301-0045   You will not receive any notification from the Internal Revenue Service unless your request is denied. Vita tax service   The discretionary 2-month additional extension is not available to taxpayers who have an approved extension of time to file on Form 2350, discussed next. Vita tax service Extension of time to meet tests. Vita tax service   You generally cannot get an extension of more than 6 months. Vita tax service However, if you are outside the United States and meet certain requirements, you may be able to get a longer extension. Vita tax service   You can get an extension of more than 6 months to file your tax return if you need the time to meet either the bona fide residence test or the physical presence test to qualify for either the foreign earned income exclusion or the foreign housing exclusion or deduction. Vita tax service The tests, the exclusions, and the deduction are explained in chapter 4. Vita tax service   You should request an extension if all three of the following apply. Vita tax service You are a U. Vita tax service S. Vita tax service citizen or resident alien. Vita tax service You expect to meet either the bona fide residence test or the physical presence test, but not until after your tax return is due. Vita tax service Your tax home is in a foreign country (or countries) throughout your period of bona fide residence or physical presence, whichever applies. Vita tax service   If you are granted an extension, it generally will be to 30 days beyond the date on which you can reasonably expect to qualify for an exclusion or deduction under either the bona fide residence test or the physical presence test. Vita tax service However, if you have moving expenses that are for services performed in 2 years, you may be granted an extension until after the end of the second year. Vita tax service How to get an extension. Vita tax service   To obtain an extension, file Form 2350 either by giving it to a local IRS representative or other IRS employee or by mailing it to the: Department of the Treasury Internal Revenue Service Center Austin, TX 73301-0045   You must file Form 2350 by the due date for filing your return. Vita tax service Generally, if both your tax home and your abode are outside the United States and Puerto Rico on the regular due date of your return and you file on a calendar year basis, the due date for filing your return is June 15. Vita tax service What if tests are not met. Vita tax service   If you obtain an extension and unforeseen events make it impossible for you to meet either the bona fide residence test or the physical presence test, you should file your income tax return as soon as possible because you must pay interest on any tax due after the regular due date of the return (even though an extension was granted). Vita tax service    You should make any request for an extension early, so that if it is denied you still can file your return on time. Vita tax service Otherwise, if you file late and additional tax is due, you may be subject to a penalty. Vita tax service Return filed before test is met. Vita tax service   If you file a return before you meet the bona fide residence test or the physical presence test, you must include all income from both U. Vita tax service S. Vita tax service and foreign sources and pay the tax on that income. Vita tax service If you later meet either of the tests, you can claim the foreign earned income exclusion, the foreign housing exclusion, or the foreign housing deduction on Form 1040X. Vita tax service Foreign Currency You must express the amounts you report on your U. Vita tax service S. Vita tax service tax return in U. Vita tax service S. Vita tax service dollars. Vita tax service If you receive all or part of your income or pay some or all of your expenses in foreign currency, you must translate the foreign currency into U. Vita tax service S. Vita tax service dollars. Vita tax service How you do this depends on your functional currency. Vita tax service Your functional currency generally is the U. Vita tax service S. Vita tax service dollar unless you are required to use the currency of a foreign country. Vita tax service You must make all federal income tax determinations in your functional currency. Vita tax service The U. Vita tax service S. Vita tax service dollar is the functional currency for all taxpayers except some qualified business units (QBUs). Vita tax service A QBU is a separate and clearly identified unit of a trade or business that maintains separate books and records. Vita tax service Even if you have a QBU, your functional currency is the dollar if any of the following apply. Vita tax service You conduct the business in U. Vita tax service S. Vita tax service dollars. Vita tax service The principal place of business is located in the United States. Vita tax service You choose to or are required to use the U. Vita tax service S. Vita tax service dollar as your functional currency. Vita tax service The business books and records are not kept in the currency of the economic environment in which a significant part of the business activities is conducted. Vita tax service Make all income tax determinations in your functional currency. Vita tax service If your functional currency is the U. Vita tax service S. Vita tax service dollar, you must immediately translate into U. Vita tax service S. Vita tax service dollars all items of income, expense, etc. Vita tax service (including taxes), that you receive, pay, or accrue in a foreign currency and that will affect computation of your income tax. Vita tax service Use the exchange rate prevailing when you receive, pay, or accrue the item. Vita tax service If there is more than one exchange rate, use the one that most properly reflects your income. Vita tax service You can generally get exchange rates from banks and U. Vita tax service S. Vita tax service Embassies. Vita tax service If your functional currency is not the U. Vita tax service S. Vita tax service dollar, make all income tax determinations in your functional currency. Vita tax service At the end of the year, translate the results, such as income or loss, into U. Vita tax service S. Vita tax service dollars to report on your income tax return. Vita tax service Blocked Income You generally must report your foreign income in terms of U. Vita tax service S. Vita tax service dollars and, with one exception (see Fulbright Grant, later), you must pay taxes due on it in U. Vita tax service S. Vita tax service dollars. Vita tax service If, because of restrictions in a foreign country, your income is not readily convertible into U. Vita tax service S. Vita tax service dollars or into other money or property that is readily convertible into U. Vita tax service S. Vita tax service dollars, your income is “blocked” or “deferrable” income. Vita tax service You can report this income in one of two ways: Report the income and pay your federal income tax with U. Vita tax service S. Vita tax service dollars that you have in the United States or in some other country, or Postpone the reporting of the income until it becomes unblocked. Vita tax service If you choose to postpone the reporting of the income, you must file an information return with your tax return. Vita tax service For this information return, you should use another Form 1040 labeled “Report of Deferrable Foreign Income, pursuant to Rev. Vita tax service Rul. Vita tax service 74-351. Vita tax service ” You must declare on the information return that you will include the deferrable income in your taxable income for the year that it becomes unblocked. Vita tax service You also must state that you waive any right to claim that the deferrable income was includible in your income for any earlier year. Vita tax service You must report your income on your information return using the foreign currency in which you received that income. Vita tax service If you have blocked income from more than one foreign country, include a separate information return for each country. Vita tax service Income becomes unblocked and reportable for tax purposes when it becomes convertible, or when it is converted, into U. Vita tax service S. Vita tax service dollars or into other money or property that is convertible into U. Vita tax service S. Vita tax service currency. Vita tax service Also, if you use blocked income for your personal expenses or dispose of it by gift, bequest, or devise, you must treat it as unblocked and reportable. Vita tax service If you have received blocked income on which you have not paid tax, you should check to see whether that income is still blocked. Vita tax service If it is not, you should take immediate steps to pay tax on it, file a declaration or amended declaration of estimated tax, and include the income on your tax return for the year in which the income became unblocked. Vita tax service If you choose to postpone reporting blocked income and in a later tax year you wish to begin including it in gross income although it is still blocked, you must obtain the permission of the IRS to do so. Vita tax service To apply for permission, file Form 3115, Application for Change in Accounting Method. Vita tax service You also must request permission from the IRS on Form 3115 if you have not chosen to defer the reporting of blocked income in the past, but now wish to begin reporting blocked income under the deferred method. Vita tax service See the instructions for Form 3115 for information on changing your accounting method. Vita tax service Fulbright Grant All income must be reported in U. Vita tax service S. Vita tax service dollars. Vita tax service In most cases, the tax also must be paid in U. Vita tax service S. Vita tax service dollars. Vita tax service If, however, at least 70% of your Fulbright grant has been paid in nonconvertible foreign currency (blocked income), you can use the currency of the host country to pay the part of the U. Vita tax service S. Vita tax service tax that is based on the blocked income. Vita tax service Paying U. Vita tax service S. Vita tax service tax in foreign currency. Vita tax service   To qualify for this method of payment, you must prepare a statement that shows the following information. Vita tax service You were a Fulbright grantee and were paid in nonconvertible foreign currency. Vita tax service The total grant you received during the year and the amount you received in nonconvertible foreign currency. Vita tax service At least 70% of the grant was paid in nonconvertible foreign currency. Vita tax service The statement must be certified by the U. Vita tax service S. Vita tax service educational foundation or commission paying the grant or other person having control of grant payments to you. Vita tax service   You should prepare at least two copies of this statement. Vita tax service Attach one copy to your Form 1040 and keep the other copy for identification purposes when you make a tax deposit of nonconvertible foreign currency. Vita tax service Figuring actual tax. Vita tax service   When you prepare your income tax return, you may owe tax or the entire liability may have been satisfied with your estimated tax payments. Vita tax service If you owe tax, figure the part due to (and payable in) the nonconvertible foreign currency by using the following formula. Vita tax service   Adjusted gross income that is blocked income × Total U. Vita tax service S. Vita tax service tax = Tax on blocked income     Total adjusted  gross income     You must attach all of the following to the return. Vita tax service A copy of the certified statement discussed earlier. Vita tax service A detailed statement showing the allocation of tax attributable to amounts received in foreign currency and the rates of exchange used in determining your tax liability in U. Vita tax service S. Vita tax service dollars. Vita tax service The original deposit receipt for any balance of tax due that you paid in nonconvertible foreign currency. Vita tax service Figuring estimated tax on nonconvertible foreign currency. Vita tax service   If you are liable for estimated tax (discussed later), figure the amount you can pay to the IRS in nonconvertible foreign currency using the following formula. Vita tax service   Adjusted gross income that is blocked income × Total estimated U. Vita tax service S. Vita tax service tax = Estimated tax on blocked income     Total adjusted  gross income     If you must pay your host country income tax on your grant, subtract any estimated foreign tax credit that applies to your grant from the estimated tax on the blocked income. Vita tax service Deposit of foreign currency with disbursing officer. Vita tax service   Once you have determined the amount of the actual tax or estimated tax that you can pay in nonconvertible foreign currency, deposit that amount with the disbursing officer of the Department of State in the foreign country in which the foundation or commission paying the grant is located. Vita tax service Estimated tax installments. Vita tax service   You can either deposit the full estimated tax amount before the first installment due date or make four equal payments before the installment due dates. Vita tax service See Estimated Tax , later. Vita tax service Deposit receipt. Vita tax service   Upon accepting the foreign currency, the disbursing officer will give you a receipt in duplicate. Vita tax service The original of this receipt (showing the amount of foreign currency deposited and its equivalent in U. Vita tax service S. Vita tax service dollars) should be attached to your Form 1040 or payment voucher from Form 1040-ES. Vita tax service Keep the copy for your records. Vita tax service Does My Return Have To Be On Paper? IRS e-file (electronic filing) is the fastest, easiest, and most convenient way to file your income tax return electronically. Vita tax service IRS e-file offers accurate, safe, and fast alternatives to filing on paper. Vita tax service IRS computers quickly and automatically check for errors or other missing information. Vita tax service Even returns with a foreign address can be e-filed! How to e-file. Vita tax service   There are three ways you can e-file. Vita tax service Use your personal computer. Vita tax service Use a volunteer. Vita tax service Many programs offering free tax help can e-file your return. Vita tax service Use a tax professional. Vita tax service Most tax professionals can e-file your return. Vita tax service These methods are explained in detail in the instructions for your tax return. Vita tax service Where To File If any of the following situations apply to you, do not file your return with the service center listed for your home state. Vita tax service You claim the foreign earned income exclusion. Vita tax service You claim the foreign housing exclusion or deduction. Vita tax service You live in a foreign country. Vita tax service Instead, use one of the following special addresses. Vita tax service If you are not enclosing a check or money order, file your return with the: Department of the Treasury Internal Revenue Service Center Austin, TX 73301-0215 USA If you are enclosing a check or money order, file your return with: Internal Revenue Service Center P. Vita tax service O. Vita tax service Box 1303 Charlotte, NC 28201-1303 USA If you do not know where your legal residence is and you do not have a principal place of business in the United States, you can file with the appropriate address listed above. Vita tax service However, you should not file with the addresses listed above if you are a bona fide resident of the U. Vita tax service S. Vita tax service Virgin Islands, Guam, or the Commonwealth of the Northern Mariana Islands during your entire tax year. Vita tax service Resident of U. Vita tax service S. Vita tax service Virgin Islands (USVI). Vita tax service   If you are a bona fide resident of the USVI during your entire tax year, you generally are not required to file a U. Vita tax service S. Vita tax service return. Vita tax service However, you must file a return with the USVI. Vita tax service    Send your return to the:     Virgin Islands Bureau of Internal Revenue 6115 Estate Smith Bay Suite 225 St. Vita tax service Thomas, Virgin Islands 00802 Non-USVI resident with USVI income. Vita tax service   If you are a U. Vita tax service S. Vita tax service citizen or resident alien and you have income from sources in the USVI or income effectively connected with the conduct of a trade or business in the USVI, and you are not a bona fide resident of the USVI during your entire tax year, you must file identical tax returns with the United States and the USVI. Vita tax service File the original return with the United States and file a signed copy of the U. Vita tax service S. Vita tax service return (including all attachments, forms, and schedules) with the Virgin Islands Bureau of Internal Revenue. Vita tax service   You must complete Form 8689, Allocation of Individual Income Tax to the U. Vita tax service S. Vita tax service Virgin Islands, and attach a copy to both your U. Vita tax service S. Vita tax service return and your USVI return. Vita tax service You should file your U. Vita tax service S. Vita tax service return with the address listed under Where To File. Vita tax service   See Publication 570, Tax Guide for Individuals With Income From U. Vita tax service S. Vita tax service Possessions, for information about filing Virgin Islands returns. Vita tax service Resident of Guam. Vita tax service   If you are a bona fide resident of Guam during your entire tax year, you should file a return with Guam. Vita tax service    Send your return to the:     Department of Revenue and Taxation Government of Guam P. Vita tax service O. Vita tax service Box 23607 GMF, GU 96921   However, if you have income from sources within Guam and you are a U. Vita tax service S. Vita tax service citizen or resident alien, but not a bona fide resident of Guam during the entire tax year, you should file a return with the United States. Vita tax service Send your return to the address listed under Where To File. Vita tax service   See Publication 570 for information about filing Guam returns. Vita tax service Resident of the Commonwealth of the Northern Mariana Islands. Vita tax service   If you are a bona fide resident of the Commonwealth of the Northern Mariana Islands (CNMI) during your entire tax year, you should file a return with the Northern Mariana Islands. Vita tax service    Send your return to the:      Division of Revenue and Taxation Commonwealth of the Northern Mariana Islands P. Vita tax service O. Vita tax service Box 5234, CHRB Saipan, MP 96950   However, if you have income from sources within the CNMI and you are a U. Vita tax service S. Vita tax service citizen or resident alien, but not a bona fide resident of the CNMI during the entire tax year, you should file a return with the United States. Vita tax service Send your return to the address listed under Where To File. Vita tax service   See Publication 570 for information about filing Northern Mariana Islands returns. Vita tax service Nonresident Alien Spouse Treated as a Resident If, at the end of your tax year, you are married and one spouse is a U. Vita tax service S. Vita tax service citizen or a resident alien and the other is a nonresident alien, you can choose to treat the nonresident as a U. Vita tax service S. Vita tax service resident. Vita tax service This includes situations in which one of you is a nonresident alien at the beginning of the tax year and a resident alien at the end of the year and the other is a nonresident alien at the end of the year. Vita tax service If you make this choice, the following two rules apply. Vita tax service You and your spouse are treated, for income tax purposes, as residents for all tax years that the choice is in effect. Vita tax service You must file a joint income tax return for the year you make the choice. Vita tax service This means that neither of you can claim under any tax treaty not to be a U. Vita tax service S. Vita tax service resident for a tax year for which the choice is in effect. Vita tax service You can file joint or separate returns in years after the year in which you make the choice. Vita tax service Example 1. Vita tax service Pat Smith, a U. Vita tax service S. Vita tax service citizen, is married to Norman, a nonresident alien. Vita tax service Pat and Norman make the choice to treat Norman as a resident alien by attaching a statement to their joint return. Vita tax service Pat and Norman must report their worldwide income for the year they make the choice and for all later years unless the choice is ended or suspended. Vita tax service Although Pat and Norman must file a joint return for the year they make the choice, they can file either joint or separate returns for later years. Vita tax service Example 2. Vita tax service When Bob and Sharon Williams got married, both were nonresident aliens. Vita tax service In June of last year, Bob became a resident alien and remained a resident for the rest of the year. Vita tax service Bob and Sharon both choose to be treated as resident aliens by attaching a statement to their joint return for last year. Vita tax service Bob and Sharon must report their worldwide income for last year and all later years unless the choice is ended or suspended. Vita tax service Bob and Sharon must file a joint return for last year, but they can file either joint or separate returns for later years. Vita tax service If you do not choose to treat your nonresident alien spouse as a U. Vita tax service S. Vita tax service resident, you may be able to use head of household filing status. Vita tax service To use this status, you must pay more than half the cost of maintaining a household for certain dependents or relatives other than your nonresident alien spouse. Vita tax service For more information, see Publication 501. Vita tax service Social Security Number (SSN) If you choose to treat your nonresident alien spouse as a U. Vita tax service S. Vita tax service resident, your spouse must have either an SSN or an individual taxpayer identification number (ITIN). Vita tax service To get an SSN for a nonresident alien spouse, apply at an office of the U. Vita tax service S. Vita tax service Social Security Administration (SSA) or U. Vita tax service S. Vita tax service consulate. Vita tax service You must complete Form SS-5, Application for a Social Security Card, available at www. Vita tax service socialsecurity. Vita tax service gov or by calling 1-800-772-1213. Vita tax service You must also provide original or certified copies of documents to verify that spouse's age, identity, and citizenship. Vita tax service If the nonresident alien spouse is not eligible to get an SSN, he or she can file Form W-7, Application for IRS Individual Taxpayer Identification Number, with the IRS to apply for an ITIN. Vita tax service How To Make the Choice Attach a statement, signed by both spouses, to your joint return for the first tax year for which the choice applies. Vita tax service It should contain the following: A declaration that one spouse was a nonresident alien and the other spouse a U. Vita tax service S. Vita tax service citizen or resident alien on the last day of your tax year and that you choose to be treated as U. Vita tax service S. Vita tax service residents for the entire tax year, and The name, address, and social security number (or individual taxpayer identification number) of each spouse. Vita tax service (If one spouse died, include the name and address of the person making the choice for the deceased spouse. Vita tax service ) You generally make this choice when you file your joint return. Vita tax service However, you also can make the choice by filing a joint amended return on Form 1040X. Vita tax service Attach Form 1040, 1040A, or 1040EZ and print “Amended” across the top of the amended return. Vita tax service If you make the choice with an amended return, you and your spouse also must amend any returns that you may have filed after the year for which you made the choice. Vita tax service You generally must file the amended joint return within 3 years from the date you filed your original U. Vita tax service S. Vita tax service income tax return or 2 years from the date you paid your income tax for that year, whichever is later. Vita tax service Table 1–1. Vita tax service Ending the Choice To Treat Nonresident Alien Spouse as a Resident Revocation   Either spouse can revoke the choice for any tax year. Vita tax service   • The revocation must be made by the due date for filing the tax return for that tax year. Vita tax service   • The spouse who revokes the choice must attach a signed statement declaring that the choice is being revoked. Vita tax service The statement revoking the choice must include the following:     • The name, address, and social security number (or taxpayer identification number) of each spouse. Vita tax service     • The name and address of any person who is revoking the choice for a deceased spouse. Vita tax service     • A list of any states, foreign countries, and possessions that have community property laws in which either spouse is domiciled or where real property is located from which either spouse receives income. Vita tax service   • If the spouse revoking the choice does not have to file a return and does not file a claim for refund, send the statement to the Internal Revenue Service Center where the last joint return was filed. Vita tax service Death   The death of either spouse ends the choice, beginning with the first tax year following the year in which the spouse died. Vita tax service   • If the surviving spouse is a U. Vita tax service S. Vita tax service citizen or resident alien and is entitled to the joint tax rates as a surviving spouse, the choice will not end until the close of the last year for which these joint rates may be used. Vita tax service   • If both spouses die in the same tax year, the choice ends on the first day after the close of the tax year in which the spouses died. Vita tax service Divorce or  Legal separation   A divorce or legal separation ends the choice as of the beginning of the tax year in which the legal separation occurs. Vita tax service Inadequate records   The Internal Revenue Service can end the choice for any tax year that either spouse has failed to keep adequate books, records, and other information necessary to determine the correct income tax liability, or to provide adequate access to those records. Vita tax service Suspending the Choice The choice to be treated as a resident alien does not apply to any later tax year if neither of you is a U. Vita tax service S. Vita tax service citizen or resident alien at any time during the later tax year. Vita tax service Example. Vita tax service Dick Brown was a resident alien on December 31, 2010, and married to Judy, a nonresident alien. Vita tax service They chose to treat Judy as a resident alien and filed a joint 2010 income tax return. Vita tax service On January 10, 2012, Dick became a nonresident alien. Vita tax service Judy had remained a nonresident alien. Vita tax service Because Dick was a resident alien during part of 2012, Dick and Judy can file joint or separate returns for that year. Vita tax service Neither Dick nor Judy was a resident alien at any time during 2013 and their choice is suspended for that year. Vita tax service For 2013, both are treated as nonresident aliens. Vita tax service If Dick becomes a resident alien again in 2014, their choice is no longer suspended and both are treated as resident aliens. Vita tax service Ending the Choice Once made, the choice to be treated as a resident applies to all later years unless suspended (as explained earlier) or ended in one of the ways shown in Table 1-1. Vita tax service If the choice is ended for any of the reasons listed in Table 1-1, neither spouse can make a choice in any later tax year. Vita tax service Estimated Tax The requirements for determining who must pay estimated tax are the same for a U. Vita tax service S. Vita tax service citizen or resident abroad as for a taxpayer in the United States. Vita tax service For current instructions on making estimated tax payments, see Form 1040-ES. Vita tax service If you had a tax liability for 2013, you may have to pay estimated tax for 2014. Vita tax service Generally, you must make estimated tax payments for 2014 if you expect to owe at least $1,000 in tax for 2014 after subtracting your withholding and credits and you expect your withholding and credits to be less than the smaller of: 90% of the tax to be shown on your 2014 tax return, or 100% of the tax shown on your 2013 tax return. Vita tax service (The return must cover all 12 months. Vita tax service ) If less than two-thirds of your gross income for 2013 and 2014 is from farming or fishing and your adjusted gross income for 2013 is more than $150,000 ($75,000 if you are married and file separately), substitute 110% for 100% in (2). Vita tax service See Publication 505 for more information. Vita tax service The first installment of estimated tax is due on April 15, 2014. Vita tax service Foreign earned income exclusion. Vita tax service   When figuring your estimated gross income, subtract amounts you expect to exclude under the foreign earned income exclusion and the foreign housing exclusion. Vita tax service In addition, you can reduce your income by your estimated foreign housing deduction. Vita tax service However, you must estimate tax on your nonexcluded income using the tax rates that will apply had you not excluded the income. Vita tax service If the actual amount of the exclusion or deduction is less than you estimate, you may have to pay a penalty for underpayment of estimated tax. Vita tax service   For more information about figuring your estimated tax, see Publication 505. Vita tax service Other Forms You May Have To File FinCEN Form 114 (replaces Form TD F 90-22. Vita tax service 1). Vita tax service   Beginning October 1, 2013, Form 114, Report of Foreign Bank and Financial Accounts (FBAR), must be filed instead of Form TD F 90-22. Vita tax service 1. Vita tax service Form 114 is filed electronically with the Financial Crimes Enforcement Network (FinCEN). Vita tax service See the filing instructions at www. Vita tax service bsaefiling. Vita tax service fincen. Vita tax service treas. Vita tax service gov/main. Vita tax service html. Vita tax service   You must file Form 114 if you had any financial interest in, or signature or other authority over a bank, securities, or other financial account in a foreign country. Vita tax service You do not need to file the report if the assets are with a U. Vita tax service S. Vita tax service military banking facility operated by a financial institution or if the combined assets in the account(s) are $10,000 or less during the entire year. Vita tax service   More information about the filing of Form 114 can be found in the instructions for the form. Vita tax service FinCEN Form 105. Vita tax service   You must file Form 105, Report of International Transportation of Currency or Monetary Instruments, if you physically transport, mail, ship, or cause to be physically transported, mailed, or shipped into or out of the United States, currency or other monetary instruments totaling more than $10,000 at one time. Vita tax service Certain recipients of currency or monetary instruments also must file Form 105. Vita tax service   More information about the filing of Form 105 can be found in the instructions on the back of the form. Vita tax service Form 8938. Vita tax service   You must file Form 8938 to report the ownership of specified foreign financial assets if the total value of those assets exceeds an applicable threshold amount (the “reporting threshold ”). Vita tax service 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 tax service 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 tax service S. Vita tax service person. Vita tax service   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 tax service   More information about the filing of Form 8938 can be found in the separate instructions for Form 8938. Vita tax service Prev  Up  Next   Home   More Online Publications